By Dunnam, Smith, Olivo, Hardcastle, Dutton, H.B. No. 6
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 8.002, Education Code, is amended to read
1-5 as follows:
1-6 Sec. 8.002. PURPOSE. Regional education service centers
1-7 shall:
1-8 (1) assist school districts and open-enrollment
1-9 charter schools in improving student performance in each region of
1-10 the system;
1-11 (2) enable school districts and open-enrollment
1-12 charter schools to operate more efficiently and economically; and
1-13 (3) implement initiatives assigned by the legislature
1-14 or the commissioner.
1-15 SECTION 2. Section 8.003(b), Education Code, is amended to
1-16 read as follows:
1-17 (b) The commissioner shall adopt rules to provide for the
1-18 local selection, appointment, and continuity of membership of
1-19 regional education service center boards of directors. The rules
1-20 must provide that if 500 or more students residing within the
1-21 service center region attend open-enrollment charter schools, the
1-22 commissioner shall appoint a representative of an open-enrollment
1-23 charter school located within the region to serve on the board of
1-24 directors.
1-25 SECTION 3. Sections 8.051, 8.053, and 8.054, Education Code,
2-1 are amended to read as follows:
2-2 Sec. 8.051. CORE SERVICES AND SERVICES TO IMPROVE
2-3 PERFORMANCE. (a) Each regional education service center shall use
2-4 funds distributed to the center under Section 8.121 to develop,
2-5 maintain, and deliver services identified under this section to
2-6 improve student, [and] school district, and open-enrollment charter
2-7 school performance.
2-8 (b) Each regional education service center shall annually
2-9 develop and submit to the commissioner for approval a plan for
2-10 improvement. Each plan must include the purposes and description
2-11 of the services the center will provide to:
2-12 (1) campuses identified as low-performing based on the
2-13 indicators adopted under Section 39.051, including campuses of
2-14 open-enrollment charter schools;
2-15 (2) the lowest-performing campuses in the region,
2-16 including campuses of open-enrollment charter schools; and
2-17 (3) other campuses, including campuses of
2-18 open-enrollment charter schools.
2-19 (c) Each regional education service center shall provide
2-20 services that enable school districts and open-enrollment charter
2-21 schools to operate more efficiently and economically.
2-22 (d) Each regional education service center shall maintain
2-23 core services for purchase by school districts, [and] campuses, and
2-24 open-enrollment charter schools and campuses of those schools. The
2-25 core services are:
2-26 (1) training and assistance in teaching each subject
2-27 area assessed under Section 39.023;
3-1 (2) training and assistance in providing each program
3-2 that qualifies for a funding allotment under Section 42.151,
3-3 42.152, 42.153, or 42.156;
3-4 (3) assistance specifically designed for a school
3-5 district rated academically unacceptable under Section 39.072(a) or
3-6 a campus or open-enrollment charter school whose performance is
3-7 considered unacceptable based on the indicators adopted under
3-8 Section 39.051;
3-9 (4) training and assistance to:
3-10 (A) teachers;
3-11 (B)[,] administrators of school districts,
3-12 campuses, and open-enrollment charter schools;
3-13 (C)[,] members of district boards of trustees
3-14 and of governing bodies of open-enrollment charter schools;[,] and
3-15 (D) members of site-based decision-making
3-16 committees;
3-17 (5) assistance specifically designed for a school
3-18 district that is considered out of compliance with state or federal
3-19 special education requirements, based on the agency's most recent
3-20 compliance review of the district's special education programs; and
3-21 (6) assistance in complying with state laws and rules.
3-22 Sec. 8.053. ADDITIONAL SERVICES. In addition to the services
3-23 provided under Section 8.051 and the initiatives implemented under
3-24 Section 8.052, a regional education service center may:
3-25 (1) offer any service requested and purchased by any
3-26 school district, [or] campus, or open-enrollment charter school in
3-27 the state; and
4-1 (2) contract with a public or private entity for
4-2 services under this subchapter, including the provision of
4-3 continuing education courses and programs for educators.
4-4 Sec. 8.054. PROHIBITION ON REGULATORY FUNCTION. A regional
4-5 education service center may not perform a regulatory function
4-6 regarding a school district or open-enrollment charter school. This
4-7 section does not prohibit a regional education service center from
4-8 offering training or other assistance to a school district or
4-9 open-enrollment charter school in complying with a state or federal
4-10 law, rule, or regulation.
4-11 SECTION 4. Section 8.101, Education Code, is amended to read
4-12 as follows:
4-13 Sec. 8.101. PERFORMANCE STANDARDS AND INDICATORS. The
4-14 commissioner shall establish performance standards and indicators
4-15 for regional education service centers that measure the achievement
4-16 of the objectives in Section 8.002, including performance standards
4-17 and indicators that evaluate the assistance provided to
4-18 open-enrollment charter schools. Performance standards and
4-19 indicators must include the following:
4-20 (1) student performance in districts and
4-21 open-enrollment charter schools served;
4-22 (2) district and open-enrollment charter school
4-23 effectiveness and efficiency in districts and open-enrollment
4-24 charter schools served resulting from technical assistance and
4-25 program support;
4-26 (3) direct services provided or regionally shared
4-27 services arranged by the service center which produce more
5-1 economical and efficient school operations;
5-2 (4) direct services provided or regionally shared
5-3 services arranged by the service center which provide for
5-4 assistance in core services; and
5-5 (5) grants received for implementation of state
5-6 initiatives and the results achieved by the service center under
5-7 the terms of the grant contract.
5-8 SECTION 5. Subchapter A, Chapter 12, Education Code, is
5-9 amended by amending Section 12.001 and adding Section 12.0011 to
5-10 read as follows:
5-11 Sec. 12.001. PURPOSES OF CHAPTER. (a) The purposes of this
5-12 chapter are to:
5-13 (1) improve student learning;
5-14 (2) increase the choice of learning opportunities
5-15 within the public school system;
5-16 (3) create professional opportunities that will
5-17 attract new teachers to the public school system;
5-18 (4) establish a new form of accountability for public
5-19 schools; and
5-20 (5) encourage different and innovative learning
5-21 methods.
5-22 (b) This chapter shall be applied in a manner that ensures
5-23 the fiscal and academic accountability of persons holding charters
5-24 issued under this chapter. This chapter may not be applied in a
5-25 manner that unduly regulates the instructional methods or
5-26 pedagogical innovations of charter schools.
5-27 Sec. 12.0011. ALTERNATIVE METHOD OF OPERATION. As an
6-1 alternative to operating in the manner generally provided by this
6-2 title, an independent school district, a school campus, or an
6-3 educational program may choose to operate under a charter in
6-4 accordance with this chapter.
6-5 SECTION 6. Subchapter D, Chapter 12, Education Code, is
6-6 amended by adding Sections 12.1012-12.1015 to read as follows:
6-7 Sec. 12.1012. DEFINITIONS. In this subchapter:
6-8 (1) "Charter holder" means the entity to which a
6-9 charter is granted under this subchapter.
6-10 (2) "Governing body of a charter holder" means the
6-11 board of directors, board of trustees, or other governing body of a
6-12 charter holder.
6-13 (3) "Governing body of an open-enrollment charter
6-14 school" means the board of directors, board of trustees, or other
6-15 governing body of an open-enrollment charter school. The term
6-16 includes the governing body of a charter holder if that body acts
6-17 as the governing body of the open-enrollment charter school.
6-18 (4) "Management company" means a person, other than a
6-19 charter holder, who provides management services for an
6-20 open-enrollment charter school.
6-21 (5) "Management services" means services related to
6-22 the management or operation of an open-enrollment charter school,
6-23 including:
6-24 (A) planning, operating, supervising, and
6-25 evaluating the school's educational programs, services, and
6-26 facilities;
6-27 (B) making recommendations to the governing body
7-1 of the school relating to the selection of school personnel;
7-2 (C) managing the school's day-to-day operations
7-3 as its administrative manager;
7-4 (D) preparing and submitting to the governing
7-5 body of the school a proposed budget;
7-6 (E) recommending policies to be adopted by the
7-7 governing body of the school, developing appropriate procedures to
7-8 implement policies adopted by the governing body of the school, and
7-9 overseeing the implementation of adopted policies; and
7-10 (F) providing leadership for the attainment of
7-11 student performance at the school based on the indicators adopted
7-12 under Section 39.051 or by the governing body of the school.
7-13 (6) "Officer of an open-enrollment charter school"
7-14 means:
7-15 (A) the principal, director, or other chief
7-16 operating officer of an open-enrollment charter school;
7-17 (B) an assistant principal or assistant director
7-18 of an open-enrollment charter school; or
7-19 (C) a person charged with managing the finances
7-20 of an open-enrollment charter school.
