CEDC Request 2002/04/15April 15, 2002
Mr. Robert Hager
Nichols, Jackson, Dillard, Hager & Smith
1800 Lincoln Plaza
500 N. Akard Street
Dallas, Texas 75201
RE: Charter School/379A Tax
Dear Bob:
Respec .' lly,
Witt
ity Manager
JW:kb
Enclosure
bcc: Mayor and Council
CEDC
Clay Phillips
Jennifer Armstrong
T H E C 1 T Y O F
COPPELL
Last week I received a number of calls from Tracy Fisher, a parent in Coppell whose children attend North Hills
private school in Irving. During our exchange of messages and conversations, Ms. Fisher inquired regarding the
379A sales tax and its availability to fund students attending a charter school. I responded to her that only publicly
funded institutions were allowed to receive funds under the charter and bylaws of the Coppell Education
Development Corporation (CRDC).
Ms. Fisher responded that charter schools were recognized as public school systems by the State of Texas. I asked
her to provide some documentation related to such, and I am attaching a copy of the State Statutes she provided. I
believe you will find them both informative and perplexing in the sense that it is very clear that many of the
sections of the statutes clearly point out that the State of Texas considers them part of the public school system.
Bob, I think we really have a tenuous situation here. I would appreciate your research and formal letter of opinion
regarding whether or not under the existing CRDC bylaws, charter schools may apply. I do not believe it was ever
our intent to structure the bylaws and articles of incorporation to reflect such, but apparently we have a potentially
serious conflict with state statutes regarding this definition.
I will be informing the CRDC of this situation and I have already mentioned it to Council in some communication
on Friday. If you have any other questions, please do not hesitate to contact me. I encourage you to utilize all
resources possible to ensure that our opinion accurately reflects a defensible legal stand regarding the question of
whether or not charter schools are publicly funded institutions.
255 PARKWAY * P.O.BOX 478 * COPPELL TX 75019 * TEL 972/462 0022 * FAX 972/304 3673
FILE No.923 04/09 '02 10 :29 ID :FORD WHITE NASSEN
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To
Rosemary Perimeter
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Rosemary:
Tim
AD4
D
4 Prufc. slr»t l C.'urjxinar;ors of Adnan,.ya end cr u w arr
1100 Highland Park Place 4514 Cole Avenue Dallas. Texas 75205
Phone (2/4) 523 -5100 Fax (214) SZ1 -4601
FORD APR 12 2002
WHITE .. C►Y
NASSEN
CI TY OF MANAGER
Company
The North Hills School
FAX :2145214601
PAGE 1
COMMUNICATION TRANSMITTAL
Telephone No.
Fax No.
(972) 501 -9439
The following sections all refer to the fact that the Open - Enrollment Charter School and its governing body are to be
considered public entities and afforded the same treatment as other public school systems. Sections 12.103. 12.105,
12.1051, 12.1053, 12.1054, 12.1055.
I have not yet had a chance to talk with you or Morris about becoming more involved next year from the standpoint of
assisting on a facilities committee or budget committee. But, I would like to get more information on this from both of
you. 1 do not like the school financing plan that the Acting Lt Governor floated the other day either. Is Ms. Martin going
to be involved in that fight for the charter schools.
FILE No.923 04/09 '02 10 :29 ID:FORD WHITE NASSEN FAX:2145214601
77(R) HB 6 Enrolled version - Bill Text
3 -13 (E) recommending policies to be adopted by the
3 -14 governing body of the school, developing_ appropriate procedures to
3 -15 implement policies adopted by the governing body of the school, and
3 -16 overseeing the implementation of adopted policies; and
3 -17 Lh)_, providing leadership for the attainment of
3 -18 student performance at the school based on the indicators adopted
3 -19 under Section 39.051 or by the governing body of the school.
3 -20 (6) .. "Officer of an open- enrollment charter school"
3 -21 means:
3 -22 (A) the principal, director, or other chief
3 -23 operating officer of an open- enrollment charter school;
3 -24 (Si_ _an assistant principal or assistant director
3 -25 of,an open- enrollment charter school; or
3 -26 (C) a person charged with managing the finances
3 -27 of an open - enrollment charter school.
4 -1 SECTION 4. Section 12.103, Education Code, is amended to read
4 -2 as follows:
4 -3 Sec. 12.103. GENERAL APPLICABILITY OF LAWS,_ {A ] RULES,_. AND
4 -4 ORDINANCES TO OPEN - ENROLLMENT CHARTER SCHOOL. (a) Except as
4 -5 provided by Subsection (b)_ or (c), an [AF!] open- enrollment charter
4 -6 school is subject to federal and state laws and rules governing
4 -7 public schools and to municipal zoning ordinances governing public
4 -8 schools.
4 -9 (b) An [, enG36 th t an] open - enrollment charter school is
4 -10 subject to this code and rules adopted under this code only to the
4 -11 extent the applicability to an open - enrollment charter school of a
4 -12 provision of this code or a rule adopted under this code is
4 -13 specifically provided.
