BILL ANALYSIS Senate Research Center C.S.S.B. 569 89R10450 TSS-F By: Bettencourt et al. Education K-16 3/4/2025 Committee Report (Substituted) AUTHOR'S / SPONSOR'S STATEMENT OF INTENT H.B. 3643, 87(R), established the Texas Commission on Virtual Education. The commission was established to develop and make recommendations regarding the delivery of virtual education in the public school system and state funding for virtual education under the Foundation School Program. The commission published a set of recommendations for the legislature that were unanimously supported and would ensure our state's education system is built for the future of learning and work. Aligned to those recommendations, S.B. 569 would enable public school districts and charter schools to offer virtual and hybrid options to respond effectively to family and student demand for approaches that fit learners' unique needs. The bill creates adequate and equitable funding mechanisms and an authorization process to open new virtual and hybrid campuses. It also ensures access to advanced coursework in the face of longstanding challenges like local course availability and teacher shortages through continued access to individual virtual courses. S.B. 569 seeks to: Create new Chapter 30B to bring multiple pieces of statute under one new unified policy structure, aligned to the unanimous, bipartisan recommendations of the Commission on Virtual Education; Repeal Chapter 30A (Texas Virtual School Network); Allow districts and charter schools to offer individual virtual courses, full-time virtual schools, and full-time hybrid schools; and Provide authorization for new schools, quality controls, school accountability, vendor accountability, funding guidelines, parent and student rights, teacher rights, teacher professional development, and startup grants for districts. (Original Author's/Sponsor's Statement of Intent) C.S.S.B. 569 amends current law relating to the provision of virtual education in public schools and to certain waivers and modifications by the commissioner of education to the method of calculating average daily attendance in an emergency or crisis for purposes of preserving school district funding entitlements under the Foundation School Program during that emergency or crisis and authorizes a fee. RULEMAKING AUTHORITY Rulemaking authority is expressly granted to the commissioner of education in SECTION 6 (Section 29.081, Education Code) and SECTION 7 (Sections 30B.002, 30B.007, and 30B.101, Education Code) of this bill. Rulemaking authority previously granted to the commissioner of education is rescinded in SECTION 14 (Sections 29.909, 30A.006, 30A.051, 30A.103, 30A.109, 30A.111, 30A.113, 30A.114, 30A.115, and 30A.153, Education Code) of this bill. Rulemaking authority previously granted to the State Board of Education is rescinded in SECTION 14 (Section 30A.103, Education Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 1.001(b), Education Code, as follows: (b) Deletes existing text providing that the Education Code, except as provided by Chapter 30A (State Virtual School Network) and certain other statutes, does not apply to students, facilities, or programs under the jurisdiction of certain entities. Makes a nonsubstantive change. SECTION 2. Amends Section 7.0561(f), Education Code, as follows: (f) Requires the commissioner of education (commissioner), in consultation with interested school districts, open-enrollment charter schools, and other appropriate interested persons, to adopt rules applicable to the consortium, according to the following principles for a next generation of higher performing public schools: (1) engagement of students in digital learning, including engagement through the use of certain materials, and virtual or hybrid courses offered by school districts and open-enrollment charter schools under Chapter 30B, rather than courses offered through the state virtual school network under Subchapter 30A (General Provisions); and (2)-(4) makes no changes to these subdivisions; SECTION 3. Amends Section 25.007(b), Education Code, as follows: (b) Requires the Texas Education Agency (TEA), in recognition of the challenges faced by students who are homeless or in substitute care, to assist the transition of students who are homeless or in substitute care from one school to another by performing certain actions, including promoting practices that facilitate access by a student who is homeless or in substitute care to extracurricular programs, summer programs, credit transfer services, virtual or hybrid courses provided under Chapter 30B, rather than electronic courses provided under Chapter 30A, and after-school tutoring programs at nominal or no cost. SECTION 4. Amends the heading to Section 26.0031, Education Code, to read as follows: Sec. 26.0031. RIGHTS CONCERNING VIRTUAL AND HYBRID COURSES. SECTION 5. Amends Section 26.0031, Education Code, by amending Subsections (a), (b), (c), (c-1), (d), and (e) and adding Subsection (b-1), as follows: (a) Requires a district or school, at the time and in the manner that the school district or open-enrollment charter school informs students and parents about courses that are offered in the district's or school's traditional classroom setting, to notify parents and students of the option to enroll in a virtual or hybrid course offered by the district or school in which the student is enrolled or by another district or school under Chapter 30B, rather than an electronic course offered through the state virtual school network, under Chapter 30A. (b) Makes conforming changes to this subsection. (b-1) Prohibits a school district or open-enrollment charter school from actively discouraging a student, including by threat or intimidation, from enrolling in a virtual or hybrid course. (c) Authorizes a school district or open-enrollment charter school to deny a request to enroll a student in a virtual or hybrid course, rather than an electronic course, if: (1) makes no changes to this subdivision; (2) makes a conforming change to this subdivision; or (3) the district or school determines that the cost of the course is too high, rather than offers a substantially similar course. (c-1) Authorizes a school district or open-enrollment charter school to decline to pay the cost for a student of more than three yearlong virtual, rather than electronic, courses, or the equivalent, during any school year. Provides that this subsection does not: (1) makes a conforming change to this subdivision; or (2) apply to a student enrolled in a full-time virtual program, rather than a full-time online program that was operating on January 1, 2013. (d) Makes conforming changes to this subsection. (e) Requires a school district or open-enrollment charter school that denies a request to enroll a student in a virtual or hybrid course under Subsection (c) to provide a written explanation of the denial to the student and the student's parent. Requires that the written explanation provide notice of the student's ability to appeal the decision and an explanation of the appeal process, including the process of pursuing a final appeal heard by the board of trustees of the district or the governing board of the school. Provides that a determination made by the board of trustees of the school district or the governing board of the open-enrollment charter school under this subsection is final and is prohibited from being appealed. Deletes existing text authorizing a parent to appeal to the commissioner a school district's or open-enrollment charter school's decision to deny a request to enroll a student in an electronic course offered through the state virtual school network. Makes a nonsubstantive change. SECTION 6. Amends Section 29.081, Education Code, by amending Subsections (e-2) and (f) and adding Subsections (f-1) and (i), as follows: (e-2) Requires that a remote or hybrid dropout recovery education program meet certain criteria, including being a full-time hybrid program or a full-time virtual program, as those terms are defined by Section 30B.001, or a full-time hybrid or virtual campus authorized under Chapter 30B. Makes nonsubstantive changes. (f) Requires the commissioner, except as provided by Subsection (f-1), to include a student who has enrolled in, rather than who successfully completes, a course offered through a program under Subsection (e) (relating to the use of certain programs to provide alternative education programs for students at risk of dropping out of school) in the computation of the district's or school's average daily attendance for funding purposes. Deletes existing text requiring the commissioner, for a student who successfully completes a remote course offered through the program, to include the student in the computation of the district's or school's average daily attendance with a certain attendance rate. (f-1) Requires the commissioner to include a student enrolled in a remote or hybrid dropout recovery education program under Subsection (e-2) in the computation of the district's or school's average daily attendance for funding purposes in the