Amend HB 3220 (Senate committee printing) by striking all
below the enacting clause and substituting the following:
SECTION 1. Section 12.101, Education Code, is amended by
amending Subsection (b) and adding Subsection (b-1) to read as
follows:
(b) The State Board of Education, after thoroughly
investigating and evaluating an applicant, may grant a charter for
an open-enrollment charter school only to an applicant that meets
any financial, governing, curriculum development and
implementation, and operational standards adopted by the
commissioner under this subchapter. The State Board of Education
may not grant [a total of] more than 10 new [215] charters for an
open-enrollment charter school each state fiscal year.
(b-1) A charter holder may establish one or more new
open-enrollment charter school campuses under a charter without
applying for authorization from the State Board of Education if:
(1) 90 percent or more of the open-enrollment charter
school campuses operating under the charter have been rated as
academically acceptable or higher under Subchapter D, Chapter 39,
for the two preceding school years;
(2) either no campus operating under the charter has
been rated as academically unacceptable for any two of the three
preceding school years or such a campus has been closed;
(3) the charter holder satisfies generally accepted
accounting standards of fiscal management;
(4) the charter holder provides written notice, in the
time, manner, and form provided by commissioner rule, to the State
Board of Education and the commissioner of the establishment of any
campus under this subsection; and
(5) not later than the 90th day after the date the
charter holder provides written notice under Subdivision (4), the
commissioner does not provide written notice to the charter holder
disapproving a new campus under this section.
SECTION 2. Subchapter D, Chapter 12, Education Code, is
amended by adding Section 12.1011 to read as follows:
Sec. 12.1011. AUTHORIZATION FOR GRANT OF CHARTERS FOR
SCHOOLS PRIMARILY SERVING STUDENTS WITH DISABILITIES. (a) The
State Board of Education may grant under Section 12.101 a charter on
the application of an eligible entity for an open-enrollment
charter school intended primarily to serve students with
disabilities, including students with autism. A charter granted
under this section is not considered for purposes of the limit on
the number of open-enrollment charter schools imposed by Section
12.101(b).
(b) For purposes of the applicability of state and federal
law, including a law prescribing requirements concerning students
with disabilities, an open-enrollment charter school described by
Subsection (a) is considered the same as any other school for which
a charter is granted under Section 12.101.
(c) To the fullest extent permitted under federal law, a
parent of a student with a disability may choose to enroll the
parent's child in an open-enrollment charter school described by
Subsection (a) regardless of whether a disproportionate number of
the school's students are students with disabilities.
(d) This section does not authorize an open-enrollment
charter school to discriminate in admissions or in the services
provided based on the presence, absence, or nature of an
applicant's or student's disability.
SECTION 3. Section 12.104, Education Code, is amended by
amending Subsection (b) and adding Subsection (e) to read as
follows:
(b) An open-enrollment charter school is subject to:
(1) a provision of this title establishing a criminal
offense; and
(2) 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) reading instruments and accelerated reading
instruction programs under Section 28.006;
(D) satisfactory performance on assessment
instruments and to accelerated instruction under Section 28.0211;
(E) high school graduation under Section 28.025;
(F) special education programs under Subchapter
A, Chapter 29;
(G) bilingual education under Subchapter B,
Chapter 29;
(H) prekindergarten programs under Subchapter E,
Chapter 29;
(I) extracurricular activities under Section
33.081;
(J) discipline management practices or behavior
management techniques under Section 37.0021;
(K) health and safety under Chapter 38;
(L) public school accountability under
Subchapters B, C, D, and G, Chapter 39, except as provided by
Subsection (e);
(M) the requirement under Section 21.006 to
report an educator's misconduct; and
(N) intensive programs of instruction under
Section 28.0213.
(e) In computing dropout and completion rates for an
open-enrollment charter school, the commissioner may:
(1) exclude students who are ordered by a court to
attend a high school equivalency certificate program but who have
not yet earned a high school equivalency certificate; and
(2) exclude students who were previously reported to
the state as dropouts.
SECTION 4. Section 12.1056, Education Code, is amended to
read as follows:
Sec. 12.1056. IMMUNITY FROM LIABILITY. (a) In matters
related to operation of an open-enrollment charter school, an
open-enrollment charter school is immune from liability to the same
extent as a school district, and its employees and volunteers are
immune from liability to the same extent as school district
employees and volunteers. A member of the governing body of an
open-enrollment charter school or of a charter holder is immune
from liability to the same extent as a school district trustee.
