74(R) SB 1 House Committee Report

BILL ANALYSIS

Public Education Committee
C.S.S.B. 1
Ratliff (Sadler)
4-30-95
Committee Report (Substituted)

BACKGROUND

Public Education policy has been substantially revised over
the last ten years in response to ongoing litigation and sweeping
changes in public school accountability and other improvements in
the public education system. The numerous revisions have not only
caused conflicting state policy, but created more bureaucracy.

As a result, Senate Bill 7, 73rd Regular Session, called for
a comprehensive recodification of the Texas Education Code to be
completed by September 1, 1995. This overhaul is an attempt to
clarify and streamline public education policy, making the document
which governs public education more effective and user friendly.

PURPOSE

CSSB 1 provides for a substantive revision of Titles 1 and 2,
Education Code, governing public education. The bill includes
conforming amendments and provides for administrative penalties.

RULEMAKING AUTHORITY

It is the committee's opinion the bill expressly grants rulemaking
authority in SECTION 1 to: the State Board of Education, the
Commissioner of Education, the Texas Education Agency, the
Secretary of State, the General Services Commission, local school
district boards of trustees, local school districts, the Foundation
School Fund Budget Committee, the Legislative Budget Board, the
University Interscholastic League, the Texas Board of Health, the
Texas Department of Health; SECTION 2 to: the Texas Higher
Education Coordinating Board, the Commissioner of Higher Education;
SECTION 3 to: the Texas Higher Education Coordinating Board,
apprenticeship committee for apprentice training programs; SECTION
5 to: the Texas Higher Education Coordinating Board; SECTION 16
to: the Comptroller of Public Accounts.

It is the committee's opinion the bill expressly grants joint
rulemaking authority in SECTION 1 to: the Texas Education Agency,
Texas Department of Mental Health and Mental Retardation and the
Texas Rehabilitation Commission, the Texas Education Agency and the
Texas Department of Human Services, and the Texas Education Agency
and the Texas Department of Commerce.

SECTION BY SECTION ANALYSIS

SECTION 1. TITLES 1 AND 2

TITLE 1. GENERAL PROVISIONS

CHAPTER 1. GENERAL PROVISIONS

Sec. 1.001. APPLICABILITY.

(a) Provides that this code applies to all educational
institutions, unless specifically excluded by this code.

(b) Provides that this code does not apply to those facilities
and institutions under the control and direction of the Texas
Department of Mental Health and Mental Retardation, the Texas
Youth Commission, the Texas Department of Human Services, the
Texas Department of Criminal Justice, or any juvenile
probation agency except as provided by Chapter 19, Chapter
29(A) or Chapter 30(E).

Sec. 1.002. EQUAL EDUCATIONAL SERVICES OR OPPORTUNITIES. Equal
opportunity provision for educational services and activities
within the geographical boundary.

CHAPTERS 2 AND 3

(Reserved for Expansion)

TITLE 2. PUBLIC SCHOOLS

SUBTITLE A. GENERAL PROVISIONS

CHAPTER 4. PUBLIC EDUCATION MISSION, OBJECTIVES, GOALS,
AND INFORMATION

Sec. 4.001. PUBLIC EDUCATION MISSION AND OBJECTIVES.

(a) Provides for a mission statement for public schools.

(b) Provides for objectives for public education.

Sec. 4.002. PUBLIC EDUCATION ACADEMIC GOALS. Provides for
educational goals for students.

Sec. 4.003. PUBLIC EDUCATION INFORMATION.

(a) Provides for the Commissioner to establish an information
management and communications system.

(b) Provides for the cost to be paid from the
telecommunications infrastructure fund.

CHAPTER 5. DEFINITIONS

Sec. 5.001. DEFINITIONS. Defines "agency", "classroom teacher",
"commissioner", "educationally disadvantaged", and "educator".

CHAPTER 6

(Reserved for Expansion)

SUBTITLE B. STATE AND REGIONAL ORGANIZATION AND GOVERNANCE

CHAPTER 7. STATE ORGANIZATION

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 7.001. DEFINITION. Defines the "board" as the State Board of
Education.

Sec. 7.002. TEXAS EDUCATION AGENCY: COMPOSITION AND PURPOSE.

(a) Defines the commissioner of education and the agency staff
as the Texas Education Agency

(b) Specifies that the agency shall carry out the educational
functions delegated under Section 7.021.

Sec. 7.003. LIMITATION ON AUTHORITY. Provides that an educational
function not specifically delegated to the agency under Section
7.021 or the board under Section 7.102 is reserved to and shall be
performed by school districts.

Sec. 7.004. SUNSET PROVISION. Provides that unless continued in
existence under Chapter 325 of the Government Code, the agency is
abolished September 1, 2005.

Sec. 7.005-7.020. (Reserved for expansion).

SUBCHAPTER B. TEXAS EDUCATION AGENCY

Sec. 7.021. TEXAS EDUCATION AGENCY POWERS AND DUTIES.

(a) Defines the educational functions for which the agency is
responsible.

(b) Allows the agency to enter into an agreement with a
federal agency concerning projects related to education.

Sec. 7.022. INTERNAL AUDIT.

(a) Provides for an auditor to coordinate the agency's efforts
to evaluate and improve its internal operations.

(b) Provides for the auditor to review the quality and
effectiveness of the agency's process and shall report the
auditor's findings to the commissioner and board.

Sec. 7.023. AGENCY EMPLOYMENT POLICY. Requires an employment
policy statement shall be made without regard to a person's race,
color, disability, sex, religion, age, or national origin.

Sec. 7.024. INVESTMENT CAPITAL FUND.

(a) Provides that the agency shall administer money
transferred to the fund as provided by Section 42.152 (l) in
order to assist eligible public schools to implement practices
and procedures consistent with deregulation and school
restructuring in order to improve student achievement and to
help schools identify and train parents and community leaders
who will hold the school and the school district accountable
for achieving high standards.

(b) Provides for the commissioner to make grants from the fund
and schools may apply for the grants under rules adopted by
the board.

(d) Provides that the grant from the fund be made directly to
the school and not more than 25% of the grant may be used to
implement strategies.

(e) Provides that the commissioner may make a grant of up to
$50,000 each academic year to an eligible school.

Sec. 7.025-7.050. (Reserved for expansion).

SUBCHAPTER C. COMMISSIONER OF EDUCATION

Sec. 7.051. SELECTION OF THE COMMISSIONER. Provides for the
governor with consent of the senate, to appoint the commissioner of
education.

Sec. 7.052. TERM OF OFFICE. Provides that the commissioner serve
a term of four years.

Sec. 7.053. REMOVAL FROM OFFICE. Provides for the removal of the
commissioner by the governor as provided by Section 9, Article XV,
Texas Constitution.

Sec. 7.054. QUALIFICATION. Requires that the commissioner be a
citizen of the United States.

Sec. 7.055. COMMISSIONER OF EDUCATION POWERS AND DUTIES.

(a) Delineates the powers and duties of the commissioner of
education.

(b) Provides that the budget the commissioner adopts for
operating the Foundation School Program must be in accordance
with legislative appropriations and provide funds for the
administration and operation of the agency and any other
necessary expense.

Sec. 7.056. WAIVERS AND EXEMPTIONS.

(a) Provides that a school campus or district may apply to the
commissioner for a waiver of a requirement, restriction, or
prohibition imposed by this code or rule of the board or
commissioner.

(b) Provides that a school district seeking a waiver must
submit a written application in writing.

(c) Provides that if the commissioner objects to an
application to a waiver, the commissioner must notify the
campus or district in writing.

(d) Provides that a waiver granted under this section is
effective for the period stated in the application which may
not exceed three years.

(e) Delineates a list for which a waiver may not be granted.

(f) Provides a list for which a waiver may not be granted to
a school district or campus that is required to develop and
implement a student achievement improvement plan under section
39.131.

Sec. 7.057. APPEALS.

(a) Provides an appeal process for a person aggrieved by the
school laws of the state or actions or decisions of any school
district board of trustees that violate duly adopted local
policies or the school laws of the state.

(b) Provides that the commissioner , after due notice to the
parties interested, shall hold a hearing and issue a decision
without cost to the parties involved.

(c) Provides that in an appeal against a school district, the
commissioner shall issue a decision based on a reviews of the
record developed at the district level and under a substantial
evidence standard of review.

(d) Provides that a person aggrieved by an action of the
agency or a decision of the commissioner may appeal to a
district court in Travis County.

(e) Provides for sections in which this section does not
apply.

Sec. 7.058-7.100. (Reserved for expansion).

SUBCHAPTER D. STATE BOARD OF EDUCATION

SEC. 7.101 COMPOSITION.

(a) Provides that the State Board of Education is composed of
15 members elected from districts.

(b) Provides that members of the board are elected at biennial
general elections held in compliance with the Election Code.

Sec. 7.102 STATE BOARD OF EDUCATION POWERS AND DUTIES.

(a) Restricts the board to perform those duties relating to
schools districts or regional education service centers
assigned to the board by the constitution of this state or by
this section.

(b) Delineates the powers and duties of the State Board of
Education.

(c) Provides that the board may adopt rules relating to school
districts or regional education service centers only as
required to carry out specific duties assigned to the board by
the constitution or under subsection (b).

(d) Provides that a rule under this section is effective only
if the board includes in the preamble a statement of the
specific authority under Subsection (b) to adopt the rule.

(e) Provides that a rule adopted under this section does not
take effect until the beginning of the school year that begins
at least 90 days after the date on which the rule was adopted.
Specifies exceptions to this rule adoption provision.

(f) Provides that a rule adopted by the board before May 30-,
1995, expires September 1, 1996 unless readopted by the board
after May 30, 1995.

(g) Provides that this section does not confer a power or duty
independently of authorization under another provision.

Sec. 7.103. ELIGIBILITY FOR MEMBERSHIP.

(a) Establishes that a person holding an office with this
state or any political subdivision of this state is not
eligible for election to or service on the board.

(b) Outlines the eligibility requirements for membership on
the board.

(c) Provides that a person who is required to register as a
lobbyist under Chapter 305, Government Code may not serve as
a member of the board or act as general counsel to the board.

Sec. 7.104. TERMS.

(a) Provides that members of the board serve staggered terms
of for years with the terms of eight members expiring on
January 1 of one odd-numbered year and the terms of seven
members expiring on January 1 of the next odd-numbered year.

(b) Provides that seven members of the board shall serve two
year terms and eight members shall serve four year terms
determined by a drawing of lots.

(c) Provides that if a vacancy occurs, the vacancy shall be
filled by appointment of the governor with advice and consent
of the senate.

(d) Provides that if a vacancy occurs at a time when it is
impossible to place the name of a candidate for the unexpired
term on the ballot is filled by appointment.

(e) Provides that an appointment to a vacancy shall be made
without regard to the race, creed, sex, religion, or national
origin of the appointed member.

Sec. 7.105 COMPENSATION AND REIMBURSEMENT.

(a) Provides that a member of the board is not entitled to
compensation.

(b) Provides incidences for which a member may receive
reimbursement for travel.

Sec. 7.106 MEETINGS. Provides that the board shall hold four
meetings per year in Austin, Texas on dates determined by the
chair and may hold other meetings as may be called by the chair.

Sec. 7.107 OFFICERS

(a) Provides that the board shall organize adopt rules of
procedures, and elect by separate votes a chair, vice chair
and secretary.

(b) Provides that a person who serves as chair is ineligible
to again serve as chair until four years have passed.

Sec. 7.108 PROHIBITION ON POLITICAL CONTRIBUTION OR ACTIVITY.

(a) Provides that a person involved in selling bonds or
connected to the textbook business commits an offense if the
person makes or authorizes a political contribution or takes
part in the campaign of any person seeking election to the
board.

(b) Classifies this offense as a Class A misdemeanor.

Sec. 7.109 DESIGNATION AS STATE BOARD FOR CAREER AND TECHNICAL
EDUCATION.

(a) Designates the board as the State Board for Career and
Technical Education.

(b) Designates the commissioner as the executive officer.

(c) Provides for the State Board for Career and Technical
Education to contract with the Texas Higher Education
Coordinating Board or other state agency to assume the
leadership role for technical-vocational education.

(d) Allows the State Board for Career and Technical Education
to allocate funds appropriated by the legislature.

Sec. 7.110 PUBLIC TESTIMONY. Provides that the board shall develop
and implement policies to provide for public testimony.

Sec. 7.111 HIGH SCHOOL EQUIVALENCY.

(a) Establishes that the board shall provide for the
administration of the high school equivalency exam.

(b) Allows that the board, by rule, shall establish and
require payment of a fee as a condition to the issuance of a
high school equivalency certificate and copy of the scores of
the examinations.

CHAPTER 8. REGIONAL EDUCATION SERVICE CENTERS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8.001. ESTABLISHMENT.

(a) Requires the agency to provide for the establishment and
operation of not more than 20 regional education service
centers.

(b) Requires centers to be located throughout the state so
that each school district has the opportunity to be served by
and to participate in an approved center on a voluntary basis.

Sec. 8.002. PURPOSE.

(a) Requires regional education service centers, at the
discretion of the commissioner, to provide services to assist
school districts in improving student performance and
increasing the efficiency and efficiency of school operations.

(b) Provides that in addition to core services a regional
education service center is required to offer, a school
district or campus may purchase any other available service
from any center.

Sec. 8.003. GOVERNANCE.

(a) Provides that each center is governed by a board of
directors. Requires that the board be composed of seven
members.

(b) Requires that the commissioner recommend to the State
Board of Education, for adoption, uniform rules to provide for
the local selection, appointment and continuity of membership
of regional education service center boards of directors

(c) Requires that a vacancy on a regional education service
center board of directors shall be filled by appointment by
the remaining members of the board for the unexpired term.

(d) Provides that members of the board are not entitled to
compensation but is entitled to reimbursement with center
funds for necessary expenses incurred in performing duties as
a board member.

(e) Requires each center board of directors to develop
policies to ensure the sound management and operation of the
center. requires the board of directors to be directly
involved in the planning and evaluation of programs and
activities developed and offered to school districts and
campuses.

Sec. 8.004. EXECUTIVE DIRECTOR. Authorizes the center board of
directors to employ am executive director. Requires that the
selection of the executive director is subject to the approval of
the commissioner. Provides that the executive director is the
chief executive officer of the center. Requires that the executive
director employ personnel as necessary to carry out the functions
of the center.

Sec. 8.005-8.050. (Reserved for expansion).

SUBCHAPTER B. POWERS AND DUTIES

Sec. 8.051. CORE SERVICES. Requires each center to use the funds
distributed under Section 8.121 for developing and maintaining core
services for purchase by school districts and campuses. Sets forth
core services.

Sec. 8.052. ADDITIONAL SERVICES. Authorizes a center to offer any
service requested and purchased by a school district or campus.

Sec. 8.053. PLANNING AND REPORTING. Requires each service center
to prepare a qualitative summary of services and report audited and
financial and performance information. Sets forth requirements for
each center.

Sec. 8.054. PROHIBITION ON REGULATORY FUNCTION. Prohibits a
center from performing a regulatory function. Permits centers to
offer training or other assistance to school districts in complying
with state or federal law, rule or regulation.

Sec. 8.055-8.100. (Reserved for expansion).

SUBCHAPTER C. EVALUATION AND ACCOUNTABILITY

Sec. 8.101. DATA REPORTING. Requires the commissioner to develop
a uniform system for centers to report audited financial and
performance data.

Sec. 8.102. ANNUAL EVALUATION. Requires the commissioner to
conduct an annual evaluation of each executive director and service
center. Sets forth requirements of each evaluation.

Sec. 8.103. SANCTIONS. Requires the commissioner to recommend to
the State Board of education for approval a system of corrective
actions to require of a center that the commissioner determined to
be deficient in an accountability measure. Sets forth provisions
the actions are required to include in order of severity.

SUBCHAPTER D. FUNDING

Sec. 8.121. REVOLVING ACCOUNT.

(a) Requires the commissioner to establish a revolving account
for each regional education service center.

(b) Requires the commissioner to deposit funds in each
center s revolving account.

Sec. 8.122. FUNDING FOR CORE SERVICES.

(a) Requires that the commissioner withhold an amount of funds
from the funds appropriated from the foundation school program
during the biennium ending August 31, 1997.

(b) Requires the commissioner to allocated the funds withheld
in subsection (a) to the revolving account of each center each
year of the biennium in amounts proportionate to the amount of
state funds each regional education service center received
for the 1994-95 state fiscal year.

(c) Requires that each regional education service center use
the money in the revolving account in offering the core
services required under Section 8.051 or in paying

administrative and operational expenses of the center
necessary in offering the core services.

Sec. 8.123. FUNDING FOR GRANTS.

(a) Requires that the commissioner withhold an amount of funds
from the funds appropriated from the foundation school program
during the biennium ending August 31, 1997 for competitive
grants and/or emergency grants.

(b) Requires the commissioner to determine the strategies, or
programs and to which regional education service centers, or
school districts to distribute the funds under this section.

(c) Requires the commissioner deposit in each education
center s revolving account the amount of funds distributed to
the center under this section.

Sec. 8.124. FUNDING FOR OTHER INSTRUCTIONAL SERVICES.

(a) Requires the commissioner to distribute funds appropriated
from the foundation school program or from any other source
for providing school districts instructional services other
than core services.

(b) Requires the commissioner to distribute funds under this
section directly to school districts or to a regional
education service center as provided in the section.

(c) Requires the commissioner to notify each school district
of the amount available for the school district to use to
provide instructional services other than core service.

(d) Requires that if a school district chooses to receive the
funds directly, the commissioner shall distribute 90 percent
of the funds available for the fiscal year to that district.
Requires the district to use that money for providing
instructional services. Sets forth options the district may
use to provide the instructional services. Requires the
commissioner deposit in the revolving account of the regional
education service center for the region in which the district
is located the 10 percent of the funds available for the
fiscal year that is not distributed to the district.

(e) Requires the commissioner to deposit in the revolving
account of the regional education service center for the
region in which the district is located, 100 percent of the
funds available to the district under this section for the
fiscal year. Requires that the center use those funds only in
providing instructional services as prescribed in an agreement
between the district and the center.

Sec. 8.125. CONTRACTS FOR GRANTS. Authorized each center board of
directors, under rules adopted by the State Board of Education, to
enter into a contract for a grants.

CHAPTERS 9 AND 10

(Reserved for Expansion)

SUBTITLE C. LOCAL ORGANIZATION AND GOVERNANCE

CHAPTER 11. SCHOOL DISTRICTS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 11.001. ACCREDITATION. Requires each school district to be
accredited by the Texas Education Agency.

Sec. 11.002-11.010. (Reserved for expansion).

SUBCHAPTER B. INDEPENDENT SCHOOL DISTRICTS

Sec. 11.011. RESPONSIBILITY OF INDEPENDENT SCHOOL DISTRICTS FOR
PUBLIC EDUCATION. Provides that independent school districts have
the primary responsibility for public education and student
performance.

Sec. 11.012. ORGANIZATION. Requires the board of trustees,
superintendent, campus administrators, and district-level and site-based decision-making committees to operate as provided by the
Education Code and by the local board.

Sec. 11.013-11.050. (Reserved for expansion).

SUBCHAPTER C. BOARD OF TRUSTEES OF INDEPENDENT SCHOOL DISTRICT--GENERAL PROVISIONS

Sec. 11.051. GOVERNANCE OF INDEPENDENT SCHOOL DISTRICT; NUMBER OF
TRUSTEES.

(a) Provides that independent school district is governed by
a board of trustees that oversees management of the district.

(b) Provides that a board consists of the number of members
the district had on September 1,1995.

Sec. 11.052. SINGLE-MEMBER TRUSTEE DISTRICTS.

(a) Authorizes board on its own motion to create single-member trustee districts for not fewer than 70 percent of the
board members after holding a hearing for which notice has
been published.

(b) Requires order creating single-member districts to be
entered not later than 120th day before date of first
election of trustees for single-member districts.

(c) Requires board to hold election on creation of single-member districts on the petition of at least 15 percent or
15,000 of the registered voters in the district, whichever is
less.

(d) Governs the manner and time within which the board draws
single-member districts.

(e) Authorizes residents of each single-member district to
elect one trustee. Provides residency requirements for both
at large and single-member district trustees.

(f) Requires board members to draw lots for staggered terms
after first election from single- member districts and after
each redistricting.

(g) Governs the circumstances under which, and the manner in
which, districts must be withdrawn after a federal census.

Sec. 11.053. TRANSITION TO SINGLE-MEMBER DISTRICTS: OPTION TO
CONTINUE IN OFFICE.

(a) Provides for the trustees under Sec. 11.052 to serve at
large for the remainder of their terms.

(b) Provides for filling positions as staggered terms expire.

Sec. 11.054. ELECTING TRUSTEES THROUGH CUMULATIVE OR LIMITED
VOTING.

(a) Authorizes cumulative or limited voting in trustee in
which more than one trustee is elected at large.

(b) Requires secretary of state to adopt rules to administer
a cumulative or limited voting procedure.

(c) Provides that election is held in the same manner as other
trustee elections except as provided by rules adopted under
Subsection (b).

Sec. 11.055. APPLICATION TO GET ON BALLOT.

(a) Governs the time period within which a ballot application
may be filed.

(b) Provides the conditions under which application must state
whom the applicant is opposing.

Sec. 11.056. WRITE-IN VOTING.

(a) Prohibits counting write-in votes unless a declaration of
write-in candidacy is filed.

(b) Governs the time period within which a declaration of
write-in candidacy may be filed.

(c) Provides that Subchapter B, Chapter 146, Election Code,
applies to write-in voting in trustee election with the
appropriate modifications and to the extent practicable.

(d) Requires secretary of state adopt rules to implement this
section.

Sec 11.057. DETERMINATION OF RESULTS.

(a) Prescribes the method of determining the results of an
election in which trustee positions are designated by number
under Section 11.058.

(b) Prescribes the method of determining the results of an
election in which trustee positions are not designated by
number.

Sec. 11.058. ELECTION BY POSITION.

(a) Provides that this section governs the designation of
positions of trustees by number.

(b) Requires designation of positions by number in an
independent school district when authorized and instituted
under general or special law by board resolution or operation
of law.

(c) Requires designation of positions by number in an
independent school district if ordered by resolution of the
board of trustees.

(d) Provides the time period before an election within which
the resolution must be made.

(e) Provides the time period before an election within which
the positions must be numbered.

(f) Prohibits the rescission of an action requiring
designation of positions by number.

(g) Prescribes requirements for ballots for elections to which
the section applies.

Sec. 11.059. LOCAL OPTION REQUIRING MAJORITY VOTE.

(a) Authorizes board of trustees of an independent school
district to require a candidate to receive a majority of the
total number of votes cast to be elected.

(b) Allow rescission of a resolution adopted under Subsection
(a).

Sec. 11.060. TERMS.

(a) Authorizes trustee terms of three or four years as
determined by board policy.

(b) Requires elections for trustees with three-year terms to
be held annually, with as near to one-third of the terms as
possible expiring each year.

(c) Requires elections for trustees with four-year terms to be
held biennially, with as near to one-half of the terms as
possible expiring each year.

(d) Requires board policy to state the schedule on which terms
expire.

(e) Provides for the transition to three or four year terms.
Expires August 31, 2001.

Sec. 11.061. VOTER APPROVAL FOR TERM LIMITS.

(a) Allows the board of trustees to establish term limits with
voter approval.

(b) Lists issues a board must address in adopting term limits.

(d) Prescribes the vote required for term limits to take
effect.

Sec. 11.062. VACANCIES.

(a) Authorizes board of trustees to fill a vacancy by
appointment.

(b) Provides that a trustee appointed to a vacancy by the
governing body of a municipality serves for the unexpired
term.

(d) Prescribes the time period within which a vacancy must be
filled if more than one year remains in the term.

Sec. 11.063. QUALIFICATION AND ORGANIZATION OF TRUSTEES;
COMPENSATION.
(a) Prescribes requirements for the filing of official oaths
by newly elected school trustees.

(b) Requires trustee to be a qualified voter.

(d) Provides that board members serve without compensation.

Sec. 11.064. ELECTION OF OFFICERS IN CERTAIN SCHOOL DISTRICTS.
Continues election procedures of a district electing, as of
September 1, 1995, some trustees at large and some from single-member districts until a different the board adopts a different
method of selection.

Sec. 11.065. ELIGIBILITY FOR EMPLOYMENT. Prohibits trustee from
accepting employment with the district before the first anniversary
of the date the trustee s membership on the board ends.

Sec. 11.066-11.100. (Reserved for expansion).

SUBCHAPTER D. POWERS AND DUTIES OF BOARD OF TRUSTEES OF
INDEPENDENT SCHOOL DISTRICT

Sec. 11.101. IN GENERAL.

(a) Provides that the trustees of an independent school
district is a body corporate. Authorizes board to acquire and
hold property, sue and be sued, and receive bequests and
donations.

(b) Grants the board the exclusive authority to govern and
oversee the management of the public schools of the district.
Reserves to the trustees powers and duties not specifically
delegated by statute to the Texas Education Agency and
prohibits the agency from substituting its judgment for the
lawful exercise of those powers and duties by the trustees.

(c) Vest title of school district property in the board of
trustees. Authorizes trustees to dispose of property no
longer necessary for operation of the school district.

(d) Authorizes trustees to adopt rules and bylaws necessary to
carry out powers and duties provided by Subsection (b).

Sec 11.102. TAXES; BONDS. Authorizes trustees to levy and collect
taxes and issue bonds in compliance with Chapter 45. Authorizes
trustees to set tax rate within limit voted and specified by law if
specific rate is not adopted at election authorizing the tax.

Sec. 11.103. SALE OF MINERALS.

(a) Authorizes the sale of mineral in land belonging to an
independent school district.

(b) Requires the sale to be authorized by resolution of the
board.

(c) Authorizes board president to execute an oil or gas lease
or sell, exchange, and convey the minerals after adoption of
the resolution. Requires that the deed or lease recite the
approval of the resolution.

Sec. 11.104. SALE OF PROPERTY OTHER THAN MINERALS.

(a) Authorizes the trustees to authorize by resolution the
sale of property other than minerals.

(b) Requires the board president to execute a deed to the
purchaser reciting the resolution authorizing the sale.

(c) Authorizes district to employ, retain, contract with, or
compensate a licensed real estate broker or salesperson for
assistance in the acquisition or sale of real property.

Sec. 11.105. EMINENT DOMAIN.

(a) Authorizes independent school district to acquire property
by the exercise of the power of eminent domain.

(b) Makes statutes applicable to condemnation proceedings by
a railroad applicable to condemnation proceedings by a school
district.

(d) Prescribes the conditions under which a school district
may take possession of property to be condemned pending suit.

Sec. 11.106. DONATIONS TO THE PUBLIC SCHOOLS.

(a) Vests donated property in the trustees if not otherwise
directed by the donor.

(b) Prescribes the purposes for which a donation may be used.

Sec. 11.107. CONTRACTS FOR EDUCATIONAL SERVICES. Authorizes
trustees to contract with a public or private entity for
educational services for the district.

Sec. 11.108. AUTHORITY TO CHARGE FEES.

(a) Prescribes the fees that may be charged by the board of
trustees of an independent school district.

(b) Lists purposes for which the imposition of fees is
prohibited.

(d) Limits the conditions under which a fee may be charged for
a course under Section (a)(12).

(e) Provides that section does not prohibit operation of a
school store in which students may purchase school supplies
and materials.

(f) Requires school district to adopt and publicize reasonable
procedures for waiving a deposit or fee that a student or the
student s parent or guardian is unable to pay.

(g) Provides that section does not prohibit reasonable fees
for goods and services provided in connection with a
postsecondary instructional program.

Sec. 11.109. MEMBER TRAINING AND ORIENTATION. Requires State
Board of Education to provide a training course for independent
school district trustees to be offered by regional education
service centers. Authorizes the state board to approve private
organizations to offer courses. Requires course offered through a
service center to be open to any interested person. Authorizes
state board to prescribe a registration fee designed to offset the
costs of providing the course.

Sec. 11.110. CHANGE OF SCHOOL DISTRICT NAME.

(a) Authorizes board of trustees of an independent school
district by resolution to change the name of the school
district.

(b) Requires board to give notice of the change in name to the
commissioner of education. Provides that the district, under
its changed name, is considered a continuation of the
district, as formerly named.

Sec. 11.111. FRIVOLOUS SUIT. Authorizes the award of costs and
reasonable attorney s fees in a civil suit brought under state law
against an independent school district or district officer if the
court finds that the suit is frivolous, unreasonable, and without
foundation and the suit is dismissed or judgment is for the
defendant.

Sec. 11.112. EMPLOYMENT POLICY. Requires board of trustees of
independent school district to adopt an employment policy for
district personnel that provides for the organizational structure
and responsibilities of administrative personnel.

Sec. 11.113. EMPLOYMENT CONSULTATION WITH TEACHERS. Authorizes
the board of trustees of an independent school district and
district administrative personnel to consult with teachers with
respect to matters of educational policy and conditions of
employment. Authorizes board to adopt reasonable rules and make
agreements to provide for such consultation. Provides that section
does not limit or affect trustees power to govern and oversee the
management of the schools.

Sec. 11.114-11.200. (Reserved for expansion).

SUBCHAPTER E. DISTRICT-LEVEL AND SITE-BASED DECISION-MAKING

Sec. 11.201. PLANNING AND DECISION-MAKING PROCESS.

(a) Provides that board of trustees shall ensure that district
and campus improvement plans are developed, reviewed, and
revised annually; and that boards annually approve district
and campus performance objectives.

(b) Requires boards to adopt policy to establish the planning
and decision-making process, and establish procedures for
regular meetings to be held by district and campus committees
that represent professional staff, parents, and community
members which may include business representatives.

(d) Requires the board, with the involvement of the district-level committee, to ensure that an administrative procedure
defines the respective roles of the superintendent, central
office staff, principals, teachers, district- and campus-level
committee members in the areas of planning, budgeting,
curriculum, staffing patterns, staff development, and school
organization.

(e) Provides for the election of professional staff who serve
on the district-level committee, the election of parents by
parents to district- and campus-level committees, and
selection of community members and business representatives
consistent with the community's diversity.

(f) Provides that all federal planning requirements be
addressed through the district- and campus-level planning
process.

(g) Ensures that this section does not prohibit the board from
conducting meetings with other teachers; nor from providing
for student or professional staff involvement in planning and
decision-making; nor does it limit or affect the board's power
to govern public schools.

Sec. 11.202. DISTRICT-LEVEL PLANNING AND DECISION-MAKING.

(a) Requires each district to have a district improvement plan
developed and revised annually by the superintendent with the
assistance of the district-level committee. Specifies the
components of the district plan to include comprehensive needs
assessment, performance objectives, strategies in specific
areas, resources, staff responsible, timelines, and evaluation
criteria.

(b) Provides that the district plan is not filed with the
agency, but must be available upon request.

(d) Requires districts to evaluate the effectiveness of the
district's planning and decision-making and staff development
and their impact student performance.

(e) Requires the district-level committee to hold at least one
public meeting per year after receipt of the annual district
performance report and that systematic communications measures
are in place.

Sec. 11.203. CAMPUS PLANNING AND SITE-BASED DECISION-MAKING.

(a) Requires districts to maintain current policies and
procedures for effective campus planning and decision-making
supporting the improvement of student performance.

(b) References the procedures for establishing the committees
in Sec. 11.201.

(c) Requires each principal, with the assistance of the campus
committee, to annually develop, review, and revise the campus
improvement plan.

(d) Specifies the components of the campus plan to include
assessment of student performance, campus performance
objectives, how goals will be met, resources, staff needs,
timelines, and measurement of progress.

(e) Specifies the areas of decision-making, and that the
committee must approve plans for staff development and waiver
requests.

(f) Provides that this section does not create a new cause of
action.

(g) Requires the committees to hold at least one public
meeting per year after receipt of the annual campus rating
from the agency; and requires the establishment of systematic
communications measures.

Sec. 11.204. STATE RESPONSIBILITIES FOR THE PLANNING AND DECISION-MAKING PROCESS.

(a) Requires the commissioner to oversee the provision of
training and technical support for planning and decision-making for all districts and campuses.

(b) Requires the agency to conduct an annual statewide survey
of the types of planning and decision-making structures, the
extent of involvement of stakeholders, and the perceptions of
those persons of the quality and effectiveness of decisions.

Sec. 11.205-11.250. (Reserved for expansion).

SUBCHAPTER F. LAW APPLICABLE TO CERTAIN SCHOOL DISTRICTS AND
COUNTY SYSTEMS.

Sec. 11.251. APPLICATION OF FORMER LAW.

(a) Continues the application of certain chapters that are not
recodified to school districts and county systems operating on
May 1, 1995 under those chapters.

(b) Continues the application of certain subchapters that are
not recodified relating to the conversion of certain school
districts to independent school districts.

Sec. 11.252. PUBLIC INFORMATION. Requires governing body to make
law applicable to the district or county system under Sec. 11.251
available for inspection and copying during regular operating
hours.

Sec. 11.253-11.270. (Reserved for expansion).

SUBCHAPTER G. SPECIAL-PURPOSE SCHOOL DISTRICTS

Sec. 11.271. AUTHORITY TO ESTABLISH SPECIAL-PURPOSE SCHOOL
DISTRICT.

(a) Governs the circumstances under which the State Board of
Education make create a special-purpose school district.

(b) Requires the state board to allow the special-purpose
districts to share in the available school fund and to
exercise other privileges granted to independent and common
school districts.

Sec. 11.272. GOVERNANCE OF SPECIAL-PURPOSE DISTRICT.

(a) Provides for the appointment of the board of trustees of
a special-purpose district created under Section 11.271.

(b) Provides for the appointment of the board of trustees of
a military reservation school district and for the length of
the terms of those trustees.

(c) Authorizes the State Board of Education to adopt rules for
the governance of a special-purpose district. Provides that
special-purpose districts are governed by laws applicable to
independent school districts except as provided by state board
rules adopted under this subsection.

Sec. 11.273. ADMISSION AND ATTENDANCE. Governs the admission of
students to a military reservation school district.

Sec. 11.274. ABOLITION OF SPECIAL-PURPOSE DISTRICT. Governs the
circumstances under which the State Board of Education may abolish
a military reservation school district and the disposition of the
district s territory and property.

Sec. 11.275. ANNEXATION OF ADDITIONAL TERRITORY BY CERTAIN
SPECIAL-PURPOSE DISTRICTS.

(a) Governs the circumstances under which the State Board of
Education may annex a military reservation territory to a
military reservation school district.

(b) Governs the circumstances under which the State Board of
Education may subsequently detach the annexed territory from
the military reservation school district and annex it to the
school district from which it was originally detached.

Sec. 11.276. SUPPORT OF STUDENTS ENROLLED IN SPECIAL-PURPOSE
SCHOOL DISTRICTS. Determines the manner in which the independent
or common school district responsible for providing education
services to a student who is enrolled in a special-purpose school
district established under Section 11.271 shares in the costs of
the student s education.

CHAPTER 12. CHARTERS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 12.001. ALTERNATIVE METHOD OF OPERATION. Authorizes an
independent school district, a school campus, or an education
program to operate under a charter.

Sec. 12.002. CLASSES OF CHARTER. Lists the classes of authorized
charters.

SUBCHAPTER B. HOME-RULE SCHOOL DISTRICT CHARTER

Sec. 12.011. AUTHORIZATION. Authorizes a school district to adopt
a home-rule charter.

Sec. 12.012. APPLICABILITY OF LAWS AND RULES TO HOME-RULE SCHOOL
DISTRICT. Limits the extent to which the Education Code and rules
adopted under the Education Code apply to home-rule districts.

Sec. 12.013. APPLICABILITY OF TITLE.

(a) Grants to home-rule school districts the powers granted to
other school districts under this title.

(b) Provides that a home-rule school district is subject to a
provision of Title 2 that establishes a criminal offense.
Lists the categories of prohibitions, restrictions, or

requirements under Title 2 or rules adopted under Title 2 that
are applicable to a home-rule school district.

(c) Provides that a home-rule school district has the same
duties and entitlements as another school district for
purposes of student admissions and the Teacher Retirement
System.

Sec. 12.014. APPOINTMENT OF CHARTER COMMISSION. Sets out the
requirements for a petition submitted by voters or for a vote of
the board of trustees that would require the board to appoint a
charter commission.

Sec. 12.015. CHARTER COMMISSION.

(a) Governs the time period in which the charter commission
must be appointed. Authorizes the board of trustees to
determine the number of residents to serve on the commission.

(b) Requires that a majority of the commission members be
district residents who are parents of school-age children.

Sec. 12.016. CONTENT. Lists subjects that must be addressed in
the charter.

Sec. 12.017. LEGAL REVIEW. Requires that a school district s
legal counsel review the proposed charter for compliance with
applicable laws and recommend any modifications necessary.

Sec. 12.018. CHARTER ELECTION.

(a) Requires board of trustees to order election as soon as
practicable after legal review is completed.

(b) Governs the election date for the charter election.

(c) Governs the locations at which and time period during
which copies of the charter must be available and the number
of copies that must be at each location. Requires election
notice to include notice of availability of copies.

Sec. 12.019. CHARTER AMENDMENT.

(a) Authorizes board of trustees to order charter amendment
election.

(b) Requires board of trustees to order charter amendment
election on petition of voters and sets out requirements for
the petition.

(d) Requires election notice to include a substantial copy of
proposed amendment.

(e) Limits a charter amendment to one subject.

(f) Requires that voters be allowed to approve or disapprove
each charter amendment separately.

(g) Limits the frequency of charter amendment elections.

Sec. 12.020. ADOPTION OF CHARTER OR CHARTER AMENDMENT.

(a) Governs the election result required for adoption of a
charter or charter amendment.

(b) Governs the effective date of charters and charter
amendments and the time period following the election within
which the board of trustees is required to enter an order
declaring the adoption of the charter or charter amendment.

Sec. 12.021. CERTIFICATION OF CHARTER OR CHARTER AMENDMENT.

(a) Prescribes duty of the president of the board of trustees
relating to certification of the charter or charter amendment.

(b) Prescribes duty of the secretary of state relating to
certification of the charter or charter amendment.

Sec. 12.022. EFFECT OF RECORDING CHARTER OR CHARTER AMENDMENT.
Provides that a recorded charter or charter amendment is a public
act. Requires a court to take judicial notice of the charter or
charter amendment and provides that proof is not required of its
provisions.

Sec. 12.023. CHANGE IN GOVERNING BODY. Governs the terms of
members of the governing body of a school district serving on the
date of the adoption, amendment, or revocation of a home-rule
school district charter.

Sec. 12.024. BASIS FOR PLACEMENT ON PROBATION, SUSPENSION, OR
REVOCATION OF CHARTER.

(a) Describes circumstances under which State Board of
Education may place on probation, suspend, or revoke a home-rule school district charter.

(b) Lists the considerations on which the state board is to
base an action under Subsection (a).

(c) Provides that a school district whose charter is suspended
or revoked operates under Titles 1 and 2 of the Education
Code.

Sec. 12.025. PROCEDURE FOR PLACEMENT ON PROBATION, SUSPENSION, OR
REVOCATION.

(a) Requires State Board of Education by rule to adopt a
procedure for placing on probation, suspending, or revoking a
home-rule school district charter.

(b) Requires that the procedure adopted under Subsection (a)
provide an opportunity to the district and to parents of
district students for a hearing, which must be held in the
district.

Sec. 12.026-12.050. (Reserved for expansion).

SUBCHAPTER C. CAMPUS OR CAMPUS PROGRAM CHARTER

Sec. 12.051. AUTHORIZATION. Requires board of trustees to grant
a campus or campus program charter on the petition of a majority of
parents and a majority of classroom teachers at a campus.

Sec. 12.052. COOPERATIVE CAMPUS CHARTER. Requires board of
trustees to grant a charter for a cooperative charter program on
the petition of a majority of parents and a majority of the
classroom teachers at each campus proposing to participate in the
cooperative.

Sec. 12.053. AUTHORITY UNDER CHARTER. Provides that the charter
governs the rules and policies of the board of trustees from which
the campus or program is exempt. Conditions operation under the
charter on the satisfactory performance of students as provided by
the charter.

Sec. 12.054. APPLICABILITY OF LAW AND RULES TO CAMPUS OR PROGRAM
GRANTED CHARTER. Limits the extent to which the Education Code and
rules adopted under the Education Code apply to a campus or program
for which a charter is granted.

Sec. 12.055. APPLICABILITY OF TITLE.

(a) Grants to a campus or program for which a charter is
granted the powers granted to schools under Title 2 of the
Education Code.

(b) Provides that the campus or program is subject to a
provision of Title 2 that establishes a criminal offense.
Describes the prohibitions, restrictions, or requirements
under Title 2 and rules adopted under Title 2 that are
applicable to the campus or program.

Sec. 12.056. STATUS.

(a) Provides that a governing body of a campus or program
provided for under the charter is a governmental body for the
purposes of Chapters 551 and 552, Government Code.

(b) Governs participation in the Teacher Retirement System of
an employee of the campus or program.

Sec. 12.057. CONTENT. Lists subjects that must be addressed in
the charter.

Sec. 12.058. FORM. Requires charter to be in the form of a
written contract signed by the president of the board of trustees
and the chief operating officer of the campus or program.

Sec. 12.059. CHARTER GRANTED. Requires that the charter satisfy
this subchapter and include information required under Section
12.057 consistent with information in the application and any
modification required by the board.

Sec. 12.060. REVISION. Provides that a revision of the charter
requires the approval of the board of trustees.

Sec. 12.061. BASIS FOR PLACEMENT ON PROBATION, SUSPENSION, OR
REVOCATION.

(a) Describes circumstances under which the board of trustees
may place on probation, suspend, or revoke a campus or program
charter.

(b) Lists the considerations on which the board is to base an
action under Subsection (a).

Sec. 12.062. PROCEDURE FOR PLACEMENT ON PROBATION, SUSPENSION, OR
REVOCATION.

(a) Requires board of trustees that grants a charter to adopt
a procedure for placing on probation, suspending, or revoking
a charter.

(b) Requires that the procedure adopted under Subsection (a)
provide an opportunity for a hearing to the campus or program
and to parents and guardians of students at the campus or in
the program. The hearing must be held on the campus or on one
of the campuses in the case of a cooperative program.

Sec. 12.063. ADMISSION.

(a) Governs eligibility criteria for admission of students to
a campus or program for which a charter is granted.

(b) Authorizes campus or program to require an application for
admission and to establish a deadline for applications.

Sec. 12.064-12.100. (Reserved for expansion).

SUBCHAPTER D. PROGRAM CHARTER FOR PROGRAM OUTSIDE OF SCHOOL
DISTRICT FACILITY

Sec. 12.101. AUTHORIZATION. Authorizes a board of trustees, or
the State Board of Education on appeal, to grant a charter for the
operation of a program in a facility other than a school district
facility.

Sec. 12.102. AUTHORITY UNDER CHARTER. Requires program to provide
instruction to students at one or more grade levels as provided by
the charter. Provides that program is governed by governing
structure described by the charter. Conditions authority to
operate under the charter on satisfactory student performance as
provided by the charter in accordance with Section 121.10l.

Sec. 12.103. APPLICABILITY OF LAW AND RULES TO PROGRAM. Limits
the extent to which the Education Code and rules adopted under the
Education Code apply to a program for which a charter is granted.

Sec. 12.104. APPLICABILITY OF TITLE.

(a) Grants to a program for which a charter is granted, the
powers granted to schools under Title 2 of the Education Code.

(b) Provides that the program is subject to a provision of
Title 2 that establishes a criminal offense. Describes the
prohibitions, restrictions, or requirements under Title 2 and
rules adopted under Title 2 that are applicable to the
program.

Sec. 12.105. STATUS.

(a) Provides that the program is a part of the public school
system but operates independently of a school district.

(b) Provides that a governing body of the program is a
governmental body for the purposes of Chapters 551 and 552,
Government Code.

(c) Provides that the program and its employees are immune
from liability to the same extent as a school district and
school district employees.

Sec. 12.106. STATE FUNDING.

(a) Governs the available school fund entitlement of a
chartered program.

(b) Governs distributions from the foundation school fund to
chartered programs.

(c) Prohibits the state from making up the difference between
the cost of the educational program provided by a chartered
program and the sum of state and local funding provided under
this section and Section 12.107.

Sec. 12.107. LOCAL FUNDING.

(a) Governs the tuition to which the program is entitled from
the school district in which a student attending the program
resides.

(b) Governs the computation of the amount of tuition to be
paid by a school district with a wealth per student that
exceeds the equalized wealth level under Chapter 41.

Sec. 12.108. TUITION RESTRICTED. Prohibits tuition except as
provided under Section 21.107.

Sec. 12.109. APPLICATION.
(a) Requires the board of trustees to adopt an application
form and procedure for a program to apply for a charter and
criteria for selecting a program to which to grant a charter.

(b) Requires the application form to provide for including
information required under Section 12.110.

(c) Permits the board to require in the application procedure
a petition signed by a specified number of parents or
guardians of school-age children residing in the area or to
hold a public hearing to determine parental support.

(d) Governs the approval or denial of an application.

