80R14292 ESH-D
 
  By: Madden, Eissler, et al. H.B. No. 277
 
Substitute the following for H.B. No. 277:
 
  By:  Mowery C.S.H.B. No. 277
 
A BILL TO BE ENTITLED
AN ACT
relating to the creation and operation of a state virtual school
network to provide education to students through electronic means.
       BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
       SECTION 1.  Subtitle F, Title 2, Education Code, is amended
by adding Chapter 30A to read as follows:
CHAPTER 30A.  STATE VIRTUAL SCHOOL NETWORK
SUBCHAPTER A.  GENERAL PROVISIONS
       Sec. 30A.001.  DEFINITIONS.  In this chapter:
             (1)  "Administering authority" means the entity
designated under Section 30A.053 to administer the state virtual
school network.
             (2)  "Board" means the State Board of Education.
             (3)  "Course" means a course of study that meets the
requirements of Section 30A.104.
             (4)  "Electronic course" means a course in which:
                   (A)  instruction and content are delivered
primarily over the Internet;
                   (B)  a student and teacher are in different
locations for a majority of the student's instructional period;
                   (C)  most instructional activities take place in
an online environment;
                   (D)  the online instructional activities are
integral to the academic program;
                   (E)  extensive communication between a student
and a teacher and among students is emphasized; and
                   (F)  a student is not required to be located on the
physical premises of a school district or open-enrollment charter
school.
             (5)  "Electronic diagnostic assessment" means a
formative or instructional assessment used in conjunction with an
electronic course to ensure that:
                   (A)  a teacher of an electronic course has
information related to a student's academic performance in that
course; and
                   (B)  a student enrolled in an electronic course
makes documented progress in mastering the content of the course.
             (6)  "Electronic professional development course"
means a professional development course in which instruction and
content are delivered primarily over the Internet.
             (7)  "Provider school district or school" means a
school district or open-enrollment charter school that provides an
electronic course through the state virtual school network to:
                   (A)  students enrolled in that district or school;
or
                   (B)  students enrolled in another school district
or school.
       Sec. 30A.002.  STUDENT ELIGIBILITY.  (a)  A student is
eligible to enroll in a course provided through the state virtual
school network only if the student:
             (1)  is younger than 21 years of age on September 1 of
the school year;
             (2)  has not graduated from high school; and
             (3)  is otherwise eligible to enroll in a public school
in this state.
       (b)  A student is eligible to enroll full-time in courses
provided through the state virtual school network only if:
             (1)  the student was enrolled in a public school in this
state in the preceding school year; or
             (2)  the student:
                   (A)  is a dependent of a member of the United
States military;
                   (B)  was previously enrolled in high school in
this state; and
                   (C)  does not reside in this state due to a
military deployment or transfer.
       Sec. 30A.003.  PROVISION OF COMPUTER EQUIPMENT OR INTERNET
SERVICE.  This chapter does not:
             (1)  require a school district, an open-enrollment
charter school, a provider school district or school, or the state
to provide a student with home computer equipment or Internet
access for a course provided through the state virtual school
network; or
             (2)  prohibit a school district or open-enrollment
charter school from providing a student with home computer
equipment or Internet access for a course provided through the
state virtual school network.
       Sec. 30A.004.  APPLICABILITY OF CHAPTER.  (a)  Except as
provided by Subsection (c), this chapter does not affect the
provision of a course to a student while the student is located on
the physical premises of a school district or open-enrollment
charter school.
       (b)  This chapter does not affect the provision of distance
learning courses offered under other law.
       (c)  A school district or open-enrollment charter school may
choose to participate in providing an electronic course or an
electronic diagnostic assessment under this chapter to a student
who is located on the physical premises of a school district or
open-enrollment charter school.
       Sec. 30A.005.  TELECOMMUNICATIONS OR INFORMATION SERVICES
NETWORK NOT CREATED.  This chapter does not create or authorize the
creation of a telecommunications or information services network.
[Sections 30A.006-30A.050 reserved for expansion]
SUBCHAPTER B.  ADMINISTRATIVE PROVISIONS
       Sec. 30A.051.  GOVERNANCE OF NETWORK.  (a)  The commissioner
shall:
             (1)  administer the state virtual school network; and
             (2)  ensure:
                   (A)  high-quality education for students in this
state who are being educated through electronic courses provided
through the state virtual school network; and
                   (B)  equitable access by students to those
courses.
