77R10476 BDH-D
By Dunnam, Smith, Olivo, Hardcastle, Dutton, H.B. No. 6
et al.
Substitute the following for H.B. No. 6:
By Oliveira C.S.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. Subchapter D, Chapter 12, Education Code, is
1-5 amended by adding Sections 12.1012-12.1015 to read as follows:
1-6 Sec. 12.1012. DEFINITIONS. In this subchapter:
1-7 (1) "Charter holder" means the entity to which a
1-8 charter is granted under this subchapter.
1-9 (2) "Governing body of a charter holder" means the
1-10 board of directors, board of trustees, or other governing body of a
1-11 charter holder.
1-12 (3) "Governing body of an open-enrollment charter
1-13 school" means the board of directors, board of trustees, or other
1-14 governing body of an open-enrollment charter school. The term
1-15 includes the governing body of a charter holder if that body acts
1-16 as the governing body of the open-enrollment charter school.
1-17 (4) "Management company" means a person, other than a
1-18 charter holder, who provides management services for an
1-19 open-enrollment charter school.
1-20 (5) "Management services" means services related to
1-21 the management or operation of an open-enrollment charter school,
1-22 including:
1-23 (A) planning, operating, supervising, and
1-24 evaluating the school's educational programs, services, and
2-1 facilities;
2-2 (B) making recommendations to the governing body
2-3 of the school relating to the selection of school personnel;
2-4 (C) managing the school's day-to-day operations
2-5 as its administrative manager;
2-6 (D) preparing and submitting to the governing
2-7 body of the school a proposed budget;
2-8 (E) recommending policies to be adopted by the
2-9 governing body of the school, developing appropriate procedures to
2-10 implement policies adopted by the governing body of the school, and
2-11 overseeing the implementation of adopted policies; and
2-12 (F) providing leadership for the attainment of
2-13 student performance at the school based on the indicators adopted
2-14 under Section 39.051 or by the governing body of the school.
2-15 (6) "Officer of an open-enrollment charter school"
2-16 means:
2-17 (A) the principal, director, or other chief
2-18 operating officer of an open-enrollment charter school;
2-19 (B) an assistant principal or assistant director
2-20 of an open-enrollment charter school; or
2-21 (C) a person charged with managing the finances
2-22 of an open-enrollment charter school.
2-23 Sec. 12.1013. DELEGATION BY STATE BOARD OF EDUCATION. (a)
2-24 The State Board of Education may delegate to the commissioner any
2-25 power or duty of the board under this subchapter, other than the
2-26 power to grant, deny, modify, place on probation, deny renewal of,
2-27 or revoke a charter for an open-enrollment charter school.
3-1 (b) The commissioner may conduct hearings on any issue as to
3-2 which a hearing is authorized under this subchapter.
3-3 Sec. 12.1014. MINIMUM STUDENT ENROLLMENT. (a) The State
3-4 Board of Education may not grant a charter to or renew the charter
3-5 of an open-enrollment charter school unless the board determines
3-6 that the school will have and maintain an enrollment of at least 50
3-7 students, except that a school may have an enrollment of not fewer
3-8 than 20 students if the board specifically finds that the nature of
3-9 the school requires an enrollment of fewer than 50 students.
3-10 (b) The State Board of Education may revoke an
3-11 open-enrollment charter school's charter if, for a period
3-12 prescribed by board rule, the school's enrollment is lower than the
3-13 number of students authorized under Subsection (a).
3-14 Sec. 12.1015. MORATORIUM ON NEW CHARTERS. (a)
3-15 Notwithstanding Sections 12.101 and 12.1011, the State Board of
3-16 Education may not issue a charter for an open-enrollment charter
3-17 school after August 31, 2001.
3-18 (b) This section expires September 1, 2003.
3-19 SECTION 2. Section 12.103, Education Code, is amended to
3-20 read as follows:
3-21 Sec. 12.103. GENERAL APPLICABILITY OF LAWS AND RULES TO
3-22 OPEN-ENROLLMENT CHARTER SCHOOL. (a) Except as provided by
3-23 Subsection (b) or (c), an [An] open-enrollment charter school is
3-24 subject to federal and state laws and rules governing public
3-25 schools or public school districts, including state laws listed in
3-26 Sections 12.1051 and 12.1053.
3-27 (b) An [except that an] open-enrollment charter school is
4-1 subject to this code and rules adopted under this code only to the
4-2 extent the applicability to an open-enrollment charter school of a
4-3 provision of this code or a rule adopted under this code is
4-4 specifically provided.
4-5 (c) An open-enrollment charter school is not subject to a
4-6 state law or rule governing public school districts if the
4-7 commissioner determines it is impracticable or inefficient to apply
4-8 the law or rule to open-enrollment charter schools.
4-9 SECTION 3. Section 12.104, Education Code, is amended by
4-10 amending Subsection (b) and adding Subsections (c) and (d) to read
4-11 as follows:
4-12 (b) An open-enrollment charter school is subject to:
4-13 (1) a provision of this title establishing a criminal
4-14 offense; and
4-15 (2) a prohibition, restriction, or requirement, as
4-16 applicable, imposed by this title or a rule adopted under this
4-17 title, relating to:
4-18 (A) the Public Education Information Management
4-19 System (PEIMS) to the extent necessary to monitor compliance with
4-20 this subchapter as determined by the commissioner;
4-21 (B) criminal history records under Subchapter C,
4-22 Chapter 22;
4-23 (C) reading instruments and accelerated reading
4-24 instruction programs under Section 28.006;
4-25 (D) satisfactory performance on assessment
4-26 instruments and to accelerated instruction under Section 28.0211;
4-27 (E) high school graduation under Section 28.025;
5-1 (F) special education programs under Subchapter
5-2 A, Chapter 29;
5-3 (G) bilingual education under Subchapter B,
5-4 Chapter 29;
5-5 (H) prekindergarten programs under Subchapter E,
5-6 Chapter 29;
5-7 (I) extracurricular activities under Section
5-8 33.081;
5-9 (J) health and safety under Chapter 38; [and]
5-10 (K) public school accountability under
5-11 Subchapters B, C, D, and G, Chapter 39; and
5-12 (L) purchasing and contracting under Subchapter
5-13 B, Chapter 44.
5-14 (c) To the extent the commissioner determines is necessary
5-15 or advisable to provide and account for state funding of
5-16 open-enrollment charter schools under Section 12.106, the
5-17 commissioner may adopt rules applying provisions of this code other
5-18 than those listed in Subsection (b) to open-enrollment charter
5-19 schools.
5-20 (d) An open-enrollment charter school is subject to the
5-21 requirement relating to the length of the school day under Section
5-22 25.082 unless the commissioner grants the open-enrollment charter
5-23 school a waiver from that requirement under Section 12.1041.
5-24 SECTION 4. Subchapter D, Chapter 12, Education Code, is
5-25 amended by adding Section 12.1041 to read as follows:
5-26 Sec. 12.1041. WAIVER OF REQUIREMENT RELATING TO LENGTH OF
5-27 SCHOOL DAY. (a) An open-enrollment charter school that, for
6-1 purposes of Section 12.104(d), is seeking a waiver of the
6-2 requirement relating to the length of the school day under Section
6-3 25.082 must submit a written application to the commissioner not
6-4 later than the 31st day before the date the open-enrollment charter
6-5 school intends to provide a shorter school day. The application
6-6 must include a statement of achievement objectives of the
6-7 open-enrollment charter school and the inhibition imposed on those
6-8 objectives by the requirement.
