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  S.B. No. 2
 
 
 
 
AN ACT
  relating to certain charter schools.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter D, Chapter 11, Education Code, is
  amended by adding Sections 11.1542 and 11.1543 to read as follows:
         Sec. 11.1542.  OPEN-ENROLLMENT CHARTER SCHOOL OFFER FOR
  DISTRICT FACILITY. (a)  The board of trustees of an independent
  school district that intends to sell, lease, or allow use for a
  purpose other than a district purpose of an unused or underused
  district facility must give each open-enrollment charter school
  located wholly or partly within the boundaries of the district the
  opportunity to make an offer to purchase, lease, or use the
  facility, as applicable, in response to any terms established by
  the board of trustees, before offering the facility for sale or
  lease or to any other specific entity.
         (b)  This section does not require the board of trustees of a
  school district to accept an offer made by an open-enrollment
  charter school.
         Sec. 11.1543.  CHARTER SCHOOL PAYMENT FOR FACILITIES USE OR
  FOR SERVICES. (a)  An independent school district may not require
  a campus or campus program that has been granted a charter under
  Subchapter C, Chapter 12, and that is the result of the conversion
  of the status of an existing school district campus to pay rent for
  or to purchase a facility in order to use the facility.
         (b)  An independent school district may not require a campus
  or campus program described by Subsection (a) or an open-enrollment
  charter school to pay for any service provided by the district under
  a contract between the district and the campus, campus program, or
  open-enrollment charter school an amount that is greater than the
  amount of the actual costs to the district of providing the service.
         SECTION 2.  Subsection (a), Section 12.052, Education Code,
  is amended to read as follows:
         (a)  In accordance with this subchapter, the board of
  trustees of a school district or the governing body of a home-rule
  school district shall [may] grant or deny, through a public vote of
  the board of trustees or governing body, a charter to parents and
  teachers for a campus or a program on a campus if the board is
  presented with a petition signed by:
               (1)  the parents of a majority of the students at that
  school campus; and
               (2)  a majority of the classroom teachers at that
  school campus.
         SECTION 3.  Subchapter C, Chapter 12, Education Code, is
  amended by adding Section 12.0522 to read as follows:
         Sec. 12.0522.  DISTRICT CHARTER AUTHORIZATION.  
  (a)  Notwithstanding Section 12.052, in the manner provided by this
  section, the board of trustees of a school district or the governing
  body of a home-rule school district may grant a district charter to
  a campus to the extent authorized under this section.
         (b)  Except as otherwise provided by this subsection or
  Subsection (c), a district charter may be granted under this
  section only to one or more campuses serving in total a percentage
  of the district's student enrollment equal to not more than 15
  percent of the district's student enrollment for the preceding
  school year.  The percentage limit may not prevent a district from
  granting a district charter to at least one feeder pattern of
  schools, including an elementary, middle or junior high, and high
  school.
         (c)  A district charter may be granted to any campus that has
  received the lowest performance rating under Subchapter C, Chapter
  39.
         (d)  Subchapter D applies to a campus granted a district
  charter under this section as though the campus were granted a
  charter under Subchapter D, and the campus is considered an
  open-enrollment charter school.
         (e)  A charter granted under this section is not considered
  for purposes of the limit on the number of charters for
  open-enrollment charter schools imposed by Section 12.101.
         (f)  The commissioner may adopt rules as necessary for the
  administration of this section.
         SECTION 4.  Subchapter C, Chapter 12, Education Code, is
  amended by adding Sections 12.0531 and 12.0532 to read as follows:
         Sec. 12.0531.  PERFORMANCE CONTRACT; DURATION OF CHARTER.
  If a charter is granted under this subchapter, the board of trustees
  of the school district that granted the charter shall enter into a
  performance contract with the principal or equivalent chief
  operating officer of the campus or program. The performance
  contract must specify enhanced authority granted to the principal
  or equivalent officer in order to achieve the academic goals that
  must be met by campus or program students. A charter granted under
  this subchapter expires 10 years from the date the charter is
  granted unless the specified goals are substantially met, as
  determined by the board of trustees of the school district that
  granted the charter.
         Sec. 12.0532.  NEIGHBORHOOD SCHOOL. (a)  A charter granted
  under this subchapter for a campus may, as determined by the board
  of trustees of the school district granting the charter, provide
  for the campus to be a neighborhood school.
         (b)  Except as otherwise provided by this subsection, the
  principal or equivalent chief operating officer of a neighborhood
  school shall manage the funding provided for the school under this
  code and any other funding provided for the school in the manner the
  principal or other officer determines best meets the needs of the
  school's students. The district in which the school is located may
  retain that portion of funding that the district generally
  withholds from a campus for costs associated with the salary of the
  district superintendent or other district governance.
         (c)  The principal or equivalent chief operating officer of a
  neighborhood school may use school funding to purchase from the
  school district in which the school is located services for the
  school, including bus service, facilities maintenance services,
  and other services generally provided by a school district to
  district campuses. The school shall pay for each service an amount
  that reflects the actual cost to the district of providing the
  service for the number of the school's students for which the
  service is provided.
         SECTION 5.  Section 12.055, Education Code, is amended to
  read as follows:
         Sec. 12.055.  APPLICABILITY OF LAWS AND RULES TO CAMPUS OR
  PROGRAM GRANTED CHARTER.  (a)  A campus or program for which a
  charter is granted under this subchapter is subject to federal and
  state laws and rules governing public schools, except that the
  campus or program is subject to this code and rules adopted under
  this code only to the extent the applicability to a campus or
  program for which a charter is granted under this subchapter of a
  provision of this code or a rule adopted under this code is
  specifically provided.
         (b)  A school district may contract with another district or
  an open-enrollment charter school for services at a campus charter.  
  An employee of the district or open-enrollment charter school
  providing contracted services to a campus charter is eligible for
  membership in and benefits from the Teacher Retirement System of
  Texas if the employee would be eligible for membership and benefits
  if holding the same position at the employing district or
  open-enrollment charter school.
         SECTION 6.  Subsection (b), Section 12.056, Education Code,
  is amended to read as follows:
         (b)  A campus or program for which a charter is granted under
  this subchapter is subject to:
               (1)  a provision of this title establishing a criminal
  offense; and
               (2)  a prohibition, restriction, or requirement, as
  applicable, imposed by this title or a rule adopted under this
  title, relating to:
                     (A)  the Public Education Information Management
  System (PEIMS) to the extent necessary to monitor compliance with
  this subchapter as determined by the commissioner;
                     (B)  criminal history records under Subchapter C,
  Chapter 22;
                     (C)  high school graduation under Section 28.025;
                     (D)  special education programs under Subchapter
  A, Chapter 29;
                     (E)  bilingual education under Subchapter B,
  Chapter 29;
                     (F)  prekindergarten programs under Subchapter E,
  Chapter 29;
                     (G)  extracurricular activities under Section
  33.081;
                     (H)  health and safety under Chapter 38; and
                     (I)  public school accountability under
  Subchapters B, C, D, E, F, and J, Chapter 39.
