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. Subchapter A, Chapter 12, Education Code, is
1-5 amended by amending Section 12.001 and adding Section 12.0011 to
1-6 read as follows:
1-7 Sec. 12.001. PURPOSES OF CHAPTER. (a) The purposes of this
1-8 chapter are to:
1-9 (1) improve student learning;
1-10 (2) increase the choice of learning opportunities
1-11 within the public school system;
1-12 (3) create professional opportunities that will
1-13 attract new teachers to the public school system;
1-14 (4) establish a new form of accountability for public
1-15 schools; and
1-16 (5) encourage different and innovative learning
1-17 methods.
1-18 (b) This chapter shall be applied in a manner that ensures
1-19 the fiscal and academic accountability of persons holding charters
1-20 issued under this chapter. This chapter may not be applied in a
1-21 manner that unduly regulates the instructional methods or
1-22 pedagogical innovations of charter schools.
1-23 Sec. 12.0011. ALTERNATIVE METHOD OF OPERATION. As an
1-24 alternative to operating in the manner generally provided by this
2-1 title, an independent school district, a school campus, or an
2-2 educational program may choose to operate under a charter in
2-3 accordance with this chapter.
2-4 SECTION 2. Section 12.101(b), Education Code, is amended to
2-5 read as follows:
2-6 (b) The State Board of Education may grant a charter for an
2-7 open-enrollment charter school only to an applicant that meets any
2-8 financial, governing, and operational standards adopted by the
2-9 commissioner under this subchapter. The State Board of Education
2-10 may not grant a total of more than 215 [20] charters for an
2-11 open-enrollment charter school.
2-12 SECTION 3. Subchapter D, Chapter 12, Education Code, is
2-13 amended by adding Section 12.1012 to read as follows:
2-14 Sec. 12.1012. DEFINITIONS. In this subchapter:
2-15 (1) "Charter holder" means the entity to which a
2-16 charter is granted under this subchapter.
2-17 (2) "Governing body of a charter holder" means the
2-18 board of directors, board of trustees, or other governing body of a
2-19 charter holder.
2-20 (3) "Governing body of an open-enrollment charter
2-21 school" means the board of directors, board of trustees, or other
2-22 governing body of an open-enrollment charter school. The term
2-23 includes the governing body of a charter holder if that body acts
2-24 as the governing body of the open-enrollment charter school.
2-25 (4) "Management company" means a person, other than a
2-26 charter holder, who provides management services for an
2-27 open-enrollment charter school.
3-1 (5) "Management services" means services related to
3-2 the management or operation of an open-enrollment charter school,
3-3 including:
3-4 (A) planning, operating, supervising, and
3-5 evaluating the school's educational programs, services, and
3-6 facilities;
3-7 (B) making recommendations to the governing body
3-8 of the school relating to the selection of school personnel;
3-9 (C) managing the school's day-to-day operations
3-10 as its administrative manager;
3-11 (D) preparing and submitting to the governing
3-12 body of the school a proposed budget;
3-13 (E) recommending policies to be adopted by the
3-14 governing body of the school, developing appropriate procedures to
3-15 implement policies adopted by the governing body of the school, and
3-16 overseeing the implementation of adopted policies; and
3-17 (F) providing leadership for the attainment of
3-18 student performance at the school based on the indicators adopted
3-19 under Section 39.051 or by the governing body of the school.
3-20 (6) "Officer of an open-enrollment charter school"
3-21 means:
3-22 (A) the principal, director, or other chief
3-23 operating officer of an open-enrollment charter school;
3-24 (B) an assistant principal or assistant director
3-25 of an open-enrollment charter school; or
3-26 (C) a person charged with managing the finances
3-27 of an open-enrollment charter school.
4-1 SECTION 4. Section 12.103, Education Code, is amended to read
4-2 as follows:
4-3 Sec. 12.103. GENERAL APPLICABILITY OF LAWS, [AND] RULES, AND
4-4 ORDINANCES TO OPEN-ENROLLMENT CHARTER SCHOOL. (a) Except as
4-5 provided by Subsection (b) or (c), an [An] open-enrollment charter
4-6 school is subject to federal and state laws and rules governing
4-7 public schools and to municipal zoning ordinances governing public
4-8 schools.
4-9 (b) An [, except that an] open-enrollment charter school is
4-10 subject to this code and rules adopted under this code only to the
4-11 extent the applicability to an open-enrollment charter school of a
4-12 provision of this code or a rule adopted under this code is
4-13 specifically provided.
4-14 (c) Notwithstanding Subsection (a), a campus of an
4-15 open-enrollment charter school located in whole or in part in a
4-16 municipality with a population of 20,000 or less is not subject to
4-17 a municipal zoning ordinance governing public schools.
4-18 SECTION 5. Section 12.104, Education Code, is amended by
4-19 adding Subsections (c) and (d) to read as follows:
4-20 (c) An open-enrollment charter school is entitled to the
4-21 same level of services provided to school districts by regional
4-22 education service centers. The commissioner shall adopt rules that
4-23 provide for the representation of open-enrollment charter schools
4-24 on the boards of directors of regional education service centers.
4-25 (d) The commissioner may by rule permit an open-enrollment
4-26 charter school to voluntarily participate in any state program
4-27 available to school districts, including a purchasing program, if
5-1 the school complies with all terms of the program.
5-2 SECTION 6. Subchapter D, Chapter 12, Education Code, is
5-3 amended by amending Section 12.105 and adding Sections
5-4 12.1051-12.1057 to read as follows:
5-5 Sec. 12.105. STATUS. [(a)] An open-enrollment charter
5-6 school is part of the public school system of this state.
5-7 Sec. 12.1051. APPLICABILITY OF OPEN MEETINGS AND PUBLIC
5-8 INFORMATION LAWS. (a) With respect to the operation of an
5-9 open-enrollment charter school, the [(b) The] governing body of a
5-10 charter holder and the governing body of an open-enrollment charter
5-11 [the] school are [is] considered to be [a] governmental bodies
5-12 [body] for purposes of Chapters 551 and 552, Government Code.
5-13 (b) With respect to the operation of an open-enrollment
5-14 charter school, any [Any] requirement in Chapter 551 or 552,
5-15 Government Code, that applies [those chapters relating] to a school
5-16 district, the board of trustees of a school district [school
5-17 board], or public school students [children] applies to an
5-18 open-enrollment charter school, the governing body of a charter
5-19 holder, the governing body of an open-enrollment charter school, or
5-20 students [and to children] attending an open-enrollment charter
5-21 school.
5-22 Sec. 12.1052. APPLICABILITY OF LAWS RELATING TO LOCAL
5-23 GOVERNMENT RECORDS. (a) With respect to the operation of an
5-24 open-enrollment charter school, an open-enrollment charter school
5-25 is considered to be a local government for purposes of Subtitle C,
5-26 Title 6, Local Government Code, and Subchapter J, Chapter 441,
5-27 Government Code.
6-1 (b) Records of an open-enrollment charter school and records
6-2 of a charter holder that relate to an open-enrollment charter
6-3 school are government records for all purposes under state law.
6-4 (c) Any requirement in Subtitle C, Title 6, Local Government
6-5 Code, or Subchapter J, Chapter 441, Government Code, that applies
6-6 to a school district, the board of trustees of a school district,
6-7 or an officer or employee of a school district applies to an
6-8 open-enrollment charter school, the governing body of a charter
6-9 holder, the governing body of an open-enrollment charter school, or
6-10 an officer or employee of an open-enrollment charter school except
6-11 that the records of an open-enrollment charter school that ceases
6-12 to operate shall be transferred in the manner prescribed by
6-13 Subsection (d).
6-14 (d) The records of an open-enrollment charter school that
6-15 ceases to operate shall be transferred in the manner specified by
6-16 the commissioner to a custodian designated by the commissioner.
6-17 The commissioner may designate any appropriate entity to serve as
6-18 custodian, including the agency, a regional education service
6-19 center, or a school district. In designating a custodian, the
6-20 commissioner shall ensure that the transferred records, including
6-21 student and personnel records, are transferred to a custodian
6-22 capable of:
6-23 (1) maintaining the records;
6-24 (2) making the records readily accessible to students,
6-25 parents, former school employees, and other persons entitled to
6-26 access; and
6-27 (3) complying with applicable state or federal law
7-1 restricting access to the records.