6-9 (b) Subject to Subsection (c), the commissioner may not deny
6-10 an application for a waiver under this section submitted by an
6-11 open-enrollment charter school rated as academically acceptable or
6-12 higher under Chapter 39 for each of the preceding three school
6-13 years.
6-14 (c) The commissioner may not grant a waiver under this
6-15 section if, as determined by the commissioner, a purpose of the
6-16 waiver application is to support any athletic or artistic activity.
6-17 (d) If the commissioner objects to the application for the
6-18 waiver, not later than the 30th day after the date the commissioner
6-19 receives the application the commissioner must notify the
6-20 open-enrollment charter school in writing that the application is
6-21 denied. If the commissioner does not notify the school of a denial
6-22 within that period, the application is considered approved.
6-23 (e) A waiver granted under this section is effective for the
6-24 period stated in the application, which may not exceed three years.
6-25 An open-enrollment charter school for which the requirement under
6-26 Section 25.082 is waived under this section for a period of three
6-27 years may receive an exemption from that requirement at the end of
7-1 that period if the school has fulfilled the achievement objectives
7-2 stated in the application. The exemption remains in effect until
7-3 the commissioner determines that achievement levels of the school
7-4 have declined.
7-5 SECTION 5. Subchapter D, Chapter 12, Education Code, is
7-6 amended by amending Section 12.105 and adding Sections
7-7 12.1051-12.1055 to read as follows:
7-8 Sec. 12.105. STATUS. [(a)] An open-enrollment charter
7-9 school is part of the public school system of this state.
7-10 Sec. 12.1051. APPLICABILITY OF OPEN MEETINGS AND PUBLIC
7-11 INFORMATION LAWS. (a) [(b)] The governing body of a charter holder
7-12 and the governing body of an open-enrollment charter [the] school
7-13 are [is] considered to be [a] governmental bodies [body] for
7-14 purposes of Chapters 551 and 552, Government Code.
7-15 (b) Any requirement in Chapter 551 or 552, Government Code,
7-16 that applies [those chapters relating] to a school district, the
7-17 board of trustees of a school district [school board], or public
7-18 school students [children] applies to an open-enrollment charter
7-19 school, the governing body of a charter holder, the governing body
7-20 of an open-enrollment charter school, or students [and to children]
7-21 attending an open-enrollment charter school.
7-22 Sec. 12.1052. APPLICABILITY OF LAWS RELATING TO LOCAL
7-23 GOVERNMENT RECORDS. (a) An open-enrollment charter school is
7-24 considered to be a local government for purposes of Subtitle C,
7-25 Title 6, Local Government Code, and Subchapter J, Chapter 441,
7-26 Government Code.
7-27 (b) Records of an open-enrollment charter school and records
8-1 of a charter holder that relate to an open-enrollment charter
8-2 school are government records for all purposes under state law.
8-3 (c) Any requirement in Subtitle C, Title 6, Local Government
8-4 Code, or Subchapter J, Chapter 441, Government Code, that applies
8-5 to a school district, the board of trustees of a school district,
8-6 or an officer or employee of a school district applies to an
8-7 open-enrollment charter school, the governing body of a charter
8-8 holder, the governing body of an open-enrollment charter school, or
8-9 an officer or employee of an open-enrollment charter school except
8-10 that the records of an open-enrollment charter school that ceases
8-11 to operate shall be transferred in the manner prescribed by
8-12 Subsection (d).
8-13 (d) The records of an open-enrollment charter school that
8-14 ceases to operate shall be transferred in the manner specified by
8-15 the commissioner to a custodian designated by the commissioner.
8-16 The commissioner may designate any appropriate entity to serve as
8-17 custodian, including the agency, a regional education service
8-18 center, or a school district. In designating a custodian, the
8-19 commissioner shall ensure that the transferred records, including
8-20 student and personnel records, are transferred to a custodian
8-21 capable of:
8-22 (1) maintaining the records;
8-23 (2) making the records readily accessible to students,
8-24 parents, former school employees, and other persons entitled to
8-25 access; and
8-26 (3) complying with applicable state or federal law
8-27 restricting access to the records.
9-1 (e) If the charter holder of an open-enrollment charter
9-2 school that ceases to operate or an officer or employee of such a
9-3 school refuses to transfer school records in the manner specified
9-4 by the commissioner under Subsection (d), the commissioner may ask
9-5 the attorney general to petition a court for recovery of the
9-6 records. If the court grants the petition, the court shall award
9-7 attorney's fees and court costs to the state.
9-8 Sec. 12.1053. APPLICABILITY OF LAWS RELATING TO PUBLIC
9-9 PURCHASING AND CONTRACTING. (a) An open-enrollment charter school
9-10 is considered to be:
9-11 (1) a governmental entity for purposes of:
9-12 (A) Subchapter D, Chapter 2252, Government Code;
9-13 and
9-14 (B) Subchapter B, Chapter 271, Local Government
9-15 Code;
9-16 (2) a political subdivision for purposes of Subchapter
9-17 A, Chapter 2254, Government Code; and
9-18 (3) a local government for purposes of Sections
9-19 2256.009-2256.016, Government Code.
9-20 (b) A member of the governing body of a charter holder, a
9-21 member of the governing body of an open-enrollment charter school,
9-22 or an officer of an open-enrollment charter school is considered to
9-23 be a local public official for purposes of Chapter 171, Local
9-24 Government Code. For purposes of that chapter:
9-25 (1) a member of the governing body of a charter holder
9-26 or a member of the governing body or officer of an open-enrollment
9-27 charter school is considered to have a substantial interest in a
10-1 business entity if a person related to the member or officer in the
10-2 third degree by consanguinity or affinity, as determined under
10-3 Chapter 573, Government Code, has a substantial interest in the
10-4 business entity under Section 171.002, Local Government Code; and
10-5 (2) a member of the governing body or officer of a
10-6 charter school rated as academically acceptable or higher under
10-7 Chapter 39 for each of the preceding three school years, or a
10-8 member of the governing body of the charter holder of such a
10-9 school, is not subject to the restrictions of Section 171.009,
10-10 Local Government Code.
10-11 (c) A requirement in a law listed in this section that
10-12 applies to a school district or the board of trustees of a school
10-13 district applies to an open-enrollment charter school, the
10-14 governing body of a charter holder, or the governing body of an
10-15 open-enrollment charter school.
10-16 Sec. 12.1054. IMMUNITY FROM LIABILITY. An open-enrollment
10-17 charter [(c) The] school is immune from liability to the same
10-18 extent as a school district, and its employees and volunteers are
10-19 immune from liability to the same extent as school district
10-20 employees and volunteers.
10-21 Sec. 12.1055. MEMBERSHIP IN TEACHER RETIREMENT SYSTEM OF
10-22 TEXAS. (a) [(d)] An employee of an open-enrollment charter school
10-23 or management company who qualifies for membership in the Teacher
10-24 Retirement System of Texas shall be covered under the system to the
10-25 same extent a qualified employee of a school district is covered.
10-26 (b) For each employee of the school or company covered under
10-27 the system, the charter holder or company [school] is responsible
11-1 for making any contribution that otherwise would be the legal
11-2 responsibility of the school district, and the state is responsible
11-3 for making contributions to the same extent it would be legally
11-4 responsible if the employee were a school district employee.
