Part 2.
TEXAS EDUCATION AGENCY
Chapter 97.
PLANNING AND ACCREDITATION
Subchapter DD. PROCEDURES FOR INVESTIGATIVE REPORTS AND SANCTIONS
19 TAC §§97.1031, 97.1033, 97.1035
The Texas Education Agency (TEA) proposes new §§97.1031,
97.1033, and 97.1035, concerning investigative reports and sanctions. The
proposed new sections define the procedures for on-site investigations and
reports as required by Texas Education Code (TEC), §39.076, and the procedures
for accreditation sanctions under TEC, §39.131, resulting from such reports.
House Bill (HB) 6, 77th Texas Legislature, 2001, requires the commissioner
to sanction open-enrollment charter schools based on the results of on-site
investigations and reports under TEC, §39.076.
HB 6, 77th Texas Legislature, 2001, added TEC, §12.1162, directing
the commissioner to sanction open-enrollment charter schools based on the
results of on-site investigations and reports under TEC, §39.076. The
proposed new sections set procedures for on-site investigations and reports
under TEC, §39.076, and procedures for accreditation sanctions under
TEC, §39.131, resulting from such reports. The proposed new rules provide
for notice to any person whom the report finds to have committed a violation
of law, rule, or policy, and provide for an informal review of such findings
before they may become final.
Ron McMichael, deputy commissioner for finance and accountability, has
determined that for the first five-year period the sections are in effect
there will be no significant fiscal impact to the state or local government
as a result of enforcing or administering the new sections.
Mr. McMichael and Criss Cloudt, associate commissioner for accountability
reporting and research, have determined that for each year of the first five
years the sections are in effect the public benefit anticipated as a result
of enforcing the sections is the establishment of clear procedures for on-site
investigations and reports and clear procedures for accreditation sanctions
resulting from such reports. There will not be an effect on small businesses.
There is no anticipated economic cost to persons who are required to comply
with the proposed new sections.
Comments on the proposal may be submitted to Criss Cloudt, Accountability
Reporting and Research, 1701 North Congress Avenue, Austin, Texas 78701, (512)
463-9701. Comments may also be submitted electronically to
rules@tea.state.tx.us
or faxed to (512) 475-3499. All requests for
a public hearing on the proposed sections 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
The new sections are proposed under the Texas Education Code
(TEC), §39.076, which authorizes the TEA to adopt written procedures
for conducting on-site investigations relating to accreditation status and
TEC, §12.1162, as added by House Bill (HB) 6, 77th Texas Legislature,
2001, which authorizes the commissioner of education to adopt rules to implement
procedures for accreditation sanctions. HB 6 requires the commissioner to
sanction open-enrollment charters based on the results of on-site investigation
and reports under TEC, §39.076.
The new sections implement the Texas Education Code, §12.1162, as
added by House Bill 6, 77th Texas Legislature, 2001, and §39.076.
§97.1031.Preliminary Investigative Report.
(a)
Findings resulting from an investigation under Texas Education
Code (TEC), §39.074 and §39.075, must be presented in a preliminary
investigative report.
(b)
Before issuing a final investigative report, the Texas
Education Agency (TEA) must notify the person whom the TEA proposes to find
has violated a law, rule, or policy. The notice must be in writing and must:
(1)
include a copy of a preliminary investigative report finding
that the person has violated a law, rule, or policy;
(2)
state the procedures for obtaining an informal review of
the findings in the preliminary investigative report under TEC, §39.076(b);
and
(3)
set a deadline, which shall not be less than ten calendar
days from the issuance of the preliminary investigative report, for requesting
an informal review of such findings.
§97.1033.Informal Review of Preliminary Investigative Report; Final Investigative Report.
(a)
A person who is found in a preliminary investigative report
to have violated a law, rule, or policy may request, in writing, an informal
review under this section.
(b)
A written request for informal review of the preliminary
investigative report must be addressed to the Texas Education Agency (TEA)
office responsible for accreditation investigations. The written request must
be received by the TEA on or before the deadline specified in §97.1031(b)(3)
of this title (relating to Preliminary Investigative Report).
(c)
The person requesting the informal review of the preliminary
investigative report may submit written information to the TEA office responsible
for accreditation investigations for review. In addition, the TEA representative
responsible for accreditation investigations may meet with the person at TEA
headquarters in Austin, Texas to discuss the findings and accept additional
written information for review.