7-2 (e) If the charter holder of an open-enrollment charter
7-3 school that ceases to operate or an officer or employee of such a
7-4 school refuses to transfer school records in the manner specified
7-5 by the commissioner under Subsection (d), the commissioner may ask
7-6 the attorney general to petition a court for recovery of the
7-7 records. If the court grants the petition, the court shall award
7-8 attorney's fees and court costs to the state.
7-9 Sec. 12.1053. APPLICABILITY OF LAWS RELATING TO PUBLIC
7-10 PURCHASING AND CONTRACTING. (a) This section applies to an
7-11 open-enrollment charter school unless the school's charter
7-12 otherwise describes procedures for purchasing and contracting and
7-13 the procedures are approved by the State Board of Education.
7-14 (b) An open-enrollment charter school is considered to be:
7-15 (1) a governmental entity for purposes of:
7-16 (A) Subchapter D, Chapter 2252, Government Code;
7-17 and
7-18 (B) Subchapter B, Chapter 271, Local Government
7-19 Code;
7-20 (2) a political subdivision for purposes of Subchapter
7-21 A, Chapter 2254, Government Code; and
7-22 (3) a local government for purposes of Sections
7-23 2256.009-2256.016, Government Code.
7-24 (c) To the extent consistent with this section, a
7-25 requirement in a law listed in this section that applies to a
7-26 school district or the board of trustees of a school district
7-27 applies to an open-enrollment charter school, the governing body of
8-1 a charter holder, or the governing body of an open-enrollment
8-2 charter school.
8-3 Sec. 12.1054. APPLICABILITY OF LAWS RELATING TO CONFLICT OF
8-4 INTEREST. (a) A member of the governing body of a charter holder,
8-5 a member of the governing body of an open-enrollment charter
8-6 school, or an officer of an open-enrollment charter school is
8-7 considered to be a local public official for purposes of Chapter
8-8 171, Local Government Code. For purposes of that chapter:
8-9 (1) a member of the governing body of a charter holder
8-10 or a member of the governing body or officer of an open-enrollment
8-11 charter school is considered to have a substantial interest in a
8-12 business entity if a person related to the member or officer in the
8-13 third degree by consanguinity or affinity, as determined under
8-14 Chapter 573, Government Code, has a substantial interest in the
8-15 business entity under Section 171.002, Local Government Code;
8-16 (2) notwithstanding any provision of Section
8-17 12.1054(1), an employee of an open-enrollment charter school rated
8-18 as academically acceptable or higher under Chapter 39 for at least
8-19 two of the preceding three school years may serve as a member of
8-20 the governing body of the charter holder of the governing body of
8-21 the school if the employees do not constitute a quorum of the
8-22 governing body or any committee of the governing body; however, all
8-23 members shall comply with the requirements of Sections
8-24 171.003-171.007, Local Government Code.
8-25 (b) To the extent consistent with this section, a
8-26 requirement in a law listed in this section that applies to a
8-27 school district or the board of trustees of a school district
9-1 applies to an open-enrollment charter school, the governing body of
9-2 a charter holder, or the governing body of an open-enrollment
9-3 charter school.
9-4 Sec. 12.1055. APPLICABILITY OF NEPOTISM LAWS. (a) An
9-5 open-enrollment charter school is subject to a prohibition,
9-6 restriction, or requirement, as applicable, imposed by state law or
9-7 by a rule adopted under state law, relating to nepotism under
9-8 Chapter 573, Government Code.
9-9 (b) Notwithstanding Subsection (a), if an open-enrollment
9-10 charter school is rated academically acceptable or higher under
9-11 Chapter 39 for at least two of the preceding three school years,
9-12 then Chapter 573, Government Code, does not apply to that school;
9-13 however, a member of the governing body of a charter holder or a
9-14 member of the governing body or officer of an open-enrollment
9-15 charter school shall comply with the requirements of Sections
9-16 171.003-171.007, Local Government Code, with respect to a personnel
9-17 matter concerning a person related to the member or officer within
9-18 the degree specified by Section 573.002, Government Code, as if the
9-19 personnel matter were a transaction with a business entity subject
9-20 to those sections, and persons defined under Sections
9-21 573.021-573.025, Government Code, shall not constitute a quorum of
9-22 the governing body or any committee of the governing body.
9-23 Sec. 12.1056. IMMUNITY FROM LIABILITY. In matters related to
9-24 operation of an open-enrollment charter school, an open-enrollment
9-25 charter [(c) The] school is immune from liability to the same
9-26 extent as a school district, and its employees and volunteers are
9-27 immune from liability to the same extent as school district
10-1 employees and volunteers. A member of the governing body of an
10-2 open-enrollment charter school or of a charter holder is immune
10-3 from liability to the same extent as a school district trustee.
10-4 Sec. 12.1057. MEMBERSHIP IN TEACHER RETIREMENT SYSTEM OF
10-5 TEXAS. (a) [(d)] An employee of an open-enrollment charter school
10-6 who qualifies for membership in the Teacher Retirement System of
10-7 Texas shall be covered under the system to the same extent a
10-8 qualified employee of a school district is covered.
10-9 (b) For each employee of the school covered under the
10-10 system, the school is responsible for making any contribution that
10-11 otherwise would be the legal responsibility of the school district,
10-12 and the state is responsible for making contributions to the same
10-13 extent it would be legally responsible if the employee were a
10-14 school district employee.
10-15 SECTION 7. Sections 12.106 and 12.107, Education Code, are
10-16 amended to read as follows:
10-17 Sec. 12.106. STATE FUNDING. (a) A charter holder is
10-18 entitled to receive for the open-enrollment charter school funding
10-19 under Chapter 42 as if the school were a school district without a
10-20 tier one local share for purposes of Section 42.253 and without any
10-21 local revenue ("LR") for purposes of Section 42.302. In
10-22 determining funding for an open-enrollment charter school,
10-23 adjustments under Sections 42.102, 42.103, 42.104, and 42.105 and
10-24 the district enrichment tax rate ("DTR") under Section 42.302 are
10-25 based on the average adjustment and average district enrichment tax
10-26 rate for the state.
10-27 (b) An open-enrollment charter school is entitled to funds
11-1 that are available to school districts from the agency or the
11-2 commissioner in the form of grants or other discretionary funding
11-3 unless the statute authorizing the funding explicitly provides that
11-4 open-enrollment charter schools are not entitled to the funding.
11-5 (c) The commissioner may adopt rules to provide and account
11-6 for state funding of open-enrollment charter schools under this
11-7 section. A rule adopted under this section may be similar to a
11-8 provision of this code that is not similar to Section 12.104(b) if
11-9 the commissioner determines that the rule is related to financing
11-10 of open-enrollment charter schools and is necessary or prudent to
11-11 provide or account for state funds. [An open-enrollment charter
11-12 school is entitled to the distribution from the available school
11-13 fund for a student attending the open-enrollment charter school to
11-14 which the district in which the student resides would be entitled.]
11-15 [(b) A student attending an open-enrollment charter school
11-16 who is eligible under Section 42.003 is entitled to the benefits of
11-17 the Foundation School Program under Chapter 42. The commissioner
11-18 shall distribute from the foundation school fund to each school an
11-19 amount equal to the cost of a Foundation School Program provided by
11-20 the program for which the charter is granted as determined under
11-21 Section 42.251, including the transportation allotment under
11-22 Section 42.155, for the student that the district in which the
11-23 student resides would be entitled to, less an amount equal to the
11-24 sum of the school's tuition receipts under Section 12.107 plus the
11-25 school's distribution from the available school fund.]
11-26 Sec. 12.107. STATUS AND USE OF FUNDS. (a) Funds received
11-27 under Section 12.106 after September 1, 2001, by a charter holder:
12-1 (1) are considered to be public funds for all purposes
12-2 under state law;
12-3 (2) are held in trust by the charter holder for the
12-4 benefit of the students of the open-enrollment charter school;
12-5 (3) may be used only for a purpose for which a school
12-6 may use local funds under Section 45.105(c); and
12-7 (4) pending their use, must be deposited into a bank,
12-8 as defined by Section 45.201, with which the charter holder has
12-9 entered into a depository contract.