same manner as students enrolled in a full-time hybrid or virtual program or full-time hybrid or virtual campus, as applicable, under Chapter 30B. (i) Authorizes the commissioner to adopt rules as necessary to implement Section 29.081 (Compensatory, Intensive, and Accelerated Instruction). SECTION 7. Amends Subtitle F, Title 2, Education Code, by adding Chapter 30B, as follows: CHAPTER 30B. VIRTUAL AND HYBRID CAMPUSES, PROGRAMS, AND COURSES SUBCHAPTER A. GENERAL PROVISIONS Sec. 30B.001. DEFINITIONS. Defines "full-time hybrid campus," "full-time hybrid program," "full-time virtual campus," "full-time virtual program," "hybrid course," "parent," "virtual course," and "whole program virtual instruction provider." Sec. 30B.002. RULES. (a) Requires the commissioner to adopt rules as necessary to administer this chapter. (b) Requires the commissioner, to the extent practicable, to consult school districts, open-enrollment charter schools, and parents in adopting rules under this section. (c) Authorizes TEA to form an advisory committee to comply with the provisions of this section. Provides that Chapter 2110 (State Agency Advisory Committees), Government Code, does not apply to an advisory committee formed under this section. Sec. 30B.003. GRANTS AND FEDERAL FUNDS. (a) Authorizes the commissioner, for purposes of this chapter, to seek and accept a grant from a public or private person. (b) Provides that the commissioner, for purposes of this chapter, is authorized to accept federal funds and is required to use those funds in compliance with applicable federal law, regulations, and guidelines. Sec. 30B.004. PROVISION OF COMPUTER EQUIPMENT OR INTERNET SERVICE. Provides that this chapter does not: (1) require a school district, an open-enrollment charter school, a virtual course provider, or the state to provide a student with home computer equipment or Internet access for a virtual course provided by a school district or open-enrollment charter school; or (2) prohibit a school district or open-enrollment charter school from providing a student with home computer equipment or Internet access for a virtual course provided by the district or school. Sec. 30B.005. EXTRACURRICULAR ACTIVITY. Authorizes a student enrolled in a virtual or hybrid course, program, or campus offered under this chapter to participate in an extracurricular activity sponsored or sanctioned by the school district or open-enrollment charter school in which the student is enrolled or by the University Interscholastic League in the same manner as other district or school students. Sec. 30B.006. HYBRID AND VIRTUAL INSTRUCTION PERMITTED. (a) Authorizes a school district or open-enrollment charter school to deliver instruction through hybrid courses, virtual courses, full-time hybrid programs, and full-time virtual programs in the manner provided by this chapter. (b) Authorizes the following entities to deliver instruction through hybrid or virtual courses under this chapter in the same manner provided for a school district or open-enrollment charter school: (1) a consortium of school districts or open-enrollment charter schools; (2) an institution of higher education, as that term is defined by Section 61.003 (Definitions); or (3) a regional education service center. (c) Requires a school district or open-enrollment charter school that delivers instruction through a hybrid or virtual course to develop written information describing each hybrid or virtual course available for enrollment and complying with any other requirement of Section 26.0031. (d) Provides that a school district or open-enrollment charter school is required to make information under this section available to students and parents at the time students ordinarily select courses and is authorized to provide that information to students and parents at other times as determined by the district or school. Sec. 30B.007. FOUNDATION SCHOOL PROGRAM FUNDING. Requires the commissioner by rule to adopt procedures for reporting and verifying the attendance of a student enrolled in a hybrid course, virtual course, full-time hybrid program, or full-time virtual program provided by a school district or open-enrollment charter school under this chapter. Requires that the procedures provide a district or school with flexibility to provide instruction over the Internet, through synchronous or asynchronous delivery and allow for the district or school to, without requiring in-person attendance or synchronous instruction at a specific time or location, receive the same amount of funding per student for a course or program described by this section that the district or school would receive per student for that course or program if the course or program was provided fully in person. SUBCHAPTER B. HYBRID AND VIRTUAL COURSES Sec. 30B.051. HYBRID OR VIRTUAL COURSE QUALITY REQUIREMENTS. (a) Requires a school district or open-enrollment charter school that offers a hybrid or virtual course under this chapter to certify to the commissioner that the course: (1) includes the appropriate essential knowledge and skills adopted under Subchapter A (Essential Knowledge and Skills; Curriculum), Chapter 28 (Courses of Study; Advancement); (2) provides instruction at the appropriate level of rigor for the grade level at which the course is offered and will prepare a student enrolled in the course for the student's next grade level or a subsequent course in a similar subject matter; and (3) except as provided by Subsection (b), meets standards for hybrid or virtual courses adopted by the commissioner. (b) Requires a school district or open-enrollment charter school that offers a hybrid or virtual course, if the commissioner has not adopted applicable standards for hybrid or virtual courses, to instead certify to the commissioner that the course meets the National Standards for Quality Online Courses published by the Virtual Learning Leadership Alliance, Quality Matters, and DLAC, or a successor publication. Sec. 30B.052. RIGHTS OF STUDENTS REGARDING HYBRID AND VIRTUAL COURSES. (a) Prohibits a school district or open-enrollment charter school, except as provided by Section 30B.104(b), from requiring a student to enroll in a hybrid or virtual course. (b) Requires that a hybrid or virtual course offered under this chapter to a student receiving special education services or other accommodations meet the needs of the participating student in a manner consistent with Subchapter A (Special Education Program), Chapter 29, and with federal law, including the Individuals with Disabilities Education Act (20 U.S.C. Section 1400 et seq.) and Section 504, Rehabilitation Act of 1973 (29 U.S.C. Section 794), as applicable. Sec. 30B.053. RIGHTS OF TEACHERS REGARDING HYBRID AND VIRTUAL COURSES. (a) Prohibits a school district or open-enrollment charter school, except as provided by Subsection (a-1), from requiring a classroom teacher to provide both virtual instruction and in-person instruction for a course offered under this chapter during the same class period. Authorizes the commissioner to waive the requirements of this subsection for courses included in the enrichment curriculum under Section 28.002 (Required Curriculum). (a-1) Provides that Subsection (a) does not apply to a requirement that a classroom teacher simulcast the teacher's in-person instruction provided that the teacher is not required to interact with students observing the instruction virtually. (b) Prohibits a classroom teacher from providing instruction for a hybrid or virtual course offered under this chapter unless: (1) the teacher has received appropriate professional development in hybrid or virtual instruction, as determined by the school district or open-enrollment charter school at which the teacher is employed; or (2) the district or school has determined that the teacher has sufficient previous experience to not require the professional development described by Subdivision (1). (c) Prohibits a school district or open-enrollment charter school from directly or indirectly coercing any classroom teacher hired to provide in-person instruction to agree to an assignment to teach a hybrid or virtual course. Sec. 30B.054. ASSESSMENTS. Requires that an assessment instrument administered under Section 39.023 (Adoption and Administration of Instruments) or 39.025 (Secondary-Level Performance Required) to a student enrolled in a hybrid or virtual course offered under this chapter, except as authorized by commissioner rule, be administered to the student in the same manner in which the assessment instrument is administered to a student enrolled in an in-person course at the student's school district or open-enrollment charter school. Sec. 30B.055. TUITION AND FEES. Authorizes a school district or open-enrollment charter school to charge tuition and fees for a hybrid or virtual course provided to a student who: (1) is not eligible to enroll in a public school in this state; or (2) is not enrolled in the school district or open-enrollment charter school. Sec. 30B.056. ATTENDANCE FOR CLASS CREDIT OR GRADE. Requires a school district