11-5 SECTION 6. Sections 12.106-12.108, Education Code, are
11-6 amended to read as follows:
11-7 Sec. 12.106. STATE FUNDING. (a) A charter holder is
11-8 entitled to receive for the open-enrollment charter school funding
11-9 under Chapter 42 as if the school were a school district without a
11-10 tier one local share for purposes of Section 42.253 and without any
11-11 local revenue ("LR") for purposes of Section 42.302. In
11-12 determining funding for an open-enrollment charter school,
11-13 adjustments under Sections 42.102, 42.103, 42.104, and 42.105 and
11-14 the district enrichment tax rate ("DTR") under Section 42.302 are
11-15 based on the average adjustment and average district enrichment tax
11-16 rate for the state.
11-17 (b) Funds received by a charter holder under this section
11-18 after September 1, 2001:
11-19 (1) are considered to be public funds for all purposes
11-20 under state law;
11-21 (2) are held in trust by the charter holder for the
11-22 benefit of the students of the open-enrollment charter school;
11-23 (3) may be used only for a purpose for which a school
11-24 district may use local school funds under Section 45.105(c); and
11-25 (4) pending their use, must be deposited into a bank,
11-26 as defined by Section 45.201, as amended by Chapter 344, Acts of
11-27 the 76th Legislature, Regular Session, 1999, with which the charter
12-1 holder has entered into a depository contract.
12-2 (c) A charter holder shall deliver to the agency a copy of
12-3 the depository contract between the charter holder and a bank into
12-4 which state funds are deposited. [An open-enrollment charter school
12-5 is entitled to the distribution from the available school fund for
12-6 a student attending the open-enrollment charter school to which the
12-7 district in which the student resides would be entitled.]
12-8 [(b) A student attending an open-enrollment charter school
12-9 who is eligible under Section 42.003 is entitled to the benefits of
12-10 the Foundation School Program under Chapter 42. The commissioner
12-11 shall distribute from the foundation school fund to each school an
12-12 amount equal to the cost of a Foundation School Program provided by
12-13 the program for which the charter is granted as determined under
12-14 Section 42.251, including the transportation allotment under
12-15 Section 42.155, for the student that the district in which the
12-16 student resides would be entitled to, less an amount equal to the
12-17 sum of the school's tuition receipts under Section 12.107 plus the
12-18 school's distribution from the available school fund.]
12-19 Sec. 12.107. EFFECT OF ACCEPTING STATE FUNDING. (a) A
12-20 charter holder who accepts state funds under Section 12.106 after
12-21 the effective date of a provision of this subchapter agrees to be
12-22 subject to that provision, regardless of the date on which the
12-23 charter holder's charter was granted.
12-24 (b) A charter holder who accepts state funds under Section
12-25 12.106 after September 1, 2001, agrees to accept all liability
12-26 under this subchapter for any funds accepted under that section
12-27 before September 1, 2001. This subsection does not create
13-1 liability for charter holder conduct occurring before September 1,
13-2 2001. [LOCAL FUNDING. (a) Except as provided by Subsection (b),
13-3 an open-enrollment charter school is entitled to receive tuition
13-4 from the school district in which a student attending the school
13-5 resides in an amount equal to the quotient of the tax revenue
13-6 collected by the school district for maintenance and operations for
13-7 the school year for which tuition is being paid divided by the sum
13-8 of the number of students enrolled in the district as reported in
13-9 the Public Education Information Management System (PEIMS),
13-10 including the number of students for whom the district is required
13-11 to pay tuition.]
13-12 [(b) The tuition to be paid under Subsection (a) by a school
13-13 district with a wealth per student that exceeds the equalized
13-14 wealth level under Chapter 41 shall be based on the district's tax
13-15 revenue after the district has acted to achieve the equalized
13-16 wealth level under Chapter 41.]
13-17 Sec. 12.108. TUITION AND FEES RESTRICTED. (a) An [Except
13-18 as provided by Section 12.106, an] open-enrollment charter school
13-19 may not charge tuition to an eligible student who applies under
13-20 Section 12.117.
13-21 (b) The governing body of an open-enrollment charter school
13-22 may require a student to pay any fee that the board of trustees of
13-23 a school district may charge under Section 11.158(a). The
13-24 governing body may not require a student to pay a fee that the
13-25 board of trustees of a school district may not charge under Section
13-26 11.158(b).
13-27 SECTION 7. Sections 12.110(a)-(c), Education Code, are
14-1 amended to read as follows:
14-2 (a) The State Board of Education shall adopt:
14-3 (1) an application form and a procedure that must be
14-4 used to apply for a charter for an open-enrollment charter school
14-5 or a renewal of a charter; and
14-6 (2) criteria to use in selecting a program for which
14-7 to grant a charter.
14-8 (b) The application form for a charter or renewal of a
14-9 charter must provide for including:
14-10 (1) the information required under Section 12.111 to
14-11 be contained in a charter;
14-12 (2) a description of the program to be provided during
14-13 a typical school day that includes the number of hours each day the
14-14 program will operate; and
14-15 (3) a description of the types of instructional
14-16 approaches to be used.
14-17 (c) As part of the application procedure for a charter for a
14-18 new open-enrollment charter school, the board may require a
14-19 petition supporting the [a] charter [for a school] signed by a
14-20 specified number of parents or guardians of school-age children
14-21 residing in the area in which a school is proposed or may hold a
14-22 public hearing to determine parental support for the school.
14-23 SECTION 8. Section 12.111, Education Code, is amended to
14-24 read as follows:
14-25 Sec. 12.111. CONTENT. Each charter granted under this
14-26 subchapter must:
14-27 (1) describe the educational program to be offered,
15-1 which must include the required curriculum as provided by Section
15-2 28.002;
15-3 (2) specify the period for which the charter or any
15-4 charter renewal is valid;
15-5 (3) provide that continuation or renewal of the
15-6 charter is contingent on acceptable student performance on
15-7 assessment instruments adopted under Subchapter B, Chapter 39, and
15-8 on compliance with any accountability provision specified by the
15-9 charter, by a deadline or at intervals specified by the charter;
15-10 (4) establish the level of student performance that is
15-11 considered acceptable for purposes of Subdivision (3);
15-12 (5) specify any basis, in addition to a basis
15-13 specified by this subchapter, on which the charter may be placed on
15-14 probation or revoked or on which renewal of the charter may be
15-15 denied;
15-16 (6) prohibit discrimination in admission policy on the
15-17 basis of sex, national origin, ethnicity, religion, disability,
15-18 academic, artistic, or athletic ability, or the district the child
15-19 would otherwise attend in accordance with this code, although the
15-20 charter may provide for the exclusion of a student who has a
15-21 documented history of a criminal offense, a juvenile court
15-22 adjudication, or discipline problems under Subchapter A, Chapter
15-23 37;
15-24 (7) specify the grade levels to be offered;
15-25 (8) describe the governing structure of the program,
15-26 including:
15-27 (A) the officer positions designated;
16-1 (B) the manner in which officers are selected
16-2 and removed from office;
16-3 (C) the manner in which members of the governing
16-4 body of the school are selected and removed from office;
16-5 (D) the manner in which vacancies on that [the]
16-6 governing body [board] are filled;
16-7 (E) the term for which members of that [the]
16-8 governing body serve; and
16-9 (F) whether the terms are to be staggered;
16-10 (9) specify the powers or duties of the governing body
16-11 of the school that the governing body may delegate to an officer;
16-12 (10) specify the manner in which the school will
16-13 distribute to parents information related to the qualifications of
16-14 each [to be met by] professional employee [employees] of the
16-15 program, including any professional or educational degree held by
16-16 each employee, a statement of any certification under Subchapter B,
16-17 Chapter 21, held by each employee, and any relevant experience of
16-18 each employee;
16-19 (11) [(10)] describe the process by which the person
16-20 providing the program will adopt an annual budget;
16-21 (12) [(11)] describe the manner in which an annual
16-22 audit of the financial and programmatic operations of the program
16-23 is to be conducted, including the manner in which the person
16-24 providing the program will provide information necessary for the
16-25 school district in which the program is located to participate, as
16-26 required by this code or by State Board of Education rule, in the
16-27 Public Education Information Management System (PEIMS);
17-1 (13) [(12)] describe the facilities to be used;
17-2 (14) [(13)] describe the geographical area served by
17-3 the program; and
17-4 (15) [(14)] specify any type of enrollment criteria to
17-5 be used.
