By Longoria                                           H.B. No. 1130
         76R3405 BDH-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the creation of the Education Testing and
 1-3     Accountability Department for public school system accountability.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 5.001, Education Code, is amended by
 1-6     amending Subdivisions (4)-(7) and adding Subdivisions (8) and (9)
 1-7     to read as follows:
 1-8                 (4)  "Department" means the Education Testing and
 1-9     Accountability Department.
1-10                 (5)  "Educationally disadvantaged" means eligible to
1-11     participate in the national free or reduced-price lunch program
1-12     established under 42 U.S.C. Section 1751 et seq.
1-13                 (6)  "Executive director" means the executive director
1-14     of the department.
1-15                 (7) [(5)]  "Educator" means a person who is required to
1-16     hold a certificate issued under Subchapter B, Chapter 21.
1-17                 (8) [(6)]  "Open-enrollment charter school" means a
1-18     school that has been granted a charter under Subchapter D, Chapter
1-19     12.
1-20                 (9) [(7)]  "Regional education service centers" means a
1-21     system of regional and educational services established in Chapter
1-22     8.
1-23           SECTION 2.  Section 7.003, Education Code, is amended to read
1-24     as follows:
 2-1           Sec. 7.003.  LIMITATION ON AUTHORITY.  An educational
 2-2     function not specifically delegated to the comptroller, the agency,
 2-3     or the board under this code is reserved to and shall be performed
 2-4     by school districts or open-enrollment charter schools.
 2-5           SECTION 3.  Section 7.021(b)(1), Education Code, is amended
 2-6     to read as follows:
 2-7           (b)(1)  The agency shall administer and with the comptroller
 2-8     shall monitor compliance with education programs required by
 2-9     federal or state law, including federal funding and state funding
2-10     for those programs.
2-11           SECTION 4.  Chapter 7, Education Code, is amended by adding
2-12     Subchapter E to read as follows:
2-13                     SUBCHAPTER E. EDUCATION TESTING AND
2-14                          ACCOUNTABILITY DEPARTMENT
2-15           Sec. 7.151.  EDUCATION TESTING AND ACCOUNTABILITY DEPARTMENT
2-16     POWERS AND DUTIES; COMPOSITION.  (a)  The Education Testing and
2-17     Accountability Department has the powers and duties provided by
2-18     Subsection (b), which shall be carried out with the advice and
2-19     consent of the comptroller.
2-20           (b)  The department shall:
2-21                 (1)  perform duties in connection with public school
2-22     system accountability under this code; and
2-23                 (2)  review and revise the Public Education Information
2-24     Management System (PEIMS) in accordance with Section 42.006.
2-25           (c)  The comptroller and the department staff comprise the
2-26     department.
2-27           Sec. 7.152.  EXECUTIVE DIRECTOR.  (a)  The comptroller shall
 3-1     appoint the department executive director.
 3-2           (b)  The executive director shall report directly to the
 3-3     comptroller.
 3-4           Sec. 7.153.  INSPECTION TEAMS.  (a)  The executive director
 3-5     shall appoint four-person teams to visit school districts or
 3-6     individual schools to monitor compliance with education programs
 3-7     required by federal or state law, including federal funding and
 3-8     state funding for those programs.
 3-9           (b)  Each inspection team under this section must include an
3-10     educator, an administrator, an expert on federal and state
3-11     education law, and an auditor, and each team may be augmented by
3-12     agency personnel, regional or local education personnel, and
3-13     graduate students from state-supported institutions of higher
3-14     education.
3-15           (c)  The auditor from each team shall serve as team chief and
3-16     as the authorized representative of the executive director and must
3-17     make a period available during each visit to a school district or
3-18     individual school to hear complaints under Sections 7.154 and
3-19     26.011.  The executive director may hear complaints not resolved at
3-20     the local level.
3-21           Sec. 7.154.  APPEALS.  (a)  Except as provided by Subsection
3-22     (e), a person may appeal in writing to the executive director if
3-23     the person is aggrieved by:
3-24                 (1)  the school laws of this state;
3-25                 (2)  an action or decision of any school district board
3-26     of trustees that violates:
3-27                       (A)  the school laws of this state; or
 4-1                       (B)  a provision of a written employment contract
 4-2     between the school district and a school district employee, if a
 4-3     violation causes or would cause monetary harm to the employee; or
 4-4                 (3)  an action or decision of the commissioner or
 4-5     agency.
 4-6           (b)  Except as provided by Subsection (c), the executive
 4-7     director, after due notice to the parties interested, shall hold a
 4-8     hearing and issue a decision without cost to the parties involved.
 4-9     In conducting a hearing under this subsection, the executive
4-10     director has the same authority relating to discovery and conduct
4-11     of a hearing as a hearing examiner has under Subchapter F, Chapter
4-12     21.  This section does not deprive any party of any legal remedy.
