76R14772 E                           
         By Olivo                                              H.B. No. 2358
         Substitute the following for H.B. No. 2358:
         By Sadler                                         C.S.H.B. No. 2358
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to open-enrollment charter schools.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Subchapter D, Chapter 12, Education Code, is
 1-5     amended by adding Section 12.1012 to read as follows:
 1-6           Sec. 12.1012.  MORATORIUM ON NEW CHARTERS.  (a)
 1-7     Notwithstanding Sections 12.101 and 12.1011, the State Board of
 1-8     Education may not issue a charter for an open-enrollment charter
 1-9     school after the effective date of H.B. No. 2358, Acts of the 76th
1-10     Legislature, Regular Session, 1999.
1-11           (b)  This section expires September 1, 2001.
1-12           SECTION 2.  Section 12.111, Education Code, is amended to
1-13     read as follows:
1-14           Sec. 12.111.  Content.  Each charter granted under this
1-15     subchapter must:
1-16                 (1)  describe the educational program to be offered,
1-17     which must include the required curriculum as provided by Section
1-18     28.002;
1-19                 (2)  specify the period for which the charter or any
1-20     charter renewal is valid;
1-21                 (3)  provide that continuation or renewal of the
1-22     charter is contingent on acceptable student performance on
1-23     assessment instruments adopted under Subchapter B, Chapter 39, and
1-24     on compliance with any accountability provision specified by the
 2-1     charter, by a deadline or at intervals specified by the charter;
 2-2                 (4)  establish the level of student performance that is
 2-3     considered acceptable for purposes of Subdivision (3);
 2-4                 (5)  specify any basis, in addition to a basis
 2-5     specified by this subchapter, on which the charter may be placed on
 2-6     probation or revoked or on which renewal of the charter may be
 2-7     denied;
 2-8                 (6)  prohibit discrimination in admission policy on the
 2-9     basis of sex, national origin, ethnicity, religion, disability,
2-10     academic or athletic ability, or the district the child would
2-11     otherwise attend in accordance with this code, although the charter
2-12     may provide for the exclusion of a student who has a documented
2-13     history of a criminal offense, a juvenile court adjudication, or
2-14     discipline problems under Subchapter A, Chapter 37;
2-15                 (7)  specify the grade levels to be offered;
2-16                 (8)  describe the governing structure of the program,
2-17     including:
2-18                       (A)  the officer positions designated;
2-19                       (B)  the manner in which officers are selected;
2-20                       (C)  the manner in which members of the governing
2-21     body are elected or appointed;
2-22                       (D)  the manner in which vacancies on the
2-23     governing board are filled;
2-24                       (E)  the term for which members of the governing
2-25     body serve; and
2-26                       (F)  whether the terms are to be staggered;
2-27                 (9)  specify the qualifications to be met by
 3-1     professional employees of the program;
 3-2                 (10)  describe the process by which the person
 3-3     providing the program will adopt an annual budget;
 3-4                 (11)  describe the manner in which an annual audit of
 3-5     the financial and programmatic operations of the program is to be
 3-6     conducted, including the manner in which the person providing the
 3-7     program will provide information necessary for the school district
 3-8     in which the program is located to participate, as required by this
 3-9     code or by State Board of Education rule, in the Public Education
3-10     Information Management System (PEIMS);
3-11                 (12)  describe the facilities to be used;
3-12                 (13)  describe the geographical area served by the
3-13     program; and
3-14                 (14)  specify any type of enrollment criteria to be
3-15     used.
