By Hamric                                             H.B. No. 2976
         76R8612 CAS-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to cooperation between public and private entities and
 1-3     public schools and to franchise tax refunds for providing certain
 1-4     assistance in education.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Section 11.157, Education Code, is amended to
 1-7     read as follows:
 1-8           Sec. 11.157.  CONTRACTS FOR EDUCATIONAL SERVICES AND
 1-9     FACILITIES.  (a)  The board of trustees of an independent school
1-10     district may contract with a public or private entity for that
1-11     entity to provide:
1-12                 (1)  educational services for the district; or
1-13                 (2)  a facility in which the district operates a
1-14     school.
1-15           (b)  A school district may lease a facility under Subsection
1-16     (a)(2) or may accept use of the facility as a donation.
1-17           (c)  The district may establish geographic attendance
1-18     boundaries for a school operated in a facility under Subsection
1-19     (a)(2) or may permit  the school to serve only or primarily the
1-20     children of employees of the entity providing the facility. The
1-21     State Board of Education shall by rule adopt guidelines for a
1-22     contract under Subsection (a)(2).  The guidelines must address:
1-23                 (1)  the responsibilities of:
1-24                       (A)  the entity concerning maintenance of the
 2-1     facility to ensure the health and safety of students; and
 2-2                       (B)  the district to provide an educational
 2-3     program, personnel, and textbooks in accordance with Title 1 and
 2-4     this title;
 2-5                 (2)  the use and distribution of state funds in
 2-6     accordance with this title; and
 2-7                 (3)  admissions policies.
 2-8           SECTION 2.  Section 12.111, Education Code, is amended to
 2-9     read as follows:
2-10           Sec. 12.111. CONTENT.  (a) Each charter granted under this
2-11     subchapter must:
2-12                 (1)  describe the educational program to be offered,
2-13     which must include the required curriculum as provided by Section
2-14     28.002;
2-15                 (2)  specify the period for which the charter or any
2-16     charter renewal is valid;
2-17                 (3)  provide that continuation or renewal of the
2-18     charter is contingent on acceptable student performance on
2-19     assessment instruments adopted under Subchapter B, Chapter 39, and
2-20     on compliance with any accountability provision specified by the
2-21     charter, by a deadline or at intervals specified by the charter;
2-22                 (4)  establish the level of student performance that is
2-23     considered acceptable for purposes of Subdivision (3);
2-24                 (5)  specify any basis, in addition to a basis
2-25     specified by this subchapter, on which the charter may be placed on
2-26     probation or revoked or on which renewal of the charter may be
2-27     denied;
 3-1                 (6)  prohibit discrimination in admission policy on the
 3-2     basis of sex, national origin, ethnicity, religion, disability,
 3-3     academic or athletic ability, or the district the child would
 3-4     otherwise attend in accordance with this code, although the charter
 3-5     may provide for the exclusion of a student who has a documented
 3-6     history of a criminal offense, a juvenile court adjudication, or
 3-7     discipline problems under Subchapter A, Chapter 37;
 3-8                 (7)  specify the grade levels to be offered;
 3-9                 (8)  describe the governing structure of the program;
3-10                 (9)  specify the qualifications to be met by
3-11     professional employees of the program;
3-12                 (10)  describe the process by which the person
3-13     providing the program will adopt an annual budget;
3-14                 (11)  describe the manner in which an annual audit of
3-15     the financial and programmatic operations of the program is to be
3-16     conducted, including the manner in which the person providing the
3-17     program will provide information necessary for the school district
3-18     in which the program is located to participate, as required by this
3-19     code or by State Board of Education rule, in the Public Education
3-20     Information Management System (PEIMS);
3-21                 (12)  describe the facilities to be used;
3-22                 (13)  describe the geographical area served by the
3-23     program, except as provided by Subsection (b); and
3-24                 (14)  specify any type of enrollment criteria to be
3-25     used.
3-26           (b)  A charter for an open-enrollment charter school program
3-27     that serves only or primarily the children of employees of one or
 4-1     more public or private entities is not required to describe the
 4-2     geographical area served by the program under Subsection (a)(13).