         SECTION 7.  Section 12.057, Education Code, is amended by
  adding Subsection (b-1) to read as follows:
         (b-1)  An employee of a charter holder, as defined by Section
  12.1012, who is employed on a campus or in a program granted a
  charter under this subchapter and who qualifies for membership in
  the Teacher Retirement System of Texas shall be covered under the
  system in the same manner and to the same extent as a qualified
  employee of an independent school district who is employed on a
  regularly operating campus or in a regularly operating program.
         SECTION 8.  Section 12.059, Education Code, is amended to
  read as follows:
         Sec. 12.059.  CONTENT. Each charter granted under this
  subchapter must:
               (1)  describe the educational program to be offered,
  which may be a general or specialized program;
               (2)  provide that continuation of the charter is
  contingent on satisfactory student performance under Subchapter B,
  Chapter 39, satisfactory financial performance under Subchapter D,
  Chapter 39, and [on] compliance with other applicable
  accountability provisions under Chapter 39;
               (3)  specify any basis, in addition to a basis
  specified by this subchapter, on which the charter may be [placed on
  probation or] revoked;
               (4)  prohibit discrimination in admission on the basis
  of national origin, ethnicity, race, religion, or disability;
               (5)  describe the governing structure of the campus or
  program;
               (6)  specify any procedure or requirement, in addition
  to those under Chapter 38, that the campus or program will follow to
  ensure the health and safety of students and employees; and
               (7)  describe the manner in which an annual audit of
  financial and programmatic operations of the campus or program is
  to be conducted, including the manner in which the campus or program
  will provide information necessary for the school district in which
  it is located to participate, as required by this code or by
  commissioner [State Board of Education] rule, in the Public
  Education Information Management System (PEIMS).
         SECTION 9.  Section 12.101, Education Code, is amended by
  amending Subsections (a) and (b) and adding Subsections (b-0),
  (b-1), (b-2), (b-3), (b-4), (b-5), (b-6), (b-7), and (b-8) to read
  as follows:
         (a)  In accordance with this subchapter, the commissioner
  [State Board of Education] may grant a charter on the application of
  an eligible entity for an open-enrollment charter school to operate
  in a facility of a commercial or nonprofit entity, an eligible
  entity, or a school district, including a home-rule school
  district. In this subsection, "eligible entity" means:
               (1)  an institution of higher education as defined
  under Section 61.003;
               (2)  a private or independent institution of higher
  education as defined under Section 61.003;
               (3)  an organization that is exempt from taxation under
  Section 501(c)(3), Internal Revenue Code of 1986 (26 U.S.C. Section
  501(c)(3)); or
               (4)  a governmental entity.
         (b)  After thoroughly investigating and evaluating an
  applicant, the commissioner, in coordination with a member of the
  [The] State Board of Education designated for the purpose by the
  chair of the board, may grant a charter for an open-enrollment
  charter school only to an applicant that meets any financial,
  governing, educational, and operational standards adopted by the
  commissioner under this subchapter, that the commissioner
  determines is capable of carrying out the responsibilities provided
  by the charter and likely to operate a school of high quality, and
  that:
               (1)  has not within the preceding 10 years had a charter
  under this chapter or a similar charter issued under the laws of
  another state surrendered under a settlement agreement, revoked,
  denied renewal, or returned; or
               (2)  is not, under rules adopted by the commissioner,
  considered to be a corporate affiliate of or substantially related
  to an entity that has within the preceding 10 years had a charter
  under this chapter or a similar charter issued under the laws of
  another state surrendered under a settlement agreement, revoked,
  denied renewal, or returned.
         (b-0)  The commissioner shall notify the State Board of
  Education of each charter the commissioner proposes to grant under
  this subchapter. Unless, before the 90th day after the date on
  which the board receives the notice from the commissioner, a
  majority of the members of the board present and voting vote against
  the grant of that charter, the commissioner's proposal to grant the
  charter takes effect. The board may not deliberate or vote on any
  grant of a charter that is not proposed by the commissioner.
         (b-1)  In granting charters for open-enrollment charter
  schools, the commissioner [The State Board of Education] may not
  grant a total of more than:
               (1)  215 charters through the fiscal year ending August
  31, 2014;
               (2)  225 charters beginning September 1, 2014;
               (3)  240 charters beginning September 1, 2015;
               (4)  255 charters beginning September 1, 2016;
               (5)  270 charters beginning September 1, 2017; and
               (6)  285 charters beginning September 1, 2018 [for an
  open-enrollment charter school].
         (b-2)  Beginning September 1, 2019, the total number of
  charters for open-enrollment charter schools that may be granted is
  305 charters.
         (b-3)  The commissioner may not grant more than one charter
  for an open-enrollment charter school to any charter holder.  The
  commissioner may consolidate charters for an open-enrollment
  charter school held by multiple charter holders into a single
  charter held by a single charter holder with the written consent to
  the terms of consolidation by or at the request of each charter
  holder affected by the consolidation.
         (b-4)  Notwithstanding Section 12.114, approval of the
  commissioner under that section is not required for establishment
  of a new open-enrollment charter school campus if the requirements
  of this subsection, including the absence of commissioner
  disapproval under Subdivision (3), are satisfied.  A charter holder
  having an accreditation status of accredited and at least 50
  percent of its student population in grades assessed under
  Subchapter B, Chapter 39, or at least 50 percent of the students in
  the grades assessed having been enrolled in the school for at least
  three school years may establish one or more new campuses under an
  existing charter held by the charter holder if:
               (1)  the charter holder is currently evaluated under
  the standard accountability procedures for evaluation under
  Chapter 39 and received a district rating in the highest or second
  highest performance rating category under Subchapter C, Chapter 39,
  for three of the last five years with at least 75 percent of the
  campuses rated under the charter also receiving a rating in the
  highest or second highest performance rating category and with no
  campus with a rating in the lowest performance rating category in
  the most recent ratings;
               (2)  the charter holder provides written notice to the
  commissioner of the establishment of any campus under this
  subsection in the time, manner, and form provided by rule of the
  commissioner; and
               (3)  not later than the 60th day after the date the
  charter holder provides written notice under Subdivision (2), the
  commissioner does not provide written notice to the charter holder
  of disapproval of a new campus under this section.
         (b-5)  The initial term of a charter granted under this
  section is five years.
         (b-6)  The commissioner shall adopt rules to modify criteria
  for granting a charter for an open-enrollment charter school under
  this section to the extent necessary to address changes in
  performance rating categories or in the financial accountability
  system under Chapter 39.
         (b-7)  A charter granted under this section for a dropout
  recovery school is not considered for purposes of the limit on the
  number of charters for open-enrollment charter schools imposed by
  this section.  For purposes of this subsection, an open-enrollment
  charter school is considered to be a dropout recovery school if the
  school meets the criteria for designation as a dropout recovery
  school under Section 12.1141(c).
         (b-8)  In adopting any financial standards under this
  subchapter that an applicant for a charter for an open-enrollment
  charter school must meet, the commissioner shall not:
               (1)  exclude any loan or line of credit in determining
  an applicant's available funding; or
               (2)  exclude an applicant from the grant of a charter
  solely because the applicant fails to demonstrate having a certain
  amount of current assets in cash.
