Current through Reg. 49, No. 52; December 27, 2024
The following words and terms, when used in this
subchapter, have the following meaning, unless the context clearly indicates
otherwise.
(1) Business manager--A
person charged with managing the finances of a charter holder or charter
school.
(2) Campus administration
officer--A person charged with the duties of, or acting as, a principal or
assistant principal of a charter school campus, including one or more of the
following functions:
(A) approving teacher or
staff appointments for a charter school campus, unless this function is
performed by a central administration officer under the terms of the
open-enrollment charter;
(B)
setting specific education objectives for a charter school campus, unless this
function is performed by a central administration officer under the terms of
the open-enrollment charter;
(C)
developing budgets for a charter school campus, unless this function is
performed by a central administration officer under the terms of the
open-enrollment charter;
(D)
assuming the administrative responsibility or instructional leadership, under
the supervision of a central administration officer, for discipline at a
charter school campus;
(E)
assigning, evaluating, or promoting personnel assigned to a charter school
campus, unless this function is performed by a central administration officer
under the terms of the open-enrollment charter; or
(F) recommending to a central administration
officer the termination or suspension of an employee assigned to a charter
school campus, or recommending the non-renewal of a term contract of such an
employee.
(3) Capitalized
personal property, fixed assets, ownership interest, cost basis, accumulated
depreciation, loan, debt, credit, and fair market valuation--The definitions of
these terms are as assigned either by §
109.41 of this title (relating to
Financial Accountability System Resource Guide) and/or by generally accepted
accounting principles.
(4) Central
administration officer--A person charged with the duties of, or acting as, a
chief operating officer, director, or assistant director of a charter holder or
charter school, including one or more of the following functions:
(A) assuming administrative responsibility
and leadership for the planning, operation, supervision, or evaluation of the
education programs, services, or facilities of a charter holder or charter
school, or for appraising the performance of the charter holder's or charter
school's staff;
(B) assuming
administrative authority or responsibility for the assignment or evaluation of
any of the personnel of the charter holder or charter school, including those
employed by a management company;
(C) making recommendations to the governing
body of the charter holder or the charter school regarding the selection of
personnel of the charter holder or charter school, including those employed by
a management company;
(D)
recommending the termination, non-renewal, or suspension of an employee or
officer of the charter holder or charter school, including those employed by a
management company; or recommending the termination, non-renewal, suspension,
or other action affecting a management contract;
(E) managing the day-to-day operations of the
charter holder or charter school as its administrative manager;
(F) preparing or submitting a proposed budget
to the governing body of the charter holder or charter school (except for
developing budgets for a charter school campus, if this is a function performed
by a campus administration officer under the terms of the open-enrollment
charter);
(G) preparing
recommendations for policies to be adopted by the governing body of the charter
holder or charter school, or overseeing the implementation of adopted policies,
except for legal services provided by an attorney licensed to practice law in
this state or public accountancy services provided by a certified public
accountant licensed to practice public accountancy services in this state;
(H) developing or causing to be
developed appropriate administrative regulations to implement policies
established by the governing body of the charter holder or charter school,
except for legal services provided by an attorney licensed to practice law in
this state or public accountancy services provided by a certified public
accountant licensed to practice public accountancy services in this state;
(I) providing leadership for the
attainment of student performance in a charter school operated by the charter
holder, based on the indicators adopted under Texas Education Code (TEC),
§39.053 and §39.054, or other indicators adopted by the charter
holder in its open-enrollment charter; or
(J) organizing the central administration of
the charter holder or charter school.
(5) Charter holder, governing body of a
charter holder, and governing body of a charter school--The definitions of
these terms are assigned in TEC, §12.1012. The charter holder shall
reference an entity authorized by one or more of the following:
(A) TEC, Chapter 12, Subchapter D--An
eligible entity as defined in TEC, §12.101, that is authorized to operate
an open-enrollment charter school;
(B) TEC, Chapter 12, Subchapter E--A public
junior college, senior college, or university as defined in TEC, §61.003,
that is authorized to operate an open-enrollment charter school; or
(C) TEC, Chapter 12, Subchapter G--An
eligible entity as defined in TEC, §12.256, that is authorized to operate
an open-enrollment charter school for adults ages 18-50.