 4-3     The charter must specify the type of enrollment criteria to be used
 4-4     in accordance with Subsection (a)(14), including the name of the
 4-5     public or private entity whose employees' children are served by
 4-6     the program.
 4-7           SECTION 3.  Subchapter F, Chapter 39, Education Code, is
 4-8     amended by adding Section 39.113 to read as follows:
 4-9           Sec. 39.113.  AWARD FOR EMPLOYERS.  (a)  Each year the
4-10     governor shall present the Governor's Award of Excellence for
4-11     Employer Incentives to the public or private employer that makes
4-12     the most significant contribution to early childhood or public
4-13     primary or secondary education.
4-14           (b)  The governor shall appoint five persons to serve as
4-15     members of the Governor's Award of Excellence for Employer
4-16     Incentives Committee.  The committee shall evaluate the
4-17     contribution of employers in supporting or providing:
4-18                 (1)  early childhood education;
4-19                 (2)  education for students in kindergarten through
4-20     grade 12;
4-21                 (3)  training programs for students preparing for the
4-22     graduate equivalency examination;
4-23                 (4)  instruction for students learning English as a
4-24     second language; or
4-25                 (5)  school facilities.
4-26           (c)  The committee shall recommend to the governor one or
4-27     more employers to receive the Governor's Award of Excellence for
 5-1     Employer Incentives.
 5-2           (d)  To be considered for an award under this section, an
 5-3     employer must apply to the committee on a form and within the
 5-4     period prescribed by the committee.
 5-5           SECTION 4.   Chapter 171, Tax Code, is amended by adding
 5-6     Subchapter O to read as follows:
 5-7            SUBCHAPTER O.  TAX REFUND FOR ASSISTANCE IN EDUCATION
 5-8           Sec. 171.721.  ENTITLEMENT.  A corporation is entitled to a
 5-9     refund in the amount and under the conditions and limitations
5-10     provided by this subchapter against the tax imposed under this
5-11     chapter.
5-12           Sec. 171.722.  SPONSORING OR OPERATING EMPLOYEE EARLY
5-13     CHILDHOOD OR KINDERGARTEN-GRADE 12 PROGRAMS.  Subject to
5-14     readjustment under Section 171.728, a corporation is entitled to a
5-15     refund of 50 percent of the amount spent for a privilege period in
5-16     sponsoring or operating early childhood or kindergarten through
5-17     grade 12 programs for the children of its employees.
5-18           Sec. 171.723.  PROVISION OF FACILITIES FOR SCHOOLS.
5-19     (a)  Subject to readjustment under Section 171.728, a corporation
5-20     that provides during a privilege period a free or low-cost facility
5-21     for the benefit of a nonprofit school or a public school, including
5-22     an open-enrollment charter school, in this state is entitled to a
5-23     refund for that privilege period of a portion of the value of
5-24     providing the facility.
5-25           (b)  The amount of the refund is the lesser of:
5-26                 (1)  30 percent of the value of providing the facility;
5-27     or
 6-1                 (2)  an amount determined by guidelines established by
 6-2     the Texas Education Agency and rules adopted by the comptroller.
 6-3           Sec. 171.724.  ADULT EDUCATION.  (a)  A corporation qualifies
 6-4     for a refund for a privilege period if the corporation provides
 6-5     during that privilege period educational training for an employee
 6-6     in:
 6-7                 (1)  a program to prepare for the high school graduate
 6-8     equivalency examination; or
 6-9                 (2)  an English as a second language program.
6-10           (b)  The programs described in Subsection (a)  must be
6-11     approved by the Texas Education Agency.
6-12           (c)  The amount of the refund is the lesser of:
6-13                 (1)  25 percent of the actual cost of the training per
6-14     full-time equivalent student; or
6-15                 (2)  $85 for each employee who successfully completes a
6-16     program described in Subsection (a).
6-17           Sec. 171.725.  ACCOUNTING YEAR.  If a corporation's
6-18     accounting year does not correspond to the privilege period, the
6-19     base amount and any other amount used to calculate the refund shall
6-20     be multiplied by a ratio the numerator of which is the number of
6-21     days in the corporation's accounting year that are also in the
6-22     privilege period and the denominator of which is the number of days
6-23     in the privilege period.