or open-enrollment charter school, notwithstanding Section 25.092 (Minimum Attendance for Class Credit or Final Grade), to establish the participation necessary to earn credit or a grade for a hybrid or virtual course offered by the district or school. Sec. 30B.057. AGENCY PUBLICATION OF AVAILABLE VIRTUAL COURSES. (a) Requires TEA to publish a list of virtual courses offered by school districts and open-enrollment charter schools in this state that includes: (1) whether the course is available to a student who is not otherwise enrolled in the offering district or school; (2) the cost of the course; and (3) information regarding any third-party provider involved in the delivery of the course. (b) Requires a school district or open-enrollment charter school to provide to TEA information required to publish the list under Subsection (a). SUBCHAPTER C. FULL-TIME HYBRID AND FULL-TIME VIRTUAL CAMPUSES Sec. 30B.101. FULL-TIME HYBRID OR FULL-TIME VIRTUAL CAMPUS AUTHORIZATION. (a) Authorizes a school district or open-enrollment charter school to operate a full-time hybrid campus or a full-time virtual campus if authorized by the commissioner in accordance with this section. (b) Requires the commissioner to adopt rules establishing the requirements for and process by which a school district or open-enrollment charter school is authorized to apply for authorization to operate a full-time hybrid campus or a full-time virtual campus. Provides that the rules adopted by the commissioner are authorized to require certain written application materials and interviews and are required to require a school district or open-enrollment charter school to: (1) engage in a year of planning before offering a course under this chapter to verify the course is designed in accordance with high-quality criteria; (2) develop an academic plan that incorporates: (A) curriculum and instructional practices aligned with the appropriate essential knowledge and skills provided under Subchapter A, Chapter 28; (B) monitoring of the progress of student performance and interventions; (C) a method for meeting the needs of and complying with federal and state requirements for special populations and at-risk students; and (D) compliance with the requirements of this chapter; (3) develop an operations plan that addresses: (A) staffing models; (B) the designation of selected school leaders; (C) professional development for staff; (D) student and family engagement; (E) school calendars and schedules; (F) student enrollment eligibility; (G) cybersecurity and student data privacy measures; and (H) any educational services to be provided by a private or third party; and (4) demonstrate the capacity to execute the district's or school's plan successfully. (c) Requires that a full-time hybrid campus or full-time virtual campus authorized under this section include: (1) at least one grade level in which an assessment instrument is required to be administered under Section 39.023(a) (relating to requiring TEA to adopt or develop appropriate criterion-referenced assessment instruments designed to assess essential knowledge and skills in certain subjects) or (c) (relating to requiring TEA to adopt end-of-course assessment instruments for secondary-level courses in certain subjects), including each subject or course for which an assessment instrument is required in that grade level; (2) sufficient grade levels, as determined by the commissioner, to allow for the annual evaluation of the performance of students who complete the courses offered; or (3) for a campus that does not include grade levels described by Subdivision (1) or (2), another performance evaluation measure approved by the commissioner during the authorization process. (d) Authorizes a campus approved under this subchapter only to apply for and receive authorization to operate as a full-time hybrid campus or a full-time virtual campus. Prohibits a campus from changing its operation designation during the authorization process or after the campus is authorized. (e) Authorizes the commissioner to authorize a school district or open-enrollment charter school to operate a full-time hybrid campus or a full-time virtual campus only if the commissioner determines that the authorization of the campus is likely to result in improved student learning opportunities. Requires the commissioner, if a district or school will use a private or third party in operating the campus, to consider the historical performance of the private or third party, if known, in making a determination under this section. (f) Provides that a determination made by the commissioner under this section is final and not subject to appeal. Sec. 30B.102. REVOCATION. (a) Provides that, unless revoked as provided by this section, the commissioner's authorization of a full-time hybrid campus or full-time virtual campus under Section 30B.101 continues indefinitely. (b) Requires the commissioner to revoke the authorization of a full-time hybrid campus or full-time virtual campus if the campus has been assigned, for the three preceding school years: (1) a needs improvement or unacceptable performance rating under Subchapter C (Accreditation), Chapter 39 (Public School System Accountability); (2) a rating of performance that needs improvement or unacceptable, as determined by the commissioner, on a performance evaluation approved by the commissioner under Section 30B.101(c)(3); or (3) any combination of the ratings described by Subdivision (1) or (2). (c) Authorizes the commissioner to, based on a special investigation conducted under Section 39.003 (Special Investigations): (1) revoke an authorization of a full-time hybrid campus or full-time virtual campus; or (2) require any intervention authorized under that section. (d) Requires the commissioner, if a private or third party is determined to be ineligible under Section 30B.152, to revoke an authorization of a full-time hybrid campus or full-time virtual campus for which the private or third party acts as a whole program virtual instruction provider, unless the commissioner approves a request by the school district or open-enrollment charter school that operates the campus to use an alternative private or third party. (e) Requires that an appeal by a school district or open-enrollment charter school of a revocation of an authorization under this chapter that results in the closure of a campus be made under Section 39A.301 (Review of Sanctions by State Office of Administrative Hearings). Sec. 30B.103. STUDENT ELIGIBILITY. (a) Provides that a student eligible to enroll in a public school of this state is eligible to enroll at a full-time hybrid campus. (b) Provides that a student is eligible to enroll in a full-time virtual campus if the student: (1) attended a public school in this state for a minimum of six weeks in the current school year or in the preceding school year; (2) is, in the school year in which the student first seeks to enroll in the full-time virtual campus, enrolled in the first grade or a lower grade level; (3) was not required to attend public school in this state due to nonresidency during the preceding school year; (4) is a dependent of a member of the United States military who has been deployed; or (5) has been placed in substitute care in this state. Sec. 30B.104. STUDENT RIGHTS REGARDING FULL-TIME HYBRID AND FULL-TIME VIRTUAL CAMPUSES. (a) Prohibits a student enrolled in a school district from being compelled to enroll in a full-time hybrid or full-time virtual campus. Requires a school district to offer the option for a student's parent to select in-person instruction for the student. (b) Authorizes an open-enrollment charter school, notwithstanding Subsection (a) or Section 30B.052, to require a student to attend a full-time hybrid or full-time virtual campus. Sec. 30B.105. CAMPUS DESIGNATIONS. Requires the commissioner to determine and assign a unique campus designation number to each full-time hybrid campus or full-time virtual campus authorized under this subchapter. Sec. 30B.106. FUNDING. (a) Requires the commissioner, for purposes of calculating the average daily attendance of students attending a full-time hybrid campus or full-time virtual campus, to use the number of full-time equivalent students enrolled in the full-time hybrid or full-time virtual campus multiplied by the average attendance rate of the school district or open-enrollment charter school that offers the full-time hybrid or full-time virtual campus not including any student enrolled full-time in a full-time hybrid or full-time virtual campus. Requires the commissioner, in the event that a reliable attendance rate cannot be determined under this section, to use the statewide average attendance rate. (b) Requires the commissioner to provide proportionate funding to the applicable school district or open-enrollment charter school for a student that alternates attendance between a traditional, in-person campus setting and the full-time hybrid or full-time virtual campus of any single district or school in the same school year. SUBCHAPTER D. PRIVATE AND THIRD-PARTY