4 -14 (c) Notwithstanding Subsection (a), a campus of an
4 -15 open - enrollment charter school located in whole or in part in a
4-16 municipality with a population of 20,000 or less is not subject
4 -17 a municipal zoning ordinance governing public schools.
4 -18 SECTION 5. Section 12.104, Education Code, is amended by
4 -19 adding Subsections (c) and (d) to read as follows:
4 -20 _q __An open- enrollment charter school is entitled to the
4 -21 same level of services provided to school districts by regional
4 -22 education service centers. The commissioner shall adopt rules that
4 -23 provide for the representation of open - enrollment charter schools
4 -24 on the boards of directors of regional education service centers..
4 -25 (d) The commissioner may by rule permit an open- enrollment
4-26 charter school to voluntarily participate in any state program
4 -27 available to school districts, including a purchasing program, if
5 -1 the school complies with all terms of the program.
5 -2 SECTION 6. Subchapter D, Chapter 12, Education Code, is
5 -3 amended by amending Section 12.105 and adding Sections
5 -4 12.1051 - 12.1057 to read as follows:
5 -5 Sec. 12.105. STATUS. [444.) An open - enrollment charter
5 -6 school is part of the public school system of this state.
5 -7 Sec. 12.1051. APPLICABILITY OF OPEN MEETINGS AND PUBLIC
5 -8 INFORMATION LAWS. (a) With respect to the operation of an
5 -9 open_enn:ollment charter school, the [ (b) Tho] governing body of a
5-10 charter holder and the governing body of an open - enrollment charter
5 -11 [fie] school are [=a] considered to be [a.] governmental bodies
5 -12 [may) for purposes of Chapters 551 and 552, Government Code.
5 -13 1121 With respect to the operation of an open - enrollment
5 -14 chart en: school. any [,des}] requirement in Chapter 551 or 552,
5 -15 Government Code, that applies ( - - -- - - - - ) to a school
5 -16 district, the board of trustees of a school district [414444 e�
5 -17 be.], or public school students (ohildr n] applies to an
5 -18 open - enrollment charter school, the governing body of a charter
5 -19 holder, the governing body of an open-enrollment charter school, or
5 -20 students [and to ohi_dron] attending an open - enrollment charter
5 -21 school.
5-22 Sec.._ _12.1052. APPLICABILITY OF LAWS RELATING TO LOCAL
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5 -23 GOVERNMENT RECORDS. ...(a) With respect to the operation of an
5 -24 open - enrollment charter school, an open - enrollment charter school
5 -25 is considered to be a local government for purposes of Subtitle C,
5 -26 Title 6, Local Government Code, and Subchapter J,.Chapter 441,
5 -27 Government Code.
6 -1 (b) Records of an open- enrollment charter school and records
6 -2 of a charter holder that relate to an open - enrollment charter
6 -3 school are government.records for all purposes under state law.
6 -4 _(c) Any requirement in Subtitle C, ,Title 6, Local Government
6-5 Code, or Subchapter J, Chapter 441, Government Code, that applies
6 -6 to a school district, the board of trustees of a school district,
6 -7 or an officer or employee of a school district applies to an
6 -8 open - enrollment charter school, the governing body of acharter
6 -9 holder, the governing body of an open -- enrollment charter school, or
6 -10 an officer emgloyee of an open-enrollment school except
6 -11 that the records of an open- enrollment charter school that ceases
6 -12 to operate shall be transferred in the manner prescribed bV
6 -13 Subsection (d L
6 -14 (d) The records of an open -- enrollment charter school that
6 -15 ceases to operate,shallbe transferred in the manner specified by
6 -16 the commissioner to a custodian designated by the commissioner.
6 -17 The commissioner may designate any appropriate entity to serve as
6 -18 custodian, including the agency, a regional education service
6 -19 center, or a school district. In designating a custodian, the.
6 -20 commissioner shall ensure that the transferred records, including
6 -21 student and personnel records, are transferred to a custodian
6 -22 capable of
6 -23 11) maintaining the records ;.
6 -24 (2) making the records readily accessible to students,
6 -25 parents, former school employees, and other persons entitled to
6 -26 access; and
6 -27 13) complyinc with applicable state or federal law
7 -1 restricting access to the records.
7 -2 (e) If the charter holder of an open - enrollment charter
7 -3 school that ceases to operate or an officer or employee of such a
7 -4 school refuses to transfer school records in the manner specified
7 - by the commissioner under Subsection id), the may ask
7 -6 the attorney general to petition a court for recovery of the
7 -7 records. If the court grants the petition, the court shall award
7 -8 attorney's fees and court costs to the state.
7 -9 Sec. 12.1053. APPLICABILITY OF LAWS RELATING TO PUBLIC
7 -10 PURCHASING AND CONTRACTING. (a) This section applies to an
7
7 -11 open - enrollment charter school unless the school's charter
7 -12 otherwise describes procedures for purchasing and contracting and
7 -13 the procedures are approved by the State Board of Education. —
7 -14 ( b). An open - enrollment charter school is considered to be_
(1). a governmental entity for purposes of:
7-16 (A) Subchapter D, Chapter 2252, Government Code;
7 -17 and
7 -18 _(B) Subchapter 8, Chapter 271, Local Government.
