Texas Administrative Code
Title 19 - EDUCATION
Part 2 - TEXAS EDUCATION AGENCY
Chapter 100 - CHARTERS
Subchapter AA - COMMISSIONER'S RULES CONCERNING OPEN-ENROLLMENT CHARTER SCHOOLS
Division 3 - COMMISSIONER ACTION, PERFORMANCE MONITORING, AND INTERVENTION
Section 100.1051 - Standards to Revoke and Modify the Governance of an Open-Enrollment Charter
Universal Citation: 19 TX Admin Code § 100.1051
Current through Reg. 50, No. 13; March 28, 2025
(a) Criteria for taking action. The action the commissioner of education takes under § 100.1049(a) of this title (relating to Revocation and Modification of Governance of an Open-Enrollment Charter) to either revoke or modify the governance of a charter shall be based on the best interest of the charter school's students as it relates to the violation charged in the notice, the severity of the violation, and any previous violation the school has committed.
(1) These criteria are not listed in order of
importance. Rather, the commissioner shall assign weight to each criterion as
indicated by the facts of the case presented. For example, serious or
persistent charter violations may warrant revocation or non-renewal even if the
violations benefited or had neutral effect on the students enrolled in the
charter school. The state's interest in legal compliance is sufficient basis
for action.
(2) The "best interest
of the charter school's students" is not a decisional criterion independent of
the violation charged in the notice. Rather, the commissioner shall consider
the best interests of students only as this criterion relates to the violation
charged in the notice. For example, evidence of serious and persistent
violations in one area of performance may not be offset or excused by evidence
of benefit to students in an area of performance that is unrelated to the
violation charged in the notice.
(b) Minimum academic performance required. Continuation of an open-enrollment charter is contingent on satisfactory academic performance as measured by the academic accountability ratings and accreditation statuses assigned under the Texas Education Code (TEC), Chapter 39, as well as any supplemental accountability requirements in the open-enrollment charter pursuant to TEC, § 12.111(a)(3) and (4). Such supplemental requirements are in addition to, and may not supplant, satisfactory academic performance as measured by the ratings assigned under TEC, Chapter 39.
(1) Consideration of campus ratings. The
commissioner shall revoke an open-enrollment charter of a charter holder if all
of the campuses operated under that charter have been closed under TEC, Chapter
39.
(2) Determination of academic
performance. For purposes of this subsection, required minimum academic
performance shall be determined as follows.
(A) An "unsatisfactory rating" shall mean an
academic accountability rating that is " academically unacceptable" as defined
in §
100.1001(8) of
this title (relating to Definitions). For any school year, if the Texas
Education Agency (TEA) assigns no district-level ratings to open-enrollment
charter schools generally, but does assign campus-level ratings in that year,
then unsatisfactory ratings for a majority of the campuses operated by the
charter holder in such year shall constitute an unsatisfactory rating for the
charter holder at the "district" level.
(B) A "satisfactory rating" shall mean an
academic accountability rating that is "academically acceptable" as defined in
§
100.1001(8) of
this title.
(C) Ratings are
"consecutive" if they are not separated by a rating period in which TEA
assigned accountability ratings to charter schools. For example, TEA did not
assign academic accountability ratings to charter schools for the 2011-2012
school year. Thus, the ratings for the 2010-2011 and 2012-2013 school years are
consecutive both for charter holders registered under the standard
accountability system as well as charter holders registered under the
alternative education accountability (AEA) system.
(D) If the performance of an applicant for
renewal under §
100.1037 of this title (relating
to Renewal of an Open-Enrollment Charter) cannot be determined because the
applicant's charter school has not received accountability ratings and/or
accreditation statuses for a sufficient number of years to support a judgment
on its student performance:
(i) the
commissioner shall make a decision on student performance under the
discretionary review process under §
100.1037(d) of
this title; and
(ii) the
commissioner's review under this subparagraph shall include the charter's
annual evaluation under the Charter School Performance Framework Manual
established under TEC, §
12.1181, and the
criteria described in §
100.1039 of this title (relating
to Standards for Discretionary Renewal).
(E) If the performance of a charter holder
cannot be determined because the small numbers of students or the grade levels
served by the program prevented, limited, or significantly impacted the
application of TEA's standard ratings and/or accreditation criteria, then the
commissioner may evaluate substitute data chosen by the commissioner in taking
action under this section.
(i) Based on
evaluation under this subparagraph, the commissioner shall determine whether
the applicant has demonstrated a history of unsatisfactory academic
performance. Any appeal under §
100.1049 of this title of a
determination under this clause may include the question whether the campus has
had unsatisfactory academic performance.