7-21 Sec. 12.1013. DELEGATION BY STATE BOARD OF EDUCATION. (a)
7-22 The State Board of Education may delegate to the commissioner any
7-23 power or duty of the board under this subchapter, other than the
7-24 power to grant, deny, modify, place on probation, deny renewal of,
7-25 or revoke a charter for an open-enrollment charter school.
7-26 (b) The commissioner may conduct hearings on any issue as to
7-27 which a hearing is authorized under this subchapter.
8-1 Sec. 12.1014. MINIMUM STUDENT ENROLLMENT. (a) The State
8-2 Board of Education may not grant a charter to or renew the charter
8-3 of an open-enrollment charter school unless the board determines
8-4 that the school will have and maintain an enrollment of at least 50
8-5 students, except that a school may have an enrollment of not fewer
8-6 than 20 students if the board specifically finds that the nature of
8-7 the school requires an enrollment of fewer than 50 students.
8-8 (b) The State Board of Education may revoke an
8-9 open-enrollment charter school's charter if, for a period
8-10 prescribed by board rule, the school's enrollment is lower than the
8-11 number of students authorized under Subsection (a).
8-12 Sec. 12.1015. MORATORIUM ON NEW CHARTERS. (a)
8-13 Notwithstanding Sections 12.101 and 12.1011, the State Board of
8-14 Education may not issue a charter for an open-enrollment charter
8-15 school after August 31, 2001.
8-16 (b) This section expires September 1, 2003.
8-17 SECTION 7. Section 12.103, Education Code, is amended to
8-18 read as follows:
8-19 Sec. 12.103. GENERAL APPLICABILITY OF LAWS AND RULES TO
8-20 OPEN-ENROLLMENT CHARTER SCHOOL. (a) Except as provided by
8-21 Subsection (b) or (c), an [An] open-enrollment charter school is
8-22 subject to federal and state laws and rules governing public
8-23 schools or public school districts, including state laws listed in
8-24 Sections 12.1051 and 12.1053.
8-25 (b) An [except that an] open-enrollment charter school is
8-26 subject to this code and rules adopted under this code only to the
8-27 extent the applicability to an open-enrollment charter school of a
9-1 provision of this code or a rule adopted under this code is
9-2 specifically provided.
9-3 (c) An open-enrollment charter school is not subject to a
9-4 state law or rule governing public school districts if the
9-5 commissioner determines it is impracticable or inefficient to apply
9-6 the law or rule to open-enrollment charter schools.
9-7 SECTION 8. Section 12.104, Education Code, is amended by
9-8 amending Subsection (b) and adding Subsections (c) and (d) to read
9-9 as follows:
9-10 (b) An open-enrollment charter school is subject to:
9-11 (1) a provision of this title establishing a criminal
9-12 offense; and
9-13 (2) a prohibition, restriction, or requirement, as
9-14 applicable, imposed by this title or a rule adopted under this
9-15 title, relating to:
9-16 (A) the Public Education Information Management
9-17 System (PEIMS) to the extent necessary to monitor compliance with
9-18 this subchapter as determined by the commissioner;
9-19 (B) criminal history records under Subchapter C,
9-20 Chapter 22;
9-21 (C) reading instruments and accelerated reading
9-22 instruction programs under Section 28.006;
9-23 (D) satisfactory performance on assessment
9-24 instruments and to accelerated instruction under Section 28.0211;
9-25 (E) high school graduation under Section 28.025;
9-26 (F) special education programs under Subchapter
9-27 A, Chapter 29;
10-1 (G) bilingual education under Subchapter B,
10-2 Chapter 29;
10-3 (H) prekindergarten programs under Subchapter E,
10-4 Chapter 29;
10-5 (I) extracurricular activities under Section
10-6 33.081;
10-7 (J) health and safety under Chapter 38; [and]
10-8 (K) public school accountability under
10-9 Subchapters B, C, D, and G, Chapter 39; and
10-10 (L) purchasing and contracting under Subchapter
10-11 B, Chapter 44.
10-12 (c) To the extent the commissioner determines is necessary
10-13 or advisable to provide and account for state funding of
10-14 open-enrollment charter schools under Section 12.106, the
10-15 commissioner may adopt rules applying provisions of this code other
10-16 than those listed in Subsection (b) to open-enrollment charter
10-17 schools.
10-18 (d) An open-enrollment charter school is subject to the
10-19 requirement relating to the length of the school day under Section
10-20 25.082 unless the commissioner grants the open-enrollment charter
10-21 school a waiver from that requirement under Section 12.1041.
10-22 SECTION 9. Subchapter D, Chapter 12, Education Code, is
10-23 amended by adding Section 12.1041 to read as follows:
10-24 Sec. 12.1041. WAIVER OF REQUIREMENT RELATING TO LENGTH OF
10-25 SCHOOL DAY. (a) An open-enrollment charter school that, for
10-26 purposes of Section 12.104(d), is seeking a waiver of the
10-27 requirement relating to the length of the school day under Section
11-1 25.082 must submit a written application to the commissioner not
11-2 later than the 31st day before the date the open-enrollment charter
11-3 school intends to provide a shorter school day. The application
11-4 must include a statement of achievement objectives of the
11-5 open-enrollment charter school and the inhibition imposed on those
11-6 objectives by the requirement.
11-7 (b) Subject to Subsection (c), the commissioner may not deny
11-8 an application for a waiver under this section submitted by an
11-9 open-enrollment charter school rated as academically acceptable or
11-10 higher under Chapter 39 for each of the preceding three school
11-11 years.
11-12 (c) The commissioner may not grant a waiver under this
11-13 section if, as determined by the commissioner, a purpose of the
11-14 waiver application is to support any athletic or artistic activity.
11-15 (d) If the commissioner objects to the application for the
11-16 waiver, not later than the 30th day after the date the commissioner
11-17 receives the application the commissioner must notify the
11-18 open-enrollment charter school in writing that the application is
11-19 denied. If the commissioner does not notify the school of a denial
11-20 within that period, the application is considered approved.
11-21 (e) A waiver granted under this section is effective for the
11-22 period stated in the application, which may not exceed three years.
11-23 An open-enrollment charter school for which the requirement under
11-24 Section 25.082 is waived under this section for a period of three
11-25 years may receive an exemption from that requirement at the end of
11-26 that period if the school has fulfilled the achievement objectives
11-27 stated in the application. The exemption remains in effect until
12-1 the commissioner determines that achievement levels of the school
12-2 have declined.
12-3 SECTION 10. Subchapter D, Chapter 12, Education Code, is
12-4 amended by amending Section 12.105 and adding Sections
12-5 12.1051-12.1055 to read as follows:
12-6 Sec. 12.105. STATUS. [(a)] An open-enrollment charter
12-7 school is part of the public school system of this state.
12-8 Sec. 12.1051. APPLICABILITY OF OPEN MEETINGS AND PUBLIC
12-9 INFORMATION LAWS. (a) [(b)] The governing body of a charter holder
12-10 and the governing body of an open-enrollment charter [the] school
12-11 are [is] considered to be [a] governmental bodies [body] for
12-12 purposes of Chapters 551 and 552, Government Code.
12-13 (b) Any requirement in Chapter 551 or 552, Government Code,
12-14 that applies [those chapters relating] to a school district, the
12-15 board of trustees of a school district [school board], or public
12-16 school students [children] applies to an open-enrollment charter
12-17 school, the governing body of a charter holder, the governing body
12-18 of an open-enrollment charter school, or students [and to children]
12-19 attending an open-enrollment charter school.
12-20 Sec. 12.1052. APPLICABILITY OF LAWS RELATING TO LOCAL
12-21 GOVERNMENT RECORDS. (a) An open-enrollment charter school is
12-22 considered to be a local government for purposes of Subtitle C,
12-23 Title 6, Local Government Code, and Subchapter J, Chapter 441,
12-24 Government Code.
12-25 (b) Records of an open-enrollment charter school and records
12-26 of a charter holder that relate to an open-enrollment charter
12-27 school are government records for all purposes under state law.
13-1 (c) Any requirement in Subtitle C, Title 6, Local Government
13-2 Code, or Subchapter J, Chapter 441, Government Code, that applies
13-3 to a school district, the board of trustees of a school district,
13-4 or an officer or employee of a school district applies to an
13-5 open-enrollment charter school, the governing body of a charter
13-6 holder, the governing body of an open-enrollment charter school, or
13-7 an officer or employee of an open-enrollment charter school except
13-8 that the records of an open-enrollment charter school that ceases
13-9 to operate shall be transferred in the manner prescribed by
13-10 Subsection (d).
13-11 (d) The records of an open-enrollment charter school that
13-12 ceases to operate shall be transferred in the manner specified by
13-13 the commissioner to a custodian designated by the commissioner.
