The Texas Education Agency (TEA) proposes amendments to §§100.1011, 100.1021, 100.1025, 100.1027, 100.1031, 100.1033, 100.1035, 100.1041, 100.1043, 100.1051, 100.1101 - 100.1104, 100.1111, 100.1131, 100.1151, 100.1201, 100.1207, 100.1209, and 100.1211 and new §100.1022, concerning open-enrollment charter schools. The sections address general provisions as well as provisions relating to commissioner action and intervention, funding and financial operations, governance, and operations. The proposed amendments would update, revise, and clarify these provisions. Proposed new §100.1022 would establish standards and criteria for use in an administrative hearing on any adverse action taken by the commissioner against a charter holder.

House Bill 6, 77th Texas Legislature, 2001, directed the commissioner of education to adopt rules for a wide range of issues related to open-enrollment charter schools. Accordingly, rules in 19 TAC Chapter 100, Subchapter AA, were adopted to be effective in November 2001. Rules were also added and amended to be effective in April 2002 and June 2003. The rules in 19 TAC Chapter 100, Subchapter AA, are organized in divisions addressing related subject matter, as follows: Division 1. General Provisions; Division 2. Commissioner Action and Intervention; Division 3. Charter School Funding and Financial Operations; Division 4. Property of Open-Enrollment Charter Schools; Division 5. Charter School Governance; and Division 6. Charter School Operations. This proposal presents amendments to rules in Divisions 1, 2, 3, 5, and 6, in addition to a new rule in Division 2.

Division 1. General Provisions.

The proposed amendment to 19 TAC §100.1011, Definitions, would provide definitions for charter school "campus" and charter school "site." This amendment would also provide an additional exception to the definition of "management company." Technical edits to other definitions are also proposed.

Division 2. Commissioner Action and Intervention.

The proposed amendment to 19 TAC §100.1021, Adverse Action on an Open-Enrollment Charter, would emphasize that accountability ratings are grounds for adverse action against a charter holder. In addition, the amendment would establish that hearings on adverse action taken against a charter holder by the commissioner will be held by the State Office for Administrative Hearings. The amendment would also revise and clarify timelines for hearing requests, exceptions, and replies.

The proposed new 19 TAC §100.1022, Standards for Adverse Action on an Open-Enrollment Charter, would establish the standards and criteria for use in an administrative hearing on any adverse action taken by the commissioner against a charter holder. The proposed new rule includes provisions related to required minimum student, financial, compliance, health and safety, and charter performance, along with probation and modification provisions for mitigating and aggravating factors.

The proposed amendment to 19 TAC §100.1025, Intervention Based on Health, Safety, or Welfare of Students, would revise the hearing process for cases in which the commissioner intervenes in charter school operations to protect the health, safety, and welfare of students. The amendment would establish that such hearings may no longer be conducted under 19 TAC Chapter 157, Subchapter AA, General Provisions for Hearings Before the Commissioner of Education.

The proposed amendment to 19 TAC §100.1027, Accreditation Sanctions, would change the rule title to "Accountability Ratings and Sanctions" and emphasize that the commissioner may take any accountability action under Texas Education Code (TEC), Chapter 39, Subchapters B, C, D, or G, that may be taken against a school district or campus as authorized under those subchapters.

The proposed amendment to 19 TAC §100.1031, Charter Renewal, would establish that commissioner decisions to charter renewals would be governed by new 19 TAC §100.1022.

The proposed amendment to 19 TAC §100.1033, Charter Amendment, would revise the process for amending a charter. This amendment would establish specific types of amendments as "substantive" and would clarify the type of data considered as relevant information. In addition, the amendment would establish the submission date for expansion amendments, revise the length of time a charter school must have operated before expanding, and incorporate new requirements from TEC, §12.114, regarding amendment requests to increase maximum enrollment.

The proposed amendment to 19 TAC §100.1035, Compliance Records on Nepotism, Conflicts of Interest, and Restrictions on Serving, would revise the timeline for running criminal history checks on members of the governing bodies of the charter holder and the charter school, officers of the charter school, and employees of the charter school and require that the records be made available to the TEA upon request.

Division 3. Charter School Funding and Financial Operations.

The proposed amendment to 19 TAC §100.1041, State Funding, would incorporate new requirements from TEC, §12.1061, regarding the recovery of over-allocated funds by the TEA for student attendance in a program affected by an expansion that was not approved by the commissioner.

The proposed amendment to 19 TAC §100.1043, Status and Use of State Funds; Depository Contract, would revise the procedure for submitting bank depository contracts.

The proposed amendment to 19 TAC §100.1051, Audit by Commissioner; Records in the Possession of a Management Company, would incorporate new requirements from TEC, §12.1163, limiting on-site audits of a charter school, charter holder, or management company by the TEA to one per year unless the commissioner has specific cause.

Division 5. Charter School Governance.

The proposed amendment to 19 TAC §100.1101, Delegation of Powers and Duties, would require prior notice to the TEA of any bankruptcy proceeding initiated by a charter holder.

