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