Bill Text: TX SB127 | 2011-2012 | 82nd Legislature | Comm Sub
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to the establishment, operation, and funding of charter schools.
Spectrum: Partisan Bill (Republican 3-0)
Status: (Engrossed - Dead) 2011-05-22 - Committee report sent to Calendars [SB127 Detail]
Download: Texas-2011-SB127-Comm_Sub.html
Bill Title: Relating to the establishment, operation, and funding of charter schools.
Spectrum: Partisan Bill (Republican 3-0)
Status: (Engrossed - Dead) 2011-05-22 - Committee report sent to Calendars [SB127 Detail]
Download: Texas-2011-SB127-Comm_Sub.html
82R28695 CAS-D | ||
By: Patrick | S.B. No. 127 | |
(Harless) | ||
Substitute the following for S.B. No. 127: No. |
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relating to the establishment, operation, and funding of charter | ||
schools. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. The heading to Section 12.101, Education Code, | ||
is amended to read as follows: | ||
Sec. 12.101. AUTHORIZATION FOR LICENSE. | ||
SECTION 2. Section 12.101, Education Code, is amended by | ||
amending Subsections (a), (b), and (d) and adding Subsections (e) | ||
and (f) to read as follows: | ||
(a) In accordance with this subchapter, the State Board of | ||
Education may issue [ |
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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) The State Board of Education, after thoroughly | ||
investigating and evaluating an applicant, may issue [ |
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license [ |
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applicant that meets any financial, governing, curriculum | ||
development and implementation, and operational standards adopted | ||
by the commissioner under this subchapter. In a state fiscal year, | ||
the [ |
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more than 10 new licenses [ |
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charter school plus a number of licenses equal to any number of | ||
charters for an open-enrollment charter school revoked or | ||
surrendered during the preceding state fiscal year. | ||
(d) An educator employed by a school district before the | ||
effective date of a license [ |
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charter school operated at a school district facility may not be | ||
transferred to or employed by the open-enrollment charter school | ||
over the educator's objection. | ||
(e) A license holder is subject to any law applicable to a | ||
charter holder. | ||
(f) The commissioner shall adopt rules for the form of a | ||
license, the basis and a procedure for modification or revocation | ||
of a license, and any other rules necessary for the issuance and | ||
administration of licenses under this subchapter. A rule adopted | ||
under this subsection must, to the greatest extent practicable, be | ||
consistent with a provision of this subchapter or a rule adopted | ||
under this subchapter for the same purpose as applicable to a | ||
charter. | ||
SECTION 3. Subchapter D, Chapter 12, Education Code, is | ||
amended by adding Sections 12.1011 and 12.10111 to read as follows: | ||
Sec. 12.1011. AUTHORIZATION FOR ISSUANCE OF LICENSES FOR | ||
SCHOOLS PRIMARILY SERVING STUDENTS WITH DISABILITIES. (a) The | ||
State Board of Education may issue under Section 12.101 a license on | ||
the application of an eligible entity for an open-enrollment | ||
charter school intended primarily to serve students with | ||
disabilities, including students with autism. The State Board of | ||
Education may not issue more than two new licenses for an | ||
open-enrollment charter school under this section each state fiscal | ||
year. A license issued under this section is not considered for | ||
purposes of the limit on the number of licenses imposed by Section | ||
12.101(b). | ||
(b) For purposes of the applicability of state and federal | ||
law, including a law prescribing requirements concerning students | ||
with disabilities, an open-enrollment charter school described by | ||
Subsection (a) is considered the same as any other school for which | ||
a license or charter is issued under this subchapter. | ||
(c) To the fullest extent permitted under federal law, a | ||
parent of a student with a disability may choose to enroll the | ||
parent's child in an open-enrollment charter school described by | ||
Subsection (a) regardless of whether a disproportionate number of | ||
the school's students are students with disabilities. | ||
(d) This section does not authorize an open-enrollment | ||
charter school to discriminate in admissions or in the services | ||
provided based on the presence, absence, or nature of an | ||
applicant's or student's disability. | ||
Sec. 12.10111. AUTHORIZATION FOR CHARTER. (a) The State | ||
Board of Education shall grant a charter for an open-enrollment | ||
charter school to a license holder under Section 12.101 if: | ||
(1) the open-enrollment charter school for which the | ||
license has been issued has been assigned an acceptable performance | ||
rating as provided by Subchapter C, Chapter 39, for any two of the | ||
