By Delisi                                              H.B. No. 727
         76R4269 BDH-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the provision of rewards to schools for student
 1-3     performance.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Chapter 39, Education Code, is amended by adding
 1-6     Subchapter I to read as follows:
 1-7              SUBCHAPTER I. CAMPUS PERFORMANCE INCENTIVE AWARDS
 1-8           Sec. 39.201.  CREATION OF SYSTEM.  The Campus Performance
 1-9     Incentive Awards Program is created to recognize and reward those
1-10     schools that demonstrate progress in achieving the education goals
1-11     of the state.
1-12           Sec. 39.202.  TYPES OF AWARDS.  (a)  The commissioner may
1-13     present a financial award to the schools that the commissioner
1-14     determines have demonstrated the greatest improvement in achieving
1-15     the education goals.  For each full-time professional staff member
1-16     and paraprofessional staff member, each of those schools is
1-17     entitled to $1,500, subject to available funds.  If funds are
1-18     insufficient, money shall be awarded to staff members equally on a
1-19     pro rata basis.
1-20           (b)  The commissioner may present proclamations or
1-21     certificates to additional schools determined to have met or
1-22     exceeded the education goals.
1-23           Sec. 39.203.  AWARDS.  (a)  The criteria that the
1-24     commissioner shall use to select improved schools must be related
 2-1     to the goals in Section 4.002 and must include a comprehensive
 2-2     consideration of performance on the academic excellence indicators
 2-3     adopted under Section 39.051.  For purposes of selecting schools
 2-4     under Section 39.202(a), each school's performance shall be:
 2-5                 (1)  evaluated using longitudinal tracking measures of
 2-6     student performance; and
 2-7                 (2)  compared to state standards and to its previous
 2-8     performance.
 2-9           (b)  The commissioner shall select annually schools qualified
2-10     to receive campus performance incentive awards for their
2-11     performance and report the selections to the governor and the State
2-12     Board of Education.
2-13           (c)  The agency shall notify each school district of the
2-14     manner in which a school in the district may qualify for a campus
2-15     performance incentive award.
2-16           Sec. 39.204.  USE OF AWARDS.  A school receiving a financial
2-17     award under this subchapter must use the award to provide a salary
2-18     supplement to each full-time professional staff member and
2-19     paraprofessional staff member who was employed for at least 90 days
2-20     during the school year for which the award is received.  The school
2-21     must divide the award evenly among all eligible full-time
2-22     professional staff members and paraprofessional staff members.
2-23           Sec. 39.205.  FUNDING.  The award system is funded by amounts
2-24     appropriated from the state lottery account or from other available
2-25     sources, including gifts, grants, and donations accepted for that
2-26     purpose.  The commissioner may solicit and receive grants and
2-27     donations for the purpose of making awards under this subchapter.
 3-1     A small portion of the award funds may be used by the commissioner
 3-2     to pay for the costs associated with presenting awards to schools
 3-3     under this subchapter.  The donations, grants, or legislative
 3-4     appropriations shall be accounted for and distributed by the
 3-5     agency.  The awards are subject to audit requirements established
 3-6     by the State Board of Education.
 3-7           Sec. 39.206.  CONFIDENTIALITY.  All information and reports
 3-8     received by the commissioner under this subchapter from schools or
 3-9     school districts deemed confidential under Chapter 552, Government
3-10     Code, are confidential and may not be disclosed in any public or
3-11     private proceeding.
3-12           SECTION 2.  Section 466.355(b), Government Code, is amended
3-13     to read as follows:
3-14           (b)  Money in the state lottery account may be used only for
3-15     the following purposes and shall be distributed as follows:
3-16                 (1)  the payment of prizes to the holders of winning
3-17     tickets;
3-18                 (2)  the payment of costs incurred in the operation and
3-19     administration of the lottery, including any fees received by a
3-20     lottery operator, provided that the costs incurred in a fiscal
3-21     biennium may not exceed an amount equal to 12 percent of the gross
3-22     revenue accruing from the sale of tickets in that biennium;
3-23                 (3)  the establishment of a pooled bond fund, lottery
3-24     prize reserve fund, unclaimed prize fund, and prize payment
3-25     account; [and]
3-26                 (4)  the transfer to the Texas Education Agency of any
3-27     amount appropriated for the current state fiscal year for the
 4-1     Campus Performance Incentive Awards Program under Subchapter I,
 4-2     Chapter 39, Education Code; and
 4-3                 (5)  the balance, after creation of a reserve
 4-4     sufficient to pay the amounts needed or estimated to be needed
 4-5     under Subdivisions (1) through (4) [(3)], to be transferred to the
 4-6     foundation school fund, on or before the 15th day of each month.
 4-7           SECTION 3.  Sections 21.357 and 39.111, Education Code, are
 4-8     repealed.
 4-9           SECTION 4.  This Act takes effect September 1, 1999, and
4-10     applies beginning with the 2000-2001 school year.
4-11           SECTION 5.  The importance of this legislation and the
4-12     crowded condition of the calendars in both houses create an
4-13     emergency and an imperative public necessity that the
4-14     constitutional rule requiring bills to be read on three several
4-15     days in each house be suspended, and this rule is hereby suspended.