The Texas Education Agency (TEA) proposes amendments to §§97.1037, 97.1051, 97.1053, and 97.1055, concerning record review of certain decisions and accreditation statuses and standards. Section 97.1037 establishes procedures for creating an administrative record for review by the State Office of Administrative Hearings (SOAH). Sections 97.1051, 97.1053, and 97.1055 address accreditation statuses and standards, including definitions and purpose. The proposed amendments would add language to include charter schools in the accreditation process under Texas Education Code (TEC), Chapter 39.

During the 79th Texas Legislature, Third Called Session, 2006, House Bill (HB) 1 was passed, which amended the TEC, Chapter 39, Public School System Accountability. The HB 1 changes addressed, in part, the accreditation of school districts; sanctions and interventions for school districts, charter schools, and campuses; and the review by the SOAH of certain sanctions. As a result, the TEA was required to adopt rules to implement the changes addressed.

In January 2008, the TEA notified districts that 19 TAC Chapter 97, Planning and Accountability, Subchapter DD, Investigative Reports, Sanctions, and Record Reviews, had been amended and that 19 TAC Chapter 97, Planning and Accountability, Subchapter EE, Accreditation Status, Standards, and Sanctions, and 19 TAC Chapter 157, Hearings and Appeals, Subchapter EE, Review by State Office of Administrative Hearings: Certain Accreditation Sanctions, had been adopted to establish new and revised rules in compliance with HB 1. The rule actions clarified and codified current TEA practice, as well as the commissioner of education's intent, regarding accreditation issues.

New 19 TAC Chapter 97, Planning and Accountability, Subchapter EE, Accreditation Status, Standards, and Sanctions, adopted to be effective January 6, 2008, included new rules that define the accreditation statuses of Accredited, Accredited-Warned, Accredited-Probation, and Not Accredited-Revoked and state how accreditation statuses will be determined and assigned to school districts. The adoption also established accreditation standards and sanctions, including definitions, purpose, and oversight appointments.

Because they were not included in the School FIRST (Financial Integrity Rating System of Texas) financial accountability rating system, charter schools have not received an accreditation status under the TEC, Chapter 39. The proposed amendments would add language to include charter schools in the accreditation process. The proposed amendments to 19 TAC Chapter 97, Subchapters DD and EE, include the following.

In 19 TAC Chapter 97, Subchapter DD, Investigative Reports, Sanctions, and Record Reviews, §97.1037, Record Review of Certain Decisions, would be amended to add new subsection (a)(5) to apply the request for record review process to a charter school accreditation finding.

In 19 TAC Chapter 97, Subchapter EE, Accreditation Status, Standards, and Sanctions, the following amendments are proposed.

Section 97.1051, Definitions, would be amended to include a charter school campus to the definition of campus and add other definitions to clarify applicability to open-enrollment charter schools. Section 97.1053, Purpose, would be amended to add new subsection (c) to specify applicability to open-enrollment charter schools.

Section 97.1055, Accreditation Status, would be amended to address charter school accreditation by adding new subsection (g) that would establish substitute criteria when considering the financial performance of a charter operator in lieu of a financial accountability rating. The proposed new subsection (g) would also establish the process to be used concerning specific financial accountability findings. In addition, proposed new subsection (h) would be added to address third-party accreditation.

Adrain Johnson, associate commissioner for accreditation, has determined that for the first five-year period the amendments are in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the amendments.

Dr. Johnson has determined that for each year of the first five years the amendments are in effect the public benefit anticipated as a result of enforcing the amendments will be the inclusion of charter schools in the accreditation process under TEC, Chapter 39. Charter schools will be evaluated and given accreditation ratings, which will allow the public to make more informed decisions with regard to the education of children. There is no anticipated economic cost to persons who are required to comply with the proposed amendments.

There is no direct adverse economic impact for small businesses and microbusinesses; therefore, no regulatory flexibility analysis, specified in Texas Government Code, §2006.002, is required.

The public comment period on the proposal begins September 12, 2008, and ends October 13, 2008. Comments on the proposal may be submitted to Cristina De La Fuente-Valadez, Policy Coordination Division, Texas Education Agency, 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 request for a public hearing on the proposal submitted under the Administrative Procedure Act must be received by the commissioner of education not more than 15 calendar days after notice of the proposal has been published in the Texas Register on September 12, 2008.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.