(6) Charter school--A Texas public school
operated by a charter holder under an open-enrollment charter contract granted
either by the State Board of Education (SBOE) or commissioner of education,
whichever is applicable, pursuant to TEC, §12.101, identified with its own
county district number.
(A) An "employee of a
charter school," as used in this subchapter, means a person paid to work at a
charter school under the direction and control of an officer of a charter
school, regardless of whether the person is on the payroll of the charter
holder, a charter school operated by the charter holder, a management company
providing management services to the charter holder, or any other person.
(B) A charter school "campus," as
used in this subchapter, means an organizational unit of a charter school
determined by the Texas Education Agency (TEA) to be an instructional campus
for purposes of data collection and reporting. A campus may be a single site or
may include multiple sites as described in subparagraph (C) of this paragraph.
(C) A charter school "site," as
used in this subchapter, means an organizational unit of a charter school with
administrative personnel identified by a separate street address within 25
miles of the campus with which it is associated and fully described in the
open-enrollment charter. A "site" must be approved for instructional use either
in the original open-enrollment charter as granted by the SBOE or commissioner
or in an amendment granted under §
100.1035 of this title (relating
to Charter Amendment).
(D) A
charter school "facility," as used in this subchapter, means a building located
on the same contiguous land as the campus with which it is associated or within
one mile of the campus. The facility and its associated address must be
approved for instructional use through the submission of a certificate of
occupancy to the commissioner prior to serving students in said facility.
(7) Chief executive
officer--A person (or persons) directly responsible to the governing body of
the charter holder for supervising one or more central administration officers,
campus administration officers, and/or business managers.
(8) Determination of academic
accountability--The process used to determine the applicable year's
accountability ratings to measure the academic performance of a charter.
(A) For the purposes of this chapter, the
term "academically acceptable" for the following rating years shall mean:
(i) 2004-2011: the category of acceptable
performance shall include a rating of Exemplary, Recognized, Academically
Acceptable, and alternative education accountability (AEA): Academically
Acceptable;
(ii) 2013-2016: the
category of acceptable performance shall include a rating of Met Standard and
Met Alternative Standard; and
(iii)
2017 and beyond: the category of acceptable performance shall include a grade
of A, B, or C, or as otherwise indicated in the applicable year's academic
accountability manual.
(B) For purposes of determination, an
academic performance rating during the 2011-2012 school year will not be
considered.
(C) For the purposes of
this chapter, the term "academically unacceptable" performance means a rating
of Academically Unacceptable, AEA: Academically Unacceptable, Improvement
Required, or Unacceptable Performance or as otherwise indicated in the
applicable year's academic accountability manual.
(D) If academic ratings are not issued for
any reason, scaled scores may be used to determine "academically acceptable"
and "academically unacceptable" performance.
(9) Determination of financial
accountability--The process used to determine the applicable year's Financial
Integrity Rating System of Texas (FIRST) rating to measure the financial
performance of a charter.
(A) For purposes of
this chapter, a satisfactory rating shall mean: Superior Achievement, Above
Standard Achievement, or Standard Achievement.
(B) For the purposes of this chapter, a lower
than satisfactory financial performance rating shall mean a FIRST rating of
Substandard Achievement, Suspended: Data Integrity, or as otherwise indicated
in the applicable year's financial accountability manual.
(10) Donate--Services are donated if:
(A) given free of any charge, cost, fee,
compensation, reimbursement, remuneration, or any other thing of value or
consideration, whether direct or indirect, from the donee to the donor, or from
any other person or entity to the donor on behalf of the donee;
(B) given free of any condition, stipulation,
promise, requirement, or any other obligation, whether direct or indirect,
enforceable by the donor or by any other person or entity; and
(C) separately and clearly recorded in the
accounting, auditing, budgeting, reporting, and recordkeeping systems for the
management and operation of the charter school.
(11) Employee of a charter holder--A charter
holder employee who engages in no charter school activity, is not compensated
with public funds, and is not an officer of any charter school.
(12) Former charter holder--An entity that is
or was a charter holder, but that has ceased to operate a charter school
because its open-enrollment charter has been revoked, surrendered, abandoned,
or denied renewal, or because all programs have been ordered closed under TEC,
Chapter 39.
(A) A charter holder whose
authority to operate has been suspended under TEC, §12.1162, is not a
former charter holder.
