78R3930 BDH-D

By:  Madden                                                       H.B. No. 859


A BILL TO BE ENTITLED
AN ACT
relating to home-rule school districts. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Chapter 12, Education Code, is amended by adding Subchapter B to read as follows:
SUBCHAPTER B. HOME-RULE SCHOOL DISTRICT CHARTER
Sec. 12.011. AUTHORIZATION AND STATUS. (a) In accordance with this subchapter, a school district may adopt a home-rule school district charter under which the district will operate. (b) A school district's adoption, amendment, or rescission of a home-rule school district charter does not affect: (1) the district's boundaries; or (2) any taxes or bonds of the district authorized before the effective date of the charter adoption, amendment, or rescission. Sec. 12.012. APPLICABILITY OF LAWS AND RULES TO HOME-RULE SCHOOL DISTRICT. (a) A home-rule school district is subject to federal and state laws and rules governing school districts, except that a home-rule school district is subject to: (1) this code only to the extent that the applicability to a home-rule school district of a provision of this code is specifically provided; (2) a rule adopted under this code by the State Board of Education or the commissioner only if the code provision authorizing the rule specifically applies to a home-rule school district and, in the case of a board rule, the rule is approved on final adoption by a two-thirds record vote of the membership of the board; and (3) all requirements of federal law and applicable court orders relating to eligibility for and the provision of special education and bilingual programs. (b) An employee of a home-rule school district who qualifies for membership in the Teacher Retirement System of Texas shall be covered under the system in the same manner and to the same extent as a qualified employee employed by an independent school district is covered. Sec. 12.013. APPLICABILITY OF TITLE. (a) A home-rule school district has the powers and entitlements granted to school districts and school district boards of trustees under this title, including taxing authority. (b) A home-rule school district is subject to: (1) a provision of this title establishing a criminal offense; (2) a provision of this title relating to limitations on liability; and (3) a prohibition, restriction, or requirement, as applicable, imposed by this title or a rule adopted under this title, relating to: (A) the Public Education Information Management System (PEIMS) to the extent necessary to monitor compliance with this subchapter as determined by the commissioner; (B) criminal history records under Subchapter C, Chapter 22; (C) student admissions; (D) school attendance under Sections 25.085 and 25.086; (E) bilingual education under Section 29.056, if the district offers a bilingual education or special language program; (F) computation and distribution of state aid under Chapters 31, 42, and 43; (G) extracurricular activities under Section 33.081; (H) health and safety under Sections 38.001, 38.009, 38.0095, and 38.010; (I) public school accountability under Chapter 39; (J) equalized wealth under Chapter 41; and (K) a bond or other obligation or tax rate under Chapters 42, 43, and 45. Sec. 12.014. FRAMING OF HOME-RULE SCHOOL DISTRICT CHARTER. (a) The board of trustees of a school district shall frame a home-rule school district charter if: (1) the board receives a petition requesting that the board frame a home-rule school district charter and the petition is signed by a number of registered voters of the district equal to at least five percent of the number of votes received in the district by all candidates for governor in the most recent gubernatorial general election; or (2) a majority of the total membership of the board adopts a resolution to frame a home-rule school district charter. (b) The board of trustees shall complete a proposed charter not later than the first anniversary of the date of the petition or resolution described by Subsection (a). Sec. 12.015. CONTENT. Each home-rule school district charter must: (1) describe the educational program to be offered; (2) provide that continuation of the home-rule school district charter is contingent on: (A) acceptable student performance on assessment instruments adopted under Subchapter B, Chapter 39; and (B) compliance with any accountability provision specified by the charter, by a deadline or at intervals specified by the charter; (3) specify any basis, in addition to a basis specified by this subchapter, on which the charter may be placed on probation or revoked; (4) describe the governing structure of the district and campuses; (5) specify a procedure that the district will follow to ensure the health and safety of students and employees; (6) describe the process by which the district will adopt an annual budget; (7) describe the manner in which an annual audit of financial and programmatic operations of the district is to be conducted, including the manner in which the district will provide information necessary for the district to participate in the Public Education Information Management System (PEIMS) to the extent required by this subchapter; and (8) include any other provision the board of trustees of the school district considers necessary. Sec. 12.016. LEGAL REVIEW. As soon as practicable after the board of trustees of a school district completes a proposed home-rule school district charter, the school district's legal counsel shall review the proposed charter to ensure that the proposed charter complies with any applicable laws and shall recommend to the board any modifications necessary. Sec. 12.017. CHARTER ELECTION. (a) As soon as practicable after the legal review under Section 12.016, the