The Texas Education Agency (TEA) proposes the repeal of §§100.1001 - 100.1007, 100.1010, 100.1013, 100.1015, 100.1017, 100.1019, 100.1021 - 100.1023, 100.1025 - 100.1027, 100.1029, 100.1031 - 100.1033, 100.1035, 100.1041, 100.1043, 100.1045, 100.1047, 100.1049 - 100.1052, 100.1063, 100.1065, 100.1067, 100.1069, 100.1071, 100.1073, 100.1101 - 100.1108, 100.1111 - 100.1116, 100.1131 - 100.1135, 100.1151, 100.1153, 100.1155, 100.1157, 100.1159, and 100.1217; new §§100.1001, 100.1003, 100.1011, 100.1013, 100.1015, 100.1017, 100.1021, 100.1023, 100.1025, 100.1031, 100.1035, 100.1037, 100.1039, 100.1041, 100.1043, 100.1045, 100.1047, 100.1049, 100.1051, 100.1053, 100.1055, 100.1061, 100.1063, 100.1065, 100.1067, 100.1069, 100.1071, 100.1073, 100.1075, 100.1077, 100.1079, 100.1091, 100.1093, 100.1095, 100.1097, 100.1099, 100.1101, 100.1111, 100.1113, 100.1115, 100.1117, 100.1119, 100.1121, 100.1123, 100.1125, 100.1127, 100.1131, 100.1133, 100.1135, 100.1137, 100.1139, 100.1141, 100.1143, 100.1145, 100.1147, 100.1149, 100.1151, 100.1153, 100.1155, 100.1157, 100.1159, 100.1161, and 100.1163; and amendments to §§100.1203, 100.1205, 100.1207, 100.1209, and 100.1211 - 100.1213, concerning open-enrollment charter schools. The proposed revisions would reorganize the subchapter as well as reflect changes to the Texas Education Code (TEC) resulting from House Bill (HB) 1707, 88th Texas Legislature, Regular Session, 2023; Senate Bill (SB) 2032, 88th Texas Legislature, Regular Session, 2023; SB 879 , 87th Texas Legislature, Regular Session, 2021; HB 189, 87th Texas Legislature, Regular Session, 2021; SB 1615, 87th Texas Legislature, Regular Session, 2021; and SB 2293, 86th Texas Legislature, 2019.

BACKGROUND INFORMATION AND JUSTIFICATION: Chapter 100, Subchapter AA, outlines the commissioner's rules concerning open-enrollment charter schools. The proposed revisions would allow for an overall reorganization of the chapter, amend existing rules, and add new rules. Following is a summary of the significant changes proposed to Chapter 100, Subchapter AA.

Section 100.1001, Definitions, would include new definitions for various types of charter schools referenced throughout Chapter 100, as defined in TEC, Chapter 12. This would provide clarity throughout Chapter 100 as to which types of charter schools are being addressed in each section. The section would also include a definition for "related party transactions" as required by TEC, §12.1166. The definition of "former charter holder" would be updated to include provisions for high quality operators. A provision for allowing scaled scores to be used for discretionary decision making in lieu of academic accountability ratings when such ratings are not issued for any reason would also be included.

Section 100.1002, Application and Selection Procedures and Criteria, would be proposed as new §100.1011, Application Requirements and Selection Process, and would contain changes including grammatical edits, organization of information into smaller paragraphs and subparagraphs, and a reformatted reference structure that assumes all paragraphs and subparagraphs are applicable to all charter applications unless expressly provided elsewhere. The reformatted reference structure would provide a clearer applicability of rule to each of TEA's authorization pathways.

Section 100.1003, Application to Dropout Recovery Charters, would be proposed as new §100.1015 and would modify eligibility criteria to align with updated statute.