13-14 The commissioner may designate any appropriate entity to serve as
13-15 custodian, including the agency, a regional education service
13-16 center, or a school district. In designating a custodian, the
13-17 commissioner shall ensure that the transferred records, including
13-18 student and personnel records, are transferred to a custodian
13-19 capable of:
13-20 (1) maintaining the records;
13-21 (2) making the records readily accessible to students,
13-22 parents, former school employees, and other persons entitled to
13-23 access; and
13-24 (3) complying with applicable state or federal law
13-25 restricting access to the records.
13-26 (e) If the charter holder of an open-enrollment charter
13-27 school that ceases to operate or an officer or employee of such a
14-1 school refuses to transfer school records in the manner specified
14-2 by the commissioner under Subsection (d), the commissioner may ask
14-3 the attorney general to petition a court for recovery of the
14-4 records. If the court grants the petition, the court shall award
14-5 attorney's fees and court costs to the state.
14-6 Sec. 12.1053. APPLICABILITY OF LAWS RELATING TO PUBLIC
14-7 PURCHASING AND CONTRACTING. (a) An open-enrollment charter school
14-8 is considered to be:
14-9 (1) a governmental entity for purposes of:
14-10 (A) Subchapter D, Chapter 2252, Government Code;
14-11 and
14-12 (B) Subchapter B, Chapter 271, Local Government
14-13 Code;
14-14 (2) a political subdivision for purposes of Subchapter
14-15 A, Chapter 2254, Government Code; and
14-16 (3) a local government for purposes of Sections
14-17 2256.009-2256.016, Government Code.
14-18 (b) A member of the governing body of a charter holder, a
14-19 member of the governing body of an open-enrollment charter school,
14-20 or an officer of an open-enrollment charter school is considered to
14-21 be a local public official for purposes of Chapter 171, Local
14-22 Government Code. For purposes of that chapter:
14-23 (1) a member of the governing body of a charter holder
14-24 or a member of the governing body or officer of an open-enrollment
14-25 charter school is considered to have a substantial interest in a
14-26 business entity if a person related to the member or officer in the
14-27 third degree by consanguinity or affinity, as determined under
15-1 Chapter 573, Government Code, has a substantial interest in the
15-2 business entity under Section 171.002, Local Government Code; and
15-3 (2) a member of the governing body or officer of a
15-4 charter school rated as academically acceptable or higher under
15-5 Chapter 39 for each of the preceding three school years, or a
15-6 member of the governing body of the charter holder of such a
15-7 school, is not subject to the restrictions of Section 171.009,
15-8 Local Government Code.
15-9 (c) A requirement in a law listed in this section that
15-10 applies to a school district or the board of trustees of a school
15-11 district applies to an open-enrollment charter school, the
15-12 governing body of a charter holder, or the governing body of an
15-13 open-enrollment charter school.
15-14 Sec. 12.1054. IMMUNITY FROM LIABILITY. An open-enrollment
15-15 charter [(c) The] school is immune from liability to the same
15-16 extent as a school district, and its employees and volunteers are
15-17 immune from liability to the same extent as school district
15-18 employees and volunteers.
15-19 Sec. 12.1055. MEMBERSHIP IN TEACHER RETIREMENT SYSTEM OF
15-20 TEXAS. (a) [(d)] An employee of an open-enrollment charter school
15-21 or management company who qualifies for membership in the Teacher
15-22 Retirement System of Texas shall be covered under the system to the
15-23 same extent a qualified employee of a school district is covered.
15-24 (b) For each employee of the school or company covered under
15-25 the system, the charter holder or company [school] is responsible
15-26 for making any contribution that otherwise would be the legal
15-27 responsibility of the school district, and the state is responsible
16-1 for making contributions to the same extent it would be legally
16-2 responsible if the employee were a school district employee.
16-3 SECTION 11. Sections 12.106-12.108, Education Code, are
16-4 amended to read as follows:
16-5 Sec. 12.106. STATE FUNDING. (a) A charter holder is
16-6 entitled to receive for the open-enrollment charter school funding
16-7 under Chapter 42 as if the school were a school district without a
16-8 tier one local share for purposes of Section 42.253 and without any
16-9 local revenue ("LR") for purposes of Section 42.302. In
16-10 determining funding for an open-enrollment charter school,
16-11 adjustments under Sections 42.102, 42.103, 42.104, and 42.105 and
16-12 the district enrichment tax rate ("DTR") under Section 42.302 are
16-13 based on the average adjustment and average district enrichment tax
16-14 rate for the state.
16-15 (b) An open-enrollment charter school is entitled to funds
16-16 that are available to school districts from the agency or the
16-17 commissioner in the form of grants or other discretionary funding
16-18 unless the statute authorizing the funding explicitly provides that
16-19 open-enrollment charter schools are not entitled to the funding.
16-20 (c) Funds received by a charter holder under this section
16-21 after September 1, 2001:
16-22 (1) are considered to be public funds for all purposes
16-23 under state law;
16-24 (2) are held in trust by the charter holder for the
16-25 benefit of the students of the open-enrollment charter school;
16-26 (3) may be used only for a purpose for which a school
16-27 district may use local school funds under Section 45.105(c); and
17-1 (4) pending their use, must be deposited into a bank,
17-2 as defined by Section 45.201, as amended by Chapter 344, Acts of
17-3 the 76th Legislature, Regular Session, 1999, with which the charter
17-4 holder has entered into a depository contract.
17-5 (d) A charter holder shall deliver to the agency a copy of
17-6 the depository contract between the charter holder and a bank into
17-7 which state funds are deposited. [An open-enrollment charter school
17-8 is entitled to the distribution from the available school fund for
17-9 a student attending the open-enrollment charter school to which the
17-10 district in which the student resides would be entitled.]
17-11 [(b) A student attending an open-enrollment charter school
17-12 who is eligible under Section 42.003 is entitled to the benefits of
17-13 the Foundation School Program under Chapter 42. The commissioner
17-14 shall distribute from the foundation school fund to each school an
17-15 amount equal to the cost of a Foundation School Program provided by
17-16 the program for which the charter is granted as determined under
17-17 Section 42.251, including the transportation allotment under
17-18 Section 42.155, for the student that the district in which the
17-19 student resides would be entitled to, less an amount equal to the
17-20 sum of the school's tuition receipts under Section 12.107 plus the
17-21 school's distribution from the available school fund.]
17-22 Sec. 12.107. EFFECT OF ACCEPTING STATE FUNDING. (a) A
17-23 charter holder who accepts state funds under Section 12.106 after
17-24 the effective date of a provision of this subchapter agrees to be
17-25 subject to that provision, regardless of the date on which the
17-26 charter holder's charter was granted.
17-27 (b) A charter holder who accepts state funds under Section
18-1 12.106 after September 1, 2001, agrees to accept all liability
18-2 under this subchapter for any funds accepted under that section
18-3 before September 1, 2001. This subsection does not create
18-4 liability for charter holder conduct occurring before September 1,
18-5 2001. [LOCAL FUNDING. (a) Except as provided by Subsection (b),
18-6 an open-enrollment charter school is entitled to receive tuition
18-7 from the school district in which a student attending the school
18-8 resides in an amount equal to the quotient of the tax revenue
18-9 collected by the school district for maintenance and operations for
18-10 the school year for which tuition is being paid divided by the sum
18-11 of the number of students enrolled in the district as reported in
18-12 the Public Education Information Management System (PEIMS),
18-13 including the number of students for whom the district is required
18-14 to pay tuition.]
18-15 [(b) The tuition to be paid under Subsection (a) by a school
18-16 district with a wealth per student that exceeds the equalized
18-17 wealth level under Chapter 41 shall be based on the district's tax
18-18 revenue after the district has acted to achieve the equalized
18-19 wealth level under Chapter 41.]
18-20 Sec. 12.108. TUITION AND FEES RESTRICTED. (a) An [Except
18-21 as provided by Section 12.106, an] open-enrollment charter school
18-22 may not charge tuition to an eligible student who applies under
18-23 Section 12.117.
18-24 (b) The governing body of an open-enrollment charter school
18-25 may require a student to pay any fee that the board of trustees of
18-26 a school district may charge under Section 11.158(a). The
18-27 governing body may not require a student to pay a fee that the
19-1 board of trustees of a school district may not charge under Section
19-2 11.158(b).
19-3 SECTION 12. Sections 12.110(a)-(c), Education Code, are
19-4 amended to read as follows:
19-5 (a) The State Board of Education shall adopt:
19-6 (1) an application form and a procedure that must be
19-7 used to apply for a charter for an open-enrollment charter school
19-8 or a renewal of a charter; and
19-9 (2) criteria to use in selecting a program for which
19-10 to grant a charter.
19-11 (b) The application form for a charter or renewal of a
19-12 charter must provide for including:
19-13 (1) the information required under Section 12.111 to
19-14 be contained in a charter;
19-15 (2) a description of the program to be provided during
19-16 a typical school day that includes the number of hours each day the
19-17 program will operate; and
19-18 (3) a description of the types of instructional
19-19 approaches to be used.