         SECTION 10.  Subchapter D, Chapter 12, Education Code, is
  amended by adding Section 12.1011 to read as follows:
         Sec. 12.1011.  CHARTER AUTHORIZATION FOR HIGH-PERFORMING
  ENTITIES.  (a)  Notwithstanding Section 12.101(b), the
  commissioner may grant a charter for an open-enrollment charter
  school to an applicant that is:
               (1)  an eligible entity under Section 12.101(a)(3) that
  proposes to operate the charter school program of a charter
  operator that operates one or more charter schools in another state
  and with which the eligible entity is affiliated and, as determined
  by the commissioner in accordance with commissioner rule, has
  performed at a level of performance comparable to performance under
  the highest or second highest performance rating category under
  Subchapter C, Chapter 39; or
               (2)  an entity that has operated one or more charter
  schools established under this subchapter or Subchapter C or E and,
  as determined by the commissioner in accordance with commissioner
  rule, has performed in the highest or second highest performance
  rating category under Subchapter C, Chapter 39.
         (b)  A charter holder granted a charter for an
  open-enrollment charter school under Subsection (a) may vest
  management of corporate affairs in a member entity provided that
  the member entity may change the members of the governing body of
  the charter holder before the expiration of a member's term only
  with the express written approval of the commissioner.
         (c)  The initial term of a charter granted under this section
  is five years.
         (d)  The commissioner shall adopt rules to modify criteria
  for granting a charter for an open-enrollment charter school under
  this section to the extent necessary to address changes in
  performance rating categories under Subchapter C, Chapter 39.
         SECTION 11.  Subchapter D, Chapter 12, Education Code, is
  amended by adding Section 12.1013 to read as follows:
         Sec. 12.1013.  CHARTER AUTHORIZER ACCOUNTABILITY.  (a)  The
  commissioner shall select a center for education research
  authorized by Section 1.005 to prepare an annual report concerning
  the performance of open-enrollment charter schools by authorizer
  compared to campus charters and matched traditional campuses, which
  shall be provided annually under Subchapters J and K, Chapter 39.
         (b)  The format of the report must enable the public to
  distinguish and compare the performance of each type of public
  school by classifying the schools as follows:
               (1)  open-enrollment charters granted by the State
  Board of Education;
               (2)  open-enrollment charters granted by the
  commissioner;
               (3)  charters granted by school districts; and
               (4)  matched traditional campuses.
         (c)  The report must include the performance of each public
  school in each class described by Subsection (b) as measured by the
  student achievement indicators adopted under Section 39.053 and
  student attrition rates.
         (d)  The report must also:
               (1)  aggregate and compare the performance of
  open-enrollment charter schools granted charters by the State Board
  of Education, open-enrollment charter schools granted charters by
  the commissioner, campuses and programs granted charters by school
  districts, and matched traditional campuses; and
               (2)  rate the aggregate performance of elementary,
  middle or junior high, and high schools within each class described
  by Subsection (b) as indicated by the composite rating that would be
  assigned to the class of elementary, middle or junior high, and high
  schools if the students attending all schools in that class were
  cumulatively enrolled in one elementary, middle or junior high, or
  high school.
         (e)  The report must also include an analysis of whether the
  performance of matched traditional campuses would likely improve if
  there were consolidation of school districts within the county in
  which the campuses are located. This subsection applies only to a
  county that includes at least seven school districts and at least
  10 open-enrollment charter schools.
         SECTION 12.  Subchapter D, Chapter 12, Education Code, is
  amended by adding Section 12.1014 to read as follows:
         Sec. 12.1014.  AUTHORIZATION FOR GRANT OF CHARTERS FOR
  SCHOOLS PRIMARILY SERVING STUDENTS WITH DISABILITIES. (a)  The
  commissioner may grant under Section 12.101 a charter on the
  application of an eligible entity for an open-enrollment charter
  school intended primarily to serve students eligible to receive
  services under Subchapter A, Chapter 29.
         (b)  The limit on the number of charters for open-enrollment
  charter schools imposed by Section 12.101 does not apply to a
  charter granted under this section to a school at which at least 50
  percent of the students are eligible to receive services under
  Subchapter A, Chapter 29.  Not more than five charters may be
  granted for schools described by this subsection.
         (c)  For purposes of the applicability of state and federal
  law, including a law prescribing requirements concerning students
  with disabilities, an open-enrollment charter school described by
  Subsection (a) is considered the same as any other school for which
  a charter is granted under Section 12.101.
         (d)  To the fullest extent permitted under federal law, a
  parent of a student with a disability may choose to enroll the
  parent's child in an open-enrollment charter school described by
  Subsection (a) regardless of whether a disproportionate number of
  the school's students are students with disabilities.
         (e)  This section does not authorize an open-enrollment
  charter school to discriminate in admissions or in the services
  provided based on the presence, absence, or nature of an
  applicant's or student's disability.
         (f)  The commissioner and the State Board for Educator
  Certification shall adopt rules as necessary to administer this
  section.
         SECTION 13.  Section 12.102, Education Code, is amended to
  read as follows:
         Sec. 12.102.  AUTHORITY UNDER CHARTER. An open-enrollment
  charter school:
               (1)  shall provide instruction to students at one or
  more elementary or secondary grade levels as provided by the
  charter;
               (2)  is governed under the governing structure
  described by the charter;
               (3)  retains authority to operate under the charter to
  the extent authorized under Sections 12.1141 and 12.115 and
  Subchapter E, Chapter 39 [contingent on satisfactory student
  performance as provided by the charter in accordance with Section
  12.111]; and
               (4)  does not have authority to impose taxes.
         SECTION 14.  Section 12.104, Education Code, is amended by
  amending Subsection (b) and adding Subsection (b-1) to read as
  follows:
         (b)  An open-enrollment charter school is subject to:
               (1)  a provision of this title establishing a criminal
  offense; and
               (2)  a prohibition, restriction, or requirement, as
  applicable, imposed by this title or a rule adopted under this
  title, relating to:
                     (A)  the Public Education Information Management
  System (PEIMS) to the extent necessary to monitor compliance with
  this subchapter as determined by the commissioner;
                     (B)  criminal history records under Subchapter C,
  Chapter 22;
                     (C)  reading instruments and accelerated reading
  instruction programs under Section 28.006;
                     (D)  accelerated instruction under Section
  28.0211;
                     (E)  high school graduation requirements under
  Section 28.025;
                     (F)  special education programs under Subchapter
  A, Chapter 29;
                     (G)  bilingual education under Subchapter B,
  Chapter 29;
                     (H)  prekindergarten programs under Subchapter E,
  Chapter 29;
                     (I)  extracurricular activities under Section
  33.081;
                     (J)  discipline management practices or behavior
  management techniques under Section 37.0021;
                     (K)  health and safety under Chapter 38;
                     (L)  public school accountability under
  Subchapters B, C, D, E, F, G, and J, Chapter 39;
                     (M)  the requirement under Section 21.006 to
  report an educator's misconduct; and
                     (N)  intensive programs of instruction under
  Section 28.0213.
         (b-1)  During the first three years an open-enrollment
  charter school is in operation, the agency shall assist the school
  as necessary in complying with requirements under Subsection
  (b)(2)(A).
         SECTION 15.  Subsection (a), Section 12.1053, Education
  Code, is amended to read as follows:
         (a)  This section applies to an open-enrollment charter
  school unless the school's charter otherwise describes procedures
  for purchasing and contracting and the procedures are approved by
  the commissioner [State Board of Education].
