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For Public Comment:

Proposed Terms of Participation

2004-2005 Electronic Course Pilot

General Information: Texas school districts and open-enrollment charter holders interested in participating in the 2004-2005 Electronic Course Pilot (eCP) are required to submit the eCP Application to Participate. It is anticipated that no more than 15-20 Texas public school districts or open-enrollment charter holders (hereafter referred to as charter schools) will be selected for participation in the 2004-2005 eCP.

A fee of $150 per student with a minimum of $3,000 from each district and charter school selected for participation in the 2004-2005 eCP, will be due to the Texas Education Agency (TEA) upon final signature of the eCP Participation Contract and may be paid quarterly. The first payment shall be paid at the time of final signature of the eCP Participation Contract. The fee will be used to partially offset the cost of administering the project.

eCP applicants must propose one or more funding models in their eCP Application for students included in their eCP program. The programs and funding models of applicants selected for participation must be approved by TEA through a negotiation process resulting in a final eCP Participation Contract. Each funding method proposed must include a detailed, observable and measurable method describing how the eCP participant will monitor and verify a student’s participation and progress in a course in accordance with the stated instructional plan and course expectations; and a detailed, observable and measurable method describing how the eCP participant will translate (equate) a student’s participation and progress in the course to the state’s current system of calculating ADA earned by students in the regular program. This equated funding method will serve as the student’s attendance for purposes of calculating Foundation School Program (FSP) funding for participation in an eCP course. Under no circumstance will a student be eligible to earn the equivalent of more than one full Average Daily Attendance (ADA).

School districts and open-enrollment charters may include in the eCP only those Grades

3-12 Texas public school students who are enrolled in their school; reside within their school district boundaries or the existing boundaries of the charter school geographic service area; and whom they are already authorized to serve consistent with state law, existing boundaries of their geographic service area, and the eCP Terms of Participation, unless there is a written agreement with the student’s home district (district of residence).

No program may enroll more than 5% of the student population of any individual district. Students enrolled in the eCP program at a charter school will be counted toward the school’s enrollment cap. Charter schools may not exceed or increase their enrollment cap or geographic service area to serve more students than they are already authorized to serve according to their existing charter limitations, for purposes of participation in the eCP program.

All eCP participants shall be included in the state’s accountability system and all accountability measures shall apply.

Selection for participation is limited to the time covered by the 2004-2005 eCP. The 2004-2005 eCP will automatically end August 31, 2005. Participation in the 2005-2006 eCP will be expedited for eligible participants of the 2004-2005 eCP.

Failure to comply with all eCP Terms of Participation and the final eCP Participation Contract, or failure to submit all requested information requested as part of the pilot in the format and by the dates and times specified by TEA may result in termination of participation; the necessity to relinquish, through a “settle-up” process, funds already paid; and the loss of eligibility status for participation in the 2005-2006 eCP,” as determined by the Commissioner of Education.

DEFINITIONS:

Attendance: A student is considered to be in attendance in an eCP course for the day based on verification of their participation in the day’s instructional activities and coursework.

Course:

Grades 3-6: The program of instruction covering a specific school subject typically taught by a teacher over the course of a full school year, conforming to the provisions of 19 Texas Administrative Code (TAC), Chapter 74, Curriculum Requirements and aligned with the state curriculum framework, the Texas Essential Knowledge and Skills (TEKS) for which each student must, per Texas Education Code (TEC), Section 28.021, demonstrate academic achievement or proficiency of the subject matter of the course or grade level in order to be promoted to the next grade level.

Grades 7-12: The program of instruction covering a specific middle or high school subject typically taught by a teacher based on the equivalent of 90 days of instruction, conforming to the provisions of 19 TAC, Chapter 74, Curriculum Requirements and aligned with the state curriculum framework, the TEKS, for which each student can, per the TEC, earn one-half credit toward graduation. (E.g. Health; English IA (first half of one credit course); Geometry B (second half of one credit course); Economics; etc.).

Grades 3-12, as applicable: Only courses included in the list of State Board of Education (SBOE)-approved courses that meet: the provisions for courses in 19 TAC, Chapter 74, Curriculum Requirements; Senate Bill 815 to support student attainment of course and grade level standards; the TEKS found in TAC Chapters 110 – 128; and the specific provisions of the eCP Terms of Participation are eligible for inclusion in the eCP.

Course Completion: Grades 3-12 students must take a comprehensive course completion exam which meets, and is administered under, the requirements of the eCP Terms of Participation. Assessment instruments meeting eCP requirements include:

a. End of Course exam authorized by TEA in Algebra I;

b. College Board Advanced Placement (AP) or International Baccalaureate (IB) examinations, if applicable; and

c. Credit by Examination administered by Texas Tech University or the University of Texas, as already approved by TEA.

Grades 3-8: For subject areas or courses that do not earn credit toward graduation and for which a Credit by Examination (O.2.c.) is not available, alternative assessments may be used for course completion. eCP participants must, prior to entering into the eCP, supply reliability and validity data that can support the use of the proposed assessment instrument and verify how the proposed alternative assessment instrument is at least of equal rigor to the course completion exam instrument used in the regular program; meets or exceeds the TEKS expectations for the content area; and is sufficient to ensure that the student, per the TEC, has demonstrated academic achievement or proficiency of the subject matter of the course or grade level in order to be promoted to the next grade level. The assessments may be given throughout the year as appropriate for students in these grade levels under secure conditions as approved by TEA in the final eCP Participation Contract.

For courses that earn credit toward graduation, alternative assessments may not be used. Only course completion assessment instruments in O.2.a, b, or c may be used and exam administration must meet specifications in O.1.

Prior to administration of all course completion exams, the school must document that the student has demonstrated successful progress in and mastery of the course content sufficient to warrant the appropriateness of administration of the comprehensive course completion examination. Required documentation shall include, but is not limited to, evidence of the student’s participation in instructional activities, completion of subject area coursework and achievement as demonstrated through frequent progress monitoring and ongoing assessments and verified by the eCP participant. These records must be available to TEA in an electronic format.