       (b)  The commissioner may adopt rules necessary to implement
this chapter.
       Sec. 30A.052.  GENERAL POWERS AND DUTIES OF COMMISSIONER.  
(a)  The commissioner shall prepare or provide for preparation of a
biennial budget request for the state virtual school network for
presentation to the legislature.
       (b)  The commissioner has exclusive jurisdiction over the
assets of the network and shall administer and spend appropriations
made for the benefit of the network.
       (c)  The commissioner shall:
             (1)  employ a limited number of administrative
employees in connection with the network; and
             (2)  contract with a regional education service center
for the service center to operate the network.
       Sec. 30A.053.  DESIGNATION OF ADMINISTERING AUTHORITY. The
commissioner shall designate an agency employee or a group of
agency employees to act as the administering authority for the
state virtual school network.
       Sec. 30A.054.  REPORTS.  (a)  The commissioner shall prepare
a report for each fiscal year documenting activities of the state
virtual school network in accordance with this chapter. Not later
than January 31 of each year, the commissioner shall file the report
for the preceding fiscal year with the governor, the lieutenant
governor, and the speaker of the house of representatives.
       (b)  To the extent permitted under the Family Educational
Rights and Privacy Act of 1974 (20 U.S.C. Section 1232g):
             (1)  the report under Subsection (a) must include the
results of assessment instruments administered to students
enrolled in electronic courses under this chapter; and
             (2)  the commissioner shall make information relating
to the performance of students enrolled in electronic courses under
this chapter available to school districts, open-enrollment
charter schools, and the public.
       (c)  The commissioner shall investigate alternative models
for funding the operation of the state virtual school network and
for student attendance in electronic courses provided through the
network. Not later than December 1, 2008, the commissioner shall
submit a report to each member of the legislature that recommends
alternative funding models for the state virtual school network to
ensure the quality of electronic courses provided through the
network, increase access through the network to more courses,
enable more students to take courses through the network, sustain
the network's operations, and increase the network's ability to
accommodate greater numbers of students and provide greater numbers
of courses.  This subsection expires January 15, 2009.
       Sec. 30A.055.  LIMITATIONS ON ADMINISTERING AUTHORITY
POWERS.  The administering authority may not provide educational
services directly to a student.
       Sec. 30A.056.  CONTRACTS WITH VIRTUAL SCHOOL SERVICE
PROVIDERS.  (a)  Each contract between a school district or
open-enrollment charter school and the administering authority
must:
             (1)  provide that the administering authority may
cancel the contract without penalty if legislative authorization
for the district or school to offer an electronic course through the
state virtual school network is revoked; and
             (2)  be submitted to the commissioner.
       (b)  A contract submitted under this section is public
information for purposes of Chapter 552, Government Code.
[Sections 30A.057-30A.100 reserved for expansion]
SUBCHAPTER C.  PROVISION OF ELECTRONIC COURSES
       Sec. 30A.101.  ELIGIBILITY TO ACT AS PROVIDER SCHOOL
DISTRICT OR SCHOOL.  (a)  A school district is eligible to act as a
provider school district under this chapter only if the district is
rated academically acceptable or higher under Section 39.072.
       (b)  An open-enrollment charter school is eligible to act as
a provider school under this chapter only if the school is rated
recognized or higher under Section 39.072, and may serve as a
provider school only:
             (1)  to a student within the school district in which
the school is located or within its service area, whichever is
smaller; or
             (2)  to another student in the state through an
agreement with the administering authority under Section 30A.153.
       Sec. 30A.102.  LISTING OF ELECTRONIC COURSES.  (a)  The
administering authority shall:
             (1)  publish the criteria required by Section 30A.103
for electronic courses that may be offered through the state
virtual school network;
             (2)  using the criteria required by Section 30A.103,
evaluate electronic courses submitted by a provider school district
or school or another entity that owns the rights to an electronic
course to be offered through the network;
             (3)  create a list of electronic courses approved by
the administering authority; and
             (4)  provide public access to the list of approved
electronic courses offered through the network and a detailed
description of the courses that complies with Section 30A.108.
