HBA-MPM H.B. 3644 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3644 By: Krusee Public Education 4/21/1999 Introduced BACKGROUND AND PURPOSE As of September 1998, 56 schools were currently open and operating in Texas. Recent approval of additional charters will bring that number to 146 within the next year. Three different types of charter schools are found in Texas: the Open Enrollment charter, the Home Rule School District charter, and the Campus charter. Currently, the majority of Texas charter schools are open-enrollment which are operated by an institute of higher education, a non-profit organization or governmental entity within all state and federal laws applicable to public schools. The three types of charter schools in Texas all have slightly different legislation. Open Enrollment charters are granted by the state, while Campus and Home Rule District charters are granted by the districts. For each type of charter, the district or school uses a student performance assessment instrument as outlined in the charter or by standards under state law. H.B. 3644 provides for the creation of "university charter schools." This bill authorizes the board of regents of the University of Texas System (system) to grant a charter on the application of an eligible entity to operate in a facility of a commercial or nonprofit entity or school district. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Chapter 12, Education Code, by adding Subchapter E, as follows: SUBCHAPTER E. UNIVERSITY CHARTER SCHOOLS Sec. 12.151. DEFINITION. Defines "university system" as the University of Texas System (system) for purposes of this subchapter. Sec. 12.152. AUTHORIZATION. Authorizes the board of regents (board) of the system, in accordance with this chapter, to grant a charter on the application of an eligible entity for a university charter school (charter school) to operate in a facility of a commercial or nonprofit entity or school district, including a home-rule school district. Assigns "eligible entity" the meaning given it in Section 12.101(a) (Authorization), Education Code. Sec. 12.153. APPLICABILITY OF CERTAIN PROVISIONS. Make the following sections applicable to a charter school as though the charter school were an open-enrollment charter school: Sections 12.101(c) and (d), Sections 12.102-12.109 (Authority Under Charter, Applicability of Laws and Rules to Open-Enrollment Charter School, Applicability of Title, Status, State Funding, Local Funding, Tuition Restricted, and Transportation, respectively), and Section 12.117 (Application for Admission), Education Code. Sec. 12.154. APPLICATION. (a) Requires the board to adopt an application form and procedure that must be used to apply for a charter for a charter school and criteria to use in selecting a program for which to grant a charter. (b) Provides that the application form must provide for including the information required under Section 12.111 (Content), Education Code, to be contained in a charter. (c) Authorizes the board to require a petition supporting a charter for a school signed by a specific number of parents and guardians of school-age children residing in the area in which a school is proposed or to hold a public hearing to determine parental support for the school as part of the application procedure. (d) Authorizes the board to approve or deny an application based on criteria it adopts. Provides that the criteria adopted by the board must include criteria relating to improving student performance and encouraging innovation programs and a statement from any school district whose enrollment is likely to be affected by the charter school, including information relating to financial difficulty that a loss in enrollment may have on the district. Sec. 12.155. FORM. Provides that a charter for a charter school must be in the form of a written contract signed by the chair of the board and the chief operating officer of the school. Sec. 12.156. CHARTER GRANTED. Provides that each charter the board grants for a charter school must satisfy this subchapter and include the information required under Section 12.111, Education Code, consistent with the information provided in the application and any modification the board requires. Sec. 12.157. REVISION. Authorizes a revision of a charter of a charter school to be made only with the board's approval. Sec. 12.158. BASIS FOR MODIFICATION, PLACEMENT ON PROBATION, REVOCATION, OR DENIAL OF RENEWAL. (a) Authorizes the board to modify, place on probation, revoke, or deny renewal of the charter of a charter school if it determines that the person operating the school committed certain violations or failed to satisfy certain accounting standards, fiscal management standards, or failed to comply with this subchapter or another applicable by law or rule. (b) Requires the action taken by the board under Subsection (a) to be based on the best interest of the school's students, the severity of the violation, and any previous violation the school has committed. Sec. 12.159. PROCEDURE FOR MODIFICATION, PLACEMENT ON PROBATION, REVOCATION, OR DENIAL OR RENEWAL. (a) Requires the board to adopt a procedure to modify, place on probation, revoke, or deny renewal of the charter of a charter school. (b) Provides that the procedure adopted under Subsection (a) must provide an opportunity for a hearing to the person operating the charter school and to parents and guardians of the school's students. Provides that a hearing under this section must be held at the facility at which the program is operated. Sec. 12.160. EVALUATION OF UNIVERSITY CHARTER SCHOOLS. (a) Requires the board to designate an impartial organization with experience in evaluating school choice programs to conduct an annual evaluation of the charter schools. (b) Provides that an evaluation under this section must include consideration of the following before and after implementation of the charter: students' assessment instrument scores, student attendance, students' grades, incidents involving student discipline, socioeconomic data on students' families, and parents' and students' satisfaction with the charter schools. (c) Provides that the evaluation of the charter schools must also include an evaluation of certain costs incurred by the schools and the effect of the schools on school districts, teachers, students, and parents in those districts. SECTION 2.Emergency clause. Effective date: upon passage.