preceding three school years; | ||
(2) no campus operating under the license has been | ||
assigned an unacceptable performance rating as provided by | ||
Subchapter C, Chapter 39, for any two of the three preceding school | ||
years or such a campus has been closed; and | ||
(3) the license holder satisfies standards of | ||
financial solvency and financial accountability established by the | ||
commissioner under Subchapter D, Chapter 39. | ||
(b) Notwithstanding Section 12.101 and in accordance with | ||
Section 12.110, the State Board of Education may grant a charter for | ||
an open-enrollment charter school to an applicant for a charter | ||
that: | ||
(1) is an entity described by Section 12.101(a)(3) | ||
that has operated one or more charter schools in another state and, | ||
as determined by the commissioner in accordance with commissioner | ||
rule, has achieved high performance under federal accountability | ||
and other appropriate academic and financial criteria, including at | ||
a minimum having achieved adequate yearly progress in accordance | ||
with federal law for the preceding three school years; or | ||
(2) is an entity that has operated one or more charter | ||
schools established under Subchapter C, D, or E and, as determined | ||
by the commissioner in accordance with commissioner rule, has | ||
performed well under appropriate academic and financial criteria. | ||
(c) A charter for an open-enrollment charter school granted | ||
under Subsection (b)(1) is considered a license for purposes of the | ||
limit on the number of licenses imposed by Section 12.101(b). | ||
(d) A charter holder may establish one or more new | ||
open-enrollment charter school campuses under a charter without | ||
applying for authorization if: | ||
(1) each open-enrollment charter school campus | ||
operating under the charter has been assigned an acceptable | ||
performance rating as provided by Subchapter C, Chapter 39, for the | ||
two preceding school years; | ||
(2) the charter holder satisfies standards of | ||
financial solvency and financial accountability established by | ||
commissioner rule under Subchapter D, Chapter 39; | ||
(3) the charter holder provides written notice, in the | ||
time, manner, and form provided by commissioner rule, to the State | ||
Board of Education and the commissioner of the establishment of any | ||
campus under this subsection; and | ||
(4) not later than the 90th day after the date the | ||
charter holder provides written notice under Subdivision (3), the | ||
commissioner does not provide written notice to the charter holder | ||
disapproving a new campus under this section. | ||
(e) For purposes of Subsection (d), an open-enrollment | ||
charter school campus rated as academically acceptable or higher | ||
under Subchapter D, Chapter 39, as that subchapter existed January | ||
1, 2009, for the 2009-2010 or 2010-2011 school year is considered to | ||
have been assigned an acceptable performance rating for the | ||
applicable school year. This subsection expires January 1, 2015. | ||
SECTION 4. Section 12.1012, Education Code, is amended by | ||
adding Subdivision (7) to read as follows: | ||
(7) "License holder" means the entity to which a | ||
license is granted under this subchapter. | ||
SECTION 5. Section 12.1056, Education Code, is amended to | ||
read as follows: | ||
Sec. 12.1056. IMMUNITY [ |
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related to operation of an open-enrollment charter school, an | ||
open-enrollment charter school is immune [ |
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same extent as a school district, and its employees and volunteers | ||
are immune [ |
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employees and volunteers. A member of the governing body of an | ||
open-enrollment charter school or of a charter holder is immune | ||
[ |
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(b) An open-enrollment charter school is a governmental | ||
unit as defined by Section 101.001, Civil Practice and Remedies | ||
Code, and is subject to liability only as provided by Chapter 101, | ||
Civil Practice and Remedies Code, and only in the manner that | ||
liability is provided by that chapter for a school district. | ||
(c) An open-enrollment charter school is a local government | ||
as defined by Section 102.001, Civil Practice and Remedies Code, | ||
and a payment on a tort claim must comply with Chapter 102, Civil | ||
Practice and Remedies Code. | ||
(d) An open-enrollment charter school is a local | ||
governmental entity as defined by Section 271.151, Local Government | ||
Code, and is subject to liability on a contract as provided by | ||
Subchapter I, Chapter 271, Local Government Code, and only in the | ||
manner that liability is provided by that subchapter for a school | ||
district. | ||
SECTION 6. Subchapter D, Chapter 12, Education Code, is | ||
amended by adding Section 12.1058 to read as follows: | ||
Sec. 12.1058. APPLICABILITY OF OTHER LAWS. (a) An | ||
open-enrollment charter school is considered to be: | ||
(1) a local government for purposes of Chapter 791, | ||
Government Code; | ||