4-13           (c)  In an appeal against a school district, the executive
4-14     director shall issue a decision based on a review of the record
4-15     developed at the district level under a substantial evidence
4-16     standard of review.
4-17           (d)  A person aggrieved by a decision of the executive
4-18     director may appeal to a district court in Travis County.  An
4-19     appeal must be made by serving the executive director with citation
4-20     issued and served in the manner provided by law for civil suits.
4-21     The petition must state the action or decision from which the
4-22     appeal is taken.  At trial, the court shall determine all issues of
4-23     law and fact.
4-24           (e)  This section does not apply to:
4-25                 (1)  a case to which Subchapter G, Chapter 21, applies;
4-26     or
4-27                 (2)  a student disciplinary action under Chapter 37.
 5-1           (f)  In this section:
 5-2                 (1)  "Record" includes, at a minimum, an audible
 5-3     electronic recording or written transcript of all oral testimony or
 5-4     argument.
 5-5                 (2)  "School laws of this state" means Title 1 and this
 5-6     title and rules adopted under those titles.
 5-7           Sec. 7.155.  ARBITRATION.  The executive director or a
 5-8     representative designated by the executive director shall act as an
 5-9     arbitrator in disputes arising under Sections 7.154 and 26.011.
5-10           SECTION 5.  Section 8.002, Education Code, is amended to read
5-11     as follows:
5-12           Sec. 8.002.  PURPOSE.  Regional education service centers
5-13     shall:
5-14                 (1)  assist school districts in improving student
5-15     performance in each region of the system;
5-16                 (2)  enable school districts to operate more
5-17     efficiently and economically; [and]
5-18                 (3)  implement initiatives assigned by the legislature
5-19     or the commissioner; and
5-20                 (4)  provide personnel to augment a department
5-21     inspection team as      requested by the comptroller.
5-22           SECTION 6.  Section 11.201(d), Education Code, is amended to
5-23     read as follows:
5-24           (d)  The duties of the superintendent include:
5-25                 (1)  assuming administrative responsibility and
5-26     leadership for the planning, operation, supervision, and evaluation
5-27     of the education programs, services, and facilities of the district
 6-1     and for the annual performance appraisal of the district's staff;
 6-2                 (2)  assuming administrative authority and
 6-3     responsibility for the assignment and evaluation of all personnel
 6-4     of the district other than the superintendent, including personnel
 6-5     used to augment a department inspection team as requested by the
 6-6     comptroller;
 6-7                 (3)  making recommendations regarding the selection of
 6-8     personnel of the district other than the superintendent, as
 6-9     provided by Section 11.163;
6-10                 (4)  initiating the termination or suspension of an
6-11     employee or the nonrenewal of an employee's term contract;
6-12                 (5)  managing the day-to-day operations of the district
6-13     as its administrative manager;
6-14                 (6)  preparing and submitting to the board of trustees
6-15     a proposed budget as provided by Section 44.002;
6-16                 (7)  preparing recommendations for policies to be
6-17     adopted by the board of trustees and overseeing the implementation
6-18     of adopted policies;
6-19                 (8)  developing or causing to be developed appropriate
6-20     administrative regulations to implement policies established by the
6-21     board of trustees;
6-22                 (9)  providing leadership for the attainment of student
6-23     performance in the district based on the indicators adopted under
6-24     Section 39.051 and other indicators adopted by the State Board of
6-25     Education or the district's board of trustees;
6-26                 (10)  organizing the district's central administration;
6-27     and
 7-1                 (11)  performing any other duties assigned by action of
 7-2     the board of trustees.
 7-3           SECTION 7.  Section 11.252(b), Education Code, is amended to
 7-4     read as follows:
 7-5           (b)  A district's plan for the improvement of student
 7-6     performance is not filed with the agency or the department, but the
 7-7     district must make the plan available to the agency or the
 7-8     department on request.
 7-9           SECTION 8.  Section 11.253(g), Education Code, is amended to
7-10     read as follows:
7-11           (g)  Each campus-level committee shall hold at least one
7-12     public meeting per year.  The required meeting shall be held after
7-13     receipt of the annual campus rating from the department [agency] to
7-14     discuss the performance of the campus and the campus performance
7-15     objectives.  District policy and campus procedures must be
7-16     established to ensure that systematic communications measures are
7-17     in place to periodically obtain broad-based community, parent, and
7-18     staff input, and to provide information to those persons regarding
7-19     the recommendations of the campus-level committees.