Course Completion Exam: The applicable comprehensive course completion assessment which meets the requirements of the eCP Terms of Participation outlined in Section O.

Electronic Course: Electronic course means an educational program or course that: includes use of the Internet or other electronic media; and in which a student and teacher are in different locations for a majority of the student’s instructional period.

Most lessons or instructional activities for Grades 7-12 (approximately 80%) must take place in an online environment, including the regular interaction between student and teacher (via e-mail, chat rooms or similar communications), monitoring of student activity, and assessment of student performance with the exception of proctored exams. Grades 3-6 must include instructional activities that take place on a regular basis in an online environment, are appropriate to the age and grade level of the student, and include daily interaction with a highly qualified teacher. Occasional face-to-face communications are also necessary at the beginning of a course to ensure all students have a solid understanding of the necessary technology and the course requirements and at the administration of the course completion exam. Additional face-to-face communications may also be necessary throughout the course, depending on course content, student progress and the need for exam security. An electronic course should be based on interaction with a teacher via email or other online communication. “Canned” courses and courses that lack the opportunity for the student to interact on an ongoing basis with a highly qualified teacher may be used in a supplemental manner only.

Enrollment: A student is considered to be enrolled when they begin actually receiving and actively engaging in instructional activities, as opposed to being registered prior to receiving instruction.

Individual Student’s Instructional Calendar: The calendar based on the equivalent of 180 days of instruction defining days of instruction, assessments, holidays, semester breaks, etc. for one individual student. An individual instructional calendar is required for each student.

For Grades 9-12 students lacking fewer credits toward graduation than are traditionally completed in an instructional year, the individual student calendar may be based on the equivalent of 90 days of instruction.

Instructional (or School Year) Calendar: The calendar based on the equivalent of 180 days of instruction defining days of instruction, assessments, holidays, semester breaks, etc., used by the pilot participant site for its eCP program or campus.

Student Participation: A student is considered to be participating in an eCP course based on verification of their active engagement in instructional activities and coursework as described in the instructional plan and course expectations in the final eCP Participation Contract, sufficient to meet the criteria defining participation in the funding model included in the final eCP Participation Contract.

Proposed

2004-2005 Electronic Course Pilot

Terms of Participation

A. Eligibility Criteria for Participation in the eCP

|A. |Any Texas public school district and open-enrollment charter school that meet the following criteria; provide information |

| |as requested in the eCP Application per the rules of submission and by the deadline; and agree to the following Terms of |

| |Participation are eligible for consideration for participation in the eCP; |

|A.1. |The number of districts and charter schools that may participate in the eCP shall be determined by the Commissioner of |

| |Education; |

|A.2. |A fee of $150 per student with a minimum of $3,000 from each district and charter school selected for participation in the |

| |2004-2005 eCP, will be due to the Texas Education Agency (TEA) upon final signature of the eCP Participation Contract and |

| |may be paid quarterly. The first payment shall be paid at the time of final signature of the eCP Participation Contract. |

|A.3. |To the extent possible, the Commissioner will permit the participation of rural and urban districts with a higher than |

| |average: |

|A.3.a. |Number of at risk students as determined by the Commissioner; |

|A.3.b. |Dropout rate, or; |

|A.3.c. |Population of underserved gifted and talented students, as determined by the Commissioner; |

|A.4. |A district or charter school eligible to apply to participate in the eCP must: |

|A.4.a. |Have completed the planning and preparations necessary to, upon acceptance into this pilot program, implement an electronic|

| |course program that conforms to the eCP Terms of Participation and final eCP Participation Contract and allows for the |

| |start and completion of courses during the 2004-2005 eCP ending August 31, 2005; |

|A.4.b. |Submit all attached schedules and required documents in both print format and in electronic format (email or disc) no later|

| |than 5:00 p.m. (date to be determined) and according to the specifications set forth in the eCP Application; |

|A.4.c. |Be in good standing with other programs, grants, and pilot projects through the TEA; (Districts and open enrollment charter|

| |school are eligible to participate in programs through TEA in addition to the eCP. All rules for the eCP as well as rules |

| |of any other program would be applicable). |

B. General Participation Requirements for Successful Applicants Selected for Participation in the eCP

|B. |Districts and open-enrollment charter schools that are accepted into the eCP must: |

|B.1. |Ensure that the availability of electronic courses is communicated to all eligible students. Students cannot be denied |

| |participation based on ability, language, disability, socio-economic status, access to or familiarity with technology |

| |required for the completion of the courses; |

|B.2. |Demonstrate readiness to participate in the eCP by publishing on the district’s or charter school’s Internet web site no |

| |later than (date to be determined) all information contained in APPLICATION B: INFORMED CHOICE in a format specified by |

| |the TEA; |

|B.3. |Verify the identity and eligibility of each student taking an electronic course. (To be eligible, a student must reside |

| |in Texas and be enrolled in Grades 3-12 in a Texas public school district or open-enrollment charter school participating|

| |in the eCP. Students must reside within the school district boundaries or the existing boundaries of the charter school |

| |geographic service area in which they are enrolled unless there is a written agreement between the eCP participant and |

| |the student’s home district (district of residence). A student is not eligible to participate in the eCP if they already |

| |earn full state funding based on attendance in a traditional setting; are a private school student; are enrolled in more |

| |than one school district or charter school, or participate in dual enrollment with a college or university.); |

|B.4. | School districts and open-enrollment charters may include in the eCP only those Grades 3-12 Texas public school students|

| |who are enrolled in their school; reside within their school district boundaries or the existing boundaries of the |

| |charter school geographic service area; and whom they are already authorized to serve consistent with state law, existing|

| |boundaries of their geographic service area, and the eCP Terms of Participation, unless there is a written agreement with|

