85R7536 KJE-D     By: Taylor of Collin S.B. No. 1610       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.