copyright, texas charter schools association 2014 training texas charter boards for compliance and...

Copyright, Texas Charter Schools Association 2014

Training Texas Charter Boards for Compliance and High Performance

Charter School SummitJune 16-17, 2014


Classes of Charter SchoolsTexas Education Code, Chapter 12

• Subchapter A: General Provisions

• Subchapter B: Home-Rule School District Charter School board appoints 15-member charter commission if

petition from 5% registered voters or resolution by 2/3 board Commissioner and voter approval required

• Subchapter C: School District Campus Charters Conversion campus charter schools External campus charters Campus program charters

• Subchapter D: Open-Enrollment Charter Schools Approved by Commissioner unless vetoed by State Board of

Education Subject to statutory cap

• Subchapter E: College or University Charters (Public)


In 2013, there were 178,826 charter school students attending 552 charter school campuses operated by 202 charters.

Charter school enrollment growth has averaged 15% each year for the last 5 years.

Subchapter D. Charter Schools after the 83rd Legislature

Source: AEIS and TAPR data, TEA @ http://www.tea.state.tx.us/perfreport/


Where are Subchapter D Charter Schools?

Dallas 50,023Houston 43,631Rio Grande

Valley 15,400

San Antonio 14,169Austin 12,162Fort Worth 4,416El Paso 3,867

2013 Charter School Student Enrollment by

Geographic Region

Copyright, Texas Charter Schools Association 2014Copyright, Texas Charter Schools Association 2012

School Law Comparison Similarities

Open Enrollment Charter SchoolsAcademic Accountability

• State System• Federal NCLB

Financial Accountability – Charter FIRSTTeacher Retirement SystemImmunityOpen MeetingsOpen RecordsMandatory Board TrainingState Curriculum & GraduationPEIMS ReportingCriminal History Background ChecksConflicts of InterestNepotism

Traditional School DistrictsAcademic Accountability

• State System• Federal NCLB

Financial Accountability – School FIRSTTeacher Retirement SystemImmunityOpen MeetingsOpen RecordsMandatory Board TrainingState Curriculum & GraduationPEIMS ReportingCriminal History Background ChecksConflicts of InterestNepotism


Open Enrollment Charter Schools

Statutory CapEmployment “At-Will”No Mandatory Salary ScaleExclusions for DisciplineNo authority to levy property taxesNot eligible for certain state funding opportunitiesServices Contracts pre-approved by TEATwo linesState and Federal Tax Exempt Status Compliance Some Properties Tax Exempt

Traditional School Districts

Approximately 1034 DistrictsEmployment ContractsMandatory State Salary ScaleSpecial Placements for DisciplineAuthority to levy property taxesEligible for more state funding opportunitiestwo linesServices Contracts Approved Solely by School BoardAll Properties Tax Exempt

School Law Comparison Differences

Not Required to hire SBEC Certified TeachersRequired to hire SBEC Certified Teachers


Open Enrollment Charter Schools

AppointedMajority = “qualified voters”Term Defined in Corporate BylawsRemoval Defined in Bylaws No Compensation Policymaking

Oversees Management

Traditional School Districts

Elected All = “qualified voters”Term Defined in State Law (3 or 4 years)Removal Defined in State Law No Compensation Policymaking

Oversees Management

Board Membership & Roles:Similarities & Differences


Charter Board Members:Fiduciary Duties

Duty of LoyaltyDuty of Care

Duty of ObedienceOn request of the Commissioner, the Attorney General

may bring suit against a member of the governmental body of an open enrollment charter school for breach of fiduciary duty, including misappropriation of funds. The AG may bring suit for damages, injunctive relief, and any other equitable

remedy.Tex. Educ. Code § 12.122


Charter Board Members:Compensation

General Rule: A person who serves on the governing board of a charter holder may not receive compensation or remuneration:

• Salaries, bonuses, benefits, or other compensation pursuant to an employment relationship

• Reimbursement for personal expenses• Credit• Personal Use of Property• In-Kind Transfers of Property• All other forms of compensation or remuneration.

Exception: Satisfactory student performance for 2 out of last 3 years


Charter Board Members:Criminal History Restrictions

A person may not serve on a charter school board if the person has been convicted of one of the following offenses:

Misdemeanor involving moral turpitudeAny felony

An offense listed in Tex. Educ. Code § 37.004(a)An offense listed in Code of Criminal Procedure, Article

62.01(5)


Charter Board Members:Affiliation with Management Company

A person may not serve if the person has a substantial interest in a management company that has a contract with the charter holder or a charter school:

• Has controlling interest in the company• Own more than 10% of voting interest• Has a direct or indirect participating interests in

more than 10% of the profits, proceeds or capital gains

• Member of the board or other governmental body of the management company

• Serves as an elected officer of the company• Is an employee of the company


Charter Board Members:Nepotism

Persons related to charter school board members (or superintendents with final hiring authority) within a prohibited degree may not be employed by the charter school unless one of the following exception applies:

Grandfather Exception (employed on Sept 1, 2013)Continuous Employment Exception

Certain Positions Exception:• Bus Drivers in small counties• Personal Attendants• Substitute Teachers


“Prohibited Degree”


• If a local public official has a substantial interest in a business entity or real property, the official must file an affidavit and abstain from further participation on a matter pertaining to the entity or property.