(b) An open-enrollment charter school is a governmental
unit as defined by Section 101.001, Civil Practice and Remedies
Code, and is subject to liability only as provided by Chapter 101,
Civil Practice and Remedies Code, and only in the manner that
liability is provided by that chapter for a school district.
(c) An open-enrollment charter school is a local government
as defined by Section 102.001, Civil Practice and Remedies Code,
and a payment on a tort claim must comply with Chapter 102, Civil
Practice and Remedies Code.
SECTION 5. Subchapter D, Chapter 12, Education Code, is
amended by adding Section 12.1058 to read as follows:
Sec. 12.1058. APPLICABILITY OF OTHER LAWS. (a) An
open-enrollment charter school is considered to be:
(1) a local government for purposes of Chapter 791,
Government Code;
(2) a local government for purposes of Chapter 2259,
Government Code, except that an open-enrollment charter school may
not issue public securities as provided by Section 2259.031(b),
Government Code; and
(3) a political subdivision for purposes of Chapter
172, Local Government Code.
(b) An open-enrollment charter school may elect to extend
workers' compensation benefits to employees of the school through
any method available to a political subdivision under Chapter 504,
Labor Code. An open-enrollment charter school that elects to
extend workers' compensation benefits as permitted under this
section is considered to be a political subdivision for all
purposes under Chapter 504, Labor Code.
SECTION 6. Section 12.1101, Education Code, is amended to
read as follows:
Sec. 12.1101. NOTIFICATION OF CHARTER APPLICATION. The
commissioner by rule shall adopt a procedure for providing notice
to the following persons on receipt by the State Board of Education
of an application for a charter for an open-enrollment charter
school under Section 12.110 or on receipt by the board and the
commissioner of notice of the establishment of a campus as
authorized under Section 12.101(b-1):
(1) the board of trustees of each school district from
which the proposed open-enrollment charter school or campus is
likely to draw students, as determined by the commissioner; and
(2) each member of the legislature that represents the
geographic area to be served by the proposed school or campus, as
determined by the commissioner.
SECTION 7. Section 12.111(a), Education Code, is amended to
read as follows:
(a) Each charter granted under this subchapter must:
(1) describe the educational program to be offered,
which must include the required curriculum as provided by Section
28.002;
(2) specify the period for which the charter or,
consistent with Section 12.116(b-1), any charter renewal is valid;
(3) provide that continuation or renewal of the
charter is contingent on the status of the charter as provided by
Section 12.116(b-1) [acceptable student performance on assessment
instruments adopted under Subchapter B, Chapter 39, and on
compliance with any accountability provision specified by the
charter, by a deadline or at intervals specified by the charter];
(4) [establish the level of student performance that
is considered acceptable for purposes of Subdivision (3);
[(5)] specify any basis, in addition to a basis
specified by this subchapter, on which the charter may be placed on
probation or revoked [or on which renewal of the charter may be
denied];
(5) [(6)] prohibit discrimination in admission policy
on the basis of sex, national origin, ethnicity, religion,
disability, academic, artistic, or athletic ability, or the
district the child would otherwise attend in accordance with this
code, although the charter may:
(A) provide for the exclusion of a student who
has a documented history of a criminal offense, a juvenile court
adjudication, or discipline problems under Subchapter A, Chapter
37; and
(B) provide for an admission policy that requires
a student to demonstrate artistic ability if the school specializes
in performing arts;
(6) [(7)] specify the grade levels to be offered;
(7) [(8)] describe the governing structure of the
program, including:
(A) the officer positions designated;
(B) the manner in which officers are selected and
removed from office;
(C) the manner in which members of the governing
body of the school are selected and removed from office;
(D) the manner in which vacancies on that
governing body are filled;
(E) the term for which members of that governing
body serve; and
(F) whether the terms are to be staggered;
(8) [(9)] specify the powers or duties of the
governing body of the school that the governing body may delegate to
an officer;
(9) [(10)] specify the manner in which the school will
distribute to parents information related to the qualifications of
each professional employee of the program, including any
professional or educational degree held by each employee, a
statement of any certification under Subchapter B, Chapter 21, held
by each employee, and any relevant experience of each employee;
(10) [(11)] describe the process by which the person
providing the program will adopt an annual budget;
(11) [(12)] describe the manner in which an annual
audit of the financial and programmatic operations of the program
is to be conducted, including the manner in which the person
providing the program will provide information necessary for the
school district in which the program is located to participate, as
required by this code or by State Board of Education rule, in the
Public Education Information Management System (PEIMS);
(12) [(13)] describe the facilities to be used;
(13) [(14)] describe the geographical area served by
the program; and
(14) [(15)] specify any type of enrollment criteria to
be used.