12-10 (b) A charter holder shall deliver to the agency a copy of
12-11 the depository contract between the charter holder and any bank
12-12 into which state funds are deposited. [LOCAL FUNDING. (a) Except
12-13 as provided by Subsection (b), an open-enrollment charter school is
12-14 entitled to receive tuition from the school district in which a
12-15 student attending the school resides in an amount equal to the
12-16 quotient of the tax revenue collected by the school district for
12-17 maintenance and operations for the school year for which tuition is
12-18 being paid divided by the sum of the number of students enrolled in
12-19 the district as reported in the Public Education Information
12-20 Management System (PEIMS), including the number of students for
12-21 whom the district is required to pay tuition.]
12-22 [(b) The tuition to be paid under Subsection (a) by a school
12-23 district with a wealth per student that exceeds the equalized
12-24 wealth level under Chapter 41 shall be based on the district's tax
12-25 revenue after the district has acted to achieve the equalized
12-26 wealth level under Chapter 41.]
12-27 SECTION 8. Subchapter D, Chapter 12, Education Code, is
13-1 amended by adding Section 12.1071 to read as follows:
13-2 Sec. 12.1071. EFFECT OF ACCEPTING STATE FUNDING. (a) A
13-3 charter holder who accepts state funds under Section 12.106 after
13-4 the effective date of a provision of this subchapter agrees to be
13-5 subject to that provision, regardless of the date on which the
13-6 charter holder's charter was granted.
13-7 (b) A charter holder who accepts state funds under Section
13-8 12.106 after September 1, 2001, agrees to accept all liability
13-9 under this subchapter for any funds accepted under that section
13-10 before September 1, 2001. This subsection does not create
13-11 liability for charter holder conduct occurring before September 1,
13-12 2001.
13-13 SECTION 9. Section 12.108, Education Code, is amended to
13-14 read as follows:
13-15 Sec. 12.108. TUITION AND FEES RESTRICTED. (a) An [Except as
13-16 provided by Section 12.106, an] open-enrollment charter school may
13-17 not charge tuition to an eligible student who applies under Section
13-18 12.117.
13-19 (b) The governing body of an open-enrollment charter school
13-20 may require a student to pay any fee that the board of trustees of
13-21 a school district may charge under Section 11.158(a). The
13-22 governing body may not require a student to pay a fee that the
13-23 board of trustees of a school district may not charge under Section
13-24 11.158(b).
13-25 SECTION 10. Subchapter D, Chapter 12, Education Code, is
13-26 amended by adding Section 12.1101 to read as follows:
13-27 Sec. 12.1101. NOTIFICATION OF CHARTER APPLICATION. The
14-1 commissioner by rule shall adopt a procedure for providing notice
14-2 to the following persons on receipt by the State Board of Education
14-3 of an application for a charter for an open-enrollment charter
14-4 school under Section 12.110:
14-5 (1) the board of trustees of each school district from
14-6 which the proposed open-enrollment charter school is likely to draw
14-7 students, as determined by the commissioner; and
14-8 (2) each member of the legislature that represents the
14-9 geographic area to be served by the proposed school, as determined
14-10 by the commissioner.
14-11 SECTION 11. Sections 12.111 and 12.113, Education Code, are
14-12 amended to read as follows:
14-13 Sec. 12.111. CONTENT. Each charter granted under this
14-14 subchapter must:
14-15 (1) describe the educational program to be offered,
14-16 which must include the required curriculum as provided by Section
14-17 28.002;
14-18 (2) specify the period for which the charter or any
14-19 charter renewal is valid;
14-20 (3) provide that continuation or renewal of the
14-21 charter is contingent on acceptable student performance on
14-22 assessment instruments adopted under Subchapter B, Chapter 39, and
14-23 on compliance with any accountability provision specified by the
14-24 charter, by a deadline or at intervals specified by the charter;
14-25 (4) establish the level of student performance that is
14-26 considered acceptable for purposes of Subdivision (3);
14-27 (5) specify any basis, in addition to a basis
15-1 specified by this subchapter, on which the charter may be placed on
15-2 probation or revoked or on which renewal of the charter may be
15-3 denied;
15-4 (6) prohibit discrimination in admission policy on the
15-5 basis of sex, national origin, ethnicity, religion, disability,
15-6 academic, artistic, or athletic ability, or the district the child
15-7 would otherwise attend in accordance with this code, although the
15-8 charter may provide for the exclusion of a student who has a
15-9 documented history of a criminal offense, a juvenile court
15-10 adjudication, or discipline problems under Subchapter A, Chapter
15-11 37;
15-12 (7) specify the grade levels to be offered;
15-13 (8) describe the governing structure of the program,
15-14 including:
15-15 (A) the officer positions designated;
15-16 (B) the manner in which officers are selected
15-17 and removed from office;
15-18 (C) the manner in which members of the governing
15-19 body of the school are selected and removed from office;
15-20 (D) the manner in which vacancies on that [the]
15-21 governing body [board] are filled;
15-22 (E) the term for which members of that [the]
15-23 governing body serve; and
15-24 (F) whether the terms are to be staggered;
15-25 (9) specify the powers or duties of the governing body
15-26 of the school that the governing body may delegate to an officer;
15-27 (10) specify the manner in which the school will
16-1 distribute to parents information related to the qualifications of
16-2 each [to be met by] professional employee [employees] of the
16-3 program, including any professional or educational degree held by
16-4 each employee, a statement of any certification under Subchapter B,
16-5 Chapter 21, held by each employee, and any relevant experience of
16-6 each employee;
16-7 (11) [(10)] describe the process by which the person
16-8 providing the program will adopt an annual budget;
16-9 (12) [(11)] describe the manner in which an annual
16-10 audit of the financial and programmatic operations of the program
16-11 is to be conducted, including the manner in which the person
16-12 providing the program will provide information necessary for the
16-13 school district in which the program is located to participate, as
16-14 required by this code or by State Board of Education rule, in the
16-15 Public Education Information Management System (PEIMS);
16-16 (13) [(12)] describe the facilities to be used;
16-17 (14) [(13)] describe the geographical area served by
16-18 the program; and
16-19 (15) [(14)] specify any type of enrollment criteria to
16-20 be used.
16-21 Sec. 12.113. CHARTER GRANTED. (a) Each charter the State
16-22 Board of Education grants for an open-enrollment charter school
16-23 must:
16-24 (1) satisfy this subchapter; and
16-25 (2) include the information that is required under
16-26 Section 12.111 consistent with the information provided in the
16-27 application and any modification the board requires.
17-1 (b) The grant of a charter under this subchapter does not
17-2 create an entitlement to a renewal of a charter on the same terms
17-3 as it was originally issued.
17-4 SECTION 12. Sections 12.114-12.116, Education Code, are
17-5 amended to read as follows:
17-6 Sec. 12.114. REVISION. A revision of a charter of an
17-7 open-enrollment charter school may be made only with the approval
17-8 of the commissioner [State Board of Education].
17-9 Sec. 12.115. BASIS FOR MODIFICATION, PLACEMENT ON PROBATION,
17-10 REVOCATION, OR DENIAL OF RENEWAL. (a) The commissioner [State
17-11 Board of Education] may modify, place on probation, revoke, or deny
17-12 renewal of the charter of an open-enrollment charter school if the
17-13 commissioner [board] determines that the charter holder [person
17-14 operating the school]:
17-15 (1) committed a material violation of the charter,
17-16 including failure to satisfy accountability provisions prescribed
17-17 by the charter;
17-18 (2) failed to satisfy generally accepted accounting
17-19 standards of fiscal management;
17-20 (3) failed to protect the health, safety, or welfare
17-21 of the students enrolled at the school; or
17-22 (4) [(3)] failed to comply with this subchapter or
17-23 another applicable law or rule.
17-24 (b) The action the commissioner [board] takes under
17-25 Subsection (a) shall be based on the best interest of the school's
17-26 students, the severity of the violation, and any previous violation
17-27 the school has committed.
18-1 Sec. 12.116. PROCEDURE FOR MODIFICATION, PLACEMENT ON
18-2 PROBATION, REVOCATION, OR DENIAL OF RENEWAL. (a) The commissioner
18-3 [State Board of Education] shall adopt a procedure to be used for
18-4 modifying, placing on probation, revoking, or denying renewal of
18-5 the charter of an open-enrollment charter school.
