By:  Dutton                                                       H.B. No. 2224


A BILL TO BE ENTITLED
AN ACT
relating to open-enrollment charter schools. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 12.101(b), Education Code, is amended to read as follows: (b) The State Board of Education may grant a charter for an open-enrollment charter school only to an applicant that meets reasonable [any] financial, governing, and operational standards adopted by the commissioner under this subchapter and approved by the board. The board [State Board of Education] may not grant a total of more than 215 charters for an open-enrollment charter school. SECTION 2. Section 12.1052, Education Code, is amended to read as follows: Sec. 12.1052. APPLICABILITY OF LAWS RELATING TO [LOCAL GOVERNMENT] RECORDS. (a) With respect only to the retention of personnel records and records of a student enrolled in or formerly enrolled in [operation of] an open-enrollment charter school, an open-enrollment charter school is considered to be a local government for purposes of Subtitle C, Title 6, Local Government Code, and Subchapter J, Chapter 441, Government Code. A charter holder or an open-enrollment charter school is required to retain school records other than personnel records or records related to a student enrolled or formerly enrolled at the school only as provided by the Texas Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon's Texas Civil Statutes). (b) Records retained under Subsection (a) [of an open-enrollment charter school and records of a charter holder that relate to an open-enrollment charter school] are government records for all purposes under state law. (c) Any requirement in Subtitle C, Title 6, Local Government Code, or Subchapter J, Chapter 441, Government Code, that applies to a school district, the board of trustees of a school district, or an officer or employee of a school district applies to an open-enrollment charter school, the governing body of a charter holder, the governing body of an open-enrollment charter school, or an [officer or] employee of an open-enrollment charter school to the extent that the requirement relates to student or personnel records, except that the records required to be retained under Subsection (a) by [of] an open-enrollment charter school that ceases to operate shall be transferred in the manner prescribed by Subsection (d). (d) The records required to be retained under Subsection (a) by [of] an open-enrollment charter school that ceases to operate shall be transferred in the manner specified by the commissioner to a custodian designated by the commissioner. The commissioner may designate any appropriate entity to serve as custodian, including the agency, a regional education service center, or a school district. In designating a custodian, the commissioner shall ensure that the transferred records, including student and personnel records, are transferred to a custodian capable of: (1) maintaining the records; (2) making the records readily accessible to students, parents, former school employees, and other persons entitled to access; and (3) complying with applicable state or federal law restricting access to the records. (e) If the charter holder of an open-enrollment charter school that ceases to operate or an officer or employee of such a school refuses to transfer school records required to be retained under Subsection (a) in the manner specified by the commissioner under Subsection (d), the commissioner may ask the attorney general to petition a court for recovery of the records. If the court grants the petition, the court shall award attorney's fees and court costs to the state. SECTION 3. Section 12.114, Education Code, is amended to read as follows: Sec. 12.114. REVISION. (a) Except as otherwise provided by this section, a [A] revision of a charter of an open-enrollment charter school may be made only with the approval of the commissioner. (b) The governing body of an open-enrollment charter school may revise the school's charter without the approval of the commissioner as necessary to comply with a change in law. The governing body shall provide the commissioner written notice of the revision not later than the 14th day after the date the revision is approved by the governing body. (c) A revision of a charter of an open-enrollment charter school under Subsection (b) is final unless the commissioner provides the governing body of the school written notice of the commissioner's disapproval not later than the 30th day after the date the commissioner receives notice of the revision. With any notice of disapproval, the commissioner shall include a statement of the reasons for disapproval. (d) Subsections (b) and (c) do not apply to a revision of a charter of an open-enrollment charter school that relates to adding an additional campus or increasing the enrollment of the school. SECTION 4. The heading of Section 12.116, Education Code, is amended to read as follows: Sec. 12.116. PROCEDURE FOR CLOSURE, MODIFICATION, PLACEMENT ON PROBATION, REVOCATION, OR DENIAL OF RENEWAL. SECTION 5. Sections 12.116(a) and (c), Education Code, are amended to read as follows: (a) The commissioner shall adopt a procedure to be used for closing an open-enrollment charter school or modifying, placing on probation, revoking, or denying renewal of the charter of an open-enrollment charter school. (c) Chapter 2001, Government Code, applies [does not apply] to a hearing that is related to a modification, placement on probation, revocation, or denial of renewal under this subchapter. SECTION 6. Section 12.117, Education Code, is amended by amending Subsection (a) and adding Subsections (c) and (d) to read as follows: (a) For admission to an open-enrollment charter school, the governing body of the school shall: (1) require the applicant to complete and submit an application not later than a reasonable deadline the school establishes; and (2) except as otherwise provided by Subsection (c), on receipt of more acceptable applications for admission under this section than available positions in the school: (A) fill the available positions by lottery; or (B) subject to