By:  Truitt                                                       H.B. No. 1564



A BILL TO BE ENTITLED

AN ACT

relating to the use of municipal funds for the acquisition of land 
or acquisition, construction, expansion, or renovation of 
facilities for an open-enrollment charter school.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 12.101(a), Education Code, is amended to 
read as follows:
	(a)  In accordance with this subchapter, the State Board of 
Education may grant a charter on the application of an eligible 
entity for an open-enrollment charter school to operate in a 
facility of a commercial or nonprofit entity, an eligible entity,
or a school district, including a home-rule school district.  In 
this subsection, "eligible entity" means:
		(1)  an institution of higher education as defined 
under Section 61.003;    
		(2)  a private or independent institution of higher 
education as defined under Section 61.003;
		(3)  an organization that is exempt from taxation under  
Section 501(c)(3), Internal Revenue Code of 1986 (26 U.S.C. Section 
501(c)(3));  or
		(4)  a governmental entity.                                                   
	SECTION 2.  Subchapter D, Chapter 12, Education Code, is 
amended by adding Section 12.131 to read as follows:
	Sec. 12.131.  USE OF MUNICIPAL FUNDS FOR CHARTER SCHOOL LAND 
OR FACILITIES.  A municipality to which a charter is granted under 
this subchapter may borrow funds, issue obligations, or otherwise 
spend its funds to acquire land or acquire, construct, expand, or 
renovate school buildings or facilities or related improvements for 
its open-enrollment charter school in the same manner the 
municipality is authorized to borrow funds, issue obligations, or 
otherwise spend its funds in connection with any other public works 
project.
	SECTION 3.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2003.