18-6 (b) The procedure adopted under Subsection (a) must provide
18-7 an opportunity for a hearing to the charter holder [person
18-8 operating the open-enrollment charter school] and to parents and
18-9 guardians of students in the school. A hearing under this
18-10 subsection must be held at the facility at which the program is
18-11 operated.
18-12 (c) Chapter 2001, Government Code, does not apply to a
18-13 hearing that is related to a modification, placement on probation,
18-14 revocation, or denial of renewal under this subchapter.
18-15 SECTION 13. Subchapter D, Chapter 12, Education Code, is
18-16 amended by adding Sections 12.1161-12.1163 to read as follows:
18-17 Sec. 12.1161. EFFECT OF REVOCATION, DENIAL OF RENEWAL, OR
18-18 SURRENDER OF CHARTER. (a) Except as provided by Subsection (b), if
18-19 the commissioner revokes or denies the renewal of a charter of an
18-20 open-enrollment charter school, or if an open-enrollment charter
18-21 school surrenders its charter, the school may not:
18-22 (1) continue to operate under this subchapter; or
18-23 (2) receive state funds under this subchapter.
18-24 (b) An open-enrollment charter school may continue to
18-25 operate and receive state funds under this subchapter for the
18-26 remainder of a school year if the commissioner denies renewal of
18-27 the school's charter before the completion of that school year.
19-1 Sec. 12.1162. ADDITIONAL SANCTIONS. (a) The commissioner
19-2 shall take any of the actions described by Subsection (b) or by
19-3 Section 39.131(a), to the extent the commissioner determines
19-4 necessary, if an open-enrollment charter school, as determined by a
19-5 report issued under Section 39.076(b):
19-6 (1) commits a material violation of the school's
19-7 charter;
19-8 (2) fails to satisfy generally accepted accounting
19-9 standards of fiscal management; or
19-10 (3) fails to comply with this subchapter or another
19-11 applicable rule or law.
19-12 (b) The commissioner may temporarily withhold funding,
19-13 suspend the authority of an open-enrollment charter school to
19-14 operate, or take any other reasonable action the commissioner
19-15 determines necessary to protect the health, safety, or welfare of
19-16 students enrolled at the school based on evidence that conditions
19-17 at the school present a danger to the health, safety, or welfare of
19-18 the students.
19-19 (c) After the commissioner acts under Subsection (b), the
19-20 open-enrollment charter school may not receive funding and may not
19-21 resume operating until a determination is made that:
19-22 (1) despite initial evidence, the conditions at the
19-23 school do not present a danger of material harm to the health,
19-24 safety, or welfare of students; or
19-25 (2) the conditions at the school that presented a
19-26 danger of material harm to the health, safety, or welfare of
19-27 students have been corrected.
20-1 (d) Not later than the third business day after the date the
20-2 commissioner acts under Subsection (b), the commissioner shall
20-3 provide the charter holder an opportunity for a hearing.
20-4 (e) Immediately after a hearing under Subsection (d), the
20-5 commissioner must cease the action under Subsection (b) or initiate
20-6 action under Section 12.116.
20-7 (f) The commissioner shall adopt rules implementing this
20-8 section. Chapter 2001, Government Code, does not apply to a
20-9 hearing under this section.
20-10 Sec. 12.1163. AUDIT BY COMMISSIONER. (a) To the extent
20-11 consistent with Subsection (b), the commissioner may audit the
20-12 records of:
20-13 (1) an open-enrollment charter school;
20-14 (2) a charter holder; and
20-15 (3) a management company.
20-16 (b) An audit under Subsection (a) must be limited to matters
20-17 directly related to the management or operation of an
20-18 open-enrollment charter school, including any financial and
20-19 administrative records.
20-20 SECTION 14. Section 12.117, Education Code, is amended to
20-21 read as follows:
20-22 Sec. 12.117. [APPLICATION FOR] ADMISSION. (a) For admission
20-23 to an open-enrollment charter school, the governing body of [person
20-24 operating] the school shall:
20-25 (1) [may] require the applicant to complete and submit
20-26 an application not later than a reasonable deadline the school
20-27 establishes; and
21-1 (2) on receipt of more acceptable applications for
21-2 admission under this section than available positions in the
21-3 school:
21-4 (A) fill the available positions by lottery; or
21-5 (B) subject to Subsection (b), fill the
21-6 available positions in the order in which applications received
21-7 before the application deadline were received.
21-8 (b) An open-enrollment charter school may fill applications
21-9 for admission under Subsection (a)(2)(B) only if the school
21-10 published a notice of the opportunity to apply for admission to the
21-11 school. A notice published under this subsection must:
21-12 (1) state the application deadline; and
21-13 (2) be published in a newspaper of general circulation
21-14 in the community in which the school is located not later than the
21-15 seventh day before the application deadline.
21-16 SECTION 15. Sections 12.118(a) and (c), Education Code, are
21-17 amended to read as follows:
21-18 (a) The commissioner [board] shall designate an impartial
21-19 organization with experience in evaluating school choice programs
21-20 to conduct an annual evaluation of open-enrollment charter schools.
21-21 (c) The evaluation of open-enrollment charter schools must
21-22 also include an evaluation of:
21-23 (1) the costs of instruction, administration, and
21-24 transportation incurred by open-enrollment charter schools; [and]
21-25 (2) the effect of open-enrollment charter schools on
21-26 school districts and on teachers, students, and parents in those
21-27 districts; and
22-1 (3) other issues, as determined by the commissioner.
22-2 SECTION 16. Section 12.119(a), Education Code, is amended to
22-3 read as follows:
22-4 (a) A charter holder [The entity to which a charter is
22-5 granted for an open-enrollment charter school] shall file with the
22-6 State Board of Education a copy of its articles of incorporation
22-7 and bylaws, or [a] comparable documents [document] if the charter
22-8 holder [entity] does not have articles of incorporation or bylaws,
22-9 within the period and in the manner prescribed by the board.
22-10 SECTION 17. Section 12.120, Education Code, is amended to
22-11 read as follows:
22-12 Sec. 12.120. RESTRICTIONS [LIMITATION] ON SERVING AS MEMBER
22-13 OF GOVERNING BODY OF CHARTER HOLDER OR OPEN-ENROLLMENT CHARTER
22-14 SCHOOL OR AS OFFICER OR EMPLOYEE. (a) A person may not serve as a
22-15 member of the governing body of a charter holder, as a member of
22-16 the governing body of an open-enrollment charter school, or as an
22-17 officer or employee of an open-enrollment charter school if the
22-18 person:
22-19 (1) [who] has been convicted of a felony or a
22-20 misdemeanor involving moral turpitude;
22-21 (2) has been convicted of an offense listed in Section
22-22 37.007(a);
22-23 (3) has been convicted of an offense listed in Article
22-24 62.01(5), Code of Criminal Procedure; or
22-25 (4) has a substantial interest in a management
22-26 company.
22-27 (b) For purposes of Subsection (a)(4), a person has a
23-1 substantial interest in a management company if the person:
23-2 (1) has a controlling interest in the company;
23-3 (2) owns more than 10 percent of the voting interest
23-4 in the company;
23-5 (3) owns more than $25,000 of the fair market value of
23-6 the company;
23-7 (4) has a direct or indirect participating interest by
23-8 shares, stock, or otherwise, regardless of whether voting rights
23-9 are included, in more than 10 percent of the profits, proceeds, or
23-10 capital gains of the company;
23-11 (5) is a member of the board of directors or other
23-12 governing body of the company;
23-13 (6) serves as an elected officer of the company; or
23-14 (7) is an employee of the company [may not serve as an
23-15 officer or member of the governing body of an open-enrollment
23-16 charter school].
23-17 SECTION 18. Subchapter D, Chapter 12, Education Code, is
23-18 amended by adding Sections 12.121-12.130 to read as follows:
23-19 Sec. 12.121. RESPONSIBILITY FOR OPEN-ENROLLMENT CHARTER
23-20 SCHOOL. The governing body of an open-enrollment charter school is
23-21 responsible for the management, operation, and accountability of
23-22 the school, regardless of whether the governing body delegates the
23-23 governing body's powers and duties to another person.
23-24 Sec. 12.122. LIABILITY OF MEMBERS OF GOVERNING BODY OF
23-25 OPEN-ENROLLMENT CHARTER SCHOOL. (a) Notwithstanding the Texas
23-26 Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon's
23-27 Texas Civil Statutes) or other law, on request of the commissioner,
24-1 the attorney general may bring suit against a member of the
24-2 governing body of an open-enrollment charter school for breach of a
24-3 fiduciary duty by the member, including misapplication of public
24-4 funds.
