85R24654 CAE-D     By: Koop, Meyer, Deshotel, Bohac, Longoria, H.B. No. 3439       et al.     Substitute the following for H.B. No. 3439:     By:  Bohac C.S.H.B. No. 3439       A BILL TO BE ENTITLED   AN ACT   relating to a school district contract to partner with an   open-enrollment charter school to operate a district campus.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subchapter D, Chapter 11, Education Code, is   amended by adding Section 11.174 to read as follows:          Sec. 11.174.  CONTRACT WITH OPEN-ENROLLMENT CHARTER SCHOOL   REGARDING OPERATION OF DISTRICT CAMPUS.  (a)  If the board of   trustees of a school district contracts with the governing body of   an open-enrollment charter school under Section 11.157 for the   district to partner with the charter school to operate a district   campus as provided by this section, the campus qualifies for:                (1)  an exemption from intervention as provided by   Subsection (f); and                (2)  funding as provided under Section 42.2511.          (b)  An open-enrollment charter school may contract with a   school district under this section only if:                (1)  the charter of the open-enrollment charter school   has not been previously revoked; and                (2)  for two of the three school years preceding the   school year of the proposed operation of the district campus as   described by Subsection (a), the charter school has received:                      (A)  an overall performance rating of acceptable   or higher under Subchapter C, Chapter 39; and                      (B)  a financial accountability rating under   Subchapter D, Chapter 39, indicating financial performance of   satisfactory or higher.          (c)  Before entering into a contract as provided by this   section, a school district must consult with campus personnel   regarding the provisions to be included in the contract between the   school district and the open-enrollment charter school.          (d)  To operate a district campus as provided by this   section, the district campus must be granted a charter under   Subchapter C, Chapter 12.          (e)  The commissioner shall continue to evaluate and assign   overall and domain performance ratings under Section 39.054 to a   district campus subject to a contract described by Subsection (a).          (f)  This subsection applies only to a district campus   subject to a contract described by Subsection (a) that received an   overall performance rating of unacceptable under Subchapter C,   Chapter 39, for the school year before operation of the district   campus under the contract began.  The commissioner may not impose a   sanction or take action against the campus under Section 39.107(a)   or (e) for failure to satisfy academic performance standards during   the first two school years the open-enrollment charter school   operates the district campus.  The overall performance rating   received by the campus during those first two school years is not   included in calculating consecutive school years and is not   considered a break in consecutive school years under Section   39.107(a) or (e).          (g)  A campus subject to Subsection (f) that receives an   overall performance rating of unacceptable under Subchapter C,   Chapter 39, for any school year after the first two school years the   school district and the open-enrollment charter school began   operation of the district campus may receive an exemption from a   sanction or other action only if the campus receives approval for   the exemption from the commissioner.          (h)  Subject to Subsection (i), a contract entered into by   the board of trustees of a school district and the governing body of   an open-enrollment charter school for the operation of a district   campus as provided by Subsection (a) must include a provision   addressing student eligibility for enrollment.          (i)  The contract of a campus subject to Subsection (f) must   provide that any student residing in the attendance zone of the   district campus as the attendance zone existed before operation of   the district campus under the contract shall be admitted for   enrollment at the campus. The contract must establish enrollment   preference for students who do not reside in the attendance zone as   follows:                (1)  other students residing in the school district in   which the campus is located; and                (2)  students who reside outside the school district.          (j)  The commissioner may adopt rules as necessary to   administer this section, including requiring a school district to   notify the commissioner of any contract entered into under this   section by the district and open-enrollment charter school.          (k)  This section does not prohibit a contract between a   school district and another entity for the provision of services   for the campus.          SECTION 2.  Subchapter E, Chapter 42, Education Code, is   amended by adding Section 42.2511 to read as follows:          Sec. 42.2511.  SCHOOL DISTRICT ENTITLEMENT FOR CERTAIN   STUDENTS. (a) This section applies only to a school district that   has entered into a contract with an open-enrollment charter school   to operate a district campus as provided by Section 11.174.          (b)  Notwithstanding any other provision of this chapter or   Chapter 41, a school district subject to this section is entitled to   receive for each student in average daily attendance at the campus   described by Subsection (a) an amount equivalent to the difference,   if the difference results in increased funding, between:                (1)  the amount described by Section 12.106; and                (2)  the amount to which the district would be entitled   under this chapter.          (c)  The commissioner shall adopt rules as necessary to   administer this section.          SECTION 3.  This Act applies beginning with the 2017-2018   school year.          SECTION 4.  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.