81R6113 CAS-D
 
  By: Jackson H.B. No. 3703
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the establishment, operation, and funding of
  open-enrollment charter schools.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 12.101, Education Code, is amended by
  amending Subsection (b) and adding Subsection (b-1) to read as
  follows:
         (b)  The State Board of Education may grant a charter for an
  open-enrollment charter school only to an applicant that meets any
  financial, governing, and operational standards adopted by the
  commissioner under this subchapter. [The State Board of Education
  may not grant a total of more than 215 charters for an
  open-enrollment charter school.]
         (b-1)  A charter holder may establish one or more new
  open-enrollment charter school campuses under a charter without
  applying for authorization from the State Board of Education if:
               (1)  75 percent or more of the open-enrollment charter
  school campuses operating under the charter are rated as
  academically acceptable or higher under Subchapter D, Chapter 39;
               (2)  either no campus operating under the charter has
  been rated as academically unacceptable for any two of the three
  preceding school years or such a campus has been closed; and
               (3)  the charter holder provides written notice, in the
  time, manner, and form provided by commissioner rule, to the State
  Board of Education and the commissioner of the establishment of any
  campus under this subsection.
         SECTION 2.  Section 12.1012, Education Code, is amended by
  adding Subdivision (7) to read as follows:
               (7)  "Open-enrollment charter school" means a public
  school district operating under a charter granted under this
  subchapter to a charter holder.
         SECTION 3.  Section 12.104, Education Code, is amended by
  amending Subsection (b) and adding Subsection (e) to read as
  follows:
         (b)  An open-enrollment charter school is subject to:
               (1)  a provision of this title establishing a criminal
  offense; and
               (2)  a prohibition, restriction, or requirement, as
  applicable, imposed by this title or a rule adopted under this
  title, relating to:
                     (A)  the Public Education Information Management
  System (PEIMS) to the extent necessary to monitor compliance with
  this subchapter as determined by the commissioner;
                     (B)  criminal history records under Subchapter C,
  Chapter 22;
                     (C)  reading instruments and accelerated reading
  instruction programs under Section 28.006;
                     (D)  satisfactory performance on assessment
  instruments and to accelerated instruction under Section 28.0211;
                     (E)  high school graduation under Section 28.025;
                     (F)  special education programs under Subchapter
  A, Chapter 29;
                     (G)  bilingual education under Subchapter B,
  Chapter 29;
                     (H)  prekindergarten programs under Subchapter E,
  Chapter 29;
                     (I)  extracurricular activities under Section
  33.081;
                     (J)  discipline management practices or behavior
  management techniques under Section 37.0021;
                     (K)  health and safety under Chapter 38;
                     (L)  public school accountability under
  Subchapters B, C, D, and G, Chapter 39, except as provided by
  Subsection (e);
                     (M)  the requirement under Section 21.006 to
  report an educator's misconduct; and
                     (N)  intensive programs of instruction under
  Section 28.0213.
         (e)  A student may be included in computing the dropout or
  completion rate of an open-enrollment charter school for purposes
  of Chapter 39 only after the student has attended the school for 85
  or more school days.
         SECTION 4.  Subchapter D, Chapter 12, Education Code, is
  amended by adding Section 12.1062 to read as follows:
         Sec. 12.1062.  ADDITIONAL FUNDING FOR ACADEMICALLY
  ACCEPTABLE SCHOOLS.  (a) For each school year that an
  open-enrollment charter school is rated academically acceptable
  under Subchapter D, Chapter 39, to the extent that money is
  available that may be used for the purpose, the open-enrollment
  charter school is entitled to funding under this section.
         (b)  Based on the amount of money that is available that may
  be used for the purpose, the commissioner shall establish the
  amount of funds that an open-enrollment charter school will be
  provided under this section, except that the amount:
               (1)  may not exceed $1,000 per student in enrollment;
  and
               (2)  to the extent money is available, must be at least
  $500 per student in enrollment.
