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A BILL TO BE ENTITLED
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AN ACT
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relating to the establishment, operation, and funding of |
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open-enrollment charter schools. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 12.101(b), Education Code, is amended to |
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read as follows: |
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(b) The State Board of Education, after thoroughly |
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investigating and evaluating an applicant, may grant a charter for |
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an open-enrollment charter school only to an applicant that meets |
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any financial, governing, curriculum development and |
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implementation, and operational standards adopted by the |
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commissioner under this subchapter. The State Board of Education |
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may not grant: |
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(1) a total of more than 275 [215] charters for an |
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open-enrollment charter school; or |
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(2) more than 15 new charters in a state fiscal year. |
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SECTION 2. Subchapter D, Chapter 12, Education Code, is |
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amended by adding Section 12.1011 to read as follows: |
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Sec. 12.1011. AUTHORIZATION FOR GRANT OF CHARTERS FOR |
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SCHOOLS PRIMARILY SERVING STUDENTS WITH DISABILITIES. (a) The |
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State Board of Education may grant under Section 12.101 a charter on |
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the application of an eligible entity for an open-enrollment |
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charter school intended primarily to serve students with |
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disabilities, including students with autism. A charter granted |
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under this section is included for purposes of the limits on the |
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number of open-enrollment charter schools imposed by Section |
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12.101(b). |
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(b) For purposes of the applicability of state and federal |
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law, including a law prescribing requirements concerning students |
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with disabilities, an open-enrollment charter school described by |
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Subsection (a) is considered the same as any other school for which |
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a charter is granted under Section 12.101. |
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(c) To the fullest extent permitted under federal law, a |
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parent of a student with a disability may choose to enroll the |
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parent's child in an open-enrollment charter school described by |
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Subsection (a) regardless of whether a disproportionate number of |
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the school's students are students with disabilities. |
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(d) This section does not authorize an open-enrollment |
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charter school to discriminate in admissions or in the services |
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provided based on the presence, absence, or nature of an |
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applicant's or student's disability. |
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(e) Each educator, including a person performing the duties |
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of a superintendent, employed or under contract to serve on the |
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instructional or administrative staff of an open-enrollment |
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charter school described by Subsection (a) must hold the |
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appropriate certificate, as determined in accordance with State |
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Board for Educator Certification rule, to serve students with a |
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disability of the same type as a disability of students enrolled in |
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the school. |
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(f) The commissioner and the State Board for Educator |
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Certification shall adopt rules as necessary to administer this |
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section. |
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SECTION 3. Section 12.106, Education Code, is amended by |
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amending Subsection (c) and adding Subsections (d), (e), (f), and |
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(g) to read as follows: |
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(c) The commissioner shall [may] adopt rules to provide and |
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account for state funding of open-enrollment charter schools under |
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this section. A rule adopted under this section may be similar to a |
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provision of this code that is not similar to Section 12.104(b) if |
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the commissioner determines that the rule is related to financing |
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of open-enrollment charter schools and is necessary or prudent to |
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provide or account for state funds. |
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(d) A charter holder is entitled to receive funding under |
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this section for an open-enrollment charter school only if the |
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charter holder: |
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(1) provides information for the Public Education |
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Information Management System (PEIMS) as required by this chapter |
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or by commissioner rule; |
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(2) submits to the commissioner appropriate fiscal and |
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financial records as required by this chapter or by commissioner |
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rule; and |
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(3) receives an unqualified opinion in the most recent |
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independent auditor's report of the school's finances. |
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(e) The commissioner shall suspend the funding of a charter |
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holder that fails to comply with a rule adopted under Subsection (c) |
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until the commissioner determines that the charter holder: |
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(1) is in compliance or has cured any noncompliance; |
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and |
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(2) has adopted adequate procedures to prevent future |
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noncompliance. |
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(f) The rules the commissioner adopts under Subsection (c) |
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must require the commissioner to provide written notice to a |
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charter holder before the suspension of funding under Subsection |
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(e). The written notice must: |
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(1) notify the charter holder that the charter |
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holder's funding may be suspended; |
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(2) specify the reason for which the funding may be |
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suspended, including an explanation of any noncompliance by the |
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charter holder with a specified rule adopted under Subsection (c); |
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(3) inform the charter holder that the charter holder |
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has 30 calendar days after the date on which the charter holder |
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receives the notice to demonstrate compliance or to cure any |
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noncompliance before the charter holder's funding is suspended by |
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the commissioner; and |
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(4) contain any other information the commissioner |
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determines necessary. |
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(g) The commissioner may not suspend the funding of a |
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charter holder under this section until the period specified by |
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Subsection (f) has expired. |
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SECTION 4. Section 12.111(a), Education Code, is amended to |
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read as follows: |
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(a) Each charter granted under this subchapter must: |
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(1) describe the educational program to be offered, |
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which must include the required curriculum as provided by Section |