17-6 SECTION 9. Section 12.113, Education Code, is amended to read
17-7 as follows:
17-8 Sec. 12.113. CHARTER GRANTED. (a) Each charter the State
17-9 Board of Education grants for an open-enrollment charter school
17-10 must:
17-11 (1) satisfy this subchapter; and
17-12 (2) include the information that is required under
17-13 Section 12.111 consistent with the information provided in the
17-14 application and any modification the board requires.
17-15 (b) The grant of a charter under this subchapter does not
17-16 create an entitlement to a renewal of a charter on the same terms
17-17 as it was originally issued.
17-18 SECTION 10. Section 12.114, Education Code, is amended to
17-19 read as follows:
17-20 Sec. 12.114. REVISION. (a) A revision of a charter of an
17-21 open-enrollment charter school may be made only with the approval
17-22 of the State Board of Education.
17-23 (b) A charter holder must comply with Subsection (c) to
17-24 obtain approval of a revision of the charter for an open-enrollment
17-25 charter school if the revision authorizes the school to:
17-26 (1) expand to additional campuses or sites beyond the
17-27 campuses or sites stated in the charter;
18-1 (2) increase grade levels beyond the levels stated in
18-2 the charter; or
18-3 (3) increase enrollment beyond the maximum enrollment
18-4 stated in the charter.
18-5 (c) For approval of a revision described by Subsection (b):
18-6 (1) a charter holder must submit an application for
18-7 approval in a form approved by the State Board of Education; and
18-8 (2) the State Board of Education must interview
18-9 appropriate school representatives in connection with the
18-10 application and take all other action necessary to thoroughly
18-11 review the application.
18-12 (d) Notwithstanding any other provision of this section, the
18-13 State Board of Education may not approve a revision of the charter
18-14 of an open-enrollment charter school not rated as academically
18-15 acceptable or higher under Chapter 39 for each of the preceding
18-16 three school years that contains a revision described by Subsection
18-17 (b)(1). This subsection expires September 1, 2003.
18-18 SECTION 11. Section 12.115(a), Education Code, is amended to
18-19 read as follows:
18-20 (a) The State Board of Education may modify, place on
18-21 probation, revoke, or deny renewal of the charter of an
18-22 open-enrollment charter school if the board determines that the
18-23 charter holder [person operating the school]:
18-24 (1) committed a material violation of the charter,
18-25 including failure to satisfy accountability provisions prescribed
18-26 by the charter;
18-27 (2) failed to satisfy generally accepted accounting
19-1 standards of fiscal management;
19-2 (3) failed to protect the health, safety, or welfare
19-3 of the students enrolled at the school; or
19-4 (4) [(3)] failed to comply with this subchapter or
19-5 another applicable law or rule.
19-6 SECTION 12. Section 12.116, Education Code, is amended by
19-7 amending Subsection (b) and adding Subsection (c) to read as
19-8 follows:
19-9 (b) The procedure adopted under Subsection (a) must provide
19-10 an opportunity for a hearing to the charter holder [person
19-11 operating the open-enrollment charter school] and to parents and
19-12 guardians of students in the school. A hearing under this
19-13 subsection must be held at the facility at which the program is
19-14 operated.
19-15 (c) Chapter 2001, Government Code, does not apply to a
19-16 hearing that is related to a modification, placement on probation,
19-17 revocation, or denial of renewal under this subchapter.
19-18 SECTION 13. Subchapter D, Chapter 12, Education Code, is
19-19 amended by adding Sections 12.1161 and 12.1162 to read as follows:
19-20 Sec. 12.1161. EFFECT OF REVOCATION, DENIAL OF RENEWAL, OR
19-21 SURRENDER OF CHARTER. (a) Except as provided by Subsection (b), if
19-22 the State Board of Education revokes or denies the renewal of a
19-23 charter of an open-enrollment charter school, or if an
19-24 open-enrollment charter school surrenders its charter, the school
19-25 may not:
19-26 (1) continue to operate under this subchapter; or
19-27 (2) receive state funds under this subchapter.
20-1 (b) An open-enrollment charter school may continue to
20-2 operate and receive state funds under this subchapter for the
20-3 remainder of a school year if the board denies renewal of the
20-4 school's charter before the completion of that school year.
20-5 Sec. 12.1162. EMERGENCY SUSPENSION. (a) The commissioner
20-6 may temporarily withhold funding, suspend the authority of an
20-7 open-enrollment charter school to operate, or take any other
20-8 reasonable action the commissioner determines necessary to protect
20-9 the health, safety, or welfare of the students enrolled at the
20-10 school based on evidence that conditions at the school present a
20-11 danger to the health, safety, or welfare of students.
20-12 (b) After the commissioner imposes a suspension under this
20-13 section, the open-enrollment charter school may not receive funding
20-14 and may not resume operating until a determination is made by the
20-15 commissioner or the State Board of Education that:
20-16 (1) despite initial evidence, the conditions at the
20-17 school do not present a danger to the health, safety, or welfare of
20-18 students; or
20-19 (2) the conditions at the school that presented a
20-20 danger to the health, safety, or welfare of students have been
20-21 corrected.
20-22 (c) Not later than the third business day after the date the
20-23 commissioner imposes a suspension under this section, the
20-24 commissioner shall provide an opportunity for a hearing to the
20-25 holder of the charter of the open-enrollment charter school.
20-26 (d) If the commissioner does not lift the suspension imposed
20-27 under this section, the State Board of Education shall consider the
21-1 suspension at the first regularly scheduled meeting of the board
21-2 that occurs after the date the suspension is imposed. At that
21-3 meeting the board must lift the suspension or take action under
21-4 Section 12.116.
21-5 (e) Chapter 2001, Government Code, does not apply to a
21-6 suspension under this section.
21-7 SECTION 14. Section 12.117, Education Code, is amended to
21-8 read as follows:
21-9 Sec. 12.117. [APPLICATION FOR] ADMISSION. For admission to
21-10 an open-enrollment charter school, the governing body of [person
21-11 operating] the school shall:
21-12 (1) [may] require the applicant to complete and submit
21-13 an application not later than a reasonable deadline the school
21-14 establishes; and
21-15 (2) on receipt of more acceptable applications for
21-16 admission under this section than available positions in the
21-17 school, fill the available positions by lottery.
21-18 SECTION 15. Section 12.118, Education Code, is amended by
21-19 amending Subsections (a) and (c) and adding Subsections (d) and (e)
21-20 to read as follows:
21-21 (a) The State Board of Education [board] shall designate an
21-22 impartial organization with experience in evaluating school choice
21-23 programs to conduct an annual evaluation of open-enrollment charter
21-24 schools.
