(a) Applicability. This section applies only to an
independent school district that intends to contract to partner to
operate a campus and receive benefits under Texas Education Code (TEC), §11.174
and §48.252.
(b) Definitions. For purposes of this division, the
following words and terms shall have the following meaning, unless
the context clearly indicates otherwise.
(1) Operating partner--Either a state-authorized open-enrollment
charter school or an eligible entity as defined by TEC, §12.101(a).
(2) Open-enrollment charter holder--This term has the
meaning assigned in TEC, §12.1012(1).
(3) Governing body of a charter holder--This term has
the meaning assigned in TEC, §12.1012(2).
(4) Governing body of a charter school--This term has
the meaning assigned in TEC, §12.1012(3).
(5) Contract to partner to operate a campus--This term
means the partner must operate the campus in accordance with subsection
(c) of this section under a performance contract as outlined in subsection
(d) of this section.
(6) Campus--This term has the meaning assigned in §97.1051(3)
of this title (relating to Definitions).
(c) Conferred authority. In order to qualify as operating
a district campus under TEC, §11.174, the district must confer,
at a minimum, the following enhanced authorities to the operating
partner.
(1) Staffing authorities.
(A) The operating partner must have authority to employ
and manage the campus chief operating officer, including initial and
final non-delegable authority to hire, supervise, manage, assign,
evaluate, develop, advance, compensate, continue employment, and establish
any other terms of employment.
(B) The operating partner must have authority over
the employees of the operating partner, including initial and final
non-delegable authority for the operating partner to employ and/or
manage all of the operating partner's own administrators, educators,
contractors, or other staff. Such authority includes the authority
to hire, supervise, manage, assign, evaluate, develop, advance, compensate,
continue employment, and establish any other terms of employment.
(C) The operating partner must have sole authority
over the assignment of all district employees to the campus, including
initial and final authority to approve the assignment of all district
employees or contractors to the campus.
(D) The operating partner must have initial, final,
and sole authority to supervise, manage, evaluate, and rescind the
assignment of any district employee or district contractor from the
campus. If the operating partner rescinds the assignment of any district
employee or district contractor, the district must grant the request
within 20 working days.
(E) The operating partner must directly manage the
campus principal or chief operating officer, including having the
sole responsibility for evaluating the performance of the campus principal
or chief operating officer.
(2) Other authorities. The operating partner must have:
(A) initial, final, and sole authority to approve all
curriculum decisions beyond the minimum requirements outlined in §74.2
of this title (relating to Description of a Required Elementary Curriculum)
or §74.3 of this title (relating to Description of a Required
Secondary Curriculum), lesson plans, instructional strategies, and
instructional materials, as defined in TEC, §31.002(1), to be
used at that campus;
(B) initial, final, and sole authority over educational
programs for specific, identified student groups, such as gifted and
talented students, students of limited English proficiency, students
at risk of dropping out of school, special education students, and
other statutorily defined populations;
(C) initial, final, and sole authority to set the school
calendar and the daily schedule, which may differ from those in other
district campuses;
(D) initial, final, and sole authority to select and
determine the use of any and all assessments to be used on the campus
that are not required by the state of Texas;
(E) initial, final, and sole authority to determine
how the entire campus budget, including any and all federal and state
grant funds due the campus, is allocated. The governing body of the
operating partner shall approve the campus budget in a meeting held
under the Texas Open Meetings Act, Texas Government Code, Chapter
551. Notwithstanding such budget authority, the operating partner's
expenditures must comply with applicable restrictions on the use of
state and federal funds; and
(F) initial, final, and sole authority to implement
and adjust the campus budget.
(d) Performance contract. To contract to partner to
operate under TEC, §11.174, the independent school district's
board of trustees must grant the operating partner a campus charter
under TEC, Chapter 12, Subchapter C. The charter must include performance
expectations memorialized in a performance contract, as required by
TEC, §12.0531. This performance contract must include, at a minimum,
the following provisions:
(1) a clear and unambiguous description of enhanced
authorities as outlined in subsection (c) of this section;
(2) academic performance expectations and goals, which
shall include, but are not limited to:
(A) for campuses that are paired for accountability
purposes, specific annual targets for improved student academic performance;
(B) for campuses issued an accountability rating under
TEC, §39.054, a specific annual target for the overall campus
academic rating; and
(C) specific consequences in the event that the operating
party does not meet the academic performance expectations and goals
described in the performance contract;
(3) annual financial performance expectations and goals,
which shall include, but are not limited to:
(A) the completion of an annual independent financial
report, including an audit, of the operating partner organization,
limited to matters directly related to the management or operation
of the campus or campuses;
(B) receipt of an unqualified audit opinion, in connection
with the annual financial report required in subparagraph (A) of this
paragraph; and
(C) specific consequences in the event that the operating
partner does not meet the annual financial performance expectations
and goals described in the performance contract;
(4) a description of the campus enrollment and expulsion
policies that must comply with TEC, §11.174(i);
(5) a contract term of up to 10 years as required by
TEC, §12.0531, with a provision(s) specifying:
(A) a requirement for a public hearing at least 30
days prior to any district action to terminate the contract for an
operating partner that successfully met the performance expectations
and goals described in the performance contract; and
(B) a requirement for a public hearing at least 30
days prior to any district action to extend the contract for an operating
partner that failed to meet the performance expectations and goals
described in the performance contract;
(6) a contract term stating that the campus is exempt
from laws and rules to the fullest extent allowed by TEC, Chapter
12, Subchapter C, and is exempt from all district policies except
for laws, rules, and policies that are specifically identified as
applicable to the campus in the performance contract;
(7) a section that describes the funding structure
of the partnership. This section must specify:
(A) a reasonable per pupil amount or percentage of
the revenue generated by attendance at the campus from the district
to the operating partner of all federal, state, and local funds due
the campus, to be paid to the operating partner for managing the campus
or campuses each year;
(B) the total budget for the first year of operation;
and
(C) the authority of the partner over the entire campus
budget, which includes all federal, state, and local funds due the
campus as described in subparagraph (A) of this paragraph;
(8) service-level agreements that list the resources
and services the operating partner intends to purchase from the district
and the specific costs of such services by pupil, square foot, campus,
or the percentage of the total district budget for the specific resource
or service. The resources and services may include:
(A) facility use and related matters;
(B) transportation;
(C) specific education program services, such as providing
special education services; and
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