(a) Petition for renewal.
  (1) A charter holder of an open-enrollment charter may submit, as described by this section, a petition for:
    (A) expedited renewal; or
    (B) discretionary renewal.
  (2) A petition for renewal of the charter must be submitted on the date provided by the Texas Education Agency (TEA) annually, prior to the expiration of the charter contract.
  (3) A petition for renewal must be in the form provided by the TEA and shall include all information and documentation required by the form.
  (4) If a charter holder fails to submit a timely and sufficient petition for renewal of an open-enrollment charter, the existing charter may expire at the end of its term.
(b) Expedited renewal. If a charter holder submits the petition for expedited renewal, the commissioner of education will approve or deny the expedited renewal not later than the 30th day after the date of the charter holder submission. A charter holder may submit a petition for expedited renewal if:
  (1) the charter holder has been assigned the highest or second highest performance rating under Texas Education Code (TEC), Chapter 39, Subchapter C, for the three preceding school years;
  (2) the charter holder has been assigned a financial performance accountability rating under TEC, Chapter 39, Subchapter D, indicating financial performance that is satisfactory or better for the three preceding school years; and
  (3) no campus operating under the charter has been assigned the lowest performance rating under TEC, Chapter 39, Subchapter C, for the three preceding school years or such a campus has been closed.
(c) Expiration. Notwithstanding any other law, a determination by the commissioner under this subsection is final and may not be appealed. The commissioner may not renew the charter and must allow the charter to expire if:
  (1) the charter holder has been assigned the lowest performance rating under TEC, Chapter 39, Subchapter C, for any three of the five preceding school years;
  (2) the charter holder has been assigned a financial accountability performance rating under TEC, Chapter 39, Subchapter D, indicating financial performance that is lower than satisfactory for any three of the five preceding school years;
  (3) the charter holder has been assigned any combination of the ratings described by paragraph (1) or (2) of this subsection for any three of the five preceding school years; or
  (4) any campus operating under the charter has been assigned the lowest performance rating under TEC, Chapter 39, Subchapter C, for the three preceding school years and such a campus, and if applicable, all sites associated with the campus, has not been closed.
(d) Discretionary renewal.
  (1) A charter holder may submit a petition for discretionary renewal if it:
    (A) does not qualify to submit the petition for expedited renewal; or
    (B) is not subject to an expiration under subsection (c) of this section.
  (2) In evaluating the petition for discretionary renewal, the commissioner shall consider the following:
    (A) the results of the charter's annual evaluation under the performance framework set forth in the Charter School Performance Framework Manual established under TEC, §12.1181; and
    (B) the criteria described under §100.1032 of this title (relating to Standards for Discretionary Renewal).
(e) Special rules for alternative education accountability (AEA) charters. The following provisions apply to the renewal of the charter of an open-enrollment charter school that is registered under the TEA AEA procedures for evaluation under TEC, Chapter 39.
  (1) Discretionary renewal of AEA charters. An AEA charter may submit the petition for discretionary renewal and the petition must be considered under the discretionary renewal process. An AEA charter may not submit a petition for expedited renewal.
  (2) Academic criteria for discretionary renewal of AEA charters.
    (A) In considering a petition for discretionary renewal by an AEA charter such as a dropout recovery school or a school providing education within a residential treatment facility, the commissioner shall use academic criteria as outlined in the Charter School Performance Framework Manual established under TEC, §12.1181, that is appropriate to measure the specific goals of the school.
    (B) For purposes of this subsection, the commissioner shall designate as a dropout recovery school an open-enrollment charter school or a campus of an open-enrollment charter school:
      (i) that serves students in Grades 9-12 and has an enrollment of which at least 50 percent of the students are 17 years of age or older as of September 1 of the school year as reported for the fall semester Public Education Information Management System (PEIMS) submission; and
      (ii) that meets the eligibility requirements for and is registered under AEA procedures adopted by the commissioner.
  (3) Expiration of AEA charters. The commissioner may not renew and must allow an AEA charter to expire if the charter holder has been assigned a financial accountability performance rating under TEC, Chapter 39, Subchapter D, indicating financial performance that is lower than satisfactory for any three of the five preceding school years.
(f) Notice and content of renewal decision or determination.
  (1) Expedited renewal decision. Not later than the 30th day after the submission of a petition for expedited renewal, the commissioner shall provide written notice to the charter holder of the commissioner's decision to grant or deny the petition. If the expedited renewal is denied, the notice shall include an explanation of the factual and legal basis for the decision, a description of the legally relevant factors considered, an explanation of why the result reached is reasonable, and a description of the procedures to seek a review of the decision.
  (2) Discretionary renewal decision. Not later than the 90th day after the submission of a petition for discretionary renewal, the commissioner shall provide written notice to the charter holder of the commissioner's decision to grant or deny the petition. If the discretionary renewal is denied, the notice shall include an explanation of the factual and legal basis for the decision, a description of the legally relevant factors considered, an explanation of why the result reached is reasonable, and a description of the procedures to seek a review of the determination.
  (3) Expiration determination. The commissioner shall provide written notice to the charter holder of the commissioner's determination that the charter must expire. In the event a charter holder that meets the criteria for expiration submits a petition for renewal, the commissioner, not later than the 90th day after the submission, shall provide written notice to the charter holder of the commissioner's decision to deny the petition. Determinations made by the commissioner are final and may not be appealed. The notice shall include an explanation of the factual and legal basis for the determination, a description of the legally relevant factors considered, and an explanation of why the result reached is reasonable.
  (4) Delivery and effective date of notice. The commissioner shall provide written notice to the charter holder by regular mail. Notice is effective as of the date of the postmark.
(g) Appeal of renewal decisions and determinations. A decision by the commissioner to deny the petition for an expedited renewal or the petition for a discretionary renewal is subject to review by the State Office of Administrative Hearings under an arbitrary and capricious or clearly erroneous standard as described under Chapter 157, Subchapter EE, Division 4, of this title (relating to State Office of Administrative Hearings Arbitrary and Capricious or Clearly Erroneous Review).
(h) Use of ratings and data. The following provisions apply to the petition for renewal or expiration under this section.
  (1) If a rating is not issued during one or more of the preceding school years, then the term "three preceding school years" means the most recent three school years during which a rating was issued, and the term "three of the five preceding school years" means three out of the most recent five school years during which a rating was issued.
  (2) A rating that does not meet the criteria for "academically acceptable" as defined by §100.1001(26) of this title (relating to Definitions) shall not be considered the highest or second highest academic performance rating for purposes of this section.
  (3) For purposes of renewal or expiration under this section, the term "unacceptable performance" means an unacceptable academic performance rating as defined by §100.1001(26) of this title.
Cont'd...