Sec. 12.110. CONTENT. Lists subjects that must be addressed in
the charter.

Sec. 12.111. FORM. Requires charter to be in the form of a
written contract signed by the chief operating officer of the
program and the president of the board of trustees or the chairman
of the State Board of Education, as applicable.

Sec. 12.112. CHARTER GRANTED. Requires that each charter satisfy
this subchapter and include information required under Section
12.110 consistent with information in the application and any
modification required by the board.

Sec. 12.113. REVISION. Provides that a revision of the charter
requires the approval of the entity that granted the charter.

Sec. 12.114. BASIS FOR PLACEMENT ON PROBATION, SUSPENSION, OR
REVOCATION.

(a) Describes circumstances under which the board of trustees
may place on probation, suspend, or revoke a program charter.

(b) Lists the considerations on which the board is to base an
action under Subsection (a).

Sec. 12.115. PROCEDURE FOR PLACEMENT ON PROBATION, SUSPENSION, OR
REVOCATION.

(a) Requires board of trustees to adopt a procedure for
placing on probation, suspending, or revoking a charter.

(b) Requires that the procedure adopted under Subsection (a)
provide an opportunity for a hearing to the person operating
the program and to parents and guardians of student in the
program. Requires that the hearing be held at the facility at
which the program is operated.

Sec. 12.116. ADMISSION.

(a) Governs eligibility criteria for admission of students to
a program for which a charter is granted.

(b) Authorizes program to require an application for admission
and to establish a deadline for applications.

Sec. 12.117. APPEAL.

(a) Provides that the denial of a charter application under
this subchapter may be appealed to the State Board of
Education.

(b) Authorizes State Board of Education to overrule a board of
trustees and approve an application using criteria adopted
under Section 12.109.
CHAPTER 13. CREATION, CONSOLIDATION, AND ABOLITION OF A DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 13.001. DEFINITION. Defines "membership".

Sec. 13.002. PERMITTED FREQUENCY OF PROPOSED ACTIONS.

(a) Requires a three year period between elections on
propositions
covered under this chapter. The three year moratorium
applies whether the proposition carried or failed.

(b) Requires a three year period between consideration of
petitions covered under
this section if petitioner's request is denied. A
petition to reverse the effects of a petition request
which was granted
may not be
considered for three
years after
issuance or adoption of the original request.

Sec. 13.003. PETITION AND ELECTION.

(a) Sets out that this section governs the validity of a
petition and the conduct of the resulting election.

(b) Requires that to be valid, a petition must be submitted
to the county judge of the county in which the district
is located, be signed by at
least ten percent of the registered voters in the
appropriate district and state
the purpose for which it is submitted.

(c) Requires an election be set by the county judge
immediately following receipt of a valid petition on the
first uniform election
date occurring no more
than 60 days after
receipt of the petition.
If there is no authorized
election date within 60
days, then the
election shall be ordered
for the next authorized
date.

(d) Requires the election order to include the date, hours,
locations and the proposition to voted on.

(e) Requires the county judge to give notice of the election
no earlier than 30 days after receipt of the petition and no
less than 10 days before the date of the
election.
Notice must be published in a newspaper of the appropriate
district. Notice must
also be posted in a public place in each election precinct
at least 21 days prior to the
election date.

(f) Provides for the elections to be held using usual
polling places in the appropriate district and if another
election is occurring on the
same date, then the same
polling location should be
used so that voters may cast
votes in one place. To the
extend practicable, the
election shall be conducted
in accordance with the
Election Code.

(g) Provides that election expenses will be paid by the
appropriate school district or districts.

Sec. 13.004. ALLOCATION OF INDEBTEDNESS AND PERSONAL PROPERTY.

(a) Directs the commissioners court to equitably distribute
the debt of a
district to be consolidated, annexed or abolished. If
involved districts are in more
than one county, then the commissioners courts of each
county must agree on the
allocation of indebtedness and personal property.

(b) Requires that in considering allocation of indebtedness,
the commissioners court shall consider the value of the
properties involved and the taxable
value of the districts involved.

(d) Provides that a district assuming debt under this
chapter is not required to hold an election to do so. A
district assuming debt
may also levy and collect
taxes to pay the
assumed debt.

(e) Allows a district to issue refunding bonds for bonds of
another district assumed under this chapter without an
election.

(f) Provides that if an entire district is annexed,
consolidated, converted from common to independent, or
separated from a municipality,
the governing board of the
newly created district may
sell and deliver any unissued
bonds, voted in the former district, without an
election.

Sec. 13.005. EFFECTIVE DATE OF TRANSFER.

(a) Sets out that transfer of territory from one district to
another is effective on the first July 1 that is 30 days
after the date of the order,
ordinance or election on the proposition.

(b) Sets out that on the effective date of transfer,
students in the territory to be transferred become
residents of the
receiving district and
the receiving district assumes jurisdiction,
allocated debt and title
to property of the
transferred territory.

(c) Provides that if the decision is appealed to the
commissioner and is approved, then the transfer is effective
no less than 30 days
after the appeal is
denied. If the decision
of the commissioner is
appealed to the Travis
County District Court,
and the appeal
is denied, then the court will set the effective date of
transfer.

Sec. 13.006. TAXING AUTHORITY TRANSFER.

(a) Allows receiving districts to levy taxes at the rate
established for the district as a
whole, without conducting an election in the territory
received.

(b) Provides that conversion of a common or rural district
to an independent district, or separation from a municipal
district does not affect the taxes
levied. The new district may levy and
collect taxes at the same rate at which
the taxes were
previously levied and need not hold an election for that
purpose.

Sec. 13.007. BOUNDARY CHANGES RESULTING IN APPRAISAL DISTRICT
CHANGES.

(a) Sets out applicability of section.

(b) Provides that if a receiving district is located in two
or more counties and has a single appraisal district,
then the boundaries of that
district extend to include the
annexed territory. In
the tax year in which the
transfer was effective, the
receiving district may
impose taxes on the basis of
the prior appraisal district's
valuation or the valuation
arrived at by reappraisal
requested by the receiving
district in the manner
prescribed by Section 25.18
(c), Tax Code.

(c) Provides that if the receiving district is located in a
single county or participates in more than one
appraisal district, the
receiving district may
choose to participate in
a single appraisal
district in accordance
with Section 6.02, Tax
Code, for a newly created district. For
the tax year in which the
annexation is effective,
the receiving
district shall impose taxes based on the valuation set
before the annexation.

Sec. 13.008. DISTRICT TRUSTEES APPROVAL OF BOUNDARY CHANGES
REQUIRED. School district boundary changes must be approved by a
majority of the board of trustees of the district if the board's
approval is required under this chapter.

Sec. 13.009. APPEALS.

(a) Sets out that a commissioners court decision may be
appealed under Sec. 7.057.

(b) Provides that if action or agreements by two or more
commissioners courts is required and no action is taken or
agreement is reached in a
reasonable time, as determined by
SBOE rule, then a person
aggrieved by the failure may appeal
to the commissioner.

Sec. 13.010. BOUNDARY DESCRIPTIONS AND MAPS TO BE FILED WITH THE
AGENCY.

(a) Requires each school district to file with the agency a
legal description of the boundaries of the district, a
map of the district and a list
of voting precincts in the
district.

(b) Requires all pertinent information regarding changes to
the information filed with the agency under subsection
(a) must be filed with the
agency.

(c) Requires all information maintained by the agency for
purposes of this section must be made available to the
legislature and legislative
agencies at no cost.

Sec. 13.011-13.050. (Reserved for expansion).

SUBCHAPTER B. DETACHMENT; ANNEXATION

Sec. 13.051. DETACHMENT AND ANNEXATION OF TERRITORY.

(a) Requires that territory to be detached from one district
and attached to another be contiguous to the district to
which it will be attached. Petitions requesting annexation
and
detachment
must be
presented
to the
boards of
trustees
of each
affected district. Each board of trustees is required to
hold a hearing on the petition
for the annexation to be effective.

(b) Sets out what a petition requesting annexation and
detachment must contain.

(c) Provides that territory which has no resident many be
detached and annexed if
the taxable property value is not greater than 5 percent of
the districts taxable value and $5000 property value per
student in average daily
attendance. The school
district from which the territory to be detached may not own
any property in the
territory.

(d) Requires that both affected districts must approve the
proposal, subject to appeal
under subsection (j).

(e) Provides that in districts in which detachment will
result in a reduction of the
district's tax base by a ratio at least twice as large as
the ratio by which membership would be reduced, a
majority of the trustees
in that district must
sign the petition
for detachment or the territory may not be detached.

(f) Requires that no district be reduced to an area of less
than nine square miles.

(g) Requires that boards of trustees receiving petitions
must publish and post notice
which specifies the time, date and location of a hearing on
the proposal. Unless
affected districts hold a joint hearing, their hearing must
be held on separate dates.
All affected persons are entitled to an opportunity to be
heard.

(h) Sets out what boards of trustees must take into
consideration in hearings on
annexation and detachment.

(i) Requires that, upon approval by all affected boards of
trustees, each commissioner's court is required to enter
into an order redefining
boundaries. Property and debt
transfer are also carried out.

(j) Provides that if affected boards reject the petition,
the decision may not be appealed. If only one board
rejects, an aggrieved party may
appeal, de novo, to the commissioner.

(k) Provides that additional tax, and interest and penalty
on that tax, resulting from change of use on land in the
annexed territory shall be
paid to the district that imposed the tax.

Sec. 13.052. DORMANT SCHOOL DISTRICTS.

(a) Allows the commissioner to designate dormant school
districts

(b) Directs commissioners courts to annex dormant school
districts within the
county with the approval of the board of trustees to which
the dormant district
is to be annexed.

(c) Designates the governing board of the school district to
which the dormant
district is to be annexed as the governing board of the new
district.

(d) Provides that the commissioners court shall define legal
boundaries of the new
district.

(e) Grants property title and debt liability to the newly
created district or districts.

Sec. 13.054. ACADEMICALLY UNACCEPTABLE SCHOOL DISTRICTS.

(a) Provides that the commissioner may annex districts
rated academically
unacceptable for two or more years to adjoining districts.

(b) Designates the governing board of the district to which
an academically unacceptable district is annexed as the
governing board of the new district.

(d) Grants property title and debt liability to the newly
created district or districts.

(e) Directs the commissioner to investigate the impact of
annexation on the adjoining
districts and sets out guidelines for determining impact.

(f) Provides a five year local fund assignment adjustment
for newly created districts.

(g) Provides for additional state aid to districts to meet
additional debt service costs
incurred by the district due to annexation.

Sec. 13.055-13.100. (Reserved for expansion).

SUBCHAPTER C. CREATION OF DISTRICT BY DETACHMENT

Sec. 13.101. DEFINITIONS. Defines "taxable property value" and
"wealth per student".

Sec. 13.102. CREATION OF DISTRICT BY DETACHING TERRITORY FROM
EXISTING DISTRICT.

(a) Provides that a new school district may be created by
detaching territory from
an existing district.

(b) Sets out the rights and privileges of the new district.

Sec. 13.103. MINIMUM AREA REQUIREMENT. Provides for milage
requirements for new and existing school districts.

Sec. 13.104. INITIATION OF DETACHMENT. Requires that creation
of a new district by detachment be initiated by resolution of the
board of trustees of the territory to be detached, or by petition
to the commissioners court, setting out what the petition must
include.

Sec. 13.105. DETERMINATION OF TAXABLE PROPERTY AND WEALTH PER
STUDENT.

(a) Requires a commissioners court to determine, within 90
days of receiving a valid petition, the taxable value
and wealth per student of the
territory to be detached and
of the property remaining.

(b) Sets out guidelines for determinations made under
subsection (a).

(d) Directs the chief appraiser of the district in which the
territory is located and the agency to assist the
commissioners court in making
its determinations.

(e) Directs disputes over territory top be detached to be
appealed to the commissioner if the taxable value is
determined to require an election in
the territory that is not to be detached. The commissioners
decision is not
appealable.

Sec. 13.106. ELECTION.

(a) Requires that not more than five days after the taxable
value and wealth per student in each territory has been
determined, the commissioners court
shall order
an election to be held on the same date in each school
district from which territory is to be detached.

(b) Sets out circumstances under which an election must be
held in the territory to be detached.

(d) Sets out requirements for what the ballot must include.

(e) Sets out election reporting requirements and results
required for detachment to
occur.

Sec. 13.107. CREATION OF A DISTRICT.

(a) Provides that if all requirements under this subchapter
are met, then the commissioners court shall enter an order
creating a new school district.

(b) Directs the commissioners court to appoint a seven
member board of
trustees for the new district to serve until the next
regular election of trustees.

Sec. 13.108-13.150. (Reserved for expansion).

SUBCHAPTER D. CONSOLIDATION

Sec. 13.151. DISTRICTS THAT MAY CONSOLIDATE.

(a) Provides that districts may consolidate in accordance
with this subchapter.

(b) Allows the consolidated district to include area in more
than one county.

Sec. 13.152. PETITION. Allows consolidation to be initiated by
either a resolution adopted by the board of trustees of each
district, or a petition signed by the required number of
registered voters in each district. The resolution or petition
must be presented to the county judge of each county in which the
districts are located.

Sec. 13.153. ELECTION ORDER; NOTICE.

(a) Sets out election requirements incumbent upon the county
judge after receiving
a valid resolution or petition.

(b) Sets out ballot requirements for the election.

Sec. 13.154. CANVASS; RESULT.

(a) Directs the commissioners court to canvass the election
returns and publish them.

(b) Provides that a majority vote in each district on the
proposed consolidation in
favor will result in the consolidation of the districts.

Sec. 13.155. STATUS; GOVERNANCE.

(a) Establishes that a consolidated school district is an
independent school district.

(b) Determines which board of trustees will serve the
consolidated district except as
provided by subsection (c)

(c) Provides alternate means of determining a new board of
trustees in a newly consolidated district for cases in
which one district was a least five
time greater in
membership than the other.

Sec. 13. 156. TITLE TO PROPERTY; ASSUMPTION OF DEBT.
Establishes that title to all property and assumption of all debt
goes to the newly consolidated district.

Sec. 13.157. DISSOLUTION OF CONSOLIDATED SCHOOL DISTRICT.

(a) Provides that a consolidated district may be dissolved
by the same procedure used to consolidate, with the
exception that polling places in
each of the former
districts need not be provided.

(b) Provides that if a district is dissolved, then each of
the former districts is restored as an independent school
district.

Sec. 13.158-13.200. (Reserved for expansion).

SUBCHAPTER E. ABOLITION OF INDEPENDENT SCHOOL DISTRICT

Sec. 13.201. ELIGIBILITY. Establishes that an independent
school district can be abolished.

Sec. 13.202. PETITION. Requires abolition of an independent
school district be initiated by petition signed by a majority of
the board of trustees and presented to the county judge.

Sec. 13. 203. ELECTION.

(a) Requires each county judge receiving a valid petition to
issue an order for an
election to be held on the same day in each county and give
notice of the election.

(b) Prescribes what the ballot must include.

Sec. 13.204. ORDER ABOLISHING DISTRICT.

(a) Requires the commissioners court to canvas the votes of
the election.

(b) Provides that if the majority of the votes are cast in
favor of abolition then the
commissioners court shall declare.

Sec. 13.205. DISPOSITION OF TERRITORY, ETC.

(a) Sets out the applicability of this section.

(b) Requires each commissioners court to annex territory of
abolished school districts as provided in this section.

(d) Provides for the collection of taxes in an abolished
district which had no
outstanding debt.

(e) Provides for the assumption of debt incurred by an
abolished district.

(f) Sets out procedure for creditors to make claims against
an abolished district .

SUBCHAPTER F. OTHER BOUNDARY CHANGES

Sec. 13.231. MINOR BOUNDARY ADJUSTMENTS BY AGREEMENT.

(a) Allows contiguous school districts to adjust their
boundaries and sets out
requirements by which such adjustments may be made.

(b) Defines "taxable value"

SUBCHAPTER G. INCENTIVE AID PAYMENTS

Sec. 13.281. INCENTIVE AID.

(a) Establishes eligibility of districts created after
August 22, 1963 for incentive aid.

(b) Places a ten year limit on incentive aid

Sec. 13.282. AMOUNT; COMPUTATION.

(a) Places limits on the amount of incentive aid payments

(b) Sets out limitations on incentive aid for reorganized
districts not eligible for
entitlement under Section 42.253.

Sec. 13.283. PAYMENTS REDUCED. Provides that incentive aid
payments shall be reduced in direct proportion to reduction in
average daily attendance.

Sec. 13.284. CONDITIONS FOR PAYMENT. Requires that geographic
boundaries of the new district must be submitted for approval to
the agency and set forth in the petition for a consolidation
election before the district may receive incentive aid payments.

Sec. 13.284. COST. Provides that the cost of incentive aid
payments will be paid from the foundation school fund.

CHAPTER 14 - 18

(Reserved for Expansion)

CHAPTER 19. SCHOOLS IN THE TEXAS DEPARTMENT OF CRIMINAL JUSTICE

Sec. 19.001. DEFINITIONS. Defines "board" and "department."

Sec. 19.002. ESTABLISHMENT. Requires the school district
established by the Board of Corrections in 1969 to be known as
the Windham School District, an entity that is separate and
distinct from the Texas Department of Criminal Justice.
Authorizes the district to establish and operate schools at the
various facilities of the Texas Department of Criminal Justice.

Sec. 19.003. GOALS OF THE DISTRICT. Sets forth the goals of the
district.

Sec. 19.004. GOVERNANCE, LIMITATION ON POWERS, AND DUTIES.

(a) Requires the district to be governed as provided by this
chapter and policies established by the board. Provides that
a provision of this code applying to
school districts does not apply to the
district unless otherwise specifically
provided.

(b) Prohibits the district from imposing a tax.

(c) Requires the district to develop educational and
vocational training programs designed for persons eligible under
Section 19.005 and coordinate
educational programs and services
in the department with those
provided by other state agencies,
political subdivisions, and by
persons who provide programs and
services under contract.

Sec. 19.005. ELIGIBILITY FOR CERTAIN PROGRAMS AND SERVICES.
Provides that only a person confined or imprisoned in the
department who is not a high school graduate is eligible for
programs or services under this chapter paid for with money from
the foundation school fund. Provides that eligibility under this
chapter does not make a person eligible for a program or service
under any other chapter.

Sec. 19.006. GRANTS AND FEDERAL FUNDS.

(a) Authorizes the district, rather than the Board of
Corrections, to accept a grant from a public or private
organization and to spend those funds to operate district
programs and provide district services.

(b) Provides that the district is authorized to accept
federal funds and is required to use those funds in compliance
with applicable federal law,
regulations, and guidelines.

Sec. 19.007. COSTS TO BE BORNE BY STATE.

(a) Requires the state, except as authorized by Section
19.006 and this section, to pay the cost of operating the
district.

(b) Requires the costs for persons eligible under Section
19.005 to be paid from the foundation school fund.

(c) Authorizes the district, in addition to money from the
foundation school fund, to receive appropriated money from
the department for educational programs.

(d) Prohibits the operating costs to be charged to another
school district.

(e) Requires the district to be eligible to participate
in the textbook program under Chapter 31.

Sec. 19.008. ALLOCATION OF COSTS.

(a) Requires the commissioner to allocate funds to the
district for each contact hour between a teacher and a person
eligible under Section 19.005,
including associated
administrative costs, for the
best 180 of 210 school days in
each year of the state fiscal
biennium. Authorizes those
funds to be spent only for
district administrative costs
related to education and for
district educational programs
and services and only with the
approval of the board.

(b) Requires the agency to establish a time and manner for
the district to report and verify contact hours to the agency.

Sec. 19.009. DISTRICT EMPLOYEES.

(a) Authorizes the board to establish personnel policies as
necessary to ensure the effective and efficient operation of the
district.

(b) Requires each employee of the district to serve 220 or
226 days each year, based on position, as determined by the
board.

(c) Requires a district employee required under Chapter 21B
to hold a certificate to be certified in accordance with that
subchapter.

(d) Requires each employee to be paid according to a salary
schedule approved by the board. Authorizes the schedule to
allow for salary differentiation
that provides for salaries at a
Windham School District school site
to be commensurate with educator
salaries in school districts
contiguous to that school site.

(e) Requires each employee of the district who qualifies for
membership in the system to be covered under the system to
the same extent a qualified
employee of any other district is
covered.

(f) Provides that the state minimum sick leave program under
Section 22.003 applies to a district employee in the same
manner as that program applies to an
employee of any other school district.

(g) Requires the employees of the district to be eligible
for workers' compensation benefits and uniform group
insurance benefits.

Sec. 19.010. STRATEGIC PLAN AND ANNUAL REPORT.

(a) Requires the district to propose, and the board to adopt
with any necessary modifications, a strategic plan.

(b) Requires the district to prepare a report for each
fiscal year documenting district activities under the strategic
plan. Requires the district to
file the report for the
preceding fiscal year with the
board, the governor, the
lieutenant governor, the
speaker of the house of
representatives, and the
agency.

CHAPTER 20

(Reserved for Expansion)

SUBTITLE D. EDUCATORS AND SCHOOL DISTRICT
EMPLOYEES AND VOLUNTEERS

CHAPTER 21. EDUCATORS

SUBCHAPTER A. GENERAL PROVISIONS.

Sec. 21.001. DEFINITION. Defines "commissioner".

Sec. 21.002. EDUCATOR EMPLOYMENT CONTRACTS.

(a) Requires school districts to employ educators under term
contracts.

(b) Permits school districts to employ teachers under a
continuing contract or probationary contract if already
employed January 1995.

Sec. 21.003. CERTIFICATION REQUIRED.

(a) Requires educators to hold an appropriate certificate.

(b) Requires other personnel to hold an appropriate
certificate.

(c) Prohibits the agency from requiring speech pathologists or
audiologists to hold a certificate issued by the state to be
employed. Requires districts to employ licensed speech
pathologists or audiologists if available.

Sec. 21.004. TEACHER RECRUITMENT PROGRAM.

(a) Requires the agency to implement programs for identifying
and recruiting students into teaching.

(b) Requires the recruitment programs to include technology.

(d) Requires the commissioner to identify need areas and use
this information in the recruitment effort.

(e) Allows the commissioner to implement a plan to identify
talented high school students for the teaching profession.

(f) Requires the commissioner to encourage the business
community to be involved.

(g) Requires the commissioner to encourage major education
organizations to become involved in teacher recruitment

(h) Requires teacher recruitment funds to be used to support
only those activities.

Sec. 21.005-21.030. (Reserved for expansion).

SUBCHAPTER B. CERTIFICATION OF EDUCATORS

Sec. 21.031. RULES; FEES.

(a) Requires the agency to set rules for the issuance of
certificates and for establishing standards for the approval
of universities offering teacher preparation programs.

(b) Requires the agency to prescribe the requirements for
certificates, the period of each certificate, and the
requirements for issuing initial certificates or renewal of
existing certificates.

Sec. 21.032. TEACHER EDUCATION PROGRAMS.

(a) Requires the agency to establish general qualifications
for each certificate.

(b) Requires a teacher training programs to include training
to identify abuse, neglect and alcohol/drug use.

Sec. 21.033. TEACHER EDUCATION PROGRAM ACCREDITATION
SANCTIONS.
(a) Requires the commissioner to give confidential notice to
institutions not meeting accreditation standards, and
provide for public notice after a reasonable time.

(b) Allows the commissioner to place preparation programs on
probation for up to 24 months.

(d) Allows the commissioner to reinstate programs if they meet
the standards.

Sec. 21.034. ANNUAL PERFORMANCE REPORT OF TEACHER EDUCATION
PROGRAM.

(a) Requires each program to submit an annual performance
report.

(b) Lists the elements to be included in the report.

Sec. 21.035. CERTIFICATION EXAMINATIONS.

(a) Requires satisfactory performance of basic skills tests as
a condition for entry to a teacher preparation program.

(b) Requires all candidates for Texas certification to pass
examinations of knowledge appropriate for the certificate.

(d) Allows the agency to limit the number of times persons may
take the test. Allows for a one year waiver.

(e) Requires the agency to assess Braille skills of teachers
of students with visual handicaps.

(f) Allows other tests as specified to be used to exempt
students from the basic skills tests required for entry into
teacher education programs.

(g) Entitles a teacher to retain certificate if issued before
effective date of noted sections.

Sec. 21.036. WRITTEN EXAMINATION FOR EDUCATORS WITH HEARING
IMPAIRMENTS.

(a) Requires tests for hearing impaired persons to be valid
and reliable.

(b) Allows hearing impaired persons to be exempted from
certification tests until they have been validated.

Sec. 21.037. CERTIFICATION OF TEACHERS TO TEACH AT A GRADE LEVEL
OR SUBJECT AREA NOT COVERED BY TEACHING CERTIFICATE.

(a) Provides for certified teachers to add certificates by
examination and serve an internship.

(b) Requires secondary teachers to be exempt from internships
if they hold a secondary certificate.

Sec. 21.038. QUALIFICATIONS FOR CERTIFICATION AS SUPERINTENDENT.
Allows candidates for the certificate to substitute management
training or experiences for education requirements.

Sec. 21.039. CERTIFICATION OF CAMPUS ADMINISTRATORS.

(a) Requires the agency to set certification requirements and
standards for campus administrators.

(b) Requires persons employed as campus administrators to hold
certificates issued under the provisions of this section
unless employed before September 1, 1998.

(c) Requires the agency to issue certificates if the person
has completed an approved program, completed an internship,
and pays required fees.

(d) Requires campus administrators to pass certification
examinations.

(e) Allows campus administrator certificates to expire after
five years unless renewed.

Sec. 21.040. CERTIFICATION PROGRAMS FOR CAMPUS ADMINISTRATORS.

(a) Allows campus administrator programs approved by the
agency to be offered by universities, service centers,
districts, or other entities.

(b) Requires programs to be field based, have a selection
process, include an internship, be proficiency based, and
assess proficiency.

(d) Requires candidates to complete a stringent assessment
process prior to certification.

(e) Requires certification programs to maintain financial
records in accordance with agency rules.

(f) Requires the agency to monitor programs.

(g) Requires universities to encourage faculty to participate
in certification programs in public schools.

Sec. 21.041. CAMPUS ADMINISTRATOR INTERNSHIP.

(a) Requires a campus administrator to serve an internship
under a successful campus administrator to be certified.

(b) Requires persons to participate in seminars, etc. during
the internship.

Sec. 21.042. COST OF CERTIFICATION OF CAMPUS ADMINISTRATOR.
Requires the state and a candidate for a certificate to bear the
cost of the certification. Requires the school district to pay
no more than 1/3 of the cost.

Sec. 21.043. ACADEMIC DEGREE AND INTERNSHIP REQUIRED FOR
TEACHING CERTIFICATE.

(a) Requires persons to have an academic degree or an
interdisciplinary degree for a teaching certificate.

(b) Allows the agency to not require more than 18 semester
hours of education courses for a teaching certificate.

Sec. 21.044. OPTIONS FOR FIELD EXPERIENCE AND INTERNSHIPS.
Requires the agency to provide flexibility for field experiences
or internships.

Sec. 21.045. ALTERNATIVE CERTIFICATION. Requires the agency to
provide for certification programs as an alternative to teacher
education programs.

Sec. 21.046. CERTIFICATION OF EDUCATORS FROM OUTSIDE THE STATE.

(a) Allows the agency to issue certificates to persons holding
degrees from accredited entities in other states or
countries, holding a teacher certificate, and performs
successfully on the state required examinations for
certification.

(b) Allows certificates issued by other states to be
recognized if the certificate has expired.

Sec. 21.047. PRESENTATION AND RECORDING OF CERTIFICATES.

(a) Specifies that individuals wanting to teach in public
schools shall present a valid certificate to the district
before the district can employ that individual.

(b) Specifies that for persons not holding valid certificates
may not to be paid for work done prior to certificate
issuance..

Sec. 21.048. RESTRICTED CERTIFICATION OF PERSONS CONVICTED OF A
CRIMINAL OFFENSE.

(a) Provides for convicted criminals to hold a restricted
teaching certificate.

(b) Allows persons certified under this section to teach only
in a correctional facility.

Sec. 21.049. SUSPENSION AND CANCELLATION OF CERTIFICATES.

(a) Allows the commissioner to suspend or cancel certificates
under certain conditions.

(b) Allows the commissioner to reinstate certificates.

(d) Allows the commissioner to reprimand an educator.

Sec. 21.050. SCHOOL DISTRICT TEACHING PERMIT.

(a) Allows districts to issue a district teaching permit and
employ such persons even though they do not hold a teaching
certificate issued by the agency.

(b) Requires persons to hold a baccalaureate degree to be
issued a district teaching permit.

(c) Requires the school district to notify the agency of the
person's qualifications and the person may teach pending
action by the commissioner.

(d) Allows the commissioner to inform the district if the
person is not qualified to teach.

(e) Requires the school district permit to be authorized for
use in that district only.

Sec. 21.051-21.100. (Reserved for expansion).

SUBCHAPTER C. CONTINUING CONTRACTS

Sec. 21.101. CONTINUING CONTRACT.

(a) Limits application of this subchapter to continuing
contracts, as required by Sec. 21.002(b).

(b) Requires contract to be in writing in the form adopted or
approved by the commissioner. Terms of employment as set out
in the subchapter are to be included.

Sec. 21.102. STATUS UNDER CONTINUING CONTRACT. Entitles a teacher
under a continuing contract to continue employment without
reappointment until the teacher resigns, retires, is released,
discharged, dismissed, or returned to probation.

Sec. 21.103. ADMINISTRATIVE PERSONNEL. Permits the board of
trustees to extend a continuing contract to an administrator upon
conclusion of service in an administrative capacity.

Sec. 21.104. DISCHARGE DURING YEAR; SUSPENSION WITHOUT PAY.

(a) Establishes reasons for which a teacher under a continuing
or probationary contract may be discharged during the school
year.

(b) Establishes reasons for which a teacher under a
continuing or probationary contract may be suspended without
pay during the school year.

Sec. 21. 105. RELEASE AT END OF YEAR.

(a) Provides that a teacher under a probationary contract
may be released at the end of a school year.

(b) Establishes reasons for which a teacher under a
continuing contract may be released at the end of the school
year or returned to probationary status.

Sec. 21.106. PROBATIONARY CONTRACT: TERMINATION.

(a) Governs the procedure and notice timelines to be observed
by a district in terminating at the end of the contract period
an employee under a probationary contract.

(b) Requires employment of the probationary teacher in the
same capacity for failure to give notice under (a).

Sec. 21.107. HEARING UNDER PROBATIONARY CONTRACT. Entitles a
teacher under a probationary contract to a hearing upon
termination. Requires teacher to give written notice of request
for hearing. Reasons for termination must be provided at hearing.
Decision of the board is not appealable.

Sec. 21.108. CONVERSION OF PROBATIONARY CONTRACT TO CONTINUING
CONTRACT. Provides for conversion from probationary status to
continuing contract status after third consecutive year of
employment under probationary status. Requires board of trustees
to provide written notice of continuing contract election to
teacher and teacher to accept in writing.

Sec. 21.109. NOTICE.

(a) Requires a board of trustees or its designee to notify a
teacher on probationary or continuing contract of a proposed
change in employment status and the reasons for it prior to
its execution or discharge or suspension without pay.

(b) Requires the written recommendation of the superintendent
if the grounds for proposed action involve the teacher s
inability to perform assigned duties. Teacher is entitled to
receive copies of each evaluation report or document
concerning teacher s fitness or conduct.

Sec. 21.110. HEARING.

(a) Governs the methods for requesting and conducting a
hearing to address a challenge to the proposed action of
discharge or suspension without pay. Sets out specific
timelines for specific acts such as requests for hearings and
notification of decision.

(b) Allows the board to establish a committee of teachers and
administrators for a hearing.

(d) Allows teacher the opportunity to counsel and due process
rights.

(e) Requires board to take appropriate action and notify
teacher.

Sec. 21.111. SUSPENSION WITHOUT PAY PENDING DISCHARGE.

(a) Allows the board or the superintendent, if authorized, to
suspend a teacher without pay pending discharge.

(b) Provides for a hearing and timelines to challenge
suspension.

Sec. 21.112. DECISION OF THE BOARD.

(a) Authorizes a board of trustees to enter an order upon
teacher s failure to timely request a hearing after
notification of a proposed action.

(b) Requires the district to pay compensation withheld during
the period of suspension without pay if the teacher is
reinstated,

Sec. 21.113. APPEALS.

(a) Provides for challenge to the board s action of discharge
during the year or suspension without pay through an appeal to
the commissioner of education or through a lawsuit in a
district court of any county in which the district is located.

(b) Allows a teacher to appeal to the commissioner for
discharge under other circumstances or return to probationary
status.

Sec. 21.114. RESIGNATIONS.

(a) Requires teachers to file a written resignation with the
board of trustees not later than August 1, preceding the end
of the school year that the resignation is to be effective.

(b) Provides for the teacher to resign with the consent of the
board of trustees at any other time.

(c) Provides that any teacher who fails to comply with
conditions (a) or (b) will be ineligible for employment at
another district for the term of contract period.

Sec. 21.115.-21.150. (Reserved for expansion).

SUBCHAPTER D. TERM CONTRACTS

Sec. 21.151. EMPLOYMENT POLICIES.

(a) Requires a board of trustees to provide for written
evaluation of each educator at annual or more frequent
intervals. These evaluations must be considered prior to any
decision to nonrenew if the evaluations are relevant to the
reason for the board s action.

(b) Requires inclusion of grounds for nonrenewal in the
employment policies.

(c) Provides for a severance pay policy if the board of
trustees elects it. Outlines the provisions and conditions of
severance pay. Relieves board of requirement to state reasons
for nonrenewal and provide a hearing and appeal if severance
policy is adopted.

Sec. 21.152. REQUIRED CONTRACT.

(a) Requires each educator to be employed under a written
contract complying with this chapter.

(b) Allows other contractual provisions.

(d) Requires board to provide each educator a copy of his
contract and employment policies.

(e) States there is no property right in a contract beyond
its terms.

Sec. 21.153. TERM OF CONTRACT. Term is not to exceed 5 school
years.

Sec. 21.154. INITIAL PROBATIONARY STATUS.

(a) Requires probationary status during first two years of
employment with the school district and this must be included
in the contract. The board can require a third year on
probationary status if it needs an another year to evaluate
educator s performance.

(b) Allows probationary status to be required of an
administrator.

Sec. 21.155. RETURN TO PROBATIONARY STATUS.

(a) Authorizes a superintendent to return an educator to
probationary status after initial probationary period has
expired. Requires written notice with statement of reasons be
provided to the educator. Allows for hearing before the board
of trustees. Decision is final and nonappealable.

(b) Requires notice and hearing if board decides to nonrenew
the contract of an educator returned to probationary status.

Sec. 21.156. RESIGNATION.

(a) Requires written resignation to be filed not later than
45 days before beginning of the following school year.

(b) Allows an educator to resign at any time with board s
consent.

Sec. 21.157. NOTICE OF CONTRACT RENEWAL OR NONRENEWAL.

(a) Requires the board to provide written notification to
educators not later than the 30th day before the last day of
instruction of the board s intent to renew contracts.

(b) Provides that the board s failure to comply with the
notice timeline above constitutes an election to employ the
educator for the following year in the same professional
capacity.

Sec. 21.158. TERMINATION OR SUSPENSION.

(a) Provides that the board can terminate a contract for good
cause or financial exigency that requires a reduction in
personnel.

(b) Provides that the board can suspend without pay through
the end of the school year pending discharge or in lieu of
terminating the educator.

(c) Authorizes back pay for the period of suspension for an
educator who is reinstated after being suspended without pay
pending discharge.

Sec. 21. 159. NOTICE AND REQUEST FOR HEARING.

(a) Requires board to provide written notification of
proposed action to the educator. It must include statement of
the reasons for the proposed action.

(b) Provides that the educator has 10 days from date of
notice to request a hearing.

Sec. 21.160. HEARING PROCEDURES.

(a) Requires hearing to be held no later than 30 days from
date of request.

(b) Provides that either the educator or the board can
request a hearing before a hearings examiner alone.
Otherwise, the hearing shall be held before the board of
trustees or a committee of the board, with or without the
assistance of a hearings examiner.

(d) Provides that the hearing is not subject to Chapter 2001
of the Government Code. Board can consider any evidence it
deems relevant and helpful in rendering a fair decision.
Allows for hearing to be recorded by certified shorthand
reporter.

(e) Sets out procedures for protecting the privacy of a child
witness.

Sec. 21.161. BURDEN OF PROOF. Requires district to prove its case
by preponderance of evidence.

Sec. 21.162. DECISION OF THE BOARD.

(a) Requires the board to rule on the evidence and on the
nonrenewal or termination at the conclusion of the hearing.
A ruling of a committee must be affirmed by action of the
whole board. Board is required to notify the parties of its
decision not later than 15 days after completion of the
hearing.

(b) Requires a hearings examiner to develop a record and
issue proposed findings of fact, conclusions of law and a
recommendation for the board not later that 15 days after
completion of the hearing. Board is required to schedule a
meeting to consider the recommendation not later than 15 days
after receiving it. Board may allow oral argument. Board may
not modify the proposed fact findings unless it determines
they are not supported by substantial evidence. Board can
accept, reject or modify the conclusions of law and the
recommended action. Board is required to provide written
notification of its decision within 5 days of its decision.

(c) Provides that the board and educator can agree to the
designation of hearing examiner to develop the record and
render a binding decision. This cannot be appealed to the
Commissioner.

Sec. 21.163. CERTIFICATION AND SELECTION OF HEARING EXAMINERS.

(a) Requires State Board of Education to establish
certification criteria for hearing examiners. Requires
hearings examiners to be licensed attorneys in this state.

(b) Provides for the Commissioner to certify hearing
examiners. Disqualifies certain persons from serving as a
hearings examiner.

(c) Requires the Commissioner to set hourly rates and to set
a maximum amount of compensation that a hearing examiner may
receive for a hearing.

(d) Requires Commissioner to maintain a list of certified
hearings examiners. Provides method for creating the list.

(e) Requires Commissioner to assign the hearing examiner
within reasonable proximity to the district.

(f) Provides for no prohibition against selection of any
other person to conduct the hearing upon agreement of all
parties.

Sec. 21.164. HEARINGS BEFORE HEARING EXAMINER.

(a) Sets out subpoena and other powers of the hearing
examiner. Requires the hearing to be held within the district
or at the regional service center.

(b) Allows depositions. Requires subpoenas of non-employees
only for good cause.

(d) Requires hearing examiner to issue decision within 15
days.

(e) Allows substitution of hearing examiner.

(f) Requires district to bear cost of hearing.

Sec. 21.165. APPEAL TO COMMISSIONER.

(a) Provides for appeal to the commissioner based on review
of the local record.

(b) Establishes timelines for filing the notice of appeal and
petition for review.

Sec. 21.166. DETERMINATION BY COMMISSIONER.

(a) Provides for the circumstances under which the
commissioner can substitute judgment for the board s decision
in nonrenewal.

(b) Provides for the circumstances under which the
commissioner can substitute judgment for the board s decision
in termination of employment.

(c) Provides for specific prohibition against reversal of the
board s decision based on a procedural error by either the
commissioner or a court, unless it led to an erroneous
decision by the board.

Sec. 21.167. EX PARTE COMMUNICATION PROHIBITED. Prohibits ex parte
contact with commissioner or agency staff involved in an appeal to
the commissioner.

Sec. 21.168. DECISION OF THE COMMISSIONER.

(a) Requires commissioner s decision to be in writing, and
allows fact findings and conclusions of law.

(b) Requires a commissioner s decision no later than 30 days
after deadline for filing a response to the petition for
review. If commissioner does not issue a decision, the
board s decision is final.

(c) Requires commissioner to maintain and index
commissioner s decisions together with the hearing examiner s
recommendations and decisions.

(d) Provides for the school district to recover from the
educator the costs of transcription of the local record if
board s decision is affirmed.

Sec. 21.169. JUDICIAL APPEALS.

(a) Allows for appeal to a district court in which the
district s central administrative offices are located or by
agreement to Travis County.

(b) States that the motion for rehearing is not required.

(c) Provides that the court is prohibited from reversal of
decision unless it is not supported by substantial evidence or
the commissioner s conclusions are erroneous.

Sec. 21.170. NONAPPLICABILITY OF SUBCHAPTER. This subchapter does
not apply to an educator under probationary or continuing contract
under Subchapter C.

Sec. 21.171-21.270. (Reserved for expansion).

SUBCHAPTER E. EDUCATOR APPRAISAL AND INCENTIVES

Sec. 21.271. RECOMMENDED APPRAISAL PROCESS AND PERFORMANCE
CRITERIA.

(a) Requires the commissioner to adopt a recommended appraisal
process and criteria for teachers which must include the
performance of the teachers' students.

(b) Requires the commissioner to be advised by teachers in
developing the process.

(c) Requires the appraisal process to provide for an appraiser
who is the teacher's supervisor and, under certain conditions,
others may conduct this appraisal.

(d) Requires the appraisal process to distinguish performance
by teacher skill and characteristic and to guarantee a
conference between the teacher and the appraiser.

Sec. 21.272. LOCAL ROLE.

(a) Allows districts to use the appraisal process developed by
the commissioner or a process developed by the district using
site based committees.

(b) Requires school districts to determine the number of
appraisers used.

(d) Allows a teacher to be given advance notice of an
appraisal but it is not required.

Sec. 21.273. APPRAISAL ON BASIS OF CLASSROOM TEACHING PERFORMANCE.
Provides for teachers to be appraised only on the basis classroom
teaching performance.

Sec. 21.274. APPRAISAL OF ADMINISTRATORS.

(a) Requires the commissioner to adopt an appraisal process
for administrators.

(b) Allows the commissioner to solicit the advice of teachers
and administrators.

(d) Requires the principal's appraisal to include academic
excellence indicators and the campus performance objectives.

Sec. 21.275. PRINCIPAL PERFORMANCE INCENTIVES.

(a) Requires the commissioner to design an evaluation system
to evaluate principals that includes PEIMS information and the
gain of students, but does not include subjective items.

(b) Requires the governor to appoint seven exemplary
principals to advise the commissioner about the evaluation
system and to serve until September 1, 1996.

(d) Provides for this section to expire August 31, 2001.

Sec. 21.276-21.300. (Reserved for expansion).

SUBCHAPTER F. DUTIES AND BENEFITS

Sec. 21.301. MINIMUM SERVICE REQUIRED.

(a) Sets a minimum length of contract between a school
district and educator.

(b) Requires 190 days of service under a 10-month contract,
210 days of service under an 11-month contract, and 230 days
of service under a 12-month contract.

(d) Requires each teacher to teach in the classroom not less
than four hours each school day.

Sec. 21.302. MINIMUM SALARY SCHEDULE.

(a) Requires that qualified school district personnel be paid
not less than the appropriate monthly base salary in
Subsection (c).

(b) Specifies advancement for each year of experience.

(d) Lists the positions entitled to the minimum monthly salary
in Subsection (c).

Sec. 21.303. CONSECUTIVE YEARS OF EXPERIENCE NOT REQUIRED. Directs
the placement of individuals on the minimum salary schedule
according to experience.

Sec. 21.304. SALARY OF TEACHER FORMERLY ON CAREER LADDER.

(a) Entitles teachers assigned to a career ladder level on
August 31, 1993, to a minimum salary equal to the teacher s
base salary plus the teacher s career ladder supplement in the
1992-1993 school year.

(b) Defines "base salary".

Sec. 21.305 PLANNING AND PREPARATION TIME.

(a) Entitles each classroom teacher to planning and
preparation time during the school week.

(b) Entitles each classroom teacher to the number of days of
teacher preparation prescribed in Section 25.081.

Sec. 21.306. DUTY-FREE LUNCH.

(a) Entitles each classroom teacher or full-time librarian to
a duty-free lunch period of at least 30 minutes.

(b) Prohibits implementation of section from lengthening the
school day.

(c) Provides an exception for not more than one day per week
if necessary. Requires the commissioner of education by rule
to prescribe guidelines for determining when exception
applies.

Sec. 21.307. DENIAL OF COMPENSATION BASED ON ABSENCE FOR RELIGIOUS
OBSERVANCE PROHIBITED. Prohibits a school district from denying an
educator a salary bonus or similar compensation given in whole or
in part on the basis of attendance because of the educator s
absence for observance of a holy day.

Sec. 21.308. REQUIRING OR COERCING EDUCATOR TO JOIN ORGANIZATIONS
OR TO REFRAIN FROM PARTICIPATING IN POLITICAL AFFAIRS PROHIBITED.

(a) Prohibits a school district board of trustees or employee
from directly or indirectly requiring or coercing an educator
to join a group, club, committee, organization, or
association.

(b) Prohibits a school district board of trustees or employee
from directly or indirectly coercing an educator to refrain
from participating in political affairs in the educator s
community, state, or nation.

Sec. 21.309. RIGHT TO JOIN OR NOT TO JOIN PROFESSIONAL
ASSOCIATION. Provides that Chapter 21 does not abridge the right of
an educator to join or refuse to join a professional association or
organization.

Sec. 21.310. LEAVE OF ABSENCE FOR TEMPORARY DISABILITY.

