1. Copyright, Texas Charter Schools Association 2014 Training Texas Charter Boards for Compliance and High Performance Charter School Summit June 16-17, 2014

2. Copyright, Texas Charter Schools Association 2014 Classes of Charter Schools Texas 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)

3. Copyright, Texas Charter Schools Association 2014 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 83 rd Legislature Source: AEIS and TAPR data, TEA @ http://www.tea.state.tx.us/perfreport/

4. Copyright, Texas Charter Schools Association 2014 Where are Subchapter D Charter Schools? Dallas50,023 Houston43,631 Rio Grande Valley15,400 San Antonio14,169 Austin12,162 Fort Worth4,416 El Paso3,867 2013 Charter School Student Enrollment by Geographic Region

5. Copyright, Texas Charter Schools Association 2014Copyright, Texas Charter Schools Association 2012 School Law Comparison Similarities Open Enrollment Charter Schools Academic Accountability State System Federal NCLB Financial Accountability – Charter FIRST Teacher Retirement System Immunity Open Meetings Open Records Mandatory Board Training State Curriculum & Graduation PEIMS Reporting Criminal History Background Checks Conflicts of Interest Nepotism Traditional School Districts Academic Accountability State System Federal NCLB Financial Accountability – School FIRST Teacher Retirement System Immunity Open Meetings Open Records Mandatory Board Training State Curriculum & Graduation PEIMS Reporting Criminal History Background Checks Conflicts of Interest Nepotism

6. Copyright, Texas Charter Schools Association 2014Copyright, Texas Charter Schools Association 2013 Open Enrollment Charter Schools Statutory Cap Employment “At-Will” No Mandatory Salary Scale Exclusions for Discipline No authority to levy property taxes Not eligible for certain state funding opportunities Services Contracts pre-approved by TEA Two lines State and Federal Tax Exempt Status Compliance Some Properties Tax Exempt Traditional School Districts Approximately 1034 Districts Employment Contracts Mandatory State Salary Scale Special Placements for Discipline Authority to levy property taxes Eligible for more state funding opportunities two lines Services Contracts Approved Solely by School Board All Properties Tax Exempt School Law Comparison Differences Not Required to hire SBEC Certified TeachersRequired to hire SBEC Certified Teachers

7. Copyright, Texas Charter Schools Association 2014Copyright, Texas Charter Schools Association 2013 Open Enrollment Charter Schools Appointed Majority = “qualified voters” Term Defined in Corporate Bylaws Removal 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

8. Copyright, Texas Charter Schools Association 2014Copyright, Texas Charter Schools Association 2013 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

9. Copyright, Texas Charter Schools Association 2014Copyright, Texas Charter Schools Association 2013 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

10. Copyright, Texas Charter Schools Association 2014Copyright, Texas Charter Schools Association 2013 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)

11. Copyright, Texas Charter Schools Association 2014Copyright, Texas Charter Schools Association 2013 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

12. Copyright, Texas Charter Schools Association 2014Copyright, Texas Charter Schools Association 2013 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

13. Copyright, Texas Charter Schools Association 2014 “Prohibited Degree”

14. Copyright, Texas Charter Schools Association 2014 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

15. Copyright, Texas Charter Schools Association 2014 “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

16. Copyright, Texas Charter Schools Association 2014 “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.

17. Copyright, Texas Charter Schools Association 2014 “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.

18. Copyright, Texas Charter Schools Association 2014 Schematic: Direct Conflict of Interest Vendor Charter School Board Member

19. Copyright, Texas Charter Schools Association 2014 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.

20. 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

21. Copyright, Texas Charter Schools Association 2014 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.

22. Copyright, Texas Charter Schools Association 2014 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

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

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

25. Copyright, Texas Charter Schools Association 2014Copyright, Texas Charter Schools Association 2012 TCSA Model Board Policies: Two Parts Legal Authority: Charter Board Policy:

26. Copyright, Texas Charter Schools Association 2014 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 Interest Statements Make sure names of board members appear on website Compelling High Performance

27. Copyright, Texas Charter Schools Association 2014 TCSA’s Vision Statement A high quality education for every student in Texas

28. Copyright, Texas Charter Schools Association 2014 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 ph. 512.584.8272 fax 512.584.8492 www.txcharterschools.org