PROVIDERS Sec. 30B.151. NOTICE AND USE OF PRIVATE OR THIRD PARTY. (a) Requires a school district or open-enrollment charter school to provide notice to the commissioner of the use of or change in affiliation of a private or third party acting as a whole program virtual instruction provider for a full-time hybrid or full-time virtual campus or program. (b) Prohibits a school district or open-enrollment charter school, except as provided by Section 30B.152, from using a private or third party to act as a whole program virtual instruction provider if the party has been determined to be ineligible under that section. Sec. 30B.152. PRIVATE OR THIRD-PARTY ACCOUNTABILITY. (a) Requires the commissioner, to the extent feasible, to evaluate the performance of a private or third party acting as a whole program virtual instruction provider for a school district or open-enrollment charter school. (b) Requires the commissioner to establish a standard to determine if a private or third party is ineligible to act as a whole program virtual instruction provider. Provides that a private or third party determined to be ineligible under this section remains ineligible until after the fifth anniversary of that determination. (c) Authorizes a school district or open-enrollment charter school to use a private or third party determined to be ineligible under Subsection (b) as a whole program virtual instruction provider if: (1) the district or school requests approval from the commissioner; and (2) the commissioner determines that the reasons the private or third party was declared ineligible under Subsection (b) will not affect the operation of the party as a whole program virtual instruction provider at the district or school. SUBCHAPTER E. STATE SUPPORT Sec. 30B.201. EDUCATOR PROFESSIONAL DEVELOPMENT. Requires TEA, from funds appropriated or otherwise available, to develop professional development courses and materials aligned with research-based practices for educators in providing high-quality virtual education. Sec. 30B.202. DEVELOPMENT GRANTS FOR VIRTUAL EDUCATION. Requires TEA, from funds appropriated or otherwise available, to provide grants and technical assistance to school districts and open-enrollment charter schools to aid in the establishment of high-quality full-time hybrid or full-time virtual campuses. SECTION 8. Amends Section 33.009(d), Education Code, to make conforming changes. SECTION 9. Amends Subchapter A, Chapter 37, Education Code, by adding Section 37.0071, as follows: Sec. 37.0071. VIRTUAL EDUCATION AS ALTERNATIVE TO EXPULSION. (a) Requires a school district or open-enrollment charter school, except as provided by Subsection (b), before the district or school is authorized to expel a student, to consider the appropriateness and feasibility of, as an alternative to expulsion, enrolling the student in a full-time hybrid program, full-time virtual program, full-time hybrid campus, or full-time virtual campus, as those terms are defined in Section 30B.001. (b) Provides that Subsection (a) does not apply to a student expelled under Section 37.0081 (Expulsions and Placement of Certain Students in Alternative Settings) or 37.007(a) (relating to requiring a student to be expelled if the student, on school property or while attending a school-sponsored or school-related activity on or off of school property, engages in certain conduct, without regard to whether the conduct occurs on or off school property or at a school event), (d) (relating to requiring a student to be expelled if the student engages in certain conduct), or (e) (relating to requiring a student who brings a firearm to school to be expelled). SECTION 10. Amends Section 48.005, Education Code, by adding Subsection (e-1), as follows: (e-1) Requires the commissioner, in a school year in which the occurrence of an emergency or crisis, as defined by commissioner rule, causes a statewide decrease in average daily attendance of school districts entitled to funding under Chapter 48 (Foundation School Program) or, for an emergency or crisis occurring only within a specific region of this state, causes a regional decrease in the average daily attendance of school districts located in the affected region, to modify or waive requirements applicable to the affected districts under Section 48.005 (Average Daily Attendance) and adopt appropriate safeguards as necessary to ensure the continued support and maintenance of an efficient system of public free schools and the continued delivery of high-quality instruction under that system. SECTION 11. Amends Section 48.053(b), Education Code, as follows: (b) Provides that a school district to which Section 48.053 (Allotment for Certain Special-Purpose School Districts) applies is entitled to funding under this chapter as if the district were a full-time hybrid campus or full-time virtual campus for purposes of Section 30B.106 with no tier one local share for purposes of Section 48.256 for each student enrolled in the district who meets certain requirements. Makes a nonsubstantive change. SECTION 12. Amends Section 48.104(f), Education Code, as follows: (f) Requires a student receiving a full-time virtual education provided through a full-time virtual campus under Chapter 30B to be included in determining the number of students who are educationally disadvantaged and reside in an economically disadvantaged census block group under certain subsections, as applicable. Deletes existing text authorizing a student receiving a full-time virtual education through the state virtual school network to be included in determining the number of students who are educationally disadvantaged and reside in an economically disadvantaged census block group under certain subsections, as applicable, if the school district submits to the commissioner a plan detailing the enhanced services that will be provided to the student and the commissioner approves the plan. SECTION 13. Amends Section 48.111, Education Code, by amending Subsection (b) and adding Subsection (b-1), as follows: (b) Makes a conforming change to this subsection. (b-1) Requires the commissioner, for purposes of Subsection (a) (relating to entitling a school district to a certain annual allotment), in determining the number of students enrolled in a school district, to exclude students enrolled in the district who receive full-time instruction through the state virtual school network under Chapter 30A as that chapter existed on September 1, 2024. Provides that this subsection expires September 1, 2031. SECTION 14. Repealer: Section 26.0031(f) (relating to a school district or open-enrollment charter school having discretion to select a course provider approved by the network's administering authority for an electronic course in which a student will enroll), Education Code. Repealer: Section 29.909 (Distance Learning Courses), Education Code. Repealer: Chapter 30A (State Virtual School Network), Education Code. SECTION 15. (a) Authorizes a school district or open-enrollment charter school providing an electronic course or a full-time program through the state virtual school network in accordance with Chapter 30A, Education Code, as that law existed immediately before the effective date of this Act, to continue to provide that course or full-time program as if that chapter were still in effect until the end of the 20262027 school year, except as provided by Subsection (b) of this section, notwithstanding the repeal by this Act of Chapter 30A, Education Code. (b) Requires that the funding provided to a school district or open-enrollment charter school for a student enrolled in an electronic course or full-time program offered through the state virtual school network in accordance with, or under a waiver of the provisions of, Chapter 30A, Education Code, as that law existed immediately before the effective date of this Act, be determined, as applicable, under Section 30B.007 or 30B.106, Education Code, as added by this Act. SECTION 16. Requires the commissioner to adopt rules providing an expedited authorization process for a school district or open-enrollment charter school that applies to operate a full-time hybrid campus or a full-time virtual campus under Chapter 30B, Education Code, as added by this Act, if the district or school, as of the effective date of this Act: (1) operates an electronic course or full-time program through the state virtual school network in accordance with Chapter 30A, Education Code, as that law existed immediately before the effective date of this Act; or (2) operates a virtual education program, regardless of whether the district or school received funding for students enrolled in the program during the 20222023, 20232024, or 20242025 school year. SECTION 17. Provides that this Act applies beginning with the 20252026 school year. SECTION 18. Effective date: upon passage or September 1, 2025.
BILL ANALYSIS
Senate Research Center C.S.S.B. 569
89R10450 TSS-F By: Bettencourt et al.
Education K-16
3/4/2025
Committee Report (Substituted)
Senate Research Center
C.S.S.B. 569
89R10450 TSS-F
By: Bettencourt et al.