SECTION 8. Section 12.115, Education Code, is amended to
read as follows:
Sec. 12.115. BASIS FOR MODIFICATION, PLACEMENT ON
PROBATION, OR REVOCATION[, OR DENIAL OF RENEWAL]. (a) The
commissioner may modify, place on probation, or revoke[, or deny
renewal of] the charter of an open-enrollment charter school if the
commissioner determines that the charter holder:
(1) committed a material violation of the charter,
including failure to satisfy accountability provisions prescribed
by the charter;
(2) failed to satisfy generally accepted accounting
standards of fiscal management;
(3) failed to protect the health, safety, or welfare
of the students enrolled at the school; or
(4) failed to comply with this subchapter or another
applicable law or rule.
(b) The action the commissioner takes under Subsection (a)
shall be based on:
(1) the best interest of the school's students;
(2) [,] the severity of the violation[,] and any
previous violation the school has committed; and
(3) the accreditation status of the school under
Section 39.072.
SECTION 9. Section 12.116, Education Code, is amended by
adding Subsections (a-1) and (b-1) and amending Subsection (b) to
read as follows:
(a-1) The commissioner shall revoke the charter of an
open-enrollment charter school in accordance with the procedure
adopted under Subsection (a) if, after all information required for
determining a performance rating has been considered, the
commissioner determines that the school is insolvent as a result of
recovery of overallocated state funds under Section 42.258(a).
(b) The commissioner shall revoke the charter of an
open-enrollment charter school without a hearing if each campus
operated under the school's charter has been ordered closed under
Section 39.1324(d), (e), or (f) [procedure adopted under Subsection
(a) must provide an opportunity for a hearing to the charter holder
and to parents and guardians of students in the school. A hearing
under this subsection must be held at the facility at which the
program is operated].
(b-1) The procedure adopted under Subsection (a) for
denying renewal of the charter of an open-enrollment charter school
must provide that the charter automatically renews unless the
school's charter is revoked under Subchapter G, Chapter 39, before
the expiration of a charter term. The term for which a charter is
renewed shall not be less than 10 years.
SECTION 10. Section 12.118(a), Education Code, is amended
to read as follows:
(a) The commissioner shall designate an impartial
organization with experience in evaluating school choice programs
to conduct, under the supervision of the commissioner, an annual
evaluation of open-enrollment charter schools.
SECTION 11. Section 12.119(c), Education Code, is amended
to read as follows:
(c) On request, the State Board of Education shall provide
the information required by this section and Section 12.111(a)(7)
[12.111(8)] to a member of the public. The board may charge a
reasonable fee to cover the board's cost in providing the
information.
SECTION 12. Subchapter D, Chapter 12, Education Code, is
amended by adding Sections 12.134 and 12.135 to read as follows:
Sec. 12.134. COLOCATION AGREEMENT BETWEEN SCHOOL DISTRICT
AND OPEN-ENROLLMENT CHARTER SCHOOL. (a) This section applies to a
school district that:
(1) leases a district facility for the operation of an
open-enrollment charter school to be colocated on a district
campus; and
(2) enters into an agreement with the charter school
as provided by Subsection (d).
(b) The board of trustees of a school district may elect to
have data regarding the academic performance of students enrolled
in the open-enrollment charter school combined with comparable data
of the colocated district campus in determining the performance of
the campus and the district.
(c) The board of trustees of a school district that elects
under Subsection (b) to have academic data combined shall annually
file with the agency a copy of the lease and agreement described by
Subsection (a).
