Training Texas Charter Boards for
Compliance and High Performance
Charter School Summit
June 16-17, 2014
Copyright, Texas Charter Schools Association 2014
Classes of Charter Schools
Texas Education Code, Chapter 12
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Subchapter A: General Provisions
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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
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Subchapter C: School District Campus Charters
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Subchapter D: Open-Enrollment Charter Schools
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Conversion campus charter schools
External campus charters
Campus program charters
Approved by Commissioner unless vetoed by State Board of Education
Subject to statutory cap
Subchapter E: College or University Charters (Public)
Copyright, Texas Charter Schools Association 2014
Subchapter D. Charter Schools
after the 83rd Legislature
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.
Source: AEIS and TAPR data, TEA @
http://www.tea.state.tx.us/perfreport/
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Where are Subchapter D
Charter Schools?
2013 Charter School
Student Enrollment by
Geographic Region
Copyright, Texas Charter Schools Association 2014
Dallas
50,023
Houston
43,631
Rio Grande Valley
15,400
San Antonio
14,169
Austin
12,162
Fort Worth
4,416
El Paso
3,867
School Law
Comparison Similarities
Open Enrollment Charter Schools
Traditional School Districts
Academic Accountability
Academic Accountability
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State System
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State System
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Federal NCLB
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Federal NCLB
Financial Accountability – Charter FIRST
Financial Accountability – School FIRST
Teacher Retirement System
Teacher Retirement System
Immunity
Immunity
Open Meetings
Open Meetings
Open Records
Open Records
Mandatory Board Training
Mandatory Board Training
State Curriculum & Graduation
State Curriculum & Graduation
PEIMS Reporting
PEIMS Reporting
Criminal History Background Checks
Criminal History Background Checks
Conflicts of Interest
Conflicts of Interest
Nepotism
Nepotism
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2014
School Law
Comparison Differences
Open Enrollment Charter Schools
Traditional School Districts
Statutory Cap
Approximately 1034 Districts
Employment “At-Will”
Employment Contracts
No Mandatory Salary Scale
Mandatory State Salary Scale
Exclusions for Discipline
Special Placements for Discipline
No authority to levy property taxes
Authority to levy property taxes
Not eligible for certain state
funding opportunities
Eligible for more state funding opportunities
two lines
Services Contracts pre-approved by TEA
Two lines
Services Contracts Approved Solely by School
Board
State and Federal Tax Exempt
Status Compliance
All Properties Tax Exempt
Some Properties Tax Exempt
Not Required to hire SBEC Certified Teachers
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2014
Required to hire SBEC Certified Teachers
Board Membership & Roles:
Similarities & Differences
Open Enrollment Charter Schools
Traditional School Districts
Appointed
Elected
Majority = “qualified voters”
All = “qualified voters”
Term Defined in Corporate Bylaws
Term Defined in State Law (3 or 4 years)
Removal Defined in Bylaws
Removal Defined in State Law
No Compensation
No Compensation
Policymaking
Policymaking
Oversees Management
Oversees Management
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2014
Charter Board Members:
Fiduciary Duties
Duty of Loyalty
Duty of Care
Duty of Obedience
On 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
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2014
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
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2014
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 turpitude
Any felony
An offense listed in Tex. Educ. Code § 37.004(a)
An offense listed in Code of Criminal Procedure, Article 62.01(5)
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2014
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:
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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
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2014
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:
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Bus Drivers in small counties
Personal Attendants
Substitute Teachers
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2014
“Prohibited Degree”
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Charter Board Members:
Direct Conflict Interest
• 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.
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“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
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“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.
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“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.
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Schematic:
Direct Conflict of Interest
Board Member
Vendor
Charter
School
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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.
Copyright, Texas Charter Schools Association 2014
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 income
Gifts: 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
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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.
Copyright, Texas Charter Schools Association 2014
Schematic:
Indirect Conflict of Interest
Board Member
Income exceeding $2,500 or
gift exceeding $250
(CIS Form Required)
Vendor
(CIQ Form Required)
Charter
School
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Enter into a contract or
considering entering into a
contract
Policy Development: Comprehensive
Sound policymaking addresses all issues critical
for effective school operations
Financial Operations
Governance & Organization
General School Operations
Students
Open Government
Human Resources
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2014
Policy Development:
Making it Work
Policymaking conveys the board’s intent without unduly limiting
administrative discretion or professional judgment.
Board of Directors:
Sets the Expectation
Administration:
Fulfills the Expectation
Charter policy defines what the board intends, or requires,
leaving the “how will” of the implementation to the school
administrators
Copyright, Texas Charter Schools Association 2012
2014
TCSA Model Board Policies:
Two Parts
Legal Authority:
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2014
Charter Board
Policy:
Compelling High Performance
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Be Engaged as an Individual Member
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Be United as a Board
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Set a Strategic Vision
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Maintain Awareness of Charter Issues
Maintain Training Hours
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Be an Advocate for Your School
Create and Sustain Local Policy Framework
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Accept No Excuses
File Annual Governance Reports
File/Post Conflict of Interest
Statements
Make sure names of board
members appear on website
Copyright, Texas Charter Schools Association 2014
TCSA’s Vision Statement
A high quality education for every student in Texas
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Contact Us!
Texas Charter Schools
Association
700 Lavaca Street
Suite 930
Austin, Texas 78701
Denise Nance Pierce,
General Counsel
dpierce@txcharterschools.org
Lindsey Jones Gordon,
Director of Legal and
Policy Services
lgordon@txcharterschools.org
Copyright, Texas Charter Schools Association 2014
ph. 512.584.8272
fax 512.584.8492
www.txcharterschools.org