24-5 (b) The attorney general may bring suit under Subsection (a)
24-6 for:
24-7 (1) damages;
24-8 (2) injunctive relief; or
24-9 (3) any other equitable remedy determined to be
24-10 appropriate by the court.
24-11 (c) This section is cumulative of all other remedies.
24-12 Sec. 12.123. TRAINING FOR MEMBERS OF GOVERNING BODY OF
24-13 SCHOOL AND OFFICERS. (a) The commissioner shall adopt rules
24-14 prescribing training for:
24-15 (1) members of governing bodies of open-enrollment
24-16 charter schools; and
24-17 (2) officers of open-enrollment charter schools.
24-18 (b) The rules adopted under Subsection (a) may:
24-19 (1) specify the minimum amount and frequency of the
24-20 training;
24-21 (2) require the training to be provided by:
24-22 (A) the agency and regional education service
24-23 centers;
24-24 (B) entities other than the agency and service
24-25 centers, subject to approval by the commissioner; or
24-26 (C) both the agency, service centers, and other
24-27 entities; and
25-1 (3) require training to be provided concerning:
25-2 (A) basic school law, including school finance;
25-3 (B) health and safety issues;
25-4 (C) accountability requirements related to the
25-5 use of public funds; and
25-6 (D) other requirements relating to
25-7 accountability to the public, such as open meetings requirements
25-8 under Chapter 551, Government Code, and public information
25-9 requirements under Chapter 552, Government Code.
25-10 Sec. 12.124. LOANS FROM MANAGEMENT COMPANY PROHIBITED. (a)
25-11 The charter holder or the governing body of an open-enrollment
25-12 charter school may not accept a loan from a management company that
25-13 has a contract to provide management services to:
25-14 (1) that charter school; or
25-15 (2) another charter school that operates under a
25-16 charter granted to the charter holder.
25-17 (b) A charter holder or the governing body of an
25-18 open-enrollment charter school that accepts a loan from a
25-19 management company may not enter into a contract with that
25-20 management company to provide management services to the school.
25-21 Sec. 12.125. CONTRACT FOR MANAGEMENT SERVICES. Any contract,
25-22 including a contract renewal, between an open-enrollment charter
25-23 school and a management company proposing to provide management
25-24 services to the school must require the management company to
25-25 maintain all records related to the management services separately
25-26 from any other records of the management company.
25-27 Sec. 12.126. CERTAIN MANAGEMENT SERVICES CONTRACTS
26-1 PROHIBITED. The commissioner may prohibit, deny renewal of,
26-2 suspend, or revoke a contract between an open-enrollment charter
26-3 school and a management company providing management services to
26-4 the school if the commissioner determines that the management
26-5 company has:
26-6 (1) failed to provide educational or related services
26-7 in compliance with the company's contractual or other legal
26-8 obligation to any open-enrollment charter school in this state or
26-9 to any other similar school in another state;
26-10 (2) failed to protect the health, safety, or welfare
26-11 of the students enrolled at an open-enrollment charter school
26-12 served by the company;
26-13 (3) violated this subchapter or a rule adopted under
26-14 this subchapter; or
26-15 (4) otherwise failed to comply with any contractual or
26-16 other legal obligation to provide services to the school.
26-17 Sec. 12.127. LIABILITY OF MANAGEMENT COMPANY. (a) A
26-18 management company that provides management services to an
26-19 open-enrollment charter school is liable for damages incurred by
26-20 the state as a result of the failure of the company to comply with
26-21 its contractual or other legal obligation to provide services to
26-22 the school.
26-23 (b) On request of the commissioner, the attorney general may
26-24 bring suit on behalf of the state against a management company
26-25 liable under Subsection (a) for:
26-26 (1) damages, including any state funding received by
26-27 the company and any consequential damages suffered by the state;
27-1 (2) injunctive relief; or
27-2 (3) any other equitable remedy determined to be
27-3 appropriate by the court.
27-4 (c) This section is cumulative of all other remedies and
27-5 does not affect:
27-6 (1) the liability of a management company to the
27-7 charter holder; or
27-8 (2) the liability of a charter holder, a member of the
27-9 governing body of a charter holder, or a member of the governing
27-10 body of an open-enrollment charter school to the state.
27-11 Sec. 12.128. PROPERTY PURCHASED OR LEASED WITH STATE FUNDS.
27-12 (a) Property purchased or leased with funds received by a charter
27-13 holder under Section 12.106 after September 1, 2001:
27-14 (1) is considered to be public property for all
27-15 purposes under state law;
27-16 (2) is held in trust by the charter holder for the
27-17 benefit of the students of the open-enrollment charter school; and
27-18 (3) may be used only for a purpose for which a school
27-19 district may use school district property.
27-20 (b) If at least 50 percent of the funds used by a charter
27-21 holder to purchase real property are funds received under Section
27-22 12.106 before September 1, 2001, the property is considered to be
27-23 public property to the extent it was purchased with those funds.
27-24 (c) The commissioner shall:
27-25 (1) take possession and assume control of the property
27-26 described by Subsection (a) of an open-enrollment charter school
27-27 that ceases to operate; and
28-1 (2) supervise the disposition of the property in
28-2 accordance with law.
28-3 (d) The commissioner may adopt rules necessary to administer
28-4 this section.
28-5 (e) This section does not affect a security interest in or
28-6 lien on property established by a creditor in compliance with law
28-7 if the security interest or lien arose in connection with the sale
28-8 or lease of the property to the charter holder.
28-9 Sec. 12.129. MINIMUM TEACHER QUALIFICATIONS. A person
28-10 employed as a teacher by an open-enrollment charter school must
28-11 hold a high school diploma.
28-12 Sec. 12.130. NOTICE OF TEACHER QUALIFICATIONS. Each
28-13 open-enrollment charter school shall provide to the parent or
28-14 guardian of each student enrolled in the school written notice of
28-15 the qualifications of each teacher employed by the school.
28-16 SECTION 19. Chapter 12, Education Code, is amended by adding
28-17 Subchapter E to read as follows:
28-18 SUBCHAPTER E. COLLEGE OR UNIVERSITY CHARTER SCHOOL
28-19 Sec. 12.151. DEFINITION. In this subchapter, "public senior
28-20 college or university" has the meaning assigned by Section 61.003.
28-21 Sec. 12.152. AUTHORIZATION. (a) In accordance with this
28-22 subchapter and Subchapter D, the State Board of Education may grant
28-23 a charter on the application of a public senior college or
28-24 university for an open-enrollment charter school to operate on the
28-25 campus of the public senior college or university or in the same
28-26 county in which the campus of the public senior college or
28-27 university is located.
29-1 Sec. 12.153. RULES. The commissioner may adopt rules to
29-2 implement this subchapter.
29-3 Sec. 12.154. CONTENT. Notwithstanding Section 12.110(d), the
29-4 State Board of Education may grant a charter under this subchapter
29-5 only if the following criteria are satisfied in the public senior
29-6 college's or university's application, as determined by the State
29-7 Board of Education:
29-8 (1) the college or university charter school's
29-9 educational program must include innovative teaching methods;
29-10 (2) the college or university charter school's
29-11 educational program must be implemented under the direct
29-12 supervision of a member of the teaching or research faculty of the
29-13 public senior college or university;
29-14 (3) the faculty member supervising the college or
29-15 university charter school's educational program must have
29-16 substantial experience and expertise in education research, teacher
29-17 education, classroom instruction, or educational administration;
29-18 (4) the college or university charter school's
29-19 educational program must be designed to meet specific goals
29-20 described in the charter, including improving student performance,
29-21 and each aspect of the program must be directed toward the
29-22 attainment of the goals;
29-23 (5) the attainment of the college or university
29-24 charter school's educational program goals must be measured using
29-25 specific, objective standards set forth in the charter, including
29-26 assessment methods and a time frame; and
29-27 (6) the financial operations of the college or
30-1 university charter school must be supervised by the business office
30-2 of the public senior college or university.
30-3 Sec. 12.155. SCHOOL NAME. The name of a college or
30-4 university charter school must include the name of the public
30-5 senior college or university operating the school.