Education K-16
3/4/2025
Committee Report (Substituted)
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
H.B. 3643, 87(R), established the Texas Commission on Virtual Education. The commission was established to develop and make recommendations regarding the delivery of virtual education in the public school system and state funding for virtual education under the Foundation School Program. The commission published a set of recommendations for the legislature that were unanimously supported and would ensure our state's education system is built for the future of learning and work.
Aligned to those recommendations, S.B. 569 would enable public school districts and charter schools to offer virtual and hybrid options to respond effectively to family and student demand for approaches that fit learners' unique needs. The bill creates adequate and equitable funding mechanisms and an authorization process to open new virtual and hybrid campuses. It also ensures access to advanced coursework in the face of longstanding challenges like local course availability and teacher shortages through continued access to individual virtual courses.
S.B. 569 seeks to:
Create new Chapter 30B to bring multiple pieces of statute under one new unified policy structure, aligned to the unanimous, bipartisan recommendations of the Commission on Virtual Education;
Repeal Chapter 30A (Texas Virtual School Network);
Allow districts and charter schools to offer individual virtual courses, full-time virtual schools, and full-time hybrid schools; and
Provide authorization for new schools, quality controls, school accountability, vendor accountability, funding guidelines, parent and student rights, teacher rights, teacher professional development, and startup grants for districts.
(Original Author's/Sponsor's Statement of Intent)
C.S.S.B. 569 amends current law relating to the provision of virtual education in public schools and to certain waivers and modifications by the commissioner of education to the method of calculating average daily attendance in an emergency or crisis for purposes of preserving school district funding entitlements under the Foundation School Program during that emergency or crisis and authorizes a fee.
RULEMAKING AUTHORITY
Rulemaking authority is expressly granted to the commissioner of education in SECTION 6 (Section 29.081, Education Code) and SECTION 7 (Sections 30B.002, 30B.007, and 30B.101, Education Code) of this bill.
Rulemaking authority previously granted to the commissioner of education is rescinded in SECTION 14 (Sections 29.909, 30A.006, 30A.051, 30A.103, 30A.109, 30A.111, 30A.113, 30A.114, 30A.115, and 30A.153, Education Code) of this bill.
Rulemaking authority previously granted to the State Board of Education is rescinded in SECTION 14 (Section 30A.103, Education Code) of this bill.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 1.001(b), Education Code, as follows:
(b) Deletes existing text providing that the Education Code, except as provided by Chapter 30A (State Virtual School Network) and certain other statutes, does not apply to students, facilities, or programs under the jurisdiction of certain entities. Makes a nonsubstantive change.
SECTION 2. Amends Section 7.0561(f), Education Code, as follows:
(f) Requires the commissioner of education (commissioner), in consultation with interested school districts, open-enrollment charter schools, and other appropriate interested persons, to adopt rules applicable to the consortium, according to the following principles for a next generation of higher performing public schools:
(1) engagement of students in digital learning, including engagement through the use of certain materials, and virtual or hybrid courses offered by school districts and open-enrollment charter schools under Chapter 30B, rather than courses offered through the state virtual school network under Subchapter 30A (General Provisions); and
(2)-(4) makes no changes to these subdivisions;
SECTION 3. Amends Section 25.007(b), Education Code, as follows:
(b) Requires the Texas Education Agency (TEA), in recognition of the challenges faced by students who are homeless or in substitute care, to assist the transition of students who are homeless or in substitute care from one school to another by performing certain actions, including promoting practices that facilitate access by a student who is homeless or in substitute care to extracurricular programs, summer programs, credit transfer services, virtual or hybrid courses provided under Chapter 30B, rather than electronic courses provided under Chapter 30A, and after-school tutoring programs at nominal or no cost.
SECTION 4. Amends the heading to Section 26.0031, Education Code, to read as follows:
Sec. 26.0031. RIGHTS CONCERNING VIRTUAL AND HYBRID COURSES.
SECTION 5. Amends Section 26.0031, Education Code, by amending Subsections (a), (b), (c), (c-1), (d), and (e) and adding Subsection (b-1), as follows:
(a) Requires a district or school, at the time and in the manner that the school district or open-enrollment charter school informs students and parents about courses that are offered in the district's or school's traditional classroom setting, to notify parents and students of the option to enroll in a virtual or hybrid course offered by the district or school in which the student is enrolled or by another district or school under Chapter 30B, rather than an electronic course offered through the state virtual school network, under Chapter 30A.
(b) Makes conforming changes to this subsection.
(b-1) Prohibits a school district or open-enrollment charter school from actively discouraging a student, including by threat or intimidation, from enrolling in a virtual or hybrid course.
(c) Authorizes a school district or open-enrollment charter school to deny a request to enroll a student in a virtual or hybrid course, rather than an electronic course, if:
(1) makes no changes to this subdivision;
(2) makes a conforming change to this subdivision; or
(3) the district or school determines that the cost of the course is too high, rather than offers a substantially similar course.
(c-1) Authorizes a school district or open-enrollment charter school to decline to pay the cost for a student of more than three yearlong virtual, rather than electronic, courses, or the equivalent, during any school year. Provides that this subsection does not:
(1) makes a conforming change to this subdivision; or
(2) apply to a student enrolled in a full-time virtual program, rather than a full-time online program that was operating on January 1, 2013.
(d) Makes conforming changes to this subsection.
(e) Requires a school district or open-enrollment charter school that denies a request to enroll a student in a virtual or hybrid course under Subsection (c) to provide a written explanation of the denial to the student and the student's parent. Requires that the written explanation provide notice of the student's ability to appeal the decision and an explanation of the appeal process, including the process of pursuing a final appeal heard by the board of trustees of the district or the governing board of the school. Provides that a determination made by the board of trustees of the school district or the governing board of the open-enrollment charter school under this subsection is final and is prohibited from being appealed. Deletes existing text authorizing a parent to appeal to the commissioner a school district's or open-enrollment charter school's decision to deny a request to enroll a student in an electronic course offered through the state virtual school network. Makes a nonsubstantive change.
SECTION 6. Amends Section 29.081, Education Code, by amending Subsections (e-2) and (f) and adding Subsections (f-1) and (i), as follows:
(e-2) Requires that a remote or hybrid dropout recovery education program meet certain criteria, including being a full-time hybrid program or a full-time virtual program, as those terms are defined by Section 30B.001, or a full-time hybrid or virtual campus authorized under Chapter 30B. Makes nonsubstantive changes.
(f) Requires the commissioner, except as provided by Subsection (f-1), to include a student who has enrolled in, rather than who successfully completes, a course offered through a program under Subsection (e) (relating to the use of certain programs to provide alternative education programs for students at risk of dropping out of school) in the computation of the district's or school's average daily attendance for funding purposes. Deletes existing text requiring the commissioner, for a student who successfully completes a remote course offered through the program, to include the student in the computation of the district's or school's average daily attendance with a certain attendance rate.
(f-1) Requires the commissioner to include a student enrolled in a remote or hybrid dropout recovery education program under Subsection (e-2) in the computation of the district's or school's average daily attendance for funding purposes in the same manner as students enrolled in a full-time hybrid or virtual program or full-time hybrid or virtual campus, as applicable, under Chapter 30B.
