SRC-JLB H.B. 1202 78(R)   BILL ANALYSIS


Senate Research Center   H.B. 1202
78R6042 BDH-DBy: Dutton (Van de Putte)
Education
5/2/2003
Engrossed


DIGEST AND PURPOSE 

Currently, charter school contracts stipulate the maximum allowable
enrollment of a particular charter school.  In compliance with this
contract, the Texas Education Agency (TEA) is authorized to  recover
excess funds when a charter school exceeds the contract enrollment number.
However, charter schools receive state funds based on the average daily
attendance (ADA) of students.  Because average daily attendance is rarely
100 percent, charter schools often enroll enough students to meet a 100
percent ADA based on the contract enrollment number. This increase in ADA
corresponds to a charter school enrolling more students than the limit
established under the charter contract.  H.B. 1202 prohibits the
commissioner from garnishing or otherwise recovering funds paid to an
open-enrollment charter school for students enrolled in excess of the
number authorized by the charter contract. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Subchapter D, Chapter 12, Education Code, by adding
Section 12.1061, as follows: 
 
Sec. 12.1061.  RECOVERY OF CERTAIN FUNDS.  Prohibits the commissioner from
garnishing or otherwise recovering funds paid to an open-enrollment
charter school under Section 12.106 if certain conditions exist. 
  
SECTION 2.  Effective date:  upon passage or September 1, 2003.