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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 charter |
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schools. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The heading to Section 12.101, Education Code, |
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is amended to read as follows: |
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Sec. 12.101. AUTHORIZATION FOR LICENSE. |
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SECTION 2. Section 12.101, Education Code, is amended by |
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amending Subsections (a), (b), and (d) and adding Subsections (e) |
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and (f) to read as follows: |
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(a) In accordance with this subchapter, the State Board of |
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Education may issue [grant] a license [charter] on the application |
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of an eligible entity for an open-enrollment charter school to |
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operate in a facility of a commercial or nonprofit entity, an |
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eligible entity, or a school district, including a home-rule school |
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district. In this subsection, "eligible entity" means: |
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(1) an institution of higher education as defined |
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under Section 61.003; |
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(2) a private or independent institution of higher |
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education as defined under Section 61.003; |
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(3) an organization that is exempt from taxation under |
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Section 501(c)(3), Internal Revenue Code of 1986 (26 U.S.C. Section |
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501(c)(3)); or |
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(4) a governmental entity. |
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(b) The State Board of Education, after thoroughly |
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investigating and evaluating an applicant, may issue [grant] a |
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license [charter] for an open-enrollment charter school only to an |
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applicant that meets any financial, governing, curriculum |
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development and implementation, and operational standards adopted |
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by the commissioner under this subchapter. In a state fiscal year, |
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the [The] State Board of Education may not issue [grant a total of] |
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more than 10 new licenses [215 charters] for an open-enrollment |
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charter school plus a number of licenses equal to any number of |
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charters for an open-enrollment charter school revoked or |
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surrendered during the preceding state fiscal year. |
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(d) An educator employed by a school district before the |
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effective date of a license [charter] for an open-enrollment |
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charter school operated at a school district facility may not be |
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transferred to or employed by the open-enrollment charter school |
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over the educator's objection. |
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(e) A license holder is subject to any law applicable to a |
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charter holder. |
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(f) The commissioner shall adopt rules for the form of a |
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license, the basis and a procedure for modification or revocation |
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of a license, and any other rules necessary for the issuance and |
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administration of licenses under this subchapter. A rule adopted |
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under this subsection must, to the greatest extent practicable, be |
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consistent with a provision of this subchapter or a rule adopted |
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under this subchapter for the same purpose as applicable to a |
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charter. |
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SECTION 3. Subchapter D, Chapter 12, Education Code, is |
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amended by adding Sections 12.1011 and 12.10111 to read as follows: |
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Sec. 12.1011. AUTHORIZATION FOR ISSUANCE OF LICENSES FOR |
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SCHOOLS PRIMARILY SERVING STUDENTS WITH DISABILITIES. (a) The |
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State Board of Education may issue under Section 12.101 a license 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. The State Board of |
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Education may not issue more than two new licenses for an |
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open-enrollment charter school under this section each state fiscal |
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year. A license issued under this section is not considered for |
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purposes of the limit on the number of licenses 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 license or charter is issued under this subchapter. |
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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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Sec. 12.10111. AUTHORIZATION FOR CHARTER. (a) The State |
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Board of Education shall grant a charter for an open-enrollment |
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charter school to a license holder under Section 12.101 if: |
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(1) the open-enrollment charter school for which the |
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license has been issued has been assigned an acceptable performance |
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rating as provided by Subchapter C, Chapter 39, for any two of the |
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preceding three school years; |
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(2) no campus operating under the license has been |
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assigned an unacceptable performance rating as provided by |
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Subchapter C, Chapter 39, for any two of the three preceding school |
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years or such a campus has been closed; and |
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(3) the license holder satisfies standards of |
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financial solvency and financial accountability established by the |
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commissioner under Subchapter D, Chapter 39. |
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(b) Notwithstanding Section 12.101 and in accordance with |
