LTTS Charter School, Inc. v. C2 Construction, Inc.
Tex.
Tex.
delivered the opinion of the Court,
Since 1995, open-enrollment charter schools have been a part of the Texas public-school system. These nontraditional public schools, created and governed by Chapter 12 of the Education Code, receive government funding and comply with the state’s testing and accountability system, but they operate with greater flexibility than traditional public schools, in hopes of spurring innovation and improving student achievement.
This interlocutory appeal poses a narrow issue: Is an open-enrollment charter school a “governmental unit” as defined in Section 101.001(3)(D) of the Tort Claims
I. Background
LTTS Charter School, Inc., d/b/a Universal Academy, is an open-enrollment charter school that retained C2 Construction, Inc. to build school facilities at a site Universal Academy had leased. C2 filed a breach-of-contract suit, and Universal Academy filed a plea to the jurisdiction claiming immunity from suit. The trial court denied the plea, and Universal Academy brought an interlocutory appeal under Section 51.014(a)(8) of the Civil Practice and Remedies Code. In the court of appeals, C2 moved to dismiss the interlocutory appeal, arguing Universal Academy was not entitled to one because it is not a “governmental unit” under the Tort Claims Act.
We granted Universal Academy’s petition for review to address whether the court of appeals properly dismissed the interlocutory appeal. Regardless of whether we have jurisdiction over the substance of an interlocutory appeal, we have jurisdiction to determine whether the court of appeals properly determined its own jurisdiction — the only issue raised in the petition and the briefing.
II. Discussion
A. Standard of Review
A statute’s meaning is a question of law we review de novo.
B. Statutory Provisions
Section 51.014(a)(8) permits an appeal of an interlocutory order that “grants or denies a plea to the jurisdiction by a governmental unit as that term is defined in Section 101.001.”
(D) any other institution, agency, or organ of government the status and authority of which are derived from the Constitution of Texas or from laws passed by the legislature under the constitution.12
Universal Academy argues it qualifies under this catch-all language as an “institution, agency, or organ of government” deriving its status and authority from statutory enactments.
Our cases “strictly construe Section 51.014(a) as a narrow exception to the general rule that only final judgments are appealable.”
We have received two amici curiae briefs, both supporting Universal Academy, one from the State of Texas (whose views the Court requested) and one from the Texas Charter Schools Association. Both amici echo Universal Academy’s contention that it falls within Section 101.001(3)(D), and we agree: An open-enrollment charter school qualifies as a “governmental unit” under the Tort Claims Act.
C. The “Status and Authority” of Open-Enrollment Charter Schools Arise From Statute.
Open-enrollment charter schools, governed by Chapter 12 of the Education Code, are indisputably part of the Texas public-education system. Several statutes in the Education Code and elsewhere amply demonstrate that open-enrollment charter schools derive their governmental “status and authority” from legislative enactments. Capped at 215 statewide,
Chapter 12 of the Education Code, which authorizes the operation of charter schools, seeks to “ensure! ] the fiscal and academic accountability” of charter holders
As for status, Section 12.105 of the Education Code — titled “Status” — statutorily (and categorically) declares open-enrollment charter schools to be “part of the public school system of this state.”
As for authority, that too derives from “laws passed by the legislature under the constitution.”
Put simply, open-enrollment charter schools wield many of the same powers as traditional public schools. They have stat
Chapter 12 further subjects open-enrollment charter schools to a host of statutes that govern governmental entities outside the Education Code. For example, for purposes of the Government Code’s regulation of open meetings and access to public information, “the governing body of an open-enrollment charter school [is] considered to be [a] governmental bod[y].”
In sum, numerous provisions of Texas law confer “status” upon and grant “authority” to open-enrollment charter schools. Their status as “part of the public school system of this state”
C2 suggests that Universal Academy is not a “governmental unit” because it is a private institution and can engage in for-profit activities. This is unpersuasive. It is true that open-enrollment charter schools can be operated by private institutions or private entities.
Universal Academy’s use of state-funded property and state funds is also carefully circumscribed. Property purchased or leased with state public funds — the source of more than 98% of Universal Academy’s funding — is held in trust for the benefit of the students
The dissent, however, maintains that Universal Academy lacks “governmental unit” status because, while the overall charter-school regime is set forth by statute, it is the State Board of Education (SBOE) that issues charters and the Commissioner of Education who revokes or denies renewal.