19-20 (c) As part of the application procedure for a charter for a
19-21 new open-enrollment charter school, the board may require a
19-22 petition supporting the [a] charter [for a school] signed by a
19-23 specified number of parents or guardians of school-age children
19-24 residing in the area in which a school is proposed or may hold a
19-25 public hearing to determine parental support for the school.
19-26 SECTION 13. Section 12.111, Education Code, is amended to
19-27 read as follows:
20-1 Sec. 12.111. CONTENT. Each charter granted under this
20-2 subchapter must:
20-3 (1) describe the educational program to be offered,
20-4 which must include the required curriculum as provided by Section
20-5 28.002;
20-6 (2) specify the period for which the charter or any
20-7 charter renewal is valid;
20-8 (3) provide that continuation or renewal of the
20-9 charter is contingent on acceptable student performance on
20-10 assessment instruments adopted under Subchapter B, Chapter 39, and
20-11 on compliance with any accountability provision specified by the
20-12 charter, by a deadline or at intervals specified by the charter;
20-13 (4) establish the level of student performance that is
20-14 considered acceptable for purposes of Subdivision (3);
20-15 (5) specify any basis, in addition to a basis
20-16 specified by this subchapter, on which the charter may be placed on
20-17 probation or revoked or on which renewal of the charter may be
20-18 denied;
20-19 (6) prohibit discrimination in admission policy on the
20-20 basis of sex, national origin, ethnicity, religion, disability,
20-21 academic, artistic, or athletic ability, or the district the child
20-22 would otherwise attend in accordance with this code, although the
20-23 charter may provide for the exclusion of a student who has a
20-24 documented history of a criminal offense, a juvenile court
20-25 adjudication, or discipline problems under Subchapter A, Chapter
20-26 37;
20-27 (7) specify the grade levels to be offered;
21-1 (8) describe the governing structure of the program,
21-2 including:
21-3 (A) the officer positions designated;
21-4 (B) the manner in which officers are selected
21-5 and removed from office;
21-6 (C) the manner in which members of the governing
21-7 body of the school are selected and removed from office;
21-8 (D) the manner in which vacancies on that [the]
21-9 governing body [board] are filled;
21-10 (E) the term for which members of that [the]
21-11 governing body serve; and
21-12 (F) whether the terms are to be staggered;
21-13 (9) specify the powers or duties of the governing body
21-14 of the school that the governing body may delegate to an officer;
21-15 (10) specify the manner in which the school will
21-16 distribute to parents information related to the qualifications of
21-17 each [to be met by] professional employee [employees] of the
21-18 program, including any professional or educational degree held by
21-19 each employee, a statement of any certification under Subchapter B,
21-20 Chapter 21, held by each employee, and any relevant experience of
21-21 each employee;
21-22 (11) [(10)] describe the process by which the person
21-23 providing the program will adopt an annual budget;
21-24 (12) [(11)] describe the manner in which an annual
21-25 audit of the financial and programmatic operations of the program
21-26 is to be conducted, including the manner in which the person
21-27 providing the program will provide information necessary for the
22-1 school district in which the program is located to participate, as
22-2 required by this code or by State Board of Education rule, in the
22-3 Public Education Information Management System (PEIMS);
22-4 (13) [(12)] describe the facilities to be used;
22-5 (14) [(13)] describe the geographical area served by
22-6 the program; and
22-7 (15) [(14)] specify any type of enrollment criteria to
22-8 be used.
22-9 SECTION 14. Section 12.113, Education Code, is amended to
22-10 read as follows:
22-11 Sec. 12.113. CHARTER GRANTED. (a) Each charter the State
22-12 Board of Education grants for an open-enrollment charter school
22-13 must:
22-14 (1) satisfy this subchapter; and
22-15 (2) include the information that is required under
22-16 Section 12.111 consistent with the information provided in the
22-17 application and any modification the board requires.
22-18 (b) The grant of a charter under this subchapter does not
22-19 create an entitlement to a renewal of a charter on the same terms
22-20 as it was originally issued.
22-21 SECTION 15. Section 12.114, Education Code, is amended to
22-22 read as follows:
22-23 Sec. 12.114. REVISION. (a) A revision of a charter of an
22-24 open-enrollment charter school may be made only with the approval
22-25 of the State Board of Education.
22-26 (b) A charter holder must comply with Subsection (c) to
22-27 obtain approval of a revision of the charter for an open-enrollment
23-1 charter school if the revision authorizes the school to:
23-2 (1) expand to additional campuses or sites beyond the
23-3 campuses or sites stated in the charter;
23-4 (2) increase grade levels beyond the levels stated in
23-5 the charter; or
23-6 (3) increase enrollment beyond the maximum enrollment
23-7 stated in the charter.
23-8 (c) For approval of a revision described by Subsection (b):
23-9 (1) a charter holder must submit an application for
23-10 approval in a form approved by the State Board of Education; and
23-11 (2) the State Board of Education must interview
23-12 appropriate school representatives in connection with the
23-13 application and take all other action necessary to thoroughly
23-14 review the application.
23-15 (d) Notwithstanding any other provision of this section, the
23-16 State Board of Education may not approve a revision of the charter
23-17 of an open-enrollment charter school not rated as academically
23-18 acceptable or higher under Chapter 39 for each of the preceding
23-19 three school years that contains a revision described by Subsection
23-20 (b)(1). This subsection expires September 1, 2003.
23-21 SECTION 16. Section 12.115(a), Education Code, is amended to
23-22 read as follows:
23-23 (a) The State Board of Education may modify, place on
23-24 probation, revoke, or deny renewal of the charter of an
23-25 open-enrollment charter school if the board determines that the
23-26 charter holder [person operating the school]:
23-27 (1) committed a material violation of the charter,
24-1 including failure to satisfy accountability provisions prescribed
24-2 by the charter;
24-3 (2) failed to satisfy generally accepted accounting
24-4 standards of fiscal management;
24-5 (3) failed to protect the health, safety, or welfare
24-6 of the students enrolled at the school; or
24-7 (4) [(3)] failed to comply with this subchapter or
24-8 another applicable law or rule.
24-9 SECTION 17. Section 12.116, Education Code, is amended by
24-10 amending Subsection (b) and adding Subsection (c) to read as
24-11 follows:
24-12 (b) The procedure adopted under Subsection (a) must provide
24-13 an opportunity for a hearing to the charter holder [person
24-14 operating the open-enrollment charter school] and to parents and
24-15 guardians of students in the school. A hearing under this
24-16 subsection must be held at the facility at which the program is
24-17 operated.
24-18 (c) Chapter 2001, Government Code, does not apply to a
24-19 hearing that is related to a modification, placement on probation,
24-20 revocation, or denial of renewal under this subchapter.
24-21 SECTION 18. Subchapter D, Chapter 12, Education Code, is
24-22 amended by adding Sections 12.1161 and 12.1162 to read as follows:
24-23 Sec. 12.1161. EFFECT OF REVOCATION, DENIAL OF RENEWAL, OR
24-24 SURRENDER OF CHARTER. (a) Except as provided by Subsection (b), if
24-25 the State Board of Education revokes or denies the renewal of a
24-26 charter of an open-enrollment charter school, or if an
24-27 open-enrollment charter school surrenders its charter, the school
25-1 may not:
25-2 (1) continue to operate under this subchapter; or
25-3 (2) receive state funds under this subchapter.
25-4 (b) An open-enrollment charter school may continue to
25-5 operate and receive state funds under this subchapter for the
25-6 remainder of a school year if the board denies renewal of the
25-7 school's charter before the completion of that school year.
25-8 Sec. 12.1162. EMERGENCY SUSPENSION. (a) The commissioner
25-9 may temporarily withhold funding, suspend the authority of an
25-10 open-enrollment charter school to operate, or take any other
25-11 reasonable action the commissioner determines necessary to protect
25-12 the health, safety, or welfare of the students enrolled at the
25-13 school based on evidence that conditions at the school present a
25-14 danger to the health, safety, or welfare of students.
25-15 (b) After the commissioner imposes a suspension under this
25-16 section, the open-enrollment charter school may not receive funding
25-17 and may not resume operating until a determination is made by the
25-18 commissioner or the State Board of Education that:
25-19 (1) despite initial evidence, the conditions at the
25-20 school do not present a danger to the health, safety, or welfare of
25-21 students; or
25-22 (2) the conditions at the school that presented a
25-23 danger to the health, safety, or welfare of students have been
25-24 corrected.
25-25 (c) Not later than the third business day after the date the
25-26 commissioner imposes a suspension under this section, the
25-27 commissioner shall provide an opportunity for a hearing to the
26-1 holder of the charter of the open-enrollment charter school.
