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Amend CSSB 1108 by adding the following appropriately 
numbered SECTIONS and renumbering the subsequent SECTIONS of the 
bill accordingly:
	SECTION ____.  Section 29.903, Education Code, as added by 
Chapter 944, Acts of the 77th Legislature, Regular Session, 2001, 
is renumbered as Section 29.909, Education Code, and is amended to 
read as follows:
	Sec. 29.909 [29.903].  ELECTRONIC COURSES.  (a)  In this 
section, "electronic course" means an educational program or 
course:
		(1)  that includes use of [available to students 
primarily through] the Internet or other electronic media; and
		(2)  in which a student and a teacher are in different 
locations for a majority of the student's instructional period
[enrolled in the course is not physically present in the classroom 
for all or part of the course].
	(b)  The commissioner shall implement a program under which a 
school district may offer [an] electronic courses [course] to 
students enrolled in the district or to students enrolled in 
another district, as provided by an agreement between the 
districts.  A district may not require a student to enroll in an 
electronic course.  The district may offer the electronic courses 
through a designated campus or through a full-time program serving 
students throughout the district.
	(c)  The commissioner shall select school districts to 
participate in the program based on applications submitted by the 
districts.  The commissioner may not require a district to 
participate in the program.  The commissioner may determine the 
number of districts permitted to participate in the program, 
provided that the commissioner shall to the extent possible permit 
the participation of rural and urban districts with a higher than 
average:
		(1)  number of at-risk students, as determined by the 
commissioner;         
		(2)  dropout rate; or                                                         
		(3)  population of underserved gifted and talented 
students, as determined by the commissioner.
	(d)  A school district seeking to participate in the program 
must submit a written application to the commissioner not later 
than July 1 preceding the school year the district proposes to begin 
participation [participate] in the program, or an earlier date set 
by the commissioner.  The application must include:
		(1)  a proposed budget for the program;                                       
		(2)  a method to be used to verify student attendance;                        
		(3)  [an accountability plan;                                
		[(4)  a description of each electronic course to be 
offered by the district;
		[(5)  a description of the students expected to be 
enrolled in each electronic course;
		[(6)]  any requested waiver of a requirement, 
restriction, or prohibition imposed by this code or by a rule of the 
State Board of Education or the commissioner, [;] and
		[(7)]  the period for which any requested waiver [under 
Subdivision (6)] is proposed to be in effect; and
		(4)  the information required under Subsection (f).                    
	(e)  The commissioner may collect from each district that 
submits an application under Subsection (d) a reasonable fee 
sufficient to pay the costs of administering this section.
	(f)  Not later than a date determined by the commissioner, 
each school district participating in the program shall create and 
maintain on the district's Internet website an "informed choice" 
report in a format determined by the commissioner.  The agency shall 
maintain on its Internet website a link to each district report 
under this subsection.  Each report must include a description of:
		(1)  each course of instruction offered to students in 
the program, including the number of lessons, the expected duration 
of each lesson, and a description of each lesson that requires use 
of a computer;
		(2)  all materials required for each course offered in 
the program;  
		(3)  the process used to ensure that each course meets 
the essential knowledge and skills requirements under Subchapter A, 
Chapter 28, including any consultation with a district curriculum 
specialist;
		(4)  the process used to place students in the 
appropriate academic levels of the program, including:
			(A)  sample placement evaluations;                                    
			(B)  information related to each person 
responsible for placement of a student;
			(C)  the circumstances in which a student may be 
placed in different academic levels for different course subjects 
during a school year; and
			(D)  the circumstances in which a student may 
complete more than one course level during a school year;
		(5)  any technology provided by the program to each 
student enrolled in the program, including any computer, computer 
software, or Internet access;
		(6)  the method used to report attendance in the 
program;            
		(7)  the method used to authenticate student course 
work and attendance;
		(8)  the location and content of each scheduled meeting 
between parents or guardians of students enrolled in the program 
and teachers or other school officials, and the method used to 
notify parents and guardians of the time and location of each 
meeting;
		(9)  the program policies relating to:                                 
			(A)  computer security and privacy; and                               
			(B)  truancy, absences, discipline, withdrawal, 
and expulsion of students;
		(10)  any extracurricular activities provided by the 
program, including activities held on a campus in the school 
district;
		(11)  the teaching model used by the program, 
including:             
			(A)  each teacher's responsibilities;                                 
			(B)  minimum teacher qualifications;                                  
			(C)  minimum hours of training provided to 
teachers;                
			(D)  average and maximum student/teacher ratios;                      
			(E)  hours of teacher availability; and                               
			(F)  for each grade level, minimum and expected 
amounts of contact between teachers and parents and between 
teachers and students;
		(12)  any academic services that the program expects a 
student's parent or guardian to provide to the student;
		(13)  each standardized assessment instrument, in 
addition to any assessment instrument required under Chapter 39, 
that the student is required to complete during the school year and, 
if available, the location for administration of the instrument;
		(14)  a summary of the results of each assessment 
instrument administered to students in the program during the 
school year preceding the year the report is submitted; and
		(15)  the school year calendar for the program, 
including any options for continued participation outside of the 
standard school district calendar.
	(g)  A school district is entitled to receive federal, state, 
and local funding for a student enrolled in an electronic course in 
an amount equal to the funding the district is otherwise entitled to 
receive for a student enrolled in the district.  A school district 
may calculate the average daily attendance of a student enrolled in 
an electronic course based on:
		(1)  hours of contact with the student;                                
		(2)  the student's successful completion of a course; 
or             
		(3)  a method approved by the commissioner.                            
	(h) [(e)]  The commissioner may waive any requirement, 
restriction, or prohibition imposed by this code [relating to the 
computation of daily attendance] to the extent necessary to 
implement a program under this section.
	(i) [(f)]  The commissioner may cooperate with the 
comptroller, the Department of Information Resources, or any other 
state agency or commission in adopting technical standards for 
auditing or verifying student attendance in an electronic course.
	(j) [(g)]  Not later than December 1, 2006 [2002], the 
commissioner shall submit a report to the lieutenant governor and 
the speaker of the house of representatives.  The report must 
include:
		(1)  [proposed] methods proposed by school districts
for funding electronic courses, including an evaluation of the 
fiscal costs or benefits of each method;
		(2)  available methods of verifying student attendance 
in an electronic course, including biometric attendance methods;
		(3)  any security or privacy issues involved in 
providing an electronic course;
		(4)  the educational benefits of an electronic course;                        
		(5)  a list of any waiver requests submitted to the 
commissioner by school districts under Subsection (d)(3) [(d)(6)]; 
and
		(6)  a list of any provisions waived by the 
commissioner in the implementation of a program under this section.
	(k) [(h)]  This subsection and Subsection (j) expire January
[section expires September] 1, 2007 [2003].
	SECTION ____.  Section 29.909(e), Education Code, as added 
by this Act, applies only to a district that applies for 
participation in the electronic course program under Section 
29.909, Education Code, as renumbered by this Act, on or after the 
effective date of this Act.