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Section 12.110, the State Board of Education may grant a charter for |
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an open-enrollment charter school to an applicant for a charter |
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that: |
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(1) is an entity described by Section 12.101(a)(3) |
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that has operated one or more charter schools in another state and, |
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as determined by the commissioner in accordance with commissioner |
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rule, has achieved high performance under federal accountability |
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and other appropriate academic and financial criteria, including at |
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a minimum having achieved adequate yearly progress in accordance |
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with federal law for the preceding three school years; or |
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(2) is an entity that has operated one or more charter |
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schools established under Subchapter C, D, or E and, as determined |
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by the commissioner in accordance with commissioner rule, has |
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performed well under appropriate academic and financial criteria. |
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(c) A charter for an open-enrollment charter school granted |
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under Subsection (b)(1) is considered a license for purposes of the |
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limit on the number of licenses imposed by Section 12.101(b). |
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(d) A charter holder may establish one or more new |
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open-enrollment charter school campuses under a charter without |
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applying for authorization if: |
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(1) each open-enrollment charter school campus |
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operating under the charter has been assigned an acceptable |
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performance rating as provided by Subchapter C, Chapter 39, for the |
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two preceding school years; |
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(2) the charter holder satisfies standards of |
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financial solvency and financial accountability established by |
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commissioner rule under Subchapter D, Chapter 39; |
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(3) the charter holder provides written notice, in the |
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time, manner, and form provided by commissioner rule, to the State |
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Board of Education and the commissioner of the establishment of any |
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campus under this subsection; and |
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(4) not later than the 90th day after the date the |
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charter holder provides written notice under Subdivision (3), the |
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commissioner does not provide written notice to the charter holder |
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disapproving a new campus under this section. |
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(e) For purposes of Subsection (d), an open-enrollment |
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charter school campus rated as academically acceptable or higher |
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under Subchapter D, Chapter 39, as that subchapter existed January |
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1, 2009, for the 2009-2010 or 2010-2011 school year is considered to |
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have been assigned an acceptable performance rating for the |
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applicable school year. This subsection expires January 1, 2015. |
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SECTION 4. Section 12.1012, Education Code, is amended by |
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adding Subdivision (7) to read as follows: |
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(7) "License holder" means the entity to which a |
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license is granted under this subchapter. |
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SECTION 5. Section 12.1056, Education Code, is amended to |
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read as follows: |
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Sec. 12.1056. IMMUNITY [FROM LIABILITY]. (a) In matters |
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related to operation of an open-enrollment charter school, an |
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open-enrollment charter school is immune [from liability] to the |
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same extent as a school district, and its employees and volunteers |
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are immune [from liability] to the same extent as school district |
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employees and volunteers. A member of the governing body of an |
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open-enrollment charter school or of a charter holder is immune |
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[from liability] to the same extent as a school district trustee. |
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(b) An open-enrollment charter school is a governmental |
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unit as defined by Section 101.001, Civil Practice and Remedies |
|
Code, and is subject to liability only as provided by Chapter 101, |
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Civil Practice and Remedies Code, and only in the manner that |
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liability is provided by that chapter for a school district. |
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(c) An open-enrollment charter school is a local government |
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as defined by Section 102.001, Civil Practice and Remedies Code, |
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and a payment on a tort claim must comply with Chapter 102, Civil |
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Practice and Remedies Code. |
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(d) An open-enrollment charter school is a local |
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governmental entity as defined by Section 271.151, Local Government |
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Code, and is subject to liability on a contract as provided by |
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Subchapter I, Chapter 271, Local Government Code, and only in the |
|
manner that liability is provided by that subchapter for a school |
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district. |
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SECTION 6. Subchapter D, Chapter 12, Education Code, is |
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amended by adding Section 12.1058 to read as follows: |
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Sec. 12.1058. APPLICABILITY OF OTHER LAWS. (a) An |
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open-enrollment charter school is considered to be: |