(d) The agreement between the school district and the
open-enrollment charter school:
(1) shall establish terms for sharing instructional or
other specified resources, such as professional development;
(2) shall for each year specify factors for
identifying a student who will be served by the charter school in
the leased facilities, which may include:
(A) the student's attendance at a specified
district campus or campuses;
(B) the student's need for specific academic
services;
(C) the student's academic performance in
previous school years; or
(D) other objective factors determined by the
district and the charter school;
(3) may prohibit the charter school from enrolling
students at the leased facilities other than those identified under
factors designated in the agreement; and
(4) shall require the district and the charter school
to adopt measures, as required by commissioner rule, such as using
different numerical codes for reporting information through the
Public Education Information Management System (PEIMS), so that
data remains identifiable as that of the district or of the school,
as applicable.
Sec. 12.135. EDUCATIONAL SERVICES AGREEMENT BETWEEN SCHOOL
DISTRICT AND OPEN-ENROLLMENT CHARTER SCHOOL. (a) Notwithstanding
Chapter 41 or 42, and in addition to any other funds to which a
school district may be entitled, if the board of trustees of the
district enters into an agreement under this section with an
open-enrollment charter school for the charter school to provide
educational services to a student enrolled in school in the
district, the district is entitled to receive the greater of the
following amounts:
(1) the amount the charter school would receive under
Section 12.106 if the student were enrolled in the charter school;
or
(2) the amount to which the district is entitled under
Chapters 41 and 42 for the student.
(b) The board of trustees of a school district that enters
into an agreement described by Subsection (a) with an
open-enrollment charter school may elect to have the state and
federal funds attributable to the students educated by the charter
school paid directly to the charter school. A school district that
makes such an election must make an annual declaration of the
election to the agency in a manner determined by the commissioner.
The district remains responsible for any overallocation or audit
recovery of state or federal funds as determined by the
commissioner.
SECTION 13. Sections 39.202 and 39.203, Education Code, are
amended to read as follows:
Sec. 39.202. DEVELOPMENT AND IMPLEMENTATION. (a) The
commissioner shall, in consultation with the comptroller, develop
and implement a financial accountability rating system for school
districts and open-enrollment charter schools in this state that:
(1) distinguishes among school districts and
open-enrollment charter schools based on levels of financial
performance; and
(2) includes procedures to:
(A) provide additional transparency to public
education finance; and
(B) enable the commissioner and school district
and open-enrollment charter school administrators to provide
meaningful financial oversight and improvement.
(b) The system must include uniform indicators adopted by
the commissioner by which to measure a district's or
open-enrollment charter school's financial management performance.
Sec. 39.203. REPORTING. (a) The commissioner shall
develop, as part of the system, a reporting procedure under which:
(1) each school district and open-enrollment charter
school is required to prepare and distribute an annual financial
management report; and
(2) the public is provided an opportunity to comment
on the report at a hearing.
(b) The annual financial management report must include:
(1) a description of the district's or school's
financial management performance based on a comparison, provided by
the agency, of the district's or school's performance on the
indicators adopted under Section 39.202(b) to:
(A) state-established standards; and
(B) the district's or school's previous
performance on the indicators; and
(2) any descriptive information required by the
commissioner.
(c) The report may include:
(1) information concerning, if applicable, the
district's or school's:
(A) financial allocations;
(B) tax collections;
(C) financial strength;
(D) operating cost management;
(E) personnel management;
(F) debt management;
(G) facility acquisition and construction
management;
(H) cash management;
(I) budgetary planning;
(J) overall business management;
(K) compliance with rules; and
(L) data quality; and
(2) any other information the board of trustees
determines to be necessary or useful.
(d) The board of trustees of each school district and the
governing body of each open-enrollment charter school shall hold a
public hearing on the report. The board shall give notice of the
hearing to, as applicable, owners of real property in the district
and to parents of district students or to owners of real property in
the district in which the open-enrollment charter school is located
and to the parents of school students. In addition to other notice
required by law, notice of the hearing must be provided:
(1) to a newspaper of general circulation in the
district; and
(2) through electronic mail to media serving the
district.
(e) After the hearing, the report shall be disseminated in
the district or in the district in which the open-enrollment
charter school is located in the manner prescribed by the
commissioner.
SECTION 14. Section 12.113(b), Education Code, is repealed.
SECTION 15. This Act applies beginning with the 2009-2010
school year.
SECTION 16. This Act does not make an appropriation. This
Act takes effect only if a specific appropriation for the
implementation of the Act is provided in a general appropriations
act of the 81st Legislature.
SECTION 17. Except as provided by Section 16 of this Act,
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, 2009, except as provided by Section 16 of this
Act.