(2) a local government for purposes of Chapter 2259, | ||
Government Code, except that an open-enrollment charter school may | ||
not issue public securities as provided by Section 2259.031(b), | ||
Government Code; and | ||
(3) a political subdivision for purposes of Chapter | ||
172, Local Government Code. | ||
(b) An open-enrollment charter school may elect to extend | ||
workers' compensation benefits to employees of the school through | ||
any method available to a political subdivision under Chapter 504, | ||
Labor Code, except that an open-enrollment charter school that | ||
self-insures either individually or collectively under Chapter | ||
504, Labor Code, may not provide workers' compensation medical | ||
benefits to injured employees in the manner described by Section | ||
504.053(b)(2), Labor Code. An open-enrollment charter school that | ||
elects to extend workers' compensation benefits as permitted under | ||
this section is considered to be a political subdivision for all | ||
purposes under Chapter 504, Labor Code. An open-enrollment charter | ||
school that self-insures either individually or collectively under | ||
Chapter 504, Labor Code, is considered to be an insurance carrier | ||
for purposes of Subtitle A, Title 5, Labor Code. | ||
SECTION 7. Section 12.110, Education Code, is amended by | ||
amending Subsections (a), (b), and (c) and adding Subsections (a-1) | ||
and (e) to read as follows: | ||
(a) The State Board of Education shall adopt: | ||
(1) an application form and a procedure that must be | ||
used to apply for a license [ |
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charter school; and | ||
(2) criteria to use in selecting a program for which to | ||
issue [ |
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(a-1) The State Board of Education shall adopt: | ||
(1) an application form and a procedure that must be | ||
used by an applicant described by Section 12.10111(b)(1) or (2) 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. | ||
(b) The application forms under Subsections (a) and (a-1) | ||
[ |
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Section 12.111 [ |
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(c) As part of the application procedure, the board may | ||
require a petition supporting a license or 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. | ||
(e) The commissioner by rule may establish a fee for | ||
applying for a license or charter for an open-enrollment charter | ||
school. A fee established under this subsection must be sufficient | ||
to cover the agency's administrative costs for the application | ||
process, including the costs of investigating the applicant. | ||
SECTION 8. Section 12.1101, Education Code, is amended to | ||
read as follows: | ||
Sec. 12.1101. NOTIFICATION OF LICENSE OR CHARTER | ||
APPLICATION OR ESTABLISHMENT OF CAMPUS. The commissioner by rule | ||
shall adopt a procedure for providing notice to the following | ||
persons on receipt by the State Board of Education of an application | ||
for a license or charter for an open-enrollment charter school | ||
under Section 12.110 or on receipt by the board and the commissioner | ||
of notice of the establishment of a campus as authorized under | ||
Section 12.10111(d): | ||
(1) the board of trustees of each school district from | ||
which the proposed open-enrollment charter school or campus is | ||
likely to draw students, as determined by the commissioner; and | ||
(2) each member of the legislature that represents the | ||
geographic area to be served by the proposed school or campus, as | ||
determined by the commissioner. | ||
SECTION 9. Section 12.111, Education Code, is amended by | ||
amending Subsections (a) and (b) and adding Subsections (a-1) and | ||
(c) to read as follows: | ||
(a) Except as provided by Subsection (a-1), each license | ||
issued or [ |
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(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, | ||
consistent with Section 12.116(b-1), any charter renewal is valid; | ||
(3) provide that continuation or renewal of the | ||
charter is contingent on the status of the charter as provided by | ||
Section 12.116(b-1) [ |
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(4) [ |
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[ |
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specified by this subchapter, on which the charter may be placed on | ||
probation or revoked or on which an alternative to revoking the | ||
charter, as described by Section 12.115(a-1), may be used [ |
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(5) [ |
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on the basis of sex, national origin, ethnicity, religion, | ||
disability, academic, artistic, or athletic ability, or the | ||
district the child would otherwise attend in accordance with this | ||
code, although the license or charter, as applicable, may: | ||
(A) provide for the exclusion of a student who | ||
has a documented history of a criminal offense, a juvenile court | ||
adjudication, or discipline problems under Subchapter A, Chapter | ||
37; and | ||