Section 100.1004, Application to Public Senior College or University Charters and Public Junior College Charters, and §100.1015, Applicants for an Open-Enrollment Charter, Public Senior College or University Charter, or Public Junior College Charter, would be combined and proposed as new §100.1017, Applicant Eligibility and Form Contents. The new section would contain the following changes: a new section title to more accurately reflect the section's contents, grammatical edits, organization of information into smaller paragraphs and subparagraphs, and a reformatted reference structure that assumes all paragraphs and subparagraphs are applicable to all charter applications unless expressly provided elsewhere. The reformatted reference structure would provide a clearer applicability of rule to each of TEA's authorization pathways. Additionally, new applicability of the TEC, Subchapter G application pathway and educational, financial, governance, and operational standards by which applicants are assessed would be updated to better align with statute and current organizational priorities. The new section would also include a change to reflect TEC, §12.265(c), regarding the enrollment cap for adult high school charter programs.

Section 100.1005, Notification of Charter Application, would be proposed as new §100.1013 and contain the following changes: updates to who is responsible for notification of charter and a clarification of who is required to be notified. These changes would be made to decrease the administrative burden on applicants and provide a streamlined method of communication with potentially impacted stakeholders.

Section 100.1006, Optional Open-Enrollment Charter Provisions for Contracting and Purchasing, would be proposed as new §100.1079 and include non-substantive technical edits; no content changes would be made.

Section 100.1007, Annual Report on Open-Enrollment Charter Governance, would be proposed as new §100.1111 and contain the following proposed changes: modifications to the filing of governance information on an annual basis from no later than December 1 to a timeline approved by the commissioner; removal of the requirement for the charter holder to file amendments, articles of incorporation, and bylaws because TEA already possesses these documents; and removal of the requirement for a screenshot of the names of governing body members and a screenshot of the superintendent's salary, since the posting of this information is already required in statute. This new section would also remove outdated language.

Section 100.1010, Performance Frameworks, would be proposed as new §100.1031, Performance Frameworks for Subchapters D and E Charter Schools, and would contain the following proposed changes: clarification that Subchapter D and E charters will be evaluated against criteria set forth in the Charter School Performance Frameworks (CSPF) Manual and clarification that the manual will be updated annually to reflect the requirements and data sources for each indicator. Additional proposed changes would include clarification that tier ratings will be assigned based on academic, financial, operational, and governance criteria set forth in the CSPF Manual to allow further delineation as to the indicators that measure operational standards and those that measure governance standards. These changes are proposed based on feedback from stakeholders to make the CSPF a more useful instrument that communicates charter performance in a clear and concise manner.

Section 100.1013, Filing of Documents, would be proposed as new §100.1003 and include a change to define and outline the requirements for electronic transmission of documents.

Section 100.1017, Application of Law and Rules to Public Senior College or University Charters and Public Junior College Charters, would be proposed as new §100.1021, Applicability of Law and Rules to Public Senior College or University Charters and Public Junior College Charters, to more accurately reflect statutory language.

Section 100.1019, Application to Adult High School Charters, would be proposed as new §100.1023, Applicability of Law and Rules to Adult High School Charters, to more accurately reflect statutory language. This new section would include new provisions to govern applicability of TEC, Chapter 12, Subchapter D, to adult high school charter schools. These changes would be made to account for programmatic requirements that were not otherwise explicitly addressed in existing law. The requirements would be aligned to other provisions that govern charters and public schools as appropriate.

Section 100.1021, Revocation and Modification of Governance of an Open-Enrollment Charter, would be proposed as new §100.1049 and include a change to remove outdated references to academic performance ratings and financial accountability performance ratings for specific years.

Section 100.1022, Standards to Revoke and Modify the Governance of an Open-Enrollment Charter, would be proposed as new §100.1051 and include the removal of language defining "imminently insolvent" as this is included in another rule.

Section 100.1023, Intervention Based on Charter Violations, would be proposed as new §100.1045 with no substantive changes to rule text.

Section 100.1025, Intervention Based on Health, Safety, or Welfare of Students, would be proposed as new §100.1047 with no changes in rule text.

