1. (a) Student eligibility. School districts and open-enrollment charter schools with one or more campuses not participating in the national school lunch program may derive an eligible student count by an alternative method for the purpose of receiving the compensatory education allotment pursuant to Texas Education Code, §42.152(b).

   1. (1) To be considered educationally disadvantaged in order to be counted for compensatory education funding using the alternative method, a student must meet the income requirements for eligibility under the national school lunch program.
   2. (2) The total number of eligible students is the average of the best six months' count of students in accordance with paragraph (1) of this subsection. For school districts and open-enrollment charter schools in the first year of operation, the count is taken from the current school year. For all others, the count is from the preceding school year.

2. (b) Application and reporting procedures.

   1. (1) The commissioner of education will make available to school districts and open-enrollment charter schools appropriate income eligibility guidelines and application and reporting forms. The number of eligible students in accordance with subsection (a)(1) of this section will be reported on a monthly basis to the Texas Education Agency in a manner and with a deadline specified by the commissioner.
   2. (2) School districts and open-enrollment charter schools must request prior approval from the commissioner to claim students receiving a full-time virtual education through the state virtual school network in their counts of educationally disadvantaged students. The request must include a plan detailing the enhanced services to be delivered to full-time state virtual school network students and submitted in a manner and with a deadline specified by the commissioner.
3. (c) Recordkeeping. School districts and open-enrollment charter schools that receive compensatory education program funding pursuant to this section are responsible for obtaining the appropriate data from families of potentially eligible students, verifying that information, and retaining records.
4. (d) Auditing procedures. The Texas Education Agency will conduct an audit of data submitted by school districts and open-enrollment charter schools that receive compensatory education program funding pursuant to this section approximately every five years or on an alternative schedule adopted at the discretion of the commissioner.

Source Note:The provisions of this §61.1027 adopted to be effective December 2, 2001, 26 TexReg 9619; amended to be effective May 17, 2016, 41 TexReg 3478.