81R33448 CAS-D

By: Patrick, et al. S.B. No. 1830

Substitute the following for S.B. No. 1830:

By: Jackson C.S.S.B. No. 1830

A BILL TO BE ENTITLED

AN ACT

relating to the establishment, operation, and funding of open-enrollment charter schools.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subsection (b), Section 12.101, Education Code, is amended 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:

(1) a total of more than 275 [215] charters for an open-enrollment charter school; or

(2) more than 15 new charters in a state fiscal year.

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 included for purposes of the limits 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.

(e) Each educator, including a person performing the duties of a superintendent, employed or under contract to serve on the instructional or administrative staff of an open-enrollment charter school described by Subsection (a) must hold the appropriate certificate, as determined in accordance with State Board for Educator Certification rule, to serve students with a disability of the same type as a disability of students enrolled in the school.

(f) The commissioner and the State Board for Educator Certification shall adopt rules as necessary to administer this section.

SECTION 3. Section 12.106, Education Code, is amended by amending Subsection (c) and adding Subsections (d), (e), (f), and (g) to read as follows:

(c) The commissioner shall [may] adopt rules to provide and account for state funding of open-enrollment charter schools under this section. A rule adopted under this section may be similar to a provision of this code that is not similar to Section 12.104(b) if the commissioner determines that the rule is related to financing of open-enrollment charter schools and is necessary or prudent to provide or account for state funds.

(d) A charter holder is entitled to receive funding under this section for an open-enrollment charter school only if the charter holder:

(1) provides information for the Public Education Information Management System (PEIMS) as required by this chapter or by commissioner rule;

(2) submits to the commissioner appropriate fiscal and financial records as required by this chapter or by commissioner rule; and

(3) receives an unqualified opinion in the most recent independent auditor's report of the school's finances.

(e) The commissioner shall suspend the funding of a charter holder that fails to comply with a rule adopted under Subsection (c) until the commissioner determines that the charter holder:

(1) is in compliance or has cured any noncompliance; and

(2) has adopted adequate procedures to prevent future noncompliance.

(f) The rules the commissioner adopts under Subsection (c) must require the commissioner to provide written notice to a charter holder before the suspension of funding under Subsection (e). The written notice must:

(1) notify the charter holder that the charter holder's funding may be suspended;

(2) specify the reason for which the funding may be suspended, including an explanation of any noncompliance by the charter holder with a specified rule adopted under Subsection (c);

(3) inform the charter holder that the charter holder has 30 calendar days after the date on which the charter holder receives the notice to demonstrate compliance or to cure any noncompliance before the charter holder's funding is suspended by the commissioner; and

(4) contain any other information the commissioner determines necessary.

(g) The commissioner may not suspend the funding of a charter holder under this section until the period specified by Subsection (f) has expired.

SECTION 4. Subsection (a), Section 12.111, 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 any charter renewal is valid;

[(3)] provide that continuation [or renewal] of the charter is contingent on acceptable [student] performance as determined [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];

(3) [(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 modified, placed on probation, or revoked [or on which renewal of the charter may be denied];

(4) [(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;

(5) [(7)] specify the grade levels to be offered;

(6) [(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;

(7) [(9)] specify the powers or duties of the governing body of the school that the governing body may delegate to an officer;

(8) [(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;

(9) [(11)] describe the process by which the person providing the program will adopt an annual budget;

(10) [(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);

(11) [(13)] describe the facilities to be used;

(12) [(14)] describe the geographical area served by the program; and

(13) [(15)] specify any type of enrollment criteria to be used.

SECTION 5. 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 the best interest of the school's students, the severity of the violation, and any previous violation the school has committed. Any action the commissioner takes under Chapter 39 concerning an open-enrollment charter school shall be taken in accordance with that chapter.

SECTION 6. Section 12.116, Education Code, is amended to read as follows:

Sec. 12.116. PROCEDURE FOR MODIFICATION, PLACEMENT ON PROBATION, OR REVOCATION; AUTOMATIC RENEWAL; CLOSURE UNDER CHAPTER 39 [, OR DENIAL OF RENEWAL]. (a) The commissioner shall adopt a procedure to be used for modifying, placing on probation, or revoking[, or denying renewal of] the charter of an open-enrollment charter school.

(a-1) The commissioner shall close an open-enrollment charter school under Chapter 39 if, after all information required for determining a performance rating under the financial accountability rating system under Subchapter I, Chapter 39, has been considered, the commissioner determines that the school is insolvent as defined by commissioner rule.

(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 Chapter 39 [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) Except as provided by Subsection (b), the procedure adopted under Subsection (a) for denying, revoking, or modifying the charter of an open-enrollment charter school must provide for a hearing on the issue to be held in the county in which the school is located.

(c) Chapter 2001, Government Code, applies [does not apply] to a hearing that is related to a modification, placement on probation, or revocation[, or denial of renewal] under this subchapter.

SECTION 7. The heading to Section 12.1161, Education Code, is amended to read as follows:

Sec. 12.1161. EFFECT OF REVOCATION[, DENIAL OF RENEWAL,] OR SURRENDER OF CHARTER.

