83R7945 JSL-D

By: Anchia H.B. No. 3144

A BILL TO BE ENTITLED

AN ACT

relating to establishment of the Public Charter School Authority.

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

SECTION 1. Chapter 12, Education Code, is amended by adding Subchapter C-1 to read as follows:

SUBCHAPTER C-1. PUBLIC CHARTER SCHOOL AUTHORITY

Sec. 12.071. DEFINITION. In this subchapter, "authority" means the Public Charter School Authority.

Sec. 12.072. PUBLIC CHARTER SCHOOL AUTHORITY: ESTABLISHMENT; GENERAL POWERS AND DUTIES. The Public Charter School Authority is established to:

(1) grant charters for open-enrollment charter schools under Subchapter D; and

(2) oversee the operations of open-enrollment charter schools in accordance with this subchapter and Subchapter D, including imposing sanctions under that subchapter.

Sec. 12.073. SUNSET REVIEW. The authority is subject to Chapter 325, Government Code (Texas Sunset Act). Unless continued in existence as provided by that chapter, the authority is abolished and this subchapter expires September 1, 2025.

Sec. 12.074. COMPOSITION; ELIGIBILITY. (a) The authority is composed of seven members appointed as follows:

(1) three members appointed by the governor, one of whom must be appointed from a list of candidates submitted to the governor by the speaker of the house of representatives;

(2) two members appointed by the lieutenant governor;

(3) one member appointed by the commissioner; and

(4) one member appointed by the chair of the State Board of Education.

(b) To be eligible to be appointed as a member of the authority, a person must have demonstrated expertise in at least one of the following:

(1) public or nonprofit governance;

(2) management and finance;

(3) public charter school leadership;

(4) assessment of students, curriculum, and instruction; or

(5) public school law.

(c) In making appointments to the authority, the appointing authorities shall ensure that the authority as a whole has expertise in the following:

(1) student learning, quality teaching, and evaluation of and accountability by successful schools;

(2) the operation of a financially sound enterprise, including the leadership and management techniques and budgeting and accounting skills used in the start-up of a successful enterprise;

(3) the educational, social, and economic development needs of this state;

(4) the needs and interests of the students and parents in this state; and

(5) methods to involve parents and other members of the community in individual schools.

(d) A person who is employed by a public school is ineligible to be appointed to or to serve as a member of the authority.

(e) The initial appointments to the authority shall be made as soon as practicable after the effective date of this subchapter. This subsection expires September 1, 2014.

Sec. 12.075. TERMS; VACANCY. (a) The members of the authority serve staggered four-year terms, with the terms of either three or four members expiring February 1 of each odd-numbered year. A member may not serve more than two consecutive terms. For purposes of that prohibition, a member is considered to have served a term only if the member has served more than half of the term.

(a-1) Notwithstanding Subsection (a), the initial members appointed to the authority shall determine by lot which three of the seven initial members will serve terms that expire February 1, 2015, and which four of the seven initial members will serve terms that expire February 1, 2017. This subsection expires January 1, 2018.

(b) A vacancy on the authority shall be filled in the same manner as the original appointment for that position. An appointment to fill a vacancy shall be made not later than the 30th day after the date the vacancy occurs.

Sec. 12.076. PRESIDING OFFICER. (a) A majority of the members of the authority shall designate a member of the authority as the presiding officer of the authority.

(b) The members of the authority shall designate a presiding officer in March of each odd-numbered year or may replace a presiding officer at any other time by a vote of a majority of the members.

Sec. 12.077. MEETINGS. (a) The authority shall meet at least four times each year.

(b) The authority shall meet at the call of the presiding officer or of at least four members.

Sec. 12.078. REIMBURSEMENT. A member of the authority is not entitled to compensation for service as a member of the authority but is entitled to reimbursement for actual and necessary expenses incurred in performing functions as a member of the authority, as provided in the General Appropriations Act.