(B) provide for an admission policy that requires | ||
a student to demonstrate artistic ability if the school specializes | ||
in performing arts; | ||
(6) [ |
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(7) [ |
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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; | ||
(8) [ |
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governing body of the school that the governing body may delegate to | ||
an officer; | ||
(9) [ |
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distribute to parents information related to the qualifications of | ||
each professional employee of the program, including any | ||
professional or educational degree held by each employee, a | ||
statement of any certification under Subchapter B, Chapter 21, held | ||
by each employee, and any relevant experience of each employee; | ||
(10) [ |
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providing the program will adopt an annual budget; | ||
(11) [ |
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audit of the financial and programmatic operations of the program | ||
is to be conducted, including the manner in which the person | ||
providing the program will provide information necessary for the | ||
school district in which the program is located to participate, as | ||
required by this code or by State Board of Education rule, in the | ||
Public Education Information Management System (PEIMS); | ||
(12) [ |
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(13) [ |
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the program; and | ||
(14) [ |
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be used. | ||
(a-1) A license issued under this subchapter is not required | ||
to comply with Subsection (a)(2), (3), or (4). | ||
(b) A license holder or charter holder [ |
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school's license or charter, as applicable, a requirement that the | ||
school develop and administer personal graduation plans under | ||
Section 28.0212. | ||
(c) The enrollment of a student with a disability, including | ||
autism, is not considered for purposes of any maximum student | ||
enrollment described by the charter. | ||
SECTION 10. Section 12.115, Education Code, is amended to | ||
read as follows: | ||
Sec. 12.115. BASIS FOR MODIFICATION, PLACEMENT ON | ||
PROBATION, OR REVOCATION; ALTERNATIVES TO REVOCATION[ |
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probation, or revoke[ |
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open-enrollment charter school if the commissioner determines that | ||
the charter holder: | ||
(1) committed a material violation of the charter, | ||
including failure to satisfy accountability provisions prescribed | ||
by the charter; | ||
(2) failed to satisfy generally accepted accounting | ||
standards of fiscal management; | ||
(3) failed to protect the health, safety, or welfare | ||
of the students enrolled at the school; or | ||
(4) failed to comply with this subchapter or another | ||
applicable law or rule. | ||
(a-1) Based on a determination described by Subsection (a) | ||
concerning the charter holder, as an alternative to revoking the | ||
charter of an open-enrollment charter school, the commissioner may: | ||
(1) reconstitute the governing body of the charter | ||
holder; or | ||
(2) assign operations of a school campus to a | ||
different charter holder. | ||
(b) The action the commissioner takes under Subsection (a) | ||
or (a-1) shall be based on: | ||
(1) the best interest of the school's students; | ||
(2) [ |
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previous violation the school has committed; and | ||
(3) the accreditation status of the school under | ||
Subchapter C, Chapter 39. | ||
SECTION 11. Section 12.116, Education Code, is amended to | ||
read as follows: | ||
Sec. 12.116. PROCEDURE FOR MODIFICATION, PLACEMENT ON | ||
PROBATION, REVOCATION, ALTERNATIVE TO REVOCATION, OR DENIAL OF | ||
RENEWAL. (a) The commissioner shall adopt a procedure [ |
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for modifying, placing on probation, revoking, or denying renewal | ||
of the charter of an open-enrollment charter school or for using an | ||
alternative to revocation as described by Section 12.115(a-1). | ||
[ |
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except as provided by Subsection (b), provide an opportunity for a | ||
hearing to the charter holder and to parents and guardians of | ||
students enrolled in the school. A hearing under this subsection | ||
must be held in the county in which the school is located [ |
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(a-1) The commissioner shall revoke the charter of an | ||
open-enrollment charter school in accordance with the procedure | ||
adopted under Subsection (a) if, after all information required for | ||
determining a performance rating under Subchapter D, Chapter 39, | ||
has been considered, the commissioner determines that the school is | ||
insolvent. In determining whether the school is insolvent, the | ||
commissioner shall consider whether the insolvency is a result of | ||