7 -19 Code;
7-20 (2) a political subdivision for purposes of Subchapter
7 -21 A, Chapter 2254, Government Code; and
7-22 ,(3) a local government for purposes of Sections
7 -23 2256.009 - 2256.016, Government Code.
7 -24 Lc) To the extent consistent with this section, a
7 -25 requirement in a law listed in this section that applies to a
7-26 school district or the board of trustees of a school district
i - 2 7 applies to an open -- enrollment charter school, the governing body of
8 -1 a...charter holder, . or the governing body of an open- enroll1ment
8 - 2 charter school,
8 -3 Sec, 12.1054. APPLICABILITY OF LAWS RELATING TO CONFLICT OF
8 -4 INTEREST. (a) A member of the governing body of a charter holder,
8 -5 a__member of. the governing body of an open - enrollment charter
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8 -6 school, or an officer of an open - enrollment charter school is
8 -7 considered to be a local public official for purposes of Chapter
8 -8 171, Local Government Code. For purposes of that chapter:
8-9 (1) a member o f_ the governing body of a charter holder
8 -10 or,_a member of the governing body or officer of an open- enrollment
8 -11 charter school is considered to have a substantial interest in a
8 -12 business entity if a person related to the member or officer in the
8 -13 third degree by consanguinity or affinity, as determined under
8 -14 Chapter 573, Government Code, has a substantial interest in the
8 -15 business entity under Section 171.00 Local Government Code;
8-16 (2) notwithstanding any provision of Section
8 -1.7 12.1054(1), an employee of an open- enrollment charter school rated
8 -18 as academically acceptable or higher under Chapter .39 for.at least
8 -19 two of the preceding three school years may serve as a member of
8 -20 the governing body of the charter holder of the governing body of
8 -21 the school if the employees do not constitute a quorum of the
8 -22 governing body or any committee of the governing body; however, all
8 -23 members shall comply with the requirements of Sections
8 -24 171.003 - 171.007, Local Government Code.
8 -25 (b) To the extent consistent with this section, a
8 -26 requirement in a_law listed in this section that applies to_a
8 -27 school district or the board of trustees a school district
9 -1 applies to an open - enrollment charter school, the governing body of
9 -2 a charter holder, or the governing body of an open - enrollment
9 -3 charter school.
9 -4 Sec. 12.1055. APPLICABILITY OF NEPOTISM LAWS. (a) An
9 -5 open-enrollment charter school is subject to a prohibition,
9 -6 restriction, or requirement, as applicable, imposed by state law or
9 -7 by a rule adopted under state law, relating to nepotism under
9 -8 Chapter 573, Government Code.
9 -9 (b) Notwithstanding Subsection (a), if an open - enrollment
9 -10 charter school is rated 3cademically_acceptable or higher under
9-11 Chapter 39 for at least two of the preceding three school years,
9 -12 then Chapter 573,. Government Code, does not apply to that school;
9 -13 however, a member of the governing body of a charter holder or a
9 -14 member of the governing body or officer of open - enrollment
9 -15 charter school shall comply with the requirements of Sections
9 -16 17.1.003- 171.007, Local Government Code, with respect to a personnel
9 -17 matter concerning a related to the member or officer within
9 -18 the degree specified by Section 573.002, Government Code_, as if the
9-19 Personnel matter were a transaction with a business entity subject
9 -20 to_those sections, and persons defined under Sections
9 -21 573.021-573.025, Government Code, . shall not constitute a quorum of
9 -22 the ..governing body or any committee of the governing_body.
9 -23 Sec. 12.1056. IMMUNITY FROM LIABILITY. In matters related to
9 -24 operation of an open - enrollment charter school, an open - enrollment
9 -25 charter [(o)- Thol school is immune from liability to the same
9 -26 extent as a school district, and its employees and volunteers are
9-27 immune from liability to the same extent as school district
10 -1 employees and volunteers. A_member of the governing body of an
10 -2 open - enrollment charter school or of a charter holder is immune
10 -3 from liability to the same extent as a school district trustee.
10 -4 Sec. 12.1057. MEMBERSHIP IN TEACHER P.ETIREMENT SYSTEM OF
10 -5 TEXAS. (a) [44+.] An employee of an open- enrollment charter school
10 -6 who qualifies for membership in the Teacher Retirement System of
10 -7 Texas shall be covered under the system to the same extent a
10 -8 qualified employee of a school district is covered.
10 -9 _ (b) For each employee of the school covered under the
10 -10 system, the school is responsible for making any contribution that
10 -11 otherwise would be the legal responsibility of the school district,
10 -12 and the state is responsible for making contributions to the same
10 -13 extent it would be legally responsible if the employee were a
10 -11 school district employee.
10 -15 SECTION 7. Sections 12.106 and 12.107, Education Code, are
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