(a) By January 1 of the school year for which alternative management of a campus is ordered under §97.1065 of this title (relating to Commissioner Determinations for Decisions Preceding Alternative Management, Campus Closure, or Board of Managers), the school district shall:
  (1) execute a contract, not to exceed five years, in compliance with this section; and
  (2) relinquish control over the campus to a service provider approved under §97.1069 of this title (relating to Providers of Alternative Campus Management).
(b) A contract under this section must be executed by the district and the service provider and must:
  (1) relinquish all authority to perform the duties and responsibilities of a principal under Texas Education Code (TEC), §11.202(b)(1)-(6), with respect to the campus;
  (2) comply with TEC, §39.107(m)-(o); this section; and the requirements and performance measures established by the Texas Education Agency (TEA) under §97.1069 of this title;
  (3) provide for the creation, maintenance, retention, and transfer of all public records concerning the campus;
  (4) include provisions governing liability for damages, costs, and other penalties for acts or omissions by the service provider, including failure to comply with federal or state laws;
  (5) provide for termination of the contract if:
    (A) the campus is assigned an unacceptable rating under the state academic accountability system for two consecutive school years; or
    (B) the commissioner of education orders campus closure under §97.1065 of this title;
  (6) specify additional roles or responsibilities assumed by the service provider, if any;
  (7) be approved by written resolution of the district's board of trustees; and
  (8) be approved in writing by the commissioner.
(c) The service provider may perform the duties and responsibilities of a principal, and in addition may make requests and recommendations to the district concerning all aspects of campus administration, including personnel and budget decisions.
  (1) If a request is denied or a recommendation is not implemented by the district, the service provider shall report to the TEA both its request or recommendation and the district's action in response.
  (2) The commissioner may implement additional sanctions under this subchapter and consider such reports under TEC, §39.108 and §39.107(n), as well as §97.1065(b) of this title.
(d) The funding for the campus must be not less than the funding of the other campuses operated by the district on a per-student basis so that the service provider receives at least as much funding as the campus would otherwise have received. The district must continue to support:
  (1) campus maintenance and operations;
  (2) transportation;
  (3) food services;
  (4) extracurricular activities;
  (5) central office support services;
  (6) state assessment administration; and
  (7) similar operational expenses of the campus.
(e) A campus operated by a service provider under this section remains a campus of the district. Educators and staff assigned to work at the campus are district employees for all purposes. The campus is not subject to TEC, §11.253.
(f) The commissioner shall order closure of a campus when alternative management of the campus was ordered under this section and:
  (1) the district resumed operation of the campus under TEC, §39.107(n); and
  (2) for the school year immediately following resumption of operations, the campus is assigned an unacceptable performance rating under the state academic accountability system.
(g) A district subject to this section shall comply fully with TEA requests for information for the purpose of evaluating implementation of the contract, student performance, and management of the campus.
(h) A district that violates the terms of its contract under this section is subject to further sanctions under this subchapter.

Source Note: The provisions of this §97.1067 adopted to be effective January 6, 2008, 33 TexReg 150; amended to be effective July 28, 2010, 35 TexReg 6523; amended to be effective July 17, 2012, 37 TexReg 5268; amended to be effective November 17, 2016, 41 TexReg 9012