82R13507 KKA-D By: Madden H.B. No. 3088 A BILL TO BE ENTITLED AN ACT relating to the state virtual school network and virtual high schools. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter A, Chapter 30A, Education Code, is amended by adding Section 30A.007 to read as follows: Sec. 30A.007. SCHOOL DISTRICT POLICY ON ELECTRONIC COURSES. A school district shall adopt a policy that provides district students with the opportunity to enroll in electronic courses provided through the state virtual school network. SECTION 2. Section 30A.104, Education Code, is amended to read as follows: Sec. 30A.104. COURSE ELIGIBILITY IN GENERAL. (a) A course offered through the state virtual school network must: (1) be in a specific subject that is part of the required curriculum under Section 28.002(a); (2) be aligned with the essential knowledge and skills identified under Section 28.002(c) for a grade level at or above grade level three; and (3) be the equivalent in instructional rigor and scope to a course that is provided in a traditional classroom setting during: (A) a semester of 90 instructional days; and (B) a school day that meets the minimum length of a school day required under Section 25.082. (b) If the essential knowledge and skills with which an approved course is aligned in accordance with Subsection (a)(2) are modified, the provider school district or school must be provided the same time period to revise the course to achieve alignment with the modified essential knowledge and skills as is provided for the modification of a course provided in a traditional classroom setting. SECTION 3. Section 30A.105, Education Code, is amended by adding Subsections (a-1) and (a-2) and amending Subsection (d) to read as follows: (a-1) The administering authority shall publish the schedule established under Subsection (a)(1), including any deadlines specified in that schedule, and any guidelines applicable to the submission and approval process for electronic courses. (a-2) The evaluation required by Subsection (a)(2) must include review of each electronic course component, including off-line material proposed to be used in the course. (d) If the agency determines that the costs of evaluating and approving a submitted electronic course will not be paid by the agency due to a shortage of funds available for that purpose, the school district, open-enrollment charter school, or public or private institution of higher education that submitted the course for evaluation and approval may pay a fee equal to the amount of the costs in order to ensure that evaluation of the course occurs. The agency shall establish and publish a fee schedule for purposes of this subsection. SECTION 4. Subchapter D, Chapter 30A, Education Code, is amended by adding Section 30A.153 to read as follows: Sec. 30A.153. FOUNDATION SCHOOL PROGRAM FUNDING. (a) A school district or open-enrollment charter school in which a student is enrolled is entitled to funding under Chapter 42 for the student's enrollment in an electronic course offered through the state virtual school network in the same manner that the district or school is entitled to funding for the student's enrollment in courses provided in a traditional classroom setting, provided that the student successfully completes the electronic course. (b) A school district or open-enrollment charter school in which a student is enrolled shall enter into an agreement with the provider school district or school for the payment to the provider school district or school of costs associated with the enrollment of the student in an electronic course. (c) The administering authority, with the approval of the commissioner, shall adopt a standard agreement under Subsection (b) that governs payment of funds and other matters relating to a student's enrollment in an electronic course offered through the state virtual school network. A school district or open-enrollment charter school shall use the standard agreement unless: (1) the district or school requests from the commissioner permission to modify the standard agreement; and (2) the commissioner authorizes the modification. SECTION 5. Subtitle F, Title 2, Education Code, is amended by adding Chapter 30B to read as follows: CHAPTER 30B. VIRTUAL HIGH SCHOOLS Sec. 30B.001. CREATION OF VIRTUAL HIGH SCHOOLS. (a) The commissioner by rule shall establish a process under which an eligible entity, as determined by the commissioner, may submit an application to the commissioner for authorization to operate a virtual high school. (b) A virtual high school authorized by the commissioner may: (1) enroll eligible students on a full-time basis; and (2) grant high school diplomas to students who meet the requirements for a diploma imposed under this title. Sec. 30B.002. ELIGIBLE STUDENTS. (a) A student may enroll in a virtual high school on a full-time basis if the student resides in this state and is under 26 years of age. (b) A virtual high school may also elect to admit: (1) a student described by Subsection (a) on a part-time basis; or (2) a student who resides in this state and is 26 years of age or older. Sec. 30B.003. CURRICULUM. (a) A virtual high school shall permit students to enroll in courses provided through the state virtual school network under Chapter 30A in addition to courses offered directly by the virtual high school. (b) A virtual high school may develop a community-based course in physical education or fine arts. A course developed under this subsection must be approved by the agency before the virtual high school may offer the class to a student for academic credit. Sec. 30B.004. FUNDING. (a) For each student described by Section 30B.002(a) enrolled in the school, a virtual high school is entitled to allotments under Chapter 42 as if the school were a school district without a tier one local share for purposes of Section 42.253. (b) A virtual high school is not entitled to allotments under Chapter 42 for students described by Section 30B.002(b). A virtual high school may: (1) charge a fee for enrollment to students described by Section 30B.002(b); or (2) use adult basic education funds to pay the costs of enrollment of students described by Section 30B.002(b)(2), if those funds are available for that purpose. SECTION 6. Section 42.003(a), Education Code, is amended to read as follows: (a) A student is entitled to the benefits of the Foundation School Program if, on September 1 of the school year, the student is 5 years of age or older and under 21 years of age and has not graduated from high school, or is at least 21 years of age and under 26 years of age and has been admitted by a virtual high school under Chapter 30B or a school district to complete the requirements for a high school diploma. SECTION 7. Section 42.302(a), Education Code, is amended to read as follows: (a) Each school district is guaranteed a specified amount per weighted student in state and local funds for each cent of tax effort over that required for the district's local fund assignment up to the maximum level specified in this subchapter. The amount of state support, subject only to the maximum amount under Section 42.303, is determined by the formula: GYA = (GL X WADA X DTR X 100) - LR where: "GYA" is the guaranteed yield amount of state funds to be allocated to the district; "GL" is the dollar amount guaranteed level of state and local funds per weighted student per cent of tax effort, which is an amount described by Subsection (a-1) or a greater amount for any year provided by appropriation; "WADA" is the number of students in weighted average daily attendance, which is calculated by dividing the sum of the school district's allotments under Subchapters B and C, less any allotment to the district for transportation, any allotment under Section 42.158 [, 42.159,] or 42.160, and 50 percent of the adjustment under Section 42.102, by the basic allotment for the applicable year; "DTR" is the district enrichment tax rate of the school district, which is determined by subtracting the amounts specified by Subsection (b) from the total amount of maintenance and operations taxes collected by the school district for the applicable school year and dividing the difference by the quotient of the district's taxable value of property as determined under Subchapter M, Chapter 403, Government Code, or, if applicable, under Section 42.2521, divided by 100; and "LR" is the local revenue, which is determined by multiplying "DTR" by the quotient of the district's taxable value of property as determined under Subchapter M, Chapter 403, Government Code, or, if applicable, under Section 42.2521, divided by 100. SECTION 8. Section 42.159, Education Code, is repealed. SECTION 9. This Act takes effect September 1, 2011.