(i) Authorizes the commissioner to adopt rules as necessary to implement Section 29.081 (Compensatory, Intensive, and Accelerated Instruction).
SECTION 7. Amends Subtitle F, Title 2, Education Code, by adding Chapter 30B, as follows:
CHAPTER 30B. VIRTUAL AND HYBRID CAMPUSES, PROGRAMS, AND COURSES
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 30B.001. DEFINITIONS. Defines "full-time hybrid campus," "full-time hybrid program," "full-time virtual campus," "full-time virtual program," "hybrid course," "parent," "virtual course," and "whole program virtual instruction provider."
Sec. 30B.002. RULES. (a) Requires the commissioner to adopt rules as necessary to administer this chapter.
(b) Requires the commissioner, to the extent practicable, to consult school districts, open-enrollment charter schools, and parents in adopting rules under this section.
(c) Authorizes TEA to form an advisory committee to comply with the provisions of this section. Provides that Chapter 2110 (State Agency Advisory Committees), Government Code, does not apply to an advisory committee formed under this section.
Sec. 30B.003. GRANTS AND FEDERAL FUNDS. (a) Authorizes the commissioner, for purposes of this chapter, to seek and accept a grant from a public or private person.
(b) Provides that the commissioner, for purposes of this chapter, is authorized to accept federal funds and is required to use those funds in compliance with applicable federal law, regulations, and guidelines.
Sec. 30B.004. PROVISION OF COMPUTER EQUIPMENT OR INTERNET SERVICE. Provides that this chapter does not:
(1) require a school district, an open-enrollment charter school, a virtual course provider, or the state to provide a student with home computer equipment or Internet access for a virtual course provided by a school district or open-enrollment charter school; or
(2) prohibit a school district or open-enrollment charter school from providing a student with home computer equipment or Internet access for a virtual course provided by the district or school.
Sec. 30B.005. EXTRACURRICULAR ACTIVITY. Authorizes a student enrolled in a virtual or hybrid course, program, or campus offered under this chapter to participate in an extracurricular activity sponsored or sanctioned by the school district or open-enrollment charter school in which the student is enrolled or by the University Interscholastic League in the same manner as other district or school students.
Sec. 30B.006. HYBRID AND VIRTUAL INSTRUCTION PERMITTED. (a) Authorizes a school district or open-enrollment charter school to deliver instruction through hybrid courses, virtual courses, full-time hybrid programs, and full-time virtual programs in the manner provided by this chapter.
(b) Authorizes the following entities to deliver instruction through hybrid or virtual courses under this chapter in the same manner provided for a school district or open-enrollment charter school:
(1) a consortium of school districts or open-enrollment charter schools;
(2) an institution of higher education, as that term is defined by Section 61.003 (Definitions); or
(3) a regional education service center.
(c) Requires a school district or open-enrollment charter school that delivers instruction through a hybrid or virtual course to develop written information describing each hybrid or virtual course available for enrollment and complying with any other requirement of Section 26.0031.
(d) Provides that a school district or open-enrollment charter school is required to make information under this section available to students and parents at the time students ordinarily select courses and is authorized to provide that information to students and parents at other times as determined by the district or school.
Sec. 30B.007. FOUNDATION SCHOOL PROGRAM FUNDING. Requires the commissioner by rule to adopt procedures for reporting and verifying the attendance of a student enrolled in a hybrid course, virtual course, full-time hybrid program, or full-time virtual program provided by a school district or open-enrollment charter school under this chapter. Requires that the procedures provide a district or school with flexibility to provide instruction over the Internet, through synchronous or asynchronous delivery and allow for the district or school to, without requiring in-person attendance or synchronous instruction at a specific time or location, receive the same amount of funding per student for a course or program described by this section that the district or school would receive per student for that course or program if the course or program was provided fully in person.
SUBCHAPTER B. HYBRID AND VIRTUAL COURSES
Sec. 30B.051. HYBRID OR VIRTUAL COURSE QUALITY REQUIREMENTS. (a) Requires a school district or open-enrollment charter school that offers a hybrid or virtual course under this chapter to certify to the commissioner that the course:
(1) includes the appropriate essential knowledge and skills adopted under Subchapter A (Essential Knowledge and Skills; Curriculum), Chapter 28 (Courses of Study; Advancement);
(2) provides instruction at the appropriate level of rigor for the grade level at which the course is offered and will prepare a student enrolled in the course for the student's next grade level or a subsequent course in a similar subject matter; and
(3) except as provided by Subsection (b), meets standards for hybrid or virtual courses adopted by the commissioner.
(b) Requires a school district or open-enrollment charter school that offers a hybrid or virtual course, if the commissioner has not adopted applicable standards for hybrid or virtual courses, to instead certify to the commissioner that the course meets the National Standards for Quality Online Courses published by the Virtual Learning Leadership Alliance, Quality Matters, and DLAC, or a successor publication.
Sec. 30B.052. RIGHTS OF STUDENTS REGARDING HYBRID AND VIRTUAL COURSES. (a) Prohibits a school district or open-enrollment charter school, except as provided by Section 30B.104(b), from requiring a student to enroll in a hybrid or virtual course.
(b) Requires that a hybrid or virtual course offered under this chapter to a student receiving special education services or other accommodations meet the needs of the participating student in a manner consistent with Subchapter A (Special Education Program), Chapter 29, and with federal law, including the Individuals with Disabilities Education Act (20 U.S.C. Section 1400 et seq.) and Section 504, Rehabilitation Act of 1973 (29 U.S.C. Section 794), as applicable.
Sec. 30B.053. RIGHTS OF TEACHERS REGARDING HYBRID AND VIRTUAL COURSES. (a) Prohibits a school district or open-enrollment charter school, except as provided by Subsection (a-1), from requiring a classroom teacher to provide both virtual instruction and in-person instruction for a course offered under this chapter during the same class period. Authorizes the commissioner to waive the requirements of this subsection for courses included in the enrichment curriculum under Section 28.002 (Required Curriculum).
(a-1) Provides that Subsection (a) does not apply to a requirement that a classroom teacher simulcast the teacher's in-person instruction provided that the teacher is not required to interact with students observing the instruction virtually.
(b) Prohibits a classroom teacher from providing instruction for a hybrid or virtual course offered under this chapter unless:
(1) the teacher has received appropriate professional development in hybrid or virtual instruction, as determined by the school district or open-enrollment charter school at which the teacher is employed; or
(2) the district or school has determined that the teacher has sufficient previous experience to not require the professional development described by Subdivision (1).
(c) Prohibits a school district or open-enrollment charter school from directly or indirectly coercing any classroom teacher hired to provide in-person instruction to agree to an assignment to teach a hybrid or virtual course.
Sec. 30B.054. ASSESSMENTS. Requires that an assessment instrument administered under Section 39.023 (Adoption and Administration of Instruments) or 39.025 (Secondary-Level Performance Required) to a student enrolled in a hybrid or virtual course offered under this chapter, except as authorized by commissioner rule, be administered to the student in the same manner in which the assessment instrument is administered to a student enrolled in an in-person course at the student's school district or open-enrollment charter school.
Sec. 30B.055. TUITION AND FEES. Authorizes a school district or open-enrollment charter school to charge tuition and fees for a hybrid or virtual course provided to a student who:
(1) is not eligible to enroll in a public school in this state; or
(2) is not enrolled in the school district or open-enrollment charter school.