recovery of overallocated state funds under Section 42.258(a). | ||
(b) The commissioner shall revoke the charter of an | ||
open-enrollment charter school without a hearing if each campus | ||
operated under the school's charter has been ordered closed under | ||
Section 39.107. | ||
(b-1) The procedure adopted under Subsection (a) for | ||
denying renewal of the charter of an open-enrollment charter school | ||
must provide that the charter automatically renews unless the | ||
school's charter is revoked under Subchapter E, Chapter 39, before | ||
the expiration of a charter term. In addition, the procedure must | ||
require the commissioner and the charter holder to act in a timely | ||
manner, according to the procedure, to initiate revocation or | ||
renewal of the charter, as applicable. The term for which a charter | ||
is renewed shall not be less than 10 years. | ||
(c) Chapter 2001, Government Code, does not apply to a | ||
hearing that is related to a modification, placement on probation, | ||
revocation, alternative to revocation, or denial of renewal under | ||
this subchapter. | ||
SECTION 12. Subsection (a), Section 12.1164, Education | ||
Code, is amended to read as follows: | ||
(a) The commissioner must notify the Teacher Retirement | ||
System of Texas in writing of the revocation[ |
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or surrender of a charter under this subchapter not later than the | ||
10th business day after the date of the event. | ||
SECTION 13. Section 12.117, Education Code, is amended by | ||
adding Subsections (c) and (d) to read as follows: | ||
(c) An open-enrollment charter school for which a license is | ||
issued on or after September 1, 2011, may not admit a student unless | ||
the student: | ||
(1) was enrolled in a public school in this state | ||
during the school year preceding the school year for which the | ||
student is seeking admission to the charter school; or | ||
(2) is seeking admission for the first grade or a lower | ||
grade level. | ||
(d) An open-enrollment charter school authorized by a | ||
license issued or charter granted under this subchapter to a | ||
municipality: | ||
(1) is considered a work-site open-enrollment charter | ||
school for purposes of federal regulations regarding admissions | ||
policies that apply to open-enrollment charter schools receiving | ||
federal funding; and | ||
(2) notwithstanding Subsection (a), may admit | ||
children of employees of the municipality to the school before | ||
conducting a lottery to fill remaining available positions, | ||
provided that the number of children admitted under this | ||
subdivision constitutes only a small percentage, as may be further | ||
specified by federal regulation, of the school's total enrollment. | ||
SECTION 14. Subsection (a), Section 12.118, Education Code, | ||
is amended to read as follows: | ||
(a) The commissioner shall designate an impartial | ||
organization with experience in evaluating school choice programs | ||
to conduct, under the supervision of the commissioner, an annual | ||
evaluation of open-enrollment charter schools. | ||
SECTION 15. Subsection (c), Section 12.119, Education Code, | ||
is amended to read as follows: | ||
(c) On request, the State Board of Education shall provide | ||
the information required by this section and Section 12.111(a)(7) | ||
[ |
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reasonable fee to cover the board's cost in providing the | ||
information. | ||
SECTION 16. Section 12.156, Education Code, is amended to | ||
read as follows: | ||
Sec. 12.156. APPLICABILITY OF CERTAIN PROVISIONS. (a) | ||
Except as otherwise provided by this subchapter, Subchapter D | ||
applies to a college or university charter school or junior college | ||
charter school as though the college or university charter school | ||
or junior college charter school, as applicable, were issued a | ||
license or granted a charter under that subchapter. | ||
(b) A license issued or charter granted under this | ||
subchapter is not considered for purposes of the limit on the number | ||
of open-enrollment charter schools imposed by Section 12.101(b). | ||
SECTION 17. Subsection (b), Section 12.113, Education Code, | ||
is repealed. | ||
SECTION 18. The amendment of Subchapter D, Chapter 12, | ||
Education Code, by this Act, does not affect the status of a charter | ||
granted under Subchapter D, Chapter 12, Education Code, before the | ||
effective date of this Act and the implementation of licensing | ||
under Subchapter D, Chapter 12, Education Code, in accordance with | ||
this Act. | ||
SECTION 19. Section 12.101, Education Code, as amended by | ||
this Act, and Sections 12.1011 and 12.10111, Education Code, as | ||
added by this Act, apply beginning with the 2012-2013 school year. | ||
SECTION 20. This Act takes effect immediately if it | ||
receives a vote of two-thirds of all the members elected to each | ||
house, as provided by Section 39, Article III, Texas Constitution. | ||
If this Act does not receive the vote necessary for immediate | ||
effect, this Act takes effect September 1, 2011. |