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  85R7536 KJE-D
 
  By: Villalba H.B. No. 1269
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to open-enrollment charter schools.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 12.106, Education Code, is amended by
  adding Subsections (a-3), (a-4), (a-5), (a-6), (d), and (e) to read
  as follows:
         (a-3)  In addition to the funding provided by Subsections
  (a), (a-2), and (d), a charter holder who meets the eligibility
  requirements under Subsection (a-4) is entitled to receive for the
  open-enrollment charter school supplemental funding for each
  student in weighted average daily attendance in an amount equal to
  the difference between:
               (1)  the statewide average amount of state and local
  revenue, including maintenance and operations revenue and revenue
  for debt service, of a school district per student in weighted
  average daily attendance; and
               (2)  the sum of:
                     (A)  the amount of funding per student in weighted
  average daily attendance to which the charter holder is entitled
  under Subsections (a) and (a-2); and
                     (B)  the amount of funding per student in average
  daily attendance to which the charter holder is entitled under
  Subsection (d).
         (a-4)  A charter holder is eligible to receive supplemental
  funding under Subsection (a-3) if:
               (1)  for a charter holder for whom at least 50 percent
  of enrolled students for the current year are economically
  disadvantaged, as determined by the agency, the percentage of the
  charter holder's economically disadvantaged students who achieved
  the college readiness performance standard on two or more
  assessment instruments administered under Section 39.023(a) or (c)
  exceeded the percentage of all economically disadvantaged students
  in the state who achieved that standard on two or more of those
  assessment instruments for at least two of the last three preceding
  school years;
               (2)  for a charter holder for whom less than 50 percent
  of enrolled students for the current year are economically
  disadvantaged, as determined by the agency, the percentage of the
  charter holder's students who are not economically disadvantaged
  and who achieved the college readiness performance standard on two
  or more assessment instruments administered under Section
  39.023(a) or (c) exceeded the percentage of all students in the
  state who are not economically disadvantaged and who achieved that
  standard on two or more of those assessment instruments for at least
  two of the last three preceding school years; or
               (3)  the charter holder has qualified for and received
  supplemental funding under Subdivision (1) or (2) for three
  consecutive school years.
         (a-5)  A charter holder who establishes eligibility under
  Subsection (a-4)(3) remains eligible for supplemental funding in
  subsequent school years and is not required for those years to
  satisfy the criteria described by Subsection (a-4)(1) or (2),
  provided that the charter holder continues to comply with the
  requirements imposed by Section 12.1071(c).
         (a-6)  In determining eligibility for supplemental funding
  under Subsection (a-4) for the current year, a charter holder may
  elect to exclude the results on assessment instruments administered
  to students enrolled at a campus established two years or less
  before the date on which eligibility is determined if the charter
  holder notifies the agency of the charter holder's election not
  later than the date specified by the commissioner.
         (d)  In addition to other amounts provided by this section, a
  charter holder is entitled to receive for the open-enrollment
  charter school funding per student in average daily attendance in
  an amount equal to the state average amount of state funds per
  student in average daily attendance collected by independent school
  districts under Sections 46.003(a) and 46.032(a).
         (e)  Notwithstanding any other provision of this section,
  the total amount of funding per student in weighted average daily
  attendance to which a charter holder may be entitled for an
  open-enrollment charter school under this section, including a
  charter holder eligible for supplemental funding under Subsection
  (a-3), may not exceed the average amount of state and local revenue,
  including maintenance and operations revenue and revenue for debt
  service, per student in weighted average daily attendance of the
  school districts located within the regional boundaries of the
  regional education service center within whose boundaries a
  majority of the charter holder's students attend school. If a
  charter holder's funding would exceed that amount, the amount of
  maintenance and operations funding and debt service funding to
  which the charter holder would otherwise be entitled under this
  section shall be reduced proportionately to comply with the maximum
  amount of funding described by this subsection.
         SECTION 2.  Section 12.1071, Education Code, is amended by
  adding Subsection (c) to read as follows:
         (c)  A charter holder who accepts supplemental funding under
  Section 12.106(a-3) for a school year:
               (1)  may not expel a student during that school year
  unless the expulsion is required or permitted under Chapter 37; and
               (2)  shall provide a disciplinary alternative
  education program or juvenile justice alternative education
  program, as applicable, during that school year to a student for
  whom a school district would be required to provide the program
  under Chapter 37, in the manner provided by that chapter.