26-2 (d) If the commissioner does not lift the suspension imposed
26-3 under this section, the State Board of Education shall consider the
26-4 suspension at the first regularly scheduled meeting of the board
26-5 that occurs after the date the suspension is imposed. At that
26-6 meeting the board must lift the suspension or take action under
26-7 Section 12.116.
26-8 (e) Chapter 2001, Government Code, does not apply to a
26-9 suspension under this section.
26-10 SECTION 19. Section 12.117, Education Code, is amended to
26-11 read as follows:
26-12 Sec. 12.117. [APPLICATION FOR] ADMISSION. (a) For
26-13 admission to an open-enrollment charter school, the governing body
26-14 of [person operating] the school shall:
26-15 (1) [may] require the applicant to complete and submit
26-16 an application not later than a reasonable deadline the school
26-17 establishes; and
26-18 (2) on receipt of more acceptable applications for
26-19 admission under this section than available positions in the
26-20 school:
26-21 (A) fill the available positions by lottery; or
26-22 (B) subject to Subsection (b), fill the
26-23 available positions in the order in which applications received
26-24 before the application deadline were received.
26-25 (b) An open-enrollment charter school may fill applications
26-26 for admission under Subsection (a)(2)(B) only if the school
26-27 published a notice of the opportunity to apply for admission to the
27-1 school. A notice published under this subsection must:
27-2 (1) state the application deadline; and
27-3 (2) be published in a newspaper of general circulation
27-4 in the community in which the school is located not later than the
27-5 seventh day before the application deadline.
27-6 SECTION 20. Section 12.118, Education Code, is amended by
27-7 amending Subsections (a) and (c) and adding Subsections (d) and (e)
27-8 to read as follows:
27-9 (a) The State Board of Education [board] shall designate an
27-10 impartial organization with experience in evaluating school choice
27-11 programs to conduct an annual evaluation of open-enrollment charter
27-12 schools.
27-13 (c) The evaluation of open-enrollment charter schools must
27-14 also include an evaluation of:
27-15 (1) the costs of instruction, administration, and
27-16 transportation incurred by open-enrollment charter schools; [and]
27-17 (2) whether school district or school campus employees
27-18 are informing students at risk of dropping out of school of the
27-19 opportunity to attend an open-enrollment charter school for the
27-20 purpose of enabling the district or campus to avoid responsibility
27-21 for those students; and
27-22 (3) the effect of open-enrollment charter schools on
27-23 school districts and on teachers, students, and parents in those
27-24 districts.
27-25 (d) The evaluation of an open-enrollment charter school that
27-26 assists students in earning a high school diploma or high school
27-27 equivalency certificate must also include an evaluation of:
28-1 (1) the quality of the educational program offered;
28-2 (2) the number of hours each school day the
28-3 educational program is provided to a student;
28-4 (3) class size and the student/teacher ratio;
28-5 (4) student success in earning a high school diploma;
28-6 and
28-7 (5) student success in earning a high school
28-8 equivalency certificate.
28-9 (e) For purposes of this section, "student at risk of
28-10 dropping out of school" has the meaning assigned by Section 29.081.
28-11 SECTION 21. Subchapter D, Chapter 12, Education Code, is
28-12 amended by adding Sections 12.1181 and 12.1182 to read as follows:
28-13 Sec. 12.1181. STUDY OF CHARTER SCHOOL INNOVATION. (a) The
28-14 agency shall study the instructional methods of open-enrollment
28-15 charter schools to determine:
28-16 (1) the extent to which those schools are using
28-17 innovative educational concepts; and
28-18 (2) whether any innovative educational concepts used
28-19 by those schools have resulted in improvements in:
28-20 (A) students' performance on assessment
28-21 instruments administered under Subchapter B, Chapter 39;
28-22 (B) student attendance; or
28-23 (C) students' grades.
28-24 (b) The agency shall include the results of the study
28-25 conducted under this section in the report required under Section
28-26 39.182 that is due not later than December 1, 2002.
28-27 (c) This section expires January 31, 2003.
29-1 Sec. 12.1182. STUDY OF PROCEDURES FOR OBTAINING INFORMATION
29-2 FROM CHARTER SCHOOLS. (a) The agency shall study the procedures by
29-3 which the agency obtains information regarding the performance of
29-4 open-enrollment charter schools, including information regarding
29-5 the number of students attending those schools and the performance
29-6 of those students and schools under the accountability system
29-7 established by Subchapters B, C, D, and G, Chapter 39.
29-8 (b) In conducting the study, the agency shall:
29-9 (1) focus on the extent to which the existing
29-10 procedures for obtaining information results in current data that
29-11 is sufficient to permit effective and timely oversight of
29-12 open-enrollment charter schools;
29-13 (2) solicit comments and suggestions from persons
29-14 involved or otherwise interested in the operation of
29-15 open-enrollment charter schools; and
29-16 (3) develop recommendations for modifications in the
29-17 procedures for obtaining information, including any recommendations
29-18 requiring legislative action, that would improve the agency's
29-19 ability to obtain current information regarding open-enrollment
29-20 charter schools.
29-21 (c) The agency shall include the results of the study
29-22 conducted under this section and the agency's recommendations
29-23 resulting from the study in the report required under Section
29-24 39.182 that is due not later than December 1, 2002.
29-25 (d) This section expires January 1, 2003.
29-26 SECTION 22. Section 12.119(a), Education Code, is amended to
29-27 read as follows:
30-1 (a) A charter holder [The entity to which a charter is
30-2 granted for an open-enrollment charter school] shall file with the
30-3 State Board of Education a copy of its articles of incorporation
30-4 and bylaws, or [a] comparable documents [document] if the charter
30-5 holder [entity] does not have articles of incorporation or bylaws,
30-6 within the period and in the manner prescribed by the board.
30-7 SECTION 23. Section 12.120, Education Code, is amended to
30-8 read as follows:
30-9 Sec. 12.120. RESTRICTIONS [LIMITATION] ON SERVING AS MEMBER
30-10 OF GOVERNING BODY OF CHARTER HOLDER, OFFICER, OR EMPLOYEE. (a) A
30-11 person may not serve as a member of the governing body of a charter
30-12 holder or as an officer or employee of an open-enrollment charter
30-13 school if:
30-14 (1) the person [who] has been convicted of a felony or
30-15 a misdemeanor involving moral turpitude; or
30-16 (2) the person or the person's spouse has a
30-17 substantial interest in a management company.
30-18 (b) For purposes of Subsection (a)(2), a person has a
30-19 substantial interest in a management company if the person:
30-20 (1) has a controlling interest in the company;
30-21 (2) owns more than 10 percent of the voting interest
30-22 in the company;
30-23 (3) owns more than $25,000 of the fair market value of
30-24 the company;
30-25 (4) has a direct or indirect participating interest by
30-26 shares, stock, or otherwise, regardless of whether voting rights
30-27 are included, in more than 10 percent of the profits, proceeds, or
31-1 capital gains of the company;
31-2 (5) is a member of the board of directors or other
31-3 governing body of the company;
31-4 (6) serves as an elected officer of the company; or
31-5 (7) is an employee of the company [may not serve as an
31-6 officer or member of the governing body of an open-enrollment
31-7 charter school].
31-8 SECTION 24. Subchapter D, Chapter 12, Education Code, is
31-9 amended by adding Sections 12.121-12.1281 to read as follows:
31-10 Sec. 12.121. GENERAL POWERS AND DUTIES OF GOVERNING BODY OF
31-11 SCHOOL. (a) The governing body of an open-enrollment charter
31-12 school as a body corporate shall:
31-13 (1) govern and oversee the management of the school,
31-14 including the use of state funds received under Section 12.106;
31-15 (2) if the governing body determines that contracting
31-16 with a management company for the management of the school is
31-17 necessary and desirable, enter into a contract for management
31-18 services, subject to Section 12.125;
31-19 (3) select, determine the compensation of, evaluate
31-20 the performance of, and, if necessary, terminate the employment of
31-21 the principal, director, or other chief operating officer of the
31-22 school;
31-23 (4) approve the employment, compensation, promotion,
31-24 demotion, or termination of employment of other professional
31-25 employees of the school;
31-26 (5) adopt and amend a budget for each school year and
31-27 ensure that funds received under Section 12.106 are spent only as
32-1 provided for in the budget;
32-2 (6) ensure that the school complies with Subchapters
32-3 A, B, and E, Chapter 29; and
32-4 (7) select textbooks for the school as required by
32-5 Section 31.101.
32-6 (b) Except as provided by Section 12.111(9), the governing
32-7 body of an open-enrollment charter school may not delegate the
32-8 governing body's powers and duties under this subchapter to another
32-9 person.
