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A BILL TO BE ENTITLED
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AN ACT
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relating to the funding and operation of open-enrollment charter |
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schools. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 12.106, Education Code, is amended by |
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adding Subsections (d) and (e) to read as follows: |
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(d) A charter holder is entitled to receive funding under |
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this section for the open-enrollment charter school only if the |
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charter holder: |
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(1) provides information for the Public Education |
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Information Management System (PEIMS) as required by this chapter |
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or by commissioner rule; |
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(2) submits to the commissioner appropriate fiscal and |
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financial records as required by this chapter or by commissioner |
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rule; and |
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(3) receives an unqualified opinion in the most recent |
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independent auditor's report of the school's finances. |
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(e) The commissioner shall suspend the funding of a charter |
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holder that fails to comply with a rule adopted under Subsection (c) |
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until the commissioner determines that the charter holder: |
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(1) is in compliance or has cured any noncompliance; |
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and |
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(2) has adopted adequate procedures to prevent future |
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noncompliance. |
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SECTION 2. Section 12.116, Education Code, is amended by |
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adding Subsection (a-1) and amending Subsection (b) to read as |
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follows: |
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(a-1) The commissioner shall revoke the charter of an |
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open-enrollment charter school in accordance with the procedure |
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adopted under Subsection (a) if the school is insolvent as a result |
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of recovery of over-allocated state funds under Section 42.258(a). |
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(b) The commissioner shall revoke the charter of an |
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open-enrollment charter school without a hearing if each campus |
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operated under the school's charter has been ordered closed under |
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Section 39.131(a)(10) or under Section 39.1324(d), (e), or (f). |
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[The procedure adopted under Subsection (a) must provide an
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opportunity for a hearing to the charter holder and to parents and
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guardians of students in the school. A hearing under this
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subsection must be held at the facility at which the program is
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operated.] |
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SECTION 3. Section 39.1324(f), Education Code, is amended |
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to read as follows: |
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(f) If a campus, other than an open-enrollment charter |
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school campus, is considered academically unacceptable for two |
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consecutive school years after the campus is reconstituted under |
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Subsection (a), the commissioner shall order closure of the campus |
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or pursue alternative management under Section 39.1327. If a |
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campus of an open-enrollment charter school is considered |
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academically unacceptable for two consecutive school years after |
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the campus is reconstituted under Subsection (a), the commissioner |
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shall order closure of the campus. |
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SECTION 4. Sections 39.202 and 39.203, Education Code, are |
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amended to read as follows: |
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Sec. 39.202. DEVELOPMENT AND IMPLEMENTATION. (a) The |
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commissioner shall, in consultation with the comptroller, develop |
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and implement a financial accountability rating system for school |
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districts and open-enrollment charter schools in this state that: |
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(1) distinguishes among school districts and |
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open-enrollment charter schools based on levels of financial |
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performance; and |
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(2) includes procedures to: |
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(A) provide additional transparency to public |
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education finance; and |
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(B) enable the commissioner and school district |
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and open-enrollment charter school administrators to provide |
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meaningful financial oversight and improvement. |
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(b) The system must include uniform indicators adopted by |
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the commissioner by which to measure a district's or |
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open-enrollment charter school's financial management performance. |
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Sec. 39.203. REPORTING. (a) The commissioner shall |
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develop, as part of the system, a reporting procedure under which: |
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(1) each school district and open-enrollment charter |
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school is required to prepare and distribute an annual financial |
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management report; and |
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(2) the public is provided an opportunity to comment |
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on the report at a hearing. |
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(b) The annual financial management report must include: |
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(1) a description of the district's or school's |
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financial management performance based on a comparison, provided by |
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the agency, of the district's or school's performance on the |
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indicators adopted under Section 39.202(b) to: |
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(A) state-established standards; and |
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(B) the district's or school's previous |
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performance on the indicators; and |
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(2) any descriptive information required by the |
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commissioner. |
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(c) The report may include: |
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(1) information concerning, if applicable, the |
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district's or school's: |
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(A) financial allocations; |
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(B) tax collections; |
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(C) financial strength; |
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(D) operating cost management; |
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(E) personnel management; |
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(F) debt management; |
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(G) facility acquisition and construction |
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management; |
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(H) cash management; |
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(I) budgetary planning; |
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(J) overall business management; |
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(K) compliance with rules; and |
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(L) data quality; and |
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(2) any other information the board of trustees |
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determines to be necessary or useful. |
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(d) The board of trustees of each school district and the |
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governing body of each open-enrollment charter school shall hold a |
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public hearing on the report. The board shall give notice of the |
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hearing to, as applicable, owners of real property in the district |
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and to parents of district students or to owners of real property in |
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the district in which the open-enrollment charter school is located |
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and to the parents of school students. In addition to other notice |
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required by law, notice of the hearing must be provided: |
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(1) to a newspaper of general circulation in the |