| |the student’s home district (district of residence); |

|B.5. |No program may enroll more than 5% of the student population of any individual district. Students enrolled in the eCP |

| |program at a charter school will be counted toward the school’s enrollment cap. Charter schools may not exceed or |

| |increase their enrollment cap or geographic service area to serve more students than they are already authorized to serve|

| |according to their existing charter limitations; |

|B.6. |The Commissioner may further specify the number of students allowed to participate in the eCP; |

|B.7. |Ensure that students who are enrolled in a public school district or an open-enrollment charter other than their home |

| |district (district of residence), per a written agreement, are entered into STS as a transfer student. Such transfer |

| |agreements apply only to students in the eCP program and may not be used for the purposes of enrolling students in the |

| |regular educational program; |

|B.8. |Notify students in writing of their acceptance to participate in the eCP after the student’s application and student |

| |file have been received and reviewed by appropriate campus staff; |

|B.9. |Provide frequent, ongoing monitoring to ensure and verify that each student is participating in the instructional program|

| |as stated in the instructional plan and course expectations in the eCP Participation Contract and that the student is |

| |making satisfactory progress in their coursework, equivalent to the performance standards held for students who attend |

| |the regular program; |

|B.10. |In addition to PEIMS data for all students participating in the eCP, provide to the TEA, in an electronic format, data |

| |including but not limited to the following: |

|B.10.a. |Individual Instructional Calendar for each student; |

|B.10.b. |Student’s Add/ Drop course information; |

|B.10.c. |Verification of ongoing student attendance in the course, as documented by the student’s participation in instructional |

| |activities and coursework, interaction with the teacher and other students, etc.); |

|B.10.d. |Verification of ongoing student progress and performance in each course, as documented by examples of student coursework |

| |that illustrate student’s understanding of course content; results of ongoing assessments, etc.; |

|B.10.e. |Student completion rates; |

|B.10.f. |Verification of successful course completion; |

|B.10.g. |Verification of eligibility for promotion to the next grade; |

|B.10.h. |A contingency plan for the continuation of instructional services to each eCP student sufficient to allow them to |

| |complete their eCP course(s) and earn credit, in the event that the contract or agreement through which an eCP course is |

| |provided is terminated, or an eCP course is no longer available to the student; |

|B.10.i. |Other data as required elsewhere in the Terms of Participation, eCP Participation Contract and in the Informed Choice |

| |report; and |

|B.10.j. |Other data as requested by the TEA as the eCP progresses; |

|B.11. |Administer as required by state law and according to the standard administration schedule the Texas Assessment of |

| |Knowledge and Skills (TAKS) and follow all rules associated with the Student Success Initiative (SSI) Grade Advancement |

| |Requirements; the State Developed Alternative Assessment (SDAA II); the Reading Proficiency Tests in English (RPTE); or |

| |the Texas Assessment of Academic Skills (TAAS); and Advanced Placement/International Baccalaureate (AP/IB) examination |

| |(if applicable); |

|B.12. |Administer ongoing assessments and document student’s performance on each assessment; |

|B.13. |Provide descriptions, passing standards, and scoring procedures for ongoing assessments used to verify student’s progress|

| |through content of course; |

|B.14. |Administer to all students in Grades 3-12 upon course completion, a proctored, face-to-face examination in a central |

| |location, under the control of the eCP district’s or charter school’s employee and under the same standards as required |

| |for TAKS/TAAS using an eCP-approved course completion assessment instrument meeting the specifications in Section O. of |

| |the Terms of Participation. ECP participants are not eligible to receive funding if they do not comply with this |

| |provision; |

|B.15. |Provide all course completion exam administration dates and results for each student at the end of the 2004-2005 eCP; |

|B.16. |Allow access to proctored test administrations by any personnel or agent of the Agency, or the eCP evaluator; |

|B.17. |Submit all course completion exam administration dates and results for each student to TEA at the end of the 2004-05 |

| |school year; |

|B.18. |Ensure the ongoing security of all data and ensure that all data is accessible in an electronic format to TEA, in |

| |accordance with the Terms of Participation; |

|B.19. |Participate in focus groups held at the TEA; |

|B.20. |End participation in the 2004-05 eCP no later than August 31, 2005. |

C. Additional General Participation Requirements for Open-Enrollment Charter Schools

|C. |In addition to the General Requirements for Participation listed in Section B, open-enrollment charter schools that are |

| |accepted into the eCP must: |

|C.1. |Continue the current education programs and activities at their existing physical location; |

|C.2. |Operate in compliance with their charter and applicable laws, regulations, and rules; |

|C.3. |Count students enrolled in the eCP program toward the school’s enrollment cap; |

|C.4. |Not exceed or increase their enrollment cap to serve more students than they are already authorized to serve according to |

| |their existing enrollment limitations. The Commissioner of Education may further limit the number of students allowed to |

| |participate in the eCP, as necessary; |

|C.5. |Include in the eCP only those students they are already authorized to serve according to the existing boundaries of their |

| |geographic service area. The Commissioner of Education may further limit the number of students allowed to participate in |

| |the eCP, as necessary; |

|C.6. |Comply with the nondiscrimination provisions set out in their charters. |

D. Waivers and Charter Amendments

|D.1. |All eCP participants shall follow the standard waiver procedures related to participation in the eCP; |

|D.2. |All eCP participants must request a waiver from the two-hour and four-hour attendance rules, for purposes of the eCP; |

|D.3. |Participating open-enrollment charter schools must submit, along with their eCP Application for Participation, amendments |

| |to their educational program to include electronic courses. (However, if the educational program of a selected |

| |open-enrollment charter school includes distance learning as part of its charter, the school does not have to submit an |

| |amendment for this purpose upon selection for participation in this pilot) All other requested educational program |

| |amendments must be submitted along with the eCP application and the desired changes must be specified in the eCP |

| |Application; |

|D.4. |The Commissioner of Education will consider amendments for participating open-enrollment charter schools to increase the |

| |maximum enrollment or add to their geographic service area to serve students participating in the eCP. Without amendment |

| |approval from the Commissioner, open-enrollment charter schools participating in the eCP may not exceed or increase their |

| |enrollment cap or geographic service area to serve more students than they are already authorized to serve according to |

| |their existing charter limitations. |

|D.5. |Waivers and charter amendments will be limited to the period of time during which the district or charter school is |

| |participating in the 2004-2005 eCP ending August 31, 2005; |

|D.6. |Waivers and charter amendments must clearly indicate that the request is for participation in the 2004-2005 eCP. |

