ORGANIZATION:  ADVERSE ACTIONS ON CHARTERS                              [LAW]

 

 

1.         Modification, Placement on Probation, Revocation, or Denial of Renewal

 

The commissioner of education may modify, place on probation, revoke, or deny renewal of the charter of an open-enrollment school if the commissioner determines that the charter holder:

 

A.        Committed a material violation of the charter, including failure to satisfy accountability provisions prescribed by the charter;

 

B.         Failed to satisfy generally accepted accounting standards of fiscal management;

 

C.        Failed to protect the health, safety, or welfare of the students enrolled at the school; or

 

D.        Failed to comply with any other applicable state and/or federal laws or rules.

 

Any action by the commissioner shall be based on the best interest of the school’s students, the severity of the violation, and any previous violation the school has committed.  If action is taken by the commissioner, then notice will be sent, directed to the charter holder, providing an opportunity for a hearing.  Such notice will be given to the charter holder and to the parents/guardians of students of the school.

 

Tex. Educ. Code §§ 12.115-.116; 19 Tex. Admin. Code § 100.1021.

 

2.         Effect of Revocation, Denial of Renewal, or Surrender of Charter

 

If the commissioner revokes or denies the renewal of a charter of the open-enrollment charter school, or if the open-enrollment charter school surrenders its charter, the school may not continue to operate or to receive state funds under Chapter 12, subchapter D of the Texas Education Code.

 

However, an open-enrollment charter school may continue to operate and receive state funds for the remainder of a school year if the commissioner denies renewal of the school’s charter before the completion of that school year.

 

Tex. Educ. Code § 12.1161.

 

3.         Commissioner Interventions

 

A.        The commissioner shall take any action, including temporarily withholding funding, suspending the authority to operate, or taking reasonable action to protect students, based on the evidence that conditions at the school present a danger to the health, safety, or welfare of students, as well as those actions described in § 39.131(a), Tex. Educ. Code, to the extent the commissioner determines necessary, if the open-enrollment charter school, as determined after an on-site investigation report issued:

 

(1)        Commits a material violation of the school’s charter;

 

(2)        Fails to satisfy generally accepted accounting standards of fiscal management; or

 

(3)        Fails to comply with Texas Education Code, Chapter 12, subchapter D or other applicable rule or law.

 

B.         If the commissioner’s action concerns the protection of students, then the open-enrollment charter school may not receive funding and may not resume operation 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.

 

The charter holder must be provided a hearing by the commissioner.

 

Tex. Educ. Code §§ 12.1162(a)-(d), 39.076; 19 Tex. Admin. Code §§ 100.1023-.1025.

 

4.         Accreditation Sanctions

 

If the open-enrollment charter school does not satisfy the accreditation criteria, the commissioner may take any action relating to the charter school authorized by Tex. Educ. Code § 39.131.

 

Tex. Educ. Code § 39.131; 19 Tex. Admin. Code § 100.1027(a).

 

A.        Charter Holder Cooperation

 

The charter holder and its employees and agents shall fully cooperate with any action by the commissioner and shall take all actions necessary to secure the cooperation of a management company.  Failure to comply with lawful requests, directives, or other agency actions, constitutes a material charter violation.

 

19 Tex. Admin. Code § 100.1027(b).

 

B.         Management Company Cooperation

 

A management company and its employees and agents shall fully cooperate with any action by the commissioner.  Failure to comply with lawful requests, directives, or other Texas Education Agency (TEA) actions constitutes a management company breach. 

 

19 Tex. Admin. Code § 100.1027(c).

 

5.         Audits

 

A.        By Commissioner

 

The commissioner may audit the records of the open-enrollment charter school, the charter holder, and a management company.  The audit must be limited to matters directly related to the management or operation of the open-enrollment charter school, including any financial and administrative records.

 

Tex. Educ. Code § 12.1163; 19 Tex. Admin. Code § 100.1051.

 

B.         By TEA

 

TEA may conduct routine audits, monitoring, and other investigations of the charter school or charter holder to determine compliance with the terms of the open-enrollment charter, with the terms of federal or state grants, or as authorized in the Texas Education Code or other law.

 

C.        School Cooperation

 

The charter holder and its employees and agents, as well as a management company and its employees and agents, shall fully cooperate with audits, monitoring, and investigations conducted by TEA.  Failure to comply with lawful requests, directives, or other agency actions constitutes a material charter violation, and a management company breach, respectively. 

 

19 Tex. Admin. Code § 100.1029.