True enough, a charter school cannot operate without a charter. And charters are granted by the SBOE, not by 181 legislators sifting through mounds of applications.
III. Conclusion
Open-enrollment charter schools are governmental units for Tort Claims Act purposes because: (1) The Act defines “governmental unit” broadly to include “any other institution, agency, or organ of government” derived from state law;
Accordingly, because Universal Academy is a “governmental unit” under the Tort Claims Act, the court of appeals had jurisdiction to hear Universal Academy’s interlocutory appeal under Section 51.014(a)(8).
. See Tex. Civ. Prac. & Rem.Code § 101.001(3)(D).
. Id. § 51.014(a)(8) (permitting an appeal from an interlocutory order of a district court order that "grants or denies a plea to the jurisdiction by a governmental unit as that term is defined in Section 101.001”).
. See id. § 101.001(3)(D).
. Id. at 38.
. See Klein v. Hernandez, 315 S.W.3d 1, 3 (Tex.2010).
. See First Am. Title Ins. Co. v. Combs, 258 S.W.3d 627, 631 (Tex.2008).
. See City of DeSoto v. White, 288 S.W.3d 389, 394 (Tex.2009).
. See Alex Sheshunoff Mgmt. Servs., L.P. v. Johnson, 209 S.W.3d 644, 651 (Tex.2006).
. See Presidio Ind. Sch. Dist. v. Scott, 309 S.W.3d 927, 929-30 (Tex.2010).
. Tex. Civ. Prac. & Rem.Code § 51.014(a)(8).
. Id. § 101.001(3)(D).
. Universal Academy also argues it qualifies for "governmental unit” status as a "political subdivision” under Section 101.001(3)(B), specifically as a "school district.” See id. § 101.001(3)(B). We need not discuss Subsection (3)(B) since we hold that open-enrollment charters fall under Subsection (3)(D).
. See, e.g., Tex. A & M Univ. Sys. v. Koseoglu, 233 S.W.3d 835, 841 (Tex.2007) (quotations and citation omitted).
. Tex. Civ. Prac. & Rem.Code § 101.001(3)(D).
. Tex. Educ.Code § 12.101.
. Id. § 12.002 (stating that the three classes of charter schools are: "(1) a home-rule school district charter ...; (2) a campus or campus program charter ...; or (3) an open-enrollment charter ....”); see id. § 12.011 (describing the "[a]uthorization" for and "[s]tatus” of home-rule school district charter schools); see id. § 12.052 (describing the "[ajuthorization" for campus or campus program charter schools); see id. § 12.101 (describing the "[ajuthorization" for open-enrollment charter schools); see id. § 12.105 (describing the "[sjtatus” of open-enrollment charter schools).
. Id. § 12.101.
. Id. § 12.001(b).
. Id. § 12.106(a) (A charter holder is entitled to receive funding for the open-enrollment charter school that is based in part on student "weighted daily attendance” and on "the state average tax effort.”); id. § 12.106(b) ("An open-enrollment charter school is entitled to funds that are available to school districts from the agency or the commissioner in the form of grants or other discretionary funding unless the statute authorizing the funding explicitly provides that open-enrollment charter schools are not entitled to the funding."); see id. § 12.106(c) ("The commissioner may adopt rules to provide and account for state funding of open-enrollment charter schools under this section.”).
. See id. § 12.001(a).
. Id.
. Id. § 12.105.
. Id. § 11.002.
. See id. § 12.1053.
. Tex. Civ. Prac. & Rem.Code § 101.001(3)(D).
. Tex. Educ.Code § 12.104(a).
. Id. § 12.102.
. Id. § 12.102(4) (An open-enrollment charter school "does not have authority to impose taxes.").
. Id. § 12.108(a) ("An open-enrollment charter school may not charge tuition to an eligible student who applies under Section 12.117.").
. Id. § 12.106(a) ("A charter holder is entitled to receive for the open-enrollment charter school funding under Chapter 42_”).
. Id. § 12.104(c) ("An open-enrollment charter school is entitled to the same level of services provided to school districts by regional education service centers.”).
. Id. § 12.103(a).
. Id. § 12.103(b).
. Id. § 12.104.
