By Grusendorf                                          H.B. No. 972
         77R2650 CAS-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to charter schools and services provided to charter
 1-3     schools by regional education service centers.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Sections 8.051, 8.053, and 8.054, Education Code,
 1-6     are amended to read as follows:
 1-7           Sec. 8.051.  CORE SERVICES AND SERVICES TO IMPROVE
 1-8     PERFORMANCE. (a) Each regional education service center shall use
 1-9     funds distributed to the center under Section 8.121 to develop,
1-10     maintain, and deliver services identified under this section to
1-11     improve student, [and] school district, and open-enrollment and
1-12     college or university charter school performance.
1-13           (b)  Each regional education service center shall annually
1-14     develop and submit to the commissioner for approval a plan for
1-15     improvement.  Each plan must include the purposes and description
1-16     of the services the center will provide to:
1-17                 (1)  campuses identified as low-performing based on the
1-18     indicators adopted under Section 39.051;
1-19                 (2)  the lowest-performing campuses in the region;
1-20     [and]
1-21                 (3)  other campuses; and
1-22                 (4)  open-enrollment and college or university charter
1-23     schools.
1-24           (c)  Each regional education service center shall provide
 2-1     services that enable school districts and open-enrollment and
 2-2     college or university charter schools to operate more efficiently
 2-3     and economically.
 2-4           (d)  Each regional education service center shall maintain
 2-5     core services for purchase by school districts, [and] campuses, and
 2-6     open-enrollment and college or university charter schools.  The
 2-7     core services are:
 2-8                 (1)  training and assistance in teaching each subject
 2-9     area assessed under Section 39.023;
2-10                 (2)  training and assistance in providing each program
2-11     that qualifies for a funding allotment under Section 42.151,
2-12     42.152, 42.153, or 42.156;
2-13                 (3)  assistance specifically designed for a school
2-14     district rated academically unacceptable under Section 39.072(a) or
2-15     a campus or open-enrollment or college or university charter school
2-16     whose performance is considered unacceptable based on the
2-17     indicators adopted under Section 39.051;
2-18                 (4)  training and assistance to:
2-19                       (A)  teachers;
2-20                       (B)  [,] administrators of school districts,
2-21     campuses, and open-enrollment and college or university charter
2-22     schools;
2-23                       (C)  [,] members of district boards of trustees
2-24     and of  governing bodies of open-enrollment and college or
2-25     university charter schools;[,] and
2-26                       (D)  members of site-based decision-making
2-27     committees;
 3-1                 (5)  assistance specifically designed for a school
 3-2     district that is considered out of compliance with state or federal
 3-3     special education requirements, based on the agency's most recent
 3-4     compliance review of the district's special education programs; and
 3-5                 (6)  assistance in complying with state laws and rules.
 3-6           Sec. 8.053.  ADDITIONAL SERVICES.  In addition to the
 3-7     services provided under Section 8.051 and the initiatives
 3-8     implemented under Section 8.052, a regional education service
 3-9     center may:
3-10                 (1)  offer any service requested and purchased by any
3-11     school district, [or] campus, or open-enrollment or university or
3-12     college charter school in the state; and
3-13                 (2)  contract with a public or private entity for
3-14     services under this subchapter, including the provision of
3-15     continuing education courses and programs for educators.
3-16           Sec. 8.054.  PROHIBITION ON REGULATORY FUNCTION.  A regional
3-17     education service center may not perform a regulatory function
3-18     regarding a school district or open-enrollment or university or
3-19     college charter school.  This section does not prohibit a regional
3-20     education service center from offering training or other assistance
3-21     to a school district in complying with a state or federal law,
3-22     rule, or regulation.
3-23           SECTION 2.  Section 8.121(a), Education Code, is amended to
3-24     read as follows:
3-25           (a)  Regional education service centers receive state
3-26     financial support for services provided under Section 8.051 from
3-27     money appropriated for the Foundation School Program. The
 4-1     commissioner shall distribute money to each regional education
 4-2     service center for basic costs of providing those services
 4-3     according to an annual allotment set by the commissioner based on:
 4-4                 (1)  the minimum amount of money necessary for the
 4-5     operation of a center;
 4-6                 (2)  an additional amount of money that reflects the
 4-7     size and number of campuses and open-enrollment and university or
 4-8     college charter schools served by the center under Section 8.051;
 4-9     and
4-10                 (3)  an additional amount of money that reflects the
4-11     impact of the geographic size of a center's service area on the
4-12     cost of providing services under Section 8.051.