7-20           SECTION 9.  Section 12.013(b), Education Code, is amended to
7-21     read as follows:
7-22           (b)  A home-rule school district is subject to:
7-23                 (1)  a provision of this title establishing a criminal
7-24     offense;
7-25                 (2)  a provision of this title relating to limitations
7-26     on liability; and
7-27                 (3)  a prohibition, restriction, or requirement, as
 8-1     applicable, imposed by this title or a rule adopted under this
 8-2     title, relating to:
 8-3                       (A)  the Public Education Information Management
 8-4     System (PEIMS) and inspection by department teams to the extent
 8-5     necessary to monitor compliance with this subchapter as determined
 8-6     by the executive director [commissioner];
 8-7                       (B)  educator certification under Chapter 21 and
 8-8     educator rights under Sections 21.407, 21.408, and 22.001;
 8-9                       (C)  criminal history records under Subchapter C,
8-10     Chapter 22;
8-11                       (D)  student admissions under Section 25.001;
8-12                       (E)  school attendance under Sections 25.085,
8-13     25.086, and 25.087;
8-14                       (F)  inter-district or inter-county transfers of
8-15     students under Subchapter B, Chapter 25;
8-16                       (G)  elementary class size limits under Section
8-17     25.112, in the case of any campus in the district that is
8-18     considered low-performing under Section 39.131(b);
8-19                       (H)  high school graduation under Section 28.025;
8-20                       (I)  special education programs under Subchapter
8-21     A, Chapter 29;
8-22                       (J)  bilingual education under Subchapter B,
8-23     Chapter 29;
8-24                       (K)  prekindergarten programs under Subchapter E,
8-25     Chapter 29;
8-26                       (L)  safety provisions relating to the
8-27     transportation of students under Sections 34.002, 34.003, 34.004,
 9-1     and 34.008;
 9-2                       (M)  computation and distribution of state aid
 9-3     under Chapters 31, 42, and 43;
 9-4                       (N)  extracurricular activities under Section
 9-5     33.081;
 9-6                       (O)  health and safety under Chapter 38;
 9-7                       (P)  public school accountability under
 9-8     Subchapters B, C, D, and G, Chapter 39;
 9-9                       (Q)  equalized wealth under Chapter 41;
9-10                       (R)  a bond or other obligation or tax rate under
9-11     Chapters 42, 43, and 45; and
9-12                       (S)  purchasing under Chapter 44.
9-13           SECTION 10.  Section 12.056(b), Education Code, is amended to
9-14     read as follows:
9-15           (b)  A campus or program for which a charter is granted under
9-16     this subchapter is subject to:
9-17                 (1)  a provision of this title establishing a criminal
9-18     offense; and
9-19                 (2)  a prohibition, restriction, or requirement, as
9-20     applicable, imposed by this title or a rule adopted under this
9-21     title, relating to:
9-22                       (A)  the Public Education Information Management
9-23     System (PEIMS) and inspection by department teams to the extent
9-24     necessary to monitor compliance with this subchapter as determined
9-25     by the executive director [commissioner];
9-26                       (B)  criminal history records under Subchapter C,
9-27     Chapter 22;
 10-1                      (C)  high school graduation under Section 28.025;
 10-2                      (D)  special education programs under Subchapter
 10-3    A, Chapter 29;
 10-4                      (E)  bilingual education under Subchapter B,
 10-5    Chapter 29;
 10-6                      (F)  prekindergarten programs under Subchapter E,
 10-7    Chapter 29;
 10-8                      (G)  extracurricular activities under Section
 10-9    33.081;
10-10                      (H)  health and safety under Chapter 38; and
10-11                      (I)  public school accountability under
10-12    Subchapters B, C, D, and G, Chapter 39.
10-13          SECTION 11.  Section 12.104(b), Education Code, is amended to
10-14    read as follows:
10-15          (b)  An open-enrollment charter school is subject to:
10-16                (1)  a provision of this title establishing a criminal
10-17    offense; and
10-18                (2)  a prohibition, restriction, or requirement, as
10-19    applicable, imposed by this title or a rule adopted under this
10-20    title, relating to:
10-21                      (A)  the Public Education Information Management
10-22    System (PEIMS) and inspection by department teams to the extent
10-23    necessary to monitor compliance with this subchapter as determined
10-24    by the executive director [commissioner];
10-25                      (B)  criminal history records under Subchapter C,
10-26    Chapter 22;
10-27                      (C)  high school graduation under Section 28.025;
 11-1                      (D)  special education programs under Subchapter
 11-2    A, Chapter 29;
 11-3                      (E)  bilingual education under Subchapter B,
 11-4    Chapter 29;
 11-5                      (F)  prekindergarten programs under Subchapter E,
 11-6    Chapter 29;
 11-7                      (G)  extracurricular activities under Section
 11-8    33.081;
 11-9                      (H)  health and safety under Chapter 38; and
11-10                      (I)  public school accountability under
11-11    Subchapters B, C, D, and G, Chapter 39.