• A local public official is considered to have a substantial interest if a person related to the official within three degrees (by blood or marriage) has a substantial interest.

Charter Board Members:Direct Conflict Interest


“Local Public Official”

• A member of the governing body of a charter holder;• A member of the governing body of a charter school;• An officer of a charter school:

– Chief executive officer– Campus administrative officer– Business manager– Volunteer working under the direction of charter holder,

charter school or management company


“Substantial Interest”

• An official has a substantial interest in a business entity if the official:– Owns 10% or more of the voting stock or shares of the

entity;– Owns either 10% or more or $15,000 or more of the fair

market value of the entity; or– Funds received by the person from the business entity

exceed 10% of the person’s gross income for the previous year.

• An official has a substantial interest in real estate if the official:– Has an equitable or legal ownership interest with a fair

market value of $2,500 or more.


“File an Affidavit and Abstain”

An affidavit and abstention are required on a matter if:– In the case of a business entity, the board’s action on

the matter will have a special economic effect on the business entity that is distinguishable from the effect on the public.

– In the case of real property, it is reasonably foreseeable that the boards action on the matter will have a special economic effect on the value of the property, distinguishable from its effect on the public.

File any required affidavit with the official record keeper of the charter holder.

An official is not required to abstain if a majority is likewise required to abstain because of similar interests on the same official action.


Schematic:Direct Conflict of Interest

Vendor

Charter School

Board Member


Charter Board Members:Indirect Conflict of Interest

A local government officer must file a CIS form with respect to a vendor of the charter school if:

– The vendor enters into a contract with the charter school or the charter school is considering entering a contract with the vendor

and– The vendor:

• has a relationship with the officer that results in the officer or the officer’s family member receiving taxable income that exceeds $2,500 in the 12 months preceding, or

• Has given the officer or the officer’s family member one or more gifts that have aggregate value of over $250 in 12 months preceding.


Definitions

Local Government Officer:– member of the charter school board– chief executive officer of the charter school– any other employee designated by the board

Officer’s Family Member: a person related in the first degree by blood or marriage

Taxable Income: does not include investment incomeGifts: does not include a gift from a family member, a political

contribution, or food, lodging, transportation, or entertain accepted as a guest.

Contract: written agreement for the sale or purchase of real property, goods, or services


Reporting

• Deadline - The officer must file the CIQ form within 7 days of becoming aware that one should be filed.

• Offense – The officer commits a Class C misdemeanor if he or she knowingly violates the reporting rule….unless the person files the CIQ form not later than 7 days after the person receives notice from the charter school of the alleged violation.

• Vendor’s Responsibility – Must complete a CIS form for each contract it has with the charter school

• Web Posting – CIQ and CIS forms must be posted of the charter school website, if one exists.


Vendor(CIQ Form Required)

Board Member(CIS Form Required)

Charter School

Income exceeding $2,500 or gift exceeding $250

Enter into a contract or considering entering into a contract

Schematic:Indirect Conflict of Interest


Policy Development: Comprehensive

Sound policymaking addresses all issues critical for effective school operations

Financial OperationsGovernance & OrganizationGeneral School Operations

StudentsOpen GovernmentHuman Resources


Policy Development: Making it Work

Policymaking conveys the board’s intent without unduly limiting administrative discretion or professional judgment.

Charter policy defines what the board intends, or requires, leaving the “how will” of the

implementation to the school administrators

Board of Directors:Sets the Expectation

Administration:Fulfills the Expectation


TCSA Model Board Policies:Two Parts

Legal Authority: Charter Board Policy:


• Be Engaged as an Individual Member• Be United as a Board• Set a Strategic Vision• Maintain Awareness of Charter Issues• Be an Advocate for Your School• Accept No Excuses

Maintain Training Hours

Create and Sustain Local Policy Framework

File Annual Governance Reports

File/Post Conflict of InterestStatements

Make sure names of boardmembers appear on website

Compelling High Performance


TCSA’s Vision StatementA high quality education for every student in Texas


Contact Us!

Texas Charter Schools Association700 Lavaca StreetSuite 930Austin, Texas 78701

Denise Nance Pierce,General Counsel

[email protected]

Lindsey Jones Gordon,Director of Legal and

Policy [email protected]

ph. 512.584.8272fax 512.584.8492www.txcharterschools.org

mailto:[email protected]




http://www.txcharterschools.org/

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