By Krusee                                             H.B. No. 3644
         76R8852 CAS-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to university charter schools.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Chapter 12, Education Code, is amended by adding
 1-5     Subchapter E to read as follows:
 1-6                  SUBCHAPTER E. UNIVERSITY CHARTER SCHOOLS
 1-7           Sec. 12.151.  DEFINITION.  In this subchapter, "university
 1-8     system" means The University of Texas System.
 1-9           Sec. 12.152.  AUTHORIZATION.  In accordance with this
1-10     subchapter, the board of regents of the university system may grant
1-11     a charter on the application of an eligible entity for a university
1-12     charter school to operate in a facility of a commercial or
1-13     nonprofit entity or a school district, including a home-rule school
1-14     district.  In this subsection, "eligible entity" has the meaning
1-15     assigned by Section 12.101(a).
1-16           Sec. 12.153.  APPLICABILITY OF CERTAIN PROVISIONS.  Sections
1-17     12.101(c) and (d), 12.102-12.109, 12.111, and 12.117 apply to a
1-18     university charter school as though the university charter school
1-19     were an open-enrollment charter school.
1-20           Sec. 12.154.  APPLICATION.  (a) The board of regents of the
1-21     university system shall adopt:
1-22                 (1)  an application form and a procedure that must be
1-23     used to apply for a charter for a university charter school; and
1-24                 (2)  criteria to use in selecting a program for which
 2-1     to grant a charter.
 2-2           (b)  The application form must provide for including the
 2-3     information required under Section 12.111 to be contained in a
 2-4     charter.
 2-5           (c)  As part of the application procedure, the board of
 2-6     regents may require a petition supporting a charter for a school
 2-7     signed by a specified number of parents or guardians of school-age
 2-8     children residing in the area in which a school is proposed or may
 2-9     hold a public hearing to determine parental support for the school.
2-10           (d)  The board of regents may approve or deny an application
2-11     based on criteria it adopts.  The criteria the board of regents
2-12     adopts must include:
2-13                 (1)  criteria relating to improving student performance
2-14     and encouraging innovative programs; and
2-15                 (2)  a statement from any school district whose
2-16     enrollment is likely to be affected by the university charter
2-17     school, including information relating to any financial difficulty
2-18     that a loss in enrollment may have on the district.
2-19           Sec. 12.155.  FORM.  A charter for a university charter
2-20     school must be in the form of a written contract signed by the
2-21     chair of the board of regents and the chief operating officer of
2-22     the school.
2-23           Sec. 12.156.  CHARTER GRANTED.  Each charter the board of
2-24     regents grants for a university charter school must:
2-25                 (1)  satisfy this subchapter; and
2-26                 (2)  include the information that is required under
2-27     Section 12.111 consistent with the information provided in the
 3-1     application and any modification the board of regents requires.
 3-2           Sec. 12.157.  REVISION.  A revision of a charter of a
 3-3     university charter school may be made only with the approval of the
 3-4     board of regents.
 3-5           Sec. 12.158.  BASIS FOR MODIFICATION, PLACEMENT ON PROBATION,
 3-6     REVOCATION, OR DENIAL OF RENEWAL.  (a)  The board of regents may
 3-7     modify, place on probation, revoke, or deny renewal of the charter
 3-8     of a  university  charter school if the board of regents determines
 3-9     that the person operating the school:
3-10                 (1)  committed a material violation of the charter,
3-11     including failure to satisfy accountability provisions prescribed
3-12     by the charter;
3-13                 (2)  failed to satisfy generally accepted accounting
3-14     standards of fiscal management; or
3-15                 (3)  failed to comply with this subchapter or another
3-16     applicable law or rule.
3-17           (b)  The action the board of regents takes under Subsection
3-18     (a) shall be based on the best interest of the school's students,
3-19     the severity of the violation, and any previous violation the
3-20     school has committed.
3-21           Sec. 12.159.  PROCEDURE FOR MODIFICATION, PLACEMENT ON
3-22     PROBATION, REVOCATION, OR DENIAL OF RENEWAL.  (a)  The board of
3-23     regents shall adopt a procedure to be used for modifying, placing
3-24     on probation, revoking, or denying renewal of the charter of a
3-25     university charter school.
3-26           (b)  The procedure adopted under Subsection (a) must provide
3-27     an opportunity for a hearing to the person operating the university
 4-1     charter school and to parents and guardians of students in the
 4-2     school.  A hearing under this subsection must be held at the
 4-3     facility at which the program is operated.
 4-4           Sec. 12.160.  EVALUATION OF UNIVERSITY CHARTER SCHOOLS.  (a)
 4-5     The boards of regents shall designate an impartial organization
 4-6     with experience in evaluating school choice programs to conduct an
 4-7     annual evaluation of the university charter schools.
 4-8           (b)  An evaluation under this section must include
 4-9     consideration of the following items before and after
4-10     implementation of the charter:
4-11                 (1)  students' scores on assessment instruments
4-12     administered under Subchapter B, Chapter 39;
4-13                 (2)  student attendance;
4-14                 (3)  students' grades;
4-15                 (4)  incidents involving student discipline;
4-16                 (5)  socioeconomic data on students' families;
4-17                 (6)  parents' satisfaction with their children's
4-18     schools; and
4-19                 (7)  students' satisfaction with their schools.
4-20           (c)  The evaluation of university charter schools must also
4-21     include an evaluation of:
4-22                 (1)  the costs of instruction, administration, and
4-23     transportation incurred by university charter schools; and
4-24                 (2)  the effect of university charter schools on school
4-25     districts and on teachers, students, and parents in those
4-26     districts.
4-27           SECTION 2.  The importance of this legislation and the
 5-1     crowded condition of the calendars in both houses create an
 5-2     emergency and an imperative public necessity that the
 5-3     constitutional rule requiring bills to be read on three several
 5-4     days in each house be suspended, and this rule is hereby suspended,
 5-5     and that this Act take effect and be in force from and after its
 5-6     passage, and it is so enacted.