HBA-MPM H.B. 2358 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2358
By: Olivo
Public Education
4/20/1999
Introduced



BACKGROUND AND PURPOSE 

There have been 168 charters granted by the State Board of Education
(board) for open enrollment charter schools (charter schools), 88 of which
are currently operational in Texas.  The board recently adopted a
resolution to encourage the creation of more charter schools.  Preliminary
findings suggest that charter schools are not out-performing public schools
when it comes to the percentage of student who pass the Texas Assessment of
Academic Skills (TAAS) test.  H.B. 2358 prohibits the board from granting
additional original charters, and requires the evaluation of  charter
schools to emphasis the performance of the charter schools' students on the
TAAS test, as well as the number of students who did not re-enroll at the
charter school the following year.  This bill also makes a charter school
subject to annual audits and requires the state auditor to conduct an audit
of each charter school at least once during the term of the charter.  The
bill further prohibits a charter school from contracting out of the
management or operation of a charter school to another entity that would
not be eligible to receive a charter, such as a for-profit entity. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 12.101(b), Education Code, to prohibit the State
Board of Education from granting an original charter, rather than a total
of more than 20 charters, for an open-enrollment charter school (charter
school) after the effective date of the 1999 amendment to this section. 

SECTION 2.  Amends Section 12.118, Education Code, by amending Subsection
(b) and adding Subsection (d), as follows: 

(b)  Provides that an evaluation under this section, before and after
implementing the charter, as applicable, must emphasize student's scores on
assessment instruments administered under Subchapter B (Assessment of
Academic Skills), Chapter 39 (Public School System Accountability),
Education Code, and the rate at which eligible students re-enroll in the
school from year to year, as well as include consideration of certain items
regarding student attendance, grades, incidents involving student
discipline, socioeconomic data on students' families, and students' and
parents' satisfaction with the charter school.  Deletes students' scores on
assessment instruments administered under Subchapter B, Chapter 39,
Education Code.  Redesignates Subdivision (1) to Subdivision (2) and
Subdivisions (1)-(7) to Paragraphs (A)-(F).  Makes conforming changes. 

(d)  Requires the Texas Education Agency (agency) to reimburse a charter
school for the cost of an evaluation under this section if funds are
appropriated for that purpose.  Requires the commissioner of education
(commissioner) to reimburse each school proportionately if the funds
appropriated are insufficient to cover the cost of evaluation of all
schools. 

SECTION 3.  Amends Subchapter D, Chapter 12, Education code, by adding
Sections 12.119 and 12.120, as follows: 

 Sec. 12.119.  FINANCIAL AUDITS.  (a)  Provides that a charter school is
subject to the financial audit requirements of Section 44.008 (Annual
Audit; Report), Education Code. 

(b)  Requires the state auditor, at least once during the period for which
a charter or renewed charter is valid, to perform a financial audit of each
charter school and to prescribe a schedule of audits for this purpose.
Requires the charter school to reimburse the state auditor for the cost of
this audit.  Provides that the audit of the state auditor satisfies the
annual financial audit requirements of Section 44.008, Education Code, for
the year the audit is performed. 

Sec. 12.120.  CERTAIN CONTRACTS PROHIBITED.  Prohibits a charter school
from contracting for the management or operation of the school by an entity
that is ineligible for a charter under Section 12.101(a) (regarding the
granting of a charter on the application of an eligible entity for a
charter school to operate in a facility of a commercial or nonprofit entity
or a school district, including a home-rule school district), Education
Code. 

SECTION 4.  Repealer:  Section 12.1011 (Public Education Grant Charters),
Education Code.  This section states that, in addition to the other
charters authorized under this subchapter, in accordance with this
subchapter, the board  may grant no more than 100 charters for charter
schools that adopt an express policy providing for the admission of
students eligible for a public education grant; and additional charters for
charter schools for which at least 75 percent of the prospective student
population, as specified in the proposed charter, will be students who have
dropped out of school or are at risk of dropping out of school.  Further
states that a charter school granted a charter under this section may serve
students who are not eligible for a public education grant, but a school
granted a charter must maintain, as a condition of its charter, the
required percentage of students.   

SECTION 5.  Provides that this Act takes effect September 1, 1999, with the
exceptions of Sections 1 and 4 of this Act, which take effect immediately.
Makes changes in law made by this Act prospective. 

SECTION 6.Emergency clause.