(a) Process governing conflicts of interest. A member
of the governing body of a charter holder, a member of the governing
body of a charter school, and an officer of a charter school shall
comply with Local Government Code, Chapter 171, in the manner provided
by the conflict of interest provisions described in §§100.1131-100.1135
of this division.
(b) Compensated board members generally prohibited.
Except as provided by this section, a person who receives compensation
or remuneration from a nonprofit corporation holding an open-enrollment
charter may not serve on the governing body of the charter holder.
As used in this subsection, compensation or remuneration includes,
without limitation:
(1) salary, bonuses, benefits, or other compensation
received by the local public official pursuant to an employment relationship;
(2) payment of or reimbursement for personal expenses
of the local public official, excluding reimbursement for allowable
travel expenses;
(3) credit extended to the local public official by
the charter holder or charter school;
(4) the local public official's personal use of property
paid for by the charter holder or charter school;
(5) in-kind transfers of property to the local public
official; and
(6) all other forms of compensation or remuneration
to the local public official.
(c) Satisfactory student performance. If each charter
school operated by a charter holder has received a satisfactory rating,
as defined by §100.1022(b)(2)(B) of this title (relating to Standards
to Revoke and Modify the Governance of an Open-Enrollment Charter),
for at least two of the preceding three school years, then charter
school employees may serve on the governing body of the charter holder
in accordance with subsection (f) of this section.
(d) Existing charter holders partly grandfathered.
If a charter holder has operated at least one charter school which
reported attendance that occurred prior to September 2, 2001, but
no charter school operated by the charter holder has received a sufficient
number of academic or financial ratings to determine whether it has
received a satisfactory rating for at least two of the preceding three
school years, then charter school employees may serve on the governing
body of the charter holder in accordance with subsection (f) of this
section.
(1) For purposes of this subsection, a charter school
has a sufficient number of substantive ratings to determine whether
it has received a satisfactory rating for at least two of the preceding
three school years if:
(A) the charter school has received two consecutive
academic ratings, and neither rating meets the criteria set forth
in subsection (c) of this section; or
(B) the charter school has received three academic
ratings.
(2) If a charter holder operates charter schools that
have received a sufficient number of academic ratings to determine
whether it has received a satisfactory rating for at least two of
the preceding three school years, but also operates charter schools
that have not received a sufficient number of academic ratings, then
its eligibility to comply with subsection (f) of this section is determined
by applying the criteria in subsection (c) of this section only to
those schools with a sufficient number of substantive ratings.
(e) No annual ratings assigned. For purposes of this
section, two academic accountability ratings are "consecutive" as
determined by §100.1022(b)(2)(C) of this title.
(f) Exception to prohibition on compensated board members.
Notwithstanding subsection (b) of this section, an employee of a charter
school subject to this subsection may serve as a member of the governing
body of the charter holder if:
(1) only employees of the charter school, and not employees
of the charter holder, serve on the governing body of the charter
holder;
(2) the only compensation or remuneration received
by the board member is salary, bonuses, benefits, or other compensation
received pursuant to the employment relationship with the charter
school;
(3) charter school employees do not constitute a quorum
of the governing body or any committee of the governing body; and
(4) all charter school employees serving on the governing
body comply with all conflict of interest provisions referenced in
subsection (a) of this section.
(g) Accounting for interested transactions. Notwithstanding
compliance with this section, a charter holder shall comply fully
with the requirements of §100.1047(f) of this title (relating
to Accounting for State and Federal Funds).
(h) Compliance following ratings change. Notwithstanding
this section, a charter holder must comply with the prohibition on
compensated board members described in subsection (b) of this section
within 30 days after it is assigned a rating that causes it to become
ineligible for the exception provided by subsection (f) of this section.
(1) Subject to paragraph (2) of this subsection, if
a ratings appeal is provided in the applicable accountability manual,
and if a timely and sufficient appeal is filed by the charter holder,
then the time for compliance provided by this subsection is extended
until 30 days after the date on which the appeal is finally determined.
(2) Notwithstanding any other deadline, an appeal is
"timely" for purposes of the extension of time provided in paragraph
(1) of this subsection if it is received by the appeals deadline specified
in the relevant Accountability Manual, or under the alternative education
accountability ratings procedures, if applicable.
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Source Note: The provisions of this §100.1131 adopted to be effective April 18, 2002, 27 TexReg 3110; amended to be effective April 6, 2005, 30 TexReg 1911; amended to be effective September 12, 2012, 37 TexReg 7097; amended to be effective September 18, 2014, 39 TexReg 7295 |