11-12          SECTION 12.  Section 13.051(j), Education Code, is amended to
11-13    read as follows:
11-14          (j)  If both boards of trustees of the affected districts
11-15    disapprove the petition, the decisions may not be appealed.  If the
11-16    board of trustees of only one affected district disapproves the
11-17    petition, an aggrieved party to the proceedings in either district
11-18    may appeal the board's decision to the executive director
11-19    [commissioner] under Section 7.154 [7.057].  An appeal under this
11-20    subsection is de novo.  In deciding the appeal, the executive
11-21    director [commissioner] shall consider the educational interests of
11-22    the students in the affected territory and the affected districts
11-23    and the social, economic, and educational effects of the proposed
11-24    boundary change.
11-25          SECTION 13.  Section 19.010(b), Education Code, is amended to
11-26    read as follows:
11-27          (b)  The district shall prepare a report for each fiscal year
 12-1    documenting district activities under the strategic plan.  Not
 12-2    later than January 31 of each year, the district shall file the
 12-3    report for the preceding fiscal year with the board, the governor,
 12-4    the lieutenant governor, the speaker of the house of
 12-5    representatives, the department, and the agency.
 12-6          SECTION 14.  Section 26.003(b), Education Code, is amended to
 12-7    read as follows:
 12-8          (b)  The decision of the board of trustees concerning a
 12-9    request described by Subsection (a)(2) or (3) may be appealed to
12-10    the executive director or a representative designated by the
12-11    executive director.  On appeal, the executive director or the
12-12    designated representative shall act as an arbitrator in the
12-13    dispute.  If the decision of the arbitrator is unsatisfactory to
12-14    the parent, the parent may appeal to a district court [is final and
12-15    may not be appealed].
12-16          SECTION 15.  Section 26.005, Education Code, is amended to
12-17    read as follows:
12-18          Sec. 26.005.  ACCESS TO STATE ASSESSMENTS.  A [Except as
12-19    provided by Section 39.023(e), a] parent is entitled to review in
12-20    the presence of an assessment administrator [access to] a copy of
12-21    each state assessment instrument administered under Section 39.023
12-22    to the parent's child.
12-23          SECTION 16.  Section 26.011, Education Code, is amended to
12-24    read as follows:
12-25          Sec. 26.011.  COMPLAINTS.  The board of trustees of each
12-26    school district shall adopt a grievance procedure under which the
12-27    board shall address each complaint that the board receives
 13-1    concerning violation of a right guaranteed by this chapter.  The
 13-2    board of trustees must attempt to resolve disputes locally.  If a
 13-3    dispute cannot be resolved locally, the executive director or a
 13-4    designated representative of the executive director must act as an
 13-5    arbitrator in the dispute.  A party to the dispute may appeal an
 13-6    arbitration decision to a district court.
 13-7          SECTION 17.  Section 29.001, Education Code, is amended to
 13-8    read as follows:
 13-9          Sec. 29.001.  STATEWIDE PLAN.  (a)  The agency shall develop,
13-10    and modify as necessary, a statewide design, consistent with
13-11    federal law, for the delivery of services to children with
13-12    disabilities in this state that includes rules for the
13-13    administration and funding of the special education program so that
13-14    a free appropriate public education is available to all of those
13-15    children between the ages of three and 21.  The statewide design
13-16    shall include the provision of services primarily through school
13-17    districts and shared services arrangements, supplemented by
13-18    regional education service centers.  The agency shall also develop
13-19    and implement a statewide plan with programmatic content that
13-20    includes procedures designed to:
13-21                (1)  ensure state compliance with requirements for
13-22    supplemental federal funding for all state-administered programs
13-23    involving the delivery of instructional or related services to
13-24    students with disabilities;
13-25                (2)  facilitate interagency coordination when other
13-26    state agencies are involved in the delivery of instructional or
13-27    related services to students with disabilities;
 14-1                (3)  periodically assess statewide personnel needs in
 14-2    all areas of specialization related to special education and pursue
 14-3    strategies to meet those needs through a consortium of
 14-4    representatives from regional education service centers, local
 14-5    education agencies, and institutions of higher education and
 14-6    through other available alternatives; and
 14-7                (4)  ensure that regional education service centers
 14-8    throughout the state maintain a regional support function, which
 14-9    may include direct service delivery and a component designed to
14-10    facilitate the placement of students with disabilities who cannot
14-11    be appropriately served in their resident districts.[;]
14-12          (b)  The department shall develop procedures designed to:
14-13                (1) [(5)]  allow the department [agency] to effectively
14-14    monitor and periodically conduct site visits of all school
14-15    districts to ensure that rules adopted under this section are
14-16    applied in a consistent and uniform manner, to ensure that
14-17    districts are complying with those rules, and to ensure that annual
14-18    statistical reports filed by the districts and not otherwise
14-19    available through the Public Education Information Management
14-20    System under Section 42.006, are accurate and complete;
14-21                (2) [(6)]  ensure that appropriately trained personnel
14-22    are involved in the diagnostic and evaluative procedures operating
14-23    in all districts and that those personnel routinely serve on
14-24    district admissions, review, and dismissal committees;
14-25                (3) [(7)]  ensure that an individualized education
14-26    program for each student with a disability is properly developed,
14-27    implemented, and maintained in the least restrictive environment
 15-1    that is appropriate to meet the student's educational needs;
 15-2                (4) [(8)]  ensure that, when appropriate, each student
 15-3    with a disability is provided an opportunity to participate in
 15-4    career and technology and physical education classes, in addition
 15-5    to participating in regular or special classes; and
 15-6                (5) [(9)]  ensure that each student with a disability
 15-7    is provided necessary related services.