E. Course Eligibility Requirements

|E.1. |Most lessons or instructional activities for Grades 7-12 (approximately 80%) must take place in an online environment, |

| |including the regular interaction between student and teacher (via e-mail, chat rooms or similar communications), |

| |monitoring of student activity, and assessment of student performance with the exception of proctored exams. Grades 3-6 |

| |must include instructional activities that take place on a regular basis in an online environment, are appropriate to the |

| |age and grade level of the student, and include daily interaction with a highly qualified teacher. Occasional face-to-face |

| |communications are also necessary at the beginning of a course to ensure all students have a solid understanding of the |

| |necessary technology and the course requirements and at the administration of the course completion exam. Additional |

| |face-to-face communications may also be necessary throughout the course, depending on course content, student progress and |

| |the need for exam security. An electronic course should be based on interaction with a teacher via email or other online |

| |communication. “Canned” courses and courses that lack the opportunity for the student to interact on an ongoing basis with|

| |a highly qualified teacher may be used in a supplemental manner only. |

|E.2. |Only courses that meet the following requirements are eligible for inclusion in the eCP and for funding for students |

| |through the eCP: |

|E.2.a. |Are included in the list of SBOE-approved courses; |

|E.2.b. |Meet the provisions for courses in 19 TAC, Chapter 74, Curriculum Requirements; |

|E.2.c. |Meet the TEKS found in TAC Chapters 110 – 128; Senate Bill 815; and |

|E.2.d. |Comply with the specific provisions of the eCP Terms of Participation; |

|E.3. |For each course offered through the eCP, a comprehensive online syllabus must be published on the participant’s web site by|

| |(date to be determined) and containing the following, at a minimum: (See Quality of Service Guidelines for Online Courses, |

| |Section__ of the eCP Application) |

|E.3.a. |Course requirements and structure; |

|E.3.b. |Time requirements; |

|E.3.c. |Prerequisite requirements; |

|E.3.d. |Resource Requirements; |

|E.3.e. |Contact information (teacher, technical, and academic support); |

|E.3.f. |Course policies and procedures; |

|E.3.g. |Learning goals and objectives; |

|E.3.h. |Testing and grading policies; and |

|E.3.i. |Scope and Sequence. |

F. Teacher Requirements

|F.1. |Courses offered through the eCP must be taught by a teacher who is: |

|F.1.a |Certified in the content area of the course or in the grade level, in accordance with law; |

|F.1.b. |Is in compliance with highly qualified teacher requirements under No Child Left Behind (NCLB), in accordance with law. |

G. Student Eligibility Requirements

|G.1. |To participate in the eCP, a student must: |

|G.1.a. |Reside in Texas; |

|G.1.b. |Be enrolled in Grades 3-12 in a Texas public school district or open-enrollment charter school participating in the eCP; |

| |and |

|G.1.c. |Reside within the school district boundaries or the existing boundaries of the charter school geographic service area in |

| |which they are enrolled, unless there is a written agreement between the eCP participant and the student’s home district |

| |(district of residence); |

|G.2. |To participate in the eCP, a student must not: |

|G.2.a. |Already earn full state funding based on attendance in a traditional setting; |

|G.2.b. |Be a private school student; |

|G.2.c. |Be enrolled in more than one school district or charter school; or |

|G.2.d. |Participate in dual enrollment with a college or university; |

|G.3. |Students may participate in a combination of regular program and eCP classes if the school district or charter school the |

| |student is enrolled in is the same school district or charter school that is participating in the eCP program; |

|G.4. |Grades 3-8 students must be enrolled full time. |

H. Student and Parent/Legal Guardian Requirements

|H. |Students and parents/legal guardians of student participating in the eCP may: |

|H.1. |Be loaned equipment for the duration of the eCP but may not be given ownership of any equipment and may be reimbursed for |

| |the Internet connectivity for the duration of their participation in the 2004-2005 eCP; |

|H.2. |Not receive payment for electronic courses, payment for services, payment for materials, or payment of any kind for |

| |participation in the eCP, other than reimbursement for Internet connectivity for the duration of their participation in the|

| |2004-2005 eCP. |

I. General Funding Considerations

|I. |Program compliance. All educational entities participating in the eCP must: |

|I.1.a. |Comply with all applicable Commissioner’s rules and State Board of Education rules; |

|I.1.b. |Comply with the requirements set forth in the Student Attendance Accounting Handbook; |

|I.1.c. |Request a waiver from the two-hour and four-hour attendance rules; |

|1.1.d. |Administer to all students in Grades 3-12 upon course completion, a proctored, face-to-face course completion examination |

| |in a central location, under the control of the eCP district’s or charter school’s employee and under the same standards as|

| |required for TAKS/TAAS using an eCP-approved course completion assessment instrument meeting the specifications in Section |

| |O. of the Terms of Participation. ECP participants are not eligible to receive funding if they do not comply with this |

| |provision; |

|I.1.e. |Comply with the Terms of Participation and final eCP Participation Contract negotiated with each participating school |

| |district and charter school; |

|I.1.f. |Provide additional information related to the eCP program as requested by TEA; |

|I.1.g. |Maintain thorough and adequate documentation of program delivery as proposed in the final eCP Participation Contract and |