         SECTION 16.  Section 12.1055, Education Code, is amended by
  adding Subsections (c) and (d) to read as follows:
         (c)  Section 11.1513(f) applies to an open-enrollment
  charter school as though the governing body of the school were the
  board of trustees of a school district and to the superintendent or,
  as applicable, the administrator serving as educational leader and
  chief executive officer of the school as though that person were the
  superintendent of a school district.
         (d)  Notwithstanding any other provision of this section, a
  person who was not restricted or prohibited under this section as
  this section existed before September 1, 2013, from being employed
  by an open-enrollment charter school and who was employed by an
  open-enrollment charter school before September 1, 2013, is
  considered to have been in continuous employment as provided by
  Section 573.062(a), Government Code, and is not prohibited from
  continuing employment with the school.
         SECTION 17.  Subsection (a), Section 12.1057, Education
  Code, is amended to read as follows:
         (a)  An employee of an open-enrollment charter school
  [operating under a charter granted by the State Board of Education]
  who qualifies for membership in the Teacher Retirement System of
  Texas shall be covered under the system to the same extent a
  qualified employee of a school district is covered.
         SECTION 18.  Section 12.110, Education Code, is amended by
  amending Subsections (a), (c), and (d), and adding Subsection (e)
  to read as follows:
         (a)  The commissioner [State Board of Education] shall
  adopt:
               (1)  an application form and a procedure that must be
  used to apply for a charter for an open-enrollment charter school;
  and
               (2)  criteria to use in selecting a program for which to
  grant a charter.
         (c)  As part of the application procedure, the commissioner
  [board] may require a petition supporting a charter for a school
  signed by a specified number of parents or guardians of school-age
  children residing in the area in which a school is proposed or may
  hold a public hearing to determine parental support for the school.
         (d)  The commissioner shall [board may] approve or deny an
  application based on:
               (1)  documented evidence collected through the
  application review process;
               (2)  merit; and
               (3)  other criteria as adopted by the commissioner,
  which [it adopts. The criteria the board adopts] must include:
                     (A)  criteria relating to the capability of the
  applicant to carry out the responsibilities provided by the charter
  and the likelihood that the applicant will operate a school of high
  quality;
                     (B) [(1)]  criteria relating to improving student
  performance and encouraging innovative programs; and
                     (C) [(2)]  a statement from any school district
  whose enrollment is likely to be affected by the open-enrollment
  charter school, including information relating to any financial
  difficulty that a loss in enrollment may have on the district.
         (e)  The commissioner shall give priority to applications
  that propose an open-enrollment charter school campus to be located
  in the attendance zone of a school district campus assigned an
  unacceptable performance rating under Section 39.054 for the two
  preceding school years.
         SECTION 19.  Section 12.1101, Education Code, is amended to
  read as follows:
         Sec. 12.1101.  NOTIFICATION OF CHARTER APPLICATION OR
  ESTABLISHMENT OF CAMPUS. The commissioner by rule shall adopt a
  procedure for providing notice to the following persons on receipt
  by the commissioner [State Board of Education] of an application
  for a charter for an open-enrollment charter school under Section
  12.110 or of notice of the establishment of a campus as authorized
  under Section 12.101(b-4):
               (1)  the board of trustees of each school district from
  which the proposed open-enrollment charter school or campus is
  likely to draw students, as determined by the commissioner; and
               (2)  each member of the legislature that represents the
  geographic area to be served by the proposed school or campus, as
  determined by the commissioner.
         SECTION 20.  Subsection (a), Section 12.111, Education Code,
  is amended to read as follows:
         (a)  Each charter granted under this subchapter must:
               (1)  describe the educational program to be offered,
  which must include the required curriculum as provided by Section
  28.002;
               (2)  [specify the period for which the charter or any
  charter renewal is valid;
               [(3)]  provide that continuation [or renewal] of the
  charter is contingent on the status of the charter as determined
  under Section 12.1141 or 12.115 or under Subchapter E, Chapter 39 
  [acceptable student performance on assessment instruments adopted
  under Subchapter B, Chapter 39, and on compliance with any
  accountability provision specified by the charter, by a deadline or
  at intervals specified by the charter];
               (3)  specify the academic, operational, and financial
  performance expectations by which a school operating under the
  charter will be evaluated, which must include applicable elements
  of the performance frameworks adopted under Section 12.1181 
  [(4)   establish the level of student performance that is considered
  acceptable for purposes of Subdivision (3)];
               (4) [(5)]  specify:
                     (A)  any basis, in addition to a basis specified
  by this subchapter or Subchapter E, Chapter 39, on which the charter
  may be [placed on probation or] revoked, [or on which] renewal of
  the charter may be denied, or the charter may be allowed to expire;
  and
                     (B)  the standards for evaluation of a school
  operating under the charter for purposes of charter renewal, denial
  of renewal, expiration, revocation, or other intervention in
  accordance with Section 12.1141 or 12.115 or Subchapter E, Chapter
  39, as applicable;
               (5) [(6)]  prohibit discrimination in admission policy
  on the basis of sex, national origin, ethnicity, religion,
  disability, academic, artistic, or athletic ability, or the
  district the child would otherwise attend in accordance with this
  code, although the charter may:
                     (A)  provide for the exclusion of a student who
  has a documented history of a criminal offense, a juvenile court
  adjudication, or discipline problems under Subchapter A, Chapter
  37; and
                     (B)  provide for an admission policy that requires
  a student to demonstrate artistic ability if the school specializes
  in performing arts;
               (6) [(7)]  specify the grade levels to be offered;
               (7) [(8)]  describe the governing structure of the
  program, including:
                     (A)  the officer positions designated;
                     (B)  the manner in which officers are selected and
  removed from office;
                     (C)  the manner in which members of the governing
  body of the school are selected and removed from office;
                     (D)  the manner in which vacancies on that
  governing body are filled;
                     (E)  the term for which members of that governing
  body serve; and
                     (F)  whether the terms are to be staggered;
               (8) [(9)]  specify the powers or duties of the
  governing body of the school that the governing body may delegate to
  an officer;
               (9) [(10)]  specify the manner in which the school will
  distribute to parents information related to the qualifications of
  each professional employee of the program, including any
  professional or educational degree held by each employee, a
  statement of any certification under Subchapter B, Chapter 21, held
  by each employee, and any relevant experience of each employee;
               (10) [(11)]  describe the process by which the person
  providing the program will adopt an annual budget;
               (11) [(12)]  describe the manner in which an annual
  audit of the financial and programmatic operations of the program
  is to be conducted, including the manner in which the person
  providing the program will provide information necessary for the
  school district in which the program is located to participate, as
  required by this code or by commissioner [State Board of Education]
  rule, in the Public Education Information Management System
  (PEIMS);
               (12) [(13)]  describe the facilities to be used;
               (13) [(14)]  describe the geographical area served by
  the program;
               (14)  [and
               [(15)]  specify any type of enrollment criteria to be
  used;
               (15)  provide information, as determined by the
  commissioner, relating to any management company that will provide
  management services to a school operating under the charter; and
               (16)  specify that the governing body of an
  open-enrollment charter school accepts and may not delegate
  ultimate responsibility for the school, including the school's
  academic performance and financial and operational viability, and
  is responsible for overseeing any management company providing
  management services for the school and for holding the management
  company accountable for the school's performance.
