## APPENDIX A 2015 Texas House Bill No. 1170, Texas Eighty-Fourth

Legislature, Enrolled Version

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## Chapter 1020

H.B. No. 1170

1 AN ACT 2 relating to the applicability to open-enrollment charter schools of 3 certain laws regarding local governments and political 4 subdivisions. 5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 6 SECTION 1. Subchapter D, Chapter 12, Education Code, is 7 amended by adding Section 12.1058 to read as follows: 8 Sec. 12.1058. APPLICABILITY OF OTHER LAWS. (a) An 9 open-enrollment charter school is considered to be: 10 (1) a local government for purposes of Chapter 791, 11 Government Code; 12 (2) a local government for purposes of Chapter 2259, 13 Government Code, except that an open-enrollment charter school may 14 not issue public securities as provided by Section 2259.031(b), 15 Government Code; 16 (3) a political subdivision for purposes of Chapter 17 172, Local Government Code; and 18 (4) a local governmental entity for purposes of 19 Subchapter I L Chapter 271, Local Government Code. 20 (b) An open-enrollment charter school may elect to extend 21 workers' compensation benefits to employees of the school through 22 any method available to a political subdivision under Chapter 504, 23 Labor Code. An open-enrollment charter school that elects to 24 extend workers' compensation benefits as permitted under this


### 1H.B. No. 1170 1 subsection is considered to be a political subdivision for all 2 purposes under Chapter 504, Labor Code. An open-enrollment charter 3 school that self-insures either individually or collectively under 4 Chapter 504, Labor Code, is considered to be an insurance carrier 5 for purposes of Subtitle A, Title 5, Labor Code. 6 (c) Notwithstanding Subsection (a) or (b), an 7 open-enrollment charter school operated by a tax exempt entity as 8 described by Section 12.101(a)(3) is not considered to be a 9 political subdivision, local government, or local governmental 10 entity unless the applicable statute specifically states that the 11 statute applies to an oRen-enrollment charter school. 12 SECTION 2. This Act takes effect immediately if it receives 13 a vote of two-thirds of all the members elected to each house, as 14 provided by Section 39, Article III, Texas Constitution. If this 15 Act does not receive the vote necessary for immediate effect, this 16 Act takes effect September 1, 2015.

2. 1170

Speaker of the House

Chief Clerk of the Hous 

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of 

## 7:Senate rtify that H.B. No. 1170 was passed by the House on May 8, 201 .y the following vote: Yeas 138, Nays 1, 1 present, not voting; and that the House concurred in Senate amendments to H.B. No. 1170 on May 29, 2015, by the following vote: Yeas 140, Nays 2, 2 present, not voting.

I certify that H.B. No. 1170 was passed by the Senate, with amendments, on May 27, 2015, by the following vote: Yeas 31, Nays 

### 0.

APPROVED: 

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FILED IN THE OFFICE OF THE SECRETARY OF STATE 30 ✓ O'CLOCK 

### JUN 19 Secretary of State

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### LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION

May 28, 2015 TO: Honorable Joe Straus, Speaker of the House, House of Representatives FROM: Ursula Parks, Director, Legislative Budget Board IN RE: HB1170 by Farney (Relating to the applicability to open-enrollment charter schools of certain laws regarding local governments and political subdivisions.), As Passed 2nd House No fiscal implication to the State is anticipated. The bill would amend the Education Code to give open enrollment charter schools certain rights and duties extended to open governments under the Government Code. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: 454 Department of Insurance, 701 Central Education Agency LBB Staff: UP, SD, JBi, JLi

Page 1 of 1LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION

May 21, 2015 TO: Honorable Larry Taylor, Chair, Senate Committee on Education FROM: Ursula Parks, Director, Legislative Budget Board IN RE: HB1170 by Farney (relating to the applicability to open-enrollment charter schools of certain laws regarding local governments and political subdivisions.), Committee Report 2nd House, Substituted No fiscal implication to the State is anticipated. The bill would amend the Education Code to give open enrollment charter schools certain rights and duties extended to open governments under the Government Code. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: 454 Department of Insurance, 701 Central Education Agency LBB Staff: UP, JBi, JLi