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28.002; |
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(2) [specify the period for which the charter or any
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charter renewal is valid;
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[(3)] provide that continuation [or renewal] of the |
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charter is contingent on acceptable [student] performance as |
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determined [on assessment instruments adopted] under [Subchapter
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B,] Chapter 39[, and on compliance with any accountability
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provision specified by the charter, by a deadline or at intervals
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specified by the charter]; |
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(3) [(4)
establish the level of student performance
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that is considered acceptable for purposes of Subdivision (3);
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[(5)] specify any basis, in addition to a basis |
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specified by this subchapter, on which the charter may be modified, |
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placed on probation, or revoked [or on which renewal of the charter
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may be denied]; |
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(4) [(6)] prohibit discrimination in admission policy |
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on the basis of sex, national origin, ethnicity, religion, |
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disability, academic, artistic, or athletic ability, or the |
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district the child would otherwise attend in accordance with this |
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code, although the charter may: |
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(A) provide for the exclusion of a student who |
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has a documented history of a criminal offense, a juvenile court |
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adjudication, or discipline problems under Subchapter A, Chapter |
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37; and |
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(B) provide for an admission policy that requires |
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a student to demonstrate artistic ability if the school specializes |
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in performing arts; |
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(5) [(7)] specify the grade levels to be offered; |
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(6) [(8)] describe the governing structure of the |
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program, including: |
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(A) the officer positions designated; |
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(B) the manner in which officers are selected and |
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removed from office; |
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(C) the manner in which members of the governing |
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body of the school are selected and removed from office; |
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(D) the manner in which vacancies on that |
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governing body are filled; |
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(E) the term for which members of that governing |
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body serve; and |
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(F) whether the terms are to be staggered; |
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(7) [(9)] specify the powers or duties of the |
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governing body of the school that the governing body may delegate to |
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an officer; |
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(8) [(10)] specify the manner in which the school will |
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distribute to parents information related to the qualifications of |
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each professional employee of the program, including any |
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professional or educational degree held by each employee, a |
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statement of any certification under Subchapter B, Chapter 21, held |
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by each employee, and any relevant experience of each employee; |
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(9) [(11)] describe the process by which the person |
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providing the program will adopt an annual budget; |
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(10) [(12)] describe the manner in which an annual |
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audit of the financial and programmatic operations of the program |
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is to be conducted, including the manner in which the person |
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providing the program will provide information necessary for the |
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school district in which the program is located to participate, as |
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required by this code or by State Board of Education rule, in the |
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Public Education Information Management System (PEIMS); |
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(11) [(13)] describe the facilities to be used; |
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(12) [(14)] describe the geographical area served by |
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the program; and |
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(13) [(15)] specify any type of enrollment criteria to |
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be used. |
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SECTION 5. Section 12.115, Education Code, is amended to |
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read as follows: |
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Sec. 12.115. BASIS FOR MODIFICATION, PLACEMENT ON |
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PROBATION, OR REVOCATION[, OR DENIAL OF RENEWAL]. (a) The |
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commissioner may modify, place on probation, or revoke[, or deny
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renewal of] the charter of an open-enrollment charter school if the |
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commissioner determines that the charter holder: |
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(1) committed a material violation of the charter, |
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including failure to satisfy accountability provisions prescribed |
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by the charter; |
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(2) failed to satisfy generally accepted accounting |
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standards of fiscal management; |
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(3) failed to protect the health, safety, or welfare |
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of the students enrolled at the school; or |
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(4) failed to comply with this subchapter or another |
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applicable law or rule. |
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(b) The action the commissioner takes under Subsection (a) |
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shall be based on the best interest of the school's students, the |
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severity of the violation, and any previous violation the school |
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has committed. Any action the commissioner takes under Chapter 39 |
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concerning an open-enrollment charter school shall be taken in |
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accordance with that chapter. |
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SECTION 6. Section 12.116, Education Code, is amended to |
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read as follows: |
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Sec. 12.116. PROCEDURE FOR MODIFICATION, PLACEMENT ON |
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PROBATION, OR REVOCATION; CLOSURE UNDER CHAPTER 39 [, OR DENIAL OF
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RENEWAL]. (a) The commissioner shall adopt a procedure to be used |
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for modifying, placing on probation, or revoking[, or denying
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renewal of] the charter of an open-enrollment charter school. |
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(a-1) The commissioner shall close an open-enrollment |
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charter school under Chapter 39 if, after all information required |
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for determining a performance rating under the financial |
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accountability rating system under Subchapter D, Chapter 39, has |
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been considered, the commissioner determines that the school is |
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insolvent as defined by commissioner rule. |
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(b) The commissioner shall revoke the charter of an |
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open-enrollment charter school without a hearing if each campus |
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operated under the school's charter has been ordered closed under |
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Chapter 39 [procedure adopted under Subsection (a) must provide an
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opportunity for a hearing to the charter holder and to parents and
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guardians of students in the school.