         SECTION 21.  Section 12.112, Education Code, is amended to
  read as follows:
         Sec. 12.112.  FORM. A charter for an open-enrollment
  charter school shall be in the form of a written contract signed by
  the commissioner [chair of the State Board of Education] and the
  chief operating officer of the school.
         SECTION 22.  Subsection (a), Section 12.113, Education Code,
  is amended to read as follows:
         (a)  Each charter the commissioner [State Board of
  Education] grants for an open-enrollment charter school must:
               (1)  satisfy this subchapter; and
               (2)  include the information that is required under
  Section 12.111 consistent with the information provided in the
  application and any modification the commissioner [board]
  requires.
         SECTION 23.  Section 12.114, Education Code, is amended by
  adding Subsection (c) to read as follows:
         (c)  Not later than the 60th day after the date that a charter
  holder submits to the commissioner a completed request for approval
  for an expansion amendment, as defined by commissioner rule,
  including a new school amendment, the commissioner shall provide to
  the charter holder written notice of approval or disapproval of the
  amendment.
         SECTION 24.  Subchapter D, Chapter 12, Education Code, is
  amended by adding Section 12.1141 to read as follows:
         Sec. 12.1141.  RENEWAL OF CHARTER; DENIAL OF RENEWAL;
  EXPIRATION.  (a)  The commissioner shall develop and by rule adopt
  a procedure for renewal, denial of renewal, or expiration of a
  charter for an open-enrollment charter school at the end of the term
  of the charter.  The procedure must include consideration of the
  performance under Chapter 39 of the charter holder and each campus
  operating under the charter and must include three distinct
  processes, which must be expedited renewal, discretionary
  consideration of renewal or denial of renewal, and expiration.  To
  renew a charter at the end of the term, the charter holder must
  submit a petition for renewal to the commissioner in the time and
  manner established by commissioner rule.
         (b)  At the end of the term of a charter for an
  open-enrollment charter school, if a charter holder submits to the
  commissioner a petition for expedited renewal of the charter, the
  charter automatically renews unless, not later than the 30th day
  after the date the charter holder submits the petition, the
  commissioner provides written notice to the charter holder that
  expedited renewal of the charter is denied.  The commissioner may
  not deny expedited renewal of a charter if:
               (1)  the charter holder has been assigned the highest
  or second highest performance rating under Subchapter C, Chapter
  39, for the three preceding school years;
               (2)  the charter holder has been assigned a financial
  performance accountability rating under Subchapter D, Chapter 39,
  indicating financial performance that is satisfactory or better for
  the three preceding school years; and
               (3)  no campus operating under the charter has been
  assigned the lowest performance rating under Subchapter C, Chapter
  39, for the three preceding school years or such a campus has been
  closed.
         (c)  At the end of the term of a charter for an
  open-enrollment charter school, if a charter holder submits to the
  commissioner a petition for renewal of the charter and the charter
  does not meet the criteria for expedited renewal under Subsection
  (b) or for expiration under Subsection (d), the commissioner shall
  use the discretionary consideration process.  The commissioner's
  decision under the discretionary consideration process must take
  into consideration the results of annual evaluations under the
  performance frameworks established under Section 12.1181.  The
  renewal of the charter of an open-enrollment charter school that is
  registered under the agency's alternative education accountability
  procedures for evaluation under Chapter 39 shall be considered
  under the discretionary consideration process regardless of the
  performance ratings under Subchapter C, Chapter 39, of the
  open-enrollment charter school or of any campus operating under the
  charter, except that if the charter holder has been assigned a
  financial accountability performance rating under Subchapter D,
  Chapter 39, indicating financial performance that is lower than
  satisfactory for any three of the five preceding school years, the
  commissioner shall allow the charter to expire under Subsection
  (d).  In considering the renewal of the charter of an
  open-enrollment charter school that is registered under the
  agency's alternative education accountability procedures for
  evaluation under Chapter 39, such as a dropout recovery school or a
  school providing education within a residential treatment
  facility, the commissioner shall use academic criteria established
  by commissioner rule that are appropriate to measure the specific
  goals of the school.  The criteria established by the commissioner
  shall recognize growth in student achievement as well as
  educational attainment.  For purposes of this subsection, the
  commissioner shall designate as a dropout recovery school an
  open-enrollment charter school or a campus of an open-enrollment
  charter school:
               (1)  that serves students in grades 9 through 12 and has
  an enrollment of which at least 50 percent of the students are 17
  years of age or older as of September 1 of the school year as
  reported for the fall semester Public Education Information
  Management System (PEIMS) submission; and
               (2)  that meets the eligibility requirements for and is
  registered under alternative education accountability procedures
  adopted by the commissioner.
         (d)  At the end of the term of a charter for an
  open-enrollment charter school, if a charter holder submits to the
  commissioner a petition for renewal of the charter, the
  commissioner may not renew the charter and shall allow the charter
  to expire if:
               (1)  the charter holder has been assigned the lowest
  performance rating under Subchapter C, Chapter 39, for any three of
  the five preceding school years;
               (2)  the charter holder has been assigned a financial
  accountability performance rating under Subchapter D, Chapter 39,
  indicating financial performance that is lower than satisfactory
  for any three of the five preceding school years;
               (3)  the charter holder has been assigned any
  combination of the ratings described by Subdivision (1) or (2) for
  any three of the five preceding school years; or
               (4)  any campus operating under the charter has been
  assigned the lowest performance rating under Subchapter C, Chapter
  39, for the three preceding school years and such a campus has not
  been closed.
         (e)  Notwithstanding any other law, a determination by the
  commissioner under Subsection (d) is final and may not be appealed.
         (f)  Not later than the 90th day after the date on which a
  charter holder submits a petition for renewal of a charter for an
  open-enrollment charter school at the end of the term of the
  charter, the commissioner shall provide written notice to the
  charter holder, in accordance with commissioner rule, of the basis
  on which the charter qualified for expedited renewal, discretionary
  consideration, or expiration, and of the commissioner's decision
  regarding whether to renew the charter, deny renewal of the
  charter, or allow the charter to expire.
         (g)  Except as provided by Subsection (e), a decision by the
  commissioner to deny renewal of a charter for an open-enrollment
  charter school is subject to review by the State Office of
  Administrative Hearings.  Notwithstanding Chapter 2001, Government
  Code:
               (1)  the administrative law judge shall uphold a
  decision by the commissioner to deny renewal of a charter for an
  open-enrollment charter school unless the judge finds the decision
  is arbitrary and capricious or clearly erroneous; and
               (2)  a decision of the administrative law judge under
  this subsection is final and may not be appealed.
         (h)  If a charter holder submits a petition for renewal of a
  charter for an open-enrollment charter school, notwithstanding the
  expiration date of the charter, the charter term is extended until
  the commissioner has provided notice to the charter holder of the
  renewal, denial of renewal, or expiration of the charter.
         (i)  The term of a charter renewed under this section is 10
  years for each renewal.
         (j)  The commissioner shall adopt rules to modify criteria
  for renewal, denial of renewal, or expiration of a charter for an
  open-enrollment charter school under this section to the extent
  necessary to address changes in performance rating categories or in
  the financial accountability system under Chapter 39.
