R E S O L U T I O N
 1-1           BE IT RESOLVED by the House of Representatives of the State
 1-2     of Texas, 77th Legislature, Regular Session, 2001, That House Rule
 1-3     13, Section 9(a), be suspended in part as provided by House Rule
 1-4     13, Section 9(f), to enable the conference committee appointed to
 1-5     resolve the differences on H.B. No. 6, relating to open-enrollment
 1-6     charter schools, to consider and take action on the following
 1-7     matters:
 1-8           (1)  House Rule 13, Section 9(a)(4) is suspended to permit
 1-9     the committee to add new provisions to the bill to read as follows:
1-10           SECTION 2. Section 12.101(b), Education Code, is amended to
1-11     read as follows:
1-12           (b)  The State Board of Education may grant a charter for an
1-13     open-enrollment charter school only to an applicant that meets any
1-14     financial, governing, and operational standards adopted by the
1-15     commissioner under this subchapter.  The State Board of Education
1-16     may not grant a total of more than 215 [20] charters for an
1-17     open-enrollment charter school.
1-18           Explanation: This addition is necessary to require that a
1-19     charter granted for an open-enrollment charter school must comply
1-20     with standards adopted by the commissioner of education and to
1-21     raise the limit on the number of charters that may be granted.
1-22           (2)  House Rule 13, Section 9(a)(4) is suspended to permit
1-23     the committee to add new provisions to the bill to read as follows:
1-24           SECTION 4. Section 12.103, Education Code, is amended to read
 2-1     as follows:
 2-2           Sec. 12.103.  GENERAL APPLICABILITY OF LAWS, [AND] RULES, AND
 2-3     ORDINANCES TO OPEN-ENROLLMENT CHARTER SCHOOL. (a)  Except as
 2-4     provided by Subsection (b) or (c), an [An] open-enrollment charter
 2-5     school is subject to federal and state laws and rules governing
 2-6     public schools and to municipal zoning ordinances governing public
 2-7     schools.
 2-8           (b)  An[, except that an] open-enrollment charter school is
 2-9     subject to this code and rules adopted under this code only to the
2-10     extent the applicability to an open-enrollment charter school of a
2-11     provision of this code or a rule adopted under this code is
2-12     specifically provided.
2-13           (c)  Notwithstanding Subsection (a), a campus of an
2-14     open-enrollment charter school located in whole or in part in a
2-15     municipality with a population of 20,000 or less is not subject to
2-16     a municipal zoning ordinance governing public schools.
2-17           Explanation:  These additions are necessary to subject
2-18     certain open-enrollment charter schools to municipal zoning
2-19     ordinances governing public schools.
2-20           (3)  House Rule 13, Section 9(a)(4) is suspended to permit
2-21     the committee to add a new subsection to Section 12.104, Education
2-22     Code, as amended by the bill, to read as follows:
2-23           (d)  The commissioner may by rule permit an open-enrollment
2-24     charter school to voluntarily participate in any state program
2-25     available to school districts, including a purchasing program, if
2-26     the school complies with all terms of the program.
2-27           Explanation:  This addition is necessary to authorize the
 3-1     commissioner of education by rule to permit open-enrollment charter
 3-2     schools to participate in state programs available to school
 3-3     districts.
 3-4           (4)  House Rule 13, Section 9(a)(4) is suspended to permit
 3-5     the committee to add new provisions to the bill to read as follows:
 3-6           Sec. 12.1054.  APPLICABILITY OF LAWS RELATING TO CONFLICT OF
 3-7     INTEREST. (a)  A member of the governing body of a charter holder,
 3-8     a member of the governing body of an open-enrollment charter
 3-9     school, or an officer of an open-enrollment charter school is
3-10     considered to be a local public official for purposes of Chapter
3-11     171, Local Government Code.  For purposes of that chapter:
3-12                 (1)  a member of the governing body of a charter holder
3-13     or a member of the governing body or officer of an open-enrollment
3-14     charter school is considered to have a substantial interest in a
3-15     business entity if a person related to the member or officer in the
3-16     third degree by consanguinity or affinity, as determined under
3-17     Chapter 573, Government Code, has a substantial interest in the
3-18     business entity under Section 171.002, Local Government Code;
3-19                 (2)  a member of the governing body or officer of a
3-20     charter school rated as academically acceptable or higher under
3-21     Chapter 39 for at least two of the preceding three school years, or
3-22     a member of the governing body of the charter holder of such a
3-23     school, is not subject to the restrictions of Section 171.009,
3-24     Local Government Code; and
3-25                 (3)  notwithstanding any provision of that chapter, an
3-26     employee of an open-enrollment charter school rated as academically
3-27     acceptable or higher under Chapter 39 for at least two of the
 4-1     preceding three school years may serve as a member of the governing
 4-2     body of the charter holder or the governing body of the school if
 4-3     the employees do not constitute a quorum of the governing body or
 4-4     any committee of the governing body.
