SRC-MWN H.B. 6 77(R) BILL ANALYSIS Senate Research Center H.B. 6 By: Dunnam (Bivins) Education 5/3/2001 Engrossed DIGEST AND PURPOSE On May 30, 1995, the Texas Legislature authorized an initial set of 20 open-enrollment charter schools to create competition and innovation in Texas public schools as a whole. The House Public Education Committee established an interim subcommittee on charter schools to evaluate the charter school program and report to the 77th Legislature. The subcommittee reports that there is little evidence to support that charter schools are using innovative teaching methods or that they are performing as well as traditional public schools. Financial troubles and statutory ambiguities have contributed to the abrupt failures of several charter schools. In some cases, the sudden closing of the schools resulted in displaced students having to repeat a grade. Yet the number of charter schools has grown to approximately 200, and the subcommittee reports that without restrictions, Texas could see over 1,000 charter campuses in the next few years. Unless the growth of charter schools is slowed and the accountability and oversight strengthened, the subcommittee concludes problems will continue to occur at a faster rate than the State Board of Education can discover and solve them. H.B. 6 establishes a two-year moratorium on new charters for open-enrollment charter schools and strengthens the accountability and oversight provisions regarding the operation of open-enrollment charter schools. RULEMAKING AUTHORITY Rulemaking authority is expressly granted to the commissioner of education in SECTIONS 8 (Section 12.104, Education Code) and 24 (Sections 12.125 and 12.127, Education Code), to the State Board of Education in SECTIONS 24 (Section 12.123, Education Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 8.002, Education Code, as follows: Sec. 8.002. PURPOSE. Sets forth legislative purpose. SECTION 2. Amends Section 8.003(b), Education Code, to require the rules to provide that if 500 or more students residing within the service center region attend open-enrollment charter schools, the commissioner of education (commissioner) is required to appoint a representative of an openenrollment charter school located within the region to serve on the regional education service center board of directors. SECTION 3. Amends Sections 8.051, 8.053, and 8.054, Education Code, as follows: Sec. 8.051. CORE SERVICES AND SERVICES TO IMPROVE PERFORMANCE. (a) Requires each regional education service center to use funds distributed to the center under Section 8.121 to develop, maintain, and deliver services identified under this section to improve student, school district, and open-enrollment charter school performance. Makes a conforming change. (b) Requires each plan to include the purposes and description of the services the center will provide to certain campuses. (c) Makes a conforming change. (d) Requires each regional education service center to maintain core services for purchase by school districts, campuses, and open-enrollment charter schools and campuses of those schools. Sets forth services constituting core services. Sec. 8.053. ADDITIONAL SERVICES. Makes a conforming change. Sec. 8.054. PROHIBITION ON REGULATORY FUNCTION. Makes conforming changes. SECTION 4. Amends Section 8.101, Education Code, to require the commissioner to establish performance standards and indicators for regional education centers that measure the achievement of the objectives in Section 8.002, including performance standards and indicators that evaluate the assistance provided to open-enrollment charter schools. Requires performance standards and indicators to include certain criteria. SECTION 5. Amends Chapter 12A, Education Code, by amending Section 12.001 and adding Section 12.0011, as follows: Sec. 12.001. PURPOSES OF CHAPTER. (a) Sets forth purposes of this chapter. (b) Requires this chapter to be applied in a manner that ensures the fiscal and academic accountability of persons holding charters issued under this chapter. Prohibits this chapter from being applied in a manner that unduly regulates the instructional methods or pedagogical innovations of charter schools. Sec. 12.0011. Designates Section 12.0011 from existing text regarding ALTERNATIVE METHOD OF OPERATION. SECTION 6. Amends Chapter 12D, Education Code, by adding Sections 12.1012-12.1015, as follows: Sec. 12.1012. DEFINITIONS. Defines "charter holder," "governing body of a charter holder," "governing body of an open-enrollment charter school," "management company," "management services," and "officer." Sec. 12.1013. DELEGATION BY STATE BOARD OF EDUCATION. (a) Authorizes the State Board of Education to delegate to the commissioner any power or duty of the board under this subchapter, other than the power to grant, deny, modify, place on probation, deny renewal of, or revoke a charter for an open-enrollment charter school. (b) Authorizes the commissioner to conduct hearings on any issue as to which a hearing is authorized under this subchapter. Sec. 12.1014. MINIMUM STUDENT ENROLLMENT. (a) Prohibits the State Board of Education from granting a charter to or renewing the charter of an open-enrollment charter school unless the board determines that the school will have and maintain an enrollment of at least 50 students, except that a school is authorized to have an enrolment of not fewer than 20 students if the board specifically finds that the nature of the school requires an enrollment of fewer than 50 students. (b) Authorizes the State Board of Education to revoke an open-enrollment charter school's charter if, for a period prescribed by board rule, the school's enrollment is lower than the number of students authorized under Subsection (a). Sec. 12.1015. MORATORIUM ON NEW CHARTERS. (a) Prohibits the State Board of Education, notwithstanding Sections 12.101 and 12.1011, from issuing a charter for an openenrollment charter school after August 31, 2001. (b) Provides that this section expires