Volume 5, Number 19, May 10, 2002 Pages: 7
A Publication of the Charter School Resource Center of Texas
Phone 210-348-7890 Fax 210-348-7899
© Charter School Resource Center of Texas All Rights Reserved

Patsy O'Neill, Executive Director Jimmie Driver, Assistant Director
Sally Friedli, Office Manager Sara Murphy, Administrative Assistant
                      

BOARD TRAINING

BOARD TRAINING As soon as the Commissioner's Rules regarding Board Training have been finalized, the Resource Center will proceed with the Charter School Board Training Project, which will then be in compliance with HB6. Topics will include all those required in HB6. Watch the Friday Fax® for the schedule of the Resource Center Board Training that will be offered in your geographic area.

REGION IV ESC SPECIAL ED INSTITUTE The University of Houston Charter will host the Region IV ESC Charter School Administrator Series in Special Education: Summer 2002 Institute (Event Number 3375-13867) from June 17-20, 2002 at University of Houston, University Center. The Institute is open to all Texas charter school educators. Topics will include Child Find/Student Evaluation; Admission, Review, and Dismissal Process; Transition; Behavior and Discipline under IDEA; Writing and Implementing Effective IEPS; and WEB/SAS Online Help Session. On June 20, 2002 a panel of representatives from TEA, Region IV ESC, and an attorney from Bracewell and Patterson, L.L.P., will answer questions from participating charter schools. Fee for participants from the Region IV ESC area is $140. Fee for participants from outside the Region IV area is $210. The fee includes all program materials, continental breakfasts, and a certificate of completion for professional development credit for four days. Optional graduate credit of two hours is available through the University of St. Thomas in Houston for $100. For additional information, contact Ann Frisch, Ed.D., Education Specialist, Region IV ESC, at 713-744-6562 or by email at afrisch@esc4.net.

TEA INFORMATION

SCHOOL CALENDARS SB 108 directs school districts about the date to begin the school year. This bill does not apply to charter schools.

TITLE X START-UP FUNDS Many charters have been awarded or are still negotiating for additional Title X start-up funds that must be spent by June 30, 2002. Of the $6,000,000 to be spent by this date, only a little over $1,000,000 has been used. Any money not spent by June 30th must be returned to the federal government. Please quickly complete all the paperwork requested by the TEA charter school division to finalize your amendment and then spend this money appropriately on Texas students!

ALTERNATIVE ACCOUNTABILITY DATA This year schools must submit end-of-year data online by June 14, 2002. Consult the following web page to download the instructions and required forms: http://www.tea.state.tx.us/alt.ed/curdatsub.html.


ACTION REQUIRED

May 6, 2002

TO THE CHARTER SCHOOL ADMINISTRATOR ADDRESSED:

Subject: Implementing Changes to Charter School Procedures in Accordance with House Bill 6 and Commissioner's Rules

Many of the commissioner's rules implementing House Bill (HB) 6 became effective on April 18, 2002. According to those rules, the items listed below must be submitted to TEA or available for review by TEA or the public by May 20, 2002.

Submit to TEA

  • Existing management contract (File with the Office of Legal Services.) Note: Do not file contracts with the Charter Schools Division.

Make Available for Review

  • A list of individuals to which the charter holder has delegated any of its powers or duties
  • A list disclosing all relatives of each board member/officer involved with that charter holder or charter school as a board member, officer, employee, management company or contractor
  • A list disclosing all business interests of each board member/officer in any charter holder, charter school, or management company
  • Information disclosing the individuals with criminal convictions and with ties to a management company

The following items were due November 1, 2001 and should be submitted immediately if not previously provided:

  • Depository contract (File with School Financial Audits Division.) Note: The bank account into which funds are deposited must be in the name of the charter holder, not the charter school, and the federal tax number provided (i.e., EIN) must also be that of the charter holder.
  • Articles of incorporation/bylaws (File with the Charter Schools Division.)
  • Annual governance report (File with the Charter Schools Division.)

This is not an entire list of all of the actions that are required of charter holders and charter schools, rather it merely outlines information and documents that must be submitted or made available to TEA in the near future or should have already been submitted. Charter holder and charter school officials should review the attached "To Do List" and relevant statutes and commissioner's rules in order to determine all of the requirements necessary for compliance. The statute and commissioner's rules can be accessed via the TEA web site at www.tea.state.tx.us./tea/law. Please contact the Charter Schools Division (512-463-9575) with any questions.