Sec. 30B.056. ATTENDANCE FOR CLASS CREDIT OR GRADE. Requires a school district or open-enrollment charter school, notwithstanding Section 25.092 (Minimum Attendance for Class Credit or Final Grade), to establish the participation necessary to earn credit or a grade for a hybrid or virtual course offered by the district or school.
Sec. 30B.057. AGENCY PUBLICATION OF AVAILABLE VIRTUAL COURSES. (a) Requires TEA to publish a list of virtual courses offered by school districts and open-enrollment charter schools in this state that includes:
(1) whether the course is available to a student who is not otherwise enrolled in the offering district or school;
(2) the cost of the course; and
(3) information regarding any third-party provider involved in the delivery of the course.
(b) Requires a school district or open-enrollment charter school to provide to TEA information required to publish the list under Subsection (a).
SUBCHAPTER C. FULL-TIME HYBRID AND FULL-TIME VIRTUAL CAMPUSES
Sec. 30B.101. FULL-TIME HYBRID OR FULL-TIME VIRTUAL CAMPUS AUTHORIZATION. (a) Authorizes a school district or open-enrollment charter school to operate a full-time hybrid campus or a full-time virtual campus if authorized by the commissioner in accordance with this section.
(b) Requires the commissioner to adopt rules establishing the requirements for and process by which a school district or open-enrollment charter school is authorized to apply for authorization to operate a full-time hybrid campus or a full-time virtual campus. Provides that the rules adopted by the commissioner are authorized to require certain written application materials and interviews and are required to require a school district or open-enrollment charter school to:
(1) engage in a year of planning before offering a course under this chapter to verify the course is designed in accordance with high-quality criteria;
(2) develop an academic plan that incorporates:
(A) curriculum and instructional practices aligned with the appropriate essential knowledge and skills provided under Subchapter A, Chapter 28;
(B) monitoring of the progress of student performance and interventions;
(C) a method for meeting the needs of and complying with federal and state requirements for special populations and at-risk students; and
(D) compliance with the requirements of this chapter;
(3) develop an operations plan that addresses:
(A) staffing models;
(B) the designation of selected school leaders;
(C) professional development for staff;
(D) student and family engagement;
(E) school calendars and schedules;
(F) student enrollment eligibility;
(G) cybersecurity and student data privacy measures; and
(H) any educational services to be provided by a private or third party; and
(4) demonstrate the capacity to execute the district's or school's plan successfully.
(c) Requires that a full-time hybrid campus or full-time virtual campus authorized under this section include:
(1) at least one grade level in which an assessment instrument is required to be administered under Section 39.023(a) (relating to requiring TEA to adopt or develop appropriate criterion-referenced assessment instruments designed to assess essential knowledge and skills in certain subjects) or (c) (relating to requiring TEA to adopt end-of-course assessment instruments for secondary-level courses in certain subjects), including each subject or course for which an assessment instrument is required in that grade level;
(2) sufficient grade levels, as determined by the commissioner, to allow for the annual evaluation of the performance of students who complete the courses offered; or
(3) for a campus that does not include grade levels described by Subdivision (1) or (2), another performance evaluation measure approved by the commissioner during the authorization process.
(d) Authorizes a campus approved under this subchapter only to apply for and receive authorization to operate as a full-time hybrid campus or a full-time virtual campus. Prohibits a campus from changing its operation designation during the authorization process or after the campus is authorized.
(e) Authorizes the commissioner to authorize a school district or open-enrollment charter school to operate a full-time hybrid campus or a full-time virtual campus only if the commissioner determines that the authorization of the campus is likely to result in improved student learning opportunities. Requires the commissioner, if a district or school will use a private or third party in operating the campus, to consider the historical performance of the private or third party, if known, in making a determination under this section.
(f) Provides that a determination made by the commissioner under this section is final and not subject to appeal.
Sec. 30B.102. REVOCATION. (a) Provides that, unless revoked as provided by this section, the commissioner's authorization of a full-time hybrid campus or full-time virtual campus under Section 30B.101 continues indefinitely.
(b) Requires the commissioner to revoke the authorization of a full-time hybrid campus or full-time virtual campus if the campus has been assigned, for the three preceding school years:
(1) a needs improvement or unacceptable performance rating under Subchapter C (Accreditation), Chapter 39 (Public School System Accountability);
(2) a rating of performance that needs improvement or unacceptable, as determined by the commissioner, on a performance evaluation approved by the commissioner under Section 30B.101(c)(3); or
(3) any combination of the ratings described by Subdivision (1) or (2).
(c) Authorizes the commissioner to, based on a special investigation conducted under Section 39.003 (Special Investigations):
(1) revoke an authorization of a full-time hybrid campus or full-time virtual campus; or
(2) require any intervention authorized under that section.
(d) Requires the commissioner, if a private or third party is determined to be ineligible under Section 30B.152, to revoke an authorization of a full-time hybrid campus or full-time virtual campus for which the private or third party acts as a whole program virtual instruction provider, unless the commissioner approves a request by the school district or open-enrollment charter school that operates the campus to use an alternative private or third party.
(e) Requires that an appeal by a school district or open-enrollment charter school of a revocation of an authorization under this chapter that results in the closure of a campus be made under Section 39A.301 (Review of Sanctions by State Office of Administrative Hearings).
Sec. 30B.103. STUDENT ELIGIBILITY. (a) Provides that a student eligible to enroll in a public school of this state is eligible to enroll at a full-time hybrid campus.
(b) Provides that a student is eligible to enroll in a full-time virtual campus if the student:
(1) attended a public school in this state for a minimum of six weeks in the current school year or in the preceding school year;
(2) is, in the school year in which the student first seeks to enroll in the full-time virtual campus, enrolled in the first grade or a lower grade level;
(3) was not required to attend public school in this state due to nonresidency during the preceding school year;
(4) is a dependent of a member of the United States military who has been deployed; or
(5) has been placed in substitute care in this state.
Sec. 30B.104. STUDENT RIGHTS REGARDING FULL-TIME HYBRID AND FULL-TIME VIRTUAL CAMPUSES. (a) Prohibits a student enrolled in a school district from being compelled to enroll in a full-time hybrid or full-time virtual campus. Requires a school district to offer the option for a student's parent to select in-person instruction for the student.
(b) Authorizes an open-enrollment charter school, notwithstanding Subsection (a) or Section 30B.052, to require a student to attend a full-time hybrid or full-time virtual campus.
Sec. 30B.105. CAMPUS DESIGNATIONS. Requires the commissioner to determine and assign a unique campus designation number to each full-time hybrid campus or full-time virtual campus authorized under this subchapter.
Sec. 30B.106. FUNDING. (a) Requires the commissioner, for purposes of calculating the average daily attendance of students attending a full-time hybrid campus or full-time virtual campus, to use the number of full-time equivalent students enrolled in the full-time hybrid or full-time virtual campus multiplied by the average attendance rate of the school district or open-enrollment charter school that offers the full-time hybrid or full-time virtual campus not including any student enrolled full-time in a full-time hybrid or full-time virtual campus. Requires the commissioner, in the event that a reliable attendance rate cannot be determined under this section, to use the statewide average attendance rate.