21-25 (c) The evaluation of open-enrollment charter schools must
21-26 also include an evaluation of:
21-27 (1) the costs of instruction, administration, and
22-1 transportation incurred by open-enrollment charter schools; [and]
22-2 (2) whether school district or school campus employees
22-3 are informing students at risk of dropping out of school of the
22-4 opportunity to attend an open-enrollment charter school for the
22-5 purpose of enabling the district or campus to avoid responsibility
22-6 for those students; and
22-7 (3) the effect of open-enrollment charter schools on
22-8 school districts and on teachers, students, and parents in those
22-9 districts.
22-10 (d) The evaluation of an open-enrollment charter school that
22-11 assists students in earning a high school diploma or high school
22-12 equivalency certificate must also include an evaluation of:
22-13 (1) the quality of the educational program offered;
22-14 (2) the number of hours each school day the
22-15 educational program is provided to a student;
22-16 (3) class size and the student/teacher ratio;
22-17 (4) student success in earning a high school diploma;
22-18 and
22-19 (5) student success in earning a high school
22-20 equivalency certificate.
22-21 (e) For purposes of this section, "student at risk of
22-22 dropping out of school" has the meaning assigned by Section 29.081.
22-23 SECTION 16. Subchapter D, Chapter 12, Education Code, is
22-24 amended by adding Sections 12.1181 and 12.1182 to read as follows:
22-25 Sec. 12.1181. STUDY OF CHARTER SCHOOL INNOVATION. (a) The
22-26 agency shall study the instructional methods of open-enrollment
22-27 charter schools to determine:
23-1 (1) the extent to which those schools are using
23-2 innovative educational concepts; and
23-3 (2) whether any innovative educational concepts used
23-4 by those schools have resulted in improvements in:
23-5 (A) students' performance on assessment
23-6 instruments administered under Subchapter B, Chapter 39;
23-7 (B) student attendance; or
23-8 (C) students' grades.
23-9 (b) The agency shall include the results of the study
23-10 conducted under this section in the report required under Section
23-11 39.182 that is due not later than December 1, 2002.
23-12 (c) This section expires January 31, 2003.
23-13 Sec. 12.1182. STUDY OF PROCEDURES FOR OBTAINING INFORMATION
23-14 FROM CHARTER SCHOOLS. (a) The agency shall study the procedures by
23-15 which the agency obtains information regarding the performance of
23-16 open-enrollment charter schools, including information regarding
23-17 the number of students attending those schools and the performance
23-18 of those students and schools under the accountability system
23-19 established by Subchapters B, C, D, and G, Chapter 39.
23-20 (b) In conducting the study, the agency shall:
23-21 (1) focus on the extent to which the existing
23-22 procedures for obtaining information results in current data that
23-23 is sufficient to permit effective and timely oversight of
23-24 open-enrollment charter schools;
23-25 (2) solicit comments and suggestions from persons
23-26 involved or otherwise interested in the operation of
23-27 open-enrollment charter schools; and
24-1 (3) develop recommendations for modifications in the
24-2 procedures for obtaining information, including any recommendations
24-3 requiring legislative action, that would improve the agency's
24-4 ability to obtain current information regarding open-enrollment
24-5 charter schools.
24-6 (c) The agency shall include the results of the study
24-7 conducted under this section and the agency's recommendations
24-8 resulting from the study in the report required under Section
24-9 39.182 that is due not later than December 1, 2002.
24-10 (d) This section expires January 1, 2003.
24-11 SECTION 17. Section 12.119(a), Education Code, is amended to
24-12 read as follows:
24-13 (a) A charter holder [The entity to which a charter is
24-14 granted for an open-enrollment charter school] shall file with the
24-15 State Board of Education a copy of its articles of incorporation
24-16 and bylaws, or [a] comparable documents [document] if the charter
24-17 holder [entity] does not have articles of incorporation or bylaws,
24-18 within the period and in the manner prescribed by the board.
24-19 SECTION 18. Section 12.120, Education Code, is amended to
24-20 read as follows:
24-21 Sec. 12.120. RESTRICTIONS [LIMITATION] ON SERVING AS MEMBER
24-22 OF GOVERNING BODY OF CHARTER HOLDER, OFFICER, OR EMPLOYEE. (a) A
24-23 person may not serve as a member of the governing body of a charter
24-24 holder or as an officer or employee of an open-enrollment charter
24-25 school if:
24-26 (1) the person [who] has been convicted of a felony or
24-27 a misdemeanor involving moral turpitude; or
25-1 (2) the person or the person's spouse has a
25-2 substantial interest in a management company.
25-3 (b) For purposes of Subsection (a)(2), a person has a
25-4 substantial interest in a management company if the person:
25-5 (1) has a controlling interest in the company;
25-6 (2) owns more than 10 percent of the voting interest
25-7 in the company;
25-8 (3) owns more than $25,000 of the fair market value of
25-9 the company;
25-10 (4) has a direct or indirect participating interest by
25-11 shares, stock, or otherwise, regardless of whether voting rights
25-12 are included, in more than 10 percent of the profits, proceeds, or
25-13 capital gains of the company;
25-14 (5) is a member of the board of directors or other
25-15 governing body of the company;
25-16 (6) serves as an elected officer of the company; or
25-17 (7) is an employee of the company [may not serve as an
25-18 officer or member of the governing body of an open-enrollment
25-19 charter school].
25-20 SECTION 19. Subchapter D, Chapter 12, Education Code, is
25-21 amended by adding Sections 12.121-12.1281 to read as follows:
25-22 Sec. 12.121. GENERAL POWERS AND DUTIES OF GOVERNING BODY OF
25-23 SCHOOL. (a) The governing body of an open-enrollment charter
25-24 school as a body corporate shall:
25-25 (1) govern and oversee the management of the school,
25-26 including the use of state funds received under Section 12.106;
25-27 (2) if the governing body determines that contracting
26-1 with a management company for the management of the school is
26-2 necessary and desirable, enter into a contract for management
26-3 services, subject to Section 12.125;
26-4 (3) select, determine the compensation of, evaluate
26-5 the performance of, and, if necessary, terminate the employment of
26-6 the principal, director, or other chief operating officer of the
26-7 school;
26-8 (4) approve the employment, compensation, promotion,
26-9 demotion, or termination of employment of other professional
26-10 employees of the school;
26-11 (5) adopt and amend a budget for each school year and
26-12 ensure that funds received under Section 12.106 are spent only as
26-13 provided for in the budget;
26-14 (6) ensure that the school complies with Subchapters
26-15 A, B, and E, Chapter 29; and
26-16 (7) select textbooks for the school as required by
26-17 Section 31.101.
26-18 (b) Except as provided by Section 12.111(9), the governing
26-19 body of an open-enrollment charter school may not delegate the
26-20 governing body's powers and duties under this subchapter to another
26-21 person.
26-22 (c) The governing body of an open-enrollment charter school
26-23 shall provide for appeals to the governing body or its designee
26-24 concerning student disciplinary matters in which a student in a
26-25 school district would be entitled to appeal to the board of
26-26 trustees or its designee under Chapter 37.