         (c)  If there is not sufficient money available to pay $500
  per student to each open-enrollment charter school described by
  Subsection (a), the amount awarded per student for all
  open-enrollment charter schools described by Subsection (a) shall
  be reduced by the same amount.
         (d)  Funds awarded under this section may be used only for
  open-enrollment charter school operations and facilities.
         (e)  The commissioner shall adopt rules as necessary to
  administer this section, including rules to ensure that money
  awarded is used only for a purpose authorized by Subsection (d).
         (f)  Section 12.107 applies to funds awarded under this
  section.
         SECTION 5.  Section 12.1101, Education Code, is amended to
  read as follows:
         Sec. 12.1101.  NOTIFICATION OF CHARTER APPLICATION. The
  commissioner by rule shall adopt a procedure for providing notice
  to the following persons on receipt by the State Board of Education
  of an application for a charter for an open-enrollment charter
  school under Section 12.110 or on receipt by the board and the
  commissioner of notice of the establishment of a campus as
  authorized under Section 12.101(b-1):
               (1)  the board of trustees of each school district from
  which the proposed open-enrollment charter school or campus is
  likely to draw students, as determined by the commissioner; and
               (2)  each member of the legislature that represents the
  geographic area to be served by the proposed school or campus, as
  determined by the commissioner.
         SECTION 6.  Subchapter D, Chapter 12, Education Code, is
  amended by adding Sections 12.134 and 12.135 to read as follows:
         Sec. 12.134.  COLOCATION AGREEMENT BETWEEN SCHOOL DISTRICT
  AND OPEN-ENROLLMENT CHARTER SCHOOL.  (a)  This section applies to a
  school district that:
               (1)  leases a district facility for the operation of an
  open-enrollment charter school to be colocated on a district
  campus; and
               (2)  enters into an agreement with the charter school
  as provided by Subsection (d).
         (b)  The board of trustees of a school district may elect to
  have data regarding the academic performance of students enrolled
  in the open-enrollment charter school combined with comparable data
  of the colocated district campus in determining the performance of
  the campus and the district.
         (c)  The board of trustees of a school district that elects
  under Subsection (b) to have academic data combined shall annually
  file with the agency a copy of the lease and agreement described by
  Subsection (a).
         (d)  The agreement between the school district and the
  open-enrollment charter school:
               (1)  shall establish terms for sharing instructional or
  other specified resources, such as professional development;
               (2)  shall for each year specify factors for
  identifying a student who will be served by the charter school in
  the leased facilities, which may include:
                     (A)  the student's attendance at a specified
  district campus or campuses;
                     (B)  the student's need for specific academic
  services;
                     (C)  the student's academic performance in
  previous school years; or
                     (D)  other objective factors determined by the
  district and the charter school; and
               (3)  may prohibit the charter school from enrolling
  students at the leased facilities other than those identified under
  factors designated in the agreement.
         Sec. 12.135.  EDUCATIONAL SERVICES AGREEMENT BETWEEN SCHOOL
  DISTRICT AND OPEN-ENROLLMENT CHARTER SCHOOL.  (a)  Notwithstanding
  Chapter 41 or 42, and in addition to any other funds to which a
  school district may be entitled, if the board of trustees of the
  district enters into an agreement under this section with an
  open-enrollment charter school for the charter school to provide
  educational services to a student enrolled in school in the
  district, the district is entitled to receive the greater of the
  following amounts:
               (1)  the amount the charter school would receive under
  Section 12.106 if the student were enrolled in the charter school;
  or
               (2)  the amount to which the district is entitled under
  Chapters 41 and 42 for the student.
         (b)  The board of trustees of a school district that enters
  into an agreement described by Subsection (a) with an
  open-enrollment charter school may elect to have the state and
  federal funds attributable to the students educated by the charter
  school paid directly to the charter school. A school district that
  makes such an election must make an annual declaration of the
  election to the agency in a manner determined by the commissioner.  
  The district remains responsible for any overallocation or audit
  recovery of state or federal funds as determined by the
  commissioner.
         SECTION 7.  This Act applies beginning with the 2009-2010
  school year.
         SECTION 8.  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, 2009.