 15-8          SECTION 18.  Section 29.011(e), Education Code, is amended to
 15-9    read as follows:
15-10          (e)  Each district shall develop and annually review an
15-11    individual transition plan (ITP) for each student enrolled in a
15-12    special education program who is at least 16 years of age.  The ITP
15-13    shall be developed in a separate document from the individualized
15-14    education program (IEP) and may not be considered a part of the
15-15    IEP.  The school district shall coordinate development of the ITP
15-16    with any participating agency as provided in the memorandum of
15-17    understanding in order to provide continuity and coordination of
15-18    services among the various agencies and between the ITP and IEP.
15-19    The district shall request the participation in the development of
15-20    the ITP of any participating agency recommended by school personnel
15-21    or requested by the student or the student's parent.  The district
15-22    shall invite the student and the student's parents or guardians to
15-23    participate in the development of the ITP.  Only those components
15-24    of the ITP that are the responsibility of the district may be
15-25    incorporated into the student's IEP.  [Only the failure to
15-26    implement those components of a student's ITP that are included in
15-27    the IEP are subject to the due process procedures of the
 16-1    Individuals with Disabilities Education Act (20 U.S.C. Section 1400
 16-2    et seq.) or to Texas Education Agency complaint procedures.  The
 16-3    failure of the district to develop and annually review an ITP for a
 16-4    student is subject only to the Texas Education Agency complaint
 16-5    procedures and not to the due process procedures of the Individuals
 16-6    with Disabilities Education Act (20 U.S.C. Section 1400 et seq.).]
 16-7    A monitoring visit under Section 29.010 shall include a review of
 16-8    the transition planning requirements under this section.  A school
 16-9    district is not liable for the failure of another agency to
16-10    implement those components of the ITP that are designated as the
16-11    responsibility of that agency under the memorandum of
16-12    understanding.  The district shall notify the other agency in
16-13    writing that the components of the ITP were not properly
16-14    implemented.  The district shall terminate the memorandum of
16-15    understanding and seek another source for implementation of the
16-16    components of the ITP if the other agency does not correct the
16-17    deficiency in a reasonable period of time.
16-18          SECTION 19.  Section 29.056, Education Code, is amended by
16-19    adding Subsection (i) to read as follows:
16-20          (i)  A district may not offer a bilingual education or
16-21    special language program to a student for more than three years
16-22    unless the district obtains a waiver from the commissioner.  An
16-23    excessive number of waiver requests by a district, as determined by
16-24    the commissioner, is grounds for a special inspection by a
16-25    department team under Section 7.153.
16-26          SECTION 20.  Section 29.064, Education Code, is amended to
16-27    read as follows:
 17-1          Sec. 29.064.  APPEALS.  A parent of a student enrolled in a
 17-2    school district offering bilingual education or special language
 17-3    programs may appeal to the executive director or a representative
 17-4    designated by the executive director [commissioner] if the district
 17-5    fails to comply with the requirements established by law or by the
 17-6    agency as authorized by this subchapter.  If the parent disagrees
 17-7    with the placement of the student in the program, the parent may
 17-8    appeal that decision to a department inspection team chief [the
 17-9    board of trustees].  Appeals shall be conducted in accordance with
17-10    procedures adopted by the comptroller [commissioner].
17-11          SECTION 21.  Section 29.083, Education Code, is amended to
17-12    read as follows:
17-13          Sec. 29.083.  STUDENT RETENTION INFORMATION.  The department
17-14    [agency] shall collect data from school districts through the
17-15    Public Education Information Management System (PEIMS) relating to
17-16    grade level retention of students.  The department shall provide
17-17    the agency with the results of the  student retention data.