| |make this documentation available to TEA in an electronic format; |

|I.1.h. |Ensure the ongoing security of all data and ensure that all data is accessible, in an electronic format, to TEA in |

| |accordance with the Terms of Participation; |

|I.1.i . |Restrict participation in the eCP program as provided by the final eCP Participation Contract. |

|I.2. |Funding. Students who participate in the eCP will be included, according to the final eCP Participation Contract, in the |

| |calculation of average daily attendance (ADA), which will be used to calculate the amount of Foundation School Program |

| |(FSP) funds for which participating school districts and charter schools are eligible; |

|I.2.a. |The number of students eligible for funding through the eCP will be estimated in the final eCP Contract negotiated with |

| |each participating school district and charter school; |

|I.2.b. |These funding estimates will be subject to a “settle-up” process described below; |

|I.3. |Payments. Funding for students participating in the eCP program will be included in the regularly scheduled FSP payments |

| |to the district or charter school; |

|I.3.a. |All state aid payments related to the eCP will only be paid to the participating school districts and charter schools where|

| |the student is enrolled; |

|I.4. |Tuition and fees prohibited. eCP participants or their contractors may not charge tuition for the online courses delivered |

| |to students for whom they receive state aid through the eCP. eCP participants or their contractors may not charge fees for |

| |any purpose related in any way to the eCP, except as authorized in 11.158 of the TEC; |

|I.5. |Only those students that meet all student eligibility requirements may participate in the eCP. (See Student Eligibility |

| |Requirements, Terms of Participation, Section G.) To be considered eligible to earn FSP funding through the eCP, a student|

| |must: |

|I.5.a. |Reside in Texas; |

|I.5.b. |Be enrolled in Grades 3-12 in a Texas public school district or open-enrollment charter school participating in the eCP; |

| |and |

|I.5.c. |Reside within the school district boundaries or the existing boundaries of the charter school geographic service area in |

| |which they are enrolled, unless there is a written agreement between the eCP participant and the student’s home district |

| |(district of residence). Students who are enrolled in an eCP participating site other than their home district (district of|

| |residence) per agreement between districts, must be entered into STS as a transfer student. Such transfer agreements apply |

| |only to students in the eCP program and may not be used for the purposes of enrolling students in the regular educational |

| |program. |

|I.5.d. |Students may participate in a combination of regular program and eCP courses if the school district or charter school the |

| |student is enrolled in is the same school district or charter school that is participating in the eCP program; |

|I.5.e. |To be considered eligible to earn FSP funding through the eCP, students must not: |

|I.5.f. |Already earn full state funding based on attendance in a traditional setting; |

|I.5.g. |Be a private school student; |

|I.5.h. |Be enrolled in more than one school district or charter school; or |

|I.5.i. |Participate in dual enrollment with a college or university. |

|I.6. |Eligible courses: In order to qualify for funding, the courses offered by the eCP participant must meet all Course |

| |Eligibility Requirements (See Course Eligibility Requirements, Terms of Participation, Section E.). |

|I.7. |Eligible services: Instructional services may not vary from the description of the program in the final eCP Participation |

| |Contract. If changes are made from the description of the program, TEA must be notified and requested changes must be |

| |approved in order to remain eligible for funding. In addition, charter schools desiring to change their educational program|

| |will require a charter amendment. |

|I.8. |Funding rates: Students who participate in the eCP program will earn FSP funding based on attendance at a rate equivalent |

| |to that earned by students in the regular program. For funding purposes, attendance will be determined by the instructional|

| |calendar and the funding methods in the final eCP Participation Contract. Each funding method must include a detailed, |

| |observable and measurable method describing how the eCP participant will monitor and verify a student’s participation and |

| |progress in a course in accordance with the stated instructional plan and course expectations; and a detailed, observable |

| |and measurable method for how the eCP participant will translate (equate) a student’s participation in and progression |

| |through the eCP course to the state’s current system of calculating ADA earned by students in the regular program or |

| |program to which the student is entitled to funds under the Education Code (e.g. special education, bilingual, etc.). This |

| |equated funding method will serve as the student’s attendance for purposes of calculating FSP funding for participation in |

| |an eCP course. |

|I.8.a. |In order to earn full-time FSP funding, students in Grades 7-12 are expected to participate in the equivalent of at least |

| |ten (10) half-credit courses during the instructional year, such that the student would be eligible to earn a minimum of |

| |five (5) credits during the instructional year; and students in Grades 3-6 are expected to participate in the equivalent of|

| |at least six (6) one-year courses during the instructional year such that the student could be able to demonstrate academic|

| |achievement or proficiency of the subject matter of the course or grade level in order to be promoted to the next grade |

| |level; |

|I.8.b. |In order to earn half-time funding, Grades 9-12 students are expected to participate in the equivalent of at least five (5)|

| |half-credit courses during the instructional year, such that the student would be eligible to earn a minimum of 2.5 credits|

| |during the instructional year. |

|I.8.c. |Maximum funding available: |

|I.8.d. |Students who earn full-time funding through their attendance in the district’s or charter school’s regular program are not |

| |eligible to participate in the eCP and will NOT earn additional funding through their participation in the eCP program; |

|I.8.e. |Students who participate in more than the equivalent of ten half-credit courses for Grades 7-12 or six one-year courses for|

| |Grades 3-6, regardless of instructional setting, (through their participation in the district’s or charter school’s regular|

| |program in combination with their participation in the eCP program or through participation in the eCP program only), will |

| |NOT earn more than the equivalent earned by one full-time student in average daily attendance; |

|I.8.f. |Under NO circumstance will students be eligible to earn the equivalent of more than one full ADA; |

|I.8.g. |Maximum funding for students in Grades 9-12 who participate in fewer than five half-credit courses during the instructional|

| |year will be determined by the program design and funding methods approved by TEA and agreed upon in the final eCP |