Sec. 12.079. EXECUTIVE DIRECTOR; PERSONNEL AND RESOURCES. (a) The presiding officer of the authority may employ, terminate the employment of, and establish the salary of an executive director or of any other personnel for the authority as the presiding officer considers necessary.

(b) The agency may provide the authority with operational and staff support as agreed to by the agency and the authority.

Sec. 12.080. SEPARATE AUTHORITY AND AGENCY RESPONSIBILITIES. The authority shall, in coordination with the agency, develop and administer policies that clearly separate the responsibilities of the authority and the responsibilities of the agency as to open-enrollment charter schools.

Sec. 12.081. ANNUAL REPORT. Not later than November 1 of each year, the authority shall submit a report to the legislature concerning the authority's actions and the performance of open-enrollment charter schools during the preceding year.

Sec. 12.082. RULES. The authority may adopt rules as necessary to carry out its powers and duties under this subchapter and under Subchapter D.

SECTION 2. Section 12.101, Education Code, is amended by amending Subsections (a) and (b) and adding Subsections (b-1) and (b-2) to read as follows:

(a) In accordance with this subchapter, the authority [State Board of Education] may grant a charter on the application of an eligible entity for an open-enrollment charter school to operate in a facility of a commercial or nonprofit entity, an eligible entity, or a school district, including a home-rule school district. In this subsection, "eligible entity" means:

(1) an institution of higher education as defined under Section 61.003;

(2) a private or independent institution of higher education as defined under Section 61.003;

(3) an organization that is exempt from taxation under Section 501(c)(3), Internal Revenue Code of 1986 (26 U.S.C. Section 501(c)(3)); or

(4) a governmental entity.

(b) After thoroughly investigating and evaluating an applicant, the authority [The State Board of Education] may grant a charter for an open-enrollment charter school only to an applicant that meets any financial, governing, curriculum development and implementation, and operational standards adopted by the authority [commissioner] under this subchapter. The State Board of Education may not grant a total of more than 215 charters for an open-enrollment charter school.

(b-1) The authority may not grant more than one charter for an open-enrollment charter school to any charter holder. The authority may consolidate charters for an open-enrollment charter school held by multiple charter holders into a single charter held by a single charter holder with the written consent to the terms of consolidation by each charter holder affected by the consolidation.

(b-2) The initial term of a charter granted under this section is five years.

SECTION 3. Section 12.1012, Education Code, is amended by amending Subdivision (1) and adding Subdivision (1-a) to read as follows:

(1) "Authority" means the Public Charter School Authority established under Subchapter C-1.

(1-a) "Charter holder" means the entity to which a charter is granted under this subchapter.

SECTION 4. Section 12.104(b), Education Code, is amended to read as follows:

(b) An open-enrollment charter school is subject to:

(1) a provision of this title establishing a criminal offense; and

(2) a prohibition, restriction, or requirement, as applicable, imposed by this title or a rule adopted under this title, relating to:

(A) the Public Education Information Management System (PEIMS) to the extent necessary to monitor compliance with this subchapter as determined by the commissioner;

(B) criminal history records under Subchapter C, Chapter 22;

(C) reading instruments and accelerated reading instruction programs under Section 28.006;

(D) accelerated instruction under Section 28.0211;

(E) high school graduation requirements under Section 28.025;

(F) special education programs under Subchapter A, Chapter 29;

(G) bilingual education under Subchapter B, Chapter 29;

(H) prekindergarten programs under Subchapter E, Chapter 29;

(I) extracurricular activities under Section 33.081;

(J) discipline management practices or behavior management techniques under Section 37.0021;

(K) health and safety under Chapter 38;

(L) public school accountability under Subchapters B, C, D, E, F, G, and J, Chapter 39;

(M) the requirement under Section 21.006 to report an educator's misconduct; and

(N) intensive programs of instruction under Section 28.0213.