32-10 (c) The governing body of an open-enrollment charter school
32-11 shall provide for appeals to the governing body or its designee
32-12 concerning student expulsions.
32-13 Sec. 12.122. LIABILITY OF MEMBERS OF GOVERNING BODY OF
32-14 CHARTER HOLDER AND MEMBER OF GOVERNING BODY OF SCHOOL. (a)
32-15 Notwithstanding the Texas Non-Profit Corporation Act (Article
32-16 1396-1.01 et seq., Vernon's Texas Civil Statutes) or other law, a
32-17 member of the governing body of a charter holder or a member of the
32-18 governing body of an open-enrollment charter school is personally
32-19 liable for:
32-20 (1) a misapplication of state funds received by the
32-21 charter holder under Section 12.106, including any use of the funds
32-22 that results in an improper personal benefit for the member; and
32-23 (2) a misapplication of property purchased or leased
32-24 with state funds received by the charter holder under Section
32-25 12.106, including any use of the property that results in an
32-26 improper personal benefit for the member.
32-27 (b) If a charter holder receives state funds under Section
33-1 12.106 after September 1, 2001, a member of the governing body of
33-2 the charter holder or a member of the governing body of the school
33-3 who serves in that capacity after September 1, 2001, accepts the
33-4 liability imposed by Subsection (a) as to any state funds accepted
33-5 under Section 12.106 during the person's service on the governing
33-6 body.
33-7 (c) In approving or agreeing to the use of state funds, a
33-8 member of the governing body of a charter holder or a member of the
33-9 governing body of an open-enrollment charter school is not liable
33-10 under this section if the member relied in good faith on the advice
33-11 of legal counsel that the use was authorized under Section
33-12 12.106(c)(3).
33-13 (d) A person held liable under this section is entitled to
33-14 contribution from any other person who knowingly accepted or
33-15 received funds in violation of this chapter, in proportion to the
33-16 amount of funds accepted or received by that person.
33-17 Sec. 12.123. TRAINING FOR MEMBERS OF GOVERNING BODY OF
33-18 SCHOOL AND OFFICERS. (a) The State Board of Education shall adopt
33-19 rules prescribing training for:
33-20 (1) members of governing bodies of open-enrollment
33-21 charter schools; and
33-22 (2) officers of open-enrollment charter schools.
33-23 (b) The rules adopted under Subsection (a) must:
33-24 (1) specify the minimum amount and frequency of the
33-25 training;
33-26 (2) require the training to be provided by:
33-27 (A) the agency and regional education service
34-1 centers;
34-2 (B) entities other than the agency and service
34-3 centers, subject to approval by the board; or
34-4 (C) both the agency, service centers, and other
34-5 entities;
34-6 (3) require training to be provided concerning:
34-7 (A) basic school law, including school finance;
34-8 (B) health and safety issues;
34-9 (C) accountability requirements related to the
34-10 use of public funds; and
34-11 (D) other requirements relating to
34-12 accountability to the public, such as open meetings requirements
34-13 under Chapter 551, Government Code, and public information
34-14 requirements under Chapter 552, Government Code; and
34-15 (4) require reporting to the agency to permit the
34-16 agency to monitor compliance with this section.
34-17 (c) A person described by Subsection (a) must complete the
34-18 minimum training required by rules adopted under Subsection (a).
34-19 (d) If a person described by Subsection (a) does not
34-20 complete the minimum training, the State Board of Education shall
34-21 direct the charter holder to remove the person failing to complete
34-22 the training or terminate that person's employment. If the person
34-23 is not removed or the person's employment is not terminated, the
34-24 board shall place on probation or revoke the school's charter as
34-25 provided by Sections 12.115 and 12.116.
34-26 Sec. 12.124. LOANS FROM MANAGEMENT COMPANY PROHIBITED. (a)
34-27 The charter holder or the governing body of an open-enrollment
35-1 charter school may not accept a loan from a management company that
35-2 has a contract to provide management services to:
35-3 (1) that charter school; or
35-4 (2) another charter school that operates under a
35-5 charter granted to the charter holder.
35-6 (b) A charter holder or the governing body of an
35-7 open-enrollment charter school that accepts a loan from a
35-8 management company may not enter into a contract with that
35-9 management company to provide management services to the school.
35-10 Sec. 12.125. APPROVAL OF MANAGEMENT CONTRACT. (a) An
35-11 open-enrollment charter school shall submit to the commissioner for
35-12 approval any proposed contract, including a contract renewal,
35-13 between the school and a management company proposing to provide
35-14 management services to the school. The contract may not take
35-15 effect until approved by the commissioner.
35-16 (b) The commissioner shall adopt criteria to use in
35-17 determining whether to approve a contract submitted under this
35-18 section. The criteria must require a management company to
35-19 demonstrate that the company:
35-20 (1) possesses substantial experience and expertise
35-21 relevant to providing management services in an educational
35-22 setting;
35-23 (2) has a reliable record of providing management
35-24 services in an educational setting, without:
35-25 (A) a previous denial of approval, denial of
35-26 renewal, suspension, or revocation of a contract under Subsection
35-27 (d), provided that the contract was held by a management company
36-1 managed in whole or in part by the company; or
36-2 (B) unjustified failures to provide services in
36-3 compliance with a contractual or other legal obligation to any
36-4 open-enrollment charter school in this state or to any other
36-5 similar school in another state;
36-6 (3) has the personnel, financial assets, and other
36-7 resources necessary to enable the company to provide high-quality,
36-8 reliable management services to an open-enrollment charter school;
36-9 and
36-10 (4) does not employ a person the commissioner finds to
36-11 have engaged in conduct described by Subsection (d).
36-12 (c) As provided by Section 12.107, if a charter holder
36-13 receives state funds under Section 12.106 after September 1, 2001,
36-14 a contract to provide management services to an open-enrollment
36-15 charter school for the 2001-2002 or a later school year that was
36-16 executed before September 1, 2001, has no effect for the 2001-2002
36-17 or a later school year unless the contract is approved as provided
36-18 by this section.
36-19 (d) The commissioner may deny approval of, deny renewal of,
36-20 suspend, or revoke a contract if the management company:
36-21 (1) fails to provide educational or related services
36-22 in compliance with the company's contractual or other legal
36-23 obligation to any open-enrollment charter school in this state or
36-24 to any other similar school in another state;
36-25 (2) fails to protect the health, safety, or welfare of
36-26 the students enrolled at an open-enrollment charter school served
36-27 by the company, as determined by the commissioner;
37-1 (3) violates this subchapter or a rule adopted under
37-2 this subchapter;
37-3 (4) engages in conduct that could result in action
37-4 under Sections 12.115 and 12.116;
37-5 (5) refuses, after reasonable notice, to meet
37-6 reasonable health and safety requirements within the company's
37-7 control and made known to the company by a federal or state agency
37-8 or by a political subdivision of this state; or
37-9 (6) compromises a charter school's eligibility under
37-10 Section 12.101(a)(3).
37-11 (e) The commissioner shall adopt rules to administer this
37-12 section.
37-13 (f) A management contract approved by the commissioner under
37-14 this section is not assignable.
37-15 Sec. 12.126. LIABILITY OF MANAGEMENT COMPANY. (a) A
37-16 management company that provides management services to an
37-17 open-enrollment charter school is liable for damages incurred by
37-18 the state or an affected school district as a result of the failure
37-19 of the company to comply with its contractual or other legal
37-20 obligation to provide services to the school.
37-21 (b) On request of the State Board of Education, the attorney
37-22 general may bring suit on behalf of the state or any affected
37-23 school district against a management company liable under
37-24 Subsection (a) for:
37-25 (1) damages, including any state funding received by
37-26 the company and any consequential damages suffered by the state or
37-27 affected school district;
38-1 (2) injunctive relief; or
38-2 (3) any other equitable remedy determined to be
38-3 appropriate by the court.
38-4 (c) With the approval of the attorney general, an affected
38-5 school district may participate in a suit brought by the attorney
38-6 general under Subsection (b). An affected school district is not
38-7 entitled to bring suit on its own behalf against a management
38-8 company liable under Subsection (a).
38-9 (d) This section is cumulative of all other remedies and
38-10 does not affect:
38-11 (1) the liability of a management company to the
38-12 charter holder; or
38-13 (2) the liability of a charter holder, a member of the
38-14 governing body of a charter holder, or a member of the governing
38-15 body of an open-enrollment charter school to the state.
38-16 Sec. 12.127. PROPERTY PURCHASED OR LEASED WITH STATE FUNDS.
38-17 (a) Property purchased or leased with funds received by a charter
38-18 holder under Section 12.106 after September 1, 2001:
38-19 (1) is considered to be public property for all
38-20 purposes under state law;
38-21 (2) is held in trust by the charter holder for the
38-22 benefit of the students of the open-enrollment charter school; and
38-23 (3) may be used only for a purpose for which a school
38-24 district may use school district property.