       (b)  To ensure that a full range of electronic courses,
including advanced placement courses, are offered to students in
this state, the administering authority:
             (1)  shall create a list of those subjects and courses
designated by the board under Subchapter A, Chapter 28, for which
the board has identified essential knowledge and skills or for
which the board has designated content requirements under
Subchapter A, Chapter 28;
             (2)  shall enter into agreements with entities that own
the rights to electronic courses to lease, obtain a license for, or
purchase the courses for the purpose of offering the courses
through the state virtual school network; and
             (3)  may develop or authorize the development of
additional electronic courses that:
                   (A)  are needed to complete high school graduation
requirements; and
                   (B)  are not otherwise available through the state
virtual school network.
       Sec. 30A.103.  CRITERIA FOR ELECTRONIC COURSES.  (a)  The
board by rule shall establish an objective standard criteria for an
electronic course to ensure alignment with the essential knowledge
and skills requirements identified or content requirements
established under Subchapter A, Chapter 28.  The criteria may not
permit the administering authority to prohibit provider school
districts or schools from applying for approval for an electronic
course for a course for which essential knowledge and skills have
been identified.
       (b)  The criteria must be consistent with Section 30A.104 and
may not include any requirements that are developmentally
inappropriate for students.
       (c)  The commissioner by rule may:
             (1)  establish additional quality-related criteria for
electronic courses; and
             (2)  provide for a period of public comment regarding
the criteria.
       (d)  The criteria must be in place at least six months before
the administering authority uses the criteria in evaluating an
electronic course under Section 30A.105.
       Sec. 30A.104.  COURSE ELIGIBILITY IN GENERAL. A course
offered through the state virtual school network must:
             (1)  be in a specific subject that is part of the
required curriculum under Section 28.002(a);
             (2)  be aligned with the essential knowledge and skills
identified under Section 28.002(c); and
             (3)  be the equivalent in instructional rigor and scope
to a course that is provided in a traditional classroom setting
during:
                   (A)  a semester of 90 instructional days; and
                   (B)  a school day that meets the minimum length of
a school day required under Section 25.082.
       Sec. 30A.105.  APPROVAL OF ELECTRONIC COURSES.  (a)  The
administering authority shall:
             (1)  establish a schedule for an annual submission and
approval process for electronic courses;
             (2)  evaluate electronic courses to be offered through
the state virtual school network; and
             (3)  not later than August 1 of each year, approve
electronic courses that:
                   (A)  meet the criteria established under Section
30A.103; and
                   (B)  provide the minimum instructional rigor and
scope required under Section 30A.104.
       (b)  The administering authority shall establish the cost of
providing an electronic course approved under Subsection (a), which
may not exceed $400 per student per course or $4,800 per full-time
student.
       (c)  A school district, open-enrollment charter school, or
entity that owns the rights to an electronic course that submits an
electronic course to the administering authority for approval must
pay a fee in an amount established by the commissioner as sufficient
to recover the reasonable costs to the administering authority in
evaluating and approving electronic courses.
       (d)  The administering authority shall waive the fee
required by Subsection (c) if a school district or open-enrollment
charter school applies for approval of an electronic course that
was developed independently by the district or school.  For
purposes of this subsection, an electronic course is developed
independently by a district or school if a district or school
employee is responsible for developing substantially each aspect of
the course, including:
             (1)  determining the curriculum elements to be included
in the course;
             (2)  selecting any instructional materials for the
course;
             (3)  determining the manner in which instruction is to
be delivered;
             (4)  creating a lesson plan or similar description of
the instructional aspects of the course;
             (5)  determining any special projects or assignments a
student in the course must complete; and
             (6)  determining the manner in which a student's
progress in the course will be measured.
       Sec. 30A.106.  APPEAL TO COMMISSIONER.  (a)  A provider
school district or school or an entity that owns the rights to an
electronic course may appeal to the commissioner the administering
authority's refusal to approve an electronic course under Section
30A.105.
       (b)  If the commissioner determines that the administering
authority's evaluation did not follow the criteria or was otherwise
irregular, the commissioner may overrule the administering
authority and place the course on a list of approved courses.  The
commissioner's decision under this section is final and may not be
appealed.