(ii) Regardless of whether the campus has
satisfactory student performance, the commissioner may modify the
open-enrollment charter to require the charter holder to serve additional
students or grade levels that will cause the campus to receive academic ratings
and/or statuses in the future.
(F) If the performance of a charter holder
cannot be determined because a high proportion of students served are in
prekindergarten-Grade 2 or another grade for which an assessment instrument is
not administered under TEC, §
39.023, then the
commissioner may evaluate the performance of the charter
holder.
(3) Finality of
ratings.
(A) Any appeal to a specific rating
must be brought using the appeals procedures in the relevant accountability
manual, which includes AEA, adopted under Chapter 97, Subchapter AA, of this
title (relating to Accountability and Performance Monitoring).
(B) Any challenge to a TEA rule, ratings
standard, or process must be brought using the procedures outlined in Texas
Government Code, Chapter 2001, for requesting agency rulemaking or challenging
agency rules.
(c) Minimum financial performance required. Continuation of an open-enrollment charter is contingent on the charter holder satisfying generally accepted accounting standards of fiscal management.
(1) Determination. For purposes of this
subsection, generally accepted standards of fiscal management shall be
determined as follows.
(A) Any of the
following constitutes failure to comply with generally accepted standards of
fiscal management.
(i) Payment is made in
excess of bonafide compensation agreements. The payment of compensation to an
individual in excess of the fair market value of the services provided is a
serious unsatisfactory financial performance. For purposes of this subsection,
the fair market value of the services rendered shall be based on the
individual's education, experience, prior salary history, the job duties
actually performed, and what a typical person with similar skills, experience,
and job duties would earn.
(ii)
Rental or purchase of property is in excess of its fair market value.
(iii) The charter school received
a significant overallocation from the Foundation School Program based on data
reported by the charter holder.
(iv) The charter school becomes imminently
insolvent as determined in subparagraph (C) of this paragraph.
(v) The charter school's financial auditor
issues an adverse opinion regarding the school's financial statements or the
school's financial auditor disclaims an opinion on the financial statements,
and the issue resulting in the adverse or disclaimed opinion involves a
significant amount of financial resources that were not properly documented or
a material weakness that led to the misallocation of financial
resources.
(vi) The charter holder
exhibits other instances of fiscal mismanagement, including, but not limited
to, the loss of financial records or a material non-compliance with §
109.41 of this title (relating to
Financial Accountability System Resource Guide) or related supplement resulting
in a significant wasting of financial resources.
(vii) A final investigative report issued by
TEA finds material noncompliance with the standards of this subsection.
(viii) The annual audit report
required by TEC, §
44.008, is more than
180 days delinquent.
(ix) The
charter holder's property is subject to a lien, levy, or other garnishment and
that lien, levy, or other garnishment is not removed within 30 days.
(x) The charter holder is subject to a
warrant hold and that warrant hold is not removed within 30 days.
(xi) The charter holder loses its eligibility
to participate in child nutrition programs for a period of more than 30
days.
(xii) The charter holder has
received an audit containing an adverse or disclaimed opinion, and based on the
opinion is assigned a financial accountability rating that is less than
satisfactory.
(B) Charter
holder financial performance will be evaluated in accordance with the following
standards.
(i) Step transactions. The
commissioner may view the transaction as a whole and may disregard any
non-substantive intervening transaction taken to achieve the final
results.
(ii) Arm's length
transaction. A transaction that is described in subparagraph (A) of this
paragraph that is the result of an arm's length transaction between completely
unrelated parties is only a serious unsatisfactory financial performance if the
transaction resulted in a significant wasting of financial
resources.
(C) For
purposes of this section, "imminently insolvent" means that the charter holder
meets one of the following standards:
(i) has
incurred liabilities in excess of net assets;
(ii) is unable to pay its debts or financial
obligations within 90 days of the date they become due;
(iii) has declared bankruptcy;
(iv) has otherwise sought the protection of
bankruptcy laws;
(v) had a lien or
warrant hold placed against it by the Internal Revenue Service;
(vi) had a warrant hold placed against it by
the Teacher Retirement System; or
(vii) has a judgment lien placed against
it.
(2)
Finality of audits and reports.
(A) Any
review of a specific audited financial statement or investigative report must
be brought using the procedures provided in the notice of the statement or
report.
(B) Any challenge to a TEA
rule, financial standard, or audit procedure must be brought using the
procedures outlined in Texas Government Code, Chapter 2001, for requesting
agency rulemaking or challenging agency rules.