(a) Requires a school district to grant a leave of absence for
temporary disability to a full-time educator whose condition
interferes with the performance of regular duties.

(b) Requires request for leave of absence for temporary
disability to be made to the superintendent and to be
accompanied by a physician s statement

(c) Authorizes a board of trustees to adopt a policy for
placing an educator on leave of absence for temporary
disability without receiving a request from the educator.

(d) Requires an educator to notify the superintendent of the
desire to return to active duty not later than the 30th day
before the expected date of return. Requires that request be
accompanied by a physician s statement.

(e) Governs the assignment of an educator returning to active
duty.

(f) Governs the length of a leave of absence for temporary
disability and prohibits a maximum length of less than 180
days.

Sec. 21.311-21.350. (Reserved for expansion).

SUBCHAPTER G. STAFF DEVELOPMENT

Sec. 21.351. TEACHER PREPARATION AND STAFF DEVELOPMENT.

(a) Requires school districts to provide for not less than the
number of days of preparation and staff development required
by Sec. 25.081.

(b) Allows a district to reserve three hours of the first
preparation day each year for faculty meetings.

Sec. 21.352. STAFF DEVELOPMENT REQUIREMENTS.

(a) Requires staff development to follow minimum standards
developed by the commissioner and requires it to include
technology training and training in conflict resolution and
discipline.

(b) Requires three days of staff development to be campus
based.

Sec. 21.353. MANAGEMENT SKILLS AND PRACTICES.

(a) Requires districts to offer training for school
administrators in management skills.

(b) Requires school administrators to attend training in
management annually.

Sec. 21. 354. PROFESSIONAL DEVELOPMENT FOR CAMPUS ADMINISTRATORS.

(a) Allows districts to implement programs to assess
administrators in collaboration with service centers,
universities, and business.

(b) Allows assessments to be used only to develop an
individualized professional development plan.

(c) Requires an assessment profile to be based on multiple
assessments and use standards for administrators approved by
the agency and the National Policy Board for Educational
Administration.

(d) Allows professional development to include multiple
activities.

(e) Allows districts, service centers, universities and others
to collaborate to develop an assessment center.

(f) Allows campus administrators successfully completing the
assessment process, and who demonstrate proficiency, to be
presented a "Distinguished Campus Administrator" endorsement
and requires the process to be repeated every five years.

(g) Requires the cost of the assessment center to be shared
equally by the state, the employing district and the service
center.

(h) Requires the commissioner to report to the legislature on
each district specifying the number of administrators who have
completed the assessment process, who are involved in
professional development, who have demonstrated proficiency in
all areas, or who failed to participate.

Sec. 21.355. DEVELOPMENTAL LEAVES OF ABSENCE.

(a) Allows local boards to grant developmental leaves for
study, research, travel, etc., under certain conditions.

(b) Allows developmental leaves to be granted for one school
year for 1/2 salary or for 1/2 year for full salary.

CHAPTER 22. SCHOOL DISTRICT EMPLOYEES AND VOLUNTEERS

SUBCHAPTER A. RIGHTS, DUTIES, AND BENEFITS.

Sec. 22.001. SALARY DEDUCTIONS FOR PROFESSIONAL DUES.

(a) Authorizes school district employee to have professional
organization membership fees or dues withheld from salary.
Provides requirements for the method of making the request and
for information that must be supplied to the district.

(b) Governs the method by which the school district makes the
requested deductions. Requires district to make the
deductions until employee requests in writing that deductions
be discontinued.

Sec. 22.002. ASSIGNMENT, TRANSFER, OR PLEDGE OF COMPENSATION.

(a) Defines school employee."

(b) Governs enforceability of the a school employee s
assignment, pledge, or transfer, as security for indebtedness,
of any interest in or part of the employee s salary or wages.

(c) Requires that school district does not incur liability
for honoring an assignment, pledge, or transfer that satisfies
Subsection (b). Provides that authorized payments to an
assignee, pledge, or transferee constitute payments to or for
the account of the assignor, pledgor, or transferor. Limits
enforceability to the extent of salary due or that becomes due
during the assignor s employment as a school employee.

(d) Governs venue for a suit against the employer to enforce
an assignment, pledge, or transfer.

Sec. 22.003. MINIMUM PERSONAL LEAVE PROGRAM.

(a) Provides for a state minimum personal leave program.
Authorizes a school district to provide additional personal
leave.

(b) Authorizes leave for a teacher to recuperate from a
physical assault during the performance of duties. Authorizes
a district to change the assault leave status and to charge it
against accrued personal leave or against an employee s pay if
insufficient accrued leave is available. Sets out a maximum
time frame for availability of assault leave. Requires
coordination of assault leave policy benefits with workers
comp benefits.

Sec. 22.004. GROUP HEALTH BENEFITS FOR SCHOOL EMPLOYEES.

(a) Provides for coverage under a risk pool, a policy of
insurance or group contract through an insurer, or a health
maintenance organization. Defines the terms and requirements
of health coverage to be provided by the district to district
employees. Defines major medical treatment.

(b) Prohibits a district from contracting for coverage until
an audited financial statement showing the financial condition
of the contractor is presented.

(c) Requires presentation of an audited financial statement
from the insurer to the district prior to any issuance of
contract for coverage.

(d) Requires the financial statement to be in compliance with
rules adopted by the commissioner of insurance or state
auditor, as applicable.

Sec. 22.005. HEALTH CARE PLAN AND FUND.

(a) Authorizes the board of trustees to establish a health
care plan for district employees and their dependents.

(b) Requires the board to establish a fund to cover the costs
of such a health care plan. Defines the source of funds,
along with the distribution and uses of the funds.

(c) Governs the terms for amending or cancelling the health
care plan and for payment of any claims against the fund under
such circumstances.

Sec. 22.006-22.050. (Reserved for expansion).

SUBCHAPTER B. CIVIL IMMUNITY

Sec. 22.051. IMMUNITY FROM LIABILITY FOR PROFESSIONAL EMPLOYEES.

(a) Provides professional district employees with immunity
from personal liability for acting within the scope of their
duties.

(b) Precludes application of this section to operation of
motor vehicles.

Sec. 22.052. ADMINISTRATION OF MEDICATION BY SCHOOL DISTRICT
EMPLOYEES OR VOLUNTEER PROFESSIONALS; IMMUNITY FROM LIABILITY.

(a) Sets out the conditions under which the district, board
of trustees and employees are immune from liability from
damages arising from the administration of medication. The
district must adopt a policy on this matter as a prerequisite.

(b) Authorizes a district to allow a licensed physician or
registered nurse who provides volunteer services to administer
medication to a student. The district must provide liability
insurance to such physician or nurse.

Sec. 22.053. SCHOOL DISTRICT VOLUNTEERS.

(a) Extends to volunteers the same civil liability immunity
afforded to employees.

(b) Defines the term volunteer".

Sec. 22.054. LIABILITY OF CERTAIN INSTITUTIONS OF HIGHER EDUCATION.

(a) Provides immunity to a private or independent institution
of higher education from the acts of an associated person
arising in the course and scope of their duties as volunteers
in a district school.

(b) Authorizes a district to pay costs for attorney services
for the defense of a private institution or independent
institution of higher education, and sets out the conditions
under which this can be done.

Sec. 22.055. FRIVOLOUS SUIT AGAINST EMPLOYEE. Authorizes award of
costs and reasonable attorney s fees to a district employee to the
same extent allowed for district or district officers under Sec.
11.111.

Sec. 22.056-22.080. (Reserved for expansion).

SUBCHAPTER C. CRIMINAL HISTORY RECORDS

Sec. 22.081. DEFINITION. Defines "private school".

Sec. 22.082. ACCESS TO CRIMINAL HISTORY RECORDS BY STATE BOARD OF
EDUCATION. Authorizes State Board of Education to obtain from any
law enforcement or criminal justice agency all criminal history
information relating to an applicant or holder of a certificate
issued under Subchapter B, Chapter 21.

Sec. 22.083. ACCESS TO CRIMINAL HISTORY RECORDS BY LOCAL AND
REGIONAL EDUCATION AUTHORITIES.

(a) Authorizes a school district, private school, regional
education service center, or cooperative to obtain criminal
history record information on a person it intends to employ in
any capacity.

(b) Authorizes a school district, private school, regional
education service center, or cooperative to obtain criminal
history record information on a current employee or volunteer,
or on an employee or applicant for employment who contracts
with the entity to provide services if the employee or
applicant has or will have continuing duties related to the
contracted services. Criminal history information can also be
obtained on an employee or prospective contractor if the
duties are or will be performed on school property or another
location where students are regularly present.

(c) Requires the superintendent of a district or the director
of a private school, regional education service center or
cooperative to promptly notify the State Board of Education in
writing if the person obtains or has knowledge showing that an
applicant for or holder of a certificate has a reported
criminal history.

Sec. 22.084. ACCESS TO CRIMINAL HISTORY RECORDS OF SCHOOL BUS
DRIVERS.

(a) Authorizes a school district, private school, regional
education service center, or cooperative to obtain criminal
history record information on a current bus driver it employs
or on persons that it intends to employ as a bus driver.

(b) Requires anyone who contracts with a school district,
private school, regional education service center, or
cooperative for transportation services to provide the
requisite identifying data to obtain criminal history
information on each person described in (a) above. Also
requires the school district, private school, regional
education service center, or cooperative to notify the chief
personnel office of the person with whom the entity has
contracted of any information that a person has been convicted
of felony or misdemeanor involving moral turpitude. If such
notice is given, the contractor may not employ the person with
such criminal history without the permission of the board of
trustees or the chief executive office of the school or
cooperative.

Sec. 22.085 DISCHARGE OF EMPLOYEES CONVICTED OF OFFENSES.
Authorizes a school district, private school, regional education
service center, or cooperative to discharge an employee convicted
of a felony or misdemeanor involving moral turpitude if the
employee did not disclose it to the State Board of Education or the
district or the school.

Sec. 22.086. LIABILITY FOR REPORTING OFFENSES. Absolves the State
Board of Education, a school district, private school, regional
education service center, or cooperative from civil or criminal
liability for making a report required under this subchapter.

Sec. 22.087-22.900. (Reserved for Expansion).

SUBCHAPTER Z. MISCELLANEOUS PROVISIONS

Sec. 22.901. UNLAWFUL INQUIRY INTO RELIGIOUS AFFILIATION.

(a) Prohibits public school employees from asking about
religious affiliation of anyone applying for employment in a
public school.

(b) Violation of this prohibition has a civil penalty of not
less than $100 nor more than $500. Suit may be brought in
either county of the plaintiff or of the defendant s
residence.

CHAPTERS 23 AND 24

(Reserved for Expansion)

SUBTITLE E. STUDENTS AND PARENTS

CHAPTER 25. ADMISSION, TRANSFER, AND ATTENDANCE

SUBCHAPTER A. ADMISSION AND ENROLLMENT

Sec. 25.001. ADMISSION.

(a) Describes persons entitled to the benefits of the
available school fund.

(b) Describes persons that a board of trustees is required
to admit to the public schools of the district without
tuition.

(c) Authorizes a board of trustees or its designee to require
evidence that a person is eligible for admission at the time
the board or its designee considers the person s application
for admission.

(d) Limits the circumstances under which a person under the
age of 18 years may establish a residence apart from the
person s parent, guardian, or other person having lawful
control under a court order for the purpose of attending
public schools. Authorizes board of trustees to determine if
an applicant for admission is a resident of the school
district for purposes of attending the public school and to
adopt reasonable guidelines for making a determination as
necessary to protect the best interest of students.

(e) Governs admission and participation in activities
sponsored by the school district of a child placed in foster
care by an agency of the state or by a political subdivision.

(f) Allows a high school student placed in temporary foster
care by the Texas Department of Human Services to complete
high school at the school in which the student was enrolled at
the time of the placement without payment of tuition.

(g) Prescribes the amount for which a person is liable to a
district if the person knowingly falsifies information on a
form required for enrollment of a student who is ineligible
for enrollment and the student is enrolled on the basis of the
false information.

(h) Authorizes a school district to include on an enrollment
form notice of the penalties for falsifying information on
the form.

Sec. 25.002. REQUIREMENTS FOR ENROLLMENT.

(a) Lists information that must be provided to enroll a child
in a public school and specifies the time period for providing
the information.

(b) Requires a school to notify the missing children and
missing persons information clearinghouse if a child enrolls
under a name other than the name appearing in the identifying
document or records. Provides that the notice is confidential
and may be released only to a law enforcement agency.

(c) Requires a school district to notify the local municipal
police department or county sheriff s department if
information is not provided as required by Subsection (a) and
request a determination of whether the child has been reported
as missing.

(d) Requires a school district, when accepting a child for
enrollment, to notify the person enrolling the child that
presenting a false document or false records is an offense and
subjects the person to liability.

(e) Creates an offense for the failure of a person enrolling
a child to furnish an identifying document or record relating
to the child on the request of a law enforcement agency
conducting an investigation in response to a notification.
Designates the offense as a Class B misdemeanor.

Sec. 25.003. TUITION FOR CERTAIN CHILDREN FROM OTHER STATES.

(a) Requires a child-care institution to pay tuition for a
child residing at the institution whose maintenance expenses
are paid in whole or in part by another state.

(b) Requires the tuition charge to be submitted to the
commissioner of education for approval.

Sec. 25.004. TUITION FOR CERTAIN MILITARY DEPENDENTS. Authorizes
a school district to charge tuition for the attendance of a student
who is not domiciled in this state and resides in military housing
that is exempt from taxation by the district. Limits the rate of
the tuition.

Sec. 25.005-25.030. (Reserved for expansion).

SUBCHAPTER B. ASSIGNMENTS AND TRANSFERS

Sec. 25.031. ASSIGNMENTS AND TRANSFERS IN DISCRETION OF GOVERNING
BOARD. Authorizes board of trustees of a school district or the
board of county school trustees or a school employee designated by
the board to assign and transfer a student from one school facility
or classroom to another within its jurisdiction.

Sec. 25.032. BASIS FOR ASSIGNMENT OR TRANSFER. Requires an
assignment or transfer of a student to be made on an individual
basis. Prohibits the consideration of any matter related to a
student s national origin or ancestral language.

Sec. 25.033. ASSIGNMENT OR TRANSFER ON PETITION OF PARENT.
Authorizes a parent or person standing in parental relation by
petition in writing to request an assignment or transfer or to file
objections to an assignment.

Sec. 25.034. HEARING; ACTION ON PETITION; APPEAL.

(a) Prescribes the time period within which a board is
required to act on a petition submitted under Section 25.033.

(b) Requires that a hearing requested on the petition be
conducted in compliance with this section.

(d) Authorizes board to investigate as to the objection or
request, examine any student involved, and employ agents for
the purpose of examinations and investigations.

(e) Requires board to grant request unless there is a
reasonable basis to deny request. Provides that the decision
of the board is final unless the student, or the parent,
guardian, or custodian of the student as next friend, files
exception to the decision of the board as constituting a
denial of a right of the student guaranteed under the United
States Constitution.

(f) Authorizes board to reconsider its decision if an
exception is filed under Subsection (e). Provides that the
exception is considered overruled if the board does not rule
on the exception before the 16th day after the date of the
filing. Authorizes the filing of an appeal of a board s
decision to overrule an exception in the district court of the
county in which the board is located. Requires that the
petition be filed not later than the 30th day after the date
of the board s final decision and state the facts relevant to
the alleged denial of constitutional rights.

Sec. 25.035. TRANSFERS BETWEEN DISTRICTS OR COUNTIES. Authorizes
boards of adjoining districts or counties by agreement to arrange
for the transfer and assignment of a student from the jurisdiction
of one board to that of another and to the transfer of school funds
or other payments proportionate to the transfer of attendance.

Sec. 25.036. TRANSFER OF STUDENT.

(a) Prescribes the conditions for the transfer of a child from
the child s school district of resident to another district.

(b) Requires a transfer agreement to be filed and preserved
as a receiving district record for audit purposes of the Texas
Education Agency.

Sec. 25.037. TRANSFER OF STATE FUNDS. Provides for the transfer
of the available school fund apportionment on the transfer of a
child and prescribes the method of counting the attendance of the
child for purposes of computing allotments under the Foundation
School Program.

Sec. 25.038. TUITION FEE FOR TRANSFER STUDENTS. Authorizes a
school district to charge tuition for a transfer student and
governs the amount that may be charged.

Sec. 25.039. CONTRACTS AND TUITION FOR EDUCATION OUTSIDE DISTRICT.

(a) Authorizes a school district that does not offer each
grade level from kindergarten through grade 12 to provide by
contract for resident students at grade levels not offered by
the district to be educated at those grade levels in one or
more other districts. Requires that the districts agree in
the contract to the transfer of school funds or other payments
proportionate to the transfer of attendance.

(b) Requires a school district to pay tuition to any district
with which it has a contract under this section for each
resident student attending the other district. Allows the
amount to exceed the amount provided by Section 25.038 if the
district of residence finds the excess payment to be in the
best interest of the district s educational program.

(c) Provides that a district is not required to pay tuition
to a district with which it has not contracted for the
attendance of a student at a grade level for which the
district has a contract with another district.

(d) Limits the period of a contract to five years.

Sec. 25.040. TRANSFER TO DISTRICT OF BORDERING STATE.

(a) Authorizes the board of trustees of a district to agree
to the transfer of state and county available school funds and
the payment of tuition to a school district of a contiguous
state that is situated on the state border for a student
entitled to attend the school district of the contiguous
state.

(b) Requires that an arrangement under Subsection (a) be
approved by the county superintendent and the county school
trustees.

Sec. 25.041. TRANSFER OF CHILDREN OR WARDS OF EMPLOYEES OF STATE
SCHOOLS. Authorizes the attendance of the child or ward of a
resident employee of a state school for the mentally retarded in a
district adjacent to the state school without charge to the child s
or ward s parents or guardian. Requires any tuition to be paid by
the state school.

Sec. 25.042. TRANSFER OF CHILDREN OF EMPLOYEES OF TEXAS YOUTH
COMMISSION FACILITIES. Authorizes the attendance of a child of an
employee of a Texas Youth Commission facility in a school district
adjacent to the district in which the student resides without
charge to the child s parents or guardian. Requires any tuition to
be paid by the district from which the student transfers.

Sec. 25.043-25.080. (Reserved for expansion).

SUBCHAPTER C. OPERATION OF SCHOOLS AND SCHOOL ATTENDANCE

Section 25.081. OPERATION OF SCHOOLS.

(a) Provides that each district must operate at least 180
days of instruction for students, three days of preparation
for teachers, and 49 hours of staff development.

(b) Grants commissioner authority to approve the operation of
schools for less than the number of days required in case a
calamity causes the closing of schools.

25.082. SCHOOL DAY. A school day shall be at least seven hours,
including intermissions and recesses.

25.083. YEAR-ROUND SYSTEM.

(a) Allows districts to operate year-round, on either single-track or multi-track calendar. Adds provisions that number of
hours of staff development, testing dates, and data reporting
may be modified. Adds a provision that allows students to
remain eligible to participate in extra-curricular activities
when the students' calendar tracks are not in session.

(b) Provides that state funding levels are not impacted by
year-round operation.

25.084. COMPULSORY SCHOOL ATTENDANCE.

(a) Requires students to attend school for the entire period
of instruction.

(b) Requires that children who are at least six, or who are
younger than six but who have already enrolled in first grade,
and who have not complete the academic year in which the
student became 17 years of age, attend school.

(d) Requires that a student must attend an extended-year
program for which the student is eligible, if a student has
been identified as unlikely to be promoted to the next grade
level.

Sec. 25.085. EXEMPTIONS.

(a) Outlines situations in which students are exempt from
compulsory school attendance.

(b) Obligates a district to provide and free appropriate
public education to a child with a disability.

Sec. 25.086. EXCUSED ABSENCES.

(a) Allows a teacher, principal, or superintendent to excuse
a student's temporary absence.

(b) Allows students to be excused from attending school for
the purpose of observing religious holy days if a written
request to be excused is submitted.

Sec. 25.087. SCHOOL ATTENDANCE OFFICER. Grants the district the
power to appoint attendance officer(s).

Sec. 25.088. POWERS AND DUTIES OF ATTENDANCE OFFICER.

(a) Delineates the powers and duties of attendance officers

(b) Prohibits attendance officers from entering private
residences without permission except to serve a lawful notice
regarding absences from school.

Sec. 25.089. MINIMUM ATTENDANCE FOR CLASS CREDIT.

(a) Requires students to be in attendance for at least 90
percent of the days a class is offered in order to receive
credit for the class.

(b) Requires the board to appoint at least one attendance
committee that hears petitions from students who have attended
less than 90 percent of a class and who seek credit for the
class. Grants the board the authority to determine what
constitutes extenuating circumstances and to establish
policies for allowing students to make up work missed because
of absences.

(d) Gives students permission to appeal the decision of the
attendance committee.

Sec. 25.090. THWARTING COMPULSORY ATTENDANCE LAW.

(a) Requires the district to warn parents in writing that
student attendance is required.

(b) States that a parent commits an offense if, after
notification, student attendance does not improve

(d) Requires the court to give preference to the hearing on
this complaint.

(e) Classifies this offense as a Class C misdemeanor.

(f) Designates the process foe depositing fines under this
subchapter.

(g) Allows attendance records to be presented in court.

(h) Allows a court to require parents to attend classes upon
conviction of an offense.

(i) Defines "parent".

Sec. 25.091. FAILURE TO ATTEND SCHOOL.

(a) Designates the circumstances under which a student
commits an offense for failure to attend school.

(b) Provides that prosecution for this offense may in the
justice court for the precinct in which the child resides.

(d) Allows for a minor's conviction to be expunged upon
attaining the age of 18.

(e) Provides that application for a conviction to be expunged
shall contain the applicant's sworn statement that the person
was not convicted of any violation of this section other than
the one the person seeks to have expunged.

(f) Allows the court to expunge the file and provides that
the applicant shall be released from all disabilities
resulting from the conviction.

Sec. 25.092. WARNING NOTICE.

(a) Requires that a school district notify a student's parent
in writing if, in a six month period, the student has been
absent without an excuse five times for any part of the day.

(b) Provides that notice is not required if the student is a
party to a juvenile court proceeding for conduct described by
Section 51.03 (b)(2) of the Family Code.

(d) Defines "parent".

Sec. 25.093-25.110. (Reserved for expansion).

SUBCHAPTER D. STUDENT/TEACHER RATIOS; CLASS SIZE

Sec. 25.111. STUDENT/TEACHER RATIOS. Provides that except as
provided by Section 25.112, a district shall employ one certified
teacher for every 20 students in average daily attendance.

Sec. 25.112 CLASS SIZE

(a) Provides that a school district may not enroll more than
22 students in grades kindergarten through fourth grade.

(b) Requires a school district to notify the commissioner in
writing if the school district is claiming an exemption from
the class size limitation.

(c) Provides that the district consider the subject to be
taught, the teaching methodology and any need for specific
instruction when determining the number of students to enroll
in a class.

(d) Provides the commissioner to allow for exemptions to
districts from class size limitations because of undue
hardship on the district.

Sec. 25.113-25.900. (Reserved for expansion).

SUBCHAPTER Z. MISCELLANEOUS PROVISIONS RELATING TO STUDENTS

Sec. 25.901. EXERCISE OF CONSTITUTIONAL RIGHT TO PRAY. Grants a
public school student the right to individually, voluntarily, and
silently pray or meditate in school in a manner that does not
disrupt the instructional or other activities of the school.
Prohibits a person from requiring, encouraging, or coercing a
student to engage in or refrain from such prayer or meditation
during a school activity.

CHAPTER 26. PARENTAL RIGHTS.

Sec. 26.001. PURPOSE.

(a) Requires that parents be included as partners in the
education of their children and in the creation and
implementation of educational programs for their children.

(b) Provides that the rights listed in this chapter are not
exclusive and that this chapter does not limit a parent's
rights under other law.

(c) States that parental rights are to be given the broadest
legal interpretation possible and are subject only to the
district's legitimate operational concerns and to concerns for
the health and safety of the child.

(d) States that no one, including the board of trustees,
administrator, educator, or any other person, may limit
parental rights unless otherwise provided by law.

(e) States that a board of trustees is responsible for
protecting the rights of parents and that the board must
provide due process to a parent who alleges that his or her
rights have been denied. Gives the board of trustees broad
authority in connection with this duty.

(f) Requires each board of trustees, in order to promote
parental involvement in school activities, to cooperate in the
establishment of ongoing operations of at least one parent-teacher organization at each school in the district.

Sec. 26.002. DEFINITION. Defines "parent".

Sec. 26.003. RIGHTS CONCERNING ACADEMIC PROGRAMS.

(a) Lists the rights a parent is entitled to in regard to the
types of academic programs in which his or her child is
enrolled.

(b) States that a decision made by the board of trustees
concerning a request described in (a) is final and may not be
appealed.

Sec. 26.004. ACCESS TO STUDENT RECORDS. Provides parents access to
all written records of a school district concerning the parent's
child and lists the types of records that are to be made available
to the parent.

Sec. 26.005. NOTICE OF AND ACCESS TO STATE ASSESSMENTS.

(a) Entitles a parent to be notified of any state assessment
instrument to be administered to the parent's child and
provides a parent access to all state assessment instruments
taken by the parent's child after the administration of the
instrument.

(b) Defines "state assessment instrument".

Sec. 26.006. ACCESS TO TEACHING MATERIALS.

(a) Entitles a parent to review all teaching materials,
textbooks, and other teaching aids used in the classroom and
all tests administered to the parent's child.

(b) Allows the school to set reasonable hours for review.

Sec. 26.007. ACCESS TO BOARD MEETINGS.

(a) Allows parents access to any meeting held by the
district's board of trustees, except for closed meetings held
in compliance with Subchapters D and E, Chapter 551,
Government Code.

(b) Requires a school district board of trustees to hold their
meetings within the school district boundaries.

Sec. 26.008. RIGHT TO FULL INFORMATION CONCERNING STUDENT.

(a) Entitles a parent to all information regarding the school
activities of the parent's child, except as provided by
Section 38.004.

(b) States that any attempt by an educator to encourage or
coerce a child to withhold information from the child's parent
is grounds for discipline under Section 21.105 or 21.158.

Sec. 26.009. CONSENT REQUIRED FOR CERTAIN ACTIVITIES.

(a) Requires a school district employee to obtain written
consent from a parent before any psychological exam, test, or
treatment is conducted, unless the exam, test, or treatment is
required under Section 38.004, or before making or authorizing
a videotape to be made of a child or a child's voice if the
video tape is to be used for interrogating or disciplining the
child or for evaluating a teacher's performance.

(b) States that a school district employee does not need to
obtain parental consent before making a videotape or
authorizing the recording of the child's voice if the
videotape or voice recording are to be used only for safety
purposes or purposes related to cocurricular or
extracurricular activity.

Sec. 26.010. REMOVAL FROM SCHOOL ACTIVITY.

(a) Allows a parent to remove the parent's child from any
classroom or school activity that conflicts with the parent's
moral, religious, or ethical beliefs.

(b) Upon written request to the administrator of the campus
attended by the student, a parent or guardian to exempt the
parent's child from receiving instruction regarding a disease
if the instruction conflicts with the religious teachings of
a well-established church or denomination to which the parent
or child belong.

(c) States that this section does not exempt a child from
satisfying grade level or graduation requirements in a manner
acceptable to the school district and the agency.

Sec. 26.011. PUBLICATION OF RIGHTS. Requires a school district to
annually provide for each parent of a child enrolled in the
district information that describes the parents' rights; the
meeting place, time, address, and phone number of the district's
board of trustees; and instructions concerning procedures of how to
address the board of trustees.

Sec. 26.012. COMPLAINTS. Requires each board of trustees to adopt
a grievance procedure.

CHAPTER 27

(Reserved for Expansion)

SUBTITLE F. CURRICULUM, PROGRAMS, AND SERVICES

CHAPTER 28. COURSES OF STUDY; ADVANCEMENT

SUBCHAPTER A. ESSENTIAL ELEMENTS; CURRICULUM

Sec. 28.001 REQUIRED CURRICULUM.

(a) Provides for 12-subject, well-balanced curriculum and
requires each school district to offer the curriculum.

(b) Requires the State Board of Education to determine well-balanced curriculum in districts not offering the full Pre-K
through Grade 12 curriculum.

(c) Requires the State Board of Education to designate
essential elements of well-balanced curriculum. Requires
districts to provide instructions in those elements.

(d) Requires the State Board of Education to provide optional
subjects for unique needs. Allows the commissioner to vary
the curriculum.

(e) Allows the State Board of Education to require laboratory
instruction in secondary science and to require a certain
percentage of time in laboratory instruction.

(f) Requires schools to ensure that all children participate
actively in a balanced curriculum designed to meet individual
needs and encourages districts to exceed minimum requirements.

(g) Requires SBOE districts to foster continuation of
teaching United States and Texas history and the free
enterprise system and designates purpose of the curriculum.

(h) Requires the State Board of Education to write
implementing rules, however states that the board may not
adopt rules which designate the teaching methodology or
content of instructional time.

Sec. 28.002 LANGUAGE OF INSTRUCTION.

(a) Requires English to be basic language of instruction.

(b) Allows bilingual instruction necessary to ensure
reasonable proficiency in English.

Sec. 28.003-28.020. (Reserved for expansion).

SUBCHAPTER B. ADVANCEMENT, PLACEMENT, CREDIT, AND
ACADEMIC ACHIEVEMENT RECORD

Sec. 28.021. STUDENT ACHIEVEMENT.

(a) Provides that students may be promoted only on the basis
of academic achievement or demonstrated proficiency.

(b) Requires that in the case of dyslexic students, potential
for achievement or proficiency must be considered.

Sec. 28.022. NOTICE TO PARENT OF UNSATISFACTORY PERFORMANCE.

(a) Provides that a policy shall be adopted by each school
district relating to parental notification at least every six
weeks of unsatisfactory performance by their child.

(b) Requires that the notice provide for the signature of a
student's parent and be returned to the district.

(c) Stipulates that the policy does not apply to students who
are over 18 years of age, married, or have the disabilities of
minority removed for general purposes.

(d) Defines parent to include a person standing in parental
relation to a student.

Sec. 28.023. CREDIT BY EXAMINATION.

(a) Requires that school districts develop examinations for
acceleration, based on SBOE guidelines, for each primary
grade level and for credit for secondary school academic
courses.

(b) Requires that a school district give a primary school
student credit for a grade level and advance the student one
grade level on the basis of a board-approved examination under
certain conditions.

(c) Requires that a school district give a student in grade
six and above credit for a course if the student scores in the
90th percentile and above on a board-approved examination.

(d) Requires that a school district administer each
examination at least once per year.

Sec. 28.024. CREDIT FOR TEXAS ACADEMY OF LEADERSHIP IN THE
HUMANITIES. Requires that a school district grant up to two years
of credit for academic courses that are high school graduation
requirements and successfully completed at the Texas Academy of
Leadership in the Humanities.

Sec. 28.025. ACADEMIC ACHIEVEMENT RECORD.

(a) Requires that school districts report the academic
achievement record for students who complete the minimum,
advanced, or recommended high school program on a transcript
adopted by the State Board of Education.

(b) Requires that the State Board of Education adopt standards
for each high school program.

Sec. 28.026 - 28.050. (Reserved for expansion).

SUBCHAPTER C. ADVANCED PLACEMENT INCENTIVES

Sec. 28.051. DEFINITIONS. Defines "board", "college advanced
placement course", "college advanced placement test", "college
board", "international baccalaureate course", "international
baccalaureate examination", and "program".

Sec. 28.052. PROGRAM; PURPOSE.

(a) States the purpose of the program.

(b) Identifies the purpose of the awards and subsidies.

Sec. 28.053. TYPES OF AWARDS.

(a) Lists the awards provided campuses and students for scores
of three or better on Advanced Placement examinations or four
or better on International Baccalaureate examination.

(b) Lists the incentives professional training and awards to
teachers.

(d) Specifies the test score requirements for teachers to
participate in the bonus pool.

(e) Specifies the test score requirements for students to
receive reimbursement for their testing fee.

(f) Requires the commissioner to make necessary adjustments to
the sum and number of awards.

Sec. 28.054. SUBSIDIES FOR COLLEGE ADVANCED PLACEMENT TEST OR
INTERNATIONAL BACCALAUREATE EXAMINATION.

(a) Provides for a subsidy to students in financial need and
directs the board to adopt guidelines for determination of
financial need.

(b) Outlines procedures for students to obtain the subsidy.

Sec. 28.055. USE OF SCHOOL AWARDS; APPLICATION.

(a) Requires that a school give priority to academic
enhancement purposes when using awards under this section.

(b) Outlines procedures for obtaining those awards.

Sec. 28.056. APPLICATION FOR TEACHER AWARDS AND REIMBURSEMENTS.
Outlines method teachers must use to obtain their awards under this
subchapter.

Sec. 28.057. FUNDING.

(a) States that funding for this subchapter may come from
donations, grants or legislative appropriates and gives the
commissioner authority to solicit and receive such funds, and
requires the agency to account for the funds.

(b) Directs the agency to apply to the program any available
funds.

Sec. 28.058. CONFIDENTIALITY. States that individual student
information received by the commissioner for the program is
confidential.

CHAPTER 29. EDUCATIONAL PROGRAMS

SUBCHAPTER A. SPECIAL EDUCATION PROGRAM

Sec. 29.001. STATEWIDE PLAN. Requires the agency to develop a
state plan for the delivery of services to students with
disabilities.

Sec. 29.002. DEFINITION. Defines "special services".

Sec. 29.003. ELIGIBILITY CRITERIA.

(a) Directs the agency to establish specific eligibility
criteria for each disability.

(b) Establishes general age and disability criteria for
special education services.

Sec. 29.004. COMPREHENSIVE ASSESSMENT. Establishes a 60 day time
line for the completion of the comprehensive individual assessment.

Sec. 29.005. INDIVIDUALIZED EDUCATION PROGRAM.

(a) Establishes the IEP consistent with federal regulation.

(b) Identifies the process for the development of the IEP.

Sec. 29.006. CONTINUING ADVISORY COMMITTEE. Establishes that the
governor will appoint the members of the federally required
committee.

Sec. 29.007. COOPERATIVES. Establishes that districts may jointly
operate their special education programs.

Sec. 29.008. CONTRACTS FOR SERVICES; RESIDENTIAL PLACEMENT.

(a) Establishes the process that districts must follow to
contract for residential services.

(b) Establishes the funds to be used to pay for the contract.

(d) Holds the contract district responsible for the
implementation of the IEP.

Sec. 29.009. PUBLIC NOTICE CONCERNING PRESCHOOL PROGRAMS FOR
STUDENTS WITH DISABILITIES. Establishes the requirement that
districts must notify the community of program availability.

Sec. 29.010. COMPLIANCE.

(a) Establishes that the agency will monitor each district for
compliance with federal and state requirements.

(b) Requires that information from parents will be collected
during the monitoring process.

(d) Provides a framework for the removal of funds for
continual noncompliance.

Sec. 29.011. TRANSITION PLANNING.

(a) Directs TEA, TRC, TX MHMR, and others state agencies to
develop a memorandum of understanding (MOU) on transition
planning.

(b) Allows other state agencies to be added to the MOU.

(d) Directs the agency to coordinate the development of the
MOU.

(e) Establishes the development of an individual transition
plan, for each student with disabilities 16 years of age and
older, and its link to the individual education plan.

Sec. 29.012. INTERMEDIATE CARE FACILITIES.

(a) Directs TEA and TDHS to develop a MOU outlining the
respective responsibilities related to servicing students
residing in ICF/MR facilities.

(b) Requires the MOU be consistent with federal laws relating
to the state medical assistance program.

Sec. 29.013. NONEDUCATIONAL COMMUNITY-BASED SUPPORT SERVICES FOR
CERTAIN STUDENTS WITH DISABILITIES.

(a) Directs the agency to establish procedures and criteria to
access funding.

(b) Establishes student eligibility for the program.

(d) Provides that there will be no limit on the
responsibilities of other agencies to provide or pay the cost
for this service.

Sec. 29.014. PILOT PROGRAM FOR INCLUSION. Establishes pilot
programs for inclusion.

Sec. 29.015. SCHOOL DISTRICTS THAT PROVIDE EDUCATION SOLELY TO
STUDENTS CONFINED TO OR EDUCATED IN HOSPITALS.

(a) Establishes the districts to which this new section
applies.

(b) Allows districts to provide an extended year program to
these students.

(d) Establishes the basic allotment and weight for this new
state law.

Sec. 29.016-29.050. (Reserved for expansion).

SUBCHAPTER B. BILINGUAL EDUCATION AND SPECIAL LANGUAGE PROGRAMS

Sec. 29.051. STATE POLICY. Establishes bilingual education and
special language program.

Sec. 29.052. DEFINITIONS. Defines "student of limited English
proficiency"and "parent".

Sec. 29.053. ESTABLISHMENT OF BILINGUAL EDUCATION AND SPECIAL
LANGUAGE PROGRAMS.

(a) Establishes a procedure for identifying required programs.

(b) Requires identification of students within the first four
weeks of school.

(d) Defines programs for elementary, middle and high school.

Sec. 29.054. EXCEPTION.

(a) Allows exceptions to bilingual education.

(b) Outlines application criteria.

(d) Requires alternative instruction.

Sec. 29.055. PROGRAM CONTENT; METHOD OF INSTRUCTION.

(a) Provides for bilingual education as English and English as
a second language.

(b) Requires inclusion of student cultural backgrounds.

(d) Allows elective courses to be taught in a language other
than English.

(e) Provides for extra-curricular activities.

(f) Allows pilot programs to be established.

Sec. 29.056. ENROLLMENT OF STUDENTS IN PROGRAM.

(a) Describes how students shall be assessed, identified,
classified and placed with parental approval.

(b) Directs that tests be administered by trained personnel.

(d) Establishes parental rights.

(e) Requires that student records be documented.

(f) Makes provisions to protect the rights of disabled
students

(g) Outlines exit criteria for students.

(h) Requires follow-up of former students.

Sec. 29.057. FACILITIES; CLASSES.

(a) Directs students shall not be placed in separate
facilities.

(b) Directs students be placed with other students of the same
age and educational level.

Sec. 29.058. ENROLLMENT OF STUDENTS WHO DO NOT HAVE LIMITED
ENGLISH PROFICIENCY. Allows up to 40% of students who do not have
limited English proficiency may participate in bilingual education.

Sec. 29.059. COOPERATION AMONG DISTRICTS.

(a) Allows the establishment of cooperatives of multiple
districts.

(b) Requires tuition to be paid by the district sending the
student.

Sec. 29.060. PRESCHOOL, SUMMER SCHOOL, AND EXTENDED TIME PROGRAMS.

(a) Directs districts to offer prekindergarten and prefirst
grade 120 hour summer programs.

(b) Establishes programs are optional to parents of children
of limited English proficiency.

(d) Allows extended day or other programs.

(e) Prohibits programs from being a substitute for required
full-year instruction.

(f) Establishes funds may be provided for summer programs.

Sec. 29.061. BILINGUAL EDUCATION AND SPECIAL LANGUAGE PROGRAM
TEACHERS.

(a) Provides for bilingual education and English as a second
language teacher endorsements.

(b) Directs teachers must be certified for bilingual
education.

(d) Allows compensation for continuing education.

(e) Requires the Texas Higher Education Coordinating Board to
develop a comprehensive plan for addressing teacher supply
needs.

Sec. 29.062. COMPLIANCE. Requires the agency to monitor district
compliance with federal requirements relating to bilingual
education and special language programs and impose sanctions
required by federal law.

Sec. 29.063. LANGUAGE PROFICIENCY ASSESSMENT COMMITTEES.

(a) Requires Language Proficiency Assessment Committees.

(b) Outlines committee composition.

(d) Allows the agency to prescribe other duties.

Sec. 29.064. APPEALS. Authorizes parent appeals to the commissioner
on failure to comply with legal requirements or disagreement with
student placements.

Sec. 29.065-29.080. (Reserved for expansion).

SUBCHAPTER C. COMPENSATORY EDUCATION PROGRAMS

Sec. 29.081. COMPENSATORY AND REMEDIAL INSTRUCTION.

(a) Requires local education agencies (LEA) to design and
implement appropriate compensatory or remedial instructional
services for students.

(b) Requires LEAs to provide remedial instruction to students
enrolled in the district who have taken the secondary exit-level assessment and have not performed satisfactorily or who
are at risk of dropping out.

(c) Requires LEAs to evaluate and document the effectiveness
of the remedial instruction in reducing the dropout rate and
in increasing achievement in the categories of students listed
in Subsection (d).

(d) Defines at-risk students.

Sec. 29.082. OPTIONAL EXTENDED YEAR PROGRAM.

(a) Allows local districts the option of applying for funding
of an extended year program for students in K-8 identified as
unlikely to be promoted.

(b) Grants the commissioner rulemaking authority for the
administration of programs provided under this section.

(d) Requires teachers of each class provided under this
section to have completed successfully a program that provides
training to teach a class under this section and that meets
standards established by the commissioner.

(e) Directs a student who attends at least 85% of the program
days of a program under this section to be promoted to the
next grade level at the beginning of the next school year
unless a parent of the student presents the school principal
with a written request to retain the student.

(f) Requires an LEA that provides a program under this section
to adopt a policy designed to immediately reduce and
ultimately eliminate student retention.

(g) Directs an LEA to provide transportation for each student
who is required to attend a program under this section and who
is eligible for regular transportation services.

Sec. 29.083. TUTORIAL SERVICES.

(a) Allows each LEA to provide tutorial services at the
district's schools.

(b) Directs districts who offer tutorial programs to require
tutorial attendance of students scoring less than 70 in a
subject for a grade reporting period.

(c) Requires districts to provide transportation for students
who are required to attend tutorials and who are eligible for
regular transportation services.

Sec. 29.084. LIFE SKILLS PROGRAM FOR STUDENT PARENTS.

(a) Allows an LEA to provide an integrated program of
educational and support services for students who are pregnant
or who are parents.

(b) Details program elements to be included.

(c) Requires districts to solicit recommendations for
obtaining community support for the students and their
children from organizations for parents of students in the
district and from other community organizations.

(d) Allows an LEA to operate cooperative programs under this
section.

Sec. 29.085-29.120. (Reserved for expansion).

SUBCHAPTER D. EDUCATIONAL PROGRAMS FOR GIFTED AND TALENTED
STUDENTS

Sec. 29.121. DEFINITION. Defines "gifted and talented".

Sec. 29.122. ESTABLISHMENT. Requires school districts to adopt a
process for identifying and serving gifted students that is based
on the criteria established by State Board of Education.

Sec. 29.123. STATE PLAN; ASSISTANCE. Requires the State Board of
Education to adopt and periodically update a state plan for the
education of gifted and talented students.

Sec. 29.124-29.150. (Reserved for expansion).

SUBCHAPTER E. KINDERGARTEN AND PREKINDERGARTEN PROGRAMS

Sec. 29.151. FREE KINDERGARTEN. Requires school districts to
provide kindergarten to children who are at least five years of age
on September 1 of the school year.

Sec. 29.152. OPERATION OF KINDERGARTENS ON HALF-DAY OR FULL-DAY
BASIS. Allows kindergartens to be operated on a half-day or a
full-day basis at the option of the board of trustees of the school
district.

Sec. 29.153. PREKINDERGARTEN.

(a) Requires a school district to offer prekindergarten
classes if the district identifies 15 or more eligible
children who are at least four years of age. Permits a school
district to offer prekindergarten classes if the district
identifies 15 or more eligible children who are at least three
years of age.

(b) Defines children eligible for enrollment in a
prekindergarten class as at least three years of age and is
unable to speak and comprehend the English language;
educationally disadvantaged; or homeless.

(c) Specifies that prekindergarten shall operate on a half-day basis and provides for transportation funding if
transportation is provided to children.

(d) Allows the commissioner to exempt a district from
providing prekindergarten if the district would be required to
construct classroom facilities.

(e) Requires that each school district notify the public of
the availability of the class in English and Spanish.

(f) Requires that prekindergarten programs be designed to
develop skills necessary for success in the regular school
curriculum.

(g) Requires compliance with the applicable child care
licensing standards adopted by the Texas Department of Human
Services, if a district contracts with a private entity for
the operation of the pre-K program.

Sec. 29.154. EVALUATION OF PREKINDERGARTEN PROGRAMS. Requires the
commissioner of education, in consultation with the commissioner of
human services, to monitor and evaluate prekindergarten programs as
to their developmental appropriateness and the potential for
statewide coordination of prekindergarten programs with government-funded early childhood care and education programs such as child
care and federal Head Start programs. Requires the integration of
programs, staff, and program sites for prekindergarten, child-care,
and federal Head Start programs to the greatest extent possible.

Sec. 29.155-21.180. (Reserved for expansion).

SUBCHAPTER F. VOCATIONAL EDUCATION PROGRAM

Sec. 29.181. PUBLIC EDUCATION CAREER AND TECHNOLOGY EDUCATION
GOALS. Provides that each public school student shall master the
basic skills and knowledge necessary for managing the dual roles of
family member and wage earner, and gaining entry-level employment
in a high-skill, high-wage job or entering post-secondary
education.