 4-5           (b)  To the extent consistent with this section, a
 4-6     requirement in a law listed in this section that applies to a
 4-7     school district or the board of trustees of a school district
 4-8     applies to an open-enrollment charter school, the governing body of
 4-9     a charter holder, or the governing body of an open-enrollment
4-10     charter school.
4-11           Explanation:  This addition is necessary to provide an
4-12     exception from the requirements of certain laws relating to
4-13     conflicts of interest for certain open-enrollment charter schools
4-14     rated as academically acceptable or higher during a specified
4-15     period.
4-16           (5)  House Rule 13, Section 9(a)(4) is suspended to permit
4-17     the committee to add a new subsection to Section 12.106, Education
4-18     Code, as amended by the bill, to read as follows:
4-19           (c)  The commissioner may adopt rules to provide and account
4-20     for state funding of open-enrollment charter schools under this
4-21     section.  A rule adopted under this section may be similar to a
4-22     provision of this code that is not similar to Section 12.104(b) if
4-23     the commissioner determines that the rule is related to financing
4-24     of open-enrollment charter schools and is necessary or prudent to
4-25     provide or account for state funds.
4-26           Explanation:  This addition is necessary to authorize the
4-27     commissioner of education to adopt rules related to the financing
 5-1     of open-enrollment charter schools and necessary or prudent in
 5-2     accounting for state funds received by the schools.
 5-3           (6)  House Rule 13, Section 9(a)(4) is suspended to permit
 5-4     the committee to add new provisions to the bill to read as follows:
 5-5           SECTION 10. Sections 12.114-12.116, Education Code, are
 5-6     amended to read as follows:
 5-7           Sec. 12.114.  REVISION. A revision of a charter of an
 5-8     open-enrollment charter school may be made only with the approval
 5-9     of the commissioner [State Board of Education].
5-10           Sec. 12.115.  BASIS FOR MODIFICATION, PLACEMENT ON PROBATION,
5-11     REVOCATION, OR DENIAL OF RENEWAL. (a)  The commissioner [State
5-12     Board of Education] may modify, place on probation, revoke, or deny
5-13     renewal of the charter of an open-enrollment charter school if the
5-14     commissioner [board] determines that the charter holder [person
5-15     operating the school]:
5-16                 (1)  committed a material violation of the charter,
5-17     including failure to satisfy accountability provisions prescribed
5-18     by the charter;
5-19                 (2)  failed to satisfy generally accepted accounting
5-20     standards of fiscal management;
5-21                 (3)  failed to protect the health, safety, or welfare
5-22     of the students enrolled at the school; or
5-23                 (4) [(3)]  failed to comply with this subchapter or
5-24     another applicable law or rule.
5-25           (b)  The action the commissioner [board] takes under
5-26     Subsection (a) shall be based on the best interest of the school's
5-27     students, the severity of the violation, and any previous violation
 6-1     the school has committed.
 6-2           Sec. 12.116.  PROCEDURE FOR MODIFICATION, PLACEMENT ON
 6-3     PROBATION, REVOCATION, OR DENIAL OF RENEWAL. (a)  The commissioner
 6-4     [State Board of Education] shall adopt a procedure to be used for
 6-5     modifying, placing on probation, revoking, or denying renewal of
 6-6     the charter of an open-enrollment charter school.
 6-7           (b)  The procedure adopted under Subsection (a) must provide
 6-8     an opportunity for a hearing to the charter holder [person
 6-9     operating the open-enrollment charter school] and to parents and
6-10     guardians of students in the school.  A hearing under this
6-11     subsection must be held at the facility at which the program is
6-12     operated.
6-13           (c)  Chapter 2001, Government Code, does not apply to a
6-14     hearing that is related to a modification, placement on probation,
6-15     revocation, or denial of renewal under this subchapter.
6-16           Explanation:  These additions are necessary to authorize the
6-17     commissioner of education to modify, place on probation, revoke, or
6-18     deny the renewal of an open-enrollment charter school's charter and
6-19     to require the commissioner to adopt a procedure to be used for
6-20     taking such action.