17-18          SECTION 22.  Section 29.186(c), Education Code, is amended to
17-19    read as follows:
17-20          (c)  Notwithstanding any other provision of this code, the
17-21    program shall:
17-22                (1)  offer a curriculum consistent with Section
17-23    28.002(a);
17-24                (2)  establish graduation requirements consistent with
17-25    rules adopted under Section 28.025 but which reflect integrated
17-26    curriculum and course requirements;
17-27                (3)  administer the assessment instrument required
 18-1    under Section 39.023(c) [39.023(b)]; and
 18-2                (4)  be exempt from administering assessment
 18-3    instruments required under Section 39.023(d) [39.023(c)].
 18-4          SECTION 23.  Sections 37.006(i) and (j), Education Code, are
 18-5    amended to read as follows:
 18-6          (i)  The student or the student's parent or guardian may
 18-7    appeal the superintendent's decision under Subsection (h) to the
 18-8    board of trustees.  The student may not be returned to the regular
 18-9    classroom pending the appeal.  The board shall, at the next
18-10    scheduled meeting, review the notice provided under Article
18-11    15.27(g), Code of Criminal Procedure, and receive information from
18-12    the student, the student's parent or guardian, and the
18-13    superintendent or superintendent's designee and confirm or reverse
18-14    the decision under Subsection (h).  The board shall make a record
18-15    of the proceedings.  If the board confirms the decision of the
18-16    superintendent or superintendent's designee, the board shall inform
18-17    the student and the student's parent or guardian of the right to
18-18    appeal to the executive director or a representative designated by
18-19    the executive director [commissioner] under Subsection (j).
18-20          (j)  Notwithstanding Section 7.154(e) [7.057(e)], the
18-21    decision of the board of trustees under Subsection (i) may be
18-22    appealed to the executive director or a representative designated
18-23    by the executive director [commissioner] as provided by Section
18-24    7.154 [Sections 7.057(b), (c), (d), and (f)].  The student may not
18-25    be returned to the regular classroom pending the appeal.
18-26          SECTION 24.  Section 37.009(f), Education Code, is amended to
18-27    read as follows:
 19-1          (f)  Before a student may be expelled under Section 37.007,
 19-2    the board or the board's designee must provide the student a
 19-3    hearing at which the student is afforded appropriate due process as
 19-4    required by the federal constitution and which the student's parent
 19-5    or guardian is invited, in writing, to attend.  At the hearing, the
 19-6    student is entitled to be represented by the student's parent or
 19-7    guardian or another adult who can provide guidance to the student
 19-8    and who is not an employee of the school district.  If the school
 19-9    district makes a good-faith effort to inform the student and the
19-10    student's parent or guardian of the time and place of the hearing,
19-11    the district may hold the hearing regardless of whether the
19-12    student, the student's parent or guardian, or another adult
19-13    representing the student attends.  If the decision to expel a
19-14    student is made by the board's designee, the decision may be
19-15    appealed to the board.  Notwithstanding Section 7.154(e), the [The]
19-16    decision of the board may be appealed to the executive director or
19-17    a representative designated by the executive director.  The
19-18    decision of the executive director or the designated representative
19-19    is binding on both parties, except that the decision may be
19-20    appealed by trial de novo to a district court of the county in
19-21    which the school district's central administrative office is
19-22    located.
19-23          SECTION 25.  Section 39.022, Education Code, is amended to
19-24    read as follows:
19-25          Sec. 39.022.  ASSESSMENT PROGRAM.  The department [State
19-26    Board of Education] by rule shall create and implement a statewide
19-27    assessment program that is primarily performance-based to ensure
 20-1    school accountability for student achievement that achieves the
 20-2    goals provided under Section 4.002.  After adopting rules under
 20-3    this section, the department [State Board of Education] shall
 20-4    consider the importance of maintaining stability in the statewide
 20-5    assessment program when adopting any subsequent modification of the
 20-6    rules.
 20-7          SECTION 26.  Sections 39.023(a), (c), (d), (g), and (h),
 20-8    Education Code, are amended to read as follows:
 20-9          (a)  The department [agency] shall adopt appropriate
20-10    criterion-referenced assessment instruments designed to assess
20-11    competencies in reading, writing, mathematics, social studies, and
20-12    science.  All students, except students [assessed under Subsection
20-13    (b) or] exempted under Section 39.027, shall be assessed in:
20-14                (1)  reading and mathematics, annually in grades three
20-15    through nine [eight];
20-16                (2)  writing, in grades four and eight; and
20-17                (3)  social studies and science, at an appropriate
20-18    grade level determined by the State Board of Education.
20-19          (c)  The department [agency] shall also adopt secondary
20-20    exit-level assessment instruments designed to assess competencies
20-21    in mathematics and English language arts.  The English language
20-22    arts section must include the assessment of writing competencies.