Sec. 29.182 STATE PLAN FOR VOCATIONAL EDUCATION.

a) Requires the agency to prepare an biennially update a state
plan for vocational education that sets forth objectives for
vocational education for the next biennium and long-term goals
for the following five years.

b) Requires the state plan to include procedures designed to
ensure that all secondary and postsecondary students can
participate in vocational education programs, that the state
complies with federal requirements; and that vocational
education is a part of the total education system of Texas.

Sec. 29.183 VOCATIONAL AND OTHER EDUCATIONAL PROGRAMS.

a) Specifies that school district trustees may conduct and
supervise vocational classes and other educational programs
for students and other persons of all ages and spend local
maintenance funds for the cost of those classes and programs.

b) Requires that, in developing a vocational program, the
school district trustees shall consider the state plan for
vocational education.

Sec. 29.184 CONTRACTS WITH OTHER SCHOOLS FOR VOCATIONAL CLASSES.

a) Specifies that a school district may contract with another
school district or with a public or private postsecondary
educational institution or trade or technical school to
provide vocational classes for students in the district.

b) Requires a student who attends vocational classes at
another school authorized in Subsection (a) be included in the
average daily attendance by the school district in which the
student is regularly enrolled.

Sec. 29.185. VOCATIONAL PROGRAM RULES. Directs the agency to
prescribe requirements for vocational-technical education in public
schools as necessary to comply with federal law.

Sec. 29.186-29.200. (Reserved for expansion).

SUBCHAPTER G. PUBLIC EDUCATION GRANT PROGRAM

Sec. 29.201. PARENTAL CHOICE. Authorizes a student to use a
public education grant to attend a district other than the district
in which the student resides that is chosen by the student s
parent.

Sec. 29.202. ELIGIBILITY. Establishes the eligibility
requirements for a public education grant.

Sec. 29.203. FINANCING.

(a) Includes the student in the average daily attendance of
the district in which the student resides. Requires the
district the student attends to report the student s
attendance to the district of residence. Authorizes
commissioner of education to adopt rules governing the report.

(b) Provides the amount of the grant. Provides that the grant
is the entitlement of the student, under the supervision of
the student s parent, guardian, or custodian. Provides that
the grant is not the entitlement of any school district and is
paid to a school district solely as a means of administrative
convenience.

(c) Provides that a school district chosen by the student s
parent may accept or reject the application but may not charge
tuition in addition to the grant. Prohibits the district from
charging the student tuition greater than the district s
average expenditure per student. Entitles the school district
in which the student resides to the remainder, if any, of the
grant.

(d) Requires the school district in which the student resides
to provide a student attending another district under this
subchapter with transportation free of charge to and from the
school that the student would otherwise attend.

Sec. 29.204-29.250. (Reserved for expansion).

SUBCHAPTER H. ADULT AND COMMUNITY EDUCATION PROGRAMS

Sec. 29.251. DEFINITIONS. Defines "adult education", "adult",
"community-based organization", "community education", and
"educationally disadvantaged adult".

Sec. 29.252. STATE ROLE IN ADULT AND COMMUNITY EDUCATION.
Designates the agency as the administrative entity for all state
and federal adult education funds and to provide adequate staffing
and develop guidelines and standards for adult education.

Sec. 29.253. PROVISION OF ADULT EDUCATION PROGRAMS. Expands
eligible applicants for funds beyond public schools to include
community-based organizations, correctional education agencies, and
non-profit entities.

Sec. 29.254. ADULT EDUCATION ADVISORY COMMITTEE. Authorizes the
establishment of a 21-member advisory committee.

Sec. 29.255. FUNDING.

a) Authorizes appropriation of funds for adult education.

b) Authorizes the agency, in conjunction with the Texas
Department of Commerce, to develop rules to administer skill
training programs for which each agency is responsible.

Sec. 29.256. REIMBURSEMENT FOR COMMUNITY EDUCATION SERVICES.

a) Allows that a school district that operates a community
education program may apply to the agency for reimbursement
for authorized costs.

b) Authorizes districts to be eligible for reimbursement if
they have achieved a level of community education services
prescribed by the agency.

c) Specifies that the cost of reimbursement be paid from the
school foundation fund.

d) Specifies that the legislature shall set a limit on the
amount of funds to be appropriated each year.

Sec. 29.257. COMMUNITY EDUCATION DEVELOPMENT PROJECTS.

a) Authorizes the appropriation of funds from the foundation
school fund. Encourages the agency to seek gifts, grants, or
other donations.

b) Establishes a community development account in the State
Treasury for the deposit of gifts, grants, and donations to be
administered by the agency.

c) Authorizes funding of projects up to three years at $50,000
for the first year, $35,000 for the second year, and $20,00
for the third year.

d) Authorizes the State Board of Education to develop
procedures for a competitive process to fund projects.

e) Specifies that applications for funding must include a
resolution from the local board, objectives, procedures for
achieving objectives, amount of funds requested, survey of
community needs, establishment of an advisory committee, use
of existing facilities, and a statement on how the project
will be funded after the third year.

f) Requires the agency to monitor and evaluate projects.

g) Specifies that the agency may suspend funding for projects
that have failed to satisfactorily implement their objectives.

h) Directs the State Board of Education to develop an
administrative process for the suspension of funding under
Subsection (g).

(i) Authorizes the State Board of Education to adopt rules
necessary to enforce this section.

(j) Authorizes the agency to use up to five percent of
available funds for administration.

Sec. 29.258-29.900. (Reserved for expansion).

SUBCHAPTER Z. MISCELLANEOUS PROGRAMS

Sec. 29.901. MILITARY INSTRUCTION.

(a) Outlines requirements of a local board of trustees for a
school district offering military instruction.

(b) Authorizes procedures for expenditures of available school
funds for military instruction.

Sec. 29.902. DRIVER EDUCATION.

a) Requires the agency to develop a program of organized
instruction in driver education and traffic safety for public
school students.

b) Requires the agency to establish standards for the
certification of professional and paraprofessional personnel
who conduct the programs in public schools.

CHAPTER 30. STATE AND REGIONAL PROGRAMS AND SERVICES

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 30.001. COORDINATION OF SERVICES TO CHILDREN WITH
DISABILITIES.

(a) Defines "children with disabilities".

(b) Provides for the development and implementation of a state
plan for children with disabilities in each region served by a
regional education service center.

(c) Provides for the allocation of funds to regional education
service centers or the use of funds by the commissioner to
implement this section.

Sec. 30.002. EDUCATION FOR CHILDREN WITH VISUAL IMPAIRMENTS.

(a) Provides for the development of a statewide plan for the
education of children with visual impairments that will ensure
the children have an opportunity for
achievement equal to the
opportunities afforded to their
peers with normal vision.

(b) Provides for agency assistance to school districts serving
children with visual impairments.

(c) Provides for provisions to be included in the
comprehensive statewide plan for the education of children
with visual impairment.

(d) Provides for cooperation, utilization and nonduplication
of resources among entities serving children with visual
impairments.

(e) Provides for an individualized educational program for
eligible blind or visually impaired students.

(f) Provides for the individualized educational program to
include reading and writing in braille and provisions relating
to incorporation of braille.

(g) Provides for a special supplemental allowance to be
distributed from the foundation school fund to school districts
or regional education service
centers for services provided
to eligible students.

Sec. 30.003. SUPPORT OF STUDENTS ENROLLED IN TEXAS SCHOOL FOR THE
BLIND AND VISUALLY IMPAIRED OR TEXAS SCHOOL FOR THE DEAF.

(a) Provides for the sharing of costs by school districts
responsible for providing appropriate special education
services to students enrolled in the
Texas School for the Blind and
Visually Impaired or the Texas
School for the Deaf.

(b) Provides a formula for calculating the district's share of
the cost for students admitted for certain lengths of time.

(c) Provides a formula for calculating the district's share of
the cost for students admitted for certain lengths of time.

(d) Provides for correct calculation and distribution of funds
to school districts and state institutions.

(e) Provides for the apportionment of funds from the state
available school fund to the Texas School for the Blind and
Visually Impaired or the Texas
School for the Deaf.

(f) Provides for the determination of the amount of funds to
be set aside in a separate account in the foundation school
fund and appropriated to schools for
educational purposes.

(g) Authorizes the State Board of Education to adopt rules to
implement this section.

Sec. 30.004. INFORMATION CONCERNING PROGRAMS.

(a) Provides for the providing of written information
concerning programs to each parent or other person having
lawful control of a
student.

(b) Authorizes the State Board of Education to adopt rules for
the implementation of this section.

Sec. 30.005-30.020. (Reserved for expansion).

SUBCHAPTER B. TEXAS SCHOOL FOR THE BLIND AND VISUALLY IMPAIRED

Sec. 30.021. PURPOSE OF TEXAS SCHOOL FOR THE BLIND AND VISUALLY
IMPAIRED.
(a) Sets forth students to whom the Texas School for the Blind
and Visually Impaired (TSBVI) is established to serve as a
special school in the continuum of
statewide alternative placements.

(b) Provides for the responsibility of the school district in
educating a student and a provision for the resolution of
disagreements involving the
education of the student.

(d) Requires the school to provide statewide services to
parents of students with visual impairments, local school
districts, educational service
centers, and other agencies
serving students with visual
impairments and multiple
disabilities, including
students who are deaf-blind.

(e) Requires the school to cooperate with all public and
private agencies and organizations serving students and
other persons with visual
impairments in the
planning, development,
and implementation of
effective educational and
rehabilitative service
delivery systems.

Sec. 30.022. GOVERNANCE OF THE TEXAS SCHOOL FOR THE BLIND AND
VISUALLY IMPAIRED.

(a) Provides for a nine-member board to be appointed by the
governor and confirmed by the senate. Prohibits a person from
serving simultaneously on the
school's governing board and the
board of the Texas Commission for
the Blind. Sets forth required
composition of the governing board
of TSBVI.

(b) Provides for terms of board members.

(d) Requires the board to organize and conduct itself in the
same manner as an independent school district board of trustees
to the extent that the organization does not
conflict with the board's responsibilities
relating to the status of the school as a
state agency.

(e) Requires the board to prepare or provide for preparation
of a biennial budget request for the school for presentation to
the legislature.

(f) Requires the governing board, prior to the beginning of
each fiscal year, to adopt a calendar for the school's operation
which provides for at least the
minimum number of days of
instruction, preparation, and
inservice training required by
Section 25.081.

(g) Authorizes an action of the board to be appealed to a
district court in Travis County. Authorizes an action of the
board related to a dismissal
during the term of a
professional contract or a
nonrenewal of a professional
contract to be appealed to the
commissioner in the manner
prescribed by Chapter 21E.

(h) Provides for the exclusive jurisdiction of the board over
the physical assets of the school and the administration of
appropriations made for the benefit
of the school.

Sec. 30.023. SUPERINTENDENT OF THE TEXAS SCHOOL FOR THE BLIND AND
VISUALLY IMPAIRED.

(a) Provides for the appointment of the superintendent.

(b) Provides for qualifications of the superintendent.

(d) Provides that the superintendent salary is established by
the governing board of the school.

(e) Provides that the superintendent is the chief
administrative officer of the school. Requires the
superintendent to take
any necessary action to
carry out the functions
and purposes of the
school according to any
general policy the board
prescribes.

(f) Requires the superintendent, at least once each quarter,
to report to the board and the information to be included in
the report.

Sec. 30.024. EMPLOYEES OF THE TEXAS SCHOOL FOR THE BLIND AND
VISUALLY IMPAIRED.

(a) Defines "teacher."

(b) Provides for a contract to be entered into by the
governing board with an employee.

(c) Provides that the provisions of Sections 22.051, 22.052,
and 22.053, as well as other Federal and State statutes limiting
liability of employees, apply to
professional employees and
volunteers of the school.

(d) Authorizes the governing board to authorize the payment of
stipends to school employees that perform additional duties
outside their normal work schedule.

(e) Sets forth the school's operating hours.

(f) Authorizes the school to hire employees to be paid on an
hourly basis to work as substitutes, however, an employee working
as a substitute for another employee
shall not be entitled to paid holidays or
other leave provided to state employees
under the General Appropriations Act.

Sec. 30.025. FUNDING OF TEXAS SCHOOL FOR THE BLIND AND VISUALLY
IMPAIRED. Requires the funding of TSBVI to consist of certain
monies and the school's share of the available school fund as
provided by Section 30.003(f).

Sec. 30.026. SUNSET PROVISION. Provides for the review and
possible abolishment of the governing board.

Sec. 30.027. LEASE OF CERTAIN PROPERTY OF TEXAS SCHOOL FOR THE
BLIND AND VISUALLY IMPAIRED.

(a) Provides for the leasing of real property to certain
private, nonprofit corporations.

(b) Provides for the determination of the lease.

(c) Provides for the General Land Office to negotiate the
terms of the lease, the location, and closing of the transaction.

(d) Proceeds from the real estate action shall be deposited to
the credit of the general
revenue fund.

Sec. 30.028-30.050. (Reserved for expansion).

SUBCHAPTER C. TEXAS SCHOOL FOR THE DEAF

Sec. 30.051. PURPOSE OF TEXAS SCHOOL FOR THE DEAF.

(a) Provides that the Texas School for the Deaf (TSD) is a
state agency established to provide educational services to
persons under 21 years of age and
younger as of the beginning of the
school year who are deaf or hard of
hearing. Sets forth provisions
required to be provided by the
school.

(b) Requires the school to serve as a primary statewide
resource center promoting excellence in education for students
who are deaf or hard of hearing
through research, training, and
demonstration projects.

(c) Requires the school to work in partnership with state,
regional, and local agencies to provide new or improved
programs or methods to serve
the needs of persons throughout
the state who are deaf or hard
of hearing.

Sec. 30.052. GOVERNANCE OF THE TEXAS SCHOOL FOR THE DEAF.

(a) Prohibits a person from serving simultaneously on the
school's governing board and the board of the Texas Commission
for the Deaf and Hearing Impaired.
Provides for the number and
composition of the board.

(b) Provides for the terms of board members.

(e) Requires the board to prepare or provide for preparation
of a biennial budget request for the school for presentation to
the legislature.

(f) Requires the governing board, prior to the beginning of
each fiscal year, to adopt a calendar for the school's operation.

(h) Provides for the exclusive jurisdiction of the board over
the physical assets of the school and the administration of
appropriations.

Sec. 30.053. SUPERINTENDENT OF THE TEXAS SCHOOL FOR THE DEAF.

(a) Requires the superintendent of TSD to be appointed by the
governing board of the school.

(b) Requires the superintendent to hold an advanced degree in
the field of education; have teaching and administrative
experience in programs serving
students who are deaf; and satisfy
any other requirements the governing
board of the school establishes.

(d) Provides for the establishment of the superintendents
salary.

(e) Provides that the superintendent is the chief
administrative officer of the school. Requires the
superintendent to take
any necessary and
appropriate action to
carry out the functions
and purposes of the
school according to any
general policy the board
prescribes.

(f) Authorizes the superintendent to provide directly to a
parent or guardian of a student written information regarding
availability of programs,
eligibility and admission
requirements, and the rights of
a student regarding admission
to the state institution and
appeal of an admission
decision.

Sec. 30.054. PRINTING AT THE TEXAS SCHOOL FOR THE DEAF.

(a) Authorizes the superintendent of a school, in addition to
any other area of curriculum the State Board of Education
requires TSD to offer, to require
that the art of printing, in all its
branches, be offered at the school.

(b) Authorizes the superintendent to authorize any public
printing for the state to be performed at TSD without regard to
any contract with a person for
public printing.

Sec. 30.055. EMPLOYEES OF THE TEXAS SCHOOL FOR THE DEAF.

(a) Defines "teacher."

(b) Authorizes the governing board of the school to enter into
an employment contract with any employee who provides, direct
and regular, or professional educational
services to students provided, however,
that any employment contract with a
teacher shall be subject to the
provisions of Chapter 21D. Sets forth
provisions relating to an employee under
contract pursuant to this subsection.

(c) Provides that, in addition to any other federal and state
statutes limiting the liability of employees at the school, the
provisions of Sections 22.051,
22.052, and 22.053,
respectively, apply to
professional employees and
volunteers of the school.

(d) Authorizes the governing board to authorize the payment of
stipends to school employees who perform additional duties
outside their normal work schedule.

(e) Sets forth the school's operating hours.

(f) Authorizes the school to hire employees to be paid on an
hourly basis to work as substitutes however, an employee working
as a substitute for another employee
shall not be entitled to paid holidays or
other leave provided to state employees
under the General Appropriations Act.

Sec. 30.056. FUNDING OF THE TEXAS SCHOOL FOR THE DEAF. Sets forth
funding provisions of TSD.

Sec. 30.057. ADMISSION TO TEXAS SCHOOL FOR THE DEAF.

(a) Requires TSD to provide services in accordance with
Section 30.051 to any eligible student.

(b) Authorizes the rules adopted under Subsection (a)(2)(B) to
address the respective responsibilities of a student's parent or
legal guardian, the school district in
which the student resides, and the
school.

Sec. 30.058. SUNSET PROVISION. Provides that the governing board is
subject to Chapter 325, Government Code and is subject to
abolishment if not continued in existence.

Sec. 30.059-30.080. (Reserved for expansion).

SUBCHAPTER D. REGIONAL DAY SCHOOLS FOR THE DEAF

Sec. 30.081. LEGISLATIVE INTENT CONCERNING REGIONAL DAY SCHOOLS FOR
THE DEAF. Provides for the intent in continuing Regional Day
Schools for the Deaf.

Sec. 30.082. DIRECTOR OF SERVICES. Provides for employment of a
Director of Services.

Sec. 30.083. STATEWIDE PLAN. Requires a statewide plan for students
who are deaf or hard of hearing. Provides for objectives and
provisions that the plan shall include.

Sec. 30.084. ESTABLISHMENT OF PROGRAMS. Requires the State Board of
Education to apportion the state into five regions and establish a
regional day school program for the deaf in each region.

Sec. 30.085. USE OF LOCAL RESOURCES. Provides for the use of local
resources.

Sec. 30.086. POWERS AND DUTIES OF AGENCY. Provides for the agency
to contract with organizations or individuals for certain services.

Sec. 30.087. FUNDING.

(a) Provides for funding of the education of students who are
deaf or hard of hearing and encourages certain entities to
assist in the education of these
students.

(b) Provides for the allocation of funds by the commissioner.

Sec. 30.088-30.100. (Reserved for expansion).

SUBCHAPTER E. TEXAS YOUTH COMMISSION FACILITIES

Sec. 30.101. PURPOSE. Provides that the purpose of this subchapter
is to provide the state available school fund apportionment to
children committed to the Texas Youth Commission for educational
services.

Sec. 30.102. ALLOCATION.

(a) Provides for the allocation of funds by the commissioner
to the Texas Youth Commission.

(b) Entitles a classroom teacher or full-time librarian
employed by the commissioner to receive as a minimum salary the
monthly salary rate specified
by Section 21.402 and provides
for limits on compensation.

CHAPTER 31. TEXTBOOKS

SUBCHAPTER A. GENERAL PROVISIONS

Section 31.001. FREE TEXTBOOKS.

(a) Requires that textbooks adopted by the State Board of
Education be furnished without cost to public school students.

(b) Requires and that adoption, purchase, distribution, and
free use of the textbooks be carried out in accordance with
this chapter.

Section 31.002. DEFINITIONS. Defines electronic textbook,"
publisher," textbook," and textbook equipment."

Section 31.003. RULES. Authorizes the State Board of Education to
adopt rules for the adoption, requisition, distribution, care, and
disposal of textbooks.

Section 31.004. PURCHASE WITH LOCAL FUNDS. Specifies that the
chapter does not limit the purchase of textbooks purchased or
licensed by the board of trustees of a school district with local
funds.

Sec. 31.005-31.020. (Reserved for expansion).

SUBCHAPTER B. STATE FUNDING, ADOPTION, AND PURCHASE

Section 31.021. STATE TEXTBOOK FUND.

(a) Provides for state textbook fund.

(b) Requires the State Board of Education to set aside an
amount from the available school fund for the purchase and
distribution of the textbooks for the following year based on
a report by the commissioner of education.

(c) Authorizes the State Board of Education to set aside
additional funds from the available school fund to meet
emergencies or necessities caused by unusual increases in
student attendance or by unusual and unforeseen expenses or
school conditions.

(d) Describes the specific purposes for which certain portions
of the appropriation to the state textbook fund can be used.

(e) Allows unspent money in the state textbook fund to remain
in the fund until spent; and does not lapse at the end of the
fiscal year.

(f) Specifies that all necessary expenses incurred under this
chapter are to paid from the state textbook fund on invoices
approved by the commissioner.

Section 31.022. ADOPTION CYCLE.

(a) Requires the State Board of Education to establish a six-year cycle for adopting textbooks other than electronic
textbooks and a cycle for adopting electronic textbooks that
does not exceed four years.

(b) Requires the State Board of Education to place each
subject in the curriculum under Section 28.001 on the adoption
cycles.

Section 31.023. TEXTBOOK LISTS.

(a) Requires the State Board of Education to adopt conforming
and non-conforming lists of textbooks other than electronic
and electronic textbooks for each subject and grade level.

(b) Specifies requirements for conforming and non-conforming
lists.

Section 31.024. TEXTBOOK REVIEW COMMITTEE; SUBMISSION BY
PUBLISHER.

(a) Requires the State Board of Education to establish
textbook review committees.

(b) Describes the responsibilities of publishers with regard
to the submission of textbooks.

(c) Describes the responsibilities of the textbook review
committee with regard to placement of textbooks on conforming
and non-conforming lists.

Section 31.025. ADOPTION BY STATE BOARD OF EDUCATION.

(a) Requires the State Board of Education to adopt textbooks
placed on the conforming and non-conforming lists by the
review committees or to remove textbooks placed on either
list.

(b) Requires the State Board of Education to provide the list
of adopted conforming and non-conforming textbooks to each
school district, including the reasons why textbooks are non-conforming.

Section 31.026. CONTRACT; PRICE.

(a) Requires the State Board of Education to execute contracts
for the purchase of textbooks and for the licensing of
electronic textbooks.

(b) Specifies that contracts require publishers to provide the
number of textbooks needed in the state for the duration of
the contract.

(c) Requires that, when applicable, the price or licensing
cost not exceed the cost of the lowest price paid by any other
state and that it remain fixed for the term of the contract.

Section 31.027. STORAGE AND DELIVERY.

(a) Requires publishers to maintain inventory of textbooks
through a depository in Texas.
(b) Authorizes the State Board of Education to adopt rules for
the storage and timely delivery of electronic textbooks to
Texas schools.

Section 31.028. INFORMATION TO SCHOOL DISTRICTS; SAMPLE COPIES.

(a) Requires publishers to provide information on adopted
textbooks and samples to school districts.

(b) Requires publishers to provide samples of adopted
textbooks to be maintained at regional education service
centers.

Section 31.029. SPECIAL TEXTBOOKS.

(a) Authorizes the State Board of Education to purchase
special textbooks for students and teachers who are blind or
visually impaired;

(b) Specifies the students for whom the special textbooks may
be made available; and

Sec. 31.030-31.100. (Reserved for expansion).

SUBCHAPTER C. SCHOOL DISTRICT RESPONSIBILITIES CONCERNING
TEXTBOOKS

Section 31.101. LOCAL ADOPTION.

(a) Requires each school district to select one textbook from
either the conforming or non-conforming list for each subject.

(b) Specifies ratios by which student and teacher editions of
textbook other than electronic textbooks are to be
distributed.

(c) Specifies that electronic textbooks are to be distributed
on the basis of equal access for each student enrolled in the
subject for which the electronic textbook is adopted.

Section 31.102. TITLE AND CUSTODY.

(a) Specifies that each textbook is the property of the state.

(b) Designates that subsection (a) applies to an electronic
textbook only to the extent of any applicable agreement.

(c) Specifies custodial responsibilities of school districts
with regard to textbooks and requires boards of trustees to
distribute textbooks to students in the most effective and
economical manner.

Section 31.103. TEXTBOOK REQUISITIONS.

(a) Specifies procedures for reporting of attendance.

(b) Specifies procedures by which school districts order
textbooks for the subsequent school year.

Section 31.104. DISTRIBUTION; HANDLING.

(a) Authorizes boards of trustees to delegate responsibility
for the requisition, ordering, and management of textbooks in
the district.

(b) Requires textbook numbering and specifies accountability
requirements.

(d) Requires reporting on the use, care, and condition of
textbooks if required by the board of trustees or the State
Board of Education.

Section 31.105. SALE OF TEXTBOOKS BY DISTRICT. Authorizes the
board of trustees to sell textbooks, other than electronic
textbooks, to a student or another school at the state contract
price, and to send the money from the sale to the commissioner as
required by the commissioner to be deposited into the state
textbook fund.

Sec. 31.106-31.150. (Reserved for expansion).

SUBCHAPTER D. DISPOSITION OF TEXTBOOKS

Section 31.151. DISPOSITION OF TEXTBOOKS.

(a) Authorizes the State Board of Education to adopt rules for
the disposition of textbooks, other than electronic textbooks,
that are no longer in acceptable condition or have been
discontinued.

(b) Provides for distribution of discontinued textbooks, other
than electronic textbooks.

CHAPTER 32. COMPUTERS AND COMPUTER-RELATED EQUIPMENT

SUBCHAPTER A. POWERS AND DUTIES OF STATE BOARD OF EDUCATION
RELATING TO ELECTRONIC INSTRUCTIONAL TECHNOLOGY
AND COMPUTER RELATED EQUIPMENT

Sec. 32.001 DEVELOPMENT OF LONG-RANGE PLAN.

(a) Requires the State Board of Education to develop a long-range plan for acquiring and using technology in the
educational system and distributing information on emerging
technology for use in public schools.

(b) Requires the State Board of Education to update the plan.

Sec. 32.002. AUTHORITY OF SCHOOL DISTRICT. Provides that a school
district is not required to acquire or use technology that has been
approved, selected, or contracted for by the State Board of
Education or the commissioner.

Sec. 32.003-32.030. (Reserved for expansion).

SUBCHAPTER B. STATEWIDE DEVELOPMENT OF TECHNOLOGY AND
TELECOMMUNICATIONS

Sec. 32.031 PURPOSE. Defines the purpose of technology use and
telecommunications for public education.

Sec. 32.032 ELECTRONIC INFORMATION SYSTEM.

(a) Requires the agency to establish and maintain an
electronic information transfer system.

(b) Authorizes the commissioner to contract with suppliers of
computer hardware, software, or communications equipment and
services.

Sec. 32.033 INTEGRATED TELECOMMUNICATIONS SYSTEM

(a) Requires the agency to maintain and expand the
telecommunication capabilities of school districts and
regional education services centers.

(b) Requires the board to conduct feasibility studies related
to telecommunications capabilities.

(c) Authorizes the commissioner to contract with public
broadcasting systems and other suppliers of telecommunications
equipment, programming, training and services.

(d) Requires the agency to give priority to school districts
with limited financial resources.

Sec. 32.034 CENTER FOR EDUCATIONAL TECHNOLOGY

(a) Authorizes the commissioner to enter into an interagency
contract with a public institution of higher education to
sponsor a center.

(b) Provides for the purpose of the center.

(c) Provides for the membership of the center. Requires the
State Board of Education to establish membership policies for
the center.

(d) Requires the board of directors of the center to be
appointed by the State Board of Education and defines the
membership of the board of directors.

(e) Requires the board of directors to employ a director for
the center; to establish priorities for the center's
activities; and to report annually to the State Board of
Education and the membership of the center.

(f) Provides that the director is responsible for the center's
activities.

Sec. 32.035 DEMONSTRATION PROGRAMS

(a) Requires the agency to establish demonstration programs
for technology and education.

(b) Encourages collaboration with other specified entities in
the programs.

Sec. 32.036 FEES. Allows the State Board of Education to
establish fees for any services provided under Chapter 32.

CHAPTER 33. SERVICE PROGRAMS AND EXTRACURRICULAR ACTIVITIES

SUBCHAPTER A. SCHOOL COUNSELORS AND COUNSELING PROGRAMS

Sec 33.001. APPLICABILITY OF SUBCHAPTER.

a) States that except as provided by Subchapter (b), this
subchapter applies only to districts receiving funds provided
by Section 42.152(i).

b) States that Section 33.005 applies to each school district.

Sec. 33.002. CERTIFIED COUNSELOR.

a) Requires districts that receive these funds to employ a
certified counselor for every 500 elementary school students.

b) Requires districts receiving funds with fewer that 500
elementary students to provide guidance and counseling
services through any of three possible options.

Sec. 33.003. PARENTAL INVOLVEMENT.

a) Allows schools to obtain written consent from parents to
participate in counseling program. The consent form must
include content of program and specific activities.

b) Requires each school, before implementing a comprehensive
guidance program, to annually conduct a parent's preview of
the program.

Sec. 33.004. DEVELOPMENTAL GUIDANCE AND COUNSELING PROGRAMS.
Outlines the developmental guidance and counseling program.

Sec. 33.005. COUNSELORS.

a) Describes the primary responsibility of the school
counselor.

b) Describes additional responsibilities of counselors.

c) Requires the agency to develop and periodically update a
job description and an evaluation form for use by school
districts. Requires the agency to consult with state guidance
associations in the development.

Sec. 33.006-33.020. (Reserved for expansion).

SUBCHAPTER B. LIBRARIES

Sec. 33.021 LIBRARY STANDARDS Requires the Texas State Library
and Archives Commission to adopt standards for school library
services and personnel. Requires school districts to consider the
standards.

Sec. 33.022-33.050. (Reserved for expansion).

SUBCHAPTER C. MISSING CHILD PREVENTION AND IDENTIFICATION
PROGRAMS

Sec. 33.051. DEFINITIONS. Defines "child", "minor", and "missing
child".

Sec. 33.052. MISSING CHILD PREVENTION AND IDENTIFICATION PROGRAMS.

a) Allows the board of trustees of a school district to
participate in missing child prevention and identification
programs.

b) Allows the board of trustees to delegate the responsibility
for implementing the program to the school administration or
to the district's community education services administration.

c) Allows the chief administrative officer of each private
primary or secondary school to participate in the programs and
allows them to contract with the regional education service
center in which the school is located.

Sec. 33.053. FINGERPRINTS OF CHILDREN.

a) Allows the fingerprinting of a child where parents or
custodian has consented in writing.

b) Allows the district to establish a fee to cover the costs
of fingerprinting not provided by volunteer assistance. Sets
the maximum fee at $3.00 per child. Allows the school to
waive the fee for educationally disadvantaged children.

c) Requires a representative of a law enforcement agency or a
person trained by a law enforcement agency in fingerprinting
techniques to make a complete set of prints for each child
participating in the program.

d) Requires that the fingerprint card include a description of
the child.

e) Directs, except as provided by Section 33.054(b), the card
will be a part of the school's permanent student records.

f) Prohibits a state agency, law enforcement agency, or other
person from retaining a copy of the fingerprints.

Sec. 33.054. PHOTOGRAPHS OF CHILDREN.

a) Requires participating schools to retain a current
photograph of each child registered whose parent or custodian
has consented in writing.

b) Requires that the photograph be retained by the
participating school until replaced by a subsequently made
photograph or until the expiration of three year, whichever is
earlier.

c) Allows the district to provide a copy of the photograph to
a parent, custodian, or peace officer.

d) Allows the school to charge a fee for making and keeping
records of photographs and allows schools to waive the fee for
educationally disadvantaged students.

Sec. 33.055. FINGERPRINTS AND PHOTOGRAPHS NOT USED AS EVIDENCE.

a) Prohibits the fingerprints or photograph from being used as
evidence in any criminal proceeding in which the child is a
defendant or in a case where the child is alleged to have
engaged in delinquent conduct.

b) States that this subchapter does not apply to the use by a
law enforcement agency for an official purpose of a photograph
published in a school annual.

c) States that this subchapter does not prevent the use of a
videotape or photograph taken to monitor the activity of
students for disciplinary reasons or in connection with a
criminal prosecution or an action under Title 3, Family Code.

Sec. 33.056. LIABILITY FOR NONPERFORMANCE. Extends immunity from
liability for individuals involved.

Sec. 33.057. DESTRUCTION OF FINGERPRINTS AND PHOTOGRAPHS. Directs
the agency to promulgate rules covering the destruction of
fingerprints and photographs.

Sec. 33.058-33.080. (Reserved for expansion).

SUBCHAPTER D. EXTRACURRICULAR ACTIVITIES

Sec. 33.081 EXTRACURRICULAR ACTIVITIES

(a) Requires SBOE to limit participation in extracurricular
activities and to preserving the school day for academics as
much as possible..

(b) Limits the time a student in a private school is subject
to UIL rules to only when the student is under the direct
supervision of an employee of the school.

(c) Requires suspension of students from UIL activities for 3
weeks if a student receives a grade of 70 or lower in any non
honors or non advanced class.

(d) Allows ARD committee to make decisions about appropriate
criteria for extracurricular activities for students with
disabilities.

(e) Does not allow suspension during summer session or the
first six weeks of the next school year due to grades from
preceding school term.

(f) Allows students suspended to practice or rehearse with
other students for an extracurricular activity, but not
participate in a competition or public performance.

(g) Provides that hearings are not contested cases.

Sec. 33.082 EXTRACURRICULAR ACTIVITIES; USE OF DISCRIMINATORY
ATHLETIC CLUB

(a) Prohibits school-sponsored extracurricular competitions
from taking place at an athletic club that discriminates on
the basis of race, color, creed, religion, national origin, or
sex.

(b) Defines "athletic club".

Sec. 33.083 INTERSCHOLASTIC LEAGUES

(a) Requires rules of any organization conducting
interscholastic competition to be consistent with the State
Board of Education rules.

(b) Requires UIL to submit its rules to the State Board of
Education for approval, disapproval, or modification.
Requires accounting procedures.

(d) Requires UIL to account for funds.

(e) Requires that UIL permit students enrolled in accredited
private schools to participate in UIL competitions.

(f) Sunsets UIL rules August 31, 1996 unless readopted by the
State Board of Education after September 1, 1995.

Sec. 33.084 INTERSCHOLASTIC LEAGUE ADVISORY COUNCIL

(a) Designates membership of UIL advisory council.

(b) States council serves at will of appointing authority.

(d) Provides for council to select chair and chair to call
meetings.

(e) States the purpose of the council.

(f) Allows for mileage and per diem reimbursements for
council.

(g) Specifies topics for council to study

(h) Prohibits UIL from starting new programs pending final
report of council.

Sec. 33.085 INSURANCE FOR SCHOOL ATHLETES

(a) Allows local school boards to obtain insurance against
injuries sustained by student athletes while training for or
playing in interschool athletic competition.

(b) Provides for the amount of insurance.

(d) Allows the cost to be part of total cost of athletic
department, but requires premiums to be paid from income
received from athletic contests.

(e) Relieves school boards of any responsibility if they do
not carry this type of insurance.

Sec. 33.086-33.900. (Reserved for expansion).

SUBCHAPTER Z. MISCELLANEOUS PROVISIONS

Sec. 33.901. BREAKFAST PROGRAMS. Requires a school district to
participate in the school breakfast program if at least 10 percent
of the students enrolled in one or more schools in a school
district or enrolled in a program operating outside of a school
district facility under Subchapter D, Chapter 12, are eligible for
free or reduced-price breakfasts.

Sec. 33.902. PUBLIC SCHOOL CHILD CARE.

(a) Defines school-age students" to mean children enrolled as
students in prekindergarten through grade 7.

(b) Requires each school district with more than 5,000
students, and that does not provide or contract for child care
services before and after the school day and during holidays
and vacations for school-age students, to consider during at
least two public hearings, the need for and availability of
child care.

CHAPTER 34. TRANSPORTATION

Sec. 34.001. PURCHASE OF MOTOR VEHICLES.

(a) Authorizes school districts to purchase motor vehicles
through the General Services Commission or through a
competitive bidding process.

(b) Grants rule-making authority to the General Services
Commission.

Sec. 34.002. SAFETY STANDARDS.

(a) Authorizes the General Services Commission, with the
advice of the Department of Public Safety, to establish safety
standards for school motor vehicles.

(b) Requires school districts to comply with safety standards.

(c) Removes school district eligibility for transportation
allotment for failure or refusal to comply with safety
standards.

Sec. 34.003. SIGN REQUIRED. Requires signs on vehicles used to
transport students to or from school.

Sec. 34.004. STANDING CHILDREN. Prohibits school districts
receiving funding under Section 42.155(h) from requiring or
allowing a child to stand on a school bus that is in motion.

Sec. 34.005. FINANCING.

(a) Permits districts to issue interest-bearing time warrants
to purchase school motor vehicles.

(b) Sets limits on the maturity of the warrants, and sets
limits on the interest rate.

(d) Directs that the warrants are payable from any available
funds of the school district.

(e) Requires districts to keep records of warrants and report
to the General Services Commission.

Sec. 34.006. SALE OF BUSES.

(a) Provides for disposal of school buses by the General
Services Commission.

(b) Permits school districts to use alternate methods of
disposal.

Sec. 34.007. PUBLIC SCHOOL TRANSPORTATION SYSTEM.

(a) Allows a board of county school trustees or a school
district board of trustees to establish a public school
transportation system.

(b) Requires employment of school bus drivers certified in
accordance with standards and qualifications adopted by the
Department of Public Safety.

Sec. 34.008. CONTRACT WITH TRANSPORTATION COMPANY OR SYSTEM.

(a) Permits a board of county school trustees or school
district board of trustees to contract with a public or
commercial transportation company or system for services.
Requires that commercial transportation companies under
contract must use school motor vehicles that satisfy safety
standards and must require school bus drivers to meet
qualifications set by and be certified by the Department of
Public Safety.

(b) States that this section does not prohibit the board from
supplementing the state transportation cost allotment.

Sec. 34.009. CONTRACTS FOR USE, ACQUISITION, OR LEASE OF SCHOOL
BUS.

(a) Authorizes a board of county school trustees or school
district board of trustees to contract for use, acquisition,
or lease with option to purchase of a school bus.

(b) Requires that school buses leased or leased with option to
purchase meet applicable safety standards.

(c) Declares that each contract which reserves to the board
the right to terminate the contract at the end of the budget
period of the board during the term of the contract is
considered to be a commitment of current revenues only.

(d) Prohibits termination penalties and limits the net
effective interest rate.

(e) Applies competitive bidding requirements to contracts.

(f) Requires commissioner to adopt a recommended contract
form.

(g) Permits submission of contracts providing for payment of
$100,000 or more to the attorney general for examination and
approval and registration with the comptroller, and makes the
validity of approved and registered contracts incontestable.

(h) States that the decision of a board to use an alternative
form of use, acquisition, or purchase of a school bus does not
affect eligibility for transportation funding.

(i) Authorizes contracts to be legal investments for banks,
other financial institutions, and for the sinking funds of
school districts.

(j) Provides that limits of not less than two years or more
than 10 years on the term of a contract.

(k) Permits the use of the provisions of any other law not in
conflict with this section to carry out any power or authority
granted by this section.

Sec. 34.010. USE OF BUSES FOR EXTRACURRICULAR ACTIVITIES, ETC.

(a) Permits contracts with nonschool organizations for the use
of school buses.

(b) Requires commissioner to ensure proper identification of
costs of using school buses for a purpose other than the
transportation of students to or from school are properly
identified in the Public Education Information Management
System.

Sec. 34.011. APPEALS. Makes a policy decision of a board of
county school trustees or board of trustees of a school district
final and not subject to appeal.

CHAPTERS 35 AND 36

(Reserved for Expansion)

SUBTITLE G. SAFE SCHOOLS

CHAPTER 37. DISCIPLINE; LAW AND ORDER

SUBCHAPTER A. ALTERNATIVE SETTINGS FOR BEHAVIOR MANAGEMENT

Sec. 37.001. STUDENT CODE OF CONDUCT.

(a) Requires that each school district adopt a student code
of conduct that addresses student behavior and specifies the
circumstances under which a student may be removed from a
regular education classroom.

(b) Requires that a teacher with knowledge that a student
violated the student code conduct file a written report to the
principal or school official in charge of discipline. The
principal, or school official in charge of discipline, shall
within twenty-four hours of receiving the report, send a copy
to the parents or guardians of the student.

Sec. 37.002. ON-CAMPUS ALTERNATIVE EDUCATION PROGRAM.

(a) Requires that each school district establish an on-campus
alternative education program at each campus in the district
that is segregated in all respects from the regular education
program.

(b) Requires that the on-campus alternative education program
focus on English language arts, math, science, history, and
self-discipline and administer assessment instruments on the
same schedule as the regular education program.

(c) Requires that a student shall complete all work,
including that assigned in the regular education program,
while in attendance.

(d) Authorizes that except for reporting requirements and the
provisions of this chapter, an on-campus alternative education
program is exempt from this code.

(e) Requires that a student in violation the student code of
conduct shall transfer the to the on-campus alternative
education program for a period not to exceed five days.

(f) Requires the principal or school official in charge of
discipline to send written notice by certified mail within
twenty-four hours of the transfer containing the reasons for
the transfer and that the parents or guardians must attend a
conference with the teacher.

(g) Allows for the student, parents or guardians to have the
right to appeal the decision to the principal within twenty-four hours of receiving the written notice.

(h) Authorizes that a student, after completing all assigned
work and attending the on-campus alternative education program
for the period specified by the teacher, return to the regular
education program.

(i) Requires that a principal or the school official in
charge of discipline transfer a student to the on-campus
alternative education program for at least one day if the
principal or official receives written reports indicating the
student has violated the student code of conduct on three
separate occasions.

(j) Requires that a principal or the school official in
charge of discipline transfer a student to the local off-campus alternative education program if the student violates
the student code of conduct and has been previously suspended
or transferred to the school s on-campus alternative education
program three times in one school year.

(k) Requires that a principal or the school official in charge
of student discipline transfer a student who continues to
violate the student code of conduct while attending the
school s on-campus alternative education program.

Sec. 37.003. FUNDING OF ON-CAMPUS ALTERNATIVE EDUCATION PROGRAM.
Provides that a school district shall allocate to an on-campus
alternative education program the same expenditure per student that
would be allocated to the student s school if the student were
attending the regular education program.

Sec. 37.004. LOCAL OFF-CAMPUS ALTERNATIVE EDUCATION PROGRAM.

(a) Requires that a school district establish or participate
in a cooperative effort to establish a local off-campus
alternative education program.

(b) Requires that the off-campus alternative education
program focus on English language arts, math, science,
history, and self-discipline and administer assessment
instruments on the same schedule as the regular education
program.

(d) Requires that except for reporting requirements and the
provisions of this chapter, a local off-campus alternative
education program is exempt from this code.

(e) Requires a principal or school official in charge of
discipline with knowledge that a student has violated the
student code of conduct remove the student to a local off-campus alternative education program for a period not to
exceed 90 days, and send written notice by certified mail to
the parents or guardians within forty-eight hours of the
transfer.

(f) Requires that the written notice contain the reasons for
the transfer and notify that the parents or guardians that
they must attend a weekly conference with at least one
instructor from the off-campus alternative education program.

(g) Allows the student, parents or guardians to have five
days to appeal the transfer to the district superintendent
upon receiving the written notice.

(h) Allows the school district and student, parents, or
guardians to enter into a written agreement with the school
district outlining the student s behavior necessary to return
to the regular education program.

(i) Authorizes that a student, after completing all assigned
work and attending the local off-campus alternative education
program for the specified period, may return to the student s
assigned classes in the regular education program, unless a
teacher who filed a written report of the student s code of
conduct violations objects. If the objection is reasonable,
the principal shall place the student in another class, if
practicable.

(j) Requires that the principal or school official in charge
of discipline transfer a student to the regional alternative
education program if the student violates the student code of
conduct and has been previously transferred to the local off-campus alternative education program twice in one school year.

(k) Authorizes the principal, school official in charge of
discipline, or the director of the local off-campus
alternative education program to transfer a student that
continues to violate the student code of conduct while
attending the local off-campus alternative education program.

Sec. 37.005. FUNDING OF LOCAL OFF-CAMPUS ALTERNATIVE EDUCATION
PROGRAM. Provides that a school district shall allocate to an off-campus alternative education program the same expenditure per
student that would be allocated to the student s school if the
student were attending the regular education program and local and
state funds generated by local tax effort eligible for a guaranteed
yield under the school finance program.

Sec. 37.006. REGIONAL ALTERNATIVE EDUCATION PROGRAM.

(a) Requires that a school district establish or have access
to a regional alternative education program.

(b) Requires that a regional alternative education program
focus on English language arts, math, science, history, and
self-discipline and administer assessment instruments on the
same schedule as the regular education program.

(d) Requires that except for reporting requirements and the
provisions of this chapter, a regional alternative education
program is exempt from this code.

(e) Requires that a principal, school official in charge of
student discipline, or director of a local off-campus
alternative education program who transfers a student to a
regional alternative education program, notify in writing,
within two days, the parents or guardians the reasons for the
transfer and that the parents or guardians shall attend a
monthly conference with at least one instructor from the
regional alternative education program.

(f) Allows the student, parents or guardians to have ten days
to appeal the transfer to the district superintendent upon
receiving the written notice.

