By Krusee                                             H.B. No. 3754
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to creation of the Charter School Commission.
 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.  CHARTER SCHOOL COMMISSION.  (a)  The Charter
 1-7     School Commission is composed of five members appointed as follows:
 1-8                 (1)  three members appointed by the governor with the
 1-9     advice and consent of the senate;
1-10                 (2)  one member appointed by the commissioner;
1-11                 (3)  one member appointed by the chair of the board[;].
1-12                 [(4)  one member appointed by the lieutenant governor;
1-13     and]
1-14                 [(5)  one member appointed by the comptroller.]
1-15           (b)  An appointment to the commission may not be made with
1-16     regard to the race, creed, sex, religion, or national origin of the
1-17     appointed member.
1-18           (c)  A person is not eligible for service on the commission
1-19     if the person:
1-20                 (1)  holds an office with this state or any political
1-21     subdivision of this state; or
 2-1                 (2)  is required to register as a lobbyist under
 2-2     Chapter 305, Government Code, by virtue of the person's activities
 2-3     for compensation in or on behalf of a profession, business, or
 2-4     association related to the operation of the commission or the
 2-5     board.
 2-6           (d)  Members of the commission serve for two-year terms
 2-7     expiring February 1 of each odd-numbered year.  A member of the
 2-8     commission may not serve more than two full terms as a commission
 2-9     member.
2-10           (e)  The governor, with the advice and consent of the senate,
2-11     shall appoint the chair from among the membership of the
2-12     commission.  The chair serves at the pleasure of the governor.
2-13           (f)  The commission shall hold four meetings a year on dates
2-14     determined by the chair and may hold other meetings at the call of
2-15     the chair.
2-16           (g)  A member of the commission is not entitled to receive
2-17     compensation for service on the commission.  A member of the
2-18     commission is entitled to reimbursement for actual and necessary
2-19     expenses incurred in discharging the member's duties as a
2-20     commission member as provided by the General Appropriations Act.
2-21           (h)  The agency shall provide staff and facilities for the
2-22     commission.
2-23           SECTION 2.  Sections 12.101(a) and (b), Education Code, are
2-24     amended to read as follows:
2-25           (a)  In accordance with this subchapter, the Charter School
 3-1     Commission [State Board of Education] may grant a charter on the
 3-2     application of an eligible entity for an open-enrollment charter
 3-3     school to operate in a facility of a commercial or nonprofit entity
 3-4     or a school district, including a home-rule school district.  In
 3-5     this subsection, "eligible entity" means:
 3-6                 (1)  an institution of higher education as defined
 3-7     under Section 61.003;
 3-8                 (2)  a private or independent institution of higher
 3-9     education as defined under Section 61.003;
3-10                 (3)  an organization that is exempt from taxation under
3-11     Section 501(c)(3), Internal Revenue Code of 1986 (26 U.S.C.
3-12     Section 501(c)(3)); or
3-13                 (4)  a governmental entity.
3-14           (b)  The Charter School Commission [State Board of Education]
3-15     may not grant a total of more than 20 charters for an
3-16     open-enrollment charter school.
3-17           SECTION 3.  Section 12.1011(a), Education Code, is amended to
3-18     read as follows:
3-19           (a)  In addition to the other charters authorized under this
3-20     subchapter, in accordance with this subchapter the Charter School
3-21     Commission [State Board of Education] may grant:
3-22                 (1)  not more than 100 charters for open-enrollment
3-23     charter schools that adopt an express policy providing for the
3-24     admission of students eligible for a public education grant under
3-25     Subchapter G, Chapter 29; and
 4-1                 (2)  additional charters for open-enrollment charter
 4-2     schools for which at least 75 percent of the prospective student
 4-3     population, as specified in the proposed charter, will be students
 4-4     who have dropped out of school or are at risk of dropping out of
 4-5     school as defined by Section 29.081.
 4-6            SECTION 4.  Sections 12.110(a), (c), and (d), Education
 4-7     Code, are amended to read as follows:
 4-8           (a)  The Charter School Commission [State Board of Education]
 4-9     shall adopt:
4-10                 (1)  an application form and a procedure that must be
4-11     used to apply for a charter for an open-enrollment charter school;
4-12     and
4-13                 (2)  criteria to use in selecting a program for which
4-14     to grant a charter.
4-15           (c)  As part of the application procedure, the commission
4-16     [board] may require a petition supporting a charter for a school
4-17     signed by a specified number of parents or guardians of school-age
4-18     children residing in the area in which a school is proposed or may
4-19     hold a public hearing to determine parental support for the school.