(B) A
charter holder with more than one open-enrollment charter is a former charter
holder only with respect to the open-enrollment charter that authorizes a
charter school that has ceased to operate. The charter holder is not a former
charter holder with respect to an open-enrollment charter that authorizes a
charter school that continues to operate.
(C) A charter holder who was eligible for
high quality designation under §
100.1035 of this title immediately
prior to ceasing to operate that has surrendered its charter, provided that
there was no settlement agreement requiring closure or a required closure under
TEC, Chapter 39. A former charter holder that has relinquished its charter is
not subject to the prohibitions in TEC, §12.101(b), or §
100.1017 of this title (relating
to Applicant Eligibility and Form Contents).
(13) High-performing entity--An entity that
satisfies the criteria under TEC, §12.1011(a)(1), for out-of-state
operations or an entity that satisfies the criteria for TEC,
§12.1011(a)(2), for in-state operations that meets the performance
criteria for the most recent rating years available.
(14) Lease interest--The legal rights
obtained under a capital or operating lease. These include the right to occupy,
use, and enjoy the real estate given by the property owner in exchange for
rental payments or other consideration specified in the lease, together with
any associated rights that the lease confers on the tenant under the lease or
other law.
(15) Management
company--A natural person or a corporation, partnership, sole proprietor,
association, agency, or other legal entity that provides any management
services to a charter holder or charter school, except that:
(A) a charter holder and its employees may
provide management services to a charter school that is under the charter
holder's supervision and control pursuant to the open-enrollment charter, and
such charter holder is not thereby a management company;
(B) a nonprofit corporation that is exempt
from taxation under 26 United States Code (U.S.C.), §501(c)(3), may donate
management services to a charter holder, and the donor corporation is not
thereby a management company if the donee charter holder is a subsidiary
corporation controlled by the donor corporation under the articles of
incorporation and bylaws of the donee charter holder;
(C) a regional education service center
providing services to a charter school under TEC, Chapter 8, is not a
management company;
(D) the fiscal
agent of a shared services cooperative providing services to a member of the
shared services cooperative is not a management company; and
(E) a nonprofit corporation that is exempt
from taxation under 26
U.S.C., §
115, is not a management
company if it performs management services exclusively for a charter holder
that is an eligible entity under TEC, §12.101(a)(1) or (4) or
§12.152, and if:
(i) its articles of
incorporation and bylaws, and any changes thereto, must be approved by such
charter holder;
(ii) its board of
directors must be appointed by such charter holder; and
(iii) its assets become the property of such
charter holder upon dissolution.
(16) Management company breach--An action or
failure to act by a management company that is contrary to a duty owed under a
management contract, a rule adopted under TEC, Chapter 12, Subchapter D, or any
other legal obligation, and constitutes sufficient grounds for action against
the management company under TEC, §12.127 (Liability of Management
Company), and/or §
100.1157 of this title (relating
to Procedures for Prohibiting a Management Contract). Where a provision in this
subchapter uses this term, such use is for clarity and emphasis only and does
not:
(A) establish that any breach of a duty
occurred in a given case or what sanction is appropriate under the facts of
that case; or
(B) imply that any
other provision where the term is not used is not material or less important,
or that the breach of a duty imposed by the provision is not grounds for action
against the management company.
(17) Management services--Services related to
the management or operation of a charter school. Management services include
any of the following:
(A) planning,
operating, supervising, or evaluating a charter school's educational programs,
services, or facilities;
(B) making
recommendations to the governing body of a charter holder or charter school
relating to the selection of school personnel;
(C) managing a charter school's day-to-day
operations as an administrative manager;
(D) preparing a proposed budget or budget
amendments or submitting it to the governing body of a charter holder or
charter school;
(E) recommending
policies to be adopted by the governing body of a charter holder or charter
school, except that legal services provided by an attorney licensed to practice
law in this state, and public accountancy services provided by a certified
public accountant licensed to practice public accountancy services in this
state, are not management services, notwithstanding that such services may
include recommending policies to be adopted by the governing body of a charter
holder or charter school;
(F)
developing procedures or practices to implement policies adopted by the
governing body of a charter holder or charter school, except that legal
services by an attorney licensed to practice law in this state and public
accountancy services provided by a certified public accountant licensed to
practice public accountancy services in this state are not management services,
notwithstanding that such services may include developing procedures or
practices to implement policies adopted by the governing body of a charter
holder or charter school;
(G)
overseeing the implementation of policies adopted by the governing body of a
charter holder or charter school; or
(H) providing leadership for the attainment
of student performance at a charter school based on the indicators adopted
under TEC, §39.053 and §39.054, or adopted by the governing body of a
charter holder or charter school.
