Current through Reg. 49, No. 38; September 20, 2024
The following words and terms, when used in this
subchapter, have the following meaning, unless the context clearly indicates
otherwise.
(1) Charter holder,
governing body of a charter holder, and governing body of a charter school--The
definitions of these terms are assigned in Texas Education Code (TEC),
§12.1012.
(2) 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operate a charter school because its open-enrollment charter has been revoked,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.
(3) Charter school--A Texas public school
operated by a charter holder under an open-enrollment charter 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) An "employee of a
charter holder," as used in this subchapter, means a charter holder employee
who engages in no charter school activity and is not an officer of any charter
school.
(C) 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 (D) of this
paragraph.
(D) 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 50 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 §
100.1033(b)(10)
of this title (relating to Charter Amendment).
(E) 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 (COO) to the commissioner
prior to serving students in said facility.
(4) 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.
(5) 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.
(6) 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.
(7) 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.
(8) State funds--Funds received by the
charter holder under TEC, §12.106, and any grant or discretionary funds
received through or administered by the 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.
(9)
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.
(10) 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.
(11) 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.
(12) 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;
Local Government Code, 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.
(13) 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 its administrative manager;
(D) preparing a proposed budget 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.
(14) 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 (USC), §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 USC, §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 TEC, §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.
(15) 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 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 the
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,
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.
(16) 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."
(17) 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.
(18) 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 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.
(19) 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.
(20) Business
manager--A person charged with managing the finances of a charter holder or
charter school.
(21)
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.
(22) 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 §
100.1021
of this title (relating to Revocation and Modification of Governance of an
Open-Enrollment Charter), §
100.1023
of this title (relating to Intervention Based on Charter Violations), §
100.1025
of this title (relating to Intervention Based on Health, Safety, or Welfare of
Students), and/or §
100.1031
of this title (relating to Renewal of an Open-Enrollment Charter).
(23) 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 §
100.1155
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.
(24) Shared
services cooperative--A contractual arrangement among charter holders through
which one member of the cooperative, acting as the fiscal and administrative
agent for the other members, provides educational 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;
(D) if the cooperative may provide special
education services, comply with TEC, §29.007; and
(E) be approved in writing by the
commissioner before any services are provided.
(25) 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.
(26) 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.
(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.
(27) 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.