         SECTION 3.  Section 12.1101, Education Code, is amended to
  read as follows:
         Sec. 12.1101.  NOTIFICATION OF CHARTER APPLICATION OR
  ESTABLISHMENT OF CAMPUS.  (a) The commissioner by rule shall adopt
  a procedure for providing notice to the following persons on
  receipt by the commissioner of an application for a charter for an
  open-enrollment charter school under Section 12.110 or of notice of
  the establishment of a campus as authorized under Section
  12.101(b-4):
               (1)  the superintendent and board of trustees of each
  school district within a three-mile radius of the address or
  intersection at [from] which the proposed open-enrollment charter
  school or campus is likely to be located [draw students, as
  determined by the commissioner]; and
               (2)  each member of the legislature who [that]
  represents a [the] geographic area within a three-mile radius of
  the address or intersection at which [to be served by] the proposed
  school or campus is likely to be located [, as determined by the
  commissioner].
         (b)  Not later than the 30th day after the date on which an
  applicant or charter holder acquires property intended to serve as
  the location of a proposed open-enrollment charter school or campus
  for which notice was provided under Subsection (a), the applicant
  or charter holder shall provide notice of the address of the
  acquired property to:
               (1)  the superintendent and board of trustees of each
  school district within a three-mile radius of the property; and
               (2)  each member of the legislature who represents a
  geographic area within a three-mile radius of the property.
         SECTION 4.  Subchapter D, Chapter 12, Education Code, is
  amended by adding Sections 12.138 and 12.139 to read as follows:
         Sec. 12.138.  CONTRACTS TO OPERATE ALTERNATIVE EDUCATION
  PROGRAMS. (a)  A charter holder who receives supplemental funding
  under Section 12.106(a-3) shall enter into a memorandum of
  understanding with the juvenile board of the county in which the
  majority of the charter holder's students attend school for the
  board to operate on behalf of the charter holder a juvenile justice
  alternative education program required under Section 12.1071(c) if
  the board has developed such a program.  The board is entitled to
  receive all funding to which the charter holder would otherwise
  have been entitled for each student enrolled by the charter holder
  in the program.
         (b)  A charter holder who receives supplemental funding
  under Section 12.106(a-3) may enter into a memorandum of
  understanding with the board of trustees of a school district
  located within the regional boundaries of the regional education
  service center within whose boundaries the majority of the charter
  holder's students attend school for the district to operate on
  behalf of the charter holder a disciplinary alternative education
  program required under Section 12.1071(c). The district is entitled
  to receive all funding to which the charter holder would otherwise
  have been entitled for each student enrolled by the charter holder
  in the program.
         (c)  The juvenile board of a county or board of trustees of a
  school district shall enter into a memorandum of understanding as
  provided by Subsection (a) or (b) on request by a charter holder to
  whom that subsection applies.
         (d)  Each student enrolled by a charter holder in an
  alternative education program under Subsection (a) or (b) is
  considered a student of the charter holder for purposes of:
               (1)  determining the amount of funding to which the
  charter holder would otherwise have been entitled for that student
  under Section 12.106, including eligibility for supplemental
  funding under Section 12.106(a-3); and
               (2)  accountability under Chapter 39.
         Sec. 12.139.  CONTRACT TO OPERATE SCHOOL DISTRICT CAMPUS.
  (a)  A charter holder who receives supplemental funding under
  Section 12.106(a-3) may contract with the board of trustees of a
  school district for the charter holder to operate one or more of the
  district's campuses. The district may receive all or part of the
  charter holder's supplemental funding, in an amount determined by
  the charter holder, to which the charter holder is entitled for each
  student enrolled at that campus.
         (b)  Each student enrolled at a campus operated by a charter
  holder under Subsection (a) is considered a student of:
               (1)  the charter holder for purposes of determining the
  amount of funding to which the charter holder is entitled for that
  student under Section 12.106, including eligibility for
  supplemental funding under Section 12.106(a-3); and
               (2)  the school district for purposes of accountability
  under Chapter 39.
         (c)  Notwithstanding any other provision of this code, for
  not less than three years after the date on which a charter holder
  begins operating a school district's campus under Subsection (a),
  the commissioner may not take action against the campus under
  Subchapter E, Chapter 39, for the reason that the campus received
  the lowest performance rating under Section 39.054.
         SECTION 5.  Subchapter A, Chapter 11, Education Code, is
  amended by adding Section 11.004 to read as follows:
         Sec. 11.004.  CONTRACT WITH HIGH-PERFORMING OPEN-ENROLLMENT
  CHARTER SCHOOL TO OPERATE CAMPUS.  The board of trustees of a school
  district may contract with an open-enrollment charter school to
  which Section 12.139 applies for the charter school to operate one
  or more of the district's campuses as provided by that section.
         SECTION 6.  (a)  Except as provided by Subsection (b) of this
  section, this Act applies beginning with the 2017-2018 school year.
         (b)  Section 12.106(d), Education Code, as added by this Act,
  applies to funding per student in average daily attendance at an
  open-enrollment charter school for the 2017-2018 and 2018-2019
  school years only if the 85th Legislature makes a specific
  appropriation to implement that provision.
         SECTION 7.  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, 2017.