38-25 (b) If at least 50 percent of the funds used by a charter
38-26 holder to purchase real property are funds received under Section
38-27 12.106 before September 1, 2001, the property is considered to be
39-1 public property to the extent it was purchased with those funds.
39-2 (c) The commissioner shall:
39-3 (1) take possession and assume control of the property
39-4 described by Subsection (a) of an open-enrollment charter school
39-5 that ceases to operate; and
39-6 (2) supervise the disposition of the property in
39-7 accordance with law.
39-8 (d) The commissioner may adopt rules necessary to administer
39-9 this section.
39-10 (e) This section does not affect a security interest in or
39-11 lien on property established by a creditor in compliance with law
39-12 if the security interest or lien arose in connection with the sale
39-13 or lease of the property to the charter holder.
39-14 Sec. 12.128. MINIMUM TEACHER QUALIFICATIONS. (a) A person
39-15 employed as a teacher by an open-enrollment charter school must
39-16 hold a high school diploma or high school equivalency certificate.
39-17 (b) Unless otherwise approved by the commissioner, a person
39-18 employed as a teacher by an open-enrollment charter school and
39-19 assigned to teach a subject in the foundation curriculum under
39-20 Section 28.002(a)(1) must hold:
39-21 (1) a bachelor's or more advanced degree from an
39-22 institution of higher education; or
39-23 (2) a teaching certificate from an institution
39-24 equivalent to an institution of higher education that offers
39-25 recognized teaching certification.
39-26 Sec. 12.1281. EXCEPTION TO MINIMUM TEACHER QUALIFICATIONS.
39-27 (a) Notwithstanding Section 12.128(b), a person employed as a
40-1 teacher by an open-enrollment charter school during the 2000-2001
40-2 school year is not required to hold a bachelor's or more advanced
40-3 degree for employment as a teacher by an open-enrollment charter
40-4 school to teach a subject in the foundation curriculum under
40-5 Section 28.002(a)(1) if:
40-6 (1) the person is employed under a contract that
40-7 guarantees the person the right to remain employed for the
40-8 2001-2002 or a later school year;
40-9 (2) the person holds a high school diploma or high
40-10 school equivalency certificate;
40-11 (3) not later than January 1, 2002, the person enrolls
40-12 in an institution of higher education in a program under which the
40-13 person will obtain a bachelor's degree not later than June 30,
40-14 2007;
40-15 (4) the person makes satisfactory progress in the
40-16 program described by Subdivision (3); and
40-17 (5) the person obtains a bachelor's degree not later
40-18 than June 30, 2007.
40-19 (b) This section expires July 1, 2007.
40-20 SECTION 25. Section 22.083, Education Code, is amended to
40-21 read as follows:
40-22 Sec. 22.083. ACCESS TO CRIMINAL HISTORY RECORDS BY LOCAL AND
40-23 REGIONAL EDUCATION AUTHORITIES. (a) A school district,
40-24 [open-enrollment charter school,] private school, regional
40-25 education service center, or shared services arrangement may obtain
40-26 from any law enforcement or criminal justice agency all criminal
40-27 history record information that relates to a person:
41-1 (1) whom the district, school, service center, or
41-2 shared services arrangement intends to employ in any capacity; or
41-3 (2) who has indicated, in writing, an intention to
41-4 serve as a volunteer with the district, school, service center, or
41-5 shared services arrangement.
41-6 (b) An open-enrollment charter school shall obtain from any
41-7 law enforcement or criminal justice agency all criminal history
41-8 record information that relates to:
41-9 (1) a person whom the school intends to employ in a
41-10 capacity described by Section 21.003(a) and who does not hold a
41-11 certificate issued under Subchapter B, Chapter 21; and
41-12 (2) a person who serves as or agrees to serve as a
41-13 member of the governing body of the school.
41-14 (c) An open-enrollment charter school may obtain from any
41-15 law enforcement or criminal justice agency all criminal history
41-16 record information that relates to a person:
41-17 (1) whom the school intends to employ in a capacity
41-18 other than a capacity described by Section 21.003(a); or
41-19 (2) who has indicated, in writing, an intention to
41-20 serve as a volunteer with the school.
41-21 (d) A school district, open-enrollment charter school,
41-22 private school, regional education service center, or shared
41-23 services arrangement may obtain from any law enforcement or
41-24 criminal justice agency all criminal history record information
41-25 that relates to:
41-26 (1) a volunteer or employee of the district, school,
41-27 service center, or shared services arrangement; or
42-1 (2) an employee of or applicant for employment by a
42-2 person that contracts with the district, school, service center, or
42-3 shared services arrangement to provide services, if:
42-4 (A) the employee or applicant has or will have
42-5 continuing duties related to the contracted services; and
42-6 (B) the duties are or will be performed on
42-7 school property or at another location where students are regularly
42-8 present.
42-9 (e) [(c)] The superintendent of a district or the director
42-10 of an open-enrollment charter school, private school, regional
42-11 education service center, or shared services arrangement shall
42-12 promptly notify the State Board for Educator Certification in
42-13 writing if the person obtains or has knowledge of information
42-14 showing that an applicant for or holder of a certificate issued
42-15 under Subchapter B, Chapter 21, has a reported criminal history.
42-16 SECTION 26. Section 25.088, Education Code, is amended to
42-17 read as follows:
42-18 Sec. 25.088. SCHOOL ATTENDANCE OFFICER. The school
42-19 attendance officer may be selected by:
42-20 (1) the county school trustees of any county; [or]
42-21 (2) the board of trustees of any school district or
42-22 the boards of trustees of two or more school districts jointly; or
42-23 (3) the governing body of an open-enrollment charter
42-24 school.
42-25 SECTION 27. Section 25.089(a), Education Code, is amended to
42-26 read as follows:
42-27 (a) An attendance officer may be compensated from the funds
43-1 of the county, [or the] independent school district, or
43-2 open-enrollment charter school, as applicable.
43-3 SECTION 28. Section 25.090, Education Code, is amended to
43-4 read as follows:
43-5 Sec. 25.090. ATTENDANCE OFFICER NOT SELECTED. (a) In those
43-6 counties and independent school districts where an attendance
43-7 officer has not been selected, the duties of attendance officer
43-8 shall be performed by the school superintendents and peace officers
43-9 of the counties and districts.
43-10 (b) If the governing body of an open-enrollment charter
43-11 school has not selected an attendance officer, the duties of
43-12 attendance officer shall be performed by the peace officers of the
43-13 county in which the school is located.
43-14 (c) Additional compensation may not be paid for [the]
43-15 services performed under this section.
43-16 SECTION 29. Sections 25.093(f) and (g), Education Code, are
43-17 amended to read as follows:
43-18 (f) A fine collected under this section shall be deposited
43-19 as follows:
43-20 (1) one-half shall be deposited to the credit of the
43-21 operating fund of, as applicable:
43-22 (A) the school district in which the child
43-23 attends school;
43-24 (B) the open-enrollment charter school the child
43-25 attends; or
43-26 (C) [of] the juvenile justice alternative
43-27 education program that the child has been ordered to attend[, as
44-1 applicable]; and
44-2 (2) one-half shall be deposited to the credit of:
44-3 (A) the general fund of the county, if the
44-4 complaint is filed in the county court or justice court; or
44-5 (B) the general fund of the municipality, if the
44-6 complaint is filed in municipal court.
44-7 (g) At the trial of any person charged with violating this
44-8 section, the attendance records of the child may be presented in
44-9 court by any authorized employee of the school district or
44-10 open-enrollment charter school, as applicable.
44-11 SECTION 30. Section 25.095(a), Education Code, is amended to
44-12 read as follows:
44-13 (a) A school district or open-enrollment charter school
44-14 shall notify a student's parent in writing if, in a six-month
44-15 period, the student has been absent without an excuse five times
44-16 for any part of the day. The notice must state that if the student
44-17 is absent without an excuse for 10 or more days or parts of days in
44-18 a six-month period:
44-19 (1) the student's parent is subject to prosecution
44-20 under Section 25.093; and
44-21 (2) the student is subject to prosecution under
44-22 Section 25.094.