| |Participation Contract for each participating school. |

|I.9. |Audit and evaluation: School districts and charter schools that participate in the eCP will undergo a thorough audit and |

| |evaluation of the eCP program at the close of the school year. Documentation of student enrollment and participation will |

| |be audited at that time. The audit will be used to confirm the reported attendance of students participating in the eCP |

| |program based on the final eCP Participation Contract agreed upon for each participating school. |

|I.10. |Settle up: After the close of the school year, districts and charter schools that participate in the eCP program will be |

| |required to provide information to the State Funding Division at TEA in order to facilitate a “settle-up” process. This |

| |information will be used to determine whether the students participating in the eCP program earned the full funding for |

| |which the district was paid during the school year. If a district or charter school was overpaid for student participation|

| |in the eCP program, the amount of the overpayment will be withheld from the next regularly scheduled payment of state aid |

| |funds to the district or charter school. If a district or charter school has been underpaid for student participation in |

| |the eCP program, the additional state aid earned will be added to the next regularly scheduled payment of state aid funds |

| |to the district or charter school. |

|Funding Models |

|I.11. |General: As part of their eCP Application, all eCP applicants must submit detailed program descriptions including, but not|

| |limited to, descriptions of: |

| |The instructional plan and course expectations for each eCP course; |

| |One or more proposed funding models with detailed, observable and measurable method(s) describing how the eCP participant |

| |will monitor and verify a student’s participation and real progress in a course in accordance with the stated instructional|

| |plan and course expectations; and detailed, observable and measurable method(s) for how the eCP participant will equate |

| |student participation in and progression through the eCP course to the state’s current system of calculating ADA earned by |

| |student attendance in the regular program; |

| |How the eCP participant will ensure that students are making satisfactory progress in their coursework; and |

| |How they will ensure that students who participate in the eCP program are held to equivalent performance standards as those|

| |students who attend the regular program. |

|I.12. |Satisfactory progress: eCP participants must establish criteria for making satisfactory progress that are equivalent to |

| |those in place for students in the regular program. The program description must address, in detail, how the eCP |

| |participants will: |

|I.12.a. |Monitor students who enroll in the eCP program to ensure that they are making satisfactory progress through the curriculum.|

| |For example, eCP participants may propose to conduct periodic reviews of student work products, to require regular contact |

| |between teachers and students, to administer periodic assessments, and other progress monitoring activities; |

|I.12.b. |Schedule monitoring activities. The schedule should reflect frequent, on-going monitoring activities; and |

|I.12.c. |Maintain records that document these monitoring activities and make them available to TEA in an electronic format. |

|I.13. |Performance standards: eCP participants must establish criteria for grading and awarding credit that are equivalent to |

| |those in place for students in the regular program. The program description must address how the eCP participants will: |

|I.13.a. |Maintain academic performance standards that are equivalent to those in place for students in the regular program, |

| |including passing standards and scoring procedures for coursework and assessments; |

|I.13.b. |Establish criteria to be used for grading and awarding credit for coursework undertaken by students in the eCP program; and|

|I.13.c. |Maintain records that document these performance standards and make them available to TEA in an electronic format. |

|I.14. |Attendance accounting: eCP participants must propose one or more methods by which student participation in the program is |

| |translated into attendance. The instructional calendar is assumed to be the basis of determining student attendance in the |

| |eCP program, unless an alternate method proposed in the eCP Application is approved by TEA. Attendance for students who |

| |enroll as full- or half-time eCP students will be calculated according to their enrollment dates (see the section on |

| |Student Participation below). Grades 3-8 students must be enrolled full time. |

|I.14.a. |Instructional Calendar. eCP participants will be required to adopt an instructional calendar for the eCP program to be used|

| |as the basis for attendance accounting. eCP participants may use multiple tracks for students who participate in the eCP |

| |program. The instructional calendar adopted should be used as the basis for determining student attendance. eCP |

| |participants may propose an alternate means of tracking attendance other than the instructional calendar, subject to |

| |negotiation and approval by TEA. The alternate means of tracking attendance must be explicitly described in the eCP |

| |Application and the final eCP Participation Contract. |

|I.14.b. |Enrollment: A student is considered to be enrolled when they begin receiving instruction and actively engaging in |

| |instructional activities, as opposed to being registered prior to receiving instruction. |

|I.14.c. |Full-time funding. For full-time funding, the student in Grades 7-12 must participate in no fewer than the equivalent of |

| |five (5) half-credit courses each semester and the equivalent of ten (10) half-credit courses during the school year; and |

| |the student in Grades 3-6 must participate in the equivalent of six (6) one-year courses during the instructional year; |

|I.14.d. |The eCP participant must propose a method for how they will ensure that Grades 7-12 students who do not enroll and |

| |participate concurrently in at least five (5) half-credit courses each semester will make satisfactory progress through all|

| |five of the courses within the time period defined as a semester for the purposes of the eCP program; |

|I.14.e. |The eCP participant must propose a method of prorating the funding for a student who initially intends to participate in |

| |the eCP full-time, but whose actual participation does not meet the requirements of full-time program participation; and |

|I.14.f. |The proposal must include a description of the records that will be maintained in order to document student attendance |

| |using this method. |

|I.14.g. |Half-time funding. For half-time funding, the Grades 9-12 student must participate in the equivalent of at least two (2) |

| |half-credit courses each semester and the equivalent of no fewer than five (5) half-credit courses during the school year; |

|I.14.h. |The eCP participant must propose a method to ensure that Grades 9-12 students who do not enroll and participate in at |

| |least this minimum number of courses concurrently, will make satisfactory progress through all of the courses within the |

| |time period defined as a semester for purposes of the eCP program; |

|I.14.i. |The eCP participant must also propose a method of prorating the funding for a Grades 9-12 student who initially intends to |

| |participate in the eCP half-time, but whose participation does not meet the requirements of half-time program |