(b) Requires the commissioner to provide proportionate funding to the applicable school district or open-enrollment charter school for a student that alternates attendance between a traditional, in-person campus setting and the full-time hybrid or full-time virtual campus of any single district or school in the same school year.
SUBCHAPTER D. PRIVATE AND THIRD-PARTY PROVIDERS
Sec. 30B.151. NOTICE AND USE OF PRIVATE OR THIRD PARTY. (a) Requires a school district or open-enrollment charter school to provide notice to the commissioner of the use of or change in affiliation of a private or third party acting as a whole program virtual instruction provider for a full-time hybrid or full-time virtual campus or program.
(b) Prohibits a school district or open-enrollment charter school, except as provided by Section 30B.152, from using a private or third party to act as a whole program virtual instruction provider if the party has been determined to be ineligible under that section.
Sec. 30B.152. PRIVATE OR THIRD-PARTY ACCOUNTABILITY. (a) Requires the commissioner, to the extent feasible, to evaluate the performance of a private or third party acting as a whole program virtual instruction provider for a school district or open-enrollment charter school.
(b) Requires the commissioner to establish a standard to determine if a private or third party is ineligible to act as a whole program virtual instruction provider. Provides that a private or third party determined to be ineligible under this section remains ineligible until after the fifth anniversary of that determination.
(c) Authorizes a school district or open-enrollment charter school to use a private or third party determined to be ineligible under Subsection (b) as a whole program virtual instruction provider if:
(1) the district or school requests approval from the commissioner; and
(2) the commissioner determines that the reasons the private or third party was declared ineligible under Subsection (b) will not affect the operation of the party as a whole program virtual instruction provider at the district or school.
SUBCHAPTER E. STATE SUPPORT
Sec. 30B.201. EDUCATOR PROFESSIONAL DEVELOPMENT. Requires TEA, from funds appropriated or otherwise available, to develop professional development courses and materials aligned with research-based practices for educators in providing high-quality virtual education.
Sec. 30B.202. DEVELOPMENT GRANTS FOR VIRTUAL EDUCATION. Requires TEA, from funds appropriated or otherwise available, to provide grants and technical assistance to school districts and open-enrollment charter schools to aid in the establishment of high-quality full-time hybrid or full-time virtual campuses.
SECTION 8. Amends Section 33.009(d), Education Code, to make conforming changes.
SECTION 9. Amends Subchapter A, Chapter 37, Education Code, by adding Section 37.0071, as follows:
Sec. 37.0071. VIRTUAL EDUCATION AS ALTERNATIVE TO EXPULSION. (a) Requires a school district or open-enrollment charter school, except as provided by Subsection (b), before the district or school is authorized to expel a student, to consider the appropriateness and feasibility of, as an alternative to expulsion, enrolling the student in a full-time hybrid program, full-time virtual program, full-time hybrid campus, or full-time virtual campus, as those terms are defined in Section 30B.001.
(b) Provides that Subsection (a) does not apply to a student expelled under Section 37.0081 (Expulsions and Placement of Certain Students in Alternative Settings) or 37.007(a) (relating to requiring a student to be expelled if the student, on school property or while attending a school-sponsored or school-related activity on or off of school property, engages in certain conduct, without regard to whether the conduct occurs on or off school property or at a school event), (d) (relating to requiring a student to be expelled if the student engages in certain conduct), or (e) (relating to requiring a student who brings a firearm to school to be expelled).
SECTION 10. Amends Section 48.005, Education Code, by adding Subsection (e-1), as follows:
(e-1) Requires the commissioner, in a school year in which the occurrence of an emergency or crisis, as defined by commissioner rule, causes a statewide decrease in average daily attendance of school districts entitled to funding under Chapter 48 (Foundation School Program) or, for an emergency or crisis occurring only within a specific region of this state, causes a regional decrease in the average daily attendance of school districts located in the affected region, to modify or waive requirements applicable to the affected districts under Section 48.005 (Average Daily Attendance) and adopt appropriate safeguards as necessary to ensure the continued support and maintenance of an efficient system of public free schools and the continued delivery of high-quality instruction under that system.
SECTION 11. Amends Section 48.053(b), Education Code, as follows:
(b) Provides that a school district to which Section 48.053 (Allotment for Certain Special-Purpose School Districts) applies is entitled to funding under this chapter as if the district were a full-time hybrid campus or full-time virtual campus for purposes of Section 30B.106 with no tier one local share for purposes of Section 48.256 for each student enrolled in the district who meets certain requirements. Makes a nonsubstantive change.
SECTION 12. Amends Section 48.104(f), Education Code, as follows:
(f) Requires a student receiving a full-time virtual education provided through a full-time virtual campus under Chapter 30B to be included in determining the number of students who are educationally disadvantaged and reside in an economically disadvantaged census block group under certain subsections, as applicable. Deletes existing text authorizing a student receiving a full-time virtual education through the state virtual school network to be included in determining the number of students who are educationally disadvantaged and reside in an economically disadvantaged census block group under certain subsections, as applicable, if the school district submits to the commissioner a plan detailing the enhanced services that will be provided to the student and the commissioner approves the plan.
SECTION 13. Amends Section 48.111, Education Code, by amending Subsection (b) and adding Subsection (b-1), as follows:
(b) Makes a conforming change to this subsection.
(b-1) Requires the commissioner, for purposes of Subsection (a) (relating to entitling a school district to a certain annual allotment), in determining the number of students enrolled in a school district, to exclude students enrolled in the district who receive full-time instruction through the state virtual school network under Chapter 30A as that chapter existed on September 1, 2024. Provides that this subsection expires September 1, 2031.
SECTION 14. Repealer: Section 26.0031(f) (relating to a school district or open-enrollment charter school having discretion to select a course provider approved by the network's administering authority for an electronic course in which a student will enroll), Education Code.
Repealer: Section 29.909 (Distance Learning Courses), Education Code.
Repealer: Chapter 30A (State Virtual School Network), Education Code.
SECTION 15. (a) Authorizes a school district or open-enrollment charter school providing an electronic course or a full-time program through the state virtual school network in accordance with Chapter 30A, Education Code, as that law existed immediately before the effective date of this Act, to continue to provide that course or full-time program as if that chapter were still in effect until the end of the 20262027 school year, except as provided by Subsection (b) of this section, notwithstanding the repeal by this Act of Chapter 30A, Education Code.
(b) Requires that the funding provided to a school district or open-enrollment charter school for a student enrolled in an electronic course or full-time program offered through the state virtual school network in accordance with, or under a waiver of the provisions of, Chapter 30A, Education Code, as that law existed immediately before the effective date of this Act, be determined, as applicable, under Section 30B.007 or 30B.106, Education Code, as added by this Act.
SECTION 16. Requires the commissioner to adopt rules providing an expedited authorization process for a school district or open-enrollment charter school that applies to operate a full-time hybrid campus or a full-time virtual campus under Chapter 30B, Education Code, as added by this Act, if the district or school, as of the effective date of this Act:
(1) operates an electronic course or full-time program through the state virtual school network in accordance with Chapter 30A, Education Code, as that law existed immediately before the effective date of this Act; or
(2) operates a virtual education program, regardless of whether the district or school received funding for students enrolled in the program during the 20222023, 20232024, or 20242025 school year.
SECTION 17. Provides that this Act applies beginning with the 20252026 school year.
SECTION 18. Effective date: upon passage or September 1, 2025.