HBA-MPM H.B. 3644 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 3644
By: Krusee
Public Education
4/21/1999
Introduced



BACKGROUND AND PURPOSE 

As of September 1998, 56 schools were currently open and operating in
Texas. Recent approval of additional charters will bring that number to 146
within the next year. 

Three different types of charter schools are found in Texas: the Open
Enrollment charter, the Home Rule School District charter, and the Campus
charter. Currently, the majority of Texas charter schools are
open-enrollment which are operated by an institute of higher education, a
non-profit organization or governmental entity within all state and federal
laws applicable to public schools. 

The three types of charter schools in Texas all have slightly different
legislation. Open Enrollment charters are granted by the state, while
Campus and Home Rule District charters are granted by the districts. For
each type of charter, the district or school uses a student performance
assessment instrument as outlined in the charter or by standards under
state law.  

H.B. 3644 provides for the creation of "university charter schools."  This
bill authorizes the board of regents of the University of Texas System
(system) to grant a charter on the application of an eligible entity to
operate in a facility of a commercial or nonprofit entity or school
district. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 12, Education Code, by adding Subchapter E, as
follows: 

SUBCHAPTER E.  UNIVERSITY CHARTER SCHOOLS

Sec. 12.151.  DEFINITION.  Defines "university system" as the University of
Texas System (system) for purposes of this subchapter. 

Sec. 12.152.  AUTHORIZATION.  Authorizes the board of regents (board) of
the system, in accordance with this chapter, to grant a charter on the
application of an eligible entity for a university charter school (charter
school) to operate in a facility of a commercial or nonprofit entity or
school district, including a home-rule school district.  Assigns "eligible
entity" the meaning given it in Section 12.101(a) (Authorization),
Education Code. 

Sec. 12.153.  APPLICABILITY OF CERTAIN PROVISIONS.  Make the following
sections applicable to a charter school as though the charter school were
an open-enrollment charter school:  Sections 12.101(c) and (d), Sections
12.102-12.109 (Authority Under Charter, Applicability of Laws and Rules to
Open-Enrollment Charter School, Applicability of Title, Status, State
Funding, Local Funding, Tuition Restricted, and Transportation,
respectively), and Section 12.117 (Application for Admission), Education
Code. 

Sec. 12.154.  APPLICATION.  (a) Requires the board to adopt an application
form and procedure that must be used to apply for a charter for a charter
school and criteria to use in  selecting a program for which to grant a
charter. 

(b)  Provides that the application form must provide for including the
information required under Section 12.111 (Content), Education Code, to be
contained in a charter. 

(c) Authorizes the board to require a petition supporting a charter for a
school signed by a specific number of parents and guardians of school-age
children residing in the area in which a school is proposed or to hold a
public hearing to determine parental support for the school as part of the
application procedure. 

(d)  Authorizes the board to approve or deny an application based on
criteria it adopts. Provides that the criteria adopted by the board must
include criteria relating to improving student performance and encouraging
innovation programs and a statement from any school district whose
enrollment is likely to be affected by the charter school, including
information relating to financial difficulty that a loss in enrollment may
have on the district. 

Sec. 12.155.  FORM.  Provides that a charter for a charter school must be
in the form of a written contract signed by the chair of the board and the
chief operating officer of the school. 

Sec. 12.156. CHARTER GRANTED.  Provides that each charter the board grants
for a charter school must satisfy this subchapter and include the
information required under Section 12.111, Education Code, consistent with
the information provided in the application and any modification the board
requires. 

Sec. 12.157.  REVISION.  Authorizes a revision of a charter of a charter
school to be made only with the board's approval. 

Sec. 12.158.  BASIS FOR MODIFICATION, PLACEMENT ON PROBATION, REVOCATION,
OR DENIAL OF RENEWAL.  (a)  Authorizes the board to modify, place on
probation, revoke, or deny renewal of the charter of a charter school if it
determines that the person operating the school committed certain
violations or failed to satisfy certain accounting standards, fiscal
management standards, or failed to comply with this subchapter or another
applicable by law or rule. 

(b)  Requires the action taken by the board under Subsection (a) to be
based on the best interest of the school's students, the severity of the
violation, and any previous violation the school has committed. 

Sec. 12.159.  PROCEDURE FOR MODIFICATION, PLACEMENT ON PROBATION,
REVOCATION, OR DENIAL OR RENEWAL.  (a)  Requires the board to adopt a
procedure to modify, place on probation, revoke, or deny renewal of the
charter of a charter school. 

(b)  Provides that the procedure adopted under Subsection (a) must provide
an opportunity for a hearing to the person operating the charter school and
to parents and guardians of the school's students.  Provides that a hearing
under this section must be held at the facility at which the program is
operated. 

Sec. 12.160.  EVALUATION OF UNIVERSITY CHARTER SCHOOLS.  (a)  Requires the
board to designate an impartial organization with experience in evaluating
school choice programs to conduct an annual evaluation of the charter
schools. 

(b) Provides that an evaluation under this section must include
consideration of the following before and after implementation of the
charter:  students' assessment instrument scores, student attendance,
students' grades, incidents involving student discipline, socioeconomic
data on students' families, and parents' and students' satisfaction with
the charter schools. 

(c)  Provides that the evaluation of the charter schools must also include
an evaluation of  certain costs incurred by the schools and the effect of
the schools on school districts, teachers, students, and parents in those
districts. 

SECTION 2.Emergency clause.
  Effective date: upon passage.