20-23    [If a student is in a special education program under Subchapter A,
20-24    Chapter 29, the student's admission, review, and dismissal
20-25    committee shall determine whether any allowable modification is
20-26    necessary in administering to the student an assessment instrument
20-27    required under this subsection or whether the student should be
 21-1    exempted under Section 39.027(a)(2).]  The department [State Board
 21-2    of Education] shall administer the assessment instruments.  The
 21-3    department [State Board of Education] shall adopt a schedule for
 21-4    the administration of secondary exit-level assessment instruments.
 21-5    Each student who did not perform satisfactorily on any secondary
 21-6    exit-level assessment instrument when initially tested shall be
 21-7    given multiple opportunities to retake that assessment instrument.
 21-8          (d)  The department [agency] shall adopt end-of-course
 21-9    assessment instruments for students in secondary grades who have
21-10    completed Algebra I, Biology I, English II, and United States
21-11    history.  [If a student is in a special education program under
21-12    Subchapter A, Chapter 29, the student's admission, review, and
21-13    dismissal committee shall determine whether any allowable
21-14    modification is necessary in administering to the student an
21-15    assessment instrument required under this subsection or whether the
21-16    student should be exempted under Section 39.027(a)(2).]
21-17          (g)  The department [State Board of Education] may adopt one
21-18    appropriate, nationally recognized, norm-referenced assessment
21-19    instrument in reading and mathematics to be administered to a
21-20    selected sample of students in the spring.  If adopted, a
21-21    norm-referenced assessment instrument must be a secured test.  The
21-22    state may pay the costs of purchasing and scoring the adopted
21-23    assessment instrument and of distributing the results of the
21-24    adopted instrument to the school districts.  A district that
21-25    administers the norm-referenced test adopted under this subsection
21-26    shall report the results to the department [agency] in a manner
21-27    prescribed by the department [commissioner].
 22-1          (h)  The department [agency] shall notify school districts
 22-2    and campuses of the results of assessment instruments administered
 22-3    under this section at the earliest possible date determined by the
 22-4    department [State Board of Education] but not later than the
 22-5    beginning of the subsequent school year.
 22-6          SECTION 27.  Subchapter B, Chapter 39, Education Code, is
 22-7    amended by adding Section 39.0235 to read as follows:
 22-8          Sec. 39.0235.  STUDENT PREPARATION FOR ASSESSMENT
 22-9    INSTRUMENTS.  (a)  In preparing students for an assessment
22-10    instrument adopted under Section 39.023, a school may not:
22-11                (1)  teach students through the use of previous
22-12    versions of the assessment instrument; or
22-13                (2)  instruct students on the format of a statewide
22-14    assessment instrument before one week before the date the
22-15    assessment instrument is to be administered.
22-16          (b)  If the executive director determines that a school
22-17    district has violated this section, the commissioner may withhold
22-18    up to $1,000 for each classroom in which a violation occurred and
22-19    for each day on which a violation occurred from the state funding
22-20    under Chapter 42.  If the district does not receive state funding
22-21    under Chapter 42, the district shall remit an amount equal to the
22-22    penalty to the comptroller for deposit in the foundation school
22-23    fund.
22-24          SECTION 28.  Section 39.024, Education Code, is amended to
22-25    read as follows:
22-26          Sec. 39.024.  SATISFACTORY PERFORMANCE.  (a)  Except as
22-27    otherwise provided by this subsection, the State Board of Education
 23-1    shall determine the level of performance considered to be
 23-2    satisfactory on the assessment instruments.  [The admission,
 23-3    review, and dismissal committee of a student being assessed under
 23-4    Section 39.023(b) shall determine the level of performance
 23-5    considered to be satisfactory on the assessment instruments
 23-6    administered to that student in accordance with criteria
 23-7    established by agency rule.]
 23-8          (b)  Each school district shall offer an intensive program of
 23-9    instruction for students who did not perform satisfactorily on an
23-10    assessment instrument administered under this subchapter.  The
23-11    intensive programs for students who did not perform satisfactorily
23-12    on an assessment instrument under Section 39.023(a) or (c) shall be
23-13    designed to enable the students to be performing at grade level at
23-14    the conclusion of the next regular school term.  [The intensive
23-15    programs for students who did not perform satisfactorily on an
23-16    assessment instrument under Section 39.023(b) shall be designed by
23-17    each student's admission, review, and dismissal committee to enable
23-18    the student to attain a standard of annual growth on the basis of
23-19    the student's individualized education program.]