3-16           SECTION 3.  Section 12.118, Education Code, is amended by
3-17     amending Subsection (b) and adding Subsection (d) to read as
3-18     follows:
3-19           (b)  An evaluation under this section, before implementing
3-20     the charter and after implementing the charter, as applicable,
3-21     must:
3-22                 (1)  emphasize:
3-23                       (A)  students' scores on assessment instruments
3-24     administered under Subchapter B, Chapter 39; and
3-25                       (B)  the rate at which eligible students reenroll
3-26     in the school from year to year; and
3-27                 (2)  include consideration of the following items
 4-1     [before implementing the charter and after implementing the
 4-2     charter]:
 4-3                       (A) [(1)  students' scores on assessment
 4-4     instruments administered  under Subchapter B, Chapter 39;]
 4-5                 [(2)]  student attendance;
 4-6                       (B) [(3)]  students' grades;
 4-7                       (C) [(4)]  incidents involving student
 4-8     discipline;
 4-9                       (D) [(5)]  socioeconomic data on students'
4-10     families;
4-11                       (E) [(6)]  parents' satisfaction with their
4-12     children's schools; and
4-13                       (F) [(7)]  students' satisfaction with their
4-14     schools.
4-15           (d)  Notwithstanding Subsection (a), the agency shall conduct
4-16     an evaluation under this section of each open-enrollment charter
4-17     school.  Not later than December 1, 2000, the agency shall prepare
4-18     and deliver a report of the results of the evaluations conducted
4-19     under this subsection to the governor, lieutenant governor, and
4-20     each member of the legislature.  This subsection expires September
4-21     1, 2001.
4-22           SECTION 4.  Subchapter D, Chapter 12, Education Code, is
4-23     amended by adding Sections 12.119, 12.120, and 12.121 to read as
4-24     follows:
4-25           Sec. 12.119.  FINANCIAL AUDITS.  (a)  An open-enrollment
4-26     charter school is subject to the financial audit requirements of
4-27     Section 44.008.
 5-1           (b)  The state auditor shall monitor the oversight by the
 5-2     State Board of Education of open-enrollment charter schools.
 5-3           Sec. 12.120.  BYLAWS; ANNUAL REPORT.  (a)  The entity to
 5-4     which a charter is granted for an open-enrollment charter school
 5-5     shall file with the State Board of Education a copy of its bylaws,
 5-6     or a comparable document if the entity does not have bylaws, within
 5-7     the period and in the manner prescribed by the board.
 5-8           (b)  Each year within the period and in a form prescribed by
 5-9     the State Board of Education, each open-enrollment charter school
5-10     shall file with the board the following information:
5-11                 (1)  the name, address, and telephone number of each
5-12     officer and member of the governing body of the open-enrollment
5-13     charter school; and
5-14                 (2)  the amount of annual compensation the
5-15     open-enrollment charter school pays to each officer and member of
5-16     the governing body.
5-17           (c)  On request, the State Board of Education shall provide
5-18     the information required by this section and Section 12.111(8) to a
5-19     member of the public.  The board may charge a reasonable fee to
5-20     cover the board's cost in providing the information.
5-21           Sec. 12.121.  LIMITATION ON SERVING AS OFFICER OR EMPLOYEE.
5-22     A person who has been convicted of a felony or a misdemeanor
5-23     involving moral turpitude may not serve as an officer or member of
5-24     the governing body of an open-enrollment charter school.
5-25           SECTION 5.  (a)  This Act takes effect September 1, 1999,
5-26     except that Section 1 of this Act and this section take effect
5-27     immediately.
 6-1           (b)  Each open-enrollment charter school for which a charter
 6-2     is granted before September 1, 1999, shall revise its charter as
 6-3     necessary to comply with Section 12.111, Education Code, as amended
 6-4     by this Act, not later than January 1, 2000.
 6-5           (c)  The entity to which a charter for an open-enrollment
 6-6     charter school is granted before September 1, 1999, shall file a
 6-7     copy of its bylaws or other document as required by Section
 6-8     12.120(a), Education Code, as added by this Act, not later than
 6-9     January 1, 2000.
6-10           (d)  The changes in law made by this Act do not affect the
6-11     validity of charters issued before the effective date of a
6-12     provision of this Act.
6-13           SECTION 6.  The importance of this legislation and the
6-14     crowded condition of the calendars in both houses create an
6-15     emergency and an imperative public necessity that the
6-16     constitutional rule requiring bills to be read on three several
6-17     days in each house be suspended, and this rule is hereby suspended,
6-18     and that this Act take effect and be in force according to its
6-19     terms, and it is so enacted.