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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; providing administrative penalties. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 12.101, Education Code, is amended by |
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amending Subsection (b) and adding Subsections (b-1) and (b-2) 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. In a state fiscal year, the |
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[The] State Board of Education may not grant [a total of] more than |
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10 new [215] charters for an open-enrollment charter school plus a |
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number of charters equal to any number of charters for an |
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open-enrollment charter school revoked or surrendered during the |
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preceding state fiscal year. |
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(b-1) 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 fiscal |
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solvency and financial accountability established by commissioner |
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rule; |
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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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(b-2) For purposes of Subsection (b-1), 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 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. The State Board of |
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Education may not grant more than two new charters for an |
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open-enrollment charter school under this section each state fiscal |
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year. A charter granted under this section is not considered for |
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purposes of the limit on the number of open-enrollment charter |
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schools imposed by Section 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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SECTION 3. Section 12.110, Education Code, is amended by |
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adding Subsection (e) to read as follows: |
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(e) The commissioner by rule may establish a fee for |
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applying for a charter for an open-enrollment charter school. A fee |
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established under this subsection must be sufficient to cover the |
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agency's administrative costs for the application process, |
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including the costs of investigating the proposed charter holder. |
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SECTION 4. Section 12.1101, Education Code, is amended to |
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read as follows: |
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Sec. 12.1101. NOTIFICATION OF CHARTER APPLICATION OR |
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ESTABLISHMENT OF CAMPUS. The commissioner by rule shall adopt a |
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procedure for providing notice to the following persons on receipt |
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by the State Board of Education of an application for a charter for |
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an open-enrollment charter school under Section 12.110 or on |
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receipt by the board and the commissioner of notice of the |
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establishment of a campus as authorized under Section 12.101(b-1): |
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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 |
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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 5. Section 12.111, Education Code, is amended by |
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amending Subsection (a) and adding Subsection (c) to read as |
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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, |
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consistent with Section 12.116(b-1), any charter renewal is valid; |
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(3) provide that continuation or renewal of the |
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charter is contingent on the status of the charter as provided by |
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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 |
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probation or revoked or on which an alternative to revoking the |
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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, |
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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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(6) [(7)] specify the grade levels to be offered; |
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(7) [(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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(8) [(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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(9) [(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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(10) [(11)] describe the process by which the person |
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providing the program will adopt an annual budget; |
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(11) [(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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(12) [(13)] describe the facilities to be used; |
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(13) [(14)] describe the geographical area served by |
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the program; and |
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(14) [(15)] specify any type of enrollment criteria to |
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be used. |
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(c) The enrollment of a student with a disability, including |
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autism, is not considered for purposes of any maximum student |
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enrollment described by the charter. |
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SECTION 6. 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; ALTERNATIVES TO REVOCATION[, OR DENIAL OF
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RENEWAL]. (a) The commissioner shall [may] modify, place on |
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probation, or revoke[, or deny renewal of] the charter of an |
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open-enrollment charter school if the commissioner determines that |
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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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(a-1) Based on a determination described by Subsection (a) |
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concerning the charter holder, as an alternative to revoking the |
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charter of an open-enrollment charter school, the commissioner may: |
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(1) reconstitute the governing body of the charter |
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holder; or |
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(2) assign operations of a school campus to a |
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different charter holder. |
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(b) The action the commissioner takes under Subsection (a) |
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or (a-1) shall be based on: |
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(1) the best interest of the school's students; |
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(2) [,] the severity of the violation[,] and any |
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previous violation the school has committed; and |
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(3) the accreditation status of the school under |
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Subchapter C, Chapter 39. |
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SECTION 7. 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, REVOCATION, ALTERNATIVE TO REVOCATION, OR DENIAL OF |
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RENEWAL. (a) The commissioner shall adopt a procedure [to be
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used] for modifying, placing on probation, revoking, or denying |