6-21           (7)  House Rule 13, Section 9(a)(4) is suspended to permit
6-22     the committee to add new provisions to the bill to read as follows:
6-23           SECTION 13. Sections 12.118(a) and (c), Education Code, are
6-24     amended to read as follows:
6-25           (a)  The commissioner [board] shall designate an impartial
6-26     organization with experience in evaluating school choice programs
6-27     to conduct an annual evaluation of open-enrollment charter schools.
 7-1           (c)  The evaluation of open-enrollment charter schools must
 7-2     also include an evaluation of:
 7-3                 (1)  the costs of instruction, administration, and
 7-4     transportation incurred by open-enrollment charter schools; [and]
 7-5                 (2)  the effect of open-enrollment charter schools on
 7-6     school districts and on teachers, students, and parents in those
 7-7     districts; and
 7-8                 (3)  other issues, as determined by the commissioner.
 7-9           Explanation:  These additions are necessary to authorize the
7-10     commissioner of education to designate an organization to evaluate
7-11     open-enrollment charter schools on issues determined by the
7-12     commissioner.
7-13           (8)  House Rule 13, Section 9(a)(4) is suspended to permit
7-14     the committee to add a new provision to the bill to read as
7-15     follows:
7-16           Sec. 12.130. NOTICE OF TEACHER QUALIFICATIONS. Each
7-17     open-enrollment charter school shall provide to the parent or
7-18     guardian of each student enrolled in the school written notice of
7-19     the qualifications of each teacher employed by the school.
7-20           Explanation:  This addition is necessary to require
7-21     open-enrollment charter schools to provide students' parents with
7-22     notice of teacher qualifications.
7-23           (9)  House Rule 13, Section 9(a)(4) is suspended to permit
7-24     the committee to add new provisions to the bill to read as follows:
7-25           SECTION 24. Section 39.073(a), Education Code, is amended to
7-26     read as follows:
7-27           (a)  The agency shall annually review the performance of each
 8-1     district and campus on the indicators adopted under Sections
 8-2     39.051(b)(1) through (7) and determine if a change in the
 8-3     accreditation status of the district is warranted.  The
 8-4     commissioner may determine how all indicators adopted under Section
 8-5     39.051(b) may be used to determine accountability ratings and to
 8-6     select districts and campuses for acknowledgment.
 8-7           SECTION 25. Subchapter D, Chapter 39, Education Code, is
 8-8     amended by adding Section 39.0731 to read as follows:
 8-9           Sec. 39.0731.  ALTERNATIVE ACCREDITATION STATUS PILOT PROGRAM
8-10     FOR CERTAIN DISTRICTS, CAMPUSES, AND OPEN-ENROLLMENT CHARTER
8-11     SCHOOLS. (a)  The commissioner may by rule develop an alternative
8-12     accreditation status pilot program for the 2001-2002 school year
8-13     that is designed to reflect the academic performance and
8-14     improvement of students enrolled at a district, campus, or
8-15     open-enrollment charter school that:
8-16                 (1)  primarily serves at-risk students, as defined in
8-17     Section 29.081, as determined by the commissioner; or
8-18                 (2)  is not required to administer assessment
8-19     instruments under Section 39.023.
8-20           (b)  The pilot program:
8-21                 (1)  must include an analysis of student performance
8-22     and improvement on indicators determined by the commissioner under
8-23     Section 39.073(a); and
8-24                 (2)  may include an analysis of student performance on
8-25     an assessment instrument authorized under Section 28.006.
8-26           (c)  Notwithstanding participation in the pilot program, a
8-27     district, campus, or open-enrollment charter school that
 9-1     participates in the pilot program also continues to receive the
 9-2     accountability rating that the district, campus, or school would
 9-3     otherwise receive under this chapter and is subject to any
 9-4     applicable sanctions under this chapter based on that rating.
 9-5           (d)  Not later than December 1, 2002, the commissioner shall
 9-6     compile the results of the pilot program and any recommendations in
 9-7     a report and submit the report to the governor, lieutenant
 9-8     governor, speaker of the house of representatives, and the
 9-9     presiding officer of each standing committee of the senate and
9-10     house of representatives having primary jurisdiction over public
9-11     education.
9-12           (e)  This section expires January 1, 2003.
9-13           Explanation:  These additions are necessary to authorize the
9-14     commissioner of education to consider additional performance
9-15     indicators for accountability purposes and to develop an
9-16     alternative accreditation status pilot program for school
9-17     districts, campuses, and open-enrollment charter schools.
                                                                      Dunnam
                                             _______________________________
                                                   Speaker of the House
               I certify that H.R. No. 1401 was adopted by the House on May
         27, 2001, by a non-record vote.
                                             _______________________________
                                                 Chief Clerk of the House