By Olivo                                              H.B. No. 2358
         76R7672 ESH-D                           
                                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.  Section 12.101(b), Education Code, is amended to
 1-5     read as follows:
 1-6           (b)  The State Board of Education may not grant an original
 1-7     charter [a total of more than 20 charters] for an open-enrollment
 1-8     charter school after the effective date of the 1999 amendment to
 1-9     this section.
1-10           SECTION 2.  Section 12.118, Education Code, is amended by
1-11     amending Subsection (b) and adding Subsection (d) to read as
1-12     follows:
1-13           (b)  An evaluation under this section, before implementing
1-14     the charter and after implementing the charter, as applicable,
1-15     must:
1-16                 (1)  emphasize:
1-17                       (A)  student's scores on assessment instruments
1-18     administered under Subchapter B, Chapter 39; and
1-19                       (B)  the rate at which eligible students
1-20     re-enroll in the school from year to year; and
1-21                 (2)  include consideration of the following items
1-22     [before implementing the charter and after implementing the
1-23     charter]:
1-24                       (A) [(1)  students' scores on assessment
 2-1     instruments administered under Subchapter B, Chapter 39;]
 2-2                 [(2)]  student attendance;
 2-3                       (B) [(3)]  students' grades;
 2-4                       (C) [(4)]  incidents involving student
 2-5     discipline;
 2-6                       (D) [(5)]  socioeconomic data on students'
 2-7     families;
 2-8                       (E) [(6)]  parents' satisfaction with their
 2-9     children's schools; and
2-10                       (F) [(7)]  students' satisfaction with their
2-11     schools.
2-12           (d)  If funds are appropriated for the purpose, the agency
2-13     shall reimburse an open-enrollment charter school for the cost of
2-14     an evaluation under this section.  If the funds appropriated are
2-15     insufficient to cover the cost of evaluation of all schools, the
2-16     commissioner shall reimburse each school proportionately.
2-17           SECTION 3.  Subchapter D, Chapter 12, Education Code, is
2-18     amended by adding Sections 12.119 and 12.120 to read as follows:
2-19           Sec. 12.119.  FINANCIAL AUDITS.  (a)  An open-enrollment
2-20     charter school is subject to the financial audit requirements of
2-21     Section 44.008.
2-22           (b)  At least once during the period for which a charter or
2-23     renewed charter is valid, the state auditor shall perform a
2-24     financial audit of each open-enrollment charter school.  The state
2-25     auditor shall prescribe a schedule of audits for this purpose.  The
2-26     open-enrollment charter school shall reimburse the state auditor
2-27     for the cost of an audit under this subsection, and the audit of
 3-1     the state auditor satisfies the annual financial audit requirements
 3-2     of Section 44.008 for the year in which the audit is performed.
 3-3           Sec. 12.120.  CERTAIN CONTRACTS PROHIBITED.  An
 3-4     open-enrollment charter school may not contract for the management
 3-5     or operation of the school by an entity not eligible for a charter
 3-6     under Section 12.101(a).
 3-7           SECTION 4.  Section 12.1011, Education Code, is repealed.
 3-8           SECTION 5.  (a)  This Act takes effect September 1, 1999,
 3-9     except that Sections 1 and 4 of this Act take effect immediately.
3-10           (b)  The changes in law made by this Act do not affect the
3-11     validity of charters issued before the effective date of a
3-12     provision of this Act.
3-13           SECTION 6.  The importance of this legislation and the
3-14     crowded condition of the calendars in both houses create an
3-15     emergency and an imperative public necessity that the
3-16     constitutional rule requiring bills to be read on three several
3-17     days in each house be suspended, and this rule is hereby suspended,
3-18     and that this Act take effect and be in force according to its
3-19     terms, and it is so enacted.