September 1, 2003. SECTION 7. Amends Section 12.103, Education Code, as follows: Sec. 12.103. New heading: GENERAL APPLICABILITY OF LAWS AND RULES TO OPEN-ENROLLMENT CHARTER SCHOOL. (a) Provides that an open-enrollment charter school is subject to federal and state laws and rules governing public schools or public school districts, including state laws listed in Sections 12.1051 and 12.1053, except as provided by Subsection (b) or (c). (b) Makes a conforming change. (c) Provides that an open-enrollment charter school is not subject to a state law or rule governing public school districts if the commissioner determines it is impracticable or inefficient to apply the law or rule to open-enrollment charter schools. SECTION 8. Amends Section 12.104, Education Code, by amending Subsection (b) and adding Subsections (c) and (d), as follows: (b) Provides that an open-enrollment charter school is subject to certain criteria. (c) Authorizes the commissioner to adopt rules applying provisions of this code other than those listed in Subsection (b) to open-enrollment charter schools to the extent the commissioner determines is necessary or advisable to provide and account for state funding of openenrollment charter schools under Section 12.106. (d) Provides that an open-enrollment charter school is subject to the requirement relating to the length of the school day under Section 25.082 unless the commissioner grants the openenrollment charter school a waiver from that requirement under Section 12.1041. SECTION 9. Amends Chapter 912D, Education Code, by adding Section 12.1041, as follows: Sec. 12.1041. WAIVER OF REQUIREMENT RELATING TO LENGTH OF SCHOOL DAY. (a) Requires an open-enrollment charter school that, for purposes of Section 12.104(d), is seeking a waiver of the requirement relating to the school day under Section 25.082 to submit a written application to the commissioner not later than the 31st day before the date the openenrollment charter school intends to provide a shorter school day. Requires the application to include a statement of achievement objectives of the open-enrollment charter school and the inhibition imposed on those objectives by the requirement. (b) Prohibits the commissioner, subject to Subsection (c), from denying an application for a waiver under this section submitted by an open-enrollment charter school rated as academically acceptable or higher under Chapter 39 for each of the preceding three school years. (c) Prohibits the commissioner from granting a waiver under this section if, as determined by the commissioner, a purpose of the waiver application is to support any athletic or artistic activity. (d) Provides that if the commissioner objects to the application for the waiver, not later than the 30th day after the date the commissioner receives the application the commissioner is required to notify the open-enrollment charter school in writing that the application is denied. Provides that if the commissioner does not notify the school of a denial within that period, the application is considered approved. (e) Provides that a waiver granted under this section is effective for the period stated in the application, which is prohibited from exceeding three years. Authorizes an openenrollment charter school for which the requirement under Section 25.082 is waived under this section for a period of three years to receive an exemption from that requirement at the end of that period if the school has fulfilled the achievement objectives stated in the application. Provides that the exemption remains in effect until the commissioner determines that achievement levels of the school have declined. SECTION 10. Amends Chapter 12D, Education Code, by amending Section 12.105 and adding Sections 12.1051-12.1055, as follows: Sec. 12.1051. STATUS. Makes a nonsubstantive change. Sec. 12.1051. APPLICABILITY OF OPEN MEETINGS AND PUBLIC INFORMATION LAWS. (a) Provides that the governing body of a charter holder and the governing body of an open-enrollment charter school are considered to be governmental bodies for purposes of Chapters 551 and 552, Government Code. Makes nonsubstantive changes. (b) Provides that any requirement in Chapter 551 (Open Meetings) or 552 (Public Information), Government Code, that applies, rather than those chapters relating, to a school district, the board of trustees of a school district, rather than school board, or public school students, rather than children, applies to an open-enrollment charter school, the governing body of a charter holder, the governing body attending an openenrollment charter school. Makes a conforming change. Sec. 12.1052. APPLICABILITY OF LAWS RELATING TO LOCAL GOVERNMENT RECORDS. (a) Provides that an open-enrollment charter school is considered to be a local government for purposes of Title 6(C) (Records Provisions Applying to More Than One Type of Local Government), Local Government Code, and Chapter 441J (Preservation and Management of Local Government Records), Government Code. (b) Provides that records of an open-enrollment charter school and records of a charter holder that relate to an open-enrollment charter school are government records for all purposes under state law. (c) Requires any requirement in Title 6(C), Local Government Code, or Chapter 441(J), Government Code, that applies to certain entities to be transferred in the manner prescribed by Subsection (d). (d) Requires the records of an open-enrollment charter school that ceases to operate to be transferred in the manner specified by the commissioner to a custodian designated by the commissioner. Authorizes the commissioner to designate any appropriate entity to serve as custodian, including the agency, a regional education service center, or a school district. Requires the commissioner, in designating a custodian, to ensure that the transferred records, including student and personnel records, are transferred to a custodian capable of meeting certain conditions. (e) Authorizes the commissioner, if the charter holder of an