(d)
Following the informal review of the preliminary investigative
report by the office responsible for accreditation investigations, a final
investigative report will be issued. The final report may include changes
or additions to the preliminary investigative report and such modifications
are not subject to another informal review procedure.
(e)
If no informal review of the preliminary investigative
report is requested by the deadline specified in §97.1031, or if no violation
of law, rule, or policy is found in the report, a final investigative report
may be issued without informal review.
(f)
An informal review of the preliminary investigative report
is not governed by Texas Education Code, §7.057, or by Government Code,
Chapter 2001.
§97.1035.Procedures for Accreditation Sanctions.
(a)
If the commissioner of education finds that a district,
campus, or open-enrollment charter school does not satisfy applicable accreditation
criteria, the commissioner may lower its accreditation rating and take appropriate
action under Texas Education Code (TEC), §39.131.
(b)
Regardless of whether the commissioner lowers the accreditation
rating under subsection (a) of this section, the commissioner may take action
under TEC, §39.131(a)(1)-(8) if the commissioner determines that the
action is necessary to improve any area of performance by the district or
open-enrollment charter school.
(c)
Except as provided by TEC, §39.131, once the commissioner
takes action under that section, the commissioner may take any other action
under that section to the extent the commissioner determines necessary.
(d)
The commissioner shall notify the district or open-enrollment
charter school in writing of a sanction imposed under this section. The notice
must state the finding(s) indicating that the district or open-enrollment
charter school does not satisfy applicable accreditation criteria. The finding(s)
must be made in a final investigative report or based on a final investigative
report.
(e)
A determination under subsections (b) and (c) of this section
must be made in writing and must be included in a written notice under subsection
(d) of this section. The determination must be made in a final investigative
report or based on a final investigative report. A determination under subsection
(c) of this section may be based on a report on the progress of a prior action
under TEC, §39.131.
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.
Filed with the Office of
the Secretary of State, on July 11, 2001.
TRD-200103965
Criss Cloudt
Associate Commissioner, Accountability Reporting and Research
Texas Education Agency
Earliest possible date of adoption: August 26, 2001
For further information, please call: (512) 463-9701
Subchapter AA. COMMISSIONER'S RULES CONCERNING OPEN-ENROLLMENT CHARTER SCHOOLS
1.
AMENDMENT AND RENEWAL PROCEDURES AND CRITERIA
19 TAC §100.1011
The Texas Education Agency (TEA) proposes new §100.1011,
concerning open-enrollment charter schools. In accordance with House Bill
(HB) 6, 77th Texas Legislature, 2001, the proposed new section clarifies the
status of a charter pending final determination on an application for renewal.
Texas Education Code (TEC), §12.116, as amended by House Bill (HB) 6,
77th Texas Legislature, 2001, requires the commissioner of education to adopt
a procedure to be used for modifying, placing on probation, revoking, or denying
renewal of the charter of an open-enrollment charter school.
The Administrative Procedures Act specifies in Government Code, §2001.054,
that a licensee that submits a timely and sufficient application for renewal
of the license may continue to enjoy that license until the agency makes a
final determination regarding the pending application. This provision applied
to open-enrollment charters until HB 6 amended TEC, §12.116, to provide
that the renewal of a charter under that section is not governed by the Administrative
Procedures Act. To continue in effect the protections of Government Code, §2001.054,
proposed new §100.1011 provides that a charter continues in effect pending
final determination of an application for its renewal.
Hugh Hayes, deputy commissioner for initiatives and administration, has
determined that for the first five-year period the section is in effect there
will be no significant fiscal impact to the state or local government as a
result of enforcing or administering the new section.
Mr. Hayes and Criss Cloudt, associate commissioner for accountability reporting
and research, have determined that for each year of the first five years the
section is in effect the public benefit anticipated as a result of enforcing
the section is the allowance of reasonable time for the commissioner to decide
on the renewal application without undue influence from the possible lapse
of the charter. There will not be an effect on small businesses. There is
no anticipated economic cost to persons who are required to comply with the
proposed new section.
Comments on the proposal may be submitted to Criss Cloudt, Accountability
Reporting and Research, 1701 North Congress Avenue, Austin, Texas 78701, (512)
463-9701. Comments may also be submitted electronically to
rules@tea.state.tx.us
or faxed to (512) 475-3499. All requests for
a public hearing on the proposed section 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
The new section is proposed under the Texas Education Code (TEC), §12.116,
as amended by House Bill 6, 77th Texas Legislature, 2001, which authorizes
the commissioner of education to adopt a procedure to be used for modifying,
placing on probation, revoking, or denying renewal of the charter of an open-enrollment
charter school.