| |participation; and |

|I.14.j. |The proposal must include a description of the records that will be maintained in order to document student attendance |

| |using this method. |

|I.14.k. |Per course funding. For students in Grades 9-12 who enroll and participate in fewer than the equivalent of five (5) |

| |half-credit courses per school year, the eCP participant must: |

|I.14.l. |Propose a funding model that delivers incremental funding on a per course basis; |

|I.14.m. |Propose a method of prorating funding for Grades 9-12 students who enroll and participate in but do not complete courses |

| |that are delivered by the eCP program; and |

|I.14.n. |The proposal must include a description of the records that will be maintained in order to document student attendance |

| |using this method. |

|I.15. |Student participation: In all proposed funding methods, eCP participants must propose criteria for student participation |

| |in the instructional program in a way that clearly defines student participation for funding purposes. The proposal must |

| |clearly address how and when a student who has stopped participating in the instructional program will be considered |

| |withdrawn from participation in an eCP course and/or withdrawn from eCP program enrollment. eCP participants must maintain|

| |documentation that clearly indicates dates of enrollment and withdrawal for audit purposes; |

|I.15.a. |Student Enrollment: student is enrolled in the eCP program, is actively engaged in instructional activities, and is |

| |eligible for funding purposes; |

|I.15.b. |Student Withdrawal: student is no longer enrolled in the eCP program or is no longer actively engaged in instruction and is|

| |not eligible for funding purposes. |

|I.16. |Funding eligibility: Students are eligible to earn funding through eCP participation beginning on the date that the |

| |following criteria are met for the delivery of instruction as follows: |

|I.16.a. |Students are notified in writing of their eligibility to participate in the project; |

|I.16.b. |All required equipment has been installed at the physical location where documented students are to receive instructional |

| |services through the eCP and is operational; |

|I.16.c. |Delivery of instructional services has been initiated by the student’s documented use of the instructional materials |

| |supported by equipment used to deliver the electronic course curriculum; |

|I.16.d. |Students are no longer eligible for funding purposes on the date immediately following the last date that student |

| |participated in eCP instructional activities, coursework and/or administration of examinations, as evidenced by the |

| |electronic records on file in the administrative offices of the eCP participant which must be available for review during |

| |the year-end audit process as well as retained and accessible to TEA in an electronic format, as required in the eCP Terms|

| |of Participation; |

|I.16.e. |Unless otherwise approved by TEA during the negotiation process, students must be continuously enrolled in the |

| |instructional program for the entire instructional calendar in order to earn full-time funding. Students will earn |

| |attendance only while they are considered to be enrolled and actively engaged in instructional activities. If a student |

| |completes the requirements for full-time funding in a time period that is less than the full instructional year, the |

| |student must enroll in additional coursework through the remainder of the instructional calendar in order to earn full-time|

| |funding. If a student completes the coursework for full-time funding, but does not remain actively engaged in |

| |instructional activities, the funding for that student will be prorated to reflect the number of days that the student was |

| |enrolled and actively engaged in instructional activities, as defined by the final eCP Participation Contract. |

|I.17. |Audit and evaluation: eCP participants must maintain detailed records that support the program of instruction proposed in |

| |the eCP Application and included in the final eCP Participation Contract. These documents will be used to audit and |

| |evaluate the school district’s or charter school’s compliance with the eCP Participation Contract which specifies the terms|

| |and conditions of their participation in the eCP program. eCP program participants may experience funding adjustments, |

| |including the recovery of state funds, if the audit and evaluation process indicates that the eCP participant has not fully|

| |complied with the final eCP Participation Contract. |

J. Centralized Accounting

|J.1. |ECP participants must maintain detailed records that support the program of instruction in their final eCP Participation |

| |Contract and documents the observable, measurable measures included in the approved model to equate eCP student attendance |

| |in and progress in a course with the state’s current system of reporting and monitoring daily attendance. These records |

| |must be made available to TEA in an electronic format; |

|J.2. |Organization, maintenance and retention of all fiscal documentation and documentation of student eCP course attendance, |

| |participation in instructional activities and completion of coursework, as well as documentation of ongoing assessments, |

| |and course completion exams required by the eCP, shall be the accounting responsibility of a centralized unit or office |

| |within the organizational structure of the eCP participant; |

|J.3. |An instructional calendar for the eCP program and an individual student’s instructional calendar for each eCP student are |

| |to be on file in school districts and charter schools. In addition, charter schools must continue to submit an |

| |instructional calendar to the State Funding Division at TEA. These records must be made available to TEA in an electronic |

| |format; |

|J.4. |For local record keeping purposes, the actual dates the student began and left enrollment must be documented in student |

| |data records. |

K. Audit Trail of Student Attendance and Ongoing Progression

|K.1. |Activities involving the daily documentation of each student’s attendance, participation in instructional activities, |

| |coursework, interaction with the teacher and other students, as well as documentation of ongoing assessments and course |

| |completion exams required by the eCP, are to be stored in an electronic format on each student’s personal computer hard |

| |drive and/or the site of the Internet instructional services. This electronic data must also be transferred to the |

| |centralized accounting office of the eCP participant on a regular basis and no less than every 40 instructional days. eCP |

| |participants are responsible for ensuring the ongoing security of all data and for ensuring that all data is accessible, in|

| |an electronic format, to TEA; |

|K.2. |eCP participants, TEA and/or any of their authorized representatives shall have access to this electronic data. eCP |

| |participants are not eligible to receive funding if eCP participants do not comply with this provision; |

|K.3. |eCP participants will be audited to determine whether or not they complied with their eCP Participation Contract and to |

| |determine if students made real, verifiable progress. eCP participants are required to ensure that relevant records, |

| |including attendance and financial records of suppliers, vendors and agents are available for inspection by TEA; |

|K.4. |All participants in the eCP program will be audited and evaluated by TEA based on the terms of the final eCP Participation |

