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