Page 1 of 1LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION

May 18, 2015 TO: Honorable Larry Taylor, Chair, Senate Committee on Education FROM: Ursula Parks, Director, Legislative Budget Board IN RE: HB1170 by Farney (Relating to the applicability to open-enrollment charter schools of certain laws regarding local governments and political subdivisions.), As Engrossed No fiscal implication to the State is anticipated. The bill would amend the Education Code to give open enrollment charter schools certain rights and duties extended to open governments under the Government Code. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: 454 Department of Insurance, 701 Central Education Agency LBB Staff: UP, JE3i, JLi

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### LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION

April 3, 2015 TO: Honorable Jimmie Don Aycock, Chair, House Committee on Public Education FROM: Ursula Parks, Director, Legislative Budget Board IN RE: HB1170 by Farney (Relating to the applicability to open-enrollment charter schools of certain laws regarding local governments and political subdivisions.), As Introduced No fiscal implication to the State is anticipated. The bill would amend the Education Code to give open enrollment charter schools certain rights and duties extended to open governments under the Government Code. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: 454 Department of Insurance, 701 Central Education Agency 

### LBB Staff: UP, J131, JLi 

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## APPENDIX B TEX. EDUC. CODE § 12.1058

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## Tex. Educ. Code § 12,1058

This document is current through the 2015 regular session, 84th Legislature, S.B. 45, S.B. 293 (ch. 2), S.B. 415(ch. 15), S.B. 459, S.B. 529 (ch. 37), S.B. 835 (ch. 6), S.B. 901 (ch. 54), S.B. 903 (ch. 3), S.B. 1749 (ch. 29), and S.B. 1985 (ch. 4). 

### Texas Statutes & Codes Annotated by LexisNexis() > Education 

### Code > Title 2 Public Education > Subtitle C Local Organization and Governance > Chapter 12 Charters > Subchapter D Open-Enrollment Charter School 

## Sec. 12.1058. Applicability of Other Laws. (a) An open-enrollment charter school is considered to be: (1) a local government for purposes of Chapter 791, Government Code; (2) a local government for purposes of Chapter 2259, Government Code, except that an open-enrollment charter school may not issue public securities as provided by Section 2259.031(b), Government Code; (3) a political subdivision for purposes of Chapter 172, Local Government Code; and (4) a local governmental entity for purposes of Subchapter I, Chapter 271, Local Government Code. (b) An open-enrollment charter school may elect to extend workers' compensation benefits to employees of the school through any method available to a political subdivision under Chapter 504, Labor Code. An open-enrollment charter school that elects to extend workers compensation benefits as permitted under this subsection is considered to be a political subdivision for all purposes under Chapter 504, Labor Code. An open-enrollment charter school that self-insures either individually or collectively under Chapter 504, Labor Code, is considered to be an insurance carrier for purposes of Subtitle A, Title 5, Labor Code. (c) Notwithstanding Subsection (a) or (b), an open-enrollment charter school operated by a tax exempt entity as described by Section 12.101(a)(3) is not considered to be a political subdivision, local government, or local governmental entity unless the applicable statute specifically states that the statute applies to an open-enrollment charter school. 

## History Enacted by Acts 2015, 84th Leg., ch. HB1170 (H.B. 1170), § 1, effective June 19, 2015. Texas Statutes & Codes Annotated by LexisNexis® Copyright © 2015 Matthew Bender & Company, Inc. a member of the LexisNexis Group. All rights reserved.

## APPENDIX C

House Bill No. 1170, Legislative History, Summary of Status

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## NETSCAN 2015 Texas House Bill No. 1170 Texas Eighty-Fourth Legislature