(g) Allows the school district and student, parents, or
guardians to enter into a written agreement with the school
district outlining the student s behavior necessary to return
to the regular education program.

(h) Requires that after completing all assigned work and
attending the regional alternative education program for the
specified period, a student may return to the student s
assigned classes in the regular education program, unless a
teacher who filed a written report of the student s code of
conduct violations objects.

Sec. 37.007. FUNDING OF REGIONAL ALTERNATIVE EDUCATION PROGRAM.
Provides that a school district shall allocate to a regional
alternative education program the same expenditure per student that
would be allocated to the student s school if the student were
attending the regular education program and local and state funds
generated by local tax effort eligible for a guaranteed yield under
the school finance program.

Sec. 37.008. JUVENILE JUSTICE ALTERNATIVE EDUCATION PROGRAM.

(a) Provides that a student may only be transferred to a
juvenile justice alternative education program by a juvenile
court.

(b) Requires that a juvenile justice alternative education
program focus on English language arts, math, science,
history, and self-discipline. The educational content shall
be developed by the supervising juvenile probation department,
subject to the approval of the Texas Juvenile Probation
Commission, and each program shall administer assessment
instruments on the same schedule as the regular education
program; and shall offer a high school equivalency program.

(c) Requires that a juvenile justice alternative education
program adopt a written operating policy manual subject to
approval by the Texas Juvenile Probation Commission.
(d) Requires that except for reporting requirements and the
provisions of this chapter, a juvenile justice alternative
education program is exempt from this code.

(e) Requires that a student transferred to a juvenile justice
alternative education program just participate in the program
for the full period ordered by the juvenile court, unless the
student s school district agrees to accept the student before
the date ordered by the juvenile court.

Sec. 37.009. FUNDING OF JUVENILE JUSTICE SYSTEM ALTERNATIVE
EDUCATION PROGRAMS. Provides that a school district shall allocate
to juvenile justice alternative education program the same
expenditure per student that would be allocated to the student s
school if the student were attending the regular education program.

Sec. 37.010. REPORTS TO LOCAL LAW ENFORCEMENT; LIABILITY.

(a) Requires that a principal or designee of a public or
private primary or secondary school notify school and local
law enforcement if there are reasonable grounds to believe
that a criminal offense, as listed in the section, has
occurred in school, on school property, or at a school-sponsored or school-related activity on or off school
property.

(b) Requires that a person notifying must include the name
and address of the student.

(c) Provides that notification is not required if the person
reasonably believes that the activity does not constitute a
criminal offense.

(d) Authorizes the principal to designate a school employee
to make the reports required by this section.

(e) Removes liability in civil damages for a person reporting
in good faith as required by this section.

Sec. 37.011. REPORT OF DRUG OFFENSES; LIABILITY. Provides that a
teacher, school administrator, or school employee is not liable in
civil damages for reporting a student for whom the teacher suspects
of using, passing, or selling on school property a controlled
substance, including alcohol and inhalants.

Sec. 37.012. INFORMATION FOR EDUCATORS. Requires each school
district to provide a copy of this subchapter with a copy of the
related local policy to each teacher and administrator.

Sec. 37.013-37.050. (Reserved for expansion).

SUBCHAPTER B. SCHOOL-COMMUNITY GUIDANCE CENTERS

Sec. 37.051. ESTABLISHMENT. Authorizes that a school district may
establish a school-community guidance center designed to locate and
assist children with problems, including juvenile offenders, and
children with severe behavior problems.

Sec. 37.052. COOPERATIVE PROGRAMS. Authorizes that the board of
trustees of a school district may develop cooperative programs with
state youth agencies for children who have engaged in delinquent
conduct.

Sec. 37.053. COOPERATION OF GOVERNMENTAL AGENCIES.

(a) Provides that upon the request of superintendent, that
each governmental agency that is concerned with children shall
cooperate with the school-community guidance centers and
designate a liaison to work with the centers.

(b) Authorizes the governmental agency to establish or
finance a center jointly with the school district according to
jointly approved terms.

Sec. 37.054. PARENTAL NOTICE, CONSENT, AND ACCESS TO INFORMATION.

(a) Requires that before a student is admitted to a school-community guidance center the parents or guardians must be
notified.

(b) Requires that the notification must include the reason
the student has been assigned to the center, that the parent
or guardian, upon request, is entitled to be fully informed in
writing about the testing and treatment of the child, and that
the parent or guardian can request to be advised and to give
written, signed consent for any testing or treatment involving
the student.

(d) Authorizes that a parent or guardian is entitled to
inspect any materials to be used and any results of treatment
or testing of the student.

(e) Allows the administrator of the center to set a schedule
for the inspection of the materials that allows reasonable
access but does not interfere with class or daily business.

Sec. 37.055. PARENTAL INVOLVEMENT.

(a) Requires that upon admittance to a school-community
guidance center, a representative from the center, the student
and a parent shall develop an agreement specifying behavioral
and learning objectives, parent meetings and conferences, and
the responsibilities of the students and parents.

(b) Authorizes the superintendent to obtain a court order
requiring a parent to comply with the agreement or face
contempt charges.

Sec. 37.056. COURT SUPERVISION.

(a) Defines court" in this section to mean a juvenile court
or alternate juvenile court. The court may delegate
responsibility under this section to a referee.

(b) Provides that a juvenile court may, if a representative
from the school district, the student and parent or guardian
fail to reach an agreement, enter an order establishing the
responsibilities and duties of each of the parties.

(d) Authorizes that if the parties reach an agreement without
the court, and so provides, the court may enter an order that
incorporate the terms of the agreement.

(e) Authorizes that any party who violates an order may be
punished for contempt of court.

(f) Authorizes a school district to enter into an agreement
to share the costs incurred by a county under this section.

Sec. 37.057-37.080. (Reserved for expansion).

SUBCHAPTER C. LAW AND ORDER

Sec. 37.081. SCHOOL DISTRICT PEACE OFFICERS AND SECURITY
PERSONNEL.

(a) Authorizes the board of trustees of any school district
to employ security personnel and commission peace officers to
carry out this subchapter.

(b) Authorizes a peace officer commissioned under this
section to have the powers privileges and immunities of peace
officers, have the power to enforce all laws, and take a
juvenile into custody.

(d) Authorizes the school district peace officer to perform
administrative and law enforcement duties as determined by the
board of trustees, and must include protecting the safety and
welfare of any person in the jurisdiction, and the property of
the school district.

(e) Authorizes the board of trustees to determine the scope
of the on-duty and off-duty law enforcement activities of the
school district peace officers.

(f) Requires that the school district police department and
the law enforcement agencies that have overlapping
jurisdictions shall enter into a memorandum of understanding
that outlines reasonable communication and coordination
efforts between the department and the agencies.

(g) Requires that a peace officer assigned to duty and
commissioned under this section to take the oath required of
peace officers and execute and file a bond in the sum of
$1,000.

Sec. 37.082. POSSESSION OF PAGING DEVICES.

(a) Authorizes a board of trustees to adopt a policy
prohibiting a student from possessing a paging device and may
establish disciplinary measures for violation.

(b) Authorizes the district s policy to allow the disposal of
a confiscated paging device after seven days of confiscation,
and to charge the owner of the device or the student s parent
an administrative fee not to exceed $15 before releasing the
device.

Sec. 37.083. ADOPTION OF DISCIPLINE MANAGEMENT PROGRAMS. Requires
that each school district adopt and implement a discipline
management program to be included in the district improvement plan.

Sec. 37.084-37.100. (Reserved for expansion).

SUBCHAPTER D. PROTECTION OF BUILDINGS AND GROUNDS

Sec. 37.101. APPLICABILITY OF CRIMINAL LAWS. Designates that the
criminal laws of the state apply in the areas under the control and
jurisdiction of the board of trustees of any school district in
this state.

Sec. 37.102. RULES; PENALTY.

(a) Authorizes that the board of trustees of a school
district adopt rules for the safety and welfare of students,
employees, and property, and other rules considered necessary
to carry out this subchapter and the governance of the
district.

(b) Requires that traffic laws apply to the operation of a
vehicle on school property, except as modified by this
subchapter.

Sec. 37.103. ENFORCEMENT OF RULES. Authorizes the board of
trustees of a school district to allow any officer commissioned by
the board to enforce rules adopted by the board.

Sec. 37.104. COURTS HAVING JURISDICTION. Authorizes the judge of
a municipal court or the justice of the peace of any county in
which property under the control of the school district is located
to hear and determine criminal cases involving violation of this
subchapter.

Sec. 37.105. UNAUTHORIZED PERSONS: REFUSAL OF ENTRY, EJECTION,
IDENTIFICATION. Authorizes the board of trustees of a school
district or designee to refuse to allow a person without legitimate
business to enter on property under the board s control, to eject
any undesirable person, and to require identification of any person
on the property.

Sec. 37.106. VEHICLE IDENTIFICATION INSIGNIA. Authorizes the
board of trustees of a school district to issue and use suitable
vehicle identification insignia.

Sec. 37.107-37.120. (Reserved for expansion).

SUBCHAPTER E. PENAL PROVISIONS

Sec. 37.121. FRATERNITIES, SORORITIES, SECRET SOCIETIES, AND
GANGS.

(a) Requires that a person, enrolled in school or not,
commits an offense who becomes a member or solicits others to
become a member of a public school fraternity, sorority,
secret society, or gang.

(b) Authorizes a school district board of trustees or an
education to recommend placing in an alternative education
program any student who violates Subsection (a).

(d) Defines a public school fraternity, sorority, secret
society, or gang".

Sec. 37.122. POSSESSION OF INTOXICANTS ON PUBLIC SCHOOL GROUNDS.

(a) Requires that an offense is committed if a person
possesses an intoxicating beverage for consumption, sale or
distribution while on school property, or in any area where an
athletic event sponsored or participated in by a public school
of this state is being held.

(b) Requires an officer of this state who sees a person
violating this section to immediately seize the intoxicating
beverage and deliver it to the county or district attorney to
be used as evidence.

Sec. 37.123. DISRUPTIVE ACTIVITIES.

(a) Requires that an offense is committed if a person
intentionally engages in disruptive activity on the campus or
property of any private or public school.

(b) Provides a description of disruptive activities for the
purpose of this section.

(d) Requires that any person convicted three times for
violating this section cannot attend any institution of higher
education receiving funds from this state until after two
years of the third conviction.

(e) Requires that this section not infringe on any right of
free speech or expression guaranteed by the constitution of
the United States or this state.

Sec. 37.124. DISRUPTION OF CLASSES.

(a) Requires that an offense is committed if a person , on or
within 500 feet of school or public property, intentionally
disrupts the conduct of classes or other school activities.

(b) Requires that an offense under this section is a Class C
misdemeanor.

(c) Describes what is considered disrupting the conduct of
classes or other school activities", public property", and
"school property" for this section.

Sec. 37.125. EXHIBITION OF FIREARMS.

(a) Requires that an offense is committed if a person, by
exhibiting, using, or threatening to exhibit or use a firearm,
interferes with the normal use of a campus or school bus of a
public or private school.

(b) Requires that an offense under this section is a third
degree felony.

Sec. 37.126. DISRUPTION OF TRANSPORTATION.

(a) Requires that an offense is committed if a person
intentionally disrupts, prevents, or interferes with the
lawful transportation of children for school purposes, except
as provided by Section 37.125.

(b) Requires that an offense under this section is a Class C
misdemeanor.

Sec. 37.127-37.150. (Reserved for expansion).

SUBCHAPTER F. HAZING

Sec. 37.151. DEFINITIONS. Defines "educational institution",
"pledge", "pledging", "student", "organization", and "hazing".

Sec. 37.152. PERSONAL HAZING OFFENSE.

(a) Requires that an offense is committed if a person engages
in, encourages, aids, permits, or does not report a planned or
actual hazing event.

(b) Requires that failing to report is a Class B misdemeanor.

(c) Requires that any other offense under this section that
does not cause serious bodily injury to another is a Class B
misdemeanor.

(d) Requires that any other offense under this section that
causes serious bodily injury to another is a Class A
misdemeanor.

(e) Requires that any other offense under this section that
causes the death of another is a state jail felony.

(f) Authorizes the court, except in cases of death, to
require the person to perform community service in lieu of
confinement in a county jail.

Sec. 37.151. ORGANIZATION HAZING OFFENSE.

(a) Requires that an offense is committed if an organization
condones, encourages, commits or assists in hazing.

(b) Requires that an offense under this section is a
misdemeanor punishable by a fine between $5,000 and $10,000.

Sec. 37.154. CONSENT NOT A DEFENSE. Requires that the person or
organization charged with the offense of hazing cannot use the
consent or acquiescence of the victim as a defense.

Sec. 37.155. IMMUNITY FROM PROSECUTION AVAILABLE. Authorizes the
court to grant immunity to any person who testifies for the
prosecution in a hazing case.

Sec. 37.156 OFFENSES IN ADDITION TO OTHER PENAL PROVISIONS.
Requires that this subchapter does not affect or repeal any penal
law of the state, nor limit or affect the right of an educational
institution to enforce its own penalties against hazing.

Sec. 37.157. REPORTING BY MEDICAL AUTHORITIES. Authorizes a
doctor or other medical practitioner who treats a student who is
suspected of being hazed to report, in good faith, the suspected
activities to law enforcement officials, and removes civil or
liability that might be imposed as a result of the report.

CHAPTER 38. HEALTH AND SAFETY

Sec. 38.001. IMMUNIZATION; REQUIREMENTS; EXCEPTIONS.

(a) Provides for the required immunizations.

(b) Provides that an exemption from immunization does not
apply in times of emergency or epidemic declared by the
commissioner of public health.

(d) Provides for Texas Department of Health to provide
immunization in areas where needed.

(e) Provides for provisional admittance of a person.

Sec. 38.002. IMMUNIZATION RECORDS; REPORTING.

(a) Provides for individual immunization records and the
availability of the records to specified entities.

(b) Provides for the transfer of immunization records.

Sec. 38.003. SCREENING AND TREATMENT FOR DYSLEXIA AND RELATED
DISORDERS.

(a) Provides for the testing of students for dyslexia and
related disorders.

(b) Provides for the treatment of any student determined to
have dyslexia or a related disorder.

(d) Provides for definitions of "dyslexia" and "related
disorders".

Sec. 38.004. CHILD ABUSE REPORTING AND PROGRAMS.

(a) Provides for the development of a policy governing the
child abuse reports required by Chapter 34, Family Code, of
school districts and their
employees.

(b) Provides for child abuse antivictimization programs in
elementary and secondary schools.

Sec. 38.005. PROTECTIVE EYE DEVICES IN PUBLIC SCHOOLS. Requires
industrial quality eye-protective devices to be worn by every
teacher and student in appropriate situations as determined by
school district policy.

Sec. 38.006. TOBACCO ON SCHOOL PROPERTY. Provides for a policy that
the board of trustees of a school district must follow with regard
to tobacco on school property.

Sec. 38.007. POSTING OF STEROID LAW NOTICE. Provides that a
violation of state law concerning anabolic steroids or human growth
hormones is a criminal offense punishable by confinement in jail or
imprisonment in the institutional division of the Texas Department
of Criminal Justice.

Sec. 38.008. ACCESS TO MEDICAL RECORDS.

(a) Entitles a school administrator or teacher to access to a
student's medical records maintained by the school district
for reasons determined by district
policy.

(b) Provides f-93 or confidentiality of administrators or
teachers that view the medical records.

(c) Prohibits a school administrator or teacher from requiring
a student to be tested to determine the student's medical
condition or status.

Sec. 38.009. OUTSIDE COUNSELORS.

(a) Prohibits a school district or school district employee
from referring a student to an outside counselor for care or
treatment of a chemical
dependency or an emotional or
psychological condition unless
certain provisions apply.

(b) Provides a clarification of the definition of "parent"
with regard to this section.

SUBTITLE H. PUBLIC SCHOOL SYSTEM ACCOUNTABILITY

CHAPTER 39. PUBLIC SCHOOL SYSTEM ACCOUNTABILITY

SUBCHAPTER A. (Reserved for Expansion)
SUBCHAPTER B. ASSESSMENT OF ACADEMIC SKILLS

Sec. 39.021 ESSENTIAL SKILLS AND KNOWLEDGE. Requires that the
State Board of Education, by rule, establish essential skills and
knowledge for all students.

Sec. 39.022 ASSESSMENT PROGRAM. Requires the State Board of
Education to implement a primarily performance-based statewide
assessment program to ensure school accountability and to consider
stability in the assessment program after establishing governing
rules.

Sec. 39.023 ADOPTION AND ADMINISTRATION OF INSTRUMENTS.

(a) Requires the agency to adopt appropriate criterion-referenced tests in reading, writing, social studies, science,
mathematics, and other subjects as determined by the State
Board of Education. Requires assessment in reading and
mathematics to be annual for all nonexempt students in grades
three through eight. Allows the State Board of Education to
determine periodic assessment in the other subject areas.

(b) Requires the agency to adopt secondary exit-level tests in
mathematics, social studies, science, and English language
arts, including writing, and other subjects as determined by
the State Board of Education. Requires the State Board of
Education to administer the tests.

(c) Requires the State Board of Education to adopt a schedule
for the secondary exit-level tests. Requires that each
student who did not perform satisfactorily on the exit-level
tests be given multiple opportunities to retest.

(d) Allows a test to include multiple sets of questions to
enhance security and broaden the curriculum assessed.

(e) Requires the tests to assess problem-solving ability and
complex-thinking skills.

(f) Allows the State Board of Education to adopt a nationally
recognized, norm-referenced test in reading and mathematics
for spring administration. Requires such a test to be secure.
Allows the state to pay for this assessment instrument.
Requires school districts that administer a norm-referenced
test to report the results to the agency.

(g) Requires the agency to report the results of the statewide
tests to school districts and campuses at the earliest
possible date determined by the State Board of Education but
not later than the beginning of the subsequent school year.

(h) Makes the provisions of this section subject to
modification by State Board of Education rule. Requires that
each test adopted be reliable and valid and that each test
meet federal requirements for measurement of student progress.

Sec. 39.024 SATISFACTORY PERFORMANCE.

(a) Requires the State Board of Education to determine
satisfactory performance on the tests.

(b) Requires each school district to offer intensive
instructional programs for students who did not perform
satisfactorily. Requires that these instructional programs be
designed to enable students to perform at grade level by the
end of the next regular school term.

(c) Requires the agency to develop and distribute summer study
guides to help parents provide assistance to students who did
not perform satisfactorily on the statewide tests. Requires
the commissioner to retain part of the funds allotted to each
district under Section 42.152(a) to pay for these guides.

Sec. 39.025 EXIT-LEVEL PERFORMANCE REQUIRED.

(a) Requires a student to perform satisfactorily on the
secondary exit-level tests in reading, writing, and
mathematics in order to receive a high school diploma.
Requires the State Board of Education to adopt a schedule for
satisfactory performance on secondary exit-level tests in
other subjects as a diploma requirement.

(b) Allows a student who has not received a diploma because of
failure to perform satisfactorily on the exit-level test to
retest each time the test is administered.

(c) Provides that any student denied a diploma because of
failure to perform satisfactorily who subsequently passes will
be issued a high school diploma.

Sec. 39.026 LOCAL OPTION. Allows school districts to adopt and
administer criterion-referenced or norm-referenced tests or both at
any grade level. Requires any norm-referenced test adopted under
this section be economical, nationally recognized, and state-approved.

Sec. 39.027 EXEMPTION.

(a) Except as provided by (d), allows test exemption for a
student with a physical or mental impairment or a learning
disability that prevents the student from mastering the
assessed competencies.

(b) Requires the State Board of Education to adopt rules under
which a district may determine the exemption eligibility of a
student who has a physical or mental impairment or a learning
disability that prevents the student from mastering the
assessed competencies. Requires the agency to monitor
compliance with the rules.

(c) Requires the State Board of Education to adopt rules under
which a nonexempt dyslexic student may use appropriate test
administration procedures to demonstrate mastery of the
competencies assessed by the statewide tests.

(d) Requires the commissioner to develop and propose to the
legislature by December 1, 1996, an assessment system for
evaluating the progress of exempted students. Requires that
performance from this assessment system be included in the
academic excellence indicator system, the performance report,
and the campus report card not later than the 1998-1999 school
year. Provides that this subsection expires September 1,
1999.

Sec. 39.028 COMPARISON OF STATE RESULTS TO NATIONAL RESULTS.
Requires that the state assessment program obtain nationally
comparative results for the subject areas and grade levels for
which criterion-referenced tests are adopted.

Sec. 39.029 MIGRANT WORKERS.

(a) Allows the State Board of Education, by rule, to provide
alternate dates for administration of the statewide assessment
instruments to students whose parent or guardian is a migrant
worker and who travels with the parent or guardian. Allows
the State Board of Education to choose alternate test dates
after considering migrant work patterns and maximum
opportunity for students to test.

(b) Defines migrant worker.

Sec. 39.030 CONFIDENTIALITY; PERFORMANCE REPORTS.

(a) Requires that the State Board of Education or school
district ensure the security of the statewide assessment
instruments in their preparation, administration, and grading.
Provides that meetings held by the State Board of Education or
school district at which the adopted tests or test items are
discussed or adopted are not open to the public and that the
tests or test items are confidential.

(b) Provides that the results of individual student
performance on the statewide tests are confidential and may be
made available only to the student, the student's parent or
guardian, the school personnel directly involved with the
student's educational program, and the agency. Requires that
overall student performance data aggregated by grade level,
subject area, campus, and district be made available to the
public at regularly scheduled meetings of the governing board
of each school district. Prohibits this information from
identifying individual students or teachers.

(c) Allows a school district to separate performance data of
students enrolled in a special education program or of
students enrolled in a bilingual education or special language
program from the performance data of other students.

Sec. 39.031 COST. Requires the cost of preparing, administering,
or grading the assessment instruments to be paid from funds
allotted under Section 42.152 and each district to bear the cost in
the same manner for a reduction in allotments under Section 42.253.
Requires the commissioner to subtract the cost from a district's
other foundation school fund allowance if the district does not
receive an allotment under Section 42.152.

Sec. 39.032 ASSESSMENT INSTRUMENT STANDARDS; CIVIL PENALTY.

(a) Prohibits a company or organization from distributing to,
selling to, or grading for the same school district the same
form of a group-administered achievement test for more than
three years and specifies that a school district may not use
the same form of a test for more than three years.

(b) Requires a company or organization that grades a group-administered achievement test to report the results to the
district and to the agency by campus and district and in
comparison to state and national averages, unless the agency
requests the results in a different format.

(c) Requires that state and national norms be computed using
data that are not more than six years old at administration
time and that are representative of the student group testing.
Requires that the standardization norms be based on a national
probability sample which meets accepted standards for
educational and psychological testing and that norms be
updated at least every two years using proven psychometric
procedures approved by the State Board of Education.

(d) Provides that a company or organization that fails to
comply with this section is liable to the state in an amount
equal to three times the amount of actual damages. Defines
actual damages. Allows the attorney general, a district
attorney, or a county attorney to bring suit to collect
damages on the request of the State Board of Education or on
the request of a student or parent or guardian of a student to
whom the achievement test is administered.

(e) Requires the State Board of Education to adopt rules for
implementing this section and for maintaining security of the
assessment instruments.

(f) Defines assessment instrument as used in this section.

Sec. 39.033-39.050. (Reserved for expansion).

SUBCHAPTER C. PERFORMANCE INDICATORS

Sec. 39.051. ACADEMIC EXCELLENCE INDICATORS.

(a) Requires the State Board of Education to adopt a set of
indicators of the quality of learning on a campus and to
biennially review the indicators for consideration of
appropriate revisions.

(b) Requires performance on the indicators to be compared to
state-established standards, considered in terms of the degree
of change from one year to the next, and disaggregated by
race, ethnicity, gender, and socioeconomic status. Specifies
eight indicators and permits the State Board of Education to
adopt any others it chooses.

(c) Requires performance on assessment instruments adopted
under Subchapter B to be compared to state standards, required
improvement and comparable improvement. Requires the state
standard to be established by the commissioner; defines
required and comparable improvement.

(d) Requires the commissioner to define exemplary, recognized,
and unacceptable performance for indicators one through six,
and to project standards for succeeding years.

Sec. 39.052. PERFORMANCE REPORT.

(a) Requires each board of trustees to publish an annual
report of district and campus educational performance under
rules adopted by the commissioner. Requires campus
performance objectives to be included in the report, along
with district and campus performance ratings. Specifies that
the board of trustees will determine any supplemental
information to be included in the report. Requires the agency
to provide performance and descriptive information in the
annual reports.

(b) Requires the board of trustees to hold a hearing for
public discussion of the report, to notify property owners and
parents in the district of the hearing, and to widely
disseminate the report within the district. Requires the
commissioner to adopt rules for the dissemination.

(c) Requires the report to include performance comparisons to
prior year, to state-established standards, and to comparable
improvement.

(d) Permits the report to include student, financial, staff
and program information.

(e) Requires the State Board of Education to authorize
combination of this report with other reports, and to restrict
the number and length of reports required of local education
agencies and staff.

(f) Requires the annual report to include the district's
unencumbered surplus fund balance.

Sec. 39.053. CAMPUS REPORT CARD.

(a) Requires the agency to prepare and distribute a school
report card each year. Requires that the report card include
the most current data available disaggregated by student
groups, comparison to previous campus and district
performance, current district performance, state-established
standards, and comparable campus group performance.

(b) Specifies seven items to be included in the school report
card.

(c) Requires the commissioner to adopt rules for
dissemination of the report cards to parents of students at
each campus and requires school districts to provide a copy of
the report cards to any other party upon written request.

Sec. 39.054. USES OF PERFORMANCE REPORT.

(a) Requires the report under Section 30.052 to be the
subject of public hearings or meetings required under Sections
11.202, 11.203, and 39.052; a primary consideration in local
planning, and a primary consideration in evaluation of the
commissioner, directors of the regional education service
centers, superintendents, principals, and campus staff

Sec. 39.055-39.070. (Reserved for expansion).

SUBCHAPTER D. ACCREDITATION STATUS

Sec. 39.071. ACCREDITATION. States that accreditation of a school
district is determined in accordance with this subchapter.

Sec. 39.072. ACCREDITATION STANDARDS.

(a) Requires the State Board of Education to adopt rules for
the accreditation of school districts, and to include criteria
to evaluate the performance of school districts and assign
accredited districts an additional performance rating of
exemplary, recognized, or academically unacceptable.

(b) Requires that the academic excellence indicators adopted
under Section 39.051(b)(1) through (6) be the main
consideration in the district ratings. Specifies 17
additional criteria which may be considered.

(c) Requires the agency to evaluate against state standards
and report campus performance on the indicators adopted under
Section 39.051(b)(1) through (6).

Sec. 39.073. DETERMINING ACCREDITATION STATUS.

(a) Requires the agency to annually review district and
campus performance on the indicators adopted under Section
39.051(b)(1) through (6) and determine if a change in district
accreditation status is warranted.

(b) Requires that the annual review include an analysis of
the indicators adopted under Section 39.051(b)(1) through (6)
in relation to standards, required improvement and comparable
improvement.

(c) Permits a district's accreditation rating to be raised or
lowered based on district performance, or lowered based on
unacceptable performance of one or more campuses in the
district.

(d) Requires the State Board of Education to make optimum use
of the Public Education Information Management System to
minimize the written reporting requirements of the districts.

(e) Requires the commissioner to notify districts rated
academically unacceptable and districts and campuses below
each standard in Subsection (b) and to require districts to
notify property owners and parents of the lowered
accreditation rating and its implication.

Sec. 39.074 ON-SITE INVESTIGATIONS.

(a) Authorized the commissioner to direct the agency staff to
conduct on-site investigations.

(b) Authorizes the commissioner to determine the frequency of
the investigations by the agency.

(c) Provides for the investigators to obtain information from
sources and may not close the investigation until the
information is obtained.

(d) Provides for the agency to give written notice of any
impending investigation.

(e) Provides for an investigation to be conducted if annual
review indicates low performance.

(f) Provides for the investigators to report orally and in
writing to the board of trustees. Also provides for the
recommendations concerning necessary improvements.

Sec. 39.075. SPECIAL ACCREDITATION INVESTIGATIONS.

(a) Lists circumstances in which the commissioner may
authorize special investigations.

(b) Provides for the commissioner to lower a district's
accreditation rating.

Sec. 39.076. AGENCY ASSISTANCE. Provides for the agency to assist
districts having difficulty meeting accreditation standards.

Sec. 39.077-39.090. (Reserved for expansion).

SUBCHAPTER E. SUCCESSFUL SCHOOL AWARDS

Sec. 39.091. CREATION OF SYSTEM. Provides that the Texas
Successful Schools Award System (TSSAS) is created to recognize and
reward schools and districts that demonstrate progress or success
in achieving the state education goals.

Sec. 39.092. TYPES OF AWARDS.

(a) Provides that the governor may present a financial award
to schools or districts with the sustained success or the
greatest improvement. Provides that the amount of the award is
set by the students in daily attendance, subject to any limit
set by the commissioner.
(b) Provides that the governor may present proclamations or
certificates.

(c) Provides that the commissioner may establish additional
award categories contingent on involvement with paired, lower-performing schools.

Sec. 39.093. AWARDS

(a) Requires the criteria for awards to be related to the
state education goals and performance on the academic
excellence indicators, considering comparison to the state
standards and previous performance.

(b) Provides that the commissioner annually select qualified
schools and districts and report them to the governor and the
State Board of Education.

Sec. 39.094. USE OF AWARDS.

(a) Specifies that the award may not be used for athletics or
to replace funds in the regular budget, but must be used to
enhance academics.

(b) Requires that the campus planning and decision-making
committee shall determine the use of the award funds.

Sec. 39.095. FUNDING. Provides that the award system may be
funded by donations, grants, or legislative appropriations; that a
small portion may be used for the ceremony; the funds shall be
accounted for and distributed by the agency; and the awards are
subject to audit.

Sec. 39.096. CONFIDENTIALITY. Provides that all information and
reports under this section
are deemed confidential and may not be disclosed in public or
private proceeding.

Sec. 39.097-39.110. (Reserved for expansion).

SUBCHAPTER F. ADDITIONAL REWARDS

Sec. 39.111. RECOGNITION AND REWARDS. Requires the State Board of
Education to develop a plan for recognizing and rewarding school
districts and campuses that are rated as exemplary or recognized.

SEC. 39.112. EXCELLENT EXEMPTIONS

(a) Provides that a school district or campus rated exemplary
is exempt from requirements and prohibitions imposed under
this code except as provided by subsection (b).

(b) Outlines the items for which a school campus or district
may not be exempted.

(c) Requires the agency to monitor and evaluate deregulation
of a school campus or district under this section and Section
7.056.

(d) Allows the commissioner to exempt an exemplary school
campus from class size requirements if the school campus
submits a written plan showing steps to be taken to ensure
that it will not be harmful to the academic achievement of the
students on the campus.

Sec. 39.113 - 39.130. (Reserved for expansion).

SUBCHAPTER G. ACCREDITATION SANCTIONS

Sec. 39.131. SANCTIONS. Sets out the process requiring the
commissioner to follow for district that do not satisfy the
performance criteria adopted under Section 39.072; requires
districts to obtain certain services under contract with a
management team or another person or state-granted charter school.
Provides that if a campus performance is below any standard and the
campus does not demonstrate adequate improvement, the campus is
considered low-performing. Request the State Board of Education to
revoke the district s charter if it is rated academically
unacceptable for a period two years or more and to annex the
district to an adjoining district if it is a general law district.

Sec. 39.132-39.150. (Reserved for expansion).

SUBCHAPTER H. REPORTS TO TEXAS EDUCATION AGENCY

Sec. 39.151. RESTRICTING WRITTEN REPORTS.

(a) Requires the State Board of Education to adopt rules that
provide for simplifying and reducing the number and length of
written reports that the Texas Education Agency requires from
school districts and district employees.

(b) Directs the board to conduct a comprehensive review of
rules relating to Section 28.001, Required Curriculum, to
reduce the number and length of reports required by school
district employees and requires the agency to provide
districts with models of required reports.

(c) Directs the board to conduct a comprehensive review of
current cost accounting requirements to determine the specific
level of detail required in efforts to simplify the reporting
system.

(d) Requires school district trustees to adopt policies to
limit the number and length of written reports that classroom
teachers are required to prepare and limits the number of
reports that classroom teachers are required to prepare.

SEC. 39.152. TEACHERS' RECORDS AND REPORTS.

(a) Requires teachers to keep records showing the names, ages,
courses of study, and attendance records of all students
instructed by the teacher.

(b) Requires those records to be open to public inspection.

(c) Directs teachers to make reports required by the State
Board of Education and includes provision for withholding the
last month of a teacher's salary unless those reports have
been made.

SEC. 39.153. REPORTS TO STATE BOARD OF EDUCATION.

(a) Requires school officers and employees to make reports
relating to school funds and other school affairs as
prescribed by the State Board of Education and the
commissioner. Directs the board and commissioner to develop
necessary forms for reporting purposes.
(b) Directs district payroll officials to withhold the last
month of a school officer's or employee's salary unless the
prescribed reports have been made.

(c) Establishes a penalty for payroll officials who pay the
last month of a school officer's or employee's salary if the
prescribed reports have not been made.

SEC. 39.154. STUDENT RETENTION INFORMATION.

(a) Directs the agency to develop a system to collect student
grade retention data from school districts. Requires the
system to be drawn as much as possible from existing school
district data and data formats.

(b) Requires individual student data to be collected for each
student who is retained, recommended for retention but not
retained, or recommended for advancement from kindergarten to
a transitional kindergarten or transitional first grade class.

(c) Requires the data to include the student's grade level,
age, sex and ethnic origin, the reasons for retention,
recommendation for retention or advancement to transitional
kindergarten or first grade, and the number of times and the
grade levels at which the student has previously been
retained.

SEC. 39.155. SCHOOL DISTRICT RECORDS. Directs school districts to
follow requirements and rules of Subtitle C, Title 6, Local
Government Code, when managing district records.

Sec. 39.156-39.180. (Reserved for expansion).

SUBCHAPTER I. REPORTS BY TEXAS EDUCATION AGENCY

SEC. 39.181. GENERAL REQUIREMENTS.

(a) Sets forth the requirements of each report.

(b) Sets forth requirements for each component of a report
required by this Subchapter.

(d) Applies Subsections (a) and (b) to any report the agency
or State Board of Education must prepare and deliver to the
governor, lieutenant governor, speaker of the house of
representatives, or legislature.

(e) Authorizes any report required by statute that the agency
must prepare and deliver to the governor, lieutenant governor,
speaker of the house of representatives, or legislature to be
combined, at the discretion of the commissioner, with a report
required by this Subchapter.

SEC. 39.182. COMPREHENSIVE BIENNIAL REPORT.

(a) Requires the agency to prepare and deliver to the
governor, lieutenant governor, speaker of the house of
representatives, the legislature, the Legislative Budget
Board, and the clerks of the standing committees of the senate
and house of representatives with primary jurisdiction over
the public school system a comprehensive report covering
certain provisions in the preceding two school years.

(b) Authorizes the agency, in reporting the information
required by Subsection (a)(3), to separately aggregate the
performance of students enrolled in special education under
Chapter 29A, or bilingual education, or special language
programs under Chapter 29B.
(c) Requires that each report must contain the most recent
data available.

SEC. 39.183. REGIONAL AND DISTRICT LEVEL REPORT. Requires the
agency to prepare and deliver to the governor, lieutenant governor,
the speaker of the house of representatives, each member of the
legislature, the Legislative Budget Board, and the clerks of the
standing committees of the senate and house of representatives with
primary jurisdiction over the public school system a regional and
district level report containing certain summaries.

SEC. 39.184. TECHNOLOGY REPORT. Directs the agency to prepare
and deliver to the governor, lieutenant governor, the speaker of
the house of representatives, each member of the legislature, the
Legislative Budget Board, and the clerks of the standing committees
of the senate and house of representatives with primary
jurisdiction over the public school system a technology report that
covers the preceding two school years and includes information on
the status of the implementation of and revisions to the long-range
technology plan required by Section 32.001, including the equity,
distribution, and use of technology in public schools.

SEC. 39.185. INTERIM REPORT. Requires the agency to prepare and
deliver to the governor, lieutenant governor, the speaker of the
house of representatives, each member of the legislature, the
Legislative Budget Board, and the clerks of the standing committees
of the senate and house of representatives with primary
jurisdiction over the public school system by December 1 of each
odd-numbered year an interim report covering selected elements of
the information required by Section 39.182 and Section 39.183.

CHAPTER 40

(Reserved for Expansion)

SUBTITLE I. SCHOOL FINANCE AND FISCAL MANAGEMENT

CHAPTER 41. EQUALIZED WEALTH LEVEL

SUBCHAPTER A GENERAL PROVISIONS

Sec. 41.001. DEFINITIONS. Defines Equalized wealth level",
Wealth per student", and Weighted average daily attendance."

Sec. 41.002. EQUALIZED WEALTH LEVEL.

(a) Limits school district wealth per student to $280,000.

(b) Allows wealth per student in 1995-96 to be sufficient to
maintain 1992-1993 state and local revenue per weighted
student if district imposes the greater of current tax rate or
$1.50 per $100 valuation.

(d) Requires the commissioner to adjust the taxable values of
a school district that experiences a decline in tax base.

Sec. 41.003. OPTIONS TO ACHIEVE EQUALIZED WEALTH LEVEL.
Delineates the actions to be taken by a school district with a
wealth per student that exceeds the equalized wealth level.

Sec. 41.004. ANNUAL REVIEW OF PROPERTY WEALTH.

(a) Requires commissioner to review by July 15 of each year
school district wealth per student. Requires notification of
districts which exceed the equalized wealth level and
districts to which property may be annexed and districts to
which another district may be consolidated.

(b) Authorizes the commissioner to detach and annex property
and order consolidation of districts. Requires elections
before September 1 immediately following the notice to the
district.

(c) Prohibits adoption of tax rates until the commissioner
certifies the district has achieved an equalized wealth level.

(d) States when detachment and annexation or consolidation
orders take effect.

Sec. 41.005. COMPTROLLER AND APPRAISAL DISTRICT COOPERATION.
Requires cooperation from the chief appraiser of each appraisal
district and the comptroller.

Sec. 41.006. RULES.

(a) Allows the commissioner to adopt rules to implement the
chapter. Permits rules to make adjustments to provisions of
Chapter 42, including funding elements established by Section
42.302.

(b) Allows the commissioner to modify effective dates and time
periods for effective and efficient administration of the
chapter.

Sec. 41.007. COMMISSIONER TO APPROVE SUBSEQUENT BOUNDARY CHANGES.
Requires the commissioner to certify that boundary changes and tax
base consolidations would not result in a district exceeding the
equalized wealth level.

Sec. 41.008. HOMESTEAD EXEMPTIONS.

(a) Allows governing board of a district that results from a
consolidation to adopt a homestead exemption as provided by
Sec.11.13, Tax Code.

(b) States that this section prevails over other law.

Sec. 41.009. TAX ABATEMENTS.

(a) Preserves tax abatement agreements executed by districts
involved in consolidation or detachment and annexation.

(b) Requires the commissioner to determine the wealth per
student of a district as if tax abatement agreements executed
by districts on or after May 31, 1993 had not been executed.

Sec. 41.010. TAX INCREMENT OBLIGATIONS. Allows for the
continuation of tax increment obligations for consolidated
districts.

Sec. 41.011. CONTINGENCY.

(a) Permits districts to exercise any remaining valid options
if any option described by Sec. 41.003 is held invalid.

(b) Provides for actions of the commissioner in cases in which
options are declared invalid.

Sec. 41.012. DATE OF ELECTIONS. Requires that an election under
this chapter for voter approval of an agreement entered by the
board of trustees shall be held on a Tuesday or Saturday not more
than 45 days after the date of the agreement.

Sec. 41.013. PROCEDURE.

(a) Allows certain decisions of the commissioner under this
chapter to be appealable under Sec. 11.13(c).

(b) Provides for immediate effect of orders by the
commissioner under this chapter.

(d) Permits commissioner to publish rules adopted under this
chapter in the Texas Register and the Texas Administrative
Code.

Sec. 41.014-41.030. (Reserved for expansion).

SUBCHAPTER B. CONSOLIDATION BY AGREEMENT

Sec. 41.031. AGREEMENT. Permits consolidation by agreement of the
governing boards of two or more districts to create a new district
with a wealth per student below the equalized wealth level.
Requires the commissioner to certify the new district as having a
wealth per student below the equalized wealth level.

Sec. 41.032. GOVERNING LAW. Requires that a new district be
governed by applicable provisions of Chapter 13 other than the
provision of contiguity.

Sec. 41.033. GOVERNANCE PLAN.

(a) Permits an agreement among consolidating districts to
include a governance plan to preserve community-based and
site-based decision making within the new consolidated
district, including the delegation of specific powers of the
governing board of the district other than the power to levy
taxes.

(b) Allows the governance plan to provide for a transitional
board of trustees during the first year after the
consolidation. Requires the board to be elected from single
member districts in subsequent years.

Sec. 41.034. INCENTIVE AID.

(a) Requires the commissioner to adjust the allotments to the
consolidated district to preserve the effects of an adjustment
under Sec. 42.102, 42.103, or 42.104 to which either of the
consolidating districts would have been entitled.

(b) Prohibits payments under Subchapter G, Chapter 13 if a
district receives payments under this section.

Sec. 41.035-41.060. (Reserved for expansion).

SUBCHAPTER C. DETACHMENT AND ANNEXATION BY AGREEMENT

Sec. 41.061. AGREEMENT.

(a) Permits governing boards of two school districts to agree
to detach and annex territory to achieve the equalized wealth
level.

(b) Requires certification by the commissioner.

Sec. 41.062. GOVERNING LAW. Requires that annexation and
detachment by governed by Chapter 13 except for conflict with this
chapter and the requirement that the detached territory be annexed
to a contiguous district.

Sec. 41.063. ALLOCATION OF APPRAISED VALUE OF DIVIDED UNIT.
Provides for appraisal of property which is divided between
districts as a result of detachment and annexation.

Sec. 41.064. ALLOCATION OF INDEBTEDNESS. Permits the allocation
to the receiving district any portion of the indebtedness of the
district from which the territory is detached, and requires the
receiving district to assumes the allocated indebtedness.

Sec. 41.065. NOTICE. Provides for notification of each affected
property owner and the appraisal district in which the affected
property is located.

Sec. 41.066-41.090. (Reserved for expansion).

SUBCHAPTER D. PURCHASE OF ATTENDANCE CREDIT

Sec. 41.091. AGREEMENT. Permits a district over the equalized
wealth level to purchase attendance credits from the commissioner
in an amount sufficient, in combination with any other action taken
under this chapter, to reduce the district s wealth per student to
a level that is equal to or less than the equalized wealth level.

Sec. 41.092. CREDIT.

(a) Provides for calculation of equalized wealth level
considering credits purchased.

(b) Limits use of purchased credit.

Sec. 41.093. COST. Describes the methods of calculation of the
cost of each credit.

Sec. 41.094. PAYMENT.

(a) Sets a deadline of February 15 for payments.

(b) Requires deposit of the payments to the state treasury for
foundation school fund purposes.

Sec. 41.095. DURATION. Limits agreements to one year, with annual
renewal.

Sec. 41.096. VOTER APPROVAL.

(a) Requires voter approval of agreements in an election
called by the district s board of trustees.

(b) Requires specific language for ballot.

Sec. 41.097-41.120. (Reserved for expansion).

SUBCHAPTER E. CONTRACT FOR EDUCATION OF NONRESIDENT STUDENTS

Sec. 41.121. AGREEMENT. Allows a district to execute an agreement
to educate another district s students in an amount sufficient with
other actions to reduce the district s wealth below the equalized
wealth level. Requires the commissioner to certify that the
transfer of weighted average daily attendance will not result in
the wealth of any of the contracting districts greater than the
equalized wealth level. Allows the cost of the agreement to be
lowered if the commissioner determines that a quality program can
be delivered at a lesser amount.

Sec. 41.122. VOTER APPROVAL.

(a) Requires majority voter approval of agreements.

(b) Requires specific language for ballot.

Sec. 41.123. WADA COUNT. States that students served are counted
only in the weighted average daily attendance of the district
providing the services for the purposes of Chapter 42.

Sec. 41.124-41.150. (Reserved for expansion).

SUBCHAPTER F. TAX BASE CONSOLIDATIONS

Sec. 41.151. AGREEMENT. Allows the board of trustees of two or
more districts to execute an agreement to conduct an election to
create a consolidated taxing district for the maintenance and
operation of the school district, subject to the approval and
certification of the commissioner.

Sec. 41.152. DATE OF ELECTION. Requires the election to take
place on the same day in all of the districts.

Sec. 41.153. PROPOSITION.

(a) Requires the ballot to include the maximum tax rate the
district could set. Requires that the maximum tax rate of the
consolidated district is the same as the maximum tax rate
provided by law for independent school districts.

(b) Requires the rate included on the proposition to be
provided by agreement among the districts.