       Sec. 30A.107.  OPTIONS FOR PROVIDERS AND STUDENTS.  (a)  A
provider school district or school may offer electronic courses to:
             (1)  students who reside in this state; and
             (2)  students who reside outside this state and who
meet the eligibility requirements under Section 30A.002(b).
       (b)  A student who is enrolled in a school district or
open-enrollment charter school in this state as a full-time student
may take one or more electronic courses through the state virtual
school network.
       (c)  A student who resides in this state but who is not
enrolled in a school district or open-enrollment charter school in
this state as a full-time student may, subject to Section 30A.155,
enroll in electronic courses through the state virtual school
network.  A student to whom this subsection applies:
             (1)  may not in any semester enroll in more than two
electronic courses offered through the state virtual school
network;
             (2)  is not considered to be a public school student;
             (3)  must obtain access to a course provided through
the network through the school district or open-enrollment charter
school attendance zone in which the student resides;
             (4)  is not entitled to enroll in a course offered by a
school district or open-enrollment charter school other than an
electronic course provided through the network; and
             (5)  is not entitled to any right, privilege,
activities, or services available to a student enrolled in a public
school, other than the right to receive the appropriate unit of
credit for completing an electronic course.
       (d)  A school district or open–enrollment charter school may
not require a student to enroll in an electronic course.
       Sec. 30A.108.  INFORMED CHOICE REPORTS.  (a)  Not later than
a date determined by the commissioner, the administering authority
shall create and maintain on the state virtual school network's
Internet website an "informed choice" report as provided by
commissioner rule.
       (b)  Each report under this section must describe each
electronic course offered through the state virtual school network
and include information such as course requirements and the school
year calendar for the course, including any options for continued
participation outside of the standard school year calendar.
       Sec. 30A.109.  COMPULSORY ATTENDANCE.  The commissioner by
rule shall adopt procedures for reporting and verifying the
attendance of a student enrolled in an electronic course provided
through the state virtual school network.  The rules may modify:
             (1)  the application of Sections 25.085, 25.086, and
25.087 for a student enrolled in an electronic course; and
             (2)  any other law inconsistent with the provision of
electronic courses.
       Sec. 30A.110.  APPLICABILITY OF ACCOUNTABILITY
REQUIREMENTS.  (a)  Chapter 39 applies to an electronic course
offered by a school district or open-enrollment charter school
through the state virtual school network in the same manner that
that chapter applies to any other course offered by the district or
school.
       (b)  Each student enrolled under this chapter in an
electronic course offered through the state virtual school network
must take any assessment instrument under Section 39.023 that is
administered to students who are provided instruction in the course
material in the traditional classroom setting.  The administration
of the assessment instrument to the student enrolled in the
electronic course must be supervised by a proctor.
       (c)  A school district or open-enrollment charter school
shall report to the commissioner through the Public Education
Information Management System (PEIMS) the results of assessment
instruments administered to students enrolled in an electronic
course offered through the state virtual school network separately
from the results of assessment instruments administered to other
students.
       Sec. 30A.111.  TEACHER QUALIFICATIONS.  Each teacher of an
electronic course offered through the state virtual school network
must:
             (1)  be certified under Subchapter B, Chapter 21, to
teach that course and grade level; and
             (2)  successfully complete the appropriate
professional development course provided under Section 30A.112(a)
before teaching an electronic course offered through the network.
       Sec. 30A.112.  EDUCATOR PROFESSIONAL DEVELOPMENT.  (a)  The
state virtual school network shall provide or authorize providers
of electronic professional development courses or programs to
provide professional development for teachers who are teaching
electronic courses through the network.
       (b)  The state virtual school network may provide or
authorize providers of electronic professional development courses
to provide professional development for:
             (1)  teachers who are teaching subjects or grade levels
for which the teachers are not certified;
             (2)  teachers who must become highly qualified under
Section 1119, No Child Left Behind Act of 2001 (20 U.S.C. Section
6319); or
             (3)  teachers who must become qualified under the
Individuals with Disabilities Education Act (20 U.S.C. Section 1400
et seq.).
