H.B. 1202 78(R)    BILL ANALYSIS


H.B. 1202
By: Dutton
Public Education
Committee Report (Unamended)



BACKGROUND
 
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%, charter schools often enroll enough students to meet a 100% 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. 


PURPOSE

House Bill 1202 prohibits the commissioner of education from recovering
funds paid to charter schools for students enrolled in excess of the
number authorized by the charter contract. 


RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency, or
institution. 


ANALYSIS

House Bill 1202 amends the Education Code to prohibit the commissioner of
education from garnishing or recovering funds paid to an open-enrollment
charter school if: the number of students enrolled in the school year
exceeded the student enrollment prescribed by the school's charter during
that period, the charter school received funding based on actual student
enrollment, and  the charter school used all funds to provide educational
services to students. 


EFFECTIVE DATE

Upon passage, or, if the Act does not receive the necessary vote, the Act
takes effect September 1, 2003.