         (k)  For purposes of determination of renewal under
  Subsection (b)(1) or (3) or (d)(1) or (4), performance during the
  2011-2012 school year may not be considered. For purposes of
  determination of renewal under Subsection (b)(1) or (3) or (d)(1)
  or (4), the initial three school years for which performance
  ratings under Subchapter C, Chapter 39, shall be considered are the
  2009-2010, 2010-2011, and 2012-2013 school years.  For purposes of
  determination of renewal under Subsection (b)(2) or (d)(2), the
  earliest school year for which financial accountability
  performance ratings under Subchapter D, Chapter 39, may be
  considered is the 2010-2011 school year. This subsection expires
  September 1, 2016.
         SECTION 25.  Section 12.115, Education Code, is amended to
  read as follows:
         Sec. 12.115.  BASIS FOR CHARTER [MODIFICATION, PLACEMENT ON
  PROBATION,] REVOCATION[,] OR MODIFICATION OF GOVERNANCE [DENIAL OF
  RENEWAL]. (a)  Except as provided by Subsection (c), the [The] 
  commissioner shall [may modify, place on probation,] revoke[, or
  deny renewal of] the charter of an open-enrollment charter school
  or reconstitute the governing body of the charter holder if the
  commissioner determines that the charter holder:
               (1)  committed a material violation of the charter,
  including failure to satisfy accountability provisions prescribed
  by the charter;
               (2)  failed to satisfy generally accepted accounting
  standards of fiscal management;
               (3)  failed to protect the health, safety, or welfare
  of the students enrolled at the school; [or]
               (4)  failed to comply with this subchapter or another
  applicable law or rule;
               (5)  failed to satisfy the performance framework
  standards adopted under Section 12.1181; or
               (6)  is imminently insolvent as determined by the
  commissioner in accordance with commissioner rule.
         (b)  The action the commissioner takes under Subsection (a)
  shall be based on the best interest of the open-enrollment charter
  school's students, the severity of the violation, [and] any
  previous violation the school has committed, and the accreditation
  status of the school.
         (c)  The commissioner shall revoke the charter of an
  open-enrollment charter school if:
               (1)  the charter holder has been assigned an
  unacceptable performance rating under Subchapter C, Chapter 39, for
  the three preceding school years;
               (2)  the charter holder has been assigned a financial
  accountability performance rating under Subchapter D, Chapter 39,
  indicating financial performance lower than satisfactory for the
  three preceding school years; or
               (3)  the charter holder has been assigned any
  combination of the ratings described by Subdivision (1) or (2) for
  the three preceding school years.
         (c-1)  For purposes of revocation under Subsection (c)(1),
  performance during the 2011-2012 school year may not be considered.
  For purposes of revocation under Subsection (c)(1), the initial
  three school years for which performance ratings under Subchapter
  C, Chapter 39, shall be considered are the 2009-2010, 2010-2011,
  and 2012-2013 school years. For purposes of revocation under
  Subsection (c)(2), the initial three school years for which
  financial accountability performance ratings under Subchapter D,
  Chapter 39, shall be considered are the 2010-2011, 2011-2012, and
  2012-2013 school years. This subsection expires September 1, 2016.
         (d)  In reconstituting the governing body of a charter holder
  under this section, the commissioner shall appoint members to the
  governing body. In appointing members under this subsection the
  commissioner:
               (1)  shall consider:
                     (A)  local input from community members and
  parents; and
                     (B)  appropriate credentials and expertise for
  membership, including financial expertise, whether the person
  lives in the geographic area the charter holder serves, and whether
  the person is an educator; and
               (2)  may reappoint current members of the governing
  body.
         (e)  If a governing body of a charter holder subject to
  reconstitution under this section governs enterprises other than
  the open-enrollment charter school, the commissioner may require
  the charter holder to  create a new, single-purpose organization
  that is exempt from taxation under Section 501(c)(3), Internal
  Revenue Code of 1986, to govern the open-enrollment charter school
  and may require the charter holder to surrender the charter to the
  commissioner for transfer to the organization created under this
  subsection. The commissioner shall appoint the members of the
  governing body of an organization created under this subsection.
         (f)  This section does not limit the authority of the
  attorney general to take any action authorized by law.
         (g)  The commissioner shall adopt rules necessary to
  administer this section.
         (h)  The commissioner shall adopt initial rules under
  Subsection (g) not later than September 1, 2014.  This subsection
  expires October 1, 2014.
         SECTION 26.  Section 12.116, Education Code, is amended to
  read as follows:
         Sec. 12.116.  PROCEDURE FOR [MODIFICATION, PLACEMENT ON
  PROBATION,] REVOCATION[,] OR MODIFICATION OF GOVERNANCE [DENIAL OF
  RENEWAL].  (a)  The commissioner shall adopt an informal [a]
  procedure to be used for [modifying, placing on probation,]
  revoking[, or denying renewal of] the charter of an open-enrollment
  charter school or for reconstituting the governing body of the
  charter holder as authorized by Section 12.115.
         (b)  [The procedure adopted under Subsection (a) must
  provide an opportunity for a hearing to the charter holder and to
  parents and guardians of students in the school.   A hearing under
  this subsection must be held at the facility at which the program is
  operated.
         [(c)]  Chapter 2001, Government Code, does not apply to a
  procedure [hearing] that is related to a [modification, placement
  on probation,] revocation[,] or modification of governance [denial
  of renewal] under this subchapter.
         (c)  A decision by the commissioner to revoke a charter is
  subject to review by the State Office of Administrative Hearings.  
  Notwithstanding Chapter 2001, Government Code:
               (1)  the administrative law judge shall uphold a
  decision by the commissioner to revoke a charter unless the judge
  finds the decision is arbitrary and capricious or clearly
  erroneous; and
               (2)  a decision of the administrative law judge under
  this subsection is final and may not be appealed.
         (d)  If the commissioner revokes the charter of an
  open-enrollment charter school, the commissioner may:
               (1)  manage the school until alternative arrangements
  are made for the school's students; and
               (2)  assign operation of one or more campuses formerly
  operated by the charter holder who held the revoked charter to a
  different charter holder who consents to the assignment.
         SECTION 27.  Subsection (a), Section 12.1161, Education
  Code, is amended to read as follows:
         (a)  If [Except as provided by Subsection (b), if] the
  commissioner revokes or denies the renewal of a charter of an
  open-enrollment charter school[,] or [if] an open-enrollment
  charter school surrenders its charter, the school may not:
               (1)  continue to operate under this subchapter; or
               (2)  receive state funds under this subchapter.
         SECTION 28.  Subsection (c), Section 12.1163, Education
  Code, is amended to read as follows:
         (c)  Unless the commissioner has specific cause to conduct an
  additional audit, the commissioner may not conduct more than one
  on-site audit [under Section 12.1163] during any fiscal year,
  including any financial and administrative records. For purposes
  of this subsection, an audit of a charter holder or management
  company associated with an open-enrollment charter school is not
  considered an audit of the school.
         SECTION 29.  Subsection (a), Section 12.1164, Education
  Code, is amended to read as follows:
         (a)  The commissioner must notify the Teacher Retirement
  System of Texas in writing of the revocation, denial of renewal,
  expiration, or surrender of a charter under this subchapter not
  later than the 10th business day after the date of the event.