26-27 Sec. 12.122. LIABILITY OF MEMBERS OF GOVERNING BODY OF
27-1 CHARTER HOLDER AND MEMBER OF GOVERNING BODY OF SCHOOL. (a)
27-2 Notwithstanding the Texas Non-Profit Corporation Act (Article
27-3 1396-1.01 et seq., Vernon's Texas Civil Statutes) or other law, a
27-4 member of the governing body of a charter holder or a member of the
27-5 governing body of an open-enrollment charter school is personally
27-6 liable for:
27-7 (1) a misapplication of state funds received by the
27-8 charter holder under Section 12.106, including any use of the funds
27-9 that results in an improper personal benefit for the member; and
27-10 (2) a misapplication of property purchased or leased
27-11 with state funds received by the charter holder under Section
27-12 12.106, including any use of the property that results in an
27-13 improper personal benefit for the member.
27-14 (b) If a charter holder receives state funds under Section
27-15 12.106 after September 1, 2001, a member of the governing body of
27-16 the charter holder or a member of the governing body of the school
27-17 who serves in that capacity after September 1, 2001, accepts the
27-18 liability imposed by Subsection (a) as to any state funds accepted
27-19 under Section 12.106 during the person's service on the governing
27-20 body.
27-21 (c) In approving or agreeing to the use of state funds, a
27-22 member of the governing body of a charter holder or a member of the
27-23 governing body of an open-enrollment charter school is not liable
27-24 under this section if the member relied in good faith on the advice
27-25 of legal counsel that the use was authorized under Section
27-26 12.106(b)(3).
27-27 (d) A person held liable under this section is entitled to
28-1 contribution from any other person who knowingly accepted or
28-2 received funds in violation of this chapter, in proportion to the
28-3 amount of funds accepted or received by that person.
28-4 Sec. 12.123. TRAINING FOR MEMBERS OF GOVERNING BODY OF
28-5 SCHOOL AND OFFICERS. (a) The State Board of Education shall adopt
28-6 rules prescribing training for:
28-7 (1) members of governing bodies of open-enrollment
28-8 charter schools; and
28-9 (2) officers of open-enrollment charter schools.
28-10 (b) The rules adopted under Subsection (a) must:
28-11 (1) specify the minimum amount and frequency of the
28-12 training;
28-13 (2) require the training to be provided by:
28-14 (A) the agency and regional education service
28-15 centers;
28-16 (B) entities other than the agency and service
28-17 centers, subject to approval by the board; or
28-18 (C) both the agency, service centers, and other
28-19 entities;
28-20 (3) require training to be provided concerning:
28-21 (A) basic school law, including school finance;
28-22 (B) health and safety issues;
28-23 (C) accountability requirements related to the
28-24 use of public funds; and
28-25 (D) other requirements relating to
28-26 accountability to the public, such as open meetings requirements
28-27 under Chapter 551, Government Code, and public information
29-1 requirements under Chapter 552, Government Code; and
29-2 (4) require reporting to the agency to permit the
29-3 agency to monitor compliance with this section.
29-4 (c) A person described by Subsection (a) must complete the
29-5 minimum training required by rules adopted under Subsection (a).
29-6 (d) If a person described by Subsection (a) does not
29-7 complete the minimum training, the State Board of Education shall
29-8 direct the charter holder to remove the person failing to complete
29-9 the training or terminate that person's employment. If the person
29-10 is not removed or the person's employment is not terminated, the
29-11 board shall place on probation or revoke the school's charter as
29-12 provided by Sections 12.115 and 12.116.
29-13 Sec. 12.124. LOANS FROM MANAGEMENT COMPANY PROHIBITED. (a)
29-14 The charter holder or the governing body of an open-enrollment
29-15 charter school may not accept a loan from a management company that
29-16 has a contract to provide management services to:
29-17 (1) that charter school; or
29-18 (2) another charter school that operates under a
29-19 charter granted to the charter holder.
29-20 (b) A charter holder or the governing body of an
29-21 open-enrollment charter school that accepts a loan from a
29-22 management company may not enter into a contract with that
29-23 management company to provide management services to the school.
29-24 Sec. 12.125. APPROVAL OF MANAGEMENT CONTRACT. (a) An
29-25 open-enrollment charter school shall submit to the commissioner for
29-26 approval any proposed contract, including a contract renewal,
29-27 between the school and a management company proposing to provide
30-1 management services to the school. The contract may not take
30-2 effect until approved by the commissioner.
30-3 (b) The commissioner shall adopt criteria to use in
30-4 determining whether to approve a contract submitted under this
30-5 section. The criteria must require a management company to
30-6 demonstrate that the company:
30-7 (1) possesses substantial experience and expertise
30-8 relevant to providing management services in an educational
30-9 setting;
30-10 (2) has a reliable record of providing management
30-11 services in an educational setting, without:
30-12 (A) a previous denial of approval, denial of
30-13 renewal, suspension, or revocation of a contract under Subsection
30-14 (d), provided that the contract was held by a management company
30-15 managed in whole or in part by the company; or
30-16 (B) unjustified failures to provide services in
30-17 compliance with a contractual or other legal obligation to any
30-18 open-enrollment charter school in this state or to any other
30-19 similar school in another state;
30-20 (3) has the personnel, financial assets, and other
30-21 resources necessary to enable the company to provide high-quality,
30-22 reliable management services to an open-enrollment charter school;
30-23 and
30-24 (4) does not employ a person the commissioner finds to
30-25 have engaged in conduct described by Subsection (d).
30-26 (c) As provided by Section 12.107, if a charter holder
30-27 receives state funds under Section 12.106 after September 1, 2001,
31-1 a contract to provide management services to an open-enrollment
31-2 charter school for the 2001-2002 or a later school year that was
31-3 executed before September 1, 2001, has no effect for the 2001-2002
31-4 or a later school year unless the contract is approved as provided
31-5 by this section.
31-6 (d) The commissioner may deny approval of, deny renewal of,
31-7 suspend, or revoke a contract if the management company:
31-8 (1) fails to provide educational or related services
31-9 in compliance with the company's contractual or other legal
31-10 obligation to any open-enrollment charter school in this state or
31-11 to any other similar school in another state;
31-12 (2) fails to protect the health, safety, or welfare of
31-13 the students enrolled at an open-enrollment charter school served
31-14 by the company, as determined by the commissioner;
31-15 (3) violates this subchapter or a rule adopted under
31-16 this subchapter;
31-17 (4) engages in conduct that could result in action
31-18 under Sections 12.115 and 12.116;
31-19 (5) refuses, after reasonable notice, to meet
31-20 reasonable health and safety requirements within the company's
31-21 control and made known to the company by a federal or state agency
31-22 or by a political subdivision of this state; or
31-23 (6) compromises a charter school's eligibility under
31-24 Section 12.101(a)(3).
31-25 (e) The commissioner shall adopt rules to administer this
31-26 section.
31-27 (f) A management contract approved by the commissioner under
32-1 this section is not assignable.
32-2 Sec. 12.126. LIABILITY OF MANAGEMENT COMPANY. (a) A
32-3 management company that provides management services to an
32-4 open-enrollment charter school is liable for damages incurred by
32-5 the state or an affected school district as a result of the failure
32-6 of the company to comply with its contractual or other legal
32-7 obligation to provide services to the school.
32-8 (b) On request of the State Board of Education, the attorney
32-9 general may bring suit on behalf of the state or any affected
32-10 school district against a management company liable under
32-11 Subsection (a) for:
32-12 (1) damages, including any state funding received by
32-13 the company and any consequential damages suffered by the state or
32-14 affected school district;
32-15 (2) injunctive relief; or
32-16 (3) any other equitable remedy determined to be
32-17 appropriate by the court.