The new section implements the Texas Education Code, §12.116, as amended
by House Bill 6, 77th Texas Legislature, 2001.
§100.1011.Effect of Application for Charter Renewal.
If a charter holder makes timely and sufficient application for renewal
of a charter, the existing charter does not expire until the application has
been finally determined by the commissioner of education.
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.
Filed with the Office of
the Secretary of State, on July 11, 2001.
TRD-200103966
Criss Cloudt
Associate Commissioner, Accountability Reporting and Research
Texas Education Agency
Earliest possible date of adoption: August 26, 2001
For further information, please call: (512) 463-9701
19 TAC §§100.1021, 100.1023, 100.1025
The Texas Education Agency (TEA) proposes new §§100.1021,
100.1023, and 100.1025, concerning open-enrollment charter schools. In accordance
with House Bill (HB) 6, 77th Texas Legislature, 2001, the proposed new sections
establish the commissioner's rules on adverse action and interventions based
on charter violations and the health, safety, or welfare of students. Texas
Education Code (TEC), §§12.115, 12.116, and 12.1162, as amended
and added by HB 6, requires the commissioner of education to make all decisions
on sanctions and to adopt the procedural rules for doing so. The proposed
new sections incorporate language from existing State Board of Education (SBOE)
rules for adverse action against charters since the authority for this action
was transferred to the commissioner by HB 6. The existing SBOE rules for revoking
charters will be repealed after the new commissioner's rules take effect.
Hugh Hayes, deputy commissioner for initiatives and administration, has
determined that for the first five-year period the sections are in effect
there will be no significant fiscal impact to the state or local government
as a result of enforcing or administering the new sections.
Mr. Hayes and Criss Cloudt, associate commissioner for accountability reporting
and research, have determined that for each year of the first five years the
sections are in effect the public benefit anticipated as a result of enforcing
the sections is that the commissioner will be enabled to sanction charters
when necessary and thus safeguard the public interest in high quality charter
schools. There will not be an effect on small businesses. There is no anticipated
economic cost to persons who are required to comply with the proposed new
sections.
Comments on the proposal may be submitted to Criss Cloudt, Accountability
Reporting and Research, 1701 North Congress Avenue, Austin, Texas 78701, (512)
463-9701. Comments may also be submitted electronically to
rules@tea.state.tx.us
or faxed to (512) 475-3499. All requests for
a public hearing on the proposed sections 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
The new sections are proposed under the Texas Education Code
(TEC), §12.1162, as added by House Bill 6, 77th Texas Legislature, 2001,
which authorizes the commissioner of education to adopt rules to implement
procedures on adverse action and interventions based on charter violations
and the health, safety, or welfare of students.
The new sections implement the Texas Education Code, §12.1162, as
added by House Bill 6, 77th Texas Legislature, 2001.
§100.1021.Adverse Action on an Open-Enrollment Charter.
(a)
The commissioner of education may modify, place on probation,
revoke, or deny renewal of an open-enrollment charter if the commissioner
determines the charter holder:
(1)
committed a material violation of 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 the requirements of the Texas Education
Code (TEC), Chapter 12, Subchapter D, or other applicable state and/or federal
law or rule.
(b)
The charter holder is responsible under this subchapter
for the acts of any agent, employee, or contractor of the charter school or
the charter holder.
(c)
The commissioner shall notify the charter holder before
modifying, placing on probation, revoking, or denying renewal of the school's
charter. The notice shall clearly specify the following, either in the notice
or by reference to other documents included with the notice:
(1)
the action sought and the grounds for taking such action;
(2)
the date, time, and place for a hearing on the action sought,
which shall be provided to the charter holder and to parents and guardians
of students in the school, if requested in accordance with subsection (e)
of this section;
(3)
a statement of the legal authority and jurisdiction under
which the hearing will be held; and
(4)
a reference to the particular sections of the statutes
and rules involved.
(d)
Notice served on the charter holder shall be notice to
parents and guardians of students in the school.
(e)
Within ten calendar days after receiving the notice, the
charter holder may request a hearing and submit a written response to the
commissioner containing specific answers to each of the findings included
in the notice. If a request for hearing and a written response are not submitted
within ten calendar days, the recommendations of the Texas Education Agency
(TEA) on the proposed action shall be submitted to the commissioner for consideration.