SECTION 5. Sections 12.1052(d) and (e), Education Code, are amended to read as follows:

(d) The records of an open-enrollment charter school that ceases to operate shall be transferred in the manner specified by the authority [commissioner] to a custodian designated by the authority [commissioner]. The authority [commissioner] may designate any appropriate entity to serve as custodian, including the agency, a regional education service center, or a school district. In designating a custodian, the authority [commissioner] shall ensure that the transferred records, including student and personnel records, are transferred to a custodian capable of:

(1) maintaining the records;

(2) making the records readily accessible to students, parents, former school employees, and other persons entitled to access; and

(3) complying with applicable state or federal law restricting access to the records.

(e) If the charter holder of an open-enrollment charter school that ceases to operate or an officer or employee of such a school refuses to transfer school records in the manner specified by the authority [commissioner] under Subsection (d), the authority [commissioner] may ask the attorney general to petition a court for recovery of the records. If the court grants the petition, the court shall award attorney's fees and court costs to the state.

SECTION 6. Section 12.1053(a), Education Code, is amended to read as follows:

(a) This section applies to an open-enrollment charter school unless the school's charter otherwise describes procedures for purchasing and contracting and the procedures are approved by the authority [State Board of Education].

SECTION 7. Section 12.1057(a), Education Code, is amended to read as follows:

(a) An employee of an open-enrollment charter school [operating under a charter granted by the State Board of Education] who qualifies for membership in the Teacher Retirement System of Texas shall be covered under the system to the same extent a qualified employee of a school district is covered.

SECTION 8. Sections 12.110(a), (c), and (d), Education Code, are amended to read as follows:

(a) The authority [State Board of Education] shall adopt:

(1) an application form and a procedure that must be used to apply for a charter for an open-enrollment charter school; and

(2) criteria to use in selecting a program for which to grant a charter.

(c) As part of the application procedure, the authority [board] may require a petition supporting a charter for a school signed by a specified number of parents or guardians of school-age children residing in the area in which a school is proposed or may hold a public hearing to determine parental support for the school.

(d) The authority [board] may approve or deny an application based on criteria the authority [it] adopts. The criteria the authority [board] adopts must include:

(1) criteria relating to improving student performance and encouraging innovative programs; and

(2) a statement from any school district whose enrollment is likely to be affected by the open-enrollment charter school, including information relating to any financial difficulty that a loss in enrollment may have on the district.

SECTION 9. Section 12.1101, Education Code, is amended to read as follows:

Sec. 12.1101. NOTIFICATION OF CHARTER APPLICATION. The authority [commissioner] by rule shall adopt a procedure for providing notice to the following persons on receipt by the authority [State Board of Education] of an application for a charter for an open-enrollment charter school under Section 12.110:

(1) the board of trustees of each school district from which the proposed open-enrollment charter school is likely to draw students, as determined by the authority [commissioner]; and

(2) each member of the legislature that represents the geographic area to be served by the proposed school, as determined by the authority [commissioner].

SECTION 10. Section 12.111(a), Education Code, is amended to read as follows:

(a) Each charter granted under this subchapter must:

(1) describe the educational program to be offered, which must include the required curriculum as provided by Section 28.002;

(2) specify the period for which the charter or any charter renewal is valid;

(3) provide that continuation or renewal of the charter is contingent on acceptable student performance on assessment instruments adopted under Subchapter B, Chapter 39, and on compliance with any accountability provision specified by the charter, by a deadline or at intervals specified by the charter;

(4) establish the level of student performance that is considered acceptable for purposes of Subdivision (3);

(5) specify any basis, in addition to a basis specified by this subchapter, on which the charter may be placed on probation or revoked or on which renewal of the charter may be denied;

(6) prohibit discrimination in admission policy on the basis of sex, national origin, ethnicity, religion, disability, academic, artistic, or athletic ability, or the district the child would otherwise attend in accordance with this code, although the charter may:

