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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, Education Code, is amended by |
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amending Subsection (b) and adding Subsections (b-1), (b-2), and |
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(b-3) to read as follows: |
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(b) The State Board of Education may grant a charter for an |
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open-enrollment charter school only to an applicant that meets any |
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financial, governing, 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 a total of more than 215 charters for an
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open-enrollment charter school each state fiscal year.
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(b-1) A charter holder of an existing charter may establish |
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one or more new open-enrollment charter school campuses under an |
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existing charter if: |
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(1) Each campus operating under the charter has been |
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assigned an acceptable performance rating as provided by Subchapter |
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C, Chapter 39, for two consecutively preceding school years; |
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(2) The open enrollment charter school has been |
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assigned a financial accountability rating under Subchapter D, |
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Chapter 39, indicating financial performance that is satisfactory |
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or better; |
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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 |
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commissioner of the establishment of any campus under this |
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subsection; and |
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(4) Not later than the 60th day after the date the |
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charter holder provides written notice under subsection (3), the |
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commissioner does not provide written notice to the charter holder |
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disapproving a new campus. |
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(b-2) The initial term of a charter granted under this |
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section is five years. |
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SECTION 3. Section 12.102, Education Code, is amended to |
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read as follows: |
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Sec. 12.102. AUTHORITY UNDER CHARTER. An open-enrollment |
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charter school: |
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(1) shall provide instruction to students at one or |
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more elementary or secondary grade levels as provided by the |
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charter; |
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(2) is governed under the governing structure |
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described by the charter; |
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(3) retains authority to operate under the charter to |
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the extent authorized under Sections 12.1141, 12.115, and 12.116 |
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and Subchapter E, Chapter 39 [contingent on satisfactory student
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performance as provided by the charter in accordance with Section
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12.111]; and |
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(4) does not have authority to impose taxes. |
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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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of an application for a charter for an open-enrollment charter |
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school under Section 12.110 or on receipt by the commissioner of |
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notice of the establishment of a campus as authorized under Section |
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12.101(b-2): |
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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(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 the status of the charter as determined |
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under Section 12.1141 or 12.115 or under Subchapter E, Chapter 39 |
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[acceptable student performance on assessment instruments adopted
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under Subchapter B, Chapter 39, and on compliance with any
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accountability provision specified by the charter, by a deadline or
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at intervals 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 or Subchapter E, Chapter 39, on which |
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the charter may be placed on probation or revoked [or on which
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renewal of the charter 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 6. Subchapter D, Chapter 12, Education Code, is |
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amended by adding Section 12.1141 to read as follows: |
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Sec. 12.1141. DENIAL OF RENEWAL OF CHARTER ON EXPIRATION OF |
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INITIAL TERM; AUTOMATIC RENEWAL. (a) At the end of the initial term |
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of a charter of an open-enrollment charter school, the charter |
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automatically renews without action by the commissioner, except |
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that the commissioner shall, except as provided by Subsection (b), |
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deny renewal of the charter if: |
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(1) a campus operating under the charter has been |
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assigned an unacceptable performance rating under Subchapter C, |
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Chapter 39, for three of the five preceding school years and such a |
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campus has not been closed; or |
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(2) the open-enrollment charter school has been |
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assigned a financial accountability performance rating lower than |
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the rating of standard achievement under Subchapter D, Chapter 39, |
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for three of the five preceding school years. |
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(b) In evaluating performance under Chapter 39.053(c), the |
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commissioner shall designate as a dropout recovery school any |
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open-enrollment charter school or any campus of an open-enrollment |
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charter school that: |
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(i) has a student population comprised of |
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at least 50% of students age 17 or older as of the fall Public |
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Education Information Management (PEIMS) submission for the school |
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year evaluated; and |
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(ii) is registered under any alternative |
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education accountability procedures adopted by the commissioner. |
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(b-1) The commissioner shall not deny renewal of the initial |
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or any successive term of an open-enrollment charter school |
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designated as a dropout recovery school under subsection (b), or |
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any open-enrollment charter school that is a residential treatment |
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facility as defined by Section 5.001(8), based solely on the |
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criteria specified under subsection (a)(1) or (e), as applicable. |
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For the purposes of renewal of the term of the charter under |
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subsection (a)(1) or (e), the commissioner must consider, as |
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determined by the commissioner in accordance with commissioner |
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rule, appropriate criteria to measure the specific goals and |
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student population of the open-enrollment charter school. |
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(c) Not later than the 365th day before the last day of the |
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initial term of a charter for an open-enrollment charter school, |
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the commissioner shall provide written notice to the charter |
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holder, in accordance with commissioner rule, of the basis on which |
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a charter renewal is denied under Subsection (a) or (b), as |
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applicable. |
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(d) Before the commissioner denies the renewal of the |
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initial term of the charter of an open-enrollment charter school, |
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the commissioner must provide the opportunity for a hearing to the |
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charter holder and the parents and guardians of students of the |
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school. A hearing under this subsection must be held at the |
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facility at which the school is operated. Chapter 2001, Government |
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Code, does not apply to a hearing under this subsection. |
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(e) A charter of an open-enrollment charter school that has |
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been renewed at the end of the initial term of the charter |
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automatically renews at the end of each successive charter term |
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without action by the commissioner, except that the commissioner |
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shall deny renewal of the charter if the accreditation of the |
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open-enrollment charter school has been revoked. |
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(f) The term of a charter renewed under this section is 20 |
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years for each renewal. |
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(g) A campus of an open-enrollment charter school rated as |
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academically unacceptable under Subchapter D, Chapter 39, as that |
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subchapter existed January 1, 2009, for the 2008-2009, 2009-2010, |
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or 2010-2011 school year is considered to have been assigned an |
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unacceptable performance rating for that school year under |
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Subsection (a)(1). For purposes of Subsection (a)(2), based on |
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financial accountability reviews, the commissioner shall determine |
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the appropriate financial accountability performance rating to be |
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assigned to a charter holder for the 2008-2009 and 2009-2010 school |
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years. This subsection expires September 1, 2016. |
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SECTION 7. 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, REVOCATION, OR MODIFICATION OF GOVERNANCE [DENIAL OF
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RENEWAL]. (a) The commissioner may shall 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 or may reconstitute the governing |
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body of the charter holder or assign operation of an |
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open-enrollment charter school campus to a different charter holder |
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if the 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; or |
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(5) is imminently insolvent as determined by the |
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commissioner in accordance with commissioner 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 open-enrollment charter |
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school's students, the severity of the violation, [and] any |
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previous violation the school has committed, and the accreditation |
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status of the school. |
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SECTION 8. The heading to Section 12.116, Education Code, |
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is amended to read as follows: |
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Sec. 12.116. PROCEDURE FOR MODIFICATION, PLACEMENT ON |
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PROBATION, OR REVOCATION[, OR DENIAL OF RENEWAL]. |
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SECTION 9. Sections 12.116(a) and (c), Education Code, are |
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amended to read as follows: |
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(a) The commissioner shall adopt a procedure to be used for |
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modifying, placing on probation, or revoking[, or denying renewal
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of] the charter of an open-enrollment charter school. |
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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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or revocation[, or denial of renewal] under this subchapter. |
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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 |
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charter 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 12.156(b), Education Code, is repealed. |