4-20           (d)  The commission [board] may approve or deny an
4-21     application based on criteria it adopts.  The criteria the
4-22     commission [board]  adopts must include:
4-23                 (1)  criteria relating to improving student performance
4-24     and encouraging innovative programs; and
4-25                 (2)  a statement from any school district whose
 5-1     enrollment is likely to be affected by the open-enrollment charter
 5-2     school, including information relating to any financial difficulty
 5-3     that a loss in enrollment may have on the district.
 5-4           SECTION 5.  Section 12.112, Education Code, is amended to
 5-5     read as follows:
 5-6           Sec. 12.112.  FORM.  A charter for an open-enrollment charter
 5-7     school shall be in the form of a written contract signed by the
 5-8     chair of the Charter School Commission [State Board of Education]
 5-9     and the chief operating officer of the school.
5-10           SECTION 6.  Section 12.113, Education Code, is amended to
5-11     read as follows:
5-12           Sec. 12.113.  CHARTER GRANTED.  Each charter the Charter
5-13     School Commission [State Board of Education] grants for an
5-14     open-enrollment charter school must:
5-15                 (1)  satisfy this subchapter; and
5-16                 (2)  include the information that is required under
5-17     Section 12.111 consistent with the information provided in the
5-18     application and any modification the commission [board] requires.
5-19           SECTION 7.  Section 12.114, Education Code, is amended to
5-20     read as follows:
5-21           Sec. 12.114.  REVISION.  A revision of a charter of an
5-22     open-enrollment charter school may be made only with the approval
5-23     of the Charter School Commission [State Board of Education].
5-24           SECTION 8.  Section 12.115, Education Code, is amended to
5-25     read as follows:
 6-1           Sec. 12.115.  BASIS FOR MODIFICATION, PLACEMENT ON PROBATION,
 6-2     REVOCATION, OR DENIAL OF RENEWAL.  (a)  The Charter School
 6-3     Commission [State Board of Education] may modify, place on
 6-4     probation, revoke, or deny renewal of the charter of an
 6-5     open-enrollment charter school if the commission [board] determines
 6-6     that the person operating the school:
 6-7                 (1)  committed a material violation of the charter,
 6-8     including failure to satisfy accountability provisions prescribed
 6-9     by the charter;
6-10                 (2)  failed to satisfy generally accepted accounting
6-11     standards of fiscal management; or
6-12                 (3)  failed to comply with this subchapter or another
6-13     applicable law or rule.
6-14           (b)  The action the commission [board] takes under Subsection
6-15     (a) shall be based on the best interest of the school's students,
6-16     the severity of the violation, and any previous violation the
6-17     school has committed.
6-18           SECTION 9.  Section 12.116(a), Education Code, is amended to
6-19     read as follows:
6-20           (a)  The Charter School Commission [State Board of Education]
6-21     shall adopt a procedure to be used for modifying, placing on
6-22     probation, revoking, or denying renewal of the charter of an
6-23     open-enrollment charter school.
6-24           SECTION 10.  Section 12.118(a), Education Code, is amended to
6-25     read as follows:
 7-1           (a)  The Charter School Commission [board] shall designate an
 7-2     impartial organization with experience in evaluating school choice
 7-3     programs to conduct an annual evaluation of open-enrollment charter
 7-4     schools.
 7-5           SECTION 11.  Section 7.102(c)(9), Education Code, is
 7-6     repealed.
 7-7           SECTION 12.  This Act takes effect September 1, 1999.
 7-8           SECTION 13.  (a)  Not later than November 1, 1999, each
 7-9     appointing authority specified in Section 12.1012, Education Code,
7-10     as added by this Act, shall make the initial appointments to the
7-11     Charter School Commission.
7-12           (b)  During the period beginning September 1, 1999, and
7-13     ending on the date that a quorum of the Charter School Commission
7-14     has been appointed and has qualified for office, the State Board of
7-15     Education may modify a charter for an open-enrollment charter
7-16     school granted by the State Board of Education under Subchapter D,
7-17     Chapter 12, Education Code, as that law existed on January 1, 1999,
7-18     or may place such a charter on probation, but may not revoke such a
7-19     charter.
7-20           (c)  A charter for an open-enrollment charter school granted
7-21     by the State Board of Education under Subchapter D, Chapter 12,
7-22     Education Code, as that law existed on January 1, 1999, or a
7-23     revision to such a charter, remains valid for the period for which
7-24     it was granted unless the charter is modified or placed on
7-25     probation by the State Board of Education under Subsection (b) of
 8-1     this section or by the Charter School Commission.  The Charter
 8-2     School Commission may take any action concerning such a charter as
 8-3     if the commission had granted the charter.
 8-4           SECTION 14.  The importance of this legislation and the
 8-5     crowded condition of the calendars in both houses create an
 8-6     emergency and an imperative public necessity that the
 8-7     constitutional rule requiring bills to be read on three several
 8-8     days in each house be suspended, and this rule is hereby suspended.