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district; and |
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(2) through electronic mail to media serving the |
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district. |
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(e) After the hearing, the report shall be disseminated in |
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the district or in the district in which the open-enrollment |
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charter school is located in the manner prescribed by the |
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commissioner. |
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SECTION 5. Subchapter A, Chapter 46, Education Code, is |
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amended by adding Sections 46.014 and 46.015 to read as follows: |
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Sec. 46.014. INSTRUCTIONAL FACILITIES ALLOTMENT FOR |
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OPEN-ENROLLMENT CHARTER SCHOOLS. (a) In this section, "charter |
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holder" has the meaning assigned by Section 12.1012. |
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(b) In accordance with this section, a charter holder is |
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initially eligible for an instructional facilities allotment under |
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this section for a school year for a campus of an open-enrollment |
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charter school for which the charter holder has been granted a |
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charter if: |
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(1) the campus has for the two preceding school years |
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been rated as recognized or exemplary under Subchapter D, Chapter |
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39; and |
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(2) the charter holder has satisfied generally |
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accepted accounting standards of fiscal management as evidenced by |
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an unqualified opinion in the most recent independent auditor's |
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report of the financial records of the charter holder. |
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(c) After an open-enrollment charter school campus has |
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satisfied the eligibility requirement under Subsection (b)(1) and |
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receives an allotment under this section, the campus remains |
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eligible for an allotment unless the campus receives an |
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accountability rating of academically acceptable or below under |
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Subchapter D, Chapter 39, for three consecutive school years. To |
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regain eligibility, the campus must satisfy the requirement under |
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Subsection (b)(1). |
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(d) The commissioner annually shall review the eligibility |
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of an open-enrollment charter school campus for purposes of this |
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section. |
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(e) The amount of an allotment under this section is an |
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amount established by the commissioner, not to exceed $1,000 or a |
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different amount provided by appropriation, for each student in |
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average daily attendance during the preceding school year at the |
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open-enrollment charter school campus. |
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(f) A charter holder who receives funds under this section |
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may use the funds only for an open-enrollment charter school campus |
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for which the funds were paid under Subsection (e) and only to: |
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(1) purchase real property on which to construct an |
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instructional facility for the campus; |
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(2) purchase, lease, construct, expand, or renovate |
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instructional facilities for the campus; |
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(3) pay debt service in connection with instructional |
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facilities purchased or improved for the campus; or |
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(4) maintain and operate instructional facilities for |
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the campus. |
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(g) A decision of the commissioner under this section is |
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final and may not be appealed. |
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(h) The commissioner shall by rule establish procedures to |
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ensure that funds a charter holder claims to be using for purposes |
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of Subsection (f)(3) are used only for that purpose. |
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(i) Sections 12.107 and 12.1161 apply to funds allotted |
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under this section as though the funds were received under |
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Subchapter D, Chapter 12. Section 12.128 applies to property |
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purchased with funds allotted under this section as though the |
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property were purchased with funds received under Subchapter D, |
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Chapter 12. |
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Sec. 46.015. ADDITIONAL ASSISTANCE FOR OPEN-ENROLLMENT |
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CHARTER SCHOOL FACILITIES. (a) In this section, "charter holder" |
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has the meaning assigned by Section 12.1012. |
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(b) This section applies only to a charter holder that is |
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not eligible for an allotment under Section 46.014. A charter |
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holder is eligible for an instructional facilities allotment under |
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this section for a school year for a campus of an open-enrollment |
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charter school for which the charter holder has been granted a |
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charter if, as determined by the commissioner, the campus: |
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(1) has a current academic accountability rating of |
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acceptable, recognized, or exemplary under Subchapter D, Chapter |
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39; |
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(2) does not have an accreditation rating of |
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accredited-warned or accredited-probation; |
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(3) meets two or more additional academic requirements |
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determined by the commissioner from among the standards specified |
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by Section 39.0721(c); |
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(4) demonstrates the ability to finance a substantial |
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portion of the cost of the instructional facility and the inability |
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to fully pay the costs of the instructional facility, as determined |
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by the commissioner under commissioner rule; and |
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(5) satisfies any other requirement required under |
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commissioner rule. |
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(c) The commissioner shall use at least 10 percent of the |
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total amount of funds available for purposes of allotments under |
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Section 46.014 for allotments under this section. The amount of an |
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allotment under this section is an amount established by the |
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commissioner, based on the amount of funds available for the |
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purpose, for each student in average daily attendance during the |
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preceding school year at the open-enrollment charter school campus. |
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(d) Sections 46.014(f) and (h) apply to the use of funds a |
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charter holder receives under this section as if the funds were |
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received under Section 46.014. |
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(e) A decision of the commissioner under this section is |
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final and may not be appealed. |
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(f) Sections 12.107 and 12.1161 apply to funds allotted |
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under this section as though the funds were received under |
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Subchapter D, Chapter 12. Section 12.128 applies to property |
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purchased with funds allotted under this section as though the |
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property were purchased with funds received under Subchapter D, |
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Chapter 12. |
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SECTION 6. Sections 12.115(b) and 46.012, Education Code, |
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are repealed. |
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SECTION 7. This Act applies beginning with the 2009-2010 |
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school year. |
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SECTION 8. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2009. |