. Id. § 12.1051.
. Id. § 12.1052.
. See id. § 12.1053.
. Id. § 12.105.
. Id. § 12.104(a).
. See id. §§ 12.106, .107.
. See id. § 12.1053.
. See Tex. Civ. Prac. & Rem.Code § 101.001(3)(D).
. We leave undecided the separate issue of whether Universal Academy is immune from suit. The Solicitor General of Texas — responding to our request for briefing from the
. See Tex. Educ.Code § 12.101(a). Open-enrollment charter schools may be operated by any one of four eligible entities: a public institution of higher education, a governmental entity, a private or independent institution of higher education, or, in this case, a nonprofit organization. Id.
. See id. § 12.101(a)(3).
. Further, more than 93% of Universal Academy’s funding comes from the State of Texas, through per-pupil allotments similar to allotments paid to public independent school districts. See id. § 12.106. Universal Academy also receives federal funding and private donations, so the revenue from the sublease generates only a minuscule portion of Universal Academy’s revenues.
. Id. § 12.101(b); see abo id. § 12.113(a)(1).
. Id. § 12.1163(a)(1). The Commissioner also has the power to audit the records of the charter holder and any management company that provides management services to the school. See id. §§ 12.1163(a)(1) — (2), .1012.
. Id. § 12.115. Whether Universal Academy complied with statutory accountability and financial standards is not before us today.
. Id. § 12.102(1).
. Id. § 12.128(a)(2).
. Id. § 12.128(a)(3).
. See id.; see also id. § 45.033. Under Chapter 45, which covers school district funding, the governing board of a school district "may set and collect rentals, rates, and charges from students and others for the occupancy or use of any of the facilities, in the amounts and manner determined by the board....”
. Id. § 12.107(a)(3).
. Id. § 12.107(a)(2).
. Id. at 87.
. Id. at 87.
. Id. at 88. The dissent sees two narrow paths to "governmental unit” status for privately run open-enrollment charter schools: (1) under Subsection (3)(B), if such schools are added as a general category of "political subdivision” like junior college districts, or (2) under Subsection (3)(D), if each school has its existence statutorily declared, like each of our State's various public universities. Id. As explained above, this constrained view lacks any textual support, and we decline to graft this ancillary requirement onto the Legislature’s straightforward definition of "governmental unit” in Subsection (3)(D).
. Tex. Educ.Code § 12.101 (providing that the SBOE "may grant a charter for an open-enrollment charter school only to an applicant that meets any financial, governing, and operational standards adopted by the commissioner”).
. Id. § 12.113.
. Id. § 12.101(a).
. See id. § 12.102 (titled "Authority Under Charter”). The Education Code is the authority for these charter agreements; it defines the scope of their content and limits their effect on future renewals. Section 12.111, titled "Content,” says that "each charter granted under this subchapter must” include, among other things, the period of the charter’s validity, the conditional nature of its renewal, the minimum level of student performance, and the basis for revoking a charter. Id. § 12.111. Furthermore, ”[t]he grant of a charter under [Subchapter D] does not create an entitlement to a renewal of a charter on the same terms as it was originally issued.” Id. § 12.113(b).
. Id. § 12.104(a) (Open-enrollment charter schools have "the powers granted to [traditional public] schools” under Title 2 of the Education Code.).
. Id. § 12.102(3).
. See id. § 12.102(4) (An open-enrollment charter school "does not have authority to impose taxes.”); see also id. § 12.108(a) ("An open-enrollment charter school may not charge tuition to an eligible student who applies under Section 12.117.”).
. Id. § 12.105 (titled "Status”).
. Edgewood Indep. Sch. Dist. v. Meno, 917 S.W.2d 717, 730 n. 8 (Tex.1995) ("As long as the Legislature establishes a suitable regime that provides for a general diffusion of knowledge, the Legislature may decide whether the regime should be administered by a state agency, by the districts themselves, or by any other means.”).
. See Tex. Civ. Prac. & Rem.Code § 101.001(3)(D).
. Tex. Educ.Code § 12.105.
. Id. § 11.002.
. Id. § 12.103(a).
. Id.§ 11.002.
. Id. § 12.1053; see also id. §§ 12.1051-.1052.
. See Tex. Civ. Prac. & Rem.Code § 51.014(a)(8).
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