TEXAS BILL TRACKING TITLE: Relating to the applicability to open-enrollment charter schools of certain laws regarding local governments and political subdivisions. AUTHOR: Farney, Villalba, Fallon, Lucio SUMMARY: Relating to the applicability to open-enrollment charter schools of certain laws regarding local governments and political subdivisions. STATUS: 02/05/2015 (H) FILED 03/03/2015 (H) READ FIRST TIME 03/03/2015 (H) REFERRED TO PUBLIC EDUCATION 04/07/2015 (H) SCHEDULED FOR PUBLIC HEARING ON . . . 04/07/2015 (H) CONSIDERED IN PUBLIC HEARING 04/07/2015 (H) TESTIMONY TAKEN/REGISTRATION(S) RECORDED IN COMMITTEE 04/07/2015 (H) LEFT PENDING IN COMMITTEE 04/20/2015 (H) CONSIDERED IN FORMAL MEETING 04/20/2015 (H) REPORTED FAVORABLY WITHOUT AMENDMENT(S) 04/22/2015 (H) COMMITTEE REPORT FILED WITH COMMITTEE COORDINATOR 04/23/2015 (H) COMMITTEE REPORT DISTRIBUTED 04/23/2015 (H) COMMITTEE REPORT SENT TO CALENDARS 05/04/2015 (H) CONSIDERED IN CALENDARS 05/07/2015 (H) PLACED ON GENERAL STATE CALENDAR 05/07/2015 (H) READ 2ND TIME 05/07/2015 (H) PASSED TO ENGROSSMENT 05/08/2015 (H) READ 3RD TIME 05/08/2015 (H) PASSED 05/08/2015 (H) RECORD VOTE 05/11/2015 (H) REPORTED ENGROSSED 05/1 1 / 2 015 (S) RECEIVED FROM THE HOUSE 05/11/2015 (S) READ FIRST TIME 05/11/2015 (S) REFERRED TO EDUCATION 05/18/2015 (S) POSTING RULE SUSPENDED 05/19/2015 (S) SCHEDULED FOR PUBLIC HEARING ON . . 05/19/2015 (S) CONSIDERED IN PUBLIC HEARING 05/19/2015 (S) TESTIMONY TAKEN IN COMMITTEE 05/19/2015 (S) LEFT PENDING IN COMMITTEE 05/20/2015 (S) CONSIDERED IN PUBLIC HEARING 05/21/2015 (S) REPORTED FAVORABLY AS SUBSTITUTED 05/21/2015 (S) RECOMMENDED FOR LOCAL & UNCONTESTED CALENDAR 05/22/2015 (S) COMMITTEE REPORT PRINTED AND DISTRIBUTED
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05/26/2015 (S) PLACED ON LOCAL & UNCONTESTED CALENDAR 05/26/2015 (S) REMOVED FROM LOCAL & UNCONTESTED CALENDAR 05/27/2015 (S) PLACED ON INTENT CALENDAR 05/27/2015 (S) RULES SUSPENDED-REGULAR ORDER OF BUSINESS 05/27/2015 (S) READ 2ND TIME & PASSED TO 3RD READING 05/27/2015 (S) VOTE RECORDED IN JOURNAL 05/27/2015 (S) THREE DAY RULE SUSPENDED 05/27/2015 (S) RECORD VOTE 05/27/2015 (S) READ 3RD TIME 05/27/2015 (S) PASSED 05/27/2015 (S) RECORD VOTE 05/28/2015 (H) SENATE PASSAGE AS AMENDED REPORTED 05/28/2015 (H) SENATE AMENDMENTS DISTRIBUTED 05/28/2015 (H) SENATE AMENDMENTS ANALYSIS DISTRIBUTED 05/29/2015 (H) HOUSE CONCURS IN SENATE AMENDMENT(S) 05/29/2015 (H) RECORD VOTE 05/29/2015 (H) STATEMENT(S) OF VOTE RECORDED IN JOURNAL 05/29/2015 (H) TEXT OF SENATE AMENDMENT(S) 05/29/2015 (S) HOUSE CONCURS IN SENATE AMENDMENT(S)-REPORTED 05/30/2015 (H) REPORTED ENROLLED 05/31/2015 (H) SIGNED IN THE HOUSE 06/01/2015 (S) SIGNED IN THE SENATE 06/01/2015 SENT TO THE GOVERNOR 06/19/2015 SIGNED BY THE GOVERNOR 06/19/2015 EFFECTIVE IMMEDIATELY

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## NETECAN

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## APPENDIX D

House Bill No. 1170, Bill Analysis, Public Education/Committee Report

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## NETSCAN
2015 TX H.B. 1170 (NS) 2015 Texas House Bill No. 117o, Texas Eighty-Fourth Legislature