SECTION 8. Subsection (a), Section 12.1161, Education Code, is amended to read as follows:

(a) If [Except as provided by Subsection (b), if] the commissioner revokes [or denies the renewal of] a charter of an open-enrollment charter school, or if an open-enrollment charter school surrenders its charter, the school may not:

(1) continue to operate under this subchapter; or

(2) receive state funds under this subchapter.

SECTION 9. Subsection (a), Section 12.1164, Education Code, is amended to read as follows:

(a) The commissioner must notify the Teacher Retirement System of Texas in writing of the revocation[, denial of renewal,] or surrender of a charter under this subchapter not later than the 10th business day after the date of the event.

SECTION 10. Subsection (a), Section 12.118, 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. Subsection (c), Section 12.119, 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)(6) [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. The heading to Subchapter E, Chapter 12, Education Code, is amended to read as follows:

SUBCHAPTER E. COLLEGE OR UNIVERSITY OR JUNIOR COLLEGE

CHARTER SCHOOL

SECTION 13. Sections 12.151, 12.152, 12.154, and 12.155, Education Code, are amended to read as follows:

Sec. 12.151. DEFINITIONS [DEFINITION]. In this subchapter, "public junior college" and "public senior college or university" have [has] the meanings [meaning] assigned by Section 61.003.

Sec. 12.152. AUTHORIZATION. (a) In accordance with this subchapter and Subchapter D, the State Board of Education may grant a charter on the application of:

(1) a public senior college or university for an open-enrollment charter school to operate on the campus of the public senior college or university or in the same county in which the campus of the public senior college or university is located; or

(2) a public junior college for an open-enrollment charter school to operate on the campus of the public junior college or in the same county in which the campus of the public junior college is located.

Sec. 12.154. CONTENT. (a) Notwithstanding Section 12.110(d), the State Board of Education may grant a charter under this subchapter to a public senior college or university only if the following criteria are satisfied in the public senior college's or university's application, as determined by the State Board of Education:

(1) the college or university charter school's educational program must include innovative teaching methods;

(2) the college or university charter school's educational program must be implemented under the direct supervision of a member of the teaching or research faculty of the public senior college or university;

(3) the faculty member supervising the college or university charter school's educational program must have substantial experience and expertise in education research, teacher education, classroom instruction, or educational administration;

(4) the college or university charter school's educational program must be designed to meet specific goals described in the charter, including improving student performance, and each aspect of the program must be directed toward the attainment of the goals;

(5) the attainment of the college or university charter school's educational program goals must be measured using specific, objective standards set forth in the charter, including assessment methods and a time frame; and

(6) the financial operations of the college or university charter school must be supervised by the business office of the public senior college or university.

(b) Notwithstanding Section 12.110(d), the State Board of Education may grant a charter under this subchapter to a public junior college only if the following criteria are satisfied in the public junior college's application, as determined by the State Board of Education:

(1) the junior college charter school's educational program must be implemented under the direct supervision of a member of the faculty of the public junior college;

(2) the faculty member supervising the junior college charter school's educational program must have substantial experience and expertise in teacher education, classroom instruction, or educational administration;

(3) the junior college charter school's educational program must be designed to meet specific goals described in the charter, such as dropout recovery, and each aspect of the program must be directed toward the attainment of the goals;

(4) the attainment of the junior college charter school's educational program goals must be measured using specific, objective standards set forth in the charter, including assessment methods and a time frame; and

(5) the financial operations of the junior college charter school must be supervised by the business office of the junior college.

Sec. 12.155. SCHOOL NAME. The name of a college or university charter school or junior college charter school must include the name of the public senior college or university or public junior college, as applicable, operating the school.

SECTION 14. Subsection (a), Section 12.156, Education Code, is amended to read as follows:

(a) Except as otherwise provided by this subchapter, Subchapter D applies to a college or university charter school or junior college charter school as though the college or university charter school or junior college charter school, as applicable, were granted a charter under that subchapter.

SECTION 15. Section 39.1321, Education Code, is amended by amending Subsection (d) and adding Subsection (e) to read as follows:

(d) If sanctions are imposed on an open-enrollment charter school under the procedures provided by this chapter, a charter school is not entitled to an additional hearing relating to the modification, placement on probation, or revocation[, or denial of renewal] of a charter as provided by Subchapter D, Chapter 12.

(e) Notwithstanding any other provision of this subchapter, the commissioner shall order closure of an open-enrollment charter school campus that is considered an academically unacceptable campus for three consecutive school years, except that the commissioner may waive that requirement if the commissioner determines that, on the basis of significant improvement in student performance over the preceding two school years, the campus is likely to be rated as academically acceptable for the following school year.

SECTION 16. 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 17. The following provisions of the Education Code are repealed:

(1) Subsection (b), Section 12.113; and

(2) Subsection (b), Section 12.1161.

SECTION 18. This Act applies beginning with the 2009-2010 school year.

SECTION 19. 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 20. Except as provided by Section 19 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 19 of this Act.