(A) provide for the exclusion of a student who has a documented history of a criminal offense, a juvenile court adjudication, or discipline problems under Subchapter A, Chapter 37; and

(B) provide for an admission policy that requires a student to demonstrate artistic ability if the school specializes in performing arts;

(7) specify the grade levels to be offered;

(8) describe the governing structure of the program, including:

(A) the officer positions designated;

(B) the manner in which officers are selected and removed from office;

(C) the manner in which members of the governing body of the school are selected and removed from office;

(D) the manner in which vacancies on that governing body are filled;

(E) the term for which members of that governing body serve; and

(F) whether the terms are to be staggered;

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

(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;

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

(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 commissioner [State Board of Education] rule, in the Public Education Information Management System (PEIMS);

(13) describe the facilities to be used;

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

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

SECTION 11. Section 12.112, Education Code, is amended to read as follows:

Sec. 12.112. FORM. A charter for an open-enrollment charter school shall be in the form of a written contract signed by the chair of the authority [State Board of Education] and the chief operating officer of the school.

SECTION 12. Section 12.113(a), Education Code, is amended to read as follows:

(a) Each charter the authority [State Board of Education] grants for an open-enrollment charter school must:

(1) satisfy this subchapter; and

(2) include the information that is required under Section 12.111 consistent with the information provided in the application and any modification the authority [board] requires.

SECTION 13. Section 12.114(a), Education Code, is amended to read as follows:

(a) A revision of a charter of an open-enrollment charter school may be made only with the approval of the authority [commissioner].

SECTION 14. Section 12.115, Education Code, is amended to read as follows:

Sec. 12.115. BASIS FOR MODIFICATION, PLACEMENT ON PROBATION, REVOCATION, OR DENIAL OF RENEWAL. (a) The authority [commissioner] may modify, place on probation, revoke, or deny renewal of the charter of an open-enrollment charter school if the authority [commissioner] determines that the charter holder:

(1) committed a material violation of the charter, including failure to satisfy accountability provisions prescribed by the charter;

(2) failed to satisfy generally accepted accounting standards of fiscal management;

(3) failed to protect the health, safety, or welfare of the students enrolled at the school; or

(4) failed to comply with this subchapter or another applicable law or rule.

(b) The action the authority [commissioner] takes under Subsection (a) shall be based on the best interest of the school's students, the severity of the violation, and any previous violation the school has committed.

SECTION 15. Section 12.116(a), Education Code, is amended to read as follows:

(a) The authority [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.

SECTION 16. Section 12.1161(a), Education Code, is amended to read as follows:

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

(1) continue to operate under this subchapter; or

(2) receive state funds under this subchapter.

SECTION 17. Section 12.1162, Education Code, is amended to read as follows:

Sec. 12.1162. ADDITIONAL SANCTIONS. (a) The authority [commissioner] shall take any of the actions described by Subsection (b) or by Section 39.102(a), to the extent the authority [commissioner] determines necessary, if an open-enrollment charter school, as determined by a report issued under Section 39.058(b):

(1) commits a material violation of the school's charter;

(2) fails to satisfy generally accepted accounting standards of fiscal management; or

(3) fails to comply with this subchapter or another applicable rule or law.

(b) The authority [commissioner] may direct the commissioner to temporarily withhold funding or may [,] suspend the authority of an open-enrollment charter school to operate[,] or take any other reasonable action the authority [commissioner] determines necessary to protect the health, safety, or welfare of students enrolled at the school based on evidence that conditions at the school present a danger to the health, safety, or welfare of the students.

(c) After action is taken [the commissioner acts] under Subsection (b), the open-enrollment charter school may not receive funding and may not resume operating until a determination is made that:

(1) despite initial evidence, the conditions at the school do not present a danger of material harm to the health, safety, or welfare of students; or

(2) the conditions at the school that presented a danger of material harm to the health, safety, or welfare of students have been corrected.