(f)
A hearing held under this section shall be governed by
Chapter 157, Subchapter AA, of this title (relating to General Provisions
for Hearings Before the Commissioner of Education), except as provided herein.
The hearing shall be open to the public and must be held at the facility at
which the program is operated unless a different location is agreed to by
the charter holder and TEA. The hearing shall be held not fewer than ten calendar
days from the date the school receives notice.
(g)
Exceptions to a proposal for decision under this section
shall be filed on or before the expiration of six calendar days from the date
of the proposal for decision. Replies to the exceptions shall be filed on
or before the expiration of ten calendar days from the date of the proposal
for decision.
(h)
A motion for rehearing is not a prerequisite to any judicial
appeal authorized by law. No finding of imminent peril is required. No motion
for rehearing shall toll or delay any applicable time period or deadline.
(i)
The administrative law judge may order that testimony and
evidence from parents and guardians of students at the school be taken via
prefiled written testimony.
§100.1023.Intervention Based on Charter Violations.
(a)
The commissioner of education shall temporarily withhold
funding, suspend the authority of an open-enrollment charter school to operate,
impose a sanction under Texas Education Code, §39.131(a), and/or take
any other reasonable action the commissioner determines necessary, if the
commissioner determines that a charter holder:
(1)
committed a material violation of the school's charter;
(2)
failed to satisfy generally accepted accounting standards
of fiscal management; or
(3)
failed to comply with this subchapter or another applicable
rule or law.
(b)
A determination under this section shall be made under
Chapter 97, Subchapter DD, of this title (relating to Procedures for Investigative
Reports and Sanctions).
§100.1025.Intervention Based on Health, Safety, or Welfare of Students.
(a)
The commissioner of education may temporarily withhold
funding, suspend the authority of an open-enrollment charter school to operate,
and/or take any other reasonable action the commissioner determines necessary
to protect the health, safety, or welfare of students enrolled at the school
based on evidence that conditions at the school present a danger to the health,
safety, or welfare of the students.
(b)
After the commissioner acts under subsection (a) of this
section, the open-enrollment charter school may not receive funding and may
not resume operating until a determination is made that:
(1)
despite initial evidence, the conditions at the school
do not present a danger of material harm to the health, safety, or welfare
of students; or
(2)
the conditions at the school that presented a danger of
material harm to the health, safety, or welfare of students have been corrected.
(c)
Not later than the third business day after the date the
commissioner acts under subsection (a) of this section, the commissioner shall
provide the charter holder an opportunity for a hearing.
(d)
The hearing under this section may be conducted under the
procedures governing informal review of a preliminary investigative report
specified in §97.1033 of this title (relating to Informal Review of Preliminary
Investigative Report; Final Investigative Report) or, at the request of the
charter holder, may be conducted under Chapter 157, Subchapter AA, of this
title (relating to General Provisions for Hearings Before the Commissioner
of Education).
(e)
An action under subsection (a) of this section remains
in effect until a determination under subsection (b) of this section becomes
final under the procedures elected by the charter holder under subsection
(d).
(1)
If the determination is in favor of the charter holder,
the commissioner must cease the action under subsection (a) of this section
immediately.
(2)
If the determination is against the charter holder, the
commissioner must initiate adverse action against the charter under §100.1021
of this title (relating to Adverse Action on an Open-Enrollment Charter).
The action under subsection (a) of this section then remains in effect until
the final decision under §100.1021.
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.
Filed with the Office of
the Secretary of State, on July 11, 2001.
TRD-200103967
Criss Cloudt
Associate Commissioner, Accountability Reporting and Research
Texas Education Agency
Earliest possible date of adoption: August 26, 2001
For further information, please call: (512) 463-9701
19 TAC §100.1041
The Texas Education Agency (TEA) proposes new §100.1041,
concerning open-enrollment charter schools. In accordance with House Bill
(HB) 6, 77th Texas Legislature, 2001, the proposed new section revises the
manner in which state funds are allocated to open-enrollment charter schools.
Texas Education Code (TEC), §12.106, as amended by House Bill (HB) 6,
77th Texas Legislature, 2001, establishes that the commissioner of education
may adopt rules to provide and account for state funding of open-enrollment
charter schools.
In the 74th Regular Session of the Texas Legislature, 1995, open-enrollment
charter schools were authorized and a method for funding them was adopted.