         SECTION 30.  Subchapter D, Chapter 12, Education Code, is
  amended by adding Section 12.1181 to read as follows:
         Sec. 12.1181.  PERFORMANCE FRAMEWORKS; ANNUAL EVALUATIONS.  
  (a)  The commissioner shall develop and by rule adopt performance
  frameworks that establish standards by which to measure the
  performance of an open-enrollment charter school. The commissioner
  shall develop and by rule adopt separate, specific performance
  frameworks by which to measure the performance of an
  open-enrollment charter school that is registered under the
  agency's alternative education accountability procedures for
  evaluation under Chapter 39. The performance frameworks shall be
  based on national best practices that charter school authorizers
  use in developing and applying standards for charter school
  performance. In developing the performance frameworks, the
  commissioner shall solicit advice from charter holders, the members
  of the governing bodies of open-enrollment charter schools, and
  other interested persons.
         (b)  The performance frameworks may include a variety of
  standards. In evaluating an open-enrollment charter school, the
  commissioner shall measure school performance against an
  established set of quality standards developed and adopted by the
  commissioner.
         (c)  Each year, the commissioner shall evaluate the
  performance of each open-enrollment charter school based on the
  applicable performance frameworks adopted under Subsection (a).  
  The performance of a school on a performance framework may not be
  considered for purposes of renewal of a charter under Section
  12.1141(d) or revocation of a charter under Section 12.115(c).
         SECTION 31.  Section 12.119, Education Code, is amended to
  read as follows:
         Sec. 12.119.  BYLAWS; ANNUAL REPORT. (a)  A charter holder
  shall file with the commissioner [State Board of Education] a copy
  of its articles of incorporation and bylaws, or comparable
  documents if the charter holder does not have articles of
  incorporation or bylaws, within the period and in the manner
  prescribed by the commissioner [board].
         (b)  Each year within the period and in a form prescribed by
  the commissioner [State Board of Education], each open-enrollment
  charter school shall file with the commissioner [board] the
  following information:
               (1)  the name, address, and telephone number of each
  officer and member of the governing body of the open-enrollment
  charter school; and
               (2)  the amount of annual compensation the
  open-enrollment charter school pays to each officer and member of
  the governing body.
         (c)  On request, the commissioner [State Board of Education]
  shall provide the information required by this section and Section
  12.111(a)(7) [12.111(a)(8)] to a member of the public.  The
  commissioner [board] may charge a reasonable fee to cover the
  commissioner's [board's] cost in providing the information.
         SECTION 32.  Section 12.120, Education Code, is amended by
  adding Subsection (a-1) to read as follows:
         (a-1)  Notwithstanding Subsection (a), subject to Section
  12.1059, an open-enrollment charter school may employ a person:
               (1)  as a teacher or educational aide if:
                     (A)  a school district could employ the person as
  a teacher or educational aide; or
                     (B)  a school district could employ the person as
  a teacher or educational aide if the person held the appropriate
  certificate issued under Subchapter B, Chapter 21, and the person
  has never held a certificate issued under Subchapter B, Chapter 21;
  or
               (2)  in a position other than a position described by
  Subdivision (1) if a school district could employ the person in that
  position.
         SECTION 33.  Subchapter D, Chapter 12, Education Code, is
  amended by adding Section 12.1202 to read as follows:
         Sec. 12.1202.  REQUIREMENT FOR MAJORITY OF MEMBERS OF
  GOVERNING BODY. A majority of the members of the governing body of
  an open-enrollment charter school or the governing body of a
  charter holder must be qualified voters.
         SECTION 34.  Subchapter D, Chapter 12, Education Code, is
  amended by adding Section 12.1211 to read as follows:
         Sec. 12.1211.  NAMES OF MEMBERS OF GOVERNING BODY LISTED ON
  WEBSITE. An open-enrollment charter school shall list the names of
  the members of the governing body on the home page of the school's
  Internet website.
         SECTION 35.  Subsection (a), Section 12.122, Education Code,
  is amended to read as follows:
         (a)  Notwithstanding the applicable provisions of the
  Business Organizations Code [Texas Non-Profit Corporation Act
  (Article 1396-1.01 et seq., Vernon's Texas Civil Statutes)] or
  other law, on request of the commissioner, the attorney general may
  bring suit against a member of the governing body of an
  open-enrollment charter school for breach of a fiduciary duty by
  the member, including misapplication of public funds.
         SECTION 36.  Subchapter D, Chapter 12, Education Code, is
  amended by adding Section 12.1231 to read as follows:
         Sec. 12.1231.  TRAINING FOR AGENCY EMPLOYEES. Not later
  than October 1, 2013, each agency employee assigned responsibility
  related to granting charters for open-enrollment charter schools or
  providing oversight or monitoring of charter holders or
  open-enrollment charter schools must participate in training on
  charter school authorization, oversight, and monitoring provided
  by a nationally recognized organization of charter school
  authorizers identified by the commissioner. This section expires
  January 1, 2014.
         SECTION 37.  Subsection (a), Section 12.128, Education Code,
  is amended to read as follows:
         (a)  Property purchased or leased with funds received by a
  charter holder under Section 12.106 after September 1, 2001:
               (1)  is considered to be public property for all
  purposes under state law;
               (2)  is property of this state held in trust by the
  charter holder for the benefit of the students of the
  open-enrollment charter school; and
               (3)  may be used only for a purpose for which a school
  district may use school district property.
         SECTION 38.  Section 12.129, Education Code, is amended to
  read as follows:
         Sec. 12.129.  MINIMUM [TEACHER] QUALIFICATIONS FOR
  PRINCIPALS AND TEACHERS. A person employed as a principal or a
  teacher by an open-enrollment charter school must hold a
  baccalaureate degree [high school diploma].
         SECTION 39.  Subchapter D, Chapter 12, Education Code, is
  amended by adding Section 12.136 to read as follows:
         Sec. 12.136.  POSTING OF CHIEF EXECUTIVE OFFICER SALARY.  An
  open-enrollment charter school shall post on the school's Internet
  website the salary of the school's superintendent or, as
  applicable, of the administrator serving as educational leader and
  chief executive officer.
         SECTION 40.  Sections 12.152 and 12.154, Education Code, are
  amended to read as follows:
         Sec. 12.152.  AUTHORIZATION. [(a)]  In accordance with this
  subchapter and Subchapter D, the commissioner [State Board of
  Education] may grant a charter on the application of:
               (1)  a public senior college or university for an
  open-enrollment charter school to operate on the campus of the
  public senior college or university or in the same county in which
  the campus of the public senior college or university is located; or
               (2)  a public junior college for an open-enrollment
  charter school to operate on the campus of the public junior college
  or in the same county in which the campus of the public junior
  college is located.