(d) Not later than the third business day after the date action is taken [the commissioner acts] under Subsection (b), the authority [commissioner] shall provide the charter holder an opportunity for a hearing.

(e) Immediately after a hearing under Subsection (d), the authority [commissioner] must cease or direct the commissioner to cease the action under Subsection (b), as applicable, or initiate action under Section 12.116.

(f) The authority [commissioner] shall adopt rules implementing this section. Chapter 2001, Government Code, does not apply to a hearing under this section.

SECTION 18. The heading to Section 12.1163, Education Code, is amended to read as follows:

Sec. 12.1163. AUDIT BY AUTHORITY [COMMISSIONER].

SECTION 19. Sections 12.1163(a) and (c), Education Code, are amended to read as follows:

(a) To the extent consistent with this section, the authority [commissioner] may audit the records of:

(1) an open-enrollment charter school;

(2) a charter holder; and

(3) a management company.

(c) Unless the authority [commissioner] has specific cause to conduct an additional audit, the authority [commissioner] may not conduct more than one on-site audit under this section [Section 12.1163] during any fiscal year, including any financial and administrative records. For purposes of this subsection, an audit of a charter holder or management company associated with an open-enrollment charter school is not considered an audit of the school.

SECTION 20. Section 12.1164(a), Education Code, is amended to read as follows:

(a) The authority [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 21. Sections 12.118(a) and (c), Education Code, are amended to read as follows:

(a) The authority [commissioner] shall designate an impartial organization with experience in evaluating school choice programs to conduct, under the supervision of the authority, an annual evaluation of open-enrollment charter schools.

(c) The evaluation of open-enrollment charter schools must also include an evaluation of:

(1) the costs of instruction, administration, and transportation incurred by open-enrollment charter schools;

(2) the effect of open-enrollment charter schools on school districts and on teachers, students, and parents in those districts; and

(3) other issues, as determined by the authority [commissioner].

SECTION 22. Section 12.119, Education Code, is amended to read as follows:

Sec. 12.119. BYLAWS; ANNUAL REPORT. (a) A charter holder shall file with the authority [State Board of Education] a copy of its articles of incorporation and bylaws, or comparable documents if the charter holder does not have articles of incorporation or bylaws, within the period and in the manner prescribed by the authority [board].

(b) Each year within the period and in a form prescribed by the authority [State Board of Education], each open-enrollment charter school shall file with the authority [board] the following information:

(1) the name, address, and telephone number of each officer and member of the governing body of the open-enrollment charter school; and

(2) the amount of annual compensation the open-enrollment charter school pays to each officer and member of the governing body.

(c) On request, the authority [State Board of Education] shall provide the information required by this section and Section 12.111(a)(8) to a member of the public. The authority [board] may charge a reasonable fee to cover the authority's [board's] cost in providing the information.

SECTION 23. Section 12.122(a), Education Code, is amended to read as follows:

(a) Notwithstanding the Texas Nonprofit Corporation Law [Texas Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon's Texas Civil Statutes)] or other law, on request of the authority [commissioner], the attorney general may bring suit against a member of the governing body of an open-enrollment charter school for breach of a fiduciary duty by the member, including misapplication of public funds.

SECTION 24. Section 12.123, Education Code, is amended to read as follows:

Sec. 12.123. TRAINING FOR MEMBERS OF GOVERNING BODY OF SCHOOL AND OFFICERS. (a) The authority [commissioner] shall adopt rules prescribing training for:

(1) members of governing bodies of open-enrollment charter schools; and

(2) officers of open-enrollment charter schools.

(b) The rules adopted under Subsection (a) may:

(1) specify the minimum amount and frequency of the training;

(2) require the training to be provided by:

(A) the agency and regional education service centers;

(B) entities other than the agency and service centers, subject to approval by the authority [commissioner]; or

(C) both the agency, service centers, and other entities; and

(3) require training to be provided concerning:

(A) basic school law, including school finance;

(B) health and safety issues;

(C) accountability requirements related to the use of public funds; and

(D) other requirements relating to accountability to the public, such as open meetings requirements under Chapter 551, Government Code, and public information requirements under Chapter 552, Government Code.