44-23 SECTION 31. Section 39.075(a), Education Code, is amended to
44-24 read as follows:
44-25 (a) The commissioner shall authorize special accreditation
44-26 investigations to be conducted under the following circumstances:
44-27 (1) when excessive numbers of absences of students
45-1 eligible to be tested on state assessment instruments are
45-2 determined;
45-3 (2) when excessive numbers of allowable exemptions
45-4 from the required state assessment are determined;
45-5 (3) in response to complaints submitted to the agency
45-6 with respect to alleged violations of civil rights or other
45-7 requirements imposed on the state by federal law or court order;
45-8 (4) in response to established compliance reviews of
45-9 the district's financial accounting practices and state and federal
45-10 program requirements;
45-11 (5) when extraordinary numbers of student placements
45-12 in alternative education programs, other than placements under
45-13 Sections 37.006 and 37.007, are determined; [or]
45-14 (6) in response to an allegation involving a conflict
45-15 between members of the board of trustees or between the board and
45-16 the district administration if it appears that the conflict
45-17 involves a violation of a role or duty of the board members or the
45-18 administration clearly defined by this code; or
45-19 (7) in response to an allegation that school district
45-20 or school campus employees are informing students at risk of
45-21 dropping out of school, as defined by Section 29.081, of the
45-22 opportunity to attend an open-enrollment charter school for the
45-23 purpose of enabling the district or campus to avoid responsibility
45-24 for those students.
45-25 SECTION 32. Subchapter A, Chapter 46, Education Code, is
45-26 amended by adding Section 46.012 to read as follows:
45-27 Sec. 46.012. APPLICABILITY TO OPEN-ENROLLMENT CHARTER
46-1 SCHOOLS. An open-enrollment charter school is not entitled to an
46-2 allotment under this subchapter.
46-3 SECTION 33. Subchapter B, Chapter 46, Education Code, is
46-4 amended by adding Section 46.036 to read as follows:
46-5 Sec. 46.036. APPLICABILITY TO OPEN-ENROLLMENT CHARTER
46-6 SCHOOLS. An open-enrollment charter school is not entitled to an
46-7 allotment under this subchapter.
46-8 SECTION 34. Section 411.097, Government Code, is amended by
46-9 amending Subsections (c) and (d) and adding Subsection (e) to read
46-10 as follows:
46-11 (c) An open-enrollment charter school is entitled to obtain
46-12 from the department criminal history record information maintained
46-13 by the department that the school is required to obtain under
46-14 Subchapter C, Chapter 22, Education Code, that relates to a person
46-15 who:
46-16 (1) is a member of the governing body of the school,
46-17 as defined by Section 12.1012, Education Code; or
46-18 (2) has agreed to serve as a member of the governing
46-19 body of the school.
46-20 (d) Criminal history record information obtained by a school
46-21 district, charter school, private school, service center,
46-22 commercial transportation company, or shared services arrangement
46-23 under Subsection (a), [or] (b), or (c) may not be released or
46-24 disclosed to any person, other than the individual who is the
46-25 subject of the information, the Texas Education Agency, the State
46-26 Board for Educator Certification, or the chief personnel officer of
46-27 the transportation company, if the information is obtained under
47-1 Subsection (a)(2).
47-2 (e) [(d)] If a regional education service center or
47-3 commercial transportation company that receives criminal history
47-4 record information from the department under this section requests
47-5 the information by providing to the department a list, including
47-6 the name, date of birth, and any other personal descriptive
47-7 information required by the department for each person, through
47-8 electronic means, magnetic tape, or disk, as specified by the
47-9 department, the department may not charge the service center or
47-10 commercial transportation company more than the lesser of:
47-11 (1) the department's cost for providing the
47-12 information; or
47-13 (2) the amount prescribed by another law.
47-14 SECTION 35. Section 140.005, Local Government Code, is
47-15 amended to read as follows:
47-16 Sec. 140.005. ANNUAL FINANCIAL STATEMENT OF SCHOOL, ROAD, OR
47-17 OTHER DISTRICT. The governing body of a school district,
47-18 open-enrollment charter school, junior college district, or a
47-19 district or authority organized under Article III, Section 52, or
47-20 Article XVI, Section 59, of the Texas Constitution, shall prepare
47-21 an annual financial statement showing for each fund subject to the
47-22 authority of the governing body during the fiscal year:
47-23 (1) the total receipts of the fund, itemized by source
47-24 of revenue, including taxes, assessments, service charges, grants
47-25 of state money, gifts, or other general sources from which funds
47-26 are derived;
47-27 (2) the total disbursements of the fund, itemized by
48-1 the nature of the expenditure; and
48-2 (3) the balance in the fund at the close of the fiscal
48-3 year.
48-4 SECTION 36. Sections 140.006(c) and (d), Local Government
48-5 Code, are amended to read as follows:
48-6 (c) The presiding officer of a school district or
48-7 open-enrollment charter school shall submit a financial statement
48-8 prepared under Section 140.005 to a daily, weekly, or biweekly
48-9 newspaper published within the boundaries of the district or the
48-10 geographical area served by the charter school. If a daily,
48-11 weekly, or biweekly newspaper is not published within the
48-12 boundaries of the school district, the financial statement shall be
48-13 published in the manner provided by Subsections (a) and (b). If a
48-14 daily, weekly, or biweekly newspaper is not published within the
48-15 area served by the charter school, the financial statement shall be
48-16 published in a newspaper that has general circulation in the area
48-17 served by the charter school.
48-18 (d) A statement shall be published not later than two months
48-19 after the date the fiscal year ends, except that a school
48-20 district's or charter school's statement shall be published not
48-21 later than the 120th day after the date the fiscal year ends and in
48-22 accordance with the accounting method required by the Texas
48-23 [Central] Education Agency.
48-24 SECTION 37. (a) The Texas Education Agency shall
48-25 investigate existing open-enrollment charter schools to determine
48-26 if any of those schools are operating in a manner that effectively
48-27 requires students to possess special artistic, athletic, or other
49-1 abilities, the consideration of which in admissions policies is
49-2 prohibited under Section 12.111, Education Code, as amended by this
49-3 Act.
49-4 (b) Not later than January 1, 2002, the Texas Education
49-5 Agency shall report any violations to the State Board of Education,
49-6 and that board shall take appropriate action.
49-7 SECTION 38. Not later than January 1, 2002, the State Board
49-8 of Education shall adopt rules relating to training for the members
49-9 of governing bodies and officers of open-enrollment charter
49-10 schools, as required by Section 12.123, Education Code, as added by
49-11 this Act.
49-12 SECTION 39. Not later than November 1, 2001, the
49-13 commissioner of education shall adopt the criteria concerning
49-14 approval of open-enrollment charter school management contracts as
49-15 required under Section 12.125(b), Education Code, as added by this
49-16 Act.
49-17 SECTION 40. (a) Beginning September 1, 2001, an
49-18 open-enrollment charter school shall obtain, in compliance with
49-19 Section 22.083, Education Code, as amended by this Act, criminal
49-20 history record information relating to:
49-21 (1) each prospective employee whom the school intends
49-22 to employ in a capacity described by Section 21.003(a), Education
49-23 Code, and who does not hold a certificate issued under Subchapter
49-24 B, Chapter 21, Education Code; and
49-25 (2) each person who agrees to serve as a member of the
49-26 governing body of the school.
49-27 (b) Not later than January 1, 2002, an open-enrollment
50-1 charter school shall obtain, in compliance with Section 22.083,
50-2 Education Code, as amended by this Act, all criminal history record
50-3 information that relates to:
50-4 (1) a person whom the school initially employed in a
50-5 capacity described by Section 21.003(a), Education Code, on or
50-6 before September 1, 2001, other than a person:
50-7 (A) who holds a certificate issued under
50-8 Subchapter B, Chapter 21, Education Code;
50-9 (B) whom the school will not employ after
50-10 January 1, 2002; or
50-11 (C) as to whom the school obtained criminal
50-12 history record information under Section 22.083, Education Code, at
50-13 the time of the person's initial employment or subsequent to the
50-14 initial employment; and
50-15 (2) a person who serves as a member of the governing
50-16 body of the school other than a person:
50-17 (A) who holds a certificate issued under
50-18 Subchapter B, Chapter 21, Education Code; or
50-19 (B) who will not be serving on the governing
50-20 body after January 1, 2002.
50-21 SECTION 41. Not later than September 1, 2002, an
50-22 open-enrollment charter school in existence on September 1, 2001,
50-23 shall fulfill the requirements of Sections 203.025, 203.026, and
50-24 203.041, Local Government Code.
50-25 SECTION 42. (a) The change in law made by Sections 12.106
50-26 and 12.107, Education Code, as amended by this Act, apply beginning
50-27 with the 2003-2004 school year.
51-1 (b) The change in law made by Section 12.114, Education
51-2 Code, as amended by this Act, applies to a revision proposed by an
51-3 open-enrollment charter school that has not been approved by the
51-4 State Board of Education before September 1, 2001, regardless of
51-5 the date on which the school proposed the revision.
51-6 (c) The change in law made by Section 12.126, Education
51-7 Code, as added by this Act, applies only to a cause of action that
51-8 accrues on or after September 1, 2001. A cause of action that
51-9 accrued before September 1, 2001, is governed by the law in effect
51-10 at the time the cause of action accrued, and that law is continued
51-11 in effect for that purpose.
51-12 SECTION 43. This Act takes effect September 1, 2001.