TEXAS COMMITTEE REPORT TITLE: Relating to the applicability to open-enrollment charter schools of certain laws regarding local governments and political subdivisions. VERSION: GeneralApril 23, 2015Version Date April 23, 2015 Farney TEXT: BILL ANALYSIS H.B. 1170 By: Farney Public Education Committee Report (Unamended) BACKGROUND AND PURPOSE Interested parties note that while open-enrollment charter schools are similar to traditional public school districts in that they receive state funds, charter schools are not afforded some of the statutory protections thathelp safeguard public funds and sustain financial viability that are afforded to school districts. H.B. 1170 seeks to enable openenrollment charter schools to better plan and manage risks associated with civil liability, employee benefits, and workers' compensation insurance coverage. CRIMINAL JUSTICE IMPACT It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS H.B. 1170 amends the Education Code to establish that an open-enrollment charter school is considered to be a local government for purposes of the Interlocal Cooperation Act; a local government for purposes of Government Code provisions relating to self-insurance by governmental units, except that an open-enrollment charter school is prohibited from issuing public securities; and a political subdivision for purposes of the Texas Political Subdivision Employees Uniform Group Benefits Act. H.B. 1170 authorizes an open-enrollment charter school to elect to extend workers' compensation benefits to employees of the school through any method available to a political subdivision under Labor Code provisions relating to workers' compensation insurance coverage for employees of political subdivisions. The bill establishes that an open-enrollment charter school that elects to do so is considered to be a political subdivision for all purposes under those provisions and that an open-enrollment charter school that self-insures either individually or collectively under those provisions is considered to be an insurance carrier for purposes of the Texas Workers' Compensation Act,
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EFFECTIVE DATE On passage, or, if the bill does not receive the necessary vote, September 1, 2015. 2015 TX H.B. 1170 (NS) 2015 TX H.B. 1170 (NS)

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## NETSCAN

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## APPENDIX E

House Bill No. 1170, Bill Analysis, Author's/Sponsor's Statement of Intent

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## NETSCAN
2015 TX H.B. 1170 (NS) 2015 Texas House Bill No. 1170, Texas Eighty-Fourth Legislature

TEXAS COMMITTEE REPORT TITLE: Relating to the applicability to open-enrollment charter schools of certain laws regarding local governments and political subdivisions. VERSION: GeneralMay 11, 2015Version Date May 11, 2015 Farney, Villalba, Fallon, Lucio TEXT: BILL ANALYSIS Senate Research Center H.B. 1170 84R7556 CAE-F By: Farney et al. (Lucio) Education 5/13/2015 Engrossed AUTHOR'S / SPONSOR'S STATEMENT OF INTENT In order to control costs, school districts can enter into inter-local contracts and risk pools with neighboring localities. These arrangements strengthen the districts' bargaining positions for purchasing materials and contracting for services, and dilute the unforeseen costs of insurance claims. Currently, open-enrollment charter schools may not engage in similar arrangements, despite the fact that they also use public money. Without access to the same inter-local agreements and risk-sharing pools, public costs associated with charter schools will continue to rise. H.B. 1170 addresses this issue by including open-enrollment charter schools in the definition of local governments for the purposes of inter-local cooperation contracts, self-insurance, and group benefits agreements. This will allow charters to engage in cooperative agreements with other charters, local school districts, and other governmental entities to lower the costs of purchases, services, and insurance for their employees. The provisions of H.B. 1170, by controlling these costs, Will ensure that public education money remains in the classroom. H.B. 1170 amends current law relating to the applicability to open-enrollment charter schools of certain laws regarding local governments and political subdivisions. RULEMAKING AUTHORITY This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS
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SECTION 1. Amends Subchapter D, Chapter 12, Education Code, by adding Section 12.1058, as follows: Sec. 12.1058. APPLICABILITY OF OTHER LAWS. (a) Provides that an open-enrollment charter school is considered to be: (1) a local government for purposes of Chapter 791 (Interlocal Cooperation Contracts), Government Code; (2) a local government for purposes of Chapter 2259 (Self-Insurance By Governmental Units), Government Code, except that an open-enrollment charter school may not issue public securities as provided by Section 2259.031(b) (authorizing a governmental unit to perform certain duties), Government Code; and (3) a political subdivision for purposes of Chapter 172 (Texas Political Subdivisions Uniform Group Benefits Program), Local Government Code. (b) Authorizes an open-enrollment charter school to elect to extend workers' compensation benefits to employees of the school through any method available to a political subdivision under Chapter 504 (Workers Compensation Insurance Coverage for Employees of Political Subdivisions), Labor Code. Provides that an open-enrollment charter school that elects to extend workers' compensation benefits as permitted under this subsection is considered to be a political subdivision for all purposes under Chapter 504, Labor Code. Provides that an open-enrollment charter school that self-insures either individually or collectively under Chapter 504, Labor Code, is considered to be an insurance carrier for purposes of Subtitle A (Texas Workers Compensation Act), Title 5 (Workers Compensation), Labor Code. SECTION 2. Effective date: upon passage or September 1, 2015.
2015 TX H.B. 1170 (NS) 2015 TX H.B. 1170 (NS)
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## NETSCAN

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