Sec. 41.154. APPROVAL. Requires the approval of a majority of
voters in each participating school district.

Sec. 41.155. CONSOLIDATED TAXING DISTRICT. States that a
consolidated taxing district is a school district established for
the limited purpose of exercising the taxing power authorized by
Article VII, Section 3, of the Texas Constitution and distributing
revenue to its component school districts.

Sec. 41.156. GOVERNANCE.

(a) Requires joint governance by the boards of the component
school districts.

(b) Provides that actions must receive a favorable vote by
each component board.

Sec. 41.157. MAINTENANCE TAX.

(a) Requires the joint board to levy a maintenance tax not
later than September 1 of each year.

(b) Requires component districts to bear a proportional cost
of assessing and collecting taxes based upon weighted average
daily attendance.

(d) Allows component districts to levy, assess, and collect a
maintenance tax for the benefit of the component districts at
a rate that exceeds $1.50 per $100 valuation of taxable
property to pay contracted obligations on the lease purchase
of permanent improvements to real property entered into on or
before May 12, 1993.

Sec. 41.158. REVENUE DISTRIBUTION. Requires the consolidated
taxing district to distribute revenue based on the weighted average
daily attendance of component school districts.

Sec. 41.159. TAXES OF COMPONENT DISTRICTS.

(a) Allows component districts to collect only ad valorem
taxes within the component district sufficient to pay the
principal and interest on bonds as provided by Chapter 45.
(b) Allows entitlement to guaranteed yield funds provided by
Chapter 42.

Sec. 41.160. OPTIONAL TOTAL TAX BASE CONSOLIDATION.

(a) Allows for agreements under this section to provide for
total tax base consolidation instead of consolidation for
maintenance and consolidation only.

(b) Prohibits component districts from levying maintenance or
bond taxes except to retire bonds and other obligations issued
before the effective date of the consolidation.

Sec. 41.161-41.200. (Reserved for expansion).

SUBCHAPTER G. DETACHMENT AND ANNEXATION BY COMMISSIONER

Sec. 41.201. DEFINITIONS. Defines "mineral property".

Sec. 41.202. DETERMINATION OF TAXABLE VALUE.

(a)Provides the definition of taxable value of a parcel.

(b) Includes the taxable value of personal property having
taxable situs at the same location as real property.

Sec. 41.203. PROPERTY SUBJECT TO DETACHMENT AND ANNEXATION.

(a) Describes the property available to the commissioner for
detachment.

(b) Allows surface estate to be detached with mineral interest
if current system held invalid.

Sec. 41.204. TAXATION OF PERSONAL PROPERTY. Requires that
personal property attached to annexed real property also be
annexed.

Sec. 41.205. DETACHMENT OF PROPERTY.

(a) Requires the commissioner to detach property as required
by Sec. 41.004.

(b) Describes the process for detachment and authorized
detachment of partial parcels.

(d) Sets rules for partial detachments.

Sec. 41.206. ANNEXATION OF PROPERTY.

(a) Provides the rules for annexing property to districts.

(b) Permits annexation without regard to contiguity.

(d) Sets annexation priorities.

(e) Permits adjustment by the commissioner to the provisions
in (d).

(f) Sets annexation priorities.

(g) Sets annexation priorities.

(h) Describes treatment of partial parcels.

(i) Permits the commissioner to order annexation for partial
parcels in certain circumstances.

(j) Authorizes the commissioner to modify the priorities for
annexation to increase the efficiency of the system.

(k) Defines a school district s county assignment as the
county to which it is assigned in the 1992-93 Texas School
Directory.

Sec. 41.207. LIMITATIONS ON DETACHMENT AND ANNEXATION. Limits the
commissioner from detaching property exempt from ad valorem
taxation under Sec. 11.20 or 11.21 of the Tax Code or if the
property has a government building on it.

Sec. 41.208. ORDERS AND NOTICE.

(a) Requires the commissioner to order detachment and
annexation before November 8 of each year.

(b) Requires the commissioner to notify districts as soon as
possible.

Sec. 41.209. TREATMENT OF SUBDIVIDED PROPERTY.

(a) Provides direction and procedures for detachment of
partial parcels.

(b) Requires the commissioner to determine specific areas of
a partial parcel to detach.

Sec. 41.210. DUTIES OF CHIEF APPRAISER.

(a) Requires the Chief Appraiser of each county to cooperate
with the commissioner.

(b) Requires Chief Appraiser to send official detachment and
annexation orders to property in their county.

(c) Permits the commissioner to reimburse appraisal districts
for performance of any actions required or requested by the
commissioner.

Sec. 41.211. STUDENT ATTENDANCE. Allows a student living on real
property that is detached to choose to attend the school districts
where the property is annexed.

Sec. 41.212. BOND TAXES. Releases detached property from the
obligation to pay principal and interest on bonds authorized before
detachment.

Sec. 41.213. DETERMINATION BY COMMISSIONER FINAL. Makes a
decision or determination of the commissioner under this subchapter
final and not appealable.

Sec. 41.214-41.250. (Reserved for expansion).

SUBCHAPTER H. CONSOLIDATION BY COMMISSIONER

Sec. 41.251. COMMISSIONER ORDER. Provides rules for commissioner
consolidation when required under Sec. 41.004. Requires
consolidations to take place not later than the earliest
practicable date after November 8.

Sec. 41.252. SELECTION CRITERIA.

(a) Provides rules for the selection of partner districts for
a consolidation order.

(b) Limits the commissioner's selection of districts for
consolidation.

Sec. 41.253. GOVERNANCE.

(a) Provides for a transitional board of trustees for the new
consolidated district.

(b) Requires boards to hold single-member district elections
on the first January uniform election date after the effective
date of the order.

(d) Applies Section 13.156 to districts that are consolidated
under this chapter.

Sec. 41.254. DISSOLUTION OF CONSOLIDATED DISTRICT.

(a) Allows the trustees of the consolidated district to
dissolve the district by the vote of a majority of the voters
participating in an election for that purpose if ad valorem
taxes are abolished for school funding.

(b) Requires each district to be restored as an independent
district that would be liable for a proportionate share of the
liability of the dissolved district.

(d) Restores districts as independent school districts.

(e) Restores proportionate shares to districts by using
students in average daily attendance.

Sec. 41.255. FUND BALANCES. Requires fund balances of
consolidated school district be used for schools in the former
district.

Sec. 41.256. EMPLOYMENT CONTRACTS. Requires consolidated
district to honor all employment contracts of the former districts.

Sec. 41.257. APPLICATION OF SMALL AND SPARSE ADJUSTMENTS AND
TRANSPORTATION ALLOTMENT. Requires the consolidated district to
apply the benefit of the adjustment or allotment to the schools of
the consolidating district to which Sec. 42.104, or 42.155 would
have applied in the event that the consolidated district still
qualifies as a small or sparse district.

CHAPTER 42. FOUNDATION SCHOOL PROGRAM

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 42.001. STATE POLICY.

(a) Sets forth the policy of the state of Texas.

(b) Establishes that the public school finance system shall
adhere to a standard of neutrality that provides for
substantially equal access to similar revenue per student at
similar tax effort.

Sec. 42.002. PURPOSES OF THE FOUNDATION SCHOOL PROGRAM.

(a) Delineates the purposes of the foundation school program.

(b) States that the program consists of two tiers.

Sec. 42.003. STUDENT ELIGIBILITY.

(a) Establishes which students are entitled to the benefits of
the Foundation School Program.

(b) Provides the benefits of the Foundation School Program to
students enrolled in a prekindergarten class under Section
29.153.

Sec. 42.004. ADMINISTRATION OF THE PROGRAM. Provides the
commissioner the authority in accordance with rules of the State
Board of Education to take action and require reports necessary to
implement and administer the Foundation School Program.

Sec. 42.005. AVERAGE DAILY ATTENDANCE.

(a) Defines average daily attendance.

(b) Provides for a district to be funded on the basis of
actual average daily attendance of the immediately preceding
school year if the district experiences a decline of two
percent or more in average daily attendance due to the closing
or reduction in personnel of a military base.

(c) Directs commissioner to adjust average daily attendance
of a school district that has a significant percentage of
students whose parent or guardian is a migrant worker.

(d) Authorizes the commissioner to adjust average daily
attendance of a district in which disaster, flood, extreme
weather condition, fuel curtailment, or other calamity has a
significant effect on attendance.

Sec. 42.006. PUBLIC EDUCATION INFORMATION MANAGEMENT SYSTEM
(PEIMS).

(a) Requires school districts to participate in PEIMS and
provide through it the information required to administer this
chapter and other appropriate provisions of this code.

(b) Requires that each school district use a uniform
accounting system adopted by the commissioner of education for
the data reported through PEIMS.

(c) Requires the commissioner to annually review PEIMS and
repeal or amend rules that require districts to provide
information that is not necessary or useful. Directs the
commissioner to develop rules during the review and revision
of PEIMS to ensure the system provides useful, accurate, and
timely information on student demographics and academic
performance, personnel, and school district finances.

Sec. 42.007. EQUALIZED FUNDING ELEMENTS.

(a) Requires the Legislative Budget Board to adopt rules for
the calculation for each year of the biennium of the qualified
funding elements necessary to achieve the state policy under
Section 42.001 for each school year.

(b) Requires the board to report the equalized funding
elements to the foundation school fund budget committee, the
commissioner, and the legislature by October 1 preceding each
regular session of the legislature.

Sec. 42.008-42.100. (Reserved for expansion).

SUBCHAPTER B. BASIC ENTITLEMENT

Sec. 42.101. BASIC ALLOTMENT. Provides districts an allotment of
$2,300 or a greater amount adopted by the foundation school fund
budget committee under Section 42.256 for each student in average
daily attendance, not including the time students spend each day in
special education programs in an instructional arrangement other
than mainstream or vocational education programs for which an
additional allotment is made under Subchapter C. States that a
greater amount for any school year may be provided by
appropriation.

Sec. 42.102. COST OF EDUCATION ADJUSTMENT.

(a) Provides adjustment to the basic allotment for each
district to reflect the geographic variation in known resource
costs and costs of education due to factors beyond the control
of the district.

(b) Directs the foundation school fund budget committee to
determine the cost of education adjustment under Sec. 42.256.

Sec. 42.103. SMALL DISTRICT ADJUSTMENT.

(a) Provides for adjustment of the basic allotment of certain
small districts. Defines AA", ADA", and ABA" for the
purposes of this section.

(b) Delineates a formula for adjusting the basic allotment of
a district that contains at least 300 square miles and has not
more than 1,600 students in average daily attendance.
(c) Delineates a formula for adjusting the basic allotment of
a district that contains less than 300 square miles and has
not more than 1,600 students in average daily attendance.

Sec. 42.104. USE OF SMALL DISTRICT ADJUSTMENT IN CALCULATING
SPECIAL ALLOTMENTS. States that a district s adjusted allotment
determined under Sec. 42.103 is considered to be the district s
adjusted basic allotment in determining the amount of a special
allotment under Subchapter C for a district to which Sec. 42.103
applies.

Sec. 42.105. SPARSITY ADJUSTMENT. Provides a district an adjusted
basic allotment.

Sec. 42.106-42.150. (Reserved for expansion).

SUBCHAPTER C. SPECIAL ALLOTMENTS

Sec. 42.151. SPECIAL EDUCATION.

(a) Establishes funding weights for special education
instruction arrangements.

(b) Establishes a special instructional arrangement.

(c) Prohibits the number of contact hours credited per day
for each student in the off home campus instructional
arrangement from exceeding the contact hours credited per day
for the multidistrict class instructional arrangement in the
1992-93 school year.

(d) Prohibits the number of contact hours credited per day
for each student in the resource room; self-contained, mild
and moderate; and self-contained, severe, instructional
arrangements from exceeding the average of the statewide total
contact hours credited per day for those three instructional
arrangements in the 1992-93 school year.

(e) Directs the State Board of Education to prescribe the
qualifications that must be met for an instructional
arrangement to be funded as a particular instructional
arrangement under this section.

(f) Defines "full-time equivalent student".

(g) Directs the State Board of Education to adopt rules and
procedures governing contracts for residential placement of
special education students.

(h) Stipulates that funds allocated under this section must
be used in the special education program under Subchapter A,
Chapter 29.

(i) Directs the agency to encourage the placement of all
students in special education programs in the least
restrictive environment.

(j) Directs the agency to review the appropriateness of
student placement if for two successive years a district s
ratio of full-time equivalent students placed in partially or
totally self-contained classrooms to full-time equivalent
students placed in resource room or mainstream instructional
arrangements is 25 percent higher than the statewide average
ratio.

(k) Entitles a school district to proportional funding for
special education students provided an extended year program
required by federal law.

(l) Requires the commissioner to withhold an amount specified
in the General Appropriations Act from funds appropriated for
special education and to distribute the funds to district for
programs under Section 29.014.

Sec. 42.152. COMPENSATORY EDUCATION ALLOTMENT.

(a) Entitles a district to weighted funding of 0.2 for each
student who is educationally disadvantaged or who is not
disabled and resides in a residential placement facility in a
district in which the student s parent or guardian does not
reside and 2.41 for each full-time equivalent student who is
in a remedial and support program under Section 29.081 because
the student is pregnant.

(b) Describes the determination of the number of
educationally disadvantaged students for purposes of this
section.

(c) Stipulates that funds allocated under this section must
be used in providing remedial and compensatory education
programs under Section 29.081.

(d) Directs the agency to evaluate the effectiveness of
remedial and support programs provided under Section 29.081
for students at risk of dropping out of school.

(e) Authorizes the commissioner to retain a portion of the
total amount allotted to finance intensive remedial
instruction programs and study guides provided under Sections
39.024(b) and (c) and to reduce each district s tier one
allotments in the same manner described under Section 42.253.

(f) Directs the commissioner to withhold $10,000,000 each
fiscal year and distribute that amount for programs under
Section 29.084.

(g) Directs the commissioner to coordinate and distribute
funds withheld under subsection (f) and any other funds
available for the program.

(h) Directs the commissioner to reduce each district s tier
one allotments in the same manner described under Section
42.253 after deducting the amount withheld under subsection
(f).

(i) Directs the commissioner to withhold $7,500,000 or more
as determined in the General Appropriations Act each fiscal
year and distribute the funds for programs under Subchapter A,
Chapter 33.

(j) Directs the commissioner to coordinate and distribute
funds withheld under subsection (i) and any other funds
available for the program.

(k) Directs the commissioner to reduce each district s tier
one allotments in the same manner described under Section
42.253 after deducting the amount withheld under subsection
(i).

(l) Directs the commissioner to withhold $1 million each
fiscal year for transfer to the investment capital fund under
section 7.024.

(m) Authorizes the commissioner to withhold up to $1 million
each fiscal year and distribute the funds to district
incurring unanticipated expenditures resulting from a
significant increase in the enrollment of students who are not
disabled and reside in residential placement facilities.

(n) Directs the commissioner to adjust each district s
allotment after deducting the amount withheld under subsection
(l).

(o) Directs the commissioner to adjust each district s
allotment after deducting the amount withheld under subsection
(m).

Sec. 42.153. BILINGUAL EDUCATION ALLOTMENT.

(a) Entitles a district to weighted funding of 0.1 for each
student in average daily attendance in a bilingual education
or special language program.

(b) Stipulates that funds allocated under this section must
be used in providing bilingual education or special language
programs under Subchapter B, Chapter 29.

Sec. 42.154. VOCATIONAL EDUCATION ALLOTMENT.

(a) Entitles a district to weighted funding of 1.37 for each
full-time equivalent student in average daily attendance in an
approved vocational education program in grades 9-12 or in a
vocational education program for students with disabilities in
grades 7-12.

(b) Defines full-time equivalent student for the purposes of
this section.

(d) Requires the commissioner to conduct a cost-benefit
comparison between vocational education programs and
mathematics and science programs.

(e) Directs the commissioner to set aside an amount specified
in the General Appropriations Act of up to one percent of the
amount appropriated to support regional vocational education
planning and to reduce each district s tier one allotments in
the same manner described under Section 42.253.

Sec. 42.155. TRANSPORTATION ALLOTMENT.

(a) Entitles a district or county operating a transportation
system to allotments provided by this section.

(b) Defines the terms regular eligible student, eligible
special education student, and linear density.

(c) Provides for an allotment based on the daily cost per
regular eligible student of operating and maintaining the
regular transportation system and the linear density of that
system. Prohibits the allotment per mile of approved route
from exceeding the amount set by appropriation.

(d) Authorizes the commissioner to approve a district s
application for an additional amount of up to 10 percent of
its regular transportation allotment for transporting children
living within two miles of the school they attend who would be
subject to hazardous traffic conditions if they walked to
school. Requires each board of trustees to provide the
commissioner a definition of hazardous conditions applicable
to that district and identify specific hazardous areas for
which the allocation is requested. Defines when a hazardous
condition exists.

(e) Authorizes the commissioner to grant an amount set by
appropriation for private or commercial transportation for
eligible students from isolated areas.

(f) Specifies that the cost of transporting vocational
education students under certain conditions will be reimbursed
based on the number of actual miles traveled times the
district s official extracurricular travel per mile rate.

(g) Establishes an allocation for transportation services
provided to eligible special education students on a previous
year s cost-per-mile basis

(h) Increases the allocation for eligible regular students
transported by the regular transportation system by 5 percent
for any district or county school board that has complied with
Section 34.004 in accordance with rules of the State Board of
Education.

(i) Requires that funds allocated under this section be used
in providing transportation services.

(j) Provides methodology for determining a district s
transportation allotment for purposes of determining the
district s foundation school program allocations if the
district belongs to a county transportation system.

Sec. 42.156. GIFTED AND TALENTED STUDENT ALLOTMENT.

(a) Entitles a district to weighted funding of 0.12 or a
greater amount provided by appropriation for each student a
district serves in a program for gifted and talented students
under Subchapter D, Chapter 29.

(b) Stipulates that funds allocated, other than the amount
that represents the program s share of general and
administrative costs, must be used in providing or developing
programs for gifted and talented students.

(d) Requires the commissioner to reduce each district s tier
one allotment in the manner described in Section 42.253 if the
amount of state funds for which districts are eligible under
this section exceeds the amount appropriated.

(e) Directs the commissioner to distribute surplus funds
appropriated proportionately to those districts that received
an allotment.

(f) Authorizes the State Board of Education, after each
district has received an allotment, to use up to $500,000 for
certain programs meeting specified conditions.

Sec. 42.157 TEACHER COMPENSATION ALLOTMENT.

(a) Entitles each district to an allotment of $90 per student
in average daily attendance.

(b) Limits the use of the allotment to teacher salaries for
teachers who were entitled to career ladder supplements,
except as provided in (d).

(d) Allows excess allotment to be used for supplementing the
salaries of teachers not entitled to career ladder
supplements.

Sec. 42.158-42.200. (Reserved for expansion).

SUBCHAPTER D. ADMINISTRATIVE COSTS

Sec. 42.201 LIMIT ON ADMINISTRATIVE COSTS.

(a) Directs the commissioner to determine annually an
administrative cost ratio for several categories of school
districts.

(b) Authorizes the commissioner to adjust the administrative
cost ratio of a district meeting certain conditions.

(c) Provides procedures and timelines for notification, desk
audit, response, and waiver concerning administrative cost
ratios.

(d) Provides for reduction of tier one allotments or
remittance by districts that fail to reduce administrative
costs as required by this section.

(e) Provides the commissioner with waiver authority for
unusual circumstances.

(f) Requires a school district to include a statement of any
amount withheld or remitted as a result of excess
administrative costs in the district report required by
Section 39.052.
(g) Defines administrative cost ratio, administrative costs,
instructional costs, and adjusted group standard.

Sec. 42.202-42.250. (Reserved for expansion).

SUBCHAPTER E. FINANCING THE PROGRAM.

Sec. 42.251. FINANCING; GENERAL RULE.

(a) Defines the total cost of the Foundation School Program.

(b) Delineates the sources of revenue used to finance the
program.

(c) Directs the commissioner to compute and certify each
district s reduction in total revenue, if any, due to a change
in the method of finance.

Sec. 42.252. LOCAL SHARE OF PROGRAM COST (TIER ONE).

(a) Provides a formula for determination of each district s
local share of the Foundation School Program.

(b) Provides for adjustment by the commissioner of values
reported by the comptroller to reflect reductions in taxable
value of property resulting from natural or economic disaster.

(d) Requires that a school district raise its total local
share to be eligible to receive foundation school fund
payments.

(e) Requires the commissioner to hear appeals from districts
that have experienced a rapid decline in tax base exceeding
eight percent and authorizes the commissioner to adjust the
district s taxable values for local fund assignment purposes.

Sec. 42.253. DISTRIBUTION OF FOUNDATION SCHOOL FUND.

(a) Requires the commissioner to determine the foundation
school program funding to which a district is entitled, the
amount of the available school fund allocated to the district,
and the total amount of local share under sections 42.252,
42.302, and 42.451.

(b) Provides the basis for determining the amounts in
subsection (a).

(d) Provides for the approval and distribution of warrants.
Prohibits the total amount of warrants issued from exceeding
the amount appropriated for that fiscal year.

(e) Provides for recomputation of a district s entitlement if
the district s tax rate is less than the maximum authorized
and establishes a reserve account in the foundation school
fund consisting of the difference between a district s initial
allocation and the amount of its recomputed warrants.

(f) Describes allowable uses for funds in the reserve
account. Provides for transfer of additional funds from the
economic stabilization fund.

(g) Authorizes the commissioner to adjust funding to a
district upon demonstration that the district s tax rate,
student enrollment, or taxable value of property used to
determine the amount of funds to which a district is entitled
are so inaccurate as to cause undue financial hardship.

(h) Provides a formula for the reduction of funds allocated
to each district if the legislature fails to appropriate or
transfer sufficient funds, and provides for reimbursement of
the reduction in the subsequent fiscal year.

(i) Provides for reconciliation in the subsequent fiscal year
for differences between a district s entitlement and the
amount of warrants issued.

(j) Permits the legislature to appropriate funds for
subsection (i) from funds identified by the comptroller.

(k) Directs the commissioner to compute and certify to the
district the difference between the district s entitlement and
the amount of warrants issued.

(l) Describes the method by which students in weighted
average daily attendance is calculated for this section.

Sec. 42.254. ESTIMATES REQUIRED.

(a) Requires submission of estimates of the tax rate and
student enrollment for each school district and the total
taxable value of all property in the state for the following
biennium to the foundation school fund budget committee and
the legislature by October 1 of each even-numbered year.

(b) Requires the agency and comptroller to update estimates by
March 1 of each odd-numbered year.

Sec. 42.255. FALSIFICATION OF RECORDS; REPORT. Provides for
reporting to the State Board of Education and state auditor when
audits or reviews of school district records reveal deliberate
falsification of records or other violation of this chapter
resulting in illegal increase of the district s share of state
funds.

Sec. 42.256. FOUNDATION SCHOOL FUND BUDGET COMMITTEE.

(a) Establishes the foundation school fund budget committee
consisting of the governor, lieutenant governor, and the
comptroller.

(b) Requires the budget committee to determine and certify to
the comptroller an amount of money for financing the
Foundation School Program by December 1 before each regular
session of the legislature.

(d) Requires the budget committee to adopt rules for the
calculation of the qualified funding elements needed to
achieve the state policy under Section 42.001.

(e) Delineates the funding elements.

(f) Requires the foundation school fund budget committee to
adopt the equalized funding elements by rule not later than
December 1 preceding each regular session of the legislature.
Requires a public hearing.

Sec. 42.257. EFFECT OF APPRAISAL APPEAL.

(a) Provides for adjustment of taxable property value if an
appeal under Chapter 42, Tax Code, results in a reduction of
the taxable value of property that exceeds five percent of the
total taxable value of property in the school district.

(b) Provides for distribution of any additional funds a
district would have received using the adjusted value.

Sec. 42.258. RECOVERY OF OVERALLOCATED FUNDS.

(a) Describes mechanisms for recovery of an overallocation of
state funds to a school district.

(b) Provides for certification of amounts of the debt to the
attorney general for collection if a district fails to comply
with a request for a refund.

Section 42.259. FOUNDATION SCHOOL FUND TRANSFERS.

(a) Defines "category school district 1, 2, and 3" and
"wealth per district".

(b) Provides a payment schedule for the disbursement of
foundation school funds to school districts in category 1.

(d) Provides a payment schedule for the disbursement of
foundation school funds to school districts in category 3.

(e) Provides for modification of the amount of an
installment.

Sec. 42.260-42.300. (Reserved for expansion).

SUBCHAPTER F. GUARANTEED YIELD PROGRAM

Sec. 42.301. PURPOSE. Describes the purpose of the guaranteed yield
component of the Foundation School Program. Specifies the
guaranteed yield allotment may be used for any legal purpose.

Sec. 42.302. ALLOTMENT.

(a) Establishes the formula used to calculate the amount of
funding a district is guaranteed per weighted student in state
and local funds for each cent of tax effort over that required
for the district s local fund assignment up to the maximum
level specified in this subchapter.

(b) Specifies amounts not included in the taxes collected by
the district used to compute the district s enrichment and
facilities tax rate.

Sec. 42.303. LIMITATION ON ENRICHMENT AND FACILITIES TAX RATE.
Provides a limit of $0.64 per $100 of valuation for a school
district enrichment and facilities tax rate unless a greater amount
is adopted by the foundation school fund budget committee.

Sec. 42.304. COMPUTATION OF AID FOR DISTRICT ON MILITARY
RESERVATION OR AT STATE SCHOOL. Describes the tax rate and
property value used to determine state assistance for a school
district located on a federal military installation or at Moody
State School.

Sec. 42.305-42.350. (Reserved for expansion).

SUBCHAPTER G. SCHOOL FACILITIES INVENTORY AND STANDARDS

Sec. 42.351. INVENTORY OF SCHOOL FACILITIES.

(a) Directs the State Board of Education to establish and
update a statewide inventory of school facilities on a
periodic basis.

(b) Specifies information to be included in the inventory.

Sec. 42.352. STANDARDS. Directs the State Board of Education to
establish standards for adequacy of school facilities and specifies
requirements to be included in the standards. Requires that all
facilities constructed after September 1, 1992 meet the standards
in order to be financed with state or local tax funds.

Sec. 42.353-42.400. (Reserved for expansion).

SUBCHAPTER H. SCHOOL FACILITIES ASSISTANCE PROGRAM

Sec. 42.401. DEFINITIONS. Defines "effective tax rate",
"guaranteed wealth level", "instructional facility", and "wealth
per student".

Sec. 42.402. DISTRICT ELIGIBILITY. Delineates the criteria a
district must meet to be eligible for state assistance under this
subchapter.

Sec. 42.403. AMOUNT OF STATE ASSISTANCE. Provides a formula for
determination of the amount of state assistance to which a district
is entitled for an eligible project.

Sec. 42.404. SUPPLEMENTAL STATE ASSISTANCE FOR SMALL SCHOOL
DISTRICTS.
(a) Provides a methodology for determining the amount of
supplemental state assistance to which a district with fewer
than 2,500 students in weighted average daily attendance is
entitled.

(b) Limits district entitlement to supplemental state
assistance.

Sec. 42.405. PROJECT ELIGIBILITY AND APPROVAL.

(a) Requires that projects be instructional facilities to be
eligible for state assistance.

(b) Limits entitlement to one project per district each
biennium.

(c) Requires school districts to submit proposals to the
commissioner to receive state assistance, and specifies the
content of proposals.

(d) Requires proposal submission by a date specified by the
commissioner.

(e) Requires the commissioner to review and approve proposals
that meet requirements of this subchapter and the
commissioner s rules.

(f) Permits modification of proposals by school districts.

Sec. 42.406. LIMITATION ON ASSISTANCE.

(a) Specifies a methodology for determining the maximum
project cost for which a district may receive assistance.

(b) Specifies that projects which have costs that exceed the
limit in (a) are treated as if the cost equals the applicable
limit.

Sec. 42.407. SHORTAGE OF APPROPRIATED FUNDS. Provides a mechanism
for removing approved projects from the list if the total state
assistance for approved projects during a biennium exceeds the
amount appropriated.

Sec. 42.408. USE OF EXCESS APPROPRIATED FUNDS. Provides the
commissioner the authority to use any excess funds appropriated for
the school facilities assistance program for any purpose under the
Foundation School Program.

Sec. 42.409. PAYMENT OF STATE ASSISTANCE.

(a) Provides authority and conditions for the distribution of
warrants to a school district under this subchapter.

(b) Requires districts to provide information concerning the
manner of paying the local share of the project cost.

(c) Permits the commissioner to recompute state assistance if
the commissioner determines that a district has altered
project in a manner which reduces cost.

Sec. 42.410. ADDITIONAL STATE ASSISTANCE.

(a) Provides a methodology for determination of additional
state assistance in the event that the guaranteed wealth level
is increased over the level for the year in which a school
district received assistance under this subchapter.

(b) Specifies that a district may use assistance received
under this section for any legal purpose.

Sec. 42.411-42.450. (Reserved for expansion).

SUBCHAPTER I. SAFE SCHOOLS ASSISTANCE

Sec. 42.451. LOCAL OFF-CAMPUS ALTERNATIVE EDUCATION PROGRAM
ALLOTMENT.

(a) Establishes the formula used to calculate the amount of
funding a district is guaranteed per student in state and
local funds for each cent of tax effort to pay costs of
funding a local off-campus alternative education program
established under Section 37.004.

(b) Limits the use of funds received under this section only
to pay the costs of a local off-campus alternative education
program established under Section 37.004.

Sec. 42.452. REGIONAL ALTERNATIVE EDUCATION PROGRAM ALLOTMENT.

(a) Establishes the formula used to calculate the amount of
funding a district is guaranteed per student in state and
local funds for each cent of tax effort to pay costs of
funding a regional alternative education program established
under Section 37.006.

(b) Limits the use of funds received under this section only
to pay the costs of a regional alternative education program
established under Section 37.006.

(c) Stipulates that a district is eligible for state funds
under this section only if each district participating in the
regional program imposes a tax at the same rate for the
purpose of funding the costs of the program.

CHAPTER 43. PERMANENT SCHOOL FUND AND AVAILABLE SCHOOL FUND

Sec. 43.001. COMPOSITION OF PERMANENT SCHOOL FUND AND AVAILABLE
SCHOOL FUND

(a) Defines the composition of the permanent school fund.

(b) Defines the composition of the available school fund.

Sec. 43.002. TRANSFERS FROM GENERAL REVENUE FUND TO AVAILABLE
FUND. Sets limits on transfers from the general revenue fund to
the available school fund in January and February. Adjusts amounts
transferred in July and August.

Sec. 43.003. INVESTMENT OF PERMANENT SCHOOL FUND. Permits the
State Board of Education to invest the permanent school fund in
securities. Lists the types of securities authorized.

Sec. 43.004. WRITTEN INVESTMENT OBJECTIVES; PERFORMANCE
EVALUATION.

(a) Requires the State Board of Education to develop written
investment objectives concerning the investment of the
permanent school fund.

(b) Requires the board to employ a performance measurement
service to evaluate and analyze the investment results of the
permanent school fund.

Sec. 43.005. EXTERNAL INVESTMENT MANAGERS. Authorizes the State
Board of Education to contract with private professional investment
managers to assist the board in making investments of the permanent
school fund.

Sec. 43.006. PURCHASE AND SALE OR EXCHANGE OF SECURITIES.

(a) Permits the State Board of Education to authorize
purchases, sales, exchanges, and reissues of securities.

(b) Requires the State Board of Education to exercise
judgment and care under the circumstances then prevailing that
persons of ordinary prudence, discretion, and intelligence
exercise.

(c) Requires the custodian of securities to deliver the
securities according to the directions of the State Board of
Education when sold, reissued, or exchanged.

Sec. 43.007. TREATMENT OF PREMIUM AND DISCOUNT.

(a) Requires that premiums paid for investments be treated as
principal. Requires return of premium paid to the permanent
school fund from first interest collected.

(b) Requires discounts received in the purchase of
investments to be paid to the available school fund at the
time the investments are paid off.

Sec. 43.008. PREPAYMENT OF CERTAIN BONDS HELD BY THE PERMANENT
SCHOOL FUND.

(a) Permits the State Board of Education to authorize any
political subdivision to pay off, at any interest paying date,
all or part of outstanding bond indebtedness owned by the
permanent school fund.

(b) Requires governing bodies to apply to the State Board of
Education.

(c) Requires the State Board of Education to take action on
applications in the manner it considers best and to notify the
applicant.

(d) Prohibits payment of commission, premium, or compensation
to a person for performance of duties under this section.

(e) Requires that only tax money collected for the specific
purpose may be used in redeeming, taking up, or paying off of
bonds.

Sec. 43.009. DEFAULT OF SCHOOL DISTRICT SECURITIES HELD BY THE
PERMANENT SCHOOL FUND.

(a) Permits the State Board of Education to seek remedies
when interest and principal have not been paid on bonds issued
by any school district and held by the permanent school fund.
Authorizes the State Board of Education to compel a school
district to levy taxes or exhaust all legal remedies in
collecting delinquent taxes.

(b) Provides for the distribution of revenue collected.

(c) Allows the State Board of Education to specify the method
of crediting payments to the state made by the district as
principal and interest as long as the district is delinquent.

(d) Prohibits the comptroller from issuing warrants from the
foundation school fund to districts which have been in default
in the payment of principal and interest for as long as two
years.

Sec. 43.010. AUTHORIZED REFUNDING OF DEFAULTED SCHOOL BONDS.

(a) Permits the State Board of Education to modify or refund
defaulted bonds owned by the permanent school fund or the
available school fund.

(b) Requires school districts to apply to the State Board of
Education.

(d) Sets the requirements which must be met for an exchange
of bonds, interest coupons, or other evidences of indebtedness
for new refunding bonds.

(e) Prohibits the State Board of Education from releasing or
extinguishing debts to the permanent school fund or available
school fund.

(f) Requires that refunding bonds be in compliance with the
general provisions governing refunding of school district
bonds except as permitted in this section.

Sec. 43.011. REFUNDING OTHER DEFAULTED OBLIGATIONS.

(a) Permits refunding or refinancing of defaulted obligations
to the available school fund, other than bonds of school
districts.

(b) Defines defaulted obligation for this section.

(d) Sets conditions under which a refinancing or refunding
may occur.

(e) Allows the State Board of Education to accept refunding
bonds under certain conditions.

(f) Direct the exchange of refunding bonds for defaulted
obligations on the order of the State Board of Education.

Sec. 43.012. JURISDICTION. Provides for jurisdiction in district
courts of Travis County in any suit on bonds or obligations
belonging to the permanent school fund.

Sec. 43.013. DUTIES OF THE COMPTROLLER.

(a) Requires comptroller to estimate revenue to the available
school fund from all sources by July 1 of each year, and
report the estimate to the State Board of Education.

(b) Requires the comptroller to report on the estimate of
revenue to the available school fund for the following two
years on or before the beginning of each regular session of
the legislature.

(c) Requires the comptroller to certify to the commissioner
on or before the first working day of each month the amount of
money collected during the preceding month and on hand to the
credit of the available school fund.

(d) Provides for warrants from the available school fund to
be issued to each school district by the comptroller for
amounts as certified by the commissioner.

Sec. 43.014. DUTIES OF STATE TREASURER.

(a) Requires the state treasurer to report to the governor
the condition of the permanent school fund and the available
school fund.

(b) Requires the treasurer to provide the report to the State
Board of Education.

(d) Sets terms for payment of warrants drawn on the available
school fund.

(e) Requires the treasurer to exchange or accept refunding
bonds on order of the State Board of Education in lieu of
certain other bonds or obligations.

(f) Requires the treasurer to be the custodian of certain
securities in which the school funds of the state are
invested.

Sec. 43.015. USE OF AVAILABLE SCHOOL FUND. Requires the
appropriation of available school funds for the education of
children in each county.

Sec. 43.016. USE OF COMMERCIAL BANKS AS AGENTS FOR COLLECTION OF
INCOME FROM PERMANENT SCHOOL FUND INVESTMENTS.

(a) Permits the State Board of Education to contract with
commercial banks to receive payments of dividend and interest
on securities held by the permanent school fund.

(b) Describes criteria to be used by the State Board of
Education in selecting a commercial bank.

Sec. 43.017. PARTICIPATION IN FULLY SECURED SECURITIES LOAN
PROGRAM.

(a) Permits the State Board of Education to contract with a
commercial bank to serve as custodian of securities in which
the state permanent school funds are invested and to lend
those securities to brokers and dealers.

(b) Sets the conditions which a commercial bank must meet.

Sec. 43.018. ACCOUNTING TREATMENT OF CERTAIN EXCHANGES. Permits
certain accounting treatment for exchange of permanent school fund
securities in a closely related sale and purchase transaction.
Prescribes the conditions which must be met for the exchange.

CHAPTER 44. FISCAL MANAGEMENT

SUBCHAPTER A. SCHOOL DISTRICT FISCAL MANAGEMENT

Sec. 44.001. FISCAL GUIDELINES.

(a) Requires the commissioner to establish advisory guidelines
relating to the fiscal management of a school district.

(b) Requires the commissioner to report annually to the State
Board of Education the status of school district fiscal
management as reflected by the advisory guidelines and by
statutory requirements.

Sec. 44.002. PREPARATION OF BUDGET.

(a) Requires the superintendent, on or before a date set by
the State Board of Education, to prepare a proposed budget
covering all estimated revenue and proposed expenditures of
the district for the next succeeding fiscal year.

(b) Requires the budget to be prepared according to generally
accepted accounting principles.

Sec. 44.003. RECORDS AND REPORTS. Requires superintendent to keep
all budgets and forms and reports filed on behalf of the district.

Sec. 44.004. BUDGET MEETING; BUDGET ADOPTION.

(a) Requires the president to call a meeting of the board of
trustees for the adoption of a budget for the succeeding
fiscal year.

(b) Requires the president to provide for the publication of
notice of the meeting in a daily, weekly, or biweekly
newspaper published in the district. Requires the president,
if no daily weekly, or biweekly newspaper is published in the
district, to provide for the publication of notice in at least
one newspaper of general circulation in the county in which
the district's central administrative office is located.
Provides that notice published under this subsection is in
addition to notice required by other law. Requires notice
under this subsection to be published no earlier than 30 days
or later than 10 days before the hearing. Authorizes the
district to include the notice required under this subsection
in a notice required under Section 26.06, Tax Code.

(d) Requires adopting of budget before adoption of a tax rate.

Sec. 44.005. FILING OF ADOPTED BUDGET. Requires the budget to be
filed with the Texas Education Agency.

Sec. 44.006. EFFECT OF ADOPTED BUDGET; AMENDMENTS.

(a) Prohibits expending public funds that are not budgeted by
the board of trustees.

(b) Requires all budget amendments to be filed according to
State Board of Education rules.

Sec. 44.007. ACCOUNTING SYSTEM; REPORT.

(a) Requires districts to implement a standardized accounting
system conforming with generally accepted accounting
principles.

(b) Requires districts accounting systems to comply with
minimum requirements of State Board of Education, subject to
review and comment by state auditor.

(c) Requires a report of the revenues and expenditures for the
preceding fiscal year to be filed with the agency on or before
the date set by the State Board of Education.

(d) Requires the State Board of Education to set standards for
districts for reporting management, cost accounting, and
financial information needed to monitor the funding process
and determine educational system costs by district, campus,
and program.

Sec. 44.008. ANNUAL AUDIT; REPORT.

(a) Requires each school district to have its fiscal accounts
audited annually by a certified public accountant.

(b) Requires the audit to conform with State Board of
Education requirements and include an audit of the accuracy of
the fiscal information provided by the district through the
Public Education Information Management System.

(d) Requires the annual audit report to be filed with the
Texas Education Agency not later than 120 days after the end
of the fiscal year.

(e) Requires the Texas Education Agency to monitor the fiscal
management of districts and notify the district board of
trustees and all appropriate parties concerning violations of
rules, laws and regulations. The commissioner is granted
access to all districts records necessary for review of fiscal
management.

Sec. 44.009. FINANCIAL REPORTS TO COMMISSIONER OR AGENCY; FORMS.

(a) All financial reports made by districts to the
commissioner shall be on forms prescribed by the Texas
Education Agency.

(b) The Texas Education Agency is required to minimize the
paperwork burden of districts.

Sec. 44.010. REVIEW BY AGENCY. Requires the budgets, fiscal
reports, and audit reports filed with the agency to be reviewed and
analyzed by the staff of the agency to determine whether legal
requirements have been met and to collect fiscal data needed in
preparing school fiscal reports for the governor and the
legislature.

Sec. 44.011-44.030. (Reserved for expansion).

SUBCHAPTER B. PURCHASES; CONTRACTS; COMPETITIVE BIDDING

Sec. 44.031. CONTRACTS--COMPETITIVE BIDDING.

(a) Requires all contracts proposed to be made by the board of
trustees of a school district for the purchase of any personal
property to be submitted to competitive for each 12-month
period when the property is valued at $25,000 or more.

(b) Allows contracts proposed to be made by the board of
trustees of a school district for the construction,
maintenance, repair, or renovation of any building to be made
by the method that provides the best value to the district.

(d) Authorizes the state auditor to audit purchases of goods
or services by the district.

(e) Authorizes the district to adopt rules and procedures for
the acquisition of goods or services.

(f) Provides that this section prevails over any other law
relating to the purchasing of goods and services except a law
relating to contracting with historically underutilized
businesses.

(g) Exempts professional services from competitive bidding
requirements.

(h) Requires public notice of request for bids in local
newspaper.

(i) Exempts from competitive bidding process any replacement
of equipment that is destroyed or severely damaged if delay
caused by bidding process would interfere with conduct of
classes.

(j) Authorizes the board of trustees of a school district to
acquire computers and computer-related equipment, including
computer software, through the General Services Commission.

(k) Exempts sole source items from competitive bidding
process.

(1) Negates sole source exemptions in law where mainframe
data-processing equipment and peripheral attachments cost in
excess of $15,000 for a single item.

(m) Requires each proposed contract for the purchase or lease
of one or more school buses to be submitted to competitive
bidding when the contract is valued at $20,000 or more.

Sec. 44.032. ENFORCEMENT OF PURCHASE PROCEDURES: CRIMINAL
PENALTIES; REMOVAL; INELIGIBILITY.

(a) Defines component purchases," separate purchases," and
sequential purchases."

(b) Provides that an officer, employee, or agent of a school
district commits a Class B misdemeanor offense if the person
with criminal negligence make or authorizes separate,
sequential, or component purchases to avoid competitive
bidding requirements.

(c) Provides that an officer, employee or agent of a school
district commits a Class B misdemeanor offense if the person,
with criminal negligence violates Section 44.031(a).

(d) Makes certain acts in violation of competitive bidding
requirements a Class C misdemeanor.

(e) Provides that a trustee who is convicted of an offense
under this section is considered to have committed official
misconduct for purposes of Chapter 87, Local Government Code,
and is subject to removal as provided by that chapter and
Section 24, Article V, Texas Constitution. Provides that for
four years after the final conviction, the removed person is
ineligible to be a candidate for or to be appointed or elected
to a public office in this state, is ineligible to be employed
by or act as an agency for the state or a political
subdivision of the state, and is ineligible to receive any
compensation through a contract with the state or a political
subdivision. Provides that this subsection does not prohibit
the payment of retirement benefits to the removed person or
the payment of workers' compensation benefits to the removed
person for an injury that occurred before the commission of
the offense for which the person was removed. Provides that
this subsection does not make a person ineligible for an
office for which the federal or state constitution prescribes
exclusive eligibility requirements.

(f) Authorizes a court to enjoin performance of a contract
made in violation of Section 44.031(a). Authorizes a county
attorney, a district attorney, a criminal district, or a
citizen of the county in which the school district is located
to bring an action for an injunction. Entitles a citizen who
prevails in an action brought under this subsection to
attorney's fees as approved by the court. Deletes existing
Section 4.35, relating to violation of purchase procedures;
criminal penalty; removal; injunction and attorney's fees.

Sec. 44.033. PURCHASES OF PERSONAL PROPERTY VALUED BETWEEN $10,000
AND $25,000.

(a) Prescribes purchasing requirements for personal property
costing between $10,000 and $25,000, in the aggregate, in a
twelve month period.

(b) Requires a district to publish a notice concerning planned
purchases of personal property and requesting interested
persons to submit their names and other information for a
vendor list.

(d) Requires purchases of produce and fuel to be make in
accordance with this section.

Sec. 44.034-44.050. (Reserved for expansion).

SUBCHAPTER C. PENAL PROVISIONS

Sec. 44.051. INTERFERENCE WITH OPERATION OF FOUNDATION SCHOOL
PROGRAM. Provides that an offense under Section 37.10, Penal Code,
is a third degree felony if it is shown on trial of the offense
that the government record was a record, form, report, or budget
required under Chapter 42 or rules adopted under that chapter.
Provides that if the actor's intent is to defraud the state or the
public school system, the offense is a second degree felony.

Sec. 44.052. FAILURE TO COMPLY WITH BUDGET REQUIREMENTS; PENALTY.

(a) Makes expenditure of unbudgeted funds by county
superintendent a Class C misdemeanor.

(b) Makes expenditure of unbudgeted funds by school officials
a Class C misdemeanor.