SECTION 25. Subchapter D, Chapter 12, Education Code, is amended by adding Section 12.1231 to read as follows:

Sec. 12.1231. TRAINING FOR AGENCY AND AUTHORITY EMPLOYEES. Each agency employee assigned responsibility related to granting charters for open-enrollment charter schools or providing oversight or monitoring of charter holders or open-enrollment charter schools and each authority employee must, not later than the 30th day after the employee's first day of agency or authority employment, participate in training on charter school authorization, oversight, and monitoring provided by a nationally recognized organization of charter school authorizers identified by the authority.

SECTION 26. Section 12.126, Education Code, is amended to read as follows:

Sec. 12.126. CERTAIN MANAGEMENT SERVICES CONTRACTS PROHIBITED. The authority [commissioner] may prohibit, deny renewal of, suspend, or revoke a contract between an open-enrollment charter school and a management company providing management services to the school if the authority [commissioner] determines that the management company has:

(1) failed to provide educational or related services in compliance with the company's contractual or other legal obligation to any open-enrollment charter school in this state or to any other similar school in another state;

(2) failed to protect the health, safety, or welfare of the students enrolled at an open-enrollment charter school served by the company;

(3) violated this subchapter or a rule adopted under this subchapter; or

(4) otherwise failed to comply with any contractual or other legal obligation to provide services to the school.

SECTION 27. Section 12.127(b), Education Code, is amended to read as follows:

(b) On request of the authority [commissioner], the attorney general may bring suit on behalf of the state against a management company liable under Subsection (a) for:

(1) damages, including any state funding received by the company and any consequential damages suffered by the state;

(2) injunctive relief; or

(3) any other equitable remedy determined to be appropriate by the court.

SECTION 28. Sections 12.128(c) and (d), Education Code, are amended to read as follows:

(c) The authority [commissioner] shall:

(1) take possession and assume control of the property described by Subsection (a) of an open-enrollment charter school that ceases to operate; and

(2) supervise the disposition of the property in accordance with law.

(d) The authority [commissioner] may adopt rules necessary to administer this section.

SECTION 29. Section 12.135(a), Education Code, is amended to read as follows:

(a) On the application of the charter holder, the authority [commissioner] may grant designation as a charter district to an open-enrollment charter school that meets financial standards adopted by the authority [commissioner]. The financial standards must require an open-enrollment charter school to have an investment grade credit rating as specified by Section 45.0541.

SECTION 30. Section 221.0071(a), Human Resources Code, is amended to read as follows:

(a) Notwithstanding any other law and in addition to the number of charters allowed under Subchapter D, Chapter 12, Education Code, the Public Charter School Authority [State Board of Education] may grant a charter on the application of a detention, correctional, or residential facility established only for juvenile offenders under Section 51.12, 51.125, or 51.126, Family Code.

SECTION 31. Section 221.056(d), Human Resources Code, is amended to read as follows:

(d) Notwithstanding any other law and in addition to the number of charters allowed under Subchapter D, Chapter 12, Education Code, the Public Charter School Authority [State Board of Education] shall grant a charter on the application of a residential treatment facility established under this section for a school chartered for the purposes of this section.

SECTION 32. Section 1579.154(a), Insurance Code, is amended to read as follows:

(a) A charter school is eligible to participate in the program if the school agrees:

(1) that all records of the school relating to participation in the program are open to inspection by the trustee, the administering firm, the commissioner of education, the Public Charter School Authority, or a designee of any of those entities; and

(2) to have the school's accounts relating to participation in the program annually audited by a certified public accountant at the school's expense.

