APPENDIX A 

2015 Texas House Bill No. 1170, Texas Eighty-Fourth 

Legislature, Enrolled Version 

2101831v.1 

 FILED IN 1st COURT OF APPEALS HOUSTON, TEXAS 8/14/2015 11:07:55 AM CHRISTOPHER A. PRINE Clerk
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 ILChapter 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 

1 
H.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 

4 

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: G - /7- 740/4-- 

Date 

deaddovi 

Gover 

FILED IN THE OFFICE OF THE 

SECRETARY OF STATE 

30 ✓ O'CLOCK 

JUN 19 

Secretary of State 

3 
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 1 
LEGISLATIVE 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 1 
LEGISLATIVE 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 

Page 1 of 1 
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 

es 

Page 1 of 1 
APPENDIX B 

TEX. EDUC. CODE § 12.1058 

2101831v.1 
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 

2101831v.1 
2015 Texas House Bill No. 1170 Texas Eighty-Fourth..., 2015 Texas House 

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 

05/11/2015 (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 

WestiaryNext © 2015 Thomson Reuters. No claim to original U.S. Government Works. 
2015 Texas House Bill No. 1170 Texas Eighty-Fourth..., 2015 Texas House 

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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APPENDIX D 

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

2101831v,1 
2015 Texas House Bill No. 1170, Texas Eighty-Fourth..., 2015 Texas House 

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 that 

help 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, 

WestiawNext"© 2015 Thomson Reuters. No claim to original U.S. Government Works. 1 
2015 Texas House Bill No. 1170, Texas Eighty-Fourth..., 2015 Texas House 

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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APPENDIX E 

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

2101831v.1 
2015 Texas House Bill No. 1170, Texas Eighty-Fourth..., 2015 Texas House 

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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2015 Texas House Bill No. 1170, Texas Eighty-Fourth..., 2015 Texas House 

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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