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renewal of the charter of an open-enrollment charter school or for |
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using an alternative to revocation as described by Section |
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12.115(a-1). |
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[(b)] The procedure [adopted under Subsection (a)] must, |
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except as provided by Subsection (b), provide an opportunity for a |
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hearing to the charter holder and to parents and guardians of |
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students enrolled in the school. A hearing under this subsection |
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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]. |
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(a-1) The commissioner shall revoke the charter of an |
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open-enrollment charter school in accordance with the procedure |
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adopted under Subsection (a) if, after all information required for |
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determining a performance rating has been considered, the |
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commissioner determines that the school is insolvent. In |
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determining whether the school is insolvent, the commissioner shall |
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consider whether the insolvency is a result of recovery of |
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overallocated state funds under Section 42.258(a). |
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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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Section 39.107. |
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(b-1) The procedure adopted under Subsection (a) for |
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denying renewal of the charter of an open-enrollment charter school |
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must provide that the charter automatically renews unless the |
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school's charter is revoked under Subchapter E, Chapter 39, before |
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the expiration of a charter term. In addition, the procedure must |
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require the commissioner and the charter holder to act in a timely |
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manner, according to the procedure, to initiate revocation or |
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renewal of the charter, as applicable. The term for which a charter |
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is renewed shall not be less than 10 years. |
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(c) Chapter 2001, Government Code, does not apply to a |
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hearing that is related to a modification, placement on probation, |
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revocation, alternative to revocation, or denial of renewal under |
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this subchapter. |
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SECTION 8. Section 12.1161, Education Code, is amended to |
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read as follows: |
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Sec. 12.1161. EFFECT OF REVOCATION[, DENIAL OF RENEWAL,] OR |
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SURRENDER OF CHARTER. If [(a)
Except as provided by Subsection
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(b), if] the commissioner revokes the [or denies the renewal of a] |
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charter of an open-enrollment charter school, or if an |
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open-enrollment charter school surrenders its charter, the school |
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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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[(b)
An open-enrollment charter school may continue to
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operate and receive state funds under this subchapter for the
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remainder of a school year if the commissioner denies renewal of the
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school's charter before the completion of that school year.] |
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SECTION 9. Subsection (a), Section 12.1164, Education Code, |
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is amended 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 12.117, Education Code, is amended by |
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adding Subsection (c) to read as follows: |
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(c) An open-enrollment charter school for which a charter is |
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granted on or after September 1, 2011, may not admit a student |
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unless the student: |
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(1) was enrolled in a public school in this state |
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during the school year preceding the school year for which the |
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student is seeking admission to the charter school; or |
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(2) is seeking admission for the first grade or a lower |
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grade level. |
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SECTION 11. Subsection (a), Section 12.118, Education Code, |
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is amended 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 12. Subsection (c), Section 12.119, Education Code, |
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is amended 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)(7) |
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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 13. Subchapter D, Chapter 12, Education Code, is |
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amended by adding Section 12.136 to read as follows: |
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Sec. 12.136. ADMINISTRATIVE PENALTY. (a) The |
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commissioner may impose a reasonable administrative penalty |
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against a person who knowingly violates this subchapter or a rule |
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adopted under this subchapter. |
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(b) The commissioner shall provide for a hearing to be held |
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to determine whether a penalty is to be imposed and, if so, the |
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amount of the penalty. The commissioner shall base the amount of |
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the penalty on: |
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(1) the seriousness of the violation; |
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(2) any history of a previous violation; |
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(3) the amount necessary to deter a future violation; |
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(4) any effort to correct the violation; |
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(5) the cost to the agency to address the violation, |
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including providing a remedy in response to the violation; and |
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(6) any other matter justice requires. |
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(c) A hearing under Subsection (b) shall be held in |
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accordance with commissioner rule. |
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(d) A penalty collected under this section may be used by |
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the agency in paying costs of administering this subchapter. |
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SECTION 14. Subsection (b), Section 12.113, Education Code, |
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is repealed. |
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SECTION 15. Sections 1 and 2 of this Act apply beginning |
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with the 2012-2013 school year. The remainder of the bill shall |
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apply as soon as this Act takes effect. |
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SECTION 16. 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. |
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