SECTION 33. (a) The amendment of Chapter 12, Education Code, by this Act to transfer authority for charter schools from the State Board of Education and the commissioner of education to the Public Charter School Authority does not affect the status of a charter, including any legal rights, duties, and obligations based on a charter, granted under Subchapter D, Chapter 12, Education Code, before May 1, 2014.

(b) Section 12.101(b-1), Education Code, as added by this Act, does not affect the status of any charter for an open-enrollment charter school, including any legal rights, duties, and obligations based on a charter, that is among multiple charters granted to a single charter holder before September 1, 2013.

SECTION 34. Notwithstanding Section 12.1231, Education Code, as added by this Act, not later than June 1, 2014, each Texas Education Agency employee assigned responsibility related to granting charters for open-enrollment charter schools or providing oversight or monitoring of charter holders or open-enrollment charter schools and each Public Charter School Authority employee who began that employment before May 1, 2014, must participate in training as described by Section 12.1231, Education Code, as added by this Act.

SECTION 35. (a) Effective May 1, 2014, except as provided by Subsection (b) of this section:

(1) all functions and activities performed immediately before that date by the State Board of Education that specifically relate only to open-enrollment charter schools or by the commissioner of education under Subchapter D, Chapter 12, Education Code, are transferred to the Public Charter School Authority;

(2) a rule, form, policy, procedure, or decision of the State Board of Education that specifically relates only to open-enrollment charter schools or of the commissioner of education under Subchapter D, Chapter 12, Education Code, continues in effect as a rule, form, policy, procedure, or decision of the Public Charter School Authority and remains in effect until amended or replaced by the Public Charter School Authority;

(3) a reference in law or administrative rule to the State Board of Education that specifically relates only to open-enrollment charter schools means the Public Charter School Authority;

(4) all money, contracts, leases, rights, property, records, and bonds and other obligations of the State Board of Education or of the commissioner of education under Subchapter D, Chapter 12, Education Code, that specifically relate only to open-enrollment charter schools are transferred to the Public Charter School Authority;

(5) a court case, administrative proceeding, contract negotiation, or other proceeding involving the State Board of Education that specifically relates only to open-enrollment charter schools or involving the commissioner of education under Subchapter D, Chapter 12, Education Code, is transferred without change in status to the Public Charter School Authority, and the Public Charter School Authority assumes, without a change in status, the position of the State Board of Education or commissioner of education, as applicable, in a negotiation or proceeding relating to an activity transferred by this Act to the Public Charter School Authority to which the State Board of Education or commissioner of education, as applicable, is a party;

(6) an employee of the State Board of Education assigned only or primarily to duties relating to open-enrollment charter schools becomes an employee of the Texas Education Agency; and

(7) any unexpended and unobligated balance of money appropriated by the legislature for the State Board of Education for carrying out duties that specifically relate to open-enrollment charter schools is transferred to the Public Charter School Authority.

(b) Notwithstanding Subsection (a) of this section, the commissioner of education remains responsible for administering state funding and the Public Education Information Management System (PEIMS) for purposes of Subchapter D, Chapter 12, Education Code, to the same extent the commissioner of education had that responsibility on April 30, 2014.

(c) In the period beginning on January 1, 2014, and ending on April 30, 2014:

(1) the State Board of Education and the commissioner of education shall continue to perform their respective functions and activities relating to open-enrollment charter schools as provided under the Education Code or other law as if the law had not been amended or repealed, as applicable, and the former law is continued in effect for that purpose; and

(2) a person who is authorized or required by law to take an action relating to the State Board of Education, a member of the State Board of Education, or the commissioner of education relating to open-enrollment charter schools shall continue to take that action under the law as if the law had not been amended or repealed, as applicable, and the former law is continued in effect for that purpose.

SECTION 36. Before May 1, 2014, the State Board of Education may agree with the Public Charter School Authority to transfer any property of the State Board of Education to the Public Charter School Authority to implement the transfer required by Section 35 of this Act.

SECTION 37. This Act takes effect September 1, 2013.