(d) Authorizes a county or district attorney to take action
against district officials for violation of budget
requirements.

Sec. 44.053. FAILURE OF MUNICIPAL OFFICER TO MAKE TREASURER'S
REPORT; PENALTY. Makes failure to furnish a required report a Class
C misdemeanor.

Sec. 44.054. FAILURE TO TRANSFER STUDENTS AND FUNDS. Makes failure
to transfer students and funds under Subchapter B, Chapter 25, a
Class B misdemeanor.

Sec. 44.055-44.900. (Reserved for expansion).

SUBCHAPTER Z. MISCELLANEOUS PROVISIONS

Sec. 44.901. ENERGY CONSERVATION MEASURES.

(a) Authorizes a board of trustees to make improvements that
will conserve energy.

(b) Describes improvements that qualify as energy conservation
measures.

(d) Authorizes lease-purchase contracts for term not exceeding
10 years.

(e) Authorizes competitive proposal procedures and requires
public notice in newspaper requesting proposals.

(f) Authorizes negotiation of proposal specifications in order
to obtain best final offers before the award of a contract.

CHAPTER 45 SCHOOL DISTRICT FUNDS

SUBCHAPTER A. TAX BONDS AND MAINTENANCE TAXES

Sec. 45.001. BONDS AND BOND TAXES. Allows governing boards of
school districts to issue negotiable coupon bonds, and allows them
to levy, pledge, assess, and collect annual ad valorem taxes for
construction and equipment for school buildings and the purchase of
sites for buildings. Provides rules for bonds.

Sec. 45.002. MAINTENANCE TAXES. Allows governing boards of schools
to levy, assess, and collect annual ad valorem taxes for the
maintenance of public schools.

Sec. 45.003. BOND AND TAX ELECTIONS.

(a) Requires authorization of bond issues and tax rates by a
majority of qualified voters of a district. Provides rules
for the elections.

(b) States the required content of bond propositions related
to the authorization for taxes.

(c) Stipulates that if bonds are voted at any time with the
provision for unlimited ad valorem tax authorization, all
bonds proposed subsequently must be submitted in the same
manner. Prohibits the issuance of bonds with unlimited
authorization if after issuing the bonds the aggregate
principal amount of tax bond indebtedness of the district
would exceed 10 percent of the assessed valuation of taxable
property. Allows the issuance of bonds resulting in an
aggregate principal amount of tax bond indebtedness that
exceeds 10 percent of the district s assessed valuation under
specified conditions.

(d) Specifies the question required to be included in a
proposition submitted to authorize the levy of maintenance
taxes.

Sec. 45.004. REFUNDING BONDS.

(a) Defines "bond" and "total debt service".

(b) Allows governing boards to refund or refinance all or part
of any of the district s outstanding bonds paid from ad
valorem taxes.

(d) Allows refunding bonds to be redeemable before maturity.

(e) Provides procedures for the issuance and delivery of
refunding bonds.

(f) Authorizes the refunding in one or several installment
deliveries or in accordance with other applicable law.

(g) Provides for refund of bonds without issuing refunding
bonds.

(h) Allows for escrow agreements with respect to safekeeping,
investment, reinvestment, administration, or disposition of
the deposits, and states rules for escrow activities.

(i) States that if the governing body or commissioners court
has entered into an escrow or similar agreement, the refunded
bonds are considered to be defeased and are not to be
considered an indebtedness of the district for any purpose.

(j) Provides parameters governing the issuance and terms of
refunding bonds.

(k) Authorizes the refunding bonds to be issued for an
additional amount including the costs and expenses of issuing
the bonds and sufficient to fund any debt service reserve,
contingency or other similar fund deemed necessary by the
applicable governing body.

Sec. 45.005. EXAMINATION OF BONDS BY ATTORNEY GENERAL. Requires
all bonds be submitted to the attorney general for examination.

Sec. 45.006. TAX LIMITATIONS.

(a) Prohibits school districts for imposing a total tax rate
on the $100 valuation of taxable property that exceeds $1.50.

(b) Prohibits districts from imposing taxes on a residence
homestead of a person who tax liability is limited under 1-b(d), Article VIII, Texas Constitution in violation of the
constitutional limit.

(c) Exempts tax rate from the $1.50 calculation taxes required
to collect the taxes pledged and levied for the payment of
principal and interest on debt authorized to be issued by an
election held before April 1, 1991 and issued before September
1, 1992.

(d) Requires districts to demonstrate to the attorney general
the projected ability to pay off the bonds and all previously
issued bonds.

(e) Allows districts to exceed the $1.50 limit to pay the
local share of the cost of constructing, acquiring,
renovating, or repairing an instructional facility for which
the district receives state assistance under Subchapter H,
Chapter 42, without an election.

Sec. 45.007-45.030. (Reserved for expansion)

SUBCHAPTER B. REVENUE BONDS

Sec. 45.031. GYMNASIA, STADIA, AND OTHER RECREATIONAL FACILITIES.
Allows a governing board to acquire, construct, improve, equip,
operate, and maintain gymnasia, stadia, and other recreational
facilities for students.

Sec. 45.032. REVENUE BONDS. Allows governing boards to issue
revenue bonds on gymnasia, stadia, and other recreational
facilities secured by liens on and pledges of all or any part of
any revenues from any rentals, rates, charges, or other revenues
from any or all of the facilities. States other rules for revenue
bonds.

Sec. 45.033. RENTALS, RATES, AND CHARGES. Allows governing boards
to set and collect rentals, rates, and charges from students and
others for the use of facilities.

Sec. 45.034. PLEDGE OF REVENUES. Allows governing boards to pledge
all or any part of revenues from the facilities to the payment of
any bonds issues under this subchapter.

Sec. 45.035. REFUNDING BONDS. Allows governing boards to refund
revenue bonds and states rules for the refunding.

Sec. 45.036. EXAMINATION OF BONDS BY THE ATTORNEY GENERAL.
Requires bonds issued by this subchapter to be submitted to the
attorney general for examination.

Sec. 45.037-45.050. (Reserved for expansion).

SUBCHAPTER C. GUARANTEED BONDS

Sec. 45.051. DEFINITIONS. Defines "board" and "paying agent".

Sec. 45.052. GUARANTEE. Allows the commissioner to guarantee bonds
by the corpus and income of the permanent school fund.

Sec. 45.053. LIMITATION; VALUE ESTIMATES.

(a) Restricts the total amount of outstanding guaranteed
bonds.

(b) Requires the state auditor to analyze the status of
guaranteed bonds and certify the amount that can be
guaranteed.

(c) Requires the commissioner to prepare and the board to
adopt an annual report on the status of the guaranteed bond
program.

Sec. 45.054. ELIGIBILITY. States eligibility requirements for the
guaranteed bond program.

Sec. 45.055. APPLICATION FOR GUARANTEE.

(a) Requires districts seeking the guarantee of eligible bonds
to apply to the commissioner.

(b) States the requirements of the application.

(c) Requires that the application be accompanied by a fee
established by the board to cover the costs of administering
the guarantee program.

Sec. 45.056. INVESTIGATION.

(a) Requires the commissioner to investigate districts
applying for the guaranteed bond program.

(b) Requires the commissioner to endorse the bonds if the
commissioner is satisfied that the bonds should be guaranteed
following the investigation.

Sec. 45.057. GUARANTEE ENDORSEMENT.

(a) Describes the endorsement of bonds.

(b) Requires attorney general approval for the guarantee to be
effective.

Sec. 45.058. NOTICE OF DEFAULT. Requires a defaulting district to
immediately notify the commissioner.

Sec. 45.059. PAYMENT FROM PERMANENT SCHOOL FUND.

(a) States procedures for transfer from the appropriate
account in the permanent school fund to the district s paying
agent of appropriate amounts.

(b) States procedures for payment of the amount due and
forwarding canceled bond or coupon to the state treasurer.
Directs the state treasurer to hold the canceled bond or
coupon on behalf of the permanent school fund.

(c) States procedures for further cancellation of the bond or
coupon following full reimbursement to the permanent school
fund with interest.

Sec. 45.060. BONDS NOT ACCELERATED ON DEFAULT. States that the
default of one school district bond does not change the status of
any other outstanding bonds of the district.

Sec. 45.061. REIMBURSEMENT OF PERMANENT SCHOOL FUND.

(a) States rules for the repayment of district funds to the
permanent school fund if a district defaults on a guaranteed
bond.

(b) Allows the commissioner, in accordance with state board
rules, to reimburse the permanent school fund in a manner
other than that provided in this section.

Sec. 45.062. REPEATED DEFAULTS.

(a) Allows the commissioner in case of default to ask the
attorney general to act to compel a district to comply with
its duties in regard to the bonds after two guaranteed bond
defaults.

(b) Establishes jurisdiction for proceedings under this
section.

Sec. 45.063. RULES. Allows the state board of education to adopt
rules relating to the bond guarantee program.

Sec. 45.064-45.080. (Reserved for expansion).

SUBCHAPTER D. SALE OF SURPLUS REAL PROPERTY; REVENUE BONDS

Sec. 45.081. DEFINITIONS. Defines "district", "board", "real
property" and "bonds".

Sec 45.082. SALE OF PROPERTY; REVENUE BONDS.

(a) Allows a governing body to sell real property and issue
revenue bonds payable from the proceeds of the sale.

(b) Requires that the board determine that the real property
is not required for the current needs of the district for
educational purposes and that the proceeds from the sale will
be used for certain purposes.

(d) Establishes procedures the board must follow in selling
real property.

(e) Requires that the sale must have been previously approved
by a majority of qualified voters casting votes in an election
including the proposition to ascertain approval. Stipulates
the conditions under which an election is not required.

Sec. 45.083. OTHER LAWS NOT APPLICABLE. States that all general
laws pertaining to the sale of public property do not apply to
sales of real property pursuant to this subchapter.

Sec. 45.084. CONTRACTS. Provides rules for the execution of
contracts for constructing or equipping school buildings in the
district or purchasing sites for school buildings.

Sec. 45.085. BOND REQUIREMENTS.

(a) Allows districts to issue revenue bonds to be repaid by
the sale of real property.

(b) Requires bond to be issued by an order of the board.

(d) Provides terms of bonds. Authorizes the subsequent
issuance of parity or subordinate lien bonds according to the
bond order.

(e) Provides for administration and terms in accordance with
the bond order.

(f) Provides authorization for the use and investment of bond
proceeds.

(g) Stipulates the revenues that may be used to pay bonds.

(h) Delineates statutes applicable to bonds issued pursuant to
this subchapter.

(i) Requires submission to the attorney general for
examination.

Sec. 45.086. LIBERAL CONSTRUCTION. Allows for the broad
interpretation of the subchapter and does not limit powers of
districts.

Sec. 45.087. OTHER POWER UNRESTRICTED. States that the subchapter
does not restrict the power of school districts to sell property or
issue bonds as provided by other law.

Sec. 45.088-45.100. (Reserved for expansion).

SUBCHAPTER E. MISCELLANEOUS PROVISIONS

Sec. 45.101. USE OF BOND PROCEEDS FOR UTILITY CONNECTIONS.
Authorizes the use of the proceeds of bonds issued for the
construction and equipment of school buildings to pay the cost
associated with providing water, sewer, or gas services to the
public school buildings.

Sec. 45.102. INVESTMENT OF BOND PROCEEDS IN OBLIGATIONS OF UNITED
STATES OR INTEREST-BEARING SECURED TIME BANK DEPOSITS.

(a) Authorizes a district on order of the board of trustees to
invest bond proceeds in obligations of the United States or
interest-bearing time deposits.

(b) Requires that the type of instruments in which the
proceeds are invested be a type that cannot be cashed, sold,
or redeemed for an amount less than the sum deposited or
invested by the district.

(c) Provides for the liquidation of such investments when the
sums are needed for the purpose for which they were originally
issued.

Sec. 45.103. INTEREST-BEARING TIME WARRANTS.

(a) Authorizes a school district to issue interest-bearing
time warrants to provide funds to renovate or repair school
buildings, purchase school buildings and school equipment,
equip school properties with necessary heating, water,
sanitation, lunchroom, or electric facilities, or to employ a
person to compile taxation data.

(b) Provides the conditions under which a common school
district or rural high school district may issue interest-bearing time warrants.

(c) Limits the amount of interest-bearing time warrants to
five percent of assessed valuation of the district for the
year in which the warrants are issued. Limits the payment of
such warrants to the amount of anticipated surplus income,
exclusive of bond taxes, for the year in which the warrants
are issued. Limits the total amount of outstanding warrants
to $120,00 at any one time.

(d) Provides for the dedication of collections of delinquent
taxes, including interest and penalties, to pay outstanding
time warrants.

(e) Provides for the dedication of amounts equal to any
delinquent taxes, interest, and penalties that are canceled,
waived, released, or reduced to pay outstanding time warrants.

(f) Authorizes the encumbrance and mortgage of certain school
properties as security for such obligations.

(g) Defines interest-bearing time warrant.

(h) Specifies that taxes levied to pay principal and interest
of bonds that are delinquent are not included in the term
delinquent taxes as used in this section.

Sec. 45.104. PLEDGE OF DELINQUENT TAXES AS SECURITY FOR LOAN.

(a) Provides the conditions under which a board of trustees
may pledge its delinquent taxes levied for maintenance
purposes for specific school years as security for a loan and
provides for application of such amounts against the loan as
they are collected.

(b) Prohibits the pledge of delinquent taxes levied for school
bonds as security for a loan.

(d) Specifies the maximum rate of interest that may be borne
by a loan secured by delinquent taxes.

Sec. 45.105. AUTHORIZED EXPENDITURES.

(a) Prohibits the expenditure of school funds except as
provided by this section.

(b) Delineates allowable expenditures of state and county
available funds.

(d) Allows certain school districts to issue negotiable or
nonnegotiable notes and set aside a limited amount of local
funds for the retirement of such notes to buy school sites or
build school buildings.

(e) Allows the governing body of a certain school district
that governs a junior college district to dedicate a specific
percentage of the local tax levy to the use of the junior
college district for prescribed uses and provides applicable
conditions and limitations.

(f) Specifies that funds from a junior college branch campus
maintenance tax by a school district board of trustees may be
used as provided in Section 130.087.

Sec. 45.106. USE OF COUNTY AVAILABLE FUND APPORTIONMENT FOR
VOCATIONAL AND TECHNICAL SCHOOLS.

(a) Directs a district or districts that operate a school
designated as an area vocational school to use its annual
county available school fund apportionment in the operation of
the vocational school or in financing facilities for the
school.

(b) Exempts the county available funds used under this section
from the determination of a district s eligibility for minimum
foundation school program funds.

Sec. 45.107. INVESTMENT OF GIFTS, DEVISES, AND BEQUESTS. Provides
for the investment or retention of gifts, devises, and bequests for
college scholarships to graduates of the district in accordance
with Section 113.056, Property Code unless specifically provided
otherwise by the terms of the gift, devise or bequest.

Sec. 45.108. BORROWING MONEY FOR CURRENT MAINTENANCE EXPENSES.

(a) Authorizes independent or consolidated school districts to
borrow money for the purpose of paying maintenance expenses
and allows evidence of such loans with negotiable notes.
Limits the amount of such loans to 75 percent of the previous
year s income and sets the maximum term for such notes to be
15 years. Authorizes payment of the notes from any available
funds and defines the terms maintenance expenses and
maintenance expenditures.

(b) Requires that notes be issued only after a budget has been
adopted for the currents school year.

(d) Allows a note to contain a certification that it is issued
pursuant to and in compliance with this section and by
resolution of the board of trustees. States that such
certification establishes that the note is a valid obligation
of the district.

Sec. 45.109. CONTRACTS FOR ATHLETIC FACILITIES.

(a) Authorizes any independent school district board of
trustees to contract with a corporation, municipality, or
institution of higher education for the use of any stadium or
other athletic facilities. Limits the contract to no more
than 75 years.

(b) Defines the purposes for which the district may enter into
a contract.

(c) Provides for the payment of the contract obligation from
any source available, including a maintenance tax voted and
pledged for that purpose.

(d) Prohibits the pledge, assessment, levy, or collection of
a maintenance tax under this section unless an election is
held and the tax is favorably voted by a majority of the
qualified voters casting votes in the election.

Sec. 45.110. AUTHORIZED BUT UNISSUED BONDS.

(a) Describes the districts to which this section applies.

(b) Delineates the process for an election to determine
whether authorized or unissued bonds may be issued, sold, and
delivered for other and different purposes.

(c) Authorizes the board of trustees to issue, sell, and
deliver bonds and use the proceeds of such bonds if a majority
of those voting at the election vote in favor of the sale and
delivery of the unissued bonds for the purposes specified in
the election order and notice.

Sec. 45.111. CERTIFICATES OF INDEBTEDNESS; ISSUANCE BY CERTAIN
SCHOOL AND JUNIOR COLLEGE DISTRICTS.

(a) Authorizes certain school districts, including a junior
college districts, to issue interest-bearing certificates of
indebtedness to provide funds for building or equipping school
buildings or refinancing outstanding certificates. Defines
the term certificates.

(b) Directs the governing body of such district to pay such
certificates by appropriating and pledging local funds derived
from maintenance taxes and establishes parameters for such
appropriation and pledge.

(d) Provides restrictions concerning the principal amount of
certificates that may be authorized at any one time.

(e) Defines assessed valuation and prohibits a district with
an assessed valuation of less than $1 million from issuing
certificates under this section.

(f) Provides parameters for the form, denomination, rate of
interest and terms of payment of such instruments.

(g) Provides conditions governing the sale and proceeds of the
certificates.

(h) Defines certificates to be securities under Chapter 8,
Business and Commerce Code.
(i) Provides for the refunding or refinancing of outstanding
certificates.

(j) Requires that a certified copy of all proceedings relating
to the authorization of the certificates be submitted to the
attorney general.

(k) Specifies that the certificates are an indebtedness of the
issuing body and provides for the assumption or adjustment of
such indebtedness if the boundaries of the issuing body are
changed while the certificates remain outstanding.

(l) Defines the governing body of common, independent, and
rural high school, junior college and municipally controlled
districts. Requires that certificates be authorized by order
of the governing body of a district.

Sec. 45.112-45.150. (Reserved for expansion).

SUBCHAPTER F. ATHLETIC STADIUM AUTHORITIES

Sec. 45.151. DEFINITIONS. Defines district, stadium, authority,
board of directors, bond resolution, trust indenture, and trustee.

Sec. 45.152. CREATION OF AUTHORITY.

(a) Provides for creation of an athletic stadium authority
through adoption of a resolution by each district s board of
trustees.

(b) Establishes that an authority is a body politic and
corporate.

Sec. 45.153. BOARD OF DIRECTORS.

(a) Provides for the governance of an authority by a seven-member board of directors. Sets terms and provides for
appointment of members.

(b) Provides for the election of officers.

(d) Authorizes the board to employ a manager and other
employees, experts, agents, and legal counsel.

Sec. 45.154. CONSTRUCTION, ACQUISITION, AND OPERATION OF STADIUM.
Authorizes an authority to construct, acquire, operate, and
maintain stadia. Specifies that a stadium need not be located
inside a district creating the authority.

Sec. 45.155. BONDS.

(a) Allows an authority to issue revenue bonds for any of its
purposes. Provides for bonds to be payable form or secured by
revenue derived from the stadium or stadia or by mortgage or
deed of trust on property of the authority.

(b) Provides procedures for the authorization, execution, and
delivery of bonds.

(d) Authorizes provisions in the bond resolution or trust
indenture for the substitution of bonds that are lost of
mutilated. Establishes that bonds approved and registered do
not need to be reapproved and reregistered if converted or
substituted.

(e) Authorizes the issuance of bonds constituting a junior
lien on the revenue or properties unless prohibited by the
resolution or trust indenture. Authorizes the issuance of
parity bonds under conditions in the bond resolution or trust
indenture.

Sec. 45.156. CONTRACTS WITH SCHOOL DISTRICTS.

(a) Authorizes school district boards of trustees to contract
with any athletic stadium authority for the use of any stadium
owned by the authority for a period of up to 75 years.

(b) Establishes the purposes for which contracts may be
executed.

(c) Authorizes districts to pay the contract obligation from
any source available. Authorizes districts to pledge as
payment a maintenance tax if duly voted and pledged.

Sec. 45.157. EXAMINATION OF BONDS BY ATTORNEY GENERAL. Requires
that bonds issued under this subchapter and applicable records be
submitted to the attorney general.

Sec. 45.158. CHARGES FOR USE OF STADIUM.

(a) Directs the board of directors to charge rates sufficient
to meet the expenses and debt obligations of the authority.

(b) Authorizes the prescription of systems, methods, routines,
and procedures under which the stadium will be operated in the
bond resolution or trust indenture.

Sec. 45.159. DEPOSITORY. Provides for an authority to select a
depository according to procedures for selection of an independent
school district depository.

Sec. 45.160. TAX EXEMPTION. Exempts property owned by an authority
from taxation.

Sec. 45.161. EMINENT DOMAIN. Allows an authority to acquire
property by condemnation.

Sec. 45.162. INVESTMENT OF BOND PROCEEDS. Proves for the investment
of bond proceeds until the money is needed.

Sec. 45.163. ACCEPTANCE OF GIFTS. Authorizes the board to accept,
hold, and administer gifts, donations, and endowments.

Sec. 45.164-45.200. (Reserved for expansion).

SUBCHAPTER G. SCHOOL DISTRICT DEPOSITORY

Sec. 45.201. DEFINITIONS. Defines school district," bank," time
deposit," and approved securities."

Sec. 45.202. SELECTION OF DEPOSITORY. Requires compliance with this
subchapter when selecting a depository.

Sec. 45.203. DEPOSITORY MUST BE A BANK. Requires depository to
conform with definition of term bank."

Sec. 45.204. CONFLICT OF INTEREST.

(a) Does not disqualify a bank from being selected as
depository if member of the board of trustees of the school
district is a stockholder, officer, director, or employee of
a bank.

(b) Prohibits member of the board of trustees of the school
district that is a stockholder, officer, director, or employee
of a bank from voting to award a contact to the bank.

Sec. 45.205 TERM OF CONTRACT. Requires a two-year term for
depository bank contract.

(b) Requires depository bank contract to coincide with
district s fiscal year.

Sec. 45.206. BID NOTICES; BID FORM.

(a) Requires districts to use bank bid form that conforms with
standard form approved by State Board of Education.

(b) Allows a district to add to the standard bank bid form
prescribed by State Board of Education.

Sec. 45.207. AWARD OF CONTRACT.

(a) Prescribes process and criteria for awarding bank bid in
the event of tie bids.

(b) Authorizes a district to direct deposit funds received
from or through the Texas Education Agency into an investment
pool authorized under Chapter 791, Government Code.

Sec. 45.208. DEPOSITORY CONTRACT; BOND.

(a) Requires the bank or banks selected as districts
depositories to enter into contracts that set forth duties of
agreements pertaining to depository conforming to standard
prescribed by State Board of Education.

(b) Requires depository bank to file bond with district to
secure district's fiscal assets.

(d) Requires the bond and surety on bond to be approved by
districts board of trustees.

(e) Requires districts to file depository contract and bond
with Texas Education Agency.

(f) Permits depository banks to pledge securities in lieu of
bond.

Sec. 45.209. INVESTMENT OF DISTRICT FUNDS. Allows a district to
place investments with a bank other than its depository bank as
permitted by depository bank agreement. This subsection prohibits
placement of bond and certificate of indebtedness proceeds in a
savings and loan institution.

Sec. 45.210-45.230. (Reserved for expansion).

SUBCHAPTER H. ASSESSMENT AND COLLECTION OF TAXES.

Sec. 45.231. ALTERNATE METHODS OF SELECTION. Directs the board of
trustees of each independent school district other than a municipal
school district to select a tax assessor-collector in accordance
with this subchapter.

Sec. 45.232. ASSESSOR-COLLECTOR APPOINTED BY BOARD.

(a) Authorizes a board of trustees to appoint a tax assessor-collector for the district for a term of up to three years.

(b) Provides for compensation of the assessor-collector.

Sec. 45.233. APPOINTMENT OF ASSESSOR ONLY.

(a) Authorizes the board of trustees to appoint a tax assessor
and provide by resolution for the collection of taxes by the
county or municipal tax assessor-collector.

(b) Describes the duties of the assessor.

(d) Requires the county or municipal officer designated to
collect the taxes to accept the rolls prepared by the
appointed assessor.

(e) Requires the county or municipal officer designated to
collect the taxes to turn over all school district funds
collected to the depository of the district.

Sec. 45.234. ASSESSMENT AND COLLECTION BY MUNICIPALITY.

(a) Allows an independent school district located entirely or
partly within the boundaries of a municipality to authorize
the tax assessor and tax collector of the municipality to act
as the tax assessor and tax collector for the district.

(b) Requires the municipal assessor and municipal collector to
perform the duties of tax assessor and tax collector for the
school district upon passage of the ordinance or resolution
making available their services.

(c) Authorizes the tax assessor and tax collector to perform
their respective duties in all matters pertaining to the
assessments and collections.

(d) Provides for compensation of the municipality for tax
assessment and collection services and other incidental
expenses.

Sec. 45.235. COOPERATION BETWEEN DISTRICTS.

(a) Allows the trustees of two or more independent school
district to consolidate assessment and collection of taxes by
appointing one person as assessor-collector for all districts
entering into the agreement.

(b) Limits the term of such an assessor-collector to two years
and allows for prescription of additional duties and
qualifications.

(d) Authorizes participating boards to include collection of
delinquent taxes as a duty of the assessor-collector if the
individual is an attorney and provides for additional
compensation for the collection of delinquent taxes.

SECTION 2. TRANSFER, REDESIGNATION, AND AMENDMENT. Amends Chapter
32, Education Code, which is transferred to Subchapter G, Title 3,
Education Code; redesignated as
Chapter 132, Education Code.

SECTION 3. TRANSFER, REDESIGNATION, AND AMENDMENT. Amends Chapter
33, Education Code, which is transferred to Subchapter G, Title 3,
Education Code; redesignated as
Chapter 133, Education Code.

SECTION 4. TRANSFER, REDESIGNATION, AND AMENDMENT. Amends Chapter
34(C), Education Code, which is transferred to Chapter 51,
Education Code; redesignated as
Subchapter R.

SECTION 5. TRANSFER, REDESIGNATION, AND AMENDMENT. Amends Chapter
35, Education Code, which is transferred to Chapter 61, Education
Code, and redesignated as Subchapter P.

SECTION 6. CONFORMING AMENDMENT. Amends Section 41.002(b), Civil
Practice and Remedies Code, to make conforming changes.

SECTION 7. CONFORMING AMENDMENT. Amends Article 2.12, Code of
Criminal Procedures, to make conforming changes.

SECTION 8. AMENDMENT. Amends the heading to Article 37.072, Code
of Criminal Procedure, as follows:

Art. 37.072. New heading: FEE ON CONVICTION OF CERTAIN SEXUAL
OFFENSES

SECTION 9. CONFORMING AMENDMENT. Amends Section 1(c), Article
37.072, Code of Criminal Procedure, to make conforming changes.

SECTION 10. AMENDMENT. Amends Section 3, Article 37.072, Code of
Criminal Procedure, as follows:

Sec. 3. New heading: DEPOSIT OF FEES. Requires the comptroller of
public accounts to deposit fees remitted to the comptroller under
this article to the credit of the foundation school fund. Deletes
existing Subsection (b).

SECTION 11. AMENDMENTS RELATING TO HIGHER EDUCATION. Amends
Chapter 51Z, Education Code, by adding Sections 51.932-51.936, as
follows:

Sec. 51.932. MOTOR VEHICLES OWNED AND USED BY STATE-SUPPORTED
INSTITUTIONS.

(a) Requires a motor vehicle, trailer, or semitrailer that is
the property of and used exclusively by any institution of
higher education to have the name of the institution printed
on the side of the vehicle. Requires the inscription to be in
a color sufficiently different from the body of the vehicle
and to be of letters of sufficient height so that the
lettering is plainly legible at a distance of no less than 100
feet. Provides that this subsection does not apply to a motor
vehicle used by a peace officer commissioner under Subchapter
E or a chancellor or president of an institution of higher
education.

b) Provides that a person commits an offense if the person
operates a vehicle subject to Subsection (a) without the
proper inscription. Provides that an offense under this
subsection is a Class C misdemeanor.

Sec. 51.933. IMMUNIZATION REQUIREMENTS; EXCEPTION.

(a) Authorizes an institution of higher education to require
applicants for admission to be immunized against diphtheria,
rubeola, rubella, mumps, tetanus, and poliomyelitis, except as
provided in Subsection (d).

(b) Authorizes the Texas Board of Health to require
immunizations against the diseases listed in Subsection (a)
and additional diseases for students at any institution of
higher education who are pursuing a course of study in a human
or animal health profession, and for students in times of an
emergency or epidemic in a county where the commissioner of
public health has declared such an emergency or epidemic.

(c) Provides that an institution of higher education, in
conjunction with the Texas Department of Health, should
provide individual notice to each student applying for
admission regarding certain issues concerning immunization.

(d) Sets forth provisions under which no form of immunization
is required for a person's admission to an institution of
higher education.

(e) Provides that the exception provided by Subsection
(d)(1)(B) does not apply in a time of emergency or epidemic
declared by the commissioner of public health.

Sec. 51.934. ASSIGNMENT, TRANSFER, OR PLEDGE OF COMPENSATION.

(a) Defines "employee."

(b) Sets forth provisions by which an employee's assignment,
pledge, or transfer, (transfer) as security for indebtedness,
of any interest in or part of the employee's due salary or
wages is enforceable.

(c) Requires an institution of higher education to honor a
transfer fulfilling the conditions of Subsection (b) without
incurring any liability to the employee executing the
transfer. Provides that payment to any transferee in
accordance with the terms of the instrument is payment to or
for the account of the transferor. Provides that a transfer is
enforceable only to the extent of due salary.

(d) Provides that venue for any suit against the employer of
an employee to enforce a transfer of salary is in the county
where the employing institution is located.

Sec. 51.935. DISRUPTIVE ACTIVITIES.

(a) Prohibits a person or group of persons acting in concert
from wilfully engaging in disruptive activity or disrupting a
lawful assembly on the campus or property of an institution of
higher education.

(b) Provides that, for purposes of this section, disruptive
activity is activity described by Section 37.124(b).

(d) Provides that any person who is convicted the third time
of violating this section is ineligible to attend any
institution of higher education receiving funds from this
state before the second anniversary of the third conviction.

(e) Prohibits this section from being construed to infringe on
any right of free speech or expression guaranteed by the U.S.
Constitution or of this state.

Sec. 51.936. HAZING.

(a) Provides that Chapter 37(F) applies to hazing at an
educational institution under this section.

(b) Defines "educational institution."

(c) Requires each postsecondary educational institution to
distribute to each student during the first three weeks of
each semester a summary of the provisions of Chapter 37F and
a list of organizations that have been disciplined for hazing
or convicted for hazing during the preceding three years.

(d) Requires an institution, if it publishes a general
catalogue, student handbook, or similar publication, to
publish a summary of the provisions of Chapter 37F in each
edition.

SECTION 12. CONFORMING AMENDMENT. Amends Section 61.077(b),
Education Code, to make conforming changes.

SECTION 13. CONFORMING AMENDMENT. Amends Section 105.95(e),
Education Code, to make conforming changes.

SECTION 14. CONFORMING AMENDMENT. Amends Section 105.102(a),
Education Code, to make conforming changes.

SECTION 15. CONFORMING AMENDMENT. Amends Section 52.013(b),
Government Code, to make conforming changes.

SECTION 16. STUDY OF SCHOOL DISTRICT PROPERTY VALUES. Amends
Chapter 403, Government Code, by adding Subchapter M, as follows:

SUBCHAPTER M. STUDY OF SCHOOL DISTRICT PROPERTY VALUES

Sec. 403.301. PURPOSE. Sets forth the purpose of this subchapter.

Sec. 403.302. DETERMINATION OF SCHOOL DISTRICT PROPERTY VALUES.

(a) Requires the comptroller to conduct an annual study using
comparable sales and generally accepted auditing and sampling
techniques to determine the total value of all taxable
property in each school district. Requires the study to
determine the taxable value of all property and of each
category of property in the district and the productivity
value of all land that qualifies for appraisal on the basis of
its productive capacity and for which the owner has applied
for and received a productivity appraisal. Requires the
comptroller to make appropriate adjustments in the study to
account for actions taken under Chapter 41, Education Code.

(b) Requires the comptroller to review the appraisal
standards, procedures, and methodology used by each appraisal
district to determine the taxable value of property in each
school district. Requires the review to test the validity of
the taxable values assigned to each category of property by
the appraisal district using samples selected through sampling
techniques and according to standard valuation, statistical
compilation, and analysis techniques.

(c) Provides that if the comptroller finds in the annual study
that appraisal standards and practices were used by the
appraisal district in valuing a particular category of
property, and that the taxable values assigned to each
category of property by the appraisal district are valid, the
appraisal roll value of that category of property is presumed
to represent taxable value. Requires the comptroller, in the
absence of such a presumption, to estimate the taxable value
of that category of property using standard valuation,
statistical compilation, and analysis techniques.

(d) Defines "taxable value."

(e) Requires the study to determine the values as of January
1 of each year.

(f) Requires the comptroller to publish preliminary findings,
listing values by district, before February 1 of the year
following the year of the study. Requires preliminary findings
to be delivered to each school district and to be certified to
the commissioner of education.

(g) Requires the comptroller, on request of the commissioner
of education or a district, to audit a school district to
determine the total taxable value of property in the district,
including the productivity values of land only if the land
qualifies for appraisal on that basis and the owner of the
land has applied for and received a productivity appraisal.
Requires the comptroller to certify the comptroller's findings
to the commissioner.

Sec. 403.303. PROTEST.

(a) Authorizes a school district or a property owner whose
property is included in the study and whose tax liability on
the property is $100,000 or more to protest the comptroller's
findings by filing a petition with the comptroller. Requires
the petition to be filed no later than 30 days after the
comptroller's findings are certified to the commissioner of
education and to specify the grounds for objection and the
value claimed to be correct by the school district or property
owner.

(b) Requires the comptroller, after receipt of a petition, to
notify the commissioner of the values specified by the school
district or property owner and to hold a hearing. Provides
that the comptroller has the burden to prove the accuracy of
the findings. Provides that until a final decision is made by
the comptroller, the taxable value of property in the district
is determined, according to the value claimed by the school
district or property owner, except that the value to be used
while a final decision is pending may not be less than the
appraisal roll value for the year of the study. Requires the
comptroller, if after a hearing the comptroller concludes that
the findings should be changed, to order the appropriate
changes and to certify the changes to the commissioner.
Requires the comptroller to complete all protest hearings and
certify all changes as necessary to comply with Chapter 42,
Education Code. Provides that a hearing conducted under this
subsection is not a contested case for purposes of Section
2001.003.

(c) Requires the comptroller to adopt procedural rules
governing the conduct of protest hearings. Requires the rules
to provide each protesting school district and property owner
with the requirements for submitting a petition initiating a
protest and to provide each protesting school district and
property owner with adequate notice of a hearing, and
opportunity to present evidence and oral argument, and notice
of the comptroller's decision on the hearing.

(d) Authorizes the comptroller to appeal a determination of a
protest by the comptroller to a district court of Travis
County by filing a petition with the court. Requires an appeal
to be filed no later than 30 days after the school district
receives notification of a final decision on a protest.
Provides that review is conducted by the court sitting without
a jury. Requires the court to remand the determination to the
comptroller if on the review the court discovers that
substantial rights of the school district have been prejudiced
and makes other discoveries.

(e) Prohibits a decision, if in a hearing the comptroller has
not heard the case or read the record, from being made until
a proposal for decision is served on each party and an
opportunity to file exceptions is afforded to each party
adversely affected. Requires an opportunity, if exceptions are
filed, to be afforded to all other parties to file replies to
the exceptions. Requires the proposal for decision to contain
a statement of the reasons for the proposed decision, prepared
by the person who conducted the hearing or by a person who has
read the record. Authorizes the proposal for decision to be
amended pursuant to the exceptions or replies submitted
without again being served on the parties. Authorizes the
parties by written stipulation to waive compliance with this
subsection. Authorizes the comptroller to adopt rules to
implement this subsection.

Sec. 403.304. CONFIDENTIALITY.

(a) Provides that all information the comptroller obtains from
a person, other than a government or agency, under an
assurance that the information will be kept confidential, in
the course of conducting a study of school district values, is
confidential and may not be disclosed.

(b) Sets forth exceptions under which information made
confidential by this section may be disclosed.

SECTION 17. CONFORMING AMENDMENTS. Amends Sections 411.090 and
411.097, Government Code, to make conforming changes.

SECTION 18. AMENDMENT. Amends Section 481.026(a), Government
Code, to delete the requirement of the Texas Literacy Council to
advise the State Board of Education on needs, priorities, and
standards of adult literacy education programs. Redesignates
existing Subdivisions (7)-(14).

SECTION 19. AMENDMENT. Amends Section 481.379(b), Government
Code, to delete the provision that three members of the design
committee are persons with experience in the Apprenticeship and
Training Advisory Committee.

SECTION 20. CONFORMING AMENDMENT. Amends Section 481.151(14),
Government Code, to make conforming changes.

SECTION 21. CONFORMING AMENDMENT. Amends Section 821.001(7),
Government Code, to make conforming changes.

SECTION 22. CONFORMING AMENDMENT. Amends Section 823.403,
Government Code, to make conforming changes.

SECTION 23. CONFORMING AMENDMENT. Amends Sections 825.405(a),
(b), and (h), Government Code, to make conforming changes.

SECTION 24. CONFORMING AMENDMENT. Amends Section 113.287(e),
Natural Resources Code, to make conforming changes.

SECTION 25. CONFORMING AMENDMENT. Amends Section 5.10(a), Tax
Code, to make conforming changes.

SECTION 26. CONFORMING AMENDMENT. Amends Section 5.101(a), Tax
Code, to make conforming changes.

SECTION 27. CONFORMING AMENDMENT. Amends Section 5.102(a), Tax
Code, to make conforming changes.

SECTION 28. CONFORMING AMENDMENT. Amends Section 54.021(d),
Family Code, to make conforming changes.

SECTION 29. CONFORMING AMENDMENT. Amends Section 14.03(c),
Article 601(b), V.T.C.S., to make conforming changes.

SECTION 30. CONFORMING AMENDMENT. Amends Section 98A(b), Article
1446c, V.T.C.S., to make conforming changes.

SECTION 31. CONFORMING AMENDMENT. Amends Section 2, Article
4413(29c), V.T.C.S., to make conforming changes.

SECTION 32. CONFORMING AMENDMENT. Amends Section 2.06(b), Article
5190.7a, V.T.C.S., to make conforming changes.

SECTION 33. CONFORMING AMENDMENT. Amends Section 5(a), Article
6687b, V.T.C.S., to make conforming changes.

SECTION 34. CONFORMING AMENDMENT. Amends Section 105(a), Article
6701d, V.T.C.S., to make conforming changes.

SECTION 35. AUTHORITY OF COMMON OR COMMON CONSOLIDATED SCHOOL
DISTRICT TO CONTRACT FOR GOODS OR SERVICES. Provides for the
authority of common or common consolidated school districts,
operating under former Chapter 22, Education Code, as provided by
Section 11.251, Education Code, to contract for goods or services
as provided by Section 44.031, Education Code. Includes the
stipulations that the trustees of such districts may not create a
deficiency debt against the district, and that a contract of more
than one year does not create a deficiency debt so long as it is
terminable by the trustees, by written notice, no later than the
90th day before the end of the district's fiscal year.

SECTION 36. REPEAL.

(a) Repeals Education Code, as it existed on January 1, 1995:

(1) Chapters 1-31 and 36;

(2) Chapter 35, as added by Chapter 162, Acts of the 73rd
Legislature, Regular Session, 1993; and

(3)Chapter 35, as added by Chapter 347, Acts of the 73rd
Legislature, Regular Session, 1993.

(b) Provides that the identification of a provision listed in
Subsection (a) of this section by the same number in an
earlier section of this Act does not revive or continue in
effect the substance of the repealed provision.

(d) Repeals Section 3.03 (Purchase of Motor Vehicles for
School Districts), Article 601b, V.T.C.S. (State Purchasing
and General Services Act).

(e) Repeals Sections 4(b) and (c), Chapter 559, Acts of the
73rd Legislature, Regular Session, 1993.

(f) Repeals Sections 8.33 and 8.35, Chapter 347, Acts of the
73rd Legislature, Regular Session, 1993.

SECTION 37. SAVINGS PROVISION RELATING TO APPEALS TO COMMISSIONER
OF EDUCATION. Provides that Section 11.13, Education Code, as
redesignated as Section 7.105, Education Code, applies to an action
taken or decision made by the board of trustees of a school
district on or after the effective date of this Act. Provides that
the appeal of an action taken or decision made by a board of
trustees before the effective date of this Act is governed by
Section 11.13, Education Code.

SECTION 38. SAVINGS PROVISION RELATING TO STATE BOARD OF EDUCATION
DISTRICTS. Provides that the deletion of Sections 11.2101(b)-(t),
Education Code, by this Act, is not considered a reapportionment
for any purpose, including for purposes of Section 7.053(a),
Education Code, as added by this Act. Provides that it is the
intention of the legislature that members of the State Board of
Education continue to be elected from districts as those districts
existed under Section 11.2101(b)-(t), Education Code, immediately
before deletion by this Act.

SECTION 39. TRANSITION PROVISION RELATING TO CENTRAL EDUCATION
AGENCY ADVISORY COMMISSIONS.

(a) Provides that the repeal by this Act of Chapter 11H,
Education Code, does not affect the existence of or the
validity of an action taken before the effective date of this
Act by an advisory committee appointed under that subchapter.

(b) Provides that beginning on the effective date of this Act,
the operation of an advisory committee appointed under Chapter
11H, Education Code is governed by Section 7.107, Education
Code, as added by this Act.

SECTION 40. TRANSITION REGARDING TEACHER'S HEARINGS.

(a) Requires the State Board of Education to adopt rules for
the certification of hearing examiners under Section 21.163,
Education Code, no later than November 1, 1995.

(b) Provides that Subchapter D, Chapter 21, Education Code,
applies only to a termination or suspension of a teacher under
that subchapter that is initiated on or after January 1, 1996.
A nonrenewal of a teacher's contract under Subchapter D,
Chapter 21, Education Code, or under Subchapter G, Chapter 21,
Education Code, as that law existed on January 1, 1995, that
is initiated before January 1, 1996, is governed by Subchapter
G, Chapter 21, Education Code, and that law is continued in
effect for that purpose.

SECTION 41. TRANSITION PROVISION RELATING TO CERTAIN TEACHERS
EMPLOYED UNDER PROBATIONARY CONTRACTS. Requires that a teacher
employed under a probationary contract under former Subchapter C
Chapter 13, Education Code, as that subchapter existed on January
1, 1995, other than a teacher returned to probationary status as
provided by former Section 13.110, Education Code, shall, at the
end of the teacher's probationary period, be employed under a term
contract as provided by Subchapter D, Chapter 21, Education Code,
as added by this Act.

SECTION 42. TRANSITION PROVISION RELATING TO SPECIAL EDUCATION
ADVISORY COMMITTEE. Requires members appointed to the special
education continuing advisory committee under Section 29.006,
Education Code, in 1995 to draw lots for nine four-year terms and
eight two-year terms. Requires all members thereafter to be
appointed for four-year terms.

SECTION 43. TRANSITION PROVISION RELATING TO PROPRIETARY SCHOOLS.

(a) Requires the Texas Education Agency and the commissioner
of higher education to enter into an interagency contract for
the transfer of the regulation of proprietary schools from the
Texas Education Agency to the Texas Higher Education
Coordinating Board (coordinating board). Requires the transfer
to take effect on the date specified in the contract, but no
later than February 1, 1996. Sets forth provisions that take
place on the effective date of the transfer.

(b) Requires the commissioner of higher education to publish
the contract in the Texas Register.

(d) Provides that until the effective date of the transfer
under Subsection (a) of this section, a reference in Chapter
132, to the commissioner of higher education is considered to
be a reference to the commissioner of higher education is
considered to be a reference to the commissioner of education,
and a reference to the coordinating board is considered to be
a reference to the Texas Education Agency.

(e) Provides that this section does not affect the validity of
any action taken by the Central Education Agency or the Texas
Education Agency or a civil or administrative proceeding
completed before the effective date of the transfer.

(f) Provides that this section does not affect the validity of
a civil or administrative proceeding, including certification
or rulemaking, in progress on the effective date of the
transfer described in Subsection (a) of this section. Provides
that a civil or administrative proceeding that is in progress
on the effective date of the transfer described in Subsection
(a) of this section continues as if it had been initiated by
the coordinating board under the law in effect on that date.