         Sec. 12.154.  CONTENT. (a)  Notwithstanding Section
  12.110(d), the commissioner [State Board of Education] may grant a
  charter under this subchapter to a public senior college or
  university only if the following criteria are satisfied in the
  public senior college's or university's application, as determined
  by the commissioner [State Board of Education]:
               (1)  the college or university charter school's
  educational program must include innovative teaching methods;
               (2)  the college or university charter school's
  educational program must be implemented under the direct
  supervision of a member of the teaching or research faculty of the
  public senior college or university;
               (3)  the faculty member supervising the college or
  university charter school's educational program must have
  substantial experience and expertise in education research,
  teacher education, classroom instruction, or educational
  administration;
               (4)  the college or university charter school's
  educational program must be designed to meet specific goals
  described in the charter, including improving student performance,
  and each aspect of the program must be directed toward the
  attainment of the goals;
               (5)  the attainment of the college or university
  charter school's educational program goals must be measured using
  specific, objective standards set forth in the charter, including
  assessment methods and a time frame; and
               (6)  the financial operations of the college or
  university charter school must be supervised by the business office
  of the public senior college or university.
         (b)  Notwithstanding Section 12.110(d), the commissioner
  [State Board of Education] may grant a charter under this
  subchapter to a public junior college only if the following
  criteria are satisfied in the public junior college's application,
  as determined by the commissioner [State Board of Education]:
               (1)  the junior college charter school's educational
  program must be implemented under the direct supervision of a
  member of the faculty of the public junior college;
               (2)  the faculty member supervising the junior college
  charter school's educational program must have substantial
  experience and expertise in teacher education, classroom
  instruction, or educational administration;
               (3)  the junior college charter school's educational
  program must be designed to meet specific goals described in the
  charter, such as dropout recovery, and each aspect of the program
  must be directed toward the attainment of the goals;
               (4)  the attainment of the junior college charter
  school's educational program goals must be measured using specific,
  objective standards set forth in the charter, including assessment
  methods and a time frame; and
               (5)  the financial operations of the junior college
  charter school must be supervised by the business office of the
  junior college.
         SECTION 41.  Subsection (b), Section 12.156, Education Code,
  is amended to read as follows:
         (b)  A charter granted under this subchapter is not
  considered for purposes of the limit on the number of
  open-enrollment charter schools imposed by Section 12.101
  [12.101(b)].
         SECTION 42.  Subsections (b), (c), and (d), Section 25.082,
  Education Code, are amended to read as follows:
         (b)  The board of trustees of each school district and the
  governing board of each open-enrollment charter school shall
  require students, once during each school day at each campus
  [school in the district], to recite:
               (1)  the pledge of allegiance to the United States flag
  in accordance with 4 U.S.C. Section 4[, and its subsequent
  amendments]; and
               (2)  the pledge of allegiance to the state flag in
  accordance with Subchapter C, Chapter 3100, Government Code.
         (c)  On written request from a student's parent or guardian,
  a school district or open-enrollment charter school shall excuse
  the student from reciting a pledge of allegiance under Subsection
  (b).
         (d)  The board of trustees of each school district and the
  governing board of each open-enrollment charter school shall
  provide for the observance of one minute of silence at each campus 
  [school in the district] following the recitation of the pledges of
  allegiance to the United States and Texas flags under Subsection
  (b). During the one-minute period, each student may, as the student
  chooses, reflect, pray, meditate, or engage in any other silent
  activity that is not likely to interfere with or distract another
  student. Each teacher or other school employee in charge of
  students during that period shall ensure that each of those
  students remains silent and does not act in a manner that is likely
  to interfere with or distract another student.
         SECTION 43.  Section 39.152, Education Code, is amended to
  read as follows:
         Sec. 39.152.  REVIEW BY STATE OFFICE OF ADMINISTRATIVE
  HEARINGS:  SANCTIONS.  (a)  A school district or open-enrollment
  charter school that intends to challenge a decision by the
  commissioner under this chapter to close the district or a district
  campus or the charter school or to pursue alternative management of
  a district campus or the charter school must appeal the decision
  under this section [the procedures provided for a contested case
  under Chapter 2001, Government Code].
         (b)  A challenge to a decision under this section is under
  the substantial evidence rule as provided by Subchapter G, Chapter
  2001, Government Code.  The commissioner shall adopt procedural
  rules for a challenge under this section.
         (c)  Notwithstanding other law:
               (1)  the State Office of Administrative Hearings shall
  conduct [provide] an expedited review of a challenge under this
  section;
               (2)  the administrative law judge shall issue a final
  order not later than the 30th day after the date on which the
  hearing is finally closed; [and]
               (3)  the decision of the administrative law judge is
  final and may not be appealed; and
               (4)  the decision of the administrative law judge may
  set an effective date for an action under this section.
         SECTION 44.  Subsection (a), Section 221.0071, Human
  Resources Code, is amended to read as follows:
         (a)  Notwithstanding any other law and in addition to the
  number of charters allowed under Subchapter D, Chapter 12,
  Education Code, the commissioner of education [State Board of
  Education] may grant a charter on the application of a detention,
  correctional, or residential facility established only for
  juvenile offenders under Section 51.12, 51.125, or 51.126, Family
  Code.
         SECTION 45.  Subsection (d), Section 221.056, Human
  Resources Code, is amended to read as follows:
         (d)  Notwithstanding any other law and in addition to the
  number of charters allowed under Subchapter D, Chapter 12,
  Education Code, the commissioner of education [State Board of
  Education] shall grant a charter on the application of a
  residential treatment facility established under this section for a
  school chartered for the purposes of this section.
         SECTION 46.  Subsection (c), Section 140.006, Local
  Government Code, is amended to read as follows:
         (c)  The presiding officer of a school district shall submit
  a financial statement prepared under Section 140.005 to a daily,
  weekly, or biweekly newspaper published within the boundaries of
  the district. If a daily, weekly, or biweekly newspaper is not
  published within the boundaries of the school district, the
  financial statement shall be published in the manner provided by
  Subsections (a) and (b). The governing body of an open-enrollment
  charter school shall take action to ensure that the school's
  financial statement is [of an open-enrollment charter school shall
  be] made available in the manner provided by Chapter 552,
  Government Code, and is posted continuously on the school's
  Internet website.
         SECTION 47.  The following provisions of the Education Code
  are repealed:
               (1)  Subsection (b), Section 12.1055;
               (2)  Subsection (b), Section 12.113; and
               (3)  Subsection (b), Section 12.1161.
         SECTION 48.  The State Board of Education is required to
  implement Section 12.1014, Education Code, as added by this Act,
  only if the legislature appropriates money specifically for that
  purpose.  If the legislature does not appropriate money
  specifically for that purpose, the board may, but it is not required
  to, implement that section using other appropriations available for
  that purpose.
         SECTION 49.  This Act takes effect September 1, 2013.
 
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 2 passed the Senate on
  April 11, 2013, by the following vote:  Yeas 30, Nays 1;
  May 21, 2013, Senate refused to concur in House amendments and
  requested appointment of Conference Committee; May 22, 2013, House
  granted request of the Senate; May 26, 2013, Senate adopted
  Conference Committee Report by the following vote:  Yeas 28,
  Nays 3.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 2 passed the House, with
  amendments, on May 17, 2013, by the following vote:  Yeas 114,
  Nays 23, two present not voting; May 22, 2013, House granted
  request of the Senate for appointment of Conference Committee;
  May 26, 2013, House adopted Conference Committee Report by the
  following vote:  Yeas 105, Nays 41, one present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
             Date
 
 
  ______________________________ 
            Governor