32-18 (c) With the approval of the attorney general, an affected
32-19 school district may participate in a suit brought by the attorney
32-20 general under Subsection (b). An affected school district is not
32-21 entitled to bring suit on its own behalf against a management
32-22 company liable under Subsection (a).
32-23 (d) This section is cumulative of all other remedies and
32-24 does not affect:
32-25 (1) the liability of a management company to the
32-26 charter holder; or
32-27 (2) the liability of a charter holder, a member of the
33-1 governing body of a charter holder, or a member of the governing
33-2 body of an open-enrollment charter school to the state.
33-3 Sec. 12.127. PROPERTY PURCHASED OR LEASED WITH STATE FUNDS.
33-4 (a) Property purchased or leased with funds received by a charter
33-5 holder under Section 12.106 after September 1, 2001:
33-6 (1) is considered to be public property for all
33-7 purposes under state law;
33-8 (2) is held in trust by the charter holder for the
33-9 benefit of the students of the open-enrollment charter school; and
33-10 (3) may be used only for a purpose for which a school
33-11 district may use school district property.
33-12 (b) If at least 50 percent of the funds used by a charter
33-13 holder to purchase real property are funds received under Section
33-14 12.106 before September 1, 2001, the property is considered to be
33-15 public property to the extent it was purchased with those funds.
33-16 (c) The commissioner shall:
33-17 (1) take possession and assume control of the property
33-18 described by Subsection (a) of an open-enrollment charter school
33-19 that ceases to operate; and
33-20 (2) supervise the disposition of the property in
33-21 accordance with law.
33-22 (d) The commissioner may adopt rules necessary to administer
33-23 this section.
33-24 (e) This section does not affect a security interest in or
33-25 lien on property established by a creditor in compliance with law
33-26 if the security interest or lien arose in connection with the sale
33-27 or lease of the property to the charter holder.
34-1 Sec. 12.128. MINIMUM TEACHER QUALIFICATIONS. (a) A person
34-2 employed as a teacher by an open-enrollment charter school must
34-3 hold a high school diploma or high school equivalency certificate.
34-4 (b) Unless otherwise approved by the commissioner, a person
34-5 employed as a teacher by an open-enrollment charter school and
34-6 assigned to teach a subject in the foundation curriculum under
34-7 Section 28.002(a)(1) must hold:
34-8 (1) a bachelor's or more advanced degree from an
34-9 institution of higher education; or
34-10 (2) a teaching certificate from an institution
34-11 equivalent to an institution of higher education that offers
34-12 recognized teaching certification.
34-13 Sec. 12.1281. EXCEPTION TO MINIMUM TEACHER QUALIFICATIONS.
34-14 (a) Notwithstanding Section 12.128(b), a person employed as a
34-15 teacher by an open-enrollment charter school during the 2000-2001
34-16 school year is not required to hold a bachelor's or more advanced
34-17 degree for employment as a teacher by an open-enrollment charter
34-18 school to teach a subject in the foundation curriculum under
34-19 Section 28.002(a)(1) if:
34-20 (1) the person is employed under a contract that
34-21 guarantees the person the right to remain employed for the
34-22 2001-2002 or a later school year;
34-23 (2) the person holds a high school diploma or high
34-24 school equivalency certificate;
34-25 (3) not later than January 1, 2002, the person enrolls
34-26 in an institution of higher education in a program under which the
34-27 person will obtain a bachelor's degree not later than June 30,
35-1 2007;
35-2 (4) the person makes satisfactory progress in the
35-3 program described by Subdivision (3); and
35-4 (5) the person obtains a bachelor's degree not later
35-5 than June 30, 2007.
35-6 (b) This section expires July 1, 2007.
35-7 SECTION 20. Section 22.083, Education Code, is amended to
35-8 read as follows:
35-9 Sec. 22.083. ACCESS TO CRIMINAL HISTORY RECORDS BY LOCAL AND
35-10 REGIONAL EDUCATION AUTHORITIES. (a) A school district,
35-11 [open-enrollment charter school,] private school, regional
35-12 education service center, or shared services arrangement may obtain
35-13 from any law enforcement or criminal justice agency all criminal
35-14 history record information that relates to a person:
35-15 (1) whom the district, school, service center, or
35-16 shared services arrangement intends to employ in any capacity; or
35-17 (2) who has indicated, in writing, an intention to
35-18 serve as a volunteer with the district, school, service center, or
35-19 shared services arrangement.
35-20 (b) An open-enrollment charter school shall obtain from any
35-21 law enforcement or criminal justice agency all criminal history
35-22 record information that relates to:
35-23 (1) a person whom the school intends to employ in a
35-24 capacity described by Section 21.003(a) and who does not hold a
35-25 certificate issued under Subchapter B, Chapter 21; and
35-26 (2) a person who serves as or agrees to serve as a
35-27 member of the governing body of the school.
36-1 (c) An open-enrollment charter school may obtain from any
36-2 law enforcement or criminal justice agency all criminal history
36-3 record information that relates to a person:
36-4 (1) whom the school intends to employ in a capacity
36-5 other than a capacity described by Section 21.003(a); or
36-6 (2) who has indicated, in writing, an intention to
36-7 serve as a volunteer with the school.
36-8 (d) A school district, open-enrollment charter school,
36-9 private school, regional education service center, or shared
36-10 services arrangement may obtain from any law enforcement or
36-11 criminal justice agency all criminal history record information
36-12 that relates to:
36-13 (1) a volunteer or employee of the district, school,
36-14 service center, or shared services arrangement; or
36-15 (2) an employee of or applicant for employment by a
36-16 person that contracts with the district, school, service center, or
36-17 shared services arrangement to provide services, if:
36-18 (A) the employee or applicant has or will have
36-19 continuing duties related to the contracted services; and
36-20 (B) the duties are or will be performed on
36-21 school property or at another location where students are regularly
36-22 present.
36-23 (e) [(c)] The superintendent of a district or the director
36-24 of an open-enrollment charter school, private school, regional
36-25 education service center, or shared services arrangement shall
36-26 promptly notify the State Board for Educator Certification in
36-27 writing if the person obtains or has knowledge of information
37-1 showing that an applicant for or holder of a certificate issued
37-2 under Subchapter B, Chapter 21, has a reported criminal history.
37-3 SECTION 21. Section 39.075(a), Education Code, is amended to
37-4 read as follows:
37-5 (a) The commissioner shall authorize special accreditation
37-6 investigations to be conducted under the following circumstances:
37-7 (1) when excessive numbers of absences of students
37-8 eligible to be tested on state assessment instruments are
37-9 determined;
37-10 (2) when excessive numbers of allowable exemptions
37-11 from the required state assessment are determined;
37-12 (3) in response to complaints submitted to the agency
37-13 with respect to alleged violations of civil rights or other
37-14 requirements imposed on the state by federal law or court order;
37-15 (4) in response to established compliance reviews of
37-16 the district's financial accounting practices and state and federal
37-17 program requirements;
37-18 (5) when extraordinary numbers of student placements
37-19 in alternative education programs, other than placements under
37-20 Sections 37.006 and 37.007, are determined; [or]
37-21 (6) in response to an allegation involving a conflict
37-22 between members of the board of trustees or between the board and
37-23 the district administration if it appears that the conflict
37-24 involves a violation of a role or duty of the board members or the
37-25 administration clearly defined by this code; or
37-26 (7) in response to an allegation that school district
37-27 or school campus employees are informing students at risk of
38-1 dropping out of school, as defined by Section 29.081, of the
38-2 opportunity to attend an open-enrollment charter school for the
38-3 purpose of enabling the district or campus to avoid responsibility
38-4 for those students.