A hearing under this
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subsection must be held at the facility at which the program is
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operated]. |
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(b-1) Except as provided by Subsection (b) or Section |
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39.104(d), the procedure adopted under Subsection (a) for denying, |
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revoking, or modifying the charter of an open-enrollment charter |
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school must provide for a hearing on the issue to be held in the |
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county in which the school is located. |
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(c) Chapter 2001, Government Code, applies [does not apply] |
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to a hearing that is related to a modification, placement on |
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probation, or revocation[, or denial of renewal] under this |
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subchapter. |
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SECTION 7. The heading to Section 12.1161, Education Code, |
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is amended to read as follows: |
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Sec. 12.1161. EFFECT OF REVOCATION[, DENIAL OF RENEWAL,] OR |
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SURRENDER OF CHARTER. |
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SECTION 8. Section 12.1161(a), Education Code, is amended |
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to read as follows: |
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(a) If [Except as provided by Subsection (b), if] the |
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commissioner revokes [or denies the renewal of] a charter of an |
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open-enrollment charter school, or if an open-enrollment charter |
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school surrenders its charter, the school may not: |
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(1) continue to operate under this subchapter; or |
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(2) receive state funds under this subchapter. |
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SECTION 9. Section 12.1164(a), Education Code, is amended |
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to read as follows: |
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(a) The commissioner must notify the Teacher Retirement |
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System of Texas in writing of the revocation[, denial of renewal,] |
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or surrender of a charter under this subchapter not later than the |
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10th business day after the date of the event. |
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SECTION 10. Section 12.118(a), Education Code, is amended |
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to read as follows: |
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(a) The commissioner shall designate an impartial |
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organization with experience in evaluating school choice programs |
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to conduct, under the supervision of the commissioner, an annual |
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evaluation of open-enrollment charter schools. |
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SECTION 11. Section 12.119(c), Education Code, is amended |
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to read as follows: |
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(c) On request, the State Board of Education shall provide |
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the information required by this section and Section 12.111(a)(6) |
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[12.111(8)] to a member of the public. The board may charge a |
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reasonable fee to cover the board's cost in providing the |
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information. |
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SECTION 12. Section 39.104, Education Code, is amended by |
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amending Subsection (d) and adding Subsection (e) to read as |
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follows: |
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(d) If interventions or sanctions are imposed on an |
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open-enrollment charter school under the procedures provided by |
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this chapter, a charter school is not entitled to an additional |
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hearing relating to the modification, placement on probation, or |
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revocation[, or denial of renewal] of a charter as provided by |
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Subchapter D, Chapter 12. |
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(e) Notwithstanding any other provision of this subchapter, |
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the commissioner shall order closure of an open-enrollment charter |
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school campus that has been assigned an unacceptable performance |
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rating under Subchapter C for three consecutive school years, |
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except that the commissioner may waive that requirement if the |
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commissioner determines that, on the basis of significant |
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improvement in student performance over the preceding two school |
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years, the campus is likely to be assigned an acceptable |
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performance rating under Subchapter C for the following school |
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year. |
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SECTION 13. The following provisions of the Education Code |
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are repealed: |
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(1) Section 12.113(b); and |
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(2) Section 12.1161(b). |
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SECTION 14. This Act applies beginning with the 2011-2012 |
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school year. |
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SECTION 15. This Act takes effect immediately if it |
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receives a vote of two-thirds of all the members elected to each |
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house, as provided by Section 39, Article III, Texas Constitution. |
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If this Act does not receive the vote necessary for immediate |
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effect, this Act takes effect September 1, 2011. |