30-6 Sec. 12.156. APPLICABILITY OF CERTAIN PROVISIONS. (a)
30-7 Except as otherwise provided by this subchapter, Subchapter D
30-8 applies to a college or university charter school as though the
30-9 college or university charter school were granted a charter under
30-10 that subchapter.
30-11 (b) A charter granted under this subchapter is not
30-12 considered for purposes of the limit on the number of
30-13 open-enrollment charter schools imposed by Section 12.101(b).
30-14 SECTION 20. Section 22.083, Education Code, is amended to
30-15 read as follows:
30-16 Sec. 22.083. ACCESS TO CRIMINAL HISTORY RECORDS BY LOCAL AND
30-17 REGIONAL EDUCATION AUTHORITIES. (a) A school district,
30-18 [open-enrollment charter school,] private school, regional
30-19 education service center, or shared services arrangement may obtain
30-20 from any law enforcement or criminal justice agency all criminal
30-21 history record information that relates to a person:
30-22 (1) whom the district, school, service center, or
30-23 shared services arrangement intends to employ in any capacity; or
30-24 (2) who has indicated, in writing, an intention to
30-25 serve as a volunteer with the district, school, service center, or
30-26 shared services arrangement.
30-27 (b) An open-enrollment charter school shall obtain from any
31-1 law enforcement or criminal justice agency all criminal history
31-2 record information that relates to:
31-3 (1) a person whom the school intends to employ in any
31-4 capacity; or
31-5 (2) a person who has indicated, in writing, an
31-6 intention to serve as a volunteer with the school.
31-7 (c) A school district, open-enrollment charter school,
31-8 private school, regional education service center, or shared
31-9 services arrangement may obtain from any law enforcement or
31-10 criminal justice agency all criminal history record information
31-11 that relates to:
31-12 (1) a volunteer or employee of the district, school,
31-13 service center, or shared services arrangement; or
31-14 (2) an employee of or applicant for employment by a
31-15 person that contracts with the district, school, service center, or
31-16 shared services arrangement to provide services, if:
31-17 (A) the employee or applicant has or will have
31-18 continuing duties related to the contracted services; and
31-19 (B) the duties are or will be performed on
31-20 school property or at another location where students are regularly
31-21 present.
31-22 (d) [(c)] The superintendent of a district or the director
31-23 of an open-enrollment charter school, private school, regional
31-24 education service center, or shared services arrangement shall
31-25 promptly notify the State Board for Educator Certification in
31-26 writing if the person obtains or has knowledge of information
31-27 showing that an applicant for or holder of a certificate issued
32-1 under Subchapter B, Chapter 21, has a reported criminal history.
32-2 SECTION 21. Section 25.088, Education Code, is amended to
32-3 read as follows:
32-4 Sec. 25.088. SCHOOL ATTENDANCE OFFICER. The school
32-5 attendance officer may be selected by:
32-6 (1) the county school trustees of any county; [or]
32-7 (2) the board of trustees of any school district or
32-8 the boards of trustees of two or more school districts jointly; or
32-9 (3) the governing body of an open-enrollment charter
32-10 school.
32-11 SECTION 22. Section 25.089(a), Education Code, is amended to
32-12 read as follows:
32-13 (a) An attendance officer may be compensated from the funds
32-14 of the county, [or the] independent school district, or
32-15 open-enrollment charter school, as applicable.
32-16 SECTION 23. Section 25.090, Education Code, is amended to
32-17 read as follows:
32-18 Sec. 25.090. ATTENDANCE OFFICER NOT SELECTED. (a) In those
32-19 counties and independent school districts where an attendance
32-20 officer has not been selected, the duties of attendance officer
32-21 shall be performed by the school superintendents and peace officers
32-22 of the counties and districts.
32-23 (b) If the governing body of an open-enrollment charter
32-24 school has not selected an attendance officer, the duties of
32-25 attendance officer shall be performed by the peace officers of the
32-26 county in which the school is located.
32-27 (c) Additional compensation may not be paid for [the]
33-1 services performed under this section.
33-2 SECTION 24. Sections 25.093(f) and (g), Education Code, are
33-3 amended to read as follows:
33-4 (f) A fine collected under this section shall be deposited
33-5 as follows:
33-6 (1) one-half shall be deposited to the credit of the
33-7 operating fund of, as applicable:
33-8 (A) the school district in which the child
33-9 attends school;
33-10 (B) the open-enrollment charter school the child
33-11 attends; or
33-12 (C) [of] the juvenile justice alternative
33-13 education program that the child has been ordered to attend[, as
33-14 applicable]; and
33-15 (2) one-half shall be deposited to the credit of:
33-16 (A) the general fund of the county, if the
33-17 complaint is filed in the county court or justice court; or
33-18 (B) the general fund of the municipality, if the
33-19 complaint is filed in municipal court.
33-20 (g) At the trial of any person charged with violating this
33-21 section, the attendance records of the child may be presented in
33-22 court by any authorized employee of the school district or
33-23 open-enrollment charter school, as applicable.
33-24 SECTION 25. Section 25.095(a), Education Code, is amended to
33-25 read as follows:
33-26 (a) A school district or open-enrollment charter school
33-27 shall notify a student's parent in writing if, in a six-month
34-1 period, the student has been absent without an excuse five times
34-2 for any part of the day. The notice must state that if the student
34-3 is absent without an excuse for 10 or more days or parts of days in
34-4 a six-month period:
34-5 (1) the student's parent is subject to prosecution
34-6 under Section 25.093; and
34-7 (2) the student is subject to prosecution under
34-8 Section 25.094.
34-9 SECTION 26. Section 39.073(a), Education Code, is amended to
34-10 read as follows:
34-11 (a) The agency shall annually review the performance of each
34-12 district and campus on the indicators adopted under Sections
34-13 39.051(b)(1) through (7) and determine if a change in the
34-14 accreditation status of the district is warranted. The
34-15 commissioner may determine how all indicators adopted under Section
34-16 39.051(b) may be used to determine accountability ratings and to
34-17 select districts and campuses for acknowledgment.
34-18 SECTION 27. Subchapter D, Chapter 39, Education Code, is
34-19 amended by adding Section 39.0731 to read as follows:
34-20 Sec. 39.0731. ALTERNATIVE ACCREDITATION STATUS PILOT PROGRAM
34-21 FOR CERTAIN DISTRICTS, CAMPUSES, AND OPEN-ENROLLMENT CHARTER
34-22 SCHOOLS. (a) The commissioner may by rule develop an alternative
34-23 accreditation status pilot program for the 2001-2002 school year
34-24 that is designed to reflect the academic performance and
34-25 improvement of students enrolled at a district, campus, or
34-26 open-enrollment charter school that:
34-27 (1) primarily serves at-risk students, as defined in
35-1 Section 29.081, as determined by the commissioner; or
35-2 (2) is not required to administer assessment
35-3 instruments under Section 39.023.
35-4 (b) The pilot program:
35-5 (1) must include an analysis of student performance
35-6 and improvement on indicators determined by the commissioner under
35-7 Section 39.073(a); and
35-8 (2) may include an analysis of student performance on
35-9 an assessment instrument authorized under Section 28.006.
35-10 (c) Notwithstanding participation in the pilot program, a
35-11 district, campus, or open-enrollment charter school that
35-12 participates in the pilot program also continues to receive the
35-13 accountability rating that the district, campus, or school would
35-14 otherwise receive under this chapter and is subject to any
35-15 applicable sanctions under this chapter based on that rating.
35-16 (d) Not later than December 1, 2002, the commissioner shall
35-17 compile the results of the pilot program and any recommendations in
35-18 a report and submit the report to the governor, lieutenant
35-19 governor, speaker of the house of representatives, and the
35-20 presiding officer of each standing committee of the senate and
35-21 house of representatives having primary jurisdiction over public
35-22 education.
35-23 (e) This section expires January 1, 2003.