Subsection (b), fill the available positions in the order in which applications received before the application deadline were received. (c) An open-enrollment charter school may give preference in admissions to the school if the preference is based on: (1) reasonable academic, artistic, or other eligibility standards, including gender, that are consistent with the nonregulatory guidance provided by the United States Department of Education for the public charter schools program authorized by 20 U.S.C. Sections 7221-7221j, as amended, and specified in the school's charter application; and (2) standards consistent with the school's mission and purpose, as specified in the school's charter, and consistent with admissions practices in public schools. (d) In admitting students under this section, an open-enrollment charter school may not discriminate on the basis of a student's race, color, creed, religion, or national origin. SECTION 7. Section 12.119(b), Education Code, is amended to read as follows: (b) Each year within the period and in a form prescribed by the State Board of Education, each open-enrollment charter school shall file with the board the following information: (1) the name, address, and telephone number of each: (A) [officer and] member of the governing body of the open-enrollment charter school; [and] (B) principal, director, or other chief operating officer of the school; (C) assistant principal or assistant director of the school; and (D) person charged with managing the finances of the school; and (2) the amount of annual compensation the open-enrollment charter school pays to each: (A) [officer and] member of the governing body; (B) principal, director, or other chief operating officer; (C) assistant principal or assistant director; and (D) person charged with managing the finances of the school. SECTION 8. Sections 12.125 and 12.126, Education Code, are amended to read as follows: Sec. 12.125. CONTRACT FOR MANAGEMENT SERVICES. (a) Any contract, including a contract renewal, between an open-enrollment charter school and a management company proposing to provide management services to the school must require the management company to maintain all records related to the management services separately from any other records of the management company. (b) The commissioner may by rule adopt guidelines for a contract under this section between an open-enrollment charter school and a management company. (c) The initial contract under this section between an open-enrollment charter school and a management company does not require approval of the commissioner. Sec. 12.126. CERTAIN MANAGEMENT SERVICES CONTRACTS PROHIBITED. The commissioner may require the governing body of an open-enrollment charter school to prohibit or[,] deny renewal, suspension, or revocation of[, suspend, or revoke] a contract between the [an open-enrollment charter] school and a management company providing management services to the school if the commissioner determines that the management company has: (1) substantially failed to provide educational or related services in compliance with the company's contractual or other legal obligation to any [open-enrollment charter] school in this state or to any other similar school in another state; (2) substantially failed to protect the health, safety, or welfare of the students enrolled at an open-enrollment charter school served by the company; (3) violated this subchapter or a rule adopted under this subchapter; or (4) otherwise failed to comply with any material contractual or other material legal obligation to provide services to the school. SECTION 9. Section 22.083(a), Education Code, is amended to read as follows: (a) A school district, private school, open-enrollment charter school, regional education service center, or shared services arrangement may obtain from any law enforcement or criminal justice agency all criminal history record information that relates to a person: (1) whom the district, school, service center, or shared services arrangement intends to employ in any capacity; or (2) who has indicated, in writing, an intention to serve as a volunteer with the district, school, service center, or shared services arrangement. SECTION 10. Section E, Article 2.23A, Texas Non-Profit Corporation Act (Article 1396-2.23A, Vernon's Texas Civil Statutes), is amended to read as follows: E. This article does not apply to: (1) a corporation that solicits funds only from its members; (2) a corporation which does not intend to solicit and receive and does not actually raise or receive contributions from sources other than its own membership in excess of $10,000 during a fiscal year; (3) a proprietary school that has received a certificate of approval from the State Commissioner of Education, a public institution of higher education and foundations chartered for the benefit of such institutions or any component part thereof, a private institution of higher education with a certificate of authority to grant a degree issued by the Coordinating Board, Texas College and University System, or an elementary or secondary school, except that the article does apply to an open-enrollment charter school; (4) religious institutions which shall be limited to churches, ecclesiastical or denominational organizations, or other established physical places for worship at which religious services are the primary activity and such activities are regularly conducted; (5) a trade association or professional society whose income is principally derived from membership dues and assessments, sales, or services; (6) any insurer licensed and regulated by the State Board of Insurance; (7) an organization whose charitable activities relate to public concern in the conservation and protection of wildlife, fisheries, and allied natural resources; (8) an alumni association of a public or private institution of higher education in this state, provided that such association is recognized and acknowledged by the institution as its official alumni association. SECTION 11. This Act applies beginning with the 2003-2004 school year. SECTION 12. 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.