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(1) a local government for purposes of Chapter 791, |
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Government Code; |
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(2) a local government for purposes of Chapter 2259, |
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Government Code, except that an open-enrollment charter school may |
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not issue public securities as provided by Section 2259.031(b), |
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Government Code; and |
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(3) a political subdivision for purposes of Chapter |
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172, Local Government Code. |
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(b) An open-enrollment charter school may elect to extend |
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workers' compensation benefits to employees of the school through |
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any method available to a political subdivision under Chapter 504, |
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Labor Code, except that an open-enrollment charter school that |
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self-insures either individually or collectively under Chapter |
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504, Labor Code, may not provide workers' compensation medical |
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benefits to injured employees in the manner described by Section |
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504.053(b)(2), Labor Code. An open-enrollment charter school that |
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elects to extend workers' compensation benefits as permitted under |
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this section is considered to be a political subdivision for all |
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purposes under Chapter 504, Labor Code. An open-enrollment charter |
|
school that self-insures either individually or collectively under |
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Chapter 504, Labor Code, is considered to be an insurance carrier |
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for purposes of Subtitle A, Title 5, Labor Code. |
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SECTION 7. Section 12.110, Education Code, is amended by |
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amending Subsections (a), (b), and (c) and adding Subsections (a-1) |
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and (e) to read as follows: |
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(a) The State Board of Education shall adopt: |
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(1) an application form and a procedure that must be |
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used to apply for a license [charter] for an open-enrollment |
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charter school; and |
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(2) criteria to use in selecting a program for which to |
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issue [grant] a license [charter]. |
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(a-1) The State Board of Education shall adopt: |
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(1) an application form and a procedure that must be |
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used by an applicant described by Section 12.10111(b)(1) or (2) to |
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apply for a charter for an open-enrollment charter school; and |
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(2) criteria to use in selecting a program for which to |
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grant a charter. |
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(b) The application forms under Subsections (a) and (a-1) |
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[form] must provide for including the information required under |
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Section 12.111 [to be contained in a charter]. |
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(c) As part of the application procedure, the board may |
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require a petition supporting a license or charter for a school |
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signed by a specified number of parents or guardians of school-age |
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children residing in the area in which a school is proposed or may |
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hold a public hearing to determine parental support for the school. |
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(e) The commissioner by rule may establish a fee for |
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applying for a license or charter for an open-enrollment charter |
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school. A fee established under this subsection must be sufficient |
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to cover the agency's administrative costs for the application |
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process, including the costs of investigating the applicant. |
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SECTION 8. Section 12.1101, Education Code, is amended to |
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read as follows: |
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Sec. 12.1101. NOTIFICATION OF LICENSE OR CHARTER |
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APPLICATION OR ESTABLISHMENT OF CAMPUS. The commissioner by rule |
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shall adopt a procedure for providing notice to the following |
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persons on receipt by the State Board of Education of an application |
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for a license or charter for an open-enrollment charter school |
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under Section 12.110 or on receipt by the board and the commissioner |
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of notice of the establishment of a campus as authorized under |
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Section 12.10111(d): |
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(1) the board of trustees of each school district from |
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which the proposed open-enrollment charter school or campus is |
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likely to draw students, as determined by the commissioner; and |
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(2) each member of the legislature that represents the |
|
geographic area to be served by the proposed school or campus, as |
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determined by the commissioner. |
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SECTION 9. Section 12.111, Education Code, is amended by |
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amending Subsections (a) and (b) and adding Subsections (a-1) and |
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(c) to read as follows: |
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(a) Except as provided by Subsection (a-1), each license |
|
issued or [Each] charter granted under this subchapter must: |
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(1) describe the educational program to be offered, |
|
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, |
|
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
|
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instruments adopted under Subchapter B, Chapter 39, and on
|
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compliance with any accountability provision specified by the
|
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charter, by a deadline or at intervals specified by the charter]; |