6-24           Sec. 171.726.  APPLICATION.  (a)  A corporation must apply
6-25     for a refund under this subchapter on or with the tax report for
6-26     the period for which the refund is claimed.
6-27           (b)  The comptroller shall promulgate a form for the
 7-1     application for the refund.  A corporation must use this form in
 7-2     applying for the refund.
 7-3           Sec. 171.727.  DETERMINATION OF TOTAL AMOUNT OF REFUNDS.  The
 7-4     comptroller shall determine the total amount of refunds claimed
 7-5     under Sections 171.722 and 171.723 for a tax year on all reports
 7-6     that are filed on or before November 15.
 7-7           Sec. 171.728.  ADJUSTMENT AND PAYMENT OF REFUND.  (a)  On or
 7-8     before December 31 of a tax year, the comptroller shall send to a
 7-9     corporation entitled to a refund under this subchapter:
7-10                 (1)  the full amount of the refund determined under
7-11     Section 171.722 if the amount under Section 171.727 for Section
7-12     171.722 is less than or equal to $2 million; or
7-13                 (2)  a portion of the refund determined under Section
7-14     171.722 in accordance with Subsection (b) if the amount under
7-15     Section 171.727 for Section 171.722 is greater than $2 million.
7-16           (b)  If the amount under Section 171.727 for Section 171.722
7-17     is greater than $2 million, the comptroller shall determine the
7-18     amount of a corporation's refund by multiplying the amount of the
7-19     corporation's refund determined under Section 171.722 by a
7-20     fraction:
7-21                 (1)  the numerator of which is $2 million; and
7-22                 (2)  the denominator of which is the amount under
7-23     Section 171.727 for Section 171.722.
7-24           (c)  On or before December 31 of a tax year, the comptroller
7-25     shall send to a corporation entitled to a refund under this
7-26     subchapter:
7-27                 (1)  the full amount of the refund determined under
 8-1     Section 171.723 if the amount under Section 171.727 for Section
 8-2     171.723 is less than or equal to $4 million; or
 8-3                 (2)  a portion of the refund determined under Section
 8-4     171.723 in accordance with Subsection (d) if the amount under
 8-5     Section 171.727 for Section 171.723 is greater than $4 million.
 8-6           (d)  If the amount under Section 171.727 for Section 171.723
 8-7     is greater than $4 million, the comptroller shall determine the
 8-8     amount of a corporation's refund by multiplying the amount of the
 8-9     corporation's refund determined under Section 171.723 by a
8-10     fraction:
8-11                 (1)  the numerator of which is $4 million; and
8-12                 (2)  the denominator of which is the amount under
8-13     Section 171.727 for Section 171.723.
8-14           Sec. 171.729.  NO CARRYOVER.  A refund claim may not be
8-15     carried forward to a subsequent reporting period.
8-16           Sec. 171.730.  RULES.  (a)  The Texas Education Agency shall
8-17     adopt rules relating to eligibility for refunds under this
8-18     subchapter.
8-19           (b)  The comptroller shall adopt rules relating to the
8-20     submission of refund claims and payment of the claims under this
8-21     subchapter.
8-22           SECTION 5.  The Governor's Award of Excellence for Employer
8-23     Incentives Committee shall adopt an application form  for purposes
8-24     of Section 39.113, Education Code, as added by this Act, not later
8-25     than August 30, 2000.
8-26           SECTION 6.  (a)  Except as provided by Subsection (b) of this
8-27     section, this Act takes effect immediately.
 9-1           (b)  Section 3 of this Act takes effect January 1, 2001, and
 9-2     applies only to:
 9-3                 (1)  a report originally due on or after January 1,
 9-4     2001; and
 9-5                 (2)  an expense or payment made on or after January 1,
 9-6     2001.
 9-7           SECTION 7.  The importance of this legislation and the
 9-8     crowded condition of the calendars in both houses create an
 9-9     emergency and an imperative public necessity that the
9-10     constitutional rule requiring bills to be read on three several
9-11     days in each house be suspended, and this rule is hereby suspended,
9-12     and that this Act take effect and be in force according to its
9-13     terms, and it is so enacted.