35-24 SECTION 28. Section 39.075(a), Education Code, is amended to
35-25 read as follows:
35-26 (a) The commissioner shall authorize special accreditation
35-27 investigations to be conducted [under the following circumstances]:
36-1 (1) when excessive numbers of absences of students
36-2 eligible to be tested on state assessment instruments are
36-3 determined;
36-4 (2) when excessive numbers of allowable exemptions
36-5 from the required state assessment are determined;
36-6 (3) in response to complaints submitted to the agency
36-7 with respect to alleged violations of civil rights or other
36-8 requirements imposed on the state by federal law or court order;
36-9 (4) in response to established compliance reviews of
36-10 the district's financial accounting practices and state and federal
36-11 program requirements;
36-12 (5) when extraordinary numbers of student placements
36-13 in alternative education programs, other than placements under
36-14 Sections 37.006 and 37.007, are determined; [or]
36-15 (6) in response to an allegation involving a conflict
36-16 between members of the board of trustees or between the board and
36-17 the district administration if it appears that the conflict
36-18 involves a violation of a role or duty of the board members or the
36-19 administration clearly defined by this code; or
36-20 (7) as the commissioner otherwise determines
36-21 necessary.
36-22 SECTION 29. Sections 39.131(a) and (d), Education Code, are
36-23 amended to read as follows:
36-24 (a) If a district does not satisfy the accreditation
36-25 criteria, the commissioner shall take any of the following actions,
36-26 listed in order of severity, to the extent the commissioner
36-27 determines necessary:
37-1 (1) issue public notice of the deficiency to the board
37-2 of trustees;
37-3 (2) order a hearing conducted by the board of trustees
37-4 of the district for the purpose of notifying the public of the
37-5 unacceptable performance, the improvements in performance expected
37-6 by the agency, and the sanctions that may be imposed under this
37-7 section if the performance does not improve;
37-8 (3) order the preparation of a student achievement
37-9 improvement plan that addresses each academic excellence indicator
37-10 for which the district's performance is unacceptable, the
37-11 submission of the plan to the commissioner for approval, and
37-12 implementation of the plan;
37-13 (4) order a hearing to be held before the commissioner
37-14 or the commissioner's designee at which the president of the board
37-15 of trustees of the district and the superintendent shall appear and
37-16 explain the district's low performance, lack of improvement, and
37-17 plans for improvement;
37-18 (5) arrange an on-site investigation of the district;
37-19 (6) appoint an agency monitor to participate in and
37-20 report to the agency on the activities of the board of trustees or
37-21 the superintendent;
37-22 (7) appoint a master to oversee the operations of the
37-23 district;
37-24 (8) appoint a management team to direct the operations
37-25 of the district in areas of unacceptable performance or require the
37-26 district to obtain certain services under a contract with another
37-27 person;
38-1 (9) if a district has been rated as academically
38-2 unacceptable for a period of one year or more, appoint a board of
38-3 managers [composed of residents of the district] to exercise the
38-4 powers and duties of the board of trustees; or
38-5 (10) if a district has been rated as academically
38-6 unacceptable for a period of two years or more:
38-7 (A)[,] annex the district to one or more
38-8 adjoining districts under Section 13.054; or
38-9 (B) in the case of a home-rule school district
38-10 or open-enrollment charter school, order closure of all programs
38-11 operated under the district's or school's [request the State Board
38-12 of Education to revoke the district's home-rule school district]
38-13 charter.
38-14 (d) The costs of providing a monitor, master, management
38-15 team, or special campus intervention team shall be paid by the
38-16 district. If the district fails or refuses to pay the costs in a
38-17 timely manner, the commissioner may:
38-18 (1) pay the costs using amounts withheld from any
38-19 funds to which the district is otherwise entitled; or
38-20 (2) recover the amount of the costs in the manner
38-21 provided for recovery of an overallocation of state funds under
38-22 Section 42.258.
38-23 SECTION 30. Subchapter A, Chapter 46, Education Code, is
38-24 amended by adding Section 46.012 to read as follows:
38-25 Sec. 46.012. APPLICABILITY TO OPEN-ENROLLMENT CHARTER
38-26 SCHOOLS. An open-enrollment charter school is not entitled to an
38-27 allotment under this subchapter.
39-1 SECTION 31. Subchapter B, Chapter 46, Education Code, is
39-2 amended by adding Section 46.036 to read as follows:
39-3 Sec. 46.036. APPLICABILITY TO OPEN-ENROLLMENT CHARTER
39-4 SCHOOLS. An open-enrollment charter school is not entitled to an
39-5 allotment under this subchapter.
39-6 SECTION 32. Subchapter C, Chapter 53, Education Code, is
39-7 amended by adding Section 53.351 to read as follows:
39-8 Sec. 53.351. BONDS FOR OPEN-ENROLLMENT CHARTER SCHOOL
39-9 FACILITIES. (a) The Texas Public Finance Authority shall establish
39-10 a nonprofit corporation to issue revenue bonds on behalf of
39-11 authorized open-enrollment charter schools for the acquisition,
39-12 construction, repair, or renovation of educational facilities of
39-13 those schools.
39-14 (b) The Texas Public Finance Authority shall appoint the
39-15 directors of the corporation in consultation with the commissioner
39-16 of education. Directors serve without compensation but are
39-17 entitled to reimbursement for travel expenses incurred in attending
39-18 board meetings. The board shall meet at least once a year.
39-19 (c) The corporation has all powers granted under the Texas
39-20 Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon's
39-21 Texas Civil Statutes) for the purpose of aiding authorized
39-22 open-enrollment charter schools in providing educational
39-23 facilities. In addition, Sections 53.131, 53.15, 53.31, 53.32,
39-24 53.331, 53.34, 53.35, 53.36(a), and 53.37-53.42 apply to and govern
39-25 the corporation and its procedures and bonds.
39-26 (d) The corporation shall adopt rules governing the issuance
39-27 of bonds on behalf of an authorized open-enrollment charter school.
40-1 (e) The comptroller shall establish a fund dedicated to the
40-2 credit enhancement of bonds issued under this section. The fund
40-3 may receive donations. The obligation of the fund is limited to an
40-4 amount equal to the balance of the fund.
40-5 (f) A revenue bond issued under this section is not a debt
40-6 of the state or any state agency, political corporation, or
40-7 political subdivision of the state and is not a pledge of the faith
40-8 and credit of any of these entities. A revenue bond is payable
40-9 solely from the revenue of the authorized open-enrollment charter
40-10 school on whose behalf the bond is issued. A revenue bond issued
40-11 under this section must contain on its face a statement to the
40-12 effect that:
40-13 (1) neither the state nor a state agency, political
40-14 corporation, or political subdivision of the state is obligated to
40-15 pay the principal of or interest on the bond; and
40-16 (2) neither the faith and credit nor the taxing power
40-17 of the state or any state agency, political corporation, or
40-18 political subdivision of the state is pledged to the payment of the
40-19 principal of or interest on the bond.
40-20 (g) An educational facility financed in whole or in part
40-21 under this section is exempt from taxation if the facility:
40-22 (1) is owned by an authorized open-enrollment charter
40-23 school;
40-24 (2) is held for the exclusive benefit of the school;
40-25 and
40-26 (3) is held for the exclusive use of the students,
40-27 faculty, and staff members of the school.
41-1 SECTION 33. Section 411.097, Government Code, is amended by
41-2 amending Subsections (c) and (d) and adding Subsection (e) to read
41-3 as follows:
41-4 (c) An open-enrollment charter school is entitled to obtain
41-5 from the department criminal history record information maintained
41-6 by the department that relates to a person who:
41-7 (1) is a member of the governing body of the school,
41-8 as defined by Section 12.1012, Education Code; or
41-9 (2) has agreed to serve as a member of the governing
41-10 body of the school.
41-11 (d) Criminal history record information obtained by a school
41-12 district, charter school, private school, service center,
41-13 commercial transportation company, or shared services arrangement
41-14 under Subsection (a), [or] (b), or (c) may not be released or
41-15 disclosed to any person, other than the individual who is the
41-16 subject of the information, the Texas Education Agency, the State
41-17 Board for Educator Certification, or the chief personnel officer of
41-18 the transportation company, if the information is obtained under
41-19 Subsection (a)(2).
41-20 (e) [(d)] If a regional education service center or
41-21 commercial transportation company that receives criminal history
41-22 record information from the department under this section requests
41-23 the information by providing to the department a list, including
41-24 the name, date of birth, and any other personal descriptive
41-25 information required by the department for each person, through
41-26 electronic means, magnetic tape, or disk, as specified by the
41-27 department, the department may not charge the service center or
42-1 commercial transportation company more than the lesser of:
42-2 (1) the department's cost for providing the
42-3 information; or
42-4 (2) the amount prescribed by another law.