(18) Material charter violation--An action or
failure to act by a charter holder that is contrary to the terms of its
open-enrollment charter and constitutes sufficient grounds for action against
the charter holder under §§100.1049, 100.1045, 100.1047, and/or
100.1037 of this title (relating to Revocation and Modification of Governance
of an Open-Enrollment Charter; Intervention Based on Charter Violations;
Intervention Based on Health, Safety, or Welfare of Students; and Renewal of an
Open-Enrollment Charter).
(19)
Misuse or misapplication of funds or property--A use of state funds or public
property that is contrary to:
(A) the
open-enrollment charter under which a charter holder holds the funds or
property;
(B) an agreement under
which an employee or contractor holds the funds or property;
(C) a law, regulation, or rule that
prescribes the manner of acquisition, sale, lease, custody, or disposition of
the funds or property, including, but not limited to, violations of Local
Government Code, §§171.002-171.007 and Chapter 271, Subchapter B, and
TEC, §12.1053 and §12.1054, unless otherwise stated in the charter
contract;
(D) a limited purpose for
which the funds or property is delivered or received; or
(E) the use authorized by the governing body
of the charter holder.
(20) Officer of a charter school--A person
charged with the duties of, or acting as, a chief executive officer, a central
administration officer, a campus administration officer, or a business manager,
regardless whether the person is an employee or contractor of a charter holder,
charter school, management company, or any other person; or a volunteer working
under the direction of a charter holder, charter school, or management company.
A charter holder employee or independent contractor engaged solely in
non-charter activities for the charter holder is not an "officer of a charter
school."
(21) Open-enrollment
charter--A charter holder's authorization to operate a publicly funded charter
school consistent with TEC, §12.102 (Authority Under Charter). The terms
of an open-enrollment charter include:
(A)
the applicable contract for charter ("charter contract") between the charter
holder and the SBOE or commissioner of education;
(B) all applicable state and federal laws,
rules, and regulations;
(C) the
request for application issued by TEA to which the charter holder's application
for open-enrollment charter responds;
(D) any condition, amendment, modification,
revision, or other change to the open-enrollment charter adopted or ratified by
the SBOE or the commissioner; and
(E) to the extent they are consistent with
subparagraphs (A)-(D) of this paragraph, all statements, assurances, written
submissions, commitments, and/or representations made by the charter holder in
writing in its application for charter, attachments, or related documents or
orally during its interview with the commissioner or commissioner's designee or
orally at a public meeting of the SBOE or any of its committees.
(22) Personal property--An
interest in personal property recognized by Texas law, including:
(A) furniture, equipment, supplies, and other
goods;
(B) computer hardware and
software;
(C) contract rights,
intellectual property such as patents, and other intangible property;
(D) cash, currency, funds, bank
accounts, securities, and other investment instruments;
(E) the right to repayment of a loan,
advance, or prepayment or to the payment of other receivables; and
(F) any other form of personal property
recognized by Texas law.
(23) Property acquired, improved, or
maintained using state funds--Property for which the title, control over the
property, use of the property, or benefit from the property is obtained
directly or indirectly through expenditure of or control over state funds. This
includes property acquired, improved, or maintained through a management
company under a contract for management services, and includes the proceeds of
loans, credit, or other financing that:
(A)
is secured with state funds, or with property acquired, improved, or maintained
using state funds; or
(B) is
extended, in whole or part, based on the charter holder's control over state
funds.
(24) Real
estate--An interest, including a lease interest, in real property recognized by
Texas law or in improvements such as buildings, fixtures, utilities,
landscaping, construction in progress, or other improvements.
