Section 100.1157 - Procedures for Prohibiting a Management Contract(a) Action prohibiting management contract. The commissioner of education may prohibit, deny renewal of, suspend, or revoke a contract between an open-enrollment charter school and a management company providing management services to the school if the commissioner determines that the management company has: (1) failed to provide educational or related services in compliance with the company's contractual or other legal obligation to any open-enrollment charter school in Texas or to any other similar school in another state;(2) failed to protect the health, safety, or welfare of the students enrolled at an open-enrollment charter school served by the company;(3) violated this subchapter or a rule adopted under this subchapter; or(4) otherwise failed to comply with any contractual or other legal obligation to provide services to the school.(b) Procedures for making determination. A determination under subsection (a) of this section shall be made through a final investigative report issued by the Texas Education Agency. In making this determination: (1) the commissioner may rely on one or more of the following: (A) any finding or determination made by a court or other tribunal of competent jurisdiction, whether in Texas or in any other state, or by the United States, if the order or judgment is final under the rules governing such proceedings;(B) any finding or determination made by the commissioner under §§ 100.1049, 100.1045, 100.1047, 100.1041, or 100.1037 of this title (relating to Revocation and Modification of Governance of an Open-Enrollment Charter; Intervention Based on Charter Violations; Intervention Based on Health, Safety, or Welfare of Students; Accountability Ratings and Sanctions; and Renewal of an Open-Enrollment Charter), if the finding or determination is final under the rules governing such proceedings; or(C) any finding or determination made by a court in an action for declaratory judgment or other action pertaining to the commissioner's determination under this section, if the order or judgment is final under the rules governing such proceedings; and(2) to the extent that a finding or determination under paragraph (1) of this subsection pertains to a charter holder or charter school served by a management company, but does not directly pertain to the management company, the focus shall be on the question of whether the relevant contract for management services creates a legal duty for the management company to provide services to the charter school in areas of performance that are the subject of the finding or determination against the charter holder or charter school.(c) Review of proposed management contract. A proposed management contract shall be submitted for commissioner approval through the non-expansion amendment process. (1) A contract for management services is unenforceable, void, and of no force or effect until the non-expansion amendment containing the management contract is approved by the commissioner. In addition, performance under the contract prior to approval by the commissioner is a material charter violation.(2) Notwithstanding this section, if an affected contract for management services was executed prior to September 1, 2001, then the management contract may continue in effect past September 1, 2001, if each of the following conditions is met: (A) no state funds are used to pay any amounts due the management company under the management contract, and all such amounts are paid from a clearly identified source of non-state funds; and(B) the terms of the management contract have not been renewed, modified, or otherwise altered since September 1, 2001.19 Tex. Admin. Code § 100.1157
The provisions of this §100.1157 adopted to be effective April 18, 2002, 27 TexReg 3110; Adopted by Texas Register, Volume 49, Number 39, September 27, 2024, TexReg 7891, eff. 10/2/2024