85R12774 KKA-F     By: Gervin-Hawkins H.B. No. 3518       A BILL TO BE ENTITLED   AN ACT   relating to open-enrollment charter school facilities.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 12.106, Education Code, is amended by   adding Subsection (d) to read as follows:          (d)  In addition to other amounts provided by this section, a   charter holder is entitled to receive, for the open-enrollment   charter school, funding per student in average daily attendance in   an amount equal to the guaranteed level of state and local funds per   student per cent of tax effort under Section 46.032(a) multiplied   by the state average interest and sinking fund tax rate imposed by   school districts for the current year.          SECTION 2.  Subchapter D, Chapter 12, Education Code, is   amended by adding Section 12.1062 to read as follows:          Sec. 12.1062.  FINANCIAL ASSISTANCE FOR FACILITIES. (a)   Using funds appropriated or otherwise available for the purpose,   the commissioner shall develop and implement a program under which   the state provides financial assistance to a charter holder seeking   to construct or acquire adequate facilities for student   instruction.          (b)  The program may include:                (1)  the provision of forgivable loans, including loans   for a period of not more than 25 years structured so that each year   that the charter holder successfully operates the open-enrollment   charter school, the charter holder is released from the obligation   to pay that year's portion of the loan;                (2)  a loan guarantee process for a charter holder that   has successfully operated an open-enrollment charter school for at   least five years; and                (3)  the provision of assistance to charter holders in   obtaining loans for facilities directly from private lenders.          (c)  The commissioner shall adopt rules necessary to   implement this section.          SECTION 3.  Section 12.128, Education Code, is amended by   amending Subsection (c) and adding Subsection (c-1) to read as   follows:          (c)  Except as provided by Subsection (c-1), the [The]   commissioner shall:                (1)  take possession and assume control of the property   described by Subsection (a) of an open-enrollment charter school   that ceases to operate; and                (2)  supervise the disposition of the property in   accordance with law.          (c-1)  A charter holder may retain property described by   Subsection (a) after the open-enrollment charter school ceases to   operate if the charter holder operated the school for at least four   years before it ceased to operate. A charter holder that retains   property under this subsection must use the property for a   charitable purpose.          SECTION 4.  This Act takes effect September 1, 2017.