HB 6 "To Do" List - After the April 18 Rules
1. Financial Operations:

§100.1043. Status and Use of State Funds; Depository Contract. [AA, pp. 14-15]

    » Effective 9/1/01:
    • State funds must be used for purposes listed in Texas Education Code (TEC) §45.105(c)
    • Charter school bank account must be owned and controlled by the charter holder
      • Exception: bond debt service required by contract executed before 9/1/01
      • By 11/1/01 (per TEA's 10/9/01 letter), file depository contract with School Financial Audits Division

§100.1063. Use of Public Property by a Charter Holder. [AA, pp. 18-19]

    » Effective 11/6/01:
    • Charter holder board must approve all uses of public property owned by charter holder
    • Property exhibit to audit report due in December 2002

    » Effective 4/18/02:

    • Charter holder board must adopt policies on use of the public property it owns/controls
      • Ethics Commission advisory opinions apply to property-use policies
    • Charter holder board must vote separately on joint use of real estate (charter/non-charter)

§100.1045. Investment of State Funds. [AA, p. 15]

    » Effective 9/1/01:
    • Charter holder must move all state funds into allowed investments (Government Code (GC) §§2256.009-2256.016)

    » Effective 4/18/02:

    • Charter holder must move all state fund investments into separate charter school investment accounts
    • Charter holder must exercise prudence with new investment standard of care and required priorities

§100.1047. Accounting for State Funds. [AA, pp. 16-17]

    » Effective 4/18/02:

    • Charter holder must comply with TEC §25.002, related to enrollment of students
    • Charter holder must account for interested transaction with one in a "position of influence"

§100.1071. Real Property Held in Trust. [AA, pp. 21-22]

    » Effective 9/1/01:

    • Charter holder must obtain trust documents identifying the true owner of real estate when buying from or selling to a trust; otherwise transaction is void

§100.1073. Improvements to Real Property. [AA, p. 22]

    » Effective 9/1/01:
    • Charter holder must comply with Local Government Code (LGB) Ch 271, Sub B in awarding contracts for construction, repair, or renovation of real property over $15,000

    » Effective 4/18/02:

    • Charter holder may amend its charter to substitute TEC Ch 44, Sub B as alternative bidding laws for construction, repair, or renovation of real property over $15,000

§100.1205. Procurement of Professional Services. [AA, p. 38]

    » Effective 9/1/01:

    • Charter holder must comply with GC Ch 2254, Sub A in awarding contracts for professional services
      • Exception: does not apply to a contract executed before 9/1/01

2. Governance:

§100.1101. Delegation of Powers and Duties. [AA, pp. 22-23]

    » Effective 9/1/01:
    • Charter holder must list the powers and duties that may be delegated by charter holder board

    » Effective 4/18/02:

    • Charter holder may only delegate powers or duties as outlined in Texas Administrative Code (TAC) §100.1033(c)(6)

§100.1033(c)(6). Delegation amendment. [AA, pp. 11-12]

    » Effective 4/18/02:
    • Charter holder board must adopt all amendment requests in a written resolution signed by the members voting in favor
    • Charter holder board must accept any conditions imposed by the commissioner in a written resolution signed by the members voting in favor
    • Absent a waiver, charter holder cannot amend its charter to delegate its final authority over charter school grievances, funds, property, records, policies, audits, or over its CEO
    • Absent a waiver, charter holder may only delegate to the CEO its final authority over the charter school central administration, reports, or selection of charter school employees and officers

    » Effective 5/20/02:

    • Charter holder must make available to TEA, under TAC §100.1035(b)(2), information disclosing the individuals to which the charter holder has delegated any of its powers or duties

§100.1111. Applicability of Nepotism Provisions; Exception for Acceptable Performance. [AA, pp. 11-12]
§100.1131. Conflicts of Interest and Board Member Compensation; Exception. [AA, pp. 27-29]

    » Effective 9/1/01:
    • All charter holders must comply with the affidavit and recusal process for conflicts of interest
    • No charter holder may have a quorum of relatives on its charter holder or charter school board, or on any committee of its charter holder or charter school board
    • A charter holder that began operating after 9/1/01 or a charter holder rated lower than acceptable for two of three past years (per TEA's 10/9/01 letter) is subject to GC Ch 573 and to TAC §100.1131(b) and must eliminate all nepotistic ties and compensated board members

    » Effective 4/18/02:

    • The remaining CHs must determine whether the ratings exceptions provided by TAC §§100.1111(e) and 100.1131(f) are available:
      • If the ratings exception is available, TAC §§100.111(e) and 100.1131(f) apply
      • If the ratings exception is not available, the charter holder must eliminate all nepotistic ties and compensated board members

    » Effective 5/20/02:

    • All charter holders must make available to TEA under TAC §100.1035(b)(6) and (7) a list disclosing:
      • All relatives of each board member/officer involved with that charter holder or charter school as a board member, officer, employee, management company or contractor
      • All business interests of each board member/officer in any charter holder, charter school, or management company

§100.1151. Criminal History; Restrictions on Serving. [AA, pp. 30-32]
§100.1153. Substantial Interest in Management Company; Restrictions on Serving. [AA, pp. 32-34]

    » Effective 9/1/01:
    • Charter holder must run criminal history checks on prospective board members, employees and volunteers (per TEA's 10/9/01 letter)

    » Effective 4/18/02:

    • Under TAC §100.1011(3)(A), a charter school "employee" includes anyone paid to work under the direction and control of a charter school officer
    • Charter holder must remove all persons with criminal histories from board, officer position or employment
      • Exception: Contract executed before 9/1/01 + no state funds + no charter school functions
    • Charter holder must eliminate all ties between charter holder or charter school and management company, i.e., remove board member, officer or employee, or remove management company
      • Exception: Contract executed before 9/1/01 + no state funds + no charter school functions

    » Effective 5/20/02:

    • Charter holder must make available to TEA under TAC §100.1035(b)(2) information disclosing the individuals with criminal convictions and with ties to a management company

§100.1155. Procedures for Prohibiting a Management Contract. [AA, pp. 34-35]
§100.1157. Loan from Management Company Prohibited. [AA, pp. 35-36]
§100.1159. Public Records Maintained by Management Company; Contract Provision. [AA, p. 37]

    » Effective 4/18/02:
    • Charter holder must amend existing management contract to require separate records for charter school business
    • Charter holder must eliminate loans between charter holder or charter school and management company, or eliminate management company with which charter holder or charter school has a proscribed loan
      • Exception 1: Loan and management contract executed before 9/1/01 + no state funds
      • Exception 2: Loan and management contract executed before 9/1/01 + debt refinanced by 9/1/02 + management company is cosigner/guarantor + otherwise approved
    • By 5/20/02, charter holder must file existing management contract with TEA Division of Legal Services for review
    • Charter holder must cease performance under management contract if the commissioner prohibits it under TAC §100.1155
    • By December 2002, charter holder must file audit report disclosing all management company loans

§100.101. Annual Report on Open-Enrollment Charter Governance. [A, p. 3]

    » Effective 9/1/01:
    • By 11/1/01 (per TEA's 10/9/01 letter), file articles of incorporation/bylaws with Charter Schools Division

    » Effective 4/18/02:

    • By 11/1/01 charter holder must file annual governance report with Charter Schools Division

3. Other:

§100.1203. Records Management. [AA, p. 37-38]

    » Effective 9/1/01:
    • By 9/1/02, charter holder must submit records retention schedule to State Library Commission

    » Effective 4/18/02:

    • Charter holder must maintain charter school records in Texas at all times
      • Under LGC Ch 205, electronic records may be maintained outside Texas if accessible from Texas during normal business hours
      • Charter school records include those indicated by the Resource Guide; management company records are covered instead by TAC §100.1051

§100.1207. Student Admission. [AA, p. 39]

    » Effective 9/1/01:
    • By a reasonable date, charter holder must set and publish a deadline for enrollment applications
    • By June 1, 2002, charter holder must amend charter to provide for transfers under TAC §100.1207(c)
      • Requires an expansion amendment under TAC §100.1033(c)(5)
      • Requires Impact statements

§100.1215. Instructional Facilities. [AA, p. 40]

    » Effective 9/1/01:
    • Charter holder must have legal right to occupy charter school facility for the entire school year
      • No month-to-month leases
    • Charter holder must amend charter to change a site
      • Not an expansion amendment

§100.1217. Eligible Entity; Change in Status. [AA, p. 41]

    » Effective 9/1/01:
    • Charter holder must maintain 501(c)(3) and corporate status and must disclose any lapses
      • IRS advance ruling must be timely renewed to maintain 501(c)(3) status

TEC §12.129 - Charter holder must terminate teachers without high school diplomas
TEC §12.111 - Charter holder must mend charter: "artistic ability" + parent notice of professional employee qualifications
TEC §12.130 - Charter holder must send annual notice of teacher qualifications to parents