(d) Minimum compliance performance required. Continuation of an open-enrollment charter is contingent on the charter holder's compliance with TEC, Chapter 12, Subchapter D; federal and state laws and rules; financial accountability standards, including student attendance accounting and grant requirements; and data integrity standards as demonstrated by monitoring reports under TEC, § 7.028, final investigative reports issued by TEA, and other evidence.
(1) Standard of required performance. The
open-enrollment charter authorizing a charter school that has unsatisfactory
compliance performance for three consecutive school years will be
revoked.
(2) Determination of
performance. For purposes of this subsection, required minimum compliance
performance shall be determined as follows. A charter holder's compliance with
TEC, Chapter 12, Subchapter D; federal and state laws and rules; financial
accountability standards, including student attendance accounting and grant
requirements; or data integrity standards may be determined by applying the
applicable standards to the facts as found by TEA monitoring reports under TEC,
§
7.028, or final
investigative reports issued by TEA. Such reports establish non-compliance if
the facts found therein are not in compliance with the standards set forth in
this subsection. Other evidence may be considered.
(3) Finality of compliance reports.
(A) Any review of a specific monitoring
report or investigative report must be brought using the procedures described
in the notice of the report.
(B)
Any challenge to a TEA rule or compliance standard must be brought using the
procedures outlined in Texas Government Code, Chapter 2001, for requesting
agency rulemaking or challenging agency rules.
(e) Minimum health and safety performance required. Continuation of an open-enrollment charter is contingent on the charter holder protecting the health, safety, and welfare of the students enrolled at the school, as determined by the commissioner under § 100.1047 of this title (relating to Intervention Based on Health, Safety, or Welfare of Students) and this subsection or by an official report issued by a federal, state, or local authority with jurisdiction to issue the report.
(1) Standard of required performance. The
open-enrollment charter authorizing a charter school that fails to protect the
health, safety, or welfare of the students enrolled at its school while on
school property, while at school-related events, or at any time while under the
supervision of school personnel shall be revoked effective
immediately.
(2) Determination of
performance. For purposes of this subsection, required minimum health and
safety performance shall be determined as follows.
(A) A final investigative report issued by
TEA is admissible to prove whether the charter holder failed to protect the
health, safety, or welfare of the students enrolled at its school.
(B) An official report issued by a federal,
state, or local authority acting within its jurisdiction, as well as hearsay
evidence and telephone testimony offered by officials from such authority, are
admissible to prove whether the charter holder failed to protect the health,
safety, or welfare of the students enrolled at its school.
(C) Documents and testimony considered by the
commissioner in making a determination under §
100.1047 of this title are
admissible to prove whether the charter holder failed to protect the health,
safety, or welfare of the students enrolled at its school.
(3) Finality of health and safety reports.
(A) Any appeal to a specific official report
issued by a federal, state, or local authority acting within its jurisdiction
must be brought using the procedures provided in law for the review of such
findings.
(B) Any challenge to a
TEA rule or compliance standard must be brought using the procedures outlined
in Texas Government Code, Chapter 2001, for requesting agency rulemaking or
challenging agency rules.
(f) Minimum charter contract performance required. Continuation of an open-enrollment charter is contingent on the charter holder's implementation of and compliance with the terms of its open-enrollment charter as defined by § 100.1001(21) of this title.
(1) Standard of required
performance. The open-enrollment charter authorizing a charter school that
commits a material violation of its open-enrollment charter shall be
revoked.
(2) Determination of
performance. For purposes of this subsection, required minimum charter
performance shall be determined as follows.
(A) A charter holder's compliance with its
open-enrollment charter may be determined by applying the charter terms to the
facts as found by TEA monitoring reports under TEC, §
7.028, or final
investigative reports issued by TEA. Such reports establish non-compliance if
the facts found therein are not in compliance with these terms. Other evidence
may be considered.
(B) A violation
of the contract for charter, request for applications (RFA), or other document
approved by the State Board of Education (SBOE) or of a condition, amendment,
modification, or revision of a charter approved by the commissioner is material
if it directly violates the purpose of the contract, the RFA, or other
documents approved by the SBOE or a condition, amendment, modification, or
revision of the contract.
(C) An
open-enrollment charter as defined by §
100.1001(21) of
this title includes all applicable state and federal laws, rules, and
regulations. A violation of such laws, rules, or regulations may be considered
both under this subsection and under subsections (b)-(e) of this section, as
appropriate.
(3) Finality
of charter violation reports. Any review of a specific investigative report
must be brought using the procedures set forth in the notice of the
report.
(g) Performance frameworks. Continuation of an open-enrollment charter is contingent upon the charter holder's satisfaction of standards set forth in the Charter School Performance Framework Manual established under TEC, § 12.1181.
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