| |Contract, following the close of the instructional year. |

L. Contract Provisions

|L.1. |In addition to the provisions defining a sound and complete procurement contract, eCP participants shall include in all |

| |procurement contracts and subcontracts, provisions or conditions which: |

|L.1.a. |Allow for administrative, contractual or legal remedies in instances where contractors violate or breach contract terms,|

| |and provide for such sanctions and penalties as may be appropriate; |

|L.1.b. |Allow for termination by the eCP participant, including the manner by which it will be affected, and the basis for |

| |settlement; |

|L.1.c. |Describe the conditions under which the contract may be terminated for default as well as conditions where the contract |

| |may be terminated because of circumstances beyond the control of the contractor; |

|L.1.d. |Prohibit individuals associated in any way with a vendor providing an electronic course or other services supporting the|

| |eCP activities to a school district or charter school participating in the eCP from serving on the board of the charter |

| |sponsoring entity, charter school or school district, or from being employed by or receiving compensation from the |

| |district or charter. An eCP participant may use its own staff to provide services or develop instructional programs |

| |that are not purchased from other parties. |

|L.2. |eCP participants shall require contractors to retain any and all books, documents, papers, and records, which are |

| |directly pertinent to that specific contract for a minimum of five years after final payment is made and all other |

| |pending matters are closed; and in accordance with the record retention requirements for federal and state programs as |

| |mandated by the Texas State Library and Archives Commission. |

M. Cost Accounting Records

|M.1. |eCP participants will maintain fiscal accounting records that document all costs attributable to this project. The |

| |participants will implement fiscal accounting records that capture a level of detail comparable with 1.4.12 Optional Codes |

| |in the Financial Accountability System Resource Guide, Update 11.0. Financial records will provide separate accountability |

| |of all costs attributed to this project, in accordance with generally accepted accounting principles and the rules and |

| |guidelines of 1.4.12 Optional Codes in the Resource Guide, Update 11.0.; |

|M.2. |The 1.4.12 Optional Codes in the Resource Guide, Update 11.0 must be used to separately track all costs attributed to this |

| |project, unless the local optional code system used by the applicant will provide at least the equivalent detailed program |

| |accounting costs and is approved by TEA for purposes of participation in the eCP program; |

|M.3. |Shared costs attributed to this project will be supported by cost allocation plans that will also evidence consistent |

| |treatment of the shared costs in all of the local, state and/or federally funded activities of school districts and charter|

| |schools. |

N. Record Retention

|N.1. |eCP participants shall retain all financial and programmatic records, supporting documents, statistical records, and other |

| |records pertinent to program regulations or the eCP Terms of Participation and final eCP Contract for a minimum of five |

| |years from the day the final expenditure report is submitted or until resolution of any audits that started within the |

| |five-year retention period; and in accordance with the record retention requirements for federal and state programs as |

| |mandated by the Texas State Library and Archives Commission |

|N.2. |eCP participants shall require contractors to retain any and all books, documents, papers, and records, which are directly |

| |pertinent to that specific contract for a minimum of five years after final payment is made and all other pending matters |

| |are closed; and in accordance with the record retention requirements for federal and state programs as mandated by the |

| |Texas State Library and Archives Commission. |

O. Student Course Completion Assessment

|O. |Prior to administration of all course completion exams, the school must document that the student has demonstrated |

| |successful progress in and mastery of the course content sufficient to warrant the appropriateness of administration of the|

| |comprehensive course completion examination. Required documentation shall include, but is not limited to, evidence of the |

| |student’s participation in instructional activities, completion of subject area coursework and achievement as demonstrated |

| |through frequent progress monitoring and ongoing assessments and verified by the eCP participant. These records must be |

| |available to TEA in an electronic format. |

|O.1. |Upon course completion, all students in Grades 3-12 shall take a proctored, face-to-face course completion examination in |

| |a central location, under the control of the eCP district’s or charter school’s employee and under the same standards as |

| |required for TAKS/TAAS using an eCP-approved course completion assessment instrument meeting the specifications in this |

| |section (O.); |

|O.2. |The following student assessment instruments are approved as course completion assessment instruments for the eCP for |

| |students in Grades 3-12. Assessment instruments labeled O.2.a, b, or c must be used if available and must be administered |

| |to all students at the completion of each course under the exam administration requirements shown in O.1. eCP participants |

| |are not eligible to receive funding if they do not comply with this provision: |

|O.2.a. |End of Course exam authorized by TEA in Algebra I; |

|O.2.b. |College Board Advanced Placement (AP) or International Baccalaureate (IB) examinations, if applicable; or |

|O.2.c. |Credit by Examination administered by Texas Tech University and the University of Texas, as already approved by TEA; |

|O.3. |Grades 3-8: For subject areas or courses that do not earn credit toward graduation and for which a Credit by Examination |

| |(O.2.c.) is not available, alternative assessments may be used for course completion. eCP participants must, prior to |

| |entering into the eCP, supply reliability and validity data that can support the use of the proposed assessment instrument |

| |and verify how the proposed alternative assessment instrument is at least of equal rigor to the course completion exam |

| |instrument used in the regular program; meets or exceeds the TEKS expectations for the content area; and is sufficient to |

| |ensure that the student, per the TEC, has demonstrated academic achievement or proficiency of the subject matter of the |

| |course or grade level in order to be promoted to the next grade level. The assessments may be given throughout the year as |

| |appropriate for students in these grade levels under secure conditions as approved by TEA in the final eCP Participation |

| |Contract. |

| |For courses that earn credit toward graduation, alternative assessments may not be used. Only course completion assessment |

| |instruments in O.2.a, b, or c may be used and exam administration must meet specifications in O.1. |

|O.4. |All costs associated with the course completion exams are the responsibility of the eCP participant; |

|O.5. |The date and result of each course completion exam administration for each student must be reported to TEA at the end of |

| |the 2004-2005 school year. |

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