Proposed new §100.1025, Authorization for High-Performing Entities, would be added to implement TEC, §12.1011, which requires the commissioner to adopt rules regarding charter authorization for high-performing entities.

Section 100.1026, Management of Charter Campus(es) Following Revocation, Surrender, or Expiration, would be proposed as new §100.1053 with no substantive changes in rule text.

Section 100.1027, Accountability Ratings and Sanctions, would be proposed as new §100.1041 and include clarification that the commissioner may take any action relating to the charter holder or its campus as authorized by TEC, Chapter 39A. This change would remove outdated language.

Section 100.1029, Agency Audits, Monitoring, and Investigations, would be proposed as new §100.1043 and include non-substantive technical edits; no content changes would be made.

Section 100.1031, Renewal of an Open-Enrollment Charter, would be proposed as new §100.1037, including a clarification that written notice from the commissioner regarding renewal decisions will be provided electronically and removing references to academic performance ratings and financial accountability performance ratings for specific school years. These changes remove outdated language.

Section 100.1032, Standards for Discretionary Renewal, would be proposed as new §100.1039 and include a change to remove failure to operate a campus with at least 50% of students in tested grades as a standard for non-renewal of a charter. This change reflects the current practice of some campuses serving only early childhood grades that are not considered tested grades.

Section 100.1033, Charter Amendment, would be proposed as new §100.1035 and include reorganization of the text to eliminate duplicative and contradictory language. The following changes would also be made. The timeline for amendment submission would be updated from 18 to 36 months to reflect changes to statutory language. Language would clarify that expansion requests can be expedited expansion requests if charters meet the requirements in TEC, §12.101(b-4), or discretionary expansion requests if charters do not meet the expedited requirements. Geographic boundary would be eliminated as a type of expansion amendment request. Language would classify types of non-expansion requests as material non-expansion amendments with the charter holder receiving a commissioner decision with 60 calendar days of a completed amendment request or non-material non-expansion requests that allow the charter to proceed with the request 30 calendar days after the submission of a completed amendment request unless otherwise notified by the commissioner. These changes would be made to reflect current best practices for authorizing as well as feedback from stakeholders to improve the overall process for amending a charter.

Section 100.1035, Compliance Records on Nepotism, Conflicts of Interest, and Restrictions on Serving, would be proposed as new §100.1163 and include non-substantive technical edits; no content changes would be made.

Section 100.1041, State Funding, would be proposed as new §100.1061 and include clarification on statutory references on allowable and unallowable fees.

Section 100.1043, Status and Use of State Funds; Depository Contract, would be proposed as new §100.1063 with no changes to rule text.

Section 100.1045, Investment of State Funds, would be proposed as new §100.1065 and include non-substantive technical edits; no content changes would be made.

Section 100.1047, Accounting for State and Federal Funds, would be proposed as new §100.1067 and include non-substantive technical edits; no content changes would be made.

Section 100.1049, Disclosure of Campaign Contributions, would be proposed as new §100.1071 and include non-substantive technical edits; no content changes would be made.

Section 100.1050, Disclosure of Financial Information, would be proposed as new §100.1073 with no changes to rule text.

Section 100.1051, Audit by Commissioner; Records in the Possession of a Management Company, would be proposed as new §100.1075 with no changes to rule text.

Section 100.1052, Final Audit Upon Revocation, Surrender, or Closure of an Open-Enrollment Charter, would be proposed as new §100.1077 with no changes to rule text.

Section 100.1063, Use of Public Property by a Charter Holder, would be proposed as new §100.1091 with no changes to rule text.

Section 100.1065, Property Acquired with State Funds Received Before September 1, 2001--Special Rules, would be proposed as new §100.1093 and include non-substantive technical edits; no content changes would be made.

Section 100.1067, Possession and Control of the Public Property of a Former Charter Holder, would be proposed as new §100.1095 with no changes to rule text.