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(4) [establish the level of student performance that
|
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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 placed on |
|
probation or revoked or on which an alternative to revoking the |
|
charter, as described by Section 12.115(a-1), may be used [renewal
|
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of the charter may be denied]; |
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(5) [(6)] prohibit discrimination in admission policy |
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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 license or charter, as applicable, 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; |
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(6) [(7)] specify the grade levels to be offered; |
|
(7) [(8)] describe the governing structure of the |
|
program, including: |
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(A) the officer positions designated; |
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(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; |
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(D) the manner in which vacancies on that |
|
governing body are filled; |
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(E) the term for which members of that governing |
|
body serve; and |
|
(F) whether the terms are to be staggered; |
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(8) [(9)] specify the powers or duties of the |
|
governing body of the school that the governing body may delegate to |
|
an officer; |
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(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); |
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(12) [(13)] describe the facilities to be used; |
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(13) [(14)] describe the geographical area served by |
|
the program; and |
|
(14) [(15)] specify any type of enrollment criteria to |
|
be used. |
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(a-1) A license issued under this subchapter is not required |
|
to comply with Subsection (a)(2), (3), or (4). |
|
(b) A license holder or charter holder [of an
|
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open-enrollment charter school] shall consider including in the |
|
school's license or charter, as applicable, a requirement that the |
|
school develop and administer personal graduation plans under |
|
Section 28.0212. |
|
(c) The enrollment of a student with a disability, including |
|
autism, is not considered for purposes of any maximum student |
|
enrollment described by the charter. |
|
SECTION 10. Section 12.115, Education Code, is amended to |
|
read as follows: |
|
Sec. 12.115. BASIS FOR MODIFICATION, PLACEMENT ON |
|
PROBATION, OR REVOCATION; ALTERNATIVES TO REVOCATION[, OR DENIAL OF
|
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RENEWAL]. (a) The commissioner shall [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. |
|
(a-1) Based on a determination described by Subsection (a) |
|
concerning the charter holder, as an alternative to revoking the |
|
charter of an open-enrollment charter school, the commissioner may: |
|
(1) reconstitute the governing body of the charter |
|
holder; or |
|
(2) assign operations of a school campus to a |
|
different charter holder. |
|
(b) The action the commissioner takes under Subsection (a) |
|
or (a-1) 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 |
|
Subchapter C, Chapter 39. |
|
SECTION 11. Section 12.116, Education Code, is amended to |
|
read as follows: |
|
Sec. 12.116. PROCEDURE FOR MODIFICATION, PLACEMENT ON |
|
PROBATION, REVOCATION, ALTERNATIVE TO REVOCATION, OR DENIAL OF |
|
RENEWAL. (a) The commissioner shall adopt a procedure [to be used] |
|
for modifying, placing on probation, revoking, or denying renewal |
|
of the charter of an open-enrollment charter school or for using an |
|
alternative to revocation as described by Section 12.115(a-1). |
|
[(b)] The procedure [adopted under Subsection (a)] must, |
|
except as provided by Subsection (b), provide an opportunity for a |
|
hearing to the charter holder and to parents and guardians of |
|
students enrolled in the school. A hearing under this subsection |
|
must be held in the county in which the school is located [at the
|
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facility at which the program is operated]. |
|
(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 under Subchapter D, Chapter 39, |
|
has been considered, the commissioner determines that the school is |
|
insolvent. In determining whether the school is insolvent, the |
|
commissioner shall consider whether the insolvency is 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 39.107. |
|
(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 E, Chapter 39, before |
|
the expiration of a charter term. In addition, the procedure must |
|
require the commissioner and the charter holder to act in a timely |
|
manner, according to the procedure, to initiate revocation or |
|
renewal of the charter, as applicable. The term for which a charter |
|
is renewed shall not be less than 10 years. |
|
(c) Chapter 2001, Government Code, does not apply to a |
|
hearing that is related to a modification, placement on probation, |
|
revocation, alternative to revocation, or denial of renewal under |
|
this subchapter. |
|
SECTION 12. 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 13. Section 12.117, Education Code, is amended by |
|
adding Subsections (c) and (d) to read as follows: |
|
(c) An open-enrollment charter school for which a license is |
|
issued on or after September 1, 2011, may not admit a student unless |
|
the student: |
|
(1) was enrolled in a public school in this state |
|
during the school year preceding the school year for which the |
|
student is seeking admission to the charter school; or |
|
(2) is seeking admission for the first grade or a lower |
|
grade level. |
|
(d) An open-enrollment charter school authorized by a |
|
license issued or charter granted under this subchapter to a |
|
municipality: |
|
(1) is considered a work-site open-enrollment charter |
|
school for purposes of federal regulations regarding admissions |
|
policies that apply to open-enrollment charter schools receiving |
|
federal funding; and |
|
(2) notwithstanding Subsection (a), may admit |
|
children of employees of the municipality to the school before |
|
conducting a lottery to fill remaining available positions, |
|
provided that the number of children admitted under this |
|
subdivision constitutes only a small percentage, as may be further |
|
specified by federal regulation, of the school's total enrollment. |
|
SECTION 14. 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 15. 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)(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 16. Section 12.156, Education Code, is amended to |
|
read as follows: |
|
Sec. 12.156. APPLICABILITY OF CERTAIN PROVISIONS. (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 issued a |
|
license or granted a charter under that subchapter. |
|
(b) A license issued or charter granted under this |
|
subchapter is not considered for purposes of the limit on the number |
|
of open-enrollment charter schools imposed by Section 12.101(b). |
|
SECTION 17. Subsection (b), Section 12.113, Education Code, |
|
is repealed. |
|
SECTION 18. The amendment of Subchapter D, Chapter 12, |
|
Education Code, by this Act, does not affect the status of a charter |
|
granted under Subchapter D, Chapter 12, Education Code, before the |
|
effective date of this Act and the implementation of licensing |
|
under Subchapter D, Chapter 12, Education Code, in accordance with |
|
this Act. |
|
SECTION 19. Section 12.101, Education Code, as amended by |
|
this Act, and Sections 12.1011 and 12.10111, Education Code, as |
|
added by this Act, apply beginning with the 2012-2013 school year. |
|
SECTION 20. 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, 2011. |