38-5 SECTION 22. Section 411.097, Government Code, is amended by
38-6 amending Subsections (c) and (d) and adding Subsection (e) to read
38-7 as follows:
38-8 (c) An open-enrollment charter school is entitled to obtain
38-9 from the department criminal history record information maintained
38-10 by the department that the school is required to obtain under
38-11 Subchapter C, Chapter 22, Education Code, that relates to a person
38-12 who:
38-13 (1) is a member of the governing body of the school,
38-14 as defined by Section 12.1012, Education Code; or
38-15 (2) has agreed to serve as a member of the governing
38-16 body of the school.
38-17 (d) Criminal history record information obtained by a school
38-18 district, charter school, private school, service center,
38-19 commercial transportation company, or shared services arrangement
38-20 under Subsection (a), [or] (b), or (c) may not be released or
38-21 disclosed to any person, other than the individual who is the
38-22 subject of the information, the Texas Education Agency, the State
38-23 Board for Educator Certification, or the chief personnel officer of
38-24 the transportation company, if the information is obtained under
38-25 Subsection (a)(2).
38-26 (e) [(d)] If a regional education service center or
38-27 commercial transportation company that receives criminal history
39-1 record information from the department under this section requests
39-2 the information by providing to the department a list, including
39-3 the name, date of birth, and any other personal descriptive
39-4 information required by the department for each person, through
39-5 electronic means, magnetic tape, or disk, as specified by the
39-6 department, the department may not charge the service center or
39-7 commercial transportation company more than the lesser of:
39-8 (1) the department's cost for providing the
39-9 information; or
39-10 (2) the amount prescribed by another law.
39-11 SECTION 23. Section 140.005, Local Government Code, is
39-12 amended to read as follows:
39-13 Sec. 140.005. ANNUAL FINANCIAL STATEMENT OF SCHOOL, ROAD, OR
39-14 OTHER DISTRICT. The governing body of a school district,
39-15 open-enrollment charter school, junior college district, or a
39-16 district or authority organized under Article III, Section 52, or
39-17 Article XVI, Section 59, of the Texas Constitution, shall prepare
39-18 an annual financial statement showing for each fund subject to the
39-19 authority of the governing body during the fiscal year:
39-20 (1) the total receipts of the fund, itemized by source
39-21 of revenue, including taxes, assessments, service charges, grants
39-22 of state money, gifts, or other general sources from which funds
39-23 are derived;
39-24 (2) the total disbursements of the fund, itemized by
39-25 the nature of the expenditure; and
39-26 (3) the balance in the fund at the close of the fiscal
39-27 year.
40-1 SECTION 24. Sections 140.006(c) and (d), Local Government
40-2 Code, are amended to read as follows:
40-3 (c) The presiding officer of a school district or
40-4 open-enrollment charter school shall submit a financial statement
40-5 prepared under Section 140.005 to a daily, weekly, or biweekly
40-6 newspaper published within the boundaries of the district or the
40-7 geographical area served by the charter school. If a daily,
40-8 weekly, or biweekly newspaper is not published within the
40-9 boundaries of the school district, the financial statement shall be
40-10 published in the manner provided by Subsections (a) and (b). If a
40-11 daily, weekly, or biweekly newspaper is not published within the
40-12 area served by the charter school, the financial statement shall be
40-13 published in a newspaper that has general circulation in the area
40-14 served by the charter school.
40-15 (d) A statement shall be published not later than two months
40-16 after the date the fiscal year ends, except that a school
40-17 district's or charter school's statement shall be published not
40-18 later than the 120th day after the date the fiscal year ends and in
40-19 accordance with the accounting method required by the Texas
40-20 [Central] Education Agency.
40-21 SECTION 25. (a) The Texas Education Agency shall
40-22 investigate existing open-enrollment charter schools to determine
40-23 if any of those schools are operating in a manner that effectively
40-24 requires students to possess special artistic, athletic, or other
40-25 abilities, the consideration of which in admissions policies is
40-26 prohibited under Section 12.111, Education Code, as amended by this
40-27 Act.
41-1 (b) Not later than January 1, 2002, the Texas Education
41-2 Agency shall report any violations to the State Board of Education,
41-3 and that board shall take appropriate action.
41-4 SECTION 26. Not later than January 1, 2002, the State Board
41-5 of Education shall adopt rules relating to training for the members
41-6 of governing bodies and officers of open-enrollment charter
41-7 schools, as required by Section 12.123, Education Code, as added by
41-8 this Act.
41-9 SECTION 27. Not later than November 1, 2001, the
41-10 commissioner of education shall adopt the criteria concerning
41-11 approval of open-enrollment charter school management contracts as
41-12 required under Section 12.125(b), Education Code, as added by this
41-13 Act.
41-14 SECTION 28. (a) Beginning September 1, 2001, an
41-15 open-enrollment charter school shall obtain, in compliance with
41-16 Section 22.083, Education Code, as amended by this Act, criminal
41-17 history record information relating to:
41-18 (1) each prospective employee whom the school intends
41-19 to employ in a capacity described by Section 21.003(a), Education
41-20 Code, and who does not hold a certificate issued under Subchapter
41-21 B, Chapter 21, Education Code; and
41-22 (2) each person who agrees to serve as a member of the
41-23 governing body of the school.
41-24 (b) Not later than January 1, 2002, an open-enrollment
41-25 charter school shall obtain, in compliance with Section 22.083,
41-26 Education Code, as amended by this Act, all criminal history record
41-27 information that relates to:
42-1 (1) a person whom the school initially employed in a
42-2 capacity described by Section 21.003(a), Education Code, on or
42-3 before September 1, 2001, other than a person:
42-4 (A) who holds a certificate issued under
42-5 Subchapter B, Chapter 21, Education Code;
42-6 (B) whom the school will not employ after
42-7 January 1, 2002; or
42-8 (C) as to whom the school obtained criminal
42-9 history record information under Section 22.083, Education Code, at
42-10 the time of the person's initial employment or subsequent to the
42-11 initial employment; and
42-12 (2) a person who serves as a member of the governing
42-13 body of the school other than a person:
42-14 (A) who holds a certificate issued under
42-15 Subchapter B, Chapter 21, Education Code; or
42-16 (B) who will not be serving on the governing
42-17 body after January 1, 2002.
42-18 SECTION 29. Not later than September 1, 2002, an
42-19 open-enrollment charter school in existence on September 1, 2001,
42-20 shall fulfill the requirements of Sections 203.025, 203.026, and
42-21 203.041, Local Government Code.
42-22 SECTION 30. (a) The change in law made by Sections 12.106
42-23 and 12.107, Education Code, as amended by this Act, apply beginning
42-24 with the 2003-2004 school year.
42-25 (b) The change in law made by Section 12.114, Education
42-26 Code, as amended by this Act, applies to a revision proposed by an
42-27 open-enrollment charter school that has not been approved by the
43-1 State Board of Education before September 1, 2001, regardless of
43-2 the date on which the school proposed the revision.
43-3 (c) The change in law made by Section 12.126, Education
43-4 Code, as added by this Act, applies only to a cause of action that
43-5 accrues on or after September 1, 2001. A cause of action that
43-6 accrued before September 1, 2001, is governed by the law in effect
43-7 at the time the cause of action accrued, and that law is continued
43-8 in effect for that purpose.
43-9 SECTION 31. This Act takes effect September 1, 2001.