The formula calculations for funding utilized state and local revenue amounts
to which each student's home district had access. The 77th Texas Legislature,
2001, revised the method of funding open-enrollment charters and replaced
data elements attributable to the home district with state average data, beginning
with charter schools that open after September 1, 2001. The proposed new section
specifies the revised method of funding. Specifically, the revised formulas
incorporate the state average adjusted allotment in first tier calculations
and a state average tier II enrichment tax rate in the guaranteed yield calculation
for the second tier. A systematic method for making the transition from the
previous method of computing allocations to the revised method was also provided
in statute, depending upon when the charter school became operational.
Joe Wisnoski, coordinator for school finance and fiscal analysis, has determined
that for the first five-year period the section is in effect there will be
no significant fiscal impact to the state or local government as a result
of enforcing or administering the new section. The change in funding to charter
schools would be negligible statewide (less than 1 percent), although there
could be significant variance among individual charter schools in the amounts
to be paid and in the gains or losses in funding. The proposed new section
could cause significant variance in funding among individual charter schools
but it does not have a definitive cost implication for all charter schools.
Mr. Wisnoski and Criss Cloudt, associate commissioner for accountability
reporting and research, have determined that for each year of the first five
years the section is in effect the public benefit anticipated as a result
of enforcing the section is the clarification of changes enacted by HB 6 and
facilitation of the implementation of the revised funding method. There will
not be an effect on small businesses. There is no anticipated economic cost
to persons who are required to comply with the proposed new section.
Comments on the proposal may be submitted to Criss Cloudt, Accountability
Reporting and Research, 1701 North Congress Avenue, Austin, Texas 78701, (512)
463-9701. Comments may also be submitted electronically to
rules@tea.state.tx.us
or faxed to (512) 475-3499. All requests for
a public hearing on the proposed section 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
The new section is proposed under the Texas Education Code (TEC), §12.106,
as amended by House Bill (HB) 6, 77th Texas Legislature, 2001, which authorizes
the commissioner of education to adopt rules to provide and account for state
funding of open-enrollment charter schools.
The new section implements the Texas Education Code, §12.106, as amended
by House Bill 6, 77th Texas Legislature, 2001.
§100.1041.State Funding.
(a)
Funding formula elements. An open-enrollment charter school
is entitled to funding from both tiers of the Foundation School Program (FSP)
in accordance with the funding formulas for school districts pursuant to Texas
Education Code (TEC), Chapter 42.
(1)
Tier I program allocations are determined by substituting
the statewide average adjusted allotment in place of the district's calculated
adjusted allotment. The state average adjusted allotment takes into account
the cost of education index and the small, mid-size, and sparsity adjustments
specified in TEC, §§42.102, 42.103, 42.104, and 42.105. It is computed
by dividing the state total cost for the regular education program by the
number of students in the state counted in attendance in a regular education
program in accordance with TEC, §42.101.
(2)
An allocation for the guaranteed yield allotment for Tier
II of the FSP is determined by substituting a statewide average enrichment
tax rate in place of the district's calculated enrichment tax rate (DTR) pursuant
to TEC, §42.302. The state average tax rate is computed by first summing
the Maintenance and Operations tax collections up to its DTR maximum limit
for each district in the state and then dividing that result by the sum of
all district property values as defined in TEC, §42.252.
(b)
Implementation schedule. The new formula elements described
in subsection (a) of this section will take effect for open-enrollment charter
schools that begin operation in the 2001-2002 school year or later. Open-enrollment
charter schools that report attendance that occurs prior to September 2, 2001,
are considered to be in operation on September 1, 2001, and will be funded
as described in House Bill 6, Section 40(b). Open-enrollment charter schools
that report no attendance that occurs prior to September 2, 2001, are considered
to begin operation in the 2001-2002 school year or later, and will be funded
according to subsection (a) of this section and TEC, §12.106.
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.
Filed with the Office of
the Secretary of State, on July 11, 2001.
TRD-200103968
Criss Cloudt
Associate Commissioner, Accountability Reporting and Research
Texas Education Agency
Earliest possible date of adoption: August 26, 2001
For further information, please call: (512) 463-9701
Chapter 100.
CHARTERS
2.
ADVERSE ACTION AND INTERVENTION
3.
CHARTER SCHOOL FUNDING
4.
PROPERTY OF OPEN-ENROLLMENT CHARTER SCHOOLS