C.S.H.B. 2224 78(R)    BILL ANALYSIS


C.S.H.B. 2224
By: Dutton
Public Education
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

On May 30, 1995, the Texas Legislature authorized the creation of
open-enrollment charter schools to foster competition and innovation in
Texas public schools as a whole. Financial troubles and statutory
ambiguities contributed to the failures of several charter schools and
caused the Legislature to slow the growth of charter schools in 2001 (77th
Regular Session, H.B. 6) and adopt stronger accountability and oversight
provisions regarding charter school operation. Since that time, the vast
majority of open enrollment charter schools have made progress in
providing quality instruction to students who often performed poorly in
traditional public schools. Several of the provisions adopted in 2001
hinder the ability of open enrollment charter schools from accomplishing
their mission. Implementation of certain charter school regulations has
further strained the operation of many open enrollment charter schools.  

House Bill 2224 amends certain provisions of the Education Code regulating
open enrollment charter schools. 

RULEMAKING AUTHORITY

It is the committee's opinion that rulemaking authority is expressly
granted to the commissioner of education in SECTION 12 (Section 12.125,
Education Code) of this bill. 


ANALYSIS

C.S.H.B. 2224  amends the Education Code to require the charter applicant
meet reasonable standards adopted by the commissioner of education
(commissioner) and defines an officer of an open-enrollment charter school
to be a member of the governing body, who holds the position of presiding
officer, president, vice-president,  or another similar position. The bill
requires a charter school to retain school records, other than personnel
and student records, only as provided by the Texas Non-Profit Corporation
Act.  
            
The bill permits a charter holder to revise the school's charter without
the approval of the commissioner if the change is needed to comply with
law. The bill requires notice of the change to be made within 14 days of
the action and is final unless the commissioner responds within 30 days of
receipt of notice of revision. The bill provides that if revision is
disapproved, the commissioner shall provide reasons for disapproval. The
bill applies Chapter 2001, Government Code to a hearing for the purpose of
modification, placement on probation, revocation, or denial of charter. 

The bill permits charter schools to give preference in admissions if based
on standards that conform with the Federal Non-Regulatory Guidance
authorized by 20 U.S.C. Sections 7221-7221j, or is consistent with the
school's mission as specified in the charter and consistent with admission
practices in public schools. The bill prohibits a charter school from
discriminating on the basis of race, color, creed, religion, or national
origin.  

The bill removes conviction of a misdemeanor involving moral turpitude as
an impediment for employment as a charter school governing body member.  

The bill conforms liability of a member of the governing body of a charter
holder or charter school for breach of fiduciary duty to that of a member
of a school district board of trustees.  In addition,  the bill conforms
bringing lawsuits against board members to the same extent of a school
district board of trustees. 

The bill authorizes the commissioner to adopt guidelines for contracts
between open enrollment charter schools and management companies, but
specifies that such a contract does not require the approval of the
commissioner. In addition, the bill authorizes the commissioner to require
an open enrollment charter school to consider denying, revoking, or
suspending a contact between the school and management companies based on
certain requirements. 

The bill includes an open-enrollment charter school as an entity that is
authorized to obtain criminal history record information.  

The bill repeals 12.122(c) relating to the liability of members of
governing body of charter school, and repeals 22.083(b) relating to
obtaining criminal history records.  

This Act applies beginning with the 2003-2004 school year.


EFFECTIVE DATE

Upon passage, or, if the Act does not receive the necessary vote, the Act
takes effect September 1, 2003. 


COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 2224 modifies the original by deleting the transportation
allotment to open enrollment charter schools in the same manner as a
school district. C.S.H.B. 2224 modifies the original by deleting  open
enrollment charter schools from the list of entities exempted from fuel
tax. C.S.H.B. 2224 modifies the original by adding provisions relating to
the governing body, admissions, and charter of an open-enrollment charter
school.