(g) Provides that all forms, rules, and procedures adopted by
the Central Education Agency or the Texas Education Agency for
the administration or enforcement of Chapter 32, Education
Code, and in effect on the effective date of the transfer
described in Subsection (a) of this section remain in effect
on and after that date as if adopted by the coordinating board
until amended, repealed, withdrawn, or otherwise superseded by
the coordinating board. Provides that a certificate of
approval issued under Chapter 32, Education Code, and in
effect on the effective date of the transfer described in
Subsection (a) of this section remains in effect on and after
that date as if adopted by the coordinating board until the
certificate expires or is revoked or surrendered.

(h) Provides that the change in law made by the amendment to
Section 32.611, Education Code, applies to any proceeding to
recover an administrative penalty under that section as to
which a petition for judicial review is filed on or after the
effective date of this Act. Provides that a proceeding to
recover an administrative penalty under Section 32.611,
Education Code, as to which a petition for judicial review is
filed before the effective date of this Act is governed by
Section 32.611, Education Code.

SECTION 44. TRANSITION PROVISION RELATING TO APPRENTICESHIP
TRAINING PROGRAMS.

(a) Requires the Texas Education Agency and the commissioner
of higher education to enter into an interagency contract for
the transfer of the regulation of apprenticeship training
programs from the Texas Education Agency to the coordinating
board. Requires the transfer to take effect on the date
specified in the contract, but no later than February 1, 1996.
Sets forth provisions that take place on the effective date of
the transfer.

(b) Requires the commissioner of higher education to publish
the contract in the Texas Register.

(d) Provides that until the effective date of a transfer under
Subsection (a) of this section, a reference in Chapter 133,
Education Code, to the commissioner of higher education is
considered to be a reference to the commissioner of education,
and a reference to the coordinating board is considered to be
a reference to the Texas Education Agency or the State Board
for Career and Technical Education.

(e) Provides that this section does not affect the validity of
any action taken by the Central Education Agency, the Texas
Education Agency, the State Board of Vocational Education, or
the State Board for Career and Technical Education, or a civil
or administrative proceeding completed before the effective
date of the transfer.

(f) Provides that this section does not affect the validity of
a civil or administrative proceeding, including program
approval or rulemaking, in progress on the effective date of
the transfer described in Subsection (a) of this section.

(g) Provides that a civil or administrative proceeding that is
in progress on the effective date of the transfer described in
Subsection (a) of this section continues as if it had been
initiated by the coordinating board until the approval expires
or is revoked or surrendered.

SECTION 45. TRANSITION AND SAVINGS PROVISION RELATING TO
OFFENSES. Makes application of this Act prospective.

SECTION 46. CONTINGENT EFFECT OF SECTION 4.003(b), EDUCATION CODE.
Unless Section 3.606, Public Utility Regulatory Act of 1995, as
added by H.B. No. 2128, Acts of the 74th Legislature, Regular
Session, 1995, takes effect, Section 4.003(b), Education Code, does
not take effect.

SECTION 47. REFERENCES TO CENTRAL EDUCATION AGENCY. Provides that
a reference in law to the Central Education Agency means the Texas
Education Agency.

SECTION 48. EFFECT OF CODE ON CONFLICTING ACTS OF 74TH
LEGISLATURE, REGULAR SESSION. Provides that this Act prevails over
any conflicting Act of the 74th Legislature, Regular Session, 1995,
that amends or repeals a provision of Title 1 or 2, Education Code,
regardless of the relative dates of enactment, unless the other
conflicting Act expressly provides otherwise.

SECTION 49. EFFECTIVE DATE.

SECTION 50. EMERGENCY CLAUSE.

COMPARISON OF ORIGINAL TO SUBSTITUTE

CHAPTER 1. GENERAL PROVISIONS

C.S.S.B. 1 does not include the sections on the Dedication to
the People of Texas, The Flying of the State Flag requirement,
Protection of Land Use by Schools or the Oath of Office and
Allegiance. Other than these deletions, the committee substitute
to S.B. 1 makes nonsubstantive changes to the engrossed version of
S.B. 1.

CHAPTER 4. PUBLIC EDUCATION MISSION, OBJECTIVES, GOALS, AND
INFORMATION

C.S.S.B. 1 supplements the engrossed S.B. 1 by expanding its
mission and goals to include parental involvement, stated
objectives and measurable educational goals. S.B. 1 has a
different mission statement which is incorporated into the
committee substitute's academic goals. The committee substitute to
S.B. 1 includes most of the provisions of S.B. 1, except that it
does not include a provision on the organization and administration
of the educational system and a provision requiring the State Board
of Education involvement in the modification of the stated goals.
Further, the committee substitute does not differentiate between
types of students in applying it's objectives as S.B. 1 does in
Goal C.

C.S.S.B. 1 provides for a public education information system
that shall address the needs of educators, state leaders, and the
public for timely and open access to public education information.

CHAPTER 5. DEFINITIONS

C.S.S.B. 1 provides definitions for the same words except for
the definition of a "state-granted charter school" and "regional
education service centers". These descriptions are established
later in the committee substitute in the chapters which apply to
those subject areas.

CHAPTER 7. STATE ORGANIZATION

C.S.S.B. 1 delineates in detail the powers and duties of the
agency, commissioner, and the State Board of Education. The
original does not delineate the powers and duties in this chapter
and gives broad rule-making authority to the S.B.O.E. C.S.S.B. 1
allows the S.B.O.E. to appoint its chairman and gives the governor
the authority to appoint the commissioner without a S.B.O.E
recommendation. C.S.S.B. 1 provides that the governor fill
vacancies of unexpired terms on the S.B.O.E.

CHAPTER 8. REGIONAL EDUCATION SERVICE CENTERS

C.S.S.B. 1 and S.B. 1 provide for a nine-member board of
directors for regional education service centers but C.S.S.B. 1
does not define the composition of the board members.

S.B. 1 gives the commissioner authority to withhold funds
appropriated for the foundation school fund for core services,
facilities and competitive grants. C.S.S.B. 1 provides an
alternative method for funding core and other instructional
services provided by regional education service centers by
establishing a revolving account for each center. C.S.S.B. 1
also provides that certain funds appropriated for instructional
services may be distributed directly to districts for the
provision of those services.

CHAPTER 11. SCHOOL DISTRICTS

C.S.S.B. 1 requires that a district be accredited by the
agency. S.B. 1 requires that a school district demonstrate
satisfactory performance to retain a charter. C.S.S.B. 1 adds
provisions relating to the responsibility of independent school
districts for public education and to the organization of
independent school districts.

C.S.S.B. 1 omits the provisions in S.B. 1 which provide for
three and five member boards in certain districts, and provisions
relating to local school board elections which are covered by the
election code.

C.S.S.B. 1 authorizes limited voting procedures in addition to
cumulative voting. C.S.S.B. 1 delegates authority for determining
a cumulative or limited voting procedure to the board of trustees
with approval of the secretary of state instead of prescribing the
procedure as in S.B. 1.
C.S.S.B. 1 limits board of trustee terms to three or four
years and provides for the transition from six or two year terms.
C.S.S.B. 1 does not provide for the recall of trustees as in S.B.
1.

C.S.S.B. 1 prohibits a trustee from accepting employment with
the district for one year after the trustee s membership on the
board ends. S.B. 1 prohibits a trustee from applying for or
soliciting employment while serving as a board member.

The provisions of C.S.S.B. 1 that relate to a district s
employment policy are less prescriptive than S.B. 1, thus
allowing for more local control.

C.S.S.B. 1 omits provisions in the engrossed bill requiring
commissioner approval of the sale of minerals, as well as
provisions governing the disposition of proceeds from the sale of
property. C.S.S.B. 1 further omits provisions authorizing
combined occupancy structures in certain districts, authorizing
districts to require school uniforms, requiring trustees to
complete a minimum of seven hours of training, and limiting the
types of suits to which the provisions relating to frivolous
suits apply.

C.S.S.B. 1 omits former Chapters 22, 24, 25, 27, and 28 and
substitutes a provision continuing the application of those
chapters to districts operating under the chapters on May 1,
1995, for the incorporation under Subchapter D, Chapter 11, of
S.B. 1 of the substance of those chapter in special-purpose
school district charters issued to districts currently operating
under those chapters.

C.S.S.B. 1 further omits former Chapter 17 and 18 and
substitutes a provision continuing the application of those
chapters to districts and county systems operating under those
chapters on May 1, 1995, for the recodification and amendment of
those chapters in the original as Chapters 14 and 46. C.S.S.B. 1
includes a revision of former Section 11.28 relating to special
purpose school districts created by the State Board of Education.
Those applicable districts are issued special purpose school
district charters in S.B. 1.

C.S.S.B. 1 combines the planning and decision-making
process, and requires the board to adopt a policy to involve the
professional staff, parents, and community members in
establishing and reviewing the district's and campuses'
educational plan, goals, performance objectives, and classroom
instructional programs. It specifies that the business
representatives may reside within or outside of the district.
S.B. 1 does not address plans, and does not provide the exception
for business representatives. S.B. 1 includes a section that
states that any superintendent who intentionally fails to
implement or obstructs the district-level decision process is
subject to discipline by the State Board for Educator
Certification.

C.S.S.B. 1 does not require a district-level site-based
decision-making plan to be submitted to the commissioner, as does
S.B. 1. S.B. 1 also includes a provision than any principal who
fails to implement or obstructs the district-level decision
process is subject to discipline by the State Board for Educator
Certification.

C.S.S.B. 1 addresses district-level planning and decision-making, as well as a separate campus planning and decision making
section in which the specific components of the district and
campus plans are specified.

C.S.S.B. 1 addresses the state responsibilities for the
planning and decision making process, requiring an annual
statewide survey and the commissioner to oversee the provision of
training and support for planning and decision making. S.B. 1
references the commissioner's responsibility for training, but
does not address a statewide survey conducted by the agency.

CHAPTER 12. CHARTERS

C.S.S.B. 1 adds provisions authorizing an independent school
district, school campus, or an educational program to operate
under certain classes of charter as an alternative to operating
in the manner generally provided under Title 2.

The substance of subchapter B of C.S.S.B. 1 is covered in
Subchapter C, Chapter 11, of S.B. 1. C.S.S.B. 1 modifies S.B. 1
bill by increasing the vote of the State Board of Education
required to make a rule applicable to a home-rule district to a
two-thirds vote, reducing the provisions of the Education Code to
which a home-rule school district is subject, reducing the
number of signatures necessary for a petition to create a home-rule district, authorizing the board of trustees to determine the
number of residents to serve on the charter commission, changing
the number of parents on a commission from two to a majority,
deleting the requirement that the commission include educators,
authorizing the board of trustees to set a deadline for
completion of the charter, modifying the required content of the
charter, substituting review of the charter by a district s legal
counsel for review by the commissioner of education, reducing the
number of signatures required for a charter amendment petition,
omitting review of a charter amendment by the commissioner of
education, increasing the time period required between charter
amendment elections, and omitting the requirement to notify the
commissioner of a charter amendment.

The substance of subchapter C. of C.S.S.B. 1 to S.B.. 1 is
similar to Subchapter F, Chapter 11, of S.B. 1. C.S.S.B. 1 adds
provisions for cooperative campus charters, requires a petition
by parents and teachers for issuance of a charter, exempts
chartered campuses or programs from local rules and policies as
provided by the charter, limits the applicability of the
Education Code and rules adopted under the code to chartered
campuses or programs, adds requirements for the content of a
charter, and adds requirements related to eligibility criteria
for admission.

The substance of subchapter D of C.S.S.B. 1 is similar to
Subchapter E, Chapter 11, of S.B. 1 bill, providing for open-enrollment charter schools. C.S.S.B. 1 excludes schools operated
in a school district facility, provides for issuance of the
charter by the board of trustees rather than the State Board of
Education, authorizes the state board to issue a charter on
appeal of the denial of a charter application by a board of
trustees, and modifies and reduces the required content of the
charter. C.S.S.B. 1 does not limit the number of charters
that may be issued under this subchapter.

CHAPTER 13. CREATION, CONSOLIDATION, AND ABOLITION OF A
DISTRICT

C.S.S.B. 1 makes the same mechanisms for creation,
consolidation and abolition of a school district available to all
districts. It also eliminates appeal to commissioner for cases
in which no real property is involved and makes the decision of
the local board final.

C.S.S.B. 1 provides that in cases of detachment, a poorer
district may act independently and without the approval the
remaining, wealthier territory. The substitute also allows for
detachment by popular vote as in addition board action.

CHAPTER 19. SCHOOLS IN THE TEXAS DEPARTMENT OF CRIMINAL JUSTICE

C.S.S.B. 1 does not amend or modify S.B. 1.

CHAPTER 21. EDUCATORS

C.S.S.B. 1 provides for the commissioner and the agency to
have authority over all aspects of educator preparation, whereas
S.B. 1 bill provides for an independent State Board for
Certification to have authority over these regulatory aspects.
C.S.S.B. 1 does not include guidelines and regulations for
Centers for Professional Development and Technology as S.B. 1
bill does. C.S.S.B. 1 has guidelines for an accountability
system for educator preparation which are not as clear and
precise as in S.B. 1. C.S.S.B. 1 does not provide for
certification of teachers of American Sign Language, as in S.B.
1.

S.B. 1 allows people to teach either through the traditional
certification or alternative certification. C.S.S.B. 1 deletes
the requirement for persons required to pass TECAT to be employed
as an educator by allowing school districts to hire persons
without certification with commissioner approval.

Under probationary contracts, S.B. 1 extends the authority
to terminate to the superintendent but C.S.S.B. 1 leaves the
authority for such with the board of trustees. Further,
C.S.S.B. 1 allows 60 days before the last school day to notify a
probationary teacher of termination of employment, while S.B. 1
allows only 45 days. C.S.S.B. 1 allows a teacher to be returned
to probationary status for a period of 3 years. S.B. 1 allows a
return for only a maximum of 2 years. C.S.S.B. 1 mandates
automatic suspension of teaching credentials for abandonment of a
contract without the board s consent. S.B. 1 leaves the
initiative to the district and the discretion for sanctions to
the commissioner of education.

S.B. 1 includes two consecutive appraisals of less than
satisfactory as a ground for discharge at the end of the year
under a continuing contract. C.S.S.B. 1 does not include such a
provision. S.B. 1 creates an exception for home rule districts
to the requirement of consideration of evaluations. C.S.S.B. 1
does not raise this distinction.

Unlike S.B. 1 , C.S.S.B. 1 does not specify who can or will
initiate the nonrenewal action, although the superintendent has
the authority to return a teacher to probationary status under
C.S.S.B. 1.

Under C.S.S.B. 1, a teacher seeking to resign must file
resignation with the board of trustees. Under S.B. 1 ,
resignation is to be filed with the superintendent.

C.S.S.B. 1 allows a district to adopt a policy for severance
pay for educators. S.B. 1 does not provide for this.

In S.B. 1, the district is to set up criteria and the
administrator must qualify for that position pursuant to such
criteria.

On the issue of appeals, C.S.S.B. 1 allows appeals of the
board s decision to be filed in court or with the commissioner.
S.B. 1 does not allow any appeal at the local level, therefore,
the appeal goes directly to the courts.

C.S.S.B. 1 creates multiple tracks for hearings with
discretion left to the board and the educator seeking the
hearing. S.B. 1 requires a district to elect a policy of having
hearing examiners at the local level or before the board of
trustees, and having appeals to the commissioner based on
substantial evidence review. Under the S.B. 1 system of
hearings, the district is locked into the selected method of
hearings for a minimum of one year. The C.S.S.B. 1 does not
require fact findings in the commissioner s decision, unlike S.B.
1. C.S.S.B. 1 does require a commissioner s decision at least 30
days after the response to the petition for review, whereas S.B.
1 allows 60 days for the commissioner s decision.

S.B. 1 designates all appeals of decisions involving term
contracts to a district court in Travis County. C.S.S.B. 1
allows such appeals to be filed in the county in which the
district is located

Unlike C.S.S.B. 1, S.B. 1 provides a mechanism for reporting
hearing examiner s recommendations and/or decisions to the
commissioner for indexing purposes.

Both C.S.S.B. 1 and S.B. 1 recommend appraisal processes for
teachers and administrators. C.S.S.B. 1 provides for teacher
appraisal, a part of which must be the performance of the
teacher's students, whereas S.B. 1 does not include performance
of the teacher's students. C.S.S.B. 1 also requires a system of
incentives for principals of schools which demonstrate gains on
specified criteria.

C.S.S.B. 1 provides for a minimum service of 190 days under
a 10-month contract, 5 days more than in S.B. 1. C.S.S.B. 1
contains a minimum salary schedule with 11 steps. S.B. 1
provides for 21 steps, with an adjustment process which sets the
minimum salaries based on the level of state funding of the
foundation school program. S.B. 1 also contains language which
transitions teachers to the new schedule and recognizes former
placement on the career ladder.

C.S.S.B. 1 lists staff development requirements regarding
numbers of days and activities not delineated in S.B. 1.

CHAPTER 22. SCHOOL DISTRICT EMPLOYEES AND VOLUNTEERS

C.S.S.B. 1 gives the authority to access criminal history of
employees to the State Board of Education while S.B. 1 gives it
to the newly created State Board of Certification. S.B. 1
creates a new entity to govern certification of educators.
C.S.S.B. 1 keeps this function under the commissioner and in the
current agency.

C.S.S.B. 1 requires a report to the State Board of Education
and S.B. 1 requires a report to the new State Board of
Certification.

C.S.S.B. 1 supplements S.B. 1 with the inclusion of a
prohibition of inquiry into religious affiliation of a potential
employee.

CHAPTER 25. ADMISSION, TRANSFER, AND ATTENDANCE

C.S.S.B. 1 omits the references in S.B. 1 to the admission
of citizens of the United States or a legally admitted alien."
For determining admission eligibility of a student residing apart
from a parent, guardian, or other person having lawful control of
the person under a court order, C.S.S.B. 1 substitutes a standard
of whether a student is in the district to participate in
extracurricular activities for the standard in S.B. 1 of whether
a student is in the district to attend public schools. C.S.S.B.
1 omits provisions in S.B. 1 for waiver of the requirement to
admit foreign exchange students and for allowing evidence of
legal responsibility for a child other than order of a court.

C.S.S.B. 1 adds a requirement for the submission of
immunization records with other records required for enrollment
and adds a requirement that a district notify a person enrolling
a child of the penalties for providing false documents or
information. C.S.S.B. 1 omits the provision in S.B. 1 allowing
the Department of Protective and Regulatory Services to
substitute for a parent, guardian, or other person having lawful
control who can t be found.

C.S.S.B. 1 omits the requirement in S.B. 1 that the State
Board of Education establish formulas to calculate tuition rates
for children from other states living in child-caring
institutions.

C.S.S.B. 1 adds a prohibition of the consideration of a
matter relating to a student s national origin or ancestral
language in making assignments and transfers within a district .

C.S.S.B. 1 omits the section in S.B. 1 relating to factors
to be considered in making assignments and transfers within a
district and omits the bond requirement in S.B. 1 for appeal to
district court of a board s denial of a petition relating to a
transfer or assignment.

C.S.S.B. 1 limits students eligible to transfer to another
district to those who are over six years of age. C.S.S.B. 1
omits the provision in S.B. 1 for the adjustment for Foundation
School Program purposes of the property value of a district that
contracts for a student to be educated in another district.
C.S.S.B. 1 adds a requirement that transfers to a bordering state
be approved by the county superintendent and county school
trustees.

C.S.S.B. 1 allows students to attend school in a district if
they are not there for the primary purpose of participating in
extra-curricular activities. S.B. 1 gives districts specific
factors to consider in assigning or transferring students to
another campus.

S.B. 1 states that children between the ages of seven and 17
are required to attend school and prescribes the number of days
they shall attend. C.S.S.B. 1 sets the ages between six and 17
and requires attendance each school day for the entire period the
program of instruction is provided.

C.S.S.B. . 1 adds a provision relating to a student s
exercise of the right to pray or meditate in school.

CHAPTER 26. PARENTAL RIGHTS

CSSB 1 contains no similar provisions.

CHAPTER 28. COURSES OF STUDY; ADVANCEMENT

C.S.S.B. 1 provides for the well-balanced curriculum that
includes English language arts, other languages, mathematics,
science, health, physical education, fine arts, social studies,
economics, business education, and history. S.B. 1 sets forth a
core curriculum of English, mathematics, science and social
studies, and a required curriculum for high school graduation,
including additional subjects outside the core.

C.S.S.B. 1 allows the State Board of Education to determine
the subjects in a well-balanced curriculum for districts not
offering the full Pre-K through Grade 12 program. This language
does not appear in S.B. 1. C.S.S.B. 1 allows the State Board of
Education to designate the essential elements of the well-balanced curriculum. S.B. 1 allows the State Board of Education,
with broad input, to designate the subjects of the core
curriculum and to identify in detail the essential knowledge and
skills for the subjects. In the additional required curriculum
for graduation, the State Board of Education may only publish a
general description of essential knowledge and skills. The State
Board of Education would not be able to designate in detail the
essential knowledge and skills for the required curriculum. In
addition, S.B. 1 directs the State Board of Education, with broad
input, to establish recommended high school programs of study for
college preparation and for broad career concentrations in a
number of areas. C.S.S.B. 1 does not contain this requirement.

CHAPTER 29. EDUCATIONAL PROGRAMS

C.S.S.B. 1 contains a separate section of exceptions to the
rules for bilingual education. C.S.S.B. 1 adds language
directing the Higher Education Coordinating Board to develop a
comprehensive plan to address bilingual teacher supply needs
across the state. C.S.S.B. 1 does not list out the nine areas of
bilingual monitoring and compliance as in S.B. 1, but simply
directs the agency to monitor district programs for adherence to
federal law.

C.S.S.B. 1 permits the State Board of Education only to
develop criteria related to assessing and serving gifted
students, while S.B. 1 gives broad rule-making authority.

C.S.S.B. 1 allows an educationally disadvantaged student to
attend prekindergarten programs while S.B. 1 requires students to
meet income eligibility standards set by the State Board of
Education in order to attend the program.

In addition, C.S.S.B. 1 does not require the board to ensure
district compliance with applicable child care standards, as does
S.B. 1.

C.S.S.B. 1 transfers responsibility for the state plan for
vocational education from the S.B.O.E. and TECWEC to the agency.
It also gives the responsibility for vocational program rules to
the agency instead of the S.B.O.E. as in S.B. 1.

In C.S.S.B. 1, the public education grant program is not a
pilot program as in S.B. 1. Also, C.S.S.B. 1 does not limit
student eligibility for the program to educationally
disadvantaged students, but does limit eligibility to students at
low-performing campuses. In C.S.S.B. 1, the grant program is
applicable to enrollment in school districts rather than
nongovernmental free schools" as in S.B. 1.

C.S.S.B. 1 expands the definition of adult and community
education programs and outlines the process for funding community
education development projects.

C.S.S.B. 1 includes language requiring the agency to develop
a program of organized instruction in driver education and
traffic safety for public schools. S.B. 1 does not require this
but allows a local school district to offer courses in addition
to those in the core or required curriculum.

CHAPTER 30. STATE AND REGIONAL PROGRAMS AND SERVICES

C.S.S.B. 1 makes nonsubstantive changes to S.B. 1.

CHAPTER 31. TEXTBOOKS

C.S.S.B. 1 and S.B. 1 both call for a state-level adoption
process. Highlights of the major differences follow.

C.S.S.B. 1 distinguishes between "electronic textbook" and
"textbook." S.B. 1 defines "textbook" as a book or system of
instructional material that conveys information including
applications using computer-assisted instruction, interactive
video disk, or other computer courseware or magnetic media.

C.S.S.B. 1 specifies that an amount in the State Textbook
Fund equal to $30 multiplied by the total average daily
attendance in the state is to be used for electronic textbooks,
training in the use of electronic textbooks, and textbook
equipment. S.B. 1 includes a school district allotment of $30
per student in average daily attendance as part of the State
Textbook Fund to be used for a variety of instructional material
including electronic media.

C.S.S.B. 1 establishes a six-year adoption cycle for
textbooks other than electronic and a cycle not to exceed four-years for electronic textbooks. S.B. 1 calls for a complete
investigation of textbooks for core subjects every six years with
possible extension of approval beyond six years.

C.S.S.B. 1 calls for adoption by the State Board of
Education of "conforming" and "non-conforming" list of textbooks
and electronic textbooks. Conforming textbooks contain each
essential element; non-conforming textbooks do not contain each
essential element.

S.B. 1 calls for publication by the State Board of Education
of a list of "approved" textbooks for subjects in the core
curriculum and a list of "recommended" textbooks for subjects in
the required curriculum and in the recommended high school
program. Approved textbooks must contain the essential elements.

CHAPTER 32. COMPUTERS AND COMPUTER-RELATED EQUIPMENT

C.S.S.B. 1 requires the State Board of Education to develop
a long-range plan and contains the statement that the S.B.O.E.
must consider accessibility of technology to students with
disabilities. C.S.S.B. 1 requires the agency to establish and
maintain an electronic information transfer system. C.S.S.B. 1
requires the agency to maintain and establish an integrated
telecommunications system and authorizes the Agency to give
priority to school districts with limited financial resources.
C.S.S.B. 1 allows the State Board of Education to establish fees
for services provided under Chapter 32.

S.B. 1 requires the State Board of Education to develop a
long-range plan but does not contain language regarding
accessibility of technology to students with disabilities. S.B.
1 requires the agency to establish and maintain an electronic
information transfer system. S.B. 1 states the State Board of
Education, under the commissioner's recommendation, may establish
a reasonable fee for services provided under this subchapter.
S.B. 1 requires the agency to maintain and establish an
integrated telecommunications system and authorizes the S.B.O.E.
to give priority to school districts with limited financial
resources.

CHAPTER 33. SERVICE PROGRAMS AND EXTRACURRICULAR ACTIVITIES

C.S.S.B. 1 gives the State Board of Education responsibility
for certifying counselors, S.B. 1 placed that duty under a state
board for educator certification.

With regard to the no pass/no play provision, S.B. 1 would
allow only one three-week suspension in junior high school and one
three-week suspension in high school. After that, six-week
suspensions would apply. C.S.S.B. 1 changes the suspension to
three weeks with no limitations.

C.S.S.B. 1 allows participating in UIL activities by
accredited private schools and provides for the sunsetting of UIL
rules effective August 31, 1996.

C.S.S.B. 1 requires that the insurance premiums for school
athletes be paid from gate receipts and other income from athletic
contests and not from any other fund. S.B. 1 does not specify
where the funds must come from.

C.S.S.B. 1 omits the section that requires the agency to
establish a pilot program for the development of community
education child care services.

CHAPTER 34. TRANSPORTATION

C.S.S.B. 1 provides for safety standards for school motor
vehicles to be set by the General Services Commission. S.B. 1
includes the State Board of Education in the process of
establishing standards. C.S.S.B. 1 requires the use of a sign
designating a vehicle as a SCHOOL BUS" and S.B. 1 does not
specifically state this requirement.

C.S.S.B. 1 permits the General Service Commission to adopt
rules to implement the disposal of school buses. S.B. 1 does not
specify this. C.S.S.B. 1 permits school districts to contract
for services from a public or commercial transportation company
or system, or to obtain school buses through contracting for use,
acquisition, or lease-purchase, but does not have an explicit
requirement that the contracts be found to be economically
advantageous. C.S.S.B. 1 does not provide for alternative fuels
requirements as found in S.B. 1.

S.B. 1 makes provisions for transporting fewer than 10
students in passenger cars. C.S.S.B. 1 does not include this
provision, but refers instead to the use of motor vehicles which
meet the safety standards adopted by the General Services
Commission. S.B. 1 describes students entitled to
transportation. C.S.S.B. 1 does not describe an entitlement
within Chapter 34, but does make reference to student eligibility
in Chapter 42.

CHAPTER 37. DISCIPLINE; LAW AND ORDER

C.S.S.B. 1 requires a district level committee to adopt a
student code of conduct that addresses student conduct and the
circumstances under which a student can be removed from a regular
classroom. S.B. 1 has the professional staff of the school
district develop a code, but also includes specific actions for
which a student is to be removed from the classroom.

C.S.S.B. 1 requires school district to establish three
separate alternative education programs: one on each campus, at
least one local off-campus program, and at least one regional
alternative education program. A school district can work with
other districts in establishing a local off-campus program or a
regional program, but at least one regional program must be
established in each region served by an education service center.
The system of removal to each center is based on the severity and
frequency of the offense. S.B. 1 requires each school district,
alone or in conjunction with other districts, establish an
alternative education center.

C.S.S.B. 1 allows a student to return to the regular classroom
upon completing all assigned work and attending the alternative
education program for the specified period, unless a teacher
objects, and the new placement is practicable. S.B. 1 does not
allow a student to be returned to the teacher s classroom without
the teacher s consent unless otherwise decided by the site-based
decision-making team or a team established for these specific
purposes.

C.S.S.B. 1 provides for juvenile probation departments to
develop juvenile justice alternative education programs, subject to
the approval of the Texas Juvenile Probation Commission. A student
may only be transferred to a juvenile justice alternative education
program by a juvenile court. S.B. 1 lists specific actions for
which a student must be expelled, and the subsequent relationships
among the student, the school district and the juvenile court.
S.B. 1 authorizes coordination between the school districts and
juvenile boards concerning students expelled or placed in
alternative education centers, and requires the school district to
appoint at least one educator to act as a liaison officer for
court-related children.

C.S.S.B. 1 identifies the funding sources for the types of
alternative education programs to be the same expenditure per
student as allocated in the regular classroom and local and state
funds generated by local tax effort eligible for a guaranteed
yield. S.B. 1 provides for incentive aid payments to a school
district, juvenile justice agency, and a mental health agency to
collaborate to develop and operate a comprehensive alternative
education program. The incentive aid payments would be obtained
from the foundation school fund.

C.S.S.B. 1 and S.B. 1 contain much of the same language,
except that S.B. 1 includes the following additional provisions:
the chief of police of the school district police department shall
be accountable to the superintendent or designee, and supervise the
school district police officers; a student can posses a paging
device if used for work with a volunteer firefighting organization
or a volunteer emergency medical services organization, or if used
for a purpose authorized by policy of the school district board of
trustees; provides that each school district may develop and
implement a sexual harassment policy to be included in the district
plan; and authorizes the board of trustees to close schools and
work with other state agents to maintain order and public peace.

C.S.S.B. 1 and S.B. 1 contain much of the same language with
similar, but not identical, punitive provisions.

C.S.S.B. 1 makes the personal hazing offense that causes the
death of another a state jail felony, and S.B. 1 makes the same
offense a misdemeanor, punishable by a fine of not less than $5,000
nor more than $10,000 and/or confinement in a county jail for not
less than one year nor more than two years.

CHAPTER 38. HEALTH AND SAFETY

C.S.S.B. 1 makes nonsubstantive changes to S.B. 1.

CHAPTER 39. PUBLIC SCHOOL SYSTEM ACCOUNTABILITY

C.S.S.B. 1 deletes specific mention of the agency adopting
end-of-course tests for grades 9 through 12. C.S.S.B. 1 requires
the commissioner to develop and propose to the legislature by
December 1, 1996, an assessment system for evaluating the progress
of exempted students and requires the addition of performance
indicators from this system by 1998-1999. In reference to group-administered achievement tests adopted by districts, C.S.S.B. 1
requires that state and national norms be computed using data not
more than six years old at administration time. C.S.S.B. 1 also
specifies damages for a company or organization that fails to
comply with the entire section addressing group-administered
achievement tests.

C.S.S.B. 1 maintains TAAS/TASP as one of six indicators used
for accountability. S.B. 1 moves the performance on the TAAS/TASP
equivalent indicator to a separate section so that it is no longer
required to be compared or disaggregated. Additionally, the
reporting of the TAAS/TASP indicator is to expire in 2001.

S.B. 1 maintains that the career/college preparatory indicator
be a percentage of graduates meeting course requirements for the
recommended high school program and does not allow the listing of
"any other indicator adopted by the S.B.O.E." as C.S.S.B. 1 does.
S.B. 1 requires the performance on end-of-course examinations to be
treated like TAAS results and therefore be compared to state
results, required improvement, and comparable improvement.
Finally, S.B. 1 contains a dropout rate reporting process, to
include the use of a Data Review Panel and to create dropout lists
from enrollment files. District verification of derived dropout
lists would be required. C.S.S.B. 1 does not provide for this.

C.S.S.B. 1 adds the percentage of students exempted from the
assessment program, by exemption category, as an indicator.

C.S.S.B. 1 requires the dissemination of the performance
report within the district in a manner adopted by the commissioner.
S.B. 1 requires dissemination of the performance report to include
notification in a newspaper of general circulation in the community
and notification to electronic media serving the community. S.B.
1 adds an optional item to the report: the number of students
placed in alternative education programs. C.S.S.B. 1 does not
require reporting of the number of students in alternative
education.

C.S.S.B. 1 adds the percentage of students exempted from the
assessment program to the campus report card. S.B. 1 adds two
indicators to this report: the results on secondary end-of-course
results; and the percentage of graduating students who meet the
course requirements established by the S.B.O.E. for the recommended
high school program. C.S.S.B. 1 adds the use of the school report
card as a primary consideration by the principal in the evaluation
of campus staff. S.B. 1 does not require that the report card be
used to evaluate campus staff.

C.S.S.B. 1 states that accreditation of a school district is
determined in accordance with this subchapter. S.B. 1 deletes the
use of the term "Accredited" and uses the term "satisfactory
performance" instead. To retain a charter in S.B. 1, all districts
must demonstrate satisfactory performance. S.B. 1 contains an
extra level for academically acceptable which requires an
additional measure of improvement to C.S.S.B. 1.

C.S.S.B. 1 supplements S.B. 1 by explicitly defining the basis
for which on-site investigations may be conducted by the Texas
Education Agency. Furthermore, it supplements the jurisdiction of
the Agency to investigate alternative education programs when
extraordinary number of students are placed in the program.
Finally, in regards to "Sanctions", districts are required to
obtain certain services under contract with other persons and it
requests the State Board of Education to revoke district charter if
the district is rated academically unacceptable.

C.S.S.B. 1 does not include provisions for the creation of a
Data Review Panel or a Paperwork Reduction Commission.
Additionally, it does not include a requirement for State Board of
Education rules to requires the submission of electronic reports or
coordinating the submission of reports through the regional
education service centers, but does direct the board to review its
rules related to submission of electronic accounting reports.
These provisions and requirements are included in S.B. 1. C.S.S.B.
1 requires school district trustees to adopt policies to limit the
number and length of written reports that classroom teachers are
required to prepare.

C.S.S.B. 1 directs the agency to develop a system to collect
student grade retention data from school districts, based on
existing data and data formats, but supplements S.B. 1 through
requirements for districts to collect individual demographic data,
reasons, and retention history for each student who is retained,
recommended for retention but not retained, or recommended for
advancement from kindergarten to a transitional kindergarten or
first grade class.

C.S.S.B. 1 directs school districts to follow records
management requirements of Subtitle C, Title 6, Local Government
Code. This section is not included in S.B. 1.

C.S.S.B. 1 includes general reporting requirements and
requirements for comprehensive, interim, and technology reports
that are similar to S.B. 1. C.S.S.B. 1 does not include
requirements for a public school scholarship program report as in
S.B. 1.

CHAPTER 41. EQUALIZED WEALTH LEVEL

C.S.S.B. 1 supplements S.B. 1 by requiring the commissioner
to adjust the taxable values of a school district that
experiences a decline in taxable values by the amount of the
decline when determining the district s equalized wealth level.
C.S.S.B. 1 also removes the 1996-97 and 1997-98 hold harmless
provisions that do not allow a district s state and local revenue
per weighted student drop below the district s 1992-93 revenue
after exercising an option under Section 41.003(2) or (3).

C.S.S.B. 1 does not include the monthly payment schedule for
purchased attendance credits beginning in 1996-97. C.S.S.B. 1
also does not include the reduction in the amount of attendance
credits purchased for a portion of the district s central
appraisal costs. C.S.S.B. 1 does not include the early agreement
credit that would begin in 1996-97.

C.S.S.B. 1 does not include language that would allow the
commissioner to approve special financial arrangements between
districts if the arrangements would serve the best educational
interest of the state.

CHAPTER 42. FOUNDATION SCHOOL PROGRAM

C.S.S.B. 1 differs from S.B. 1 in that the substitute would
substantively reenact current statute describing the purposes of
the foundation school program. C.S.S.B. 1 does not contain
provisions establishing conditions that must be met for a student
younger than five years of age, other than students enrolled in
prekindergarten programs, to be entitled to the benefits of the
foundation school program. C.S.S.B. 1 refers to the minimum
school year rather than the minimum days of instruction in
defining average daily attendance. C.S.S.B. 1 would
substantively reenact current law relating to annual review of
the Public Education Information Management System. C.S.S.B. 1
does not delineate the venue for certain offenses involving the
foundation school program.

C.S.S.B. 1 differs from S.B. 1 in providing a basic
allotment of $2,300 rather than $2,390 for each student in
average daily attendance. C.S.S.B. 1 would substantively reenact
current statute concerning the small district adjustment.

C.S.S.B. 1 differs from S.B. 1 in that it does not provide a
transfer student allotment. It differs from S.B. 1 in the
adjustments made to funding for small districts. C.S.S.B. 1 does
not include the qualification that district accounting for the
expenditure of state compensatory education funds be under
existing state education agency reporting and auditing
procedures. C.S.S.B. 1 would not reenact the current requirement
pertaining to withholding state compensatory education funds for
a district that fails to comply with reporting required under
Section 29.081(b). C.S.S.B. 1 would not increase the amount
withheld from the compensatory education allotment for programs
under Chapter 33, Subchapter A. C.S.S.B. 1 would substantively
reenact current law concerning preference for funds withheld for
programs under Chapter 33, Subchapter A. C.S.S.B. 1 would not
increase the amount withheld for transfer to the investment
capital fund. C.S.S.B. 1 does not provide for the set aside of
compensatory education funds to finance extended year programs.
C.S.S.B. 1 does not include the qualification that district
accounting for the expenditure of state bilingual education funds
be under existing state education agency reporting and auditing
procedures. C.S.S.B. 1 would substantively reenact current
statute concerning the purposes for which a district s bilingual
education allocation may be used. C.S.S.B. 1 funds regular
transportation services to districts through an allotment based
on the daily cost per regular eligible student of operating and
maintaining the regular transportation system and the linear
density of district s transportation system. C.S.S.B. 1
authorizes the commissioner to approve a district s application
for an additional amount of up to 10 percent of its regular
transportation allotment for transporting children living within
two miles of the school they attend who would be subject to
hazardous traffic conditions if they walked to school and allows
the commissioner to grant an amount set by appropriation for
private or commercial transportation for eligible students from
isolated areas. C.S.S.B. 1 allows districts to be reimbursed for
transporting vocational education students based on the number of
actual miles traveled times the district s official
extracurricular travel per mile rate and establishes an
allocation for transportation services provided to eligible
special education students on a previous year s cost-per-mile
basis. C.S.S.B. 1 increases the allocation for eligible regular
students transported by the regular transportation system by 5
percent for any district or county school board that has complied
with Section 34.004 in accordance with rules of the State Board
of Education. S.B. 1 funds regular transportation services
through an allotment based on the average daily attendance of the
district and the student density of the district. S.B. 1
provides a contingency if the total allotment exceeds the
transportation appropriation and an allotment for the Texas
School for the Deaf. C.S.S.B. 1 would substantively reenact
current statute concerning the gifted and talented student
allotment. C.S.S.B. 1 would substantively reenact current statue
providing for a teacher compensation allotment. S.B. 1 contains
no provision for a teacher compensation allotment

C.S.S.B. 1 differs from S.B. 1 in that the description of
the elements constituting the total cost of the foundation school
program is expanded to include assistance provided under the
school facilities assistance program. C.S.S.B. 1 would
substantively reenact current statute concerning the local share
of program costs. C.S.S.B. 1 would substantively reenact current
provisions regarding falsification of records and reporting such
findings. C.S.S.B. 1 would expand the list of qualified funding
elements to include the amount to be appropriated for the school
facilities assistance program.

C.S.S.B. 1 differs from S.B. 1 in that C.S.S.B. 1 would
substantively reenact current statute concerning the purpose and
allotment under the guaranteed yield program.

C.S.S.B. 1 provides a different mechanism for providing
assistance to school districts for facility construction or
acquisition. C.S.S.B. 1 provides allotments for school districts
based on size of district, property wealth, and project cost. It
requires that districts apply for funding on a project basis, and
limits eligible projects to instructional facilities. A district
is eligible for funding of only one project each biennium. If
insufficient funds are appropriated, projects would be funded in
order of increasing property wealth of the school district until
all funds are exhausted. C.S.S.B. 1 provides for additional
assistance in the event that the guarantee level of the
guaranteed yield in Chapter 42 is increased. S.B. 1 contains a
facilities funding program in Chapter 47. It provides state
assistance to districts based on tax effort needed to service new
debt, or tax effort above a defined level needed to service
existing debt. School districts would not apply for assistance,
but may be required to issue bonds in order to receive state
funding for new construction.

C.S.S.B. 1 supplements S.B. 1 with a program of direct
funding of alternative education campuses. A formula similar to
that of the guaranteed yield would generate funding for
individual school districts or groups of districts, based on
property wealth, tax effort, size of district, and a guarantee
level. School districts could individually operate alternative
education programs, or could choose to fund regional alternative
education programs under Chapter 37. S.B. 1 contains no similar
provisions for funding alternative education programs.

CHAPTER 43. PERMANENT SCHOOL FUNDS AND AVAILABLE SCHOOL FUND

C.S.S.B. 1 does not amend or modify S.B. 1.

CHAPTER 44. FISCAL MANAGEMENT

C.S.S.B. 1 deletes competitive bidding requirements for
construction, maintenance, repair, or renovation of any building
and substitutes provisions allowing districts to award contracts
under alternative methods specified in the statute that would
provide the best value to a district. S.B. 1 retains the
existing $15,000 competitive bidding threshold for such
contracts.

C.S.S.B. 1 does not contain provisions authorizing programs
in districts that would promote participation of historically
underutilized businesses in district contracts. S.B. 1 contains
provisions that authorize programs that would promote contracts
with historically underutilized business by districts located all
or part in a home-rule municipality with a population of 465,000
or more.

CHAPTER 45. SCHOOL DISTRICT FUNDS

C.S.S.B. 1 references Subchapter H, Chapter 42 with regard
to its facility funding determining maximum tax rate. S.B. 1
references Chapter 47 in the computation of the maximum tax rate
a district would be able to set. The two facilities programs
operate differently.

C.S.S.B. 1 limits the taxes imposed on a residence homestead
whose taxes are limited under Section 1-b(d), Article VIII, Texas
Constitution. C.S.S.B. 1 also limits total tax rates to no more
than $1.50 with some exception for existing debt service on rates
necessary to participate in facility funding. In general S.B. 1
would allow a higher tax rate.

S.B. 1 provides mechanisms to recover from facilities
funding amounts paid from the Permanent School Fund on defaulted
bonds. C.S.S.B. 1 contains no similar language since its
facilities program does not operate on the basis of debt service.

SUMMARY OF COMMITTEE ACTION

SB 1 was considered by the committee in a public hearing on April
25, 1995. The committee considered a complete substitute for the
bill.
The following persons testified for the bill:
Lynn Moak, representing TSA; and
Bill Grusendorf, representing TARS.
The following persons testified against the bill:
David Shelton, representing TFA; and
Dr. Carolyn Parker, representing Texas AIDS Network.
The following persons testified neutrally on the bill:
Mike McLamore, representing ATPE; and
Eric Hartman, representing TFT; and
Neal Adams, representing TASA; and
Lonnie Hollingsworth, representing TCTA; and
Edward Manigold, representing TASA; and
Terry Smith, representing Southland ISD; and
Criss Cloudt, representing TEA; and
Kevin O'Hanlon, representing Healthcare America Inc.;
and
Brad Duggan, representing TEPSA; and
Jim Nelson, representing TASB; and
Larry Yawn, representing Houston ISD; and
Pat Linares, representing TEA; and
Richard Kouri, representing TSTA; and
Dianne Doggett, representing TSTA; and
Johnny Veselka, representing TASA; and
Mike Smith, representing Hart ISD; and
Bill Carpenter, representing Cypress-Fairbanks ISD.
The bill was left pending.

SB 1 was considered by the committee in a public hearing on April
26, 1995. The complete substitute was withdrawn and a new
complete substitute was considered.
The following persons testified for the bill:
G.K. Sprinkle, representing TACAA and TCA; and
Kevin O'Hanlon, representing Healthcare America Inc.;
and
Bill Grusendorf, representing TARS.
The following persons testified neutrally on the bill:
Al Kauffman, representing himself; and
Johnny Veselka, representing TASA; and
Patrick Francis, representing TASB; and
Joe Bill Watkins, representing AAP; and
Bill Farney, representing UIL; and
Larry Bradley, representing TASSP;and
Eric Hartman, representing TFT; and
Lonnie Hollingsworth, representing TCTA; and
Richard Powell, representing TASA; and
Bill Carpenter, representing TSA and Cypress-Fairbanks
ISD; and
Mike McLamore, representing ATPE.
The substitute was adopted without objection. The bill was
reported favorably, as substituted, with the recommendation that
it do pass and be printed, by a record vote of 9 ayes, 0 nays, 0
pnv, 0 absent.