Section 100.1069, Rights and Duties Not Affected, would be proposed as new §100.1097 and include non-substantive technical edits; no content changes would be made.

Proposed new §100.1069, Disclosure of Related Party Transactions, would include requirements from TEC, §12.1166, which requires the commissioner to adopt a rule defining "related party."

Section 100.1071, Real Property Held in Trust, would be proposed as new §100.1099 and include non-substantive technical edits; no content changes would be made.

Section 100.1073, Improvements to Real Property, would be proposed as new §100.1101 and include non-substantive technical edits; no content changes would be made.

Section 100.1101, Delegation of Powers and Duties, would be proposed as new §100.1113 and move the non-delegable duties of board members and superintendents from another rule. This change would align the provisions with other information on governance powers and duties.

Section 100.1102, Training for Members of Governing Bodies of Charter Holder and School, would be proposed as new §100.1115, Training Requirements for Governing Board Members and Officers, and would add the opportunity for training to be provided online. This change would remove outdated language.

Section 100.1103, Training for Chief Executive and Central Administrative Officers, would be proposed as new §100.1117, Core Training for New Governing Board Members and Officers, and would clarify core training content for governance board members and officers under each training topic. This change would update curriculum training requirements to reflect current statute, rule, and best practice.

Section 100.1104, Training for Campus Administrative Officers, would be proposed as new §100.1119, Additional Training for New Governing Board Members and Officers, and would clarify additional training content for campus administrative officers under each training topic. This change would update curriculum training requirements to reflect current statute, rule, and best practice.

Section 100.1105, Training for Business Managers, would be proposed as new §100.1121, Continuing Training for Governing Board Members and Officers, and would outline continuing training content for governance board members and officers under each training topic. This change would update curriculum training requirements to reflect current statute, rule, and best practice.

Section 100.1106, Exemption for Participation in a Shared Services Cooperative, would be proposed as new §100.1123 with no changes to rule text.

Section 100.1107, Course Providers, would be proposed as new §100.1125, Training Providers, and would clarify that training for governance board members and officers must be provided by an authorized training provider; specify that training providers may be required to complete a charter training program prior to initial authorization as a trainer; and make initial authorization as a training provider effective for 24 months with re-registration available for a period of up to three years. These changes would help ensure that the individuals who train charter governing boards and charter officers have a deep understanding of the statutes, rules, and best practices associated with Texas charter schools.

Section 100.1108, Record of Compliance and Disclosure of Non-compliance, would be proposed as new §100.1127 and include non-substantive technical edits; no content changes would be made.

Section 100.1111, Applicability of Nepotism Provisions; Exception for Acceptable Performance, would be proposed as new §100.1131 and include non-substantive technical edits; no content changes would be made.

Section 100.1112, General Nepotism Provisions, would be proposed as new §100.1133 and include non-substantive technical edits; no content changes would be made.

Section 100.1113, Relationships By Consanguinity or By Affinity, would be proposed as new §100.1135 with no changes to rule text.

Section 100.1114, Nepotism Prohibitions, would be proposed as new §100.1137 and include non-substantive technical edits; no content changes would be made.

Section 100.1115, Nepotism Exceptions, would be proposed as new §100.1139 and include non-substantive technical edits; no content changes would be made.

Section 100.1116, Enforcement of Nepotism Prohibitions, would be proposed as new §100.1141 and include non-substantive technical edits; no content changes would be made.

Section 100.1131, Conflicts of Interest and Board Member Compensation; Exception, would be proposed as new §100.1143 and include non-substantive technical edits; no content changes would be made.

Section 100.1132, General Conflict of Interest Provisions, would be proposed as new §100.1145 and include non-substantive technical edits; no content changes would be made.

Section 100.1133, Conflicts Requiring Affidavit and Abstention From Voting, would be proposed as new §100.1147 with no changes to rule text.

Section 100.1134, Conflicts Requiring Separate Vote on Budget, would be proposed as new §100.1149 with no changes to rule text.