The proposed amendment to 19 TAC §100.1102, Training for Members of Governing Bodies of Charter Holder and School, would revise the language that deals with the 60-minute board training module related to assessments, reporting requirements, and accountability ratings and sanctions. The amendment would also modify the time requirement for the module related to the use of public funds, provide further specification related to the required 12-hour instruction, and modify provisions related to continuing training for members of organizations based on accountability ratings.

The proposed amendment to 19 TAC §100.1103, Training for Chief Executive and Central Administrative Officers, would provide further specification related to the required 30-hour instruction; modify the time requirements for modules related to school finance and public records; revise the language that deals with the 240-minute module related to assessments, reporting requirements, and accountability ratings and sanctions; and also modify provisions related to continuing training for officers of organizations based on accountability ratings. The amendment would also revise the requirements for chief executive and central administrative officer training to exempt those who have the lifetime equivalent of a Standard Superintendent Certificate issued by the State Board for Educator Certification (SBEC).

The proposed amendment to 19 TAC §100.1104, Training for Campus Administrative Officers, would provide further specification related to the required 10-hour instruction; modify the time requirements for modules related to school law, school finance, health and safety issues, use of public funds, accountability to the public, open meetings requirements, and public records; and modify provisions related to continuing training for officers of organizations based on accountability ratings. The amendment would also revise the requirements for campus administrative officer training to exempt those who have the lifetime equivalent of a Standard Principal Certificate issued by SBEC.

The proposed amendment to 19 TAC §100.1111, Applicability of Nepotism Provisions; Exception for Acceptable Performance, would revise definitions to conform to new 19 TAC §100.1022.

The proposed amendment to 19 TAC §100.1131, Conflicts of Interest and Board Member Compensation; Exception, would revise the exceptions to the conflict of interest provisions based on accountability ratings.

The proposed amendment to 19 TAC §100.1151, Criminal History; Restrictions on Serving, would revise the timeline for running criminal history checks on members of the governing bodies of the charter holder and the charter school, officers of the charter school, and employees of the charter school.

Division 6. Charter School Operations.

The proposed amendment to 19 TAC §100.1201, Voluntary Participation in State Programs, would correct a statutory reference.

The proposed amendment to 19 TAC §100.1207, Student Admission, would establish exceptions to the admissions lottery, specify elements of the required non-discrimination policy for admissions, and define allowable policies regarding transfer students and geographic boundaries.

The proposed amendment to 19 TAC §100.1209, Municipal Ordinances, would revise language to conform to a new definition proposed in 19 TAC §100.1011.

The proposed amendment to 19 TAC §100.1211, Students, would establish that minimum teacher qualifications must comply with federal regulations. The amendment would also clarify the data reporting requirement.

The proposed rule actions would have the following procedural and reporting implications.

The proposed amendments to 19 TAC §§100.1033, 100.1102, 100.1103, 100.1104, and 100.1211 would replace specific reference to the Public Education Information Management System (PEIMS) with a more appropriate and general reference to all TEA data reporting requirements.

The proposed amendment to 19 TAC §100.1033 would require that expansion amendments be received by the TEA by the first day of February preceeding the school year in which the expansion is to be effective. There is currently no requirement that such requests be filed with the TEA by a specific date.

The proposed amendments to 19 TAC §100.1035 and 19 TAC §100.1151 would require that every three years a charter holder run criminal history checks on members of the governing bodies of the charter holder and the charter school, officers of the charter school, and employees of the charter school. The current rule requires that such checks be run annually.

The proposed amendment to 19 TAC §100.1043 would require that a charter holder submit a bank depository contract to the TEA only if there has been a change since the last filing, although the charter holder must file a statement to this effect in lieu of a copy of the depository contract. Currently, depository contracts must be filed annually.

The proposed amendment to 19 TAC §100.1101 would require that a charter holder notify the TEA of any bankruptcy proceeding initiated by a charter holder.

Ernest Zamora, associate commissioner for support services and school finance, has determined that for the first five-year period the amendments and new rule are in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the amendments or new rule.

Dr. Zamora has determined that for each year of the first five years the amendments and new rule are in effect the public benefit anticipated as a result of enforcing the amendments and new rule would be changes to promote efficient and effective operation of Texas open-enrollment charter schools. Open-enrollment charter schools provide the public with choices among public schools and innovation in education programs throughout the state. There will not be an effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the amendments and new rule as proposed.

Comments on the proposed rules may be submitted to Cristina De La Fuente-Valadez, Policy Coordination, 1701 North Congress Avenue, Austin, Texas 78701, (512) 475-1497. Comments may also be submitted electronically to rules@tea.state.tx.us or faxed to (512) 463-0028.

A public hearing will be held to receive public comments on the proposed rules. The hearing has been scheduled for Monday, January 10, 2005, at 1:00 p.m. in room 1-104 of the William B. Travis Building, 1701 North Congress Avenue, Austin. Questions about the scheduled public hearing should be directed to the TEA Division of Charter Schools at (512) 463-9575.

The amendments are proposed under the Texas Education Code, Chapter 12, Subchapter D, which authorizes the commissioner of education to adopt rules and procedures related to the implementation of open-enrollment charter schools.

The amendments implement the Texas Education Code, §§12.103, 12.104, 12.111, 12.117, and 12.129.