board of trustees of the district shall order an election on the proposed charter. (b) The proposed charter shall be submitted to the voters of the district at an election to be held on the first uniform election date that occurs at least 45 days after the date on which the board of trustees orders the election. (c) At least three copies of the proposed charter must be available in the office of each school campus in the district and at the district's central administrative office between the date of the election order and election day. Notice of the election must include a statement of where and how copies may be obtained or viewed. A summary of the content of the proposed charter shall be attached to each copy. The summary also shall be made available to school district employees, parents, community members, and members of the media. (d) The ballot shall be printed to permit voting for or against the proposition "Whether the (name of school district) School District shall be governed under the home-rule school district charter, which is proposed by the board of trustees and under which only certain laws and rules apply to the district." Sec. 12.018. CHARTER AMENDMENT. (a) The governing body of a home-rule school district on its own motion may order an election on a proposed charter amendment that complies with this subchapter, including a proposed amendment that rescinds the charter. (b) The governing body shall order an election on a proposed charter amendment that complies with this subchapter, including a proposed amendment that rescinds the charter, if a petition submitted to the governing body proposing the charter amendment is signed by a number of registered voters of the district equal to at least five percent of the number of votes received in the district by all candidates for governor in the most recent gubernatorial general election. (c) An election under this section shall be held on the first uniform election date that occurs at least 45 days after the date the election is ordered. (d) Notice of the election must include a substantial copy of the proposed charter amendment. (e) A charter amendment may not contain more than one subject. (f) The ballot shall be prepared so that a voter may approve or disapprove any one or more charter amendments without having to approve or disapprove all of the charter amendments. (g) The governing body may not order an election on a proposed charter amendment earlier than the second anniversary of the date of any previous election to amend the charter. Sec. 12.019. ADOPTION OF CHARTER OR CHARTER AMENDMENT. (a) A proposed home-rule school district charter or a proposed charter amendment, including an amendment that rescinds the charter, is adopted if approved by a majority of the qualified voters of the district voting at an election held for that purpose. (b) A charter or charter amendment shall specify an effective date and takes effect according to its terms when the governing body of the school district enters an order declaring that the charter or charter amendment is adopted. The governing body shall enter an order not later than the 10th day after the date the canvass of the election returns is completed. Sec. 12.020. CERTIFICATION OF CHARTER OR CHARTER AMENDMENT. (a) As soon as practicable after a school district adopts a home-rule school district charter or charter amendment, the president of the board of trustees shall certify to the secretary of state a copy of the charter or amendment showing the approval by the voters of the district. (b) The secretary of state shall file and record the certification in the secretary of state's office. Sec. 12.021. EFFECT OF RECORDING CHARTER OR CHARTER AMENDMENT. A recorded charter or charter amendment is a public act. A court shall take judicial notice of a recorded charter or charter amendment and proof is not required of its provisions. Sec. 12.022. CHANGE IN GOVERNING BODY. If the adoption, amendment, rescission, or revocation of a home-rule school district charter changes the structure of the governing body of the school district, the members of the governing body serving on the date the adoption, amendment, rescission, or revocation takes effect continue in office until their successors are chosen and have qualified for office. Sec. 12.023. BASIS FOR PLACEMENT ON PROBATION OR REVOCATION OF CHARTER. (a) The State Board of Education may place on probation or revoke a home-rule school district charter of a school district if the board determines that the district: (1) committed a material violation of the charter; (2) failed to satisfy generally accepted accounting standards of fiscal management; or (3) failed to comply with this subchapter, another law, or a state agency rule. (b) The action the board takes under Subsection (a) shall be based on the best interest of district students, the severity of the violation, and any previous violation the district has committed. (c) A district whose home-rule school district charter is revoked or rescinded under this subchapter shall operate under the other provisions of Title 1 and this title that apply to school districts. Sec. 12.024. PROCEDURE FOR PLACEMENT ON PROBATION OR REVOCATION. (a) The State Board of Education by rule shall adopt a procedure to be used for placing on probation or revoking a home-rule school district charter. (b) The procedure adopted under Subsection (a) must provide an opportunity for a hearing to the district and to parents of district students. A hearing under this subsection must be held in the district. SECTION 2. Subchapter B, Chapter 12, Education Code, as added by Chapter 260, Acts of the 74th Legislature, Regular Session, 1995, is repealed. SECTION 3. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2003.