       Sec. 30A.113.  CRITERIA FOR ELECTRONIC PROFESSIONAL
DEVELOPMENT COURSES.  The commissioner by rule shall establish
objective standard criteria for quality of an electronic
professional development course provided under Section 30A.112.
       Sec. 30A.114.  REGIONAL EDUCATION SERVICE CENTERS.  The
commissioner by rule shall allow regional education service centers
to participate in the state virtual school network in the same
manner as provider school districts and schools.
       Sec. 30A.115.  ADDITIONAL RESOURCES.  The commissioner by
rule may establish procedures for providing additional resources,
such as an online library, to students and educators served through
the state virtual school network.  The administering authority may
provide the additional resources only if the commissioner receives
an appropriation, gift, or grant sufficient to pay the costs of
providing those resources.
[Sections 30A.116-30A.150 reserved for expansion]
SUBCHAPTER D.  FUNDING
       Sec. 30A.151.  COSTS TO BE BORNE BY STATE.  (a)  Except as
authorized by Section 30A.152 or this section, the state shall pay
the cost of operating the state virtual school network.
       (b)  The operating costs of the state virtual school network
may not be charged to a school district or open-enrollment charter
school.
       (c)  The costs of providing electronic professional
development courses may be paid by state funds appropriated by the
legislature or federal funds that may be used for that purpose.
       (d)  State funds received by a school district or
open-enrollment charter school under this chapter are in addition
to any amounts to which the district or school is entitled to
receive or retain under Chapter 12, 41, or 42 and are not subject to
reduction under any provision of those chapters.
       (e)  State funds provided in connection with the state
virtual school network may not be used in a manner that violates
Section 7, Article I, Texas Constitution.
       Sec. 30A.152.  GRANTS AND FEDERAL FUNDS.  (a)  The
commissioner may accept a grant for purposes of this chapter from a
public or private person and shall use those funds in accordance
with the commissioner's duties regarding the state virtual school
network.
       (b)  The commissioner may accept federal funds for purposes
of this chapter and shall use those funds in compliance with
applicable federal law, regulations, and guidelines.
       Sec. 30A.153.  ALLOCATION OF FUNDS FOR STUDENTS ENROLLED IN
SCHOOL DISTRICTS AND OPEN-ENROLLMENT CHARTER SCHOOLS.  (a)  A
school district or open-enrollment charter school in which a
student is enrolled is entitled to receive state and local funding
for a student enrolled in an electronic course offered through the
state virtual school network in an amount equal to the cost of
providing the electronic course, as established by commissioner
rule, plus 20 percent.
       (b)  As determined by the commissioner for each approved
course, a school district or open-enrollment charter school may
receive payment for a student enrolled in an electronic course
based on the student's:
             (1)  successful progress on or completion of modules of
the course; or
             (2)  successful completion of a course.
       (c)  A provider school district or school, the school
district or open-enrollment charter school in which a student is
enrolled, and the administering authority shall enter into an
agreement related to the payment of the cost of a student's
enrollment in an electronic course.  The payment to a provider
school district or school under this subsection may not exceed the
cost of providing the electronic course, as established by
commissioner rule.
       (d)  The agreement under Subsection (c) must:
             (1)  permit the school district or open-enrollment
charter school in which the student is enrolled as a full-time
student to retain, for the district's or school's administrative
costs, an amount not to exceed 20 percent of the amount of funds the
district or school receives under Subsection (a) in connection with
the student; and
             (2)  identify the services each school district or
open-enrollment charter school is required to provide to the
student.
       (e)  The administering authority, with the approval of the
commissioner, shall adopt a standard agreement under Subsection (c)
that governs payment of funds and other matters relating to a
student's enrollment in an electronic course offered through the
state virtual school network. Each school district or
open-enrollment charter school participating in the state virtual
school network shall use the standard agreement as provided by
Subsection (c) unless:
             (1)  the district or school requests from the
commissioner permission to modify the standard agreement; and
             (2)  the commissioner authorizes the modification.
       Sec. 30A.154.  FUNDING FOR ACCELERATED STUDENTS.  (a)  A
school district or open-enrollment charter school may apply for
additional funding for an accelerated student who is enrolled in
more than the course load taken by a student in the equivalent grade
level in other school districts or open–enrollment charter schools.