(25) Related party transaction--Includes a
transaction between the charter holder or charter school and:
(A) a person who is:
(i) a current or former (within the last five
years) board member for the charter holder or the charter school;
(ii) a current or former (within the last
five years) administrator for the charter holder or the charter school;
(iii) a current officer of a
charter school;
(iv) a person who
is related to a person described in clauses (i)-(iii) of this subparagraph
within the third degree of consanguinity or second degree of affinity, as
determined under Texas Government Code, Chapter 573;
(v) a person who within the last five years
ending on the date of the transaction was in a position to exercise substantial
influence over the organization including any "disqualified person" as defined
under Internal Revenue Code (IRC), §4958, or Treasury Regulation
26 CFR §
53.4958-3;
(vi) a family member of a person described in
clause (v) of this subparagraph, which includes:
(I) the person's spouse or ancestor; or
(II) the person's children,
grandchildren, great grandchildren, siblings, half-siblings, and their spouses;
(vii) any person
described in clause (v) or (vi) of this subparagraph with respect to an
organization described in IRC, §509(a)(3), that was organized and operated
exclusively for the benefit of, to perform the functions of, or to carry out
the purposes of the charter holder; or
(viii) any person who is a donor or donor
advisor;
(B) an entity
that:
(i) is related to the charter holder;
(ii) is participating in a joint
venture with the charter holder;
(iii) is jointly governed with the charter
holder;
(iv) has a current or
former (within last five years) board member, administrator, or officer who is
either:
(I) a current board member,
administrator or officer of the charter holder or charter school; or
(II) related to within the third degree of
consanguinity or second degree of affinity of a person described in clause (i)
of this subparagraph as determined under Texas Government Code, Chapter 573;
(v) is more than 35%
controlled by individuals described in subparagraph (A)(v) and (vi) of this
paragraph, including:
(I) a corporation in
which such persons own more than 35% of the total combined voting
power;
(II) a partnership in which
such persons own more than 35% of the profits interest;
(III) a trust or estate in which such persons
own more than 35% of the beneficial interest; or
(IV) for purposes of this subsection, an
entity for which the constructive ownership rules of IRC, §4946(a)(3) and
(a)(4), apply; or
(vi)
any entity that is described in IRC, §509(a)(3), that:
(I) is organized and operated exclusively for
the benefit of, to perform the functions of, or to carry out the purposes of
the charter holder; and
(II) meets
the control test in clause (v) of this subparagraph;
(C) a donor-advised fund if a
donor (or any person appointed or designated by such donor) has, or reasonably
expects to have, advisory privileges with respect to the distribution or
investment of amounts held in such fund or account by reason of the donor's
status as a donor;
(D) any person
or entity associated with the section regarding sponsoring entity;
(E) a lender providing secured or unsecured
debt to the charter holder or charter school other than bonds or tax-exempt
facility financing, for any transaction other than the loan or note agreement;
or
(F) a major donor to the charter
holder or charter school under a written grant agreement or other contract, for
any transaction with the donor other than the written grant
agreement.
(26) Shared
services cooperative or shared services arrangement--A contractual arrangement
among charter holders or between a charter holder(s) and other Texas
governmental entities, through which one member of the cooperative, acting as
the fiscal and administrative agent for the other members, provides educational
services, operational services and/or management services to member charter
holders under a written contract executed by each member. A contract
establishing a shared services cooperative must at a minimum:
(A) establish clear procedures for
administering services under the direction and control of the cooperative and
for assigning responsibility for all costs and liabilities associated with
services provided under the contract;
(B) establish the duties, responsibilities,
and accountability of the fiscal agent and of each member for services provided
under the contract;
(C) establish
clear procedures for withdrawal of a member from the agreement and for the
dissolution and winding up of the affairs of the cooperative; and
(D) be approved in writing by the
commissioner before any services are provided.
(27) State funds--Funds received by the
charter holder under TEC, §12.106, and any grant or discretionary funds
received through or administered by TEA, including all federal funds. The rules
in this division apply to property acquired, improved, or maintained with
federal funds to the extent that such application is consistent with applicable
federal law or regulations.
(28)
State funds received before September 1, 2001--State funds are received before
September 1, 2001, if the Texas Comptroller of Public Accounts issued a warrant
for such funds before that date, or if an electronic transfer of such funds was
made before that date.
(29) State
funds received on or after September 1, 2001--State funds are received on or
after September 1, 2001, if the Texas Comptroller of Public Accounts issues a
warrant for such funds on or after that date, or if an electronic transfer of
such funds is made on or after that date.