4-13           SECTION 3. Section 12.110(b), Education Code, is amended to
4-14     read as follows:
4-15           (b)  The application form must provide for including the
4-16     information required under Section 12.111 to be contained in a
4-17     charter.  The application form must also provide for including the
4-18     name of each proposed member of the governing body of the
4-19     open-enrollment charter school and any family relationship that
4-20     exists between proposed members.  If the board determines that the
4-21     proposed governing body has so few members that persons with close
4-22     family relationships serving on the governing body could constitute
4-23     a quorum, to avoid that occurrence, the board shall require the
4-24     addition of a sufficient number of additional members who have no
4-25     family relationship with any other proposed member of the governing
4-26     body.  The board by rule shall establish which family relationships
4-27     would require additional members to be added to the governing body
 5-1     of an open-enrollment charter school for purposes of this section
 5-2     and Section 12.121.
 5-3           SECTION 4. Section 12.118(b), Education Code, is amended to
 5-4     read as follows:
 5-5           (b)  An evaluation under this section must include
 5-6     consideration of the following items before implementing the
 5-7     charter and after implementing the charter:
 5-8                 (1)  students' scores on assessment instruments
 5-9     administered under Subchapter B, Chapter 39;
5-10                 (2)  student attendance;
5-11                 (3)  students' grades;
5-12                 (4)  any improvement in student performance;
5-13                 (5)  incidents involving student discipline;
5-14                 (6) [(5)]  socioeconomic data on students' families;
5-15                 (7) [(6)]  parents' satisfaction with their children's
5-16     schools; and
5-17                 (8) [(7)]  students' satisfaction with their schools.
5-18           SECTION 5. Subchapter D, Chapter 12, Education Code, is
5-19     amended by adding Section 12.121 to read as follows:
5-20           Sec. 12.121.  INFORMATION ON MEMBERS OF GOVERNING BODY;
5-21     NUMBER OF MEMBERS.  At times and in the manner prescribed by State
5-22     Board of Education rule, each governing body of an open-enrollment
5-23     charter school shall report to the board the name of each member of
5-24     the governing body and any family relationship between members.  If
5-25     the board determines that the governing body has so few members
5-26     that persons serving on the governing body with close family
5-27     relationships could constitute a quorum, the board shall require
 6-1     action be taken as prescribed under Section 12.110(b).
 6-2           SECTION 6. Chapter 12, Education Code, is amended by adding
 6-3     Subchapter E to read as follows:
 6-4               SUBCHAPTER E.  COLLEGE OR UNIVERSITY CHARTER SCHOOLS
 6-5           Sec. 12.151.  DEFINITIONS.  In this subchapter:
 6-6                 (1)  "Governing board" means the body charged with
 6-7     policy direction of a public senior college or university.
 6-8                 (2)  "Public senior college or university" has the
 6-9     meaning assigned by Section 61.003.
6-10           Sec. 12.152.  AUTHORIZATION.  In accordance with this
6-11     subchapter, a governing board may grant a charter on application of
6-12     an organization that is exempt from taxation under Section
6-13     501(c)(3), Internal Revenue Code of 1986, for a college or
6-14     university charter school to operate in a facility of:
6-15                 (1)  the college or university;
6-16                 (2)  a commercial or nonprofit entity; or
6-17                 (3)  a school district, including a home-rule school
6-18     district.
6-19           Sec. 12.153.  APPLICABILITY OF CERTAIN PROVISIONS.  Sections
6-20     12.101(c) and (d), 12.102-12.109, 12.111, 12.117, and 12.120 apply
6-21     to a college or university charter school as though the college or
6-22     university charter school were an open-enrollment charter school.
6-23     Sections 12.110, 12.113-12.116, 12.118, 12.119, and 12.121 apply to
6-24     a college or university charter school as though the college or
6-25     university charter school were an open-enrollment charter school,
6-26     except the governing board granting the charter shall assume the
6-27     powers and duties assigned to the State Board of Education under
 7-1     those sections.
 7-2           Sec. 12.154.  FORM OF CHARTER.  A charter for a college or
 7-3     university charter school must be in the form of a written contract
 7-4     signed by the presiding officer of the governing board and the
 7-5     chief operating officer of the school.
 7-6           Sec. 12.155.  FUNDING.  To cover the costs of administration
 7-7     under this subchapter, a public senior college or university is
 7-8     entitled to three percent of the state and local funding received
 7-9     under Sections 12.106 and 12.107 by each school to which the
7-10     college or university has granted a charter under this subchapter.
7-11     The commissioner shall adopt rules as necessary to administer this
7-12     section.
7-13           SECTION 7.  Section 12.101(b), Education Code, is repealed.
7-14           SECTION 8.  This Act takes effect September 1, 2001.