       (b)  The commissioner by rule shall set a limit on the total
amount of funding for which an accelerated student is eligible.
       (c)  The legislature in the General Appropriations Act may
limit the amount of funding and the number of courses eligible for
funding under this section.
       Sec. 30A.155.  FEES.  (a)  A school district or
open-enrollment charter school may charge a fee for enrollment in
an electronic course provided through the state virtual school
network to a student who resides in this state and:
             (1)  is enrolled in a school district or
open-enrollment charter school as a full-time student;
             (2)  is enrolled in a course load greater than that
normally taken by students in the equivalent grade level in other
school districts or open-enrollment charter schools; and
             (3)  does not qualify for accelerated student funding
under Section 30A.154.
       (b)  A school district or open-enrollment charter school
shall charge a fee for enrollment in an electronic course provided
through the state virtual school network to a student who resides in
this state and is not enrolled in a school district or
open-enrollment charter school as a full-time student.
       (c)  The amount of a fee charged a student under Subsection
(a) or (b) for each electronic course in which the student enrolls
through the state virtual school network may not exceed the lesser
of:
             (1)  the cost of providing the course; or
             (2)  $400.
       (d)  Except as provided by Subsection (a) or (b), the state
virtual school network may not charge a fee to students for
electronic courses provided through the network.
       SECTION 2.  Chapter 26, Education Code, is amended by adding
Section 26.0031 to read as follows:
       Sec. 26.0031.  RIGHTS CONCERNING STATE VIRTUAL SCHOOL
NETWORK.  (a)  At the time and in the manner that a school district
or open-enrollment charter school informs students and parents
about courses that are offered in the district's or school's
traditional classroom setting, the district or school shall notify
parents and students of the option to enroll in an electronic course
offered through the state virtual school network under Chapter 30A.
       (b)  A school district or open-enrollment charter school in
which a student is enrolled as a full-time student may not
unreasonably deny the request of a parent of a student to enroll the
student in an electronic course offered through the state virtual
school network under Chapter 30A.
       (c)  For purposes of Subsection (b), a school district or
open-enrollment charter school is not considered to have
unreasonably denied a request to enroll a student in an electronic
course if:
             (1)  the district or school can demonstrate that the
course does not meet state standards or standards of the district or
school that are of equivalent rigor as the district's or school's
standards for the same course provided in a traditional classroom
setting;
             (2)  a student attempts to enroll in a course load that:
                   (A)  is inconsistent with the student's high
school graduation plan; or
                   (B)  could reasonably be expected to negatively
affect the student's performance on an assessment instrument
administered under Section 39.023; or
             (3)  the student requests permission to enroll in an
electronic course at a time that is not consistent with the
enrollment period established by the school district or
open-enrollment charter school providing the course.
       (d)  Notwithstanding Subsection (c)(3), a school district or
open-enrollment charter school that provides an electronic course
through the state virtual school network under Chapter 30A shall
make all reasonable efforts to accommodate the enrollment of a
student in the course under special circumstances.
       (e)  A parent may appeal to the commissioner a school
district's or open-enrollment charter school's decision to deny a
request to enroll a student in an electronic course offered through
the state virtual school network.  The commissioner's decision
under this subsection is final and may not be appealed.
       SECTION 3.  (a)  Subject to Subsection (b) of this section,
the commissioner of education shall ensure that the state virtual
school network under Chapter 30A, Education Code, as added by this
Act, begins operations in a manner that allows students to enroll in
electronic courses offered through the network beginning with the
2008-2009 school year.
       (b)  The state virtual school network under Chapter 30A,
Education Code, as added by this Act, shall provide electronic
courses as follows:
             (1)  for the 2008-2009 school year, the network shall
provide electronic courses for grades 9, 10, 11, and 12 only;
             (2)  for the 2009-2010 school year, the network shall
provide electronic courses for the grades identified in Subdivision
(1) of this subsection and grades six, seven, and eight only; and
             (3)  for the 2010-2011 and subsequent school years, the
network shall provide electronic courses for all grades.
       SECTION 4.  This Act takes effect September 1, 2007.