42-5 SECTION 34. Section 140.005, Local Government Code, is
42-6 amended to read as follows:
42-7 Sec. 140.005. ANNUAL FINANCIAL STATEMENT OF SCHOOL, ROAD, OR
42-8 OTHER DISTRICT. The governing body of a school district,
42-9 open-enrollment charter school, junior college district, or a
42-10 district or authority organized under Article III, Section 52, or
42-11 Article XVI, Section 59, of the Texas Constitution, shall prepare
42-12 an annual financial statement showing for each fund subject to the
42-13 authority of the governing body during the fiscal year:
42-14 (1) the total receipts of the fund, itemized by source
42-15 of revenue, including taxes, assessments, service charges, grants
42-16 of state money, gifts, or other general sources from which funds
42-17 are derived;
42-18 (2) the total disbursements of the fund, itemized by
42-19 the nature of the expenditure; and
42-20 (3) the balance in the fund at the close of the fiscal
42-21 year.
42-22 SECTION 35. Section 140.006(c), Local Government Code, is
42-23 amended to read as follows:
42-24 (c) The presiding officer of a school district shall submit
42-25 a financial statement prepared under Section 140.005 to a daily,
42-26 weekly, or biweekly newspaper published within the boundaries of
42-27 the district. If a daily, weekly, or biweekly newspaper is not
43-1 published within the boundaries of the school district, the
43-2 financial statement shall be published in the manner provided by
43-3 Subsections (a) and (b). The financial statement of an
43-4 open-enrollment charter school shall be made available in the
43-5 manner provided by Chapter 552, Government Code.
43-6 SECTION 36. (a) Section 12.1011, Education Code, is
43-7 repealed.
43-8 (b) A charter for an open-enrollment charter school granted
43-9 under the authority of Section 12.1011, Education Code, as that
43-10 section existed before repeal by this Act, is considered to have
43-11 been granted under the authority of Section 12.101, Education Code.
43-12 SECTION 37. Not later than January 1, 2002, the commissioner
43-13 of education shall adopt rules relating to training for the members
43-14 of governing bodies and officers of open-enrollment charter
43-15 schools, as required by Section 12.123, Education Code, as added by
43-16 this Act.
43-17 SECTION 38. Beginning September 1, 2001, an open-enrollment
43-18 charter school shall obtain, in compliance with Section 22.083,
43-19 Education Code, as amended by this Act, criminal history record
43-20 information relating to each prospective employee or volunteer.
43-21 SECTION 39. Not later than September 1, 2002, an
43-22 open-enrollment charter school in existence on September 1, 2001,
43-23 shall fulfill the requirements of Sections 203.025, 203.026, and
43-24 203.041, Local Government Code.
43-25 SECTION 40. (a) The change in law made by Sections 12.106
43-26 and 12.107, Education Code, as amended by this Act, applies
43-27 beginning with the 2001-2002 school year, except as provided by
44-1 this section.
44-2 (b) An open-enrollment charter school operating on September
44-3 1, 2001, is funded as follows:
44-4 (1) for the 2001-2002 and 2002-2003 school years, the
44-5 school receives funding according to the law in effect on August
44-6 31, 2001;
44-7 (2) for the 2003-2004 school year, the school receives
44-8 90 percent of its funding according to the law in effect on August
44-9 31, 2001, and 10 percent of its funding according to the change in
44-10 law made by Sections 12.106 and 12.107, Education Code, as amended
44-11 by this Act;
44-12 (3) for the 2004-2005 school year, the school receives
44-13 80 percent of its funding according to the law in effect on August
44-14 31, 2001, and 20 percent of its funding according to the change in
44-15 law made by Sections 12.106 and 12.107, Education Code, as amended
44-16 by this Act;
44-17 (4) for the 2005-2006 school year, the school receives
44-18 70 percent of its funding according to the law in effect on August
44-19 31, 2001, and 30 percent of its funding according to the change in
44-20 law made by Sections 12.106 and 12.107, Education Code, as amended
44-21 by this Act;
44-22 (5) for the 2006-2007 school year, the school receives
44-23 60 percent of its funding according to the law in effect on August
44-24 31, 2001, and 40 percent of its funding according to the change in
44-25 law made by Sections 12.106 and 12.107, Education Code, as amended
44-26 by this Act;
44-27 (6) for the 2007-2008 school year, the school receives
45-1 50 percent of its funding according to the law in effect on August
45-2 31, 2001, and 50 percent of its funding according to the change in
45-3 law made by Sections 12.106 and 12.107, Education Code, as amended
45-4 by this Act;
45-5 (7) for the 2008-2009 school year, the school receives
45-6 40 percent of its funding according to the law in effect on August
45-7 31, 2001, and 60 percent of its funding according to the change in
45-8 law made by Sections 12.106 and 12.107, Education Code, as amended
45-9 by this Act;
45-10 (8) for the 2009-2010 school year, the school receives
45-11 30 percent of its funding according to the law in effect on August
45-12 31, 2001, and 70 percent of its funding according to the change in
45-13 law made by Sections 12.106 and 12.107, Education Code, as amended
45-14 by this Act;
45-15 (9) for the 2010-2011 school year, the school receives
45-16 20 percent of its funding according to the law in effect on August
45-17 31, 2001, and 80 percent of its funding according to the change in
45-18 law made by Sections 12.106 and 12.107, Education Code, as amended
45-19 by this Act;
45-20 (10) for the 2011-2012 school year, the school
45-21 receives 10 percent of its funding according to the law in effect
45-22 on August 31, 2001, and 90 percent of its funding according to the
45-23 change in law made by Sections 12.106 and 12.107, Education Code,
45-24 as amended by this Act; and
45-25 (11) for the 2012-2013 school year and subsequent
45-26 school years, the school receives 100 percent of its funding
45-27 according to the change in law made by Sections 12.106 and 12.107,
46-1 Education Code, as amended by this Act.
46-2 (c) The commissioner of education may adopt rules as
46-3 necessary to implement this section.
46-4 SECTION 41. (a) The change in law made by Section 12.114,
46-5 Education Code, as amended by this Act, applies to a revision
46-6 proposed by an open-enrollment charter school that has not been
46-7 approved by the State Board of Education before September 1, 2001,
46-8 regardless of the date on which the school proposed the revision.
46-9 (b) The change in law made by Section 12.127, Education
46-10 Code, as added by this Act, applies only to a cause of action that
46-11 accrues on or after September 1, 2001. A cause of action that
46-12 accrued before September 1, 2001, is governed by the law in effect
46-13 at the time the cause of action accrued, and that law is continued
46-14 in effect for that purpose.
46-15 SECTION 42. Section 12.1101, Education Code, as added by this
46-16 Act, applies only to an application for a charter for an
46-17 open-enrollment charter school received by the State Board of
46-18 Education on or after the effective date of this Act. An
46-19 application received before the effective date of this Act is
46-20 governed by the law as it existed immediately before the effective
46-21 date of this Act, and that law is continued in effect for that
46-22 purpose.
46-23 SECTION 43. This Act prevails over any conflicting Act of the
46-24 77th Legislature, Regular Session, 2001, that amends or repeals a
46-25 provision of Title 2, Education Code, as amended by this Act,
46-26 regardless of the relative dates of enactment.
46-27 SECTION 44. This Act takes effect September 1, 2001.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 6 was passed by the House on April 5,
2001, by a non-record vote; that the House refused to concur in
Senate amendments to H.B. No. 6 on May 21, 2001, and requested the
appointment of a conference committee to consider the differences
between the two houses; and that the House adopted the conference
committee report on H.B. No. 6 on May 27, 2001, by a non-record
vote; and that the House adopted H.C.R. No. 332 authorizing certain
corrections in H.B. No. 6 on May 28, 2001, by a non-record vote.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 6 was passed by the Senate, with
amendments, on May 17, 2001, by a viva-voce vote; at the request of
the House, the Senate appointed a conference committee to consider
the differences between the two houses; and that the Senate adopted
the conference committee report on H.B. No. 6 on May 27, 2001, by a
viva-voce vote; and that the Senate adopted H.C.R. No. 332
authorizing certain corrections in H.B. No. 6 on May 28, 2001, by a
viva-voce vote.
_______________________________
Secretary of the Senate
APPROVED: __________________________
Date
__________________________
Governor