23-20          (c)  The agency shall develop study guides to assist students
23-21    in achieving the goals of Section 4.002 [for the assessment
23-22    instruments administered under Sections 39.023(a) and (c)]. To
23-23    assist parents in providing assistance during the period that
23-24    school is recessed for summer, each school district shall
23-25    distribute the study guides to parents of students who do not
23-26    perform satisfactorily on one or more parts of an assessment
23-27    instrument administered under this subchapter.  The commissioner
 24-1    shall retain a portion of the total amount of funds allotted under
 24-2    Section 42.152(a) that the commissioner considers appropriate to
 24-3    finance the development and distribution of the study guides and
 24-4    shall reduce each district's allotment proportionately.
 24-5          SECTION 29.  Section 39.026, Education Code, is amended to
 24-6    read as follows:
 24-7          Sec. 39.026.  LOCAL OPTION.  In addition to the assessment
 24-8    instruments adopted [by the agency] and administered by the
 24-9    department [State Board of Education], a school district may adopt
24-10    and administer criterion-referenced or norm-referenced assessment
24-11    instruments, or both, at any grade level.  A norm-referenced
24-12    assessment instrument adopted under this section must be
24-13    economical, nationally recognized, and state-approved.
24-14          SECTION 30.  Section 39.027, Education Code, is amended to
24-15    read as follows:
24-16          Sec. 39.027.  EXEMPTION.  (a)  A student may be exempted from
24-17    the administration of an assessment instrument under the following
24-18    sections, but the student is considered to have failed the
24-19    instrument for purposes of school performance rankings and
24-20    evaluation:
24-21                (1)  Section 39.023(a) [or (b)] if the student is
24-22    eligible for a special education program under Section 29.003 and
24-23    the student's individualized education program does not include
24-24    instruction in the essential knowledge and skills under Section
24-25    28.002 at any grade level;
24-26                (2)  Section 39.023(c) or (d) if the student is
24-27    eligible for a special education program under Section 29.003 and:
 25-1                      (A)  the student's individualized education
 25-2    program does not include instruction in the essential knowledge and
 25-3    skills under Section 28.002 at any grade level; or
 25-4                      (B)  the assessment instrument, even with
 25-5    allowable modifications, would not provide an appropriate measure
 25-6    of the student's achievement as determined by the student's
 25-7    admission, review, and dismissal committee; or
 25-8                (3)  Section 39.023 if the student is of limited
 25-9    English proficiency, as defined by Section 29.052.
25-10          (b)  The department [State Board of Education] shall adopt
25-11    rules under which a dyslexic student who is not exempt under
25-12    Subsection (a)  may use procedures including oral examinations if
25-13    appropriate or may be allowed additional time or the materials or
25-14    technology necessary for the student to demonstrate the student's
25-15    mastery of the competencies the assessment instruments are designed
25-16    to measure.
25-17          (c)  The executive director [commissioner] shall develop and
25-18    adopt a process for reviewing the exemption process of a school
25-19    district or shared services arrangement that gives an exemption
25-20    under Subsection (a)(1) as follows:
25-21                (1)  to more than five percent of the students in the
25-22    special education program[, in the case of a district or shared
25-23    services arrangement with an average daily attendance of at least
25-24    1,600]; or
25-25                (2)  to students that have spent more than three years
25-26    in a bilingual education program for students with limited English
25-27    proficiency [more than 10 percent of the students in the special
 26-1    education program, in the case of a district or shared services
 26-2    arrangement with an average daily attendance of at least 190 and
 26-3    not more than 1,599; or]
 26-4                [(3)  to the greater of more than 10 percent of the
 26-5    students in the special education program or to at least five
 26-6    students in the special education program, in the case of a
 26-7    district or shared services arrangement with an average daily
 26-8    attendance of not more than 189].
 26-9          [(d)  Notwithstanding Subsection (a), in any year preceding
26-10    the adoption and administration of assessment instruments under
26-11    Section 39.023(b), a student who is eligible for a special
26-12    education program under Section 29.003 may be exempted from the
26-13    administration of an assessment instrument under Section 39.023(a)
26-14    if the assessment instrument, even with allowable modifications,
26-15    would not provide an appropriate measure of the student's
26-16    achievement as determined by the student's admission, review, and
26-17    dismissal committee.  This subsection expires September 1, 2000.]
26-18          [(e)  In this section, "average daily attendance" is computed
26-19    in the manner provided by Section 42.005.]
26-20          SECTION 31.  Section 39.030(a), Education Code, is amended to
26-21    read as follows:
26-22          (a)  In adopting academic skills assessment instruments under
26-23    this subchapter, the department, the comptroller, [State Board of
26-24    Education] or a school district  shall ensure the security of the
26-25    instruments and tests in their preparation, administration, and
26-26    grading.  Meetings or portions of meetings held by the department,
26-27    the comptroller, [State Board of Education] or a school district at
 27-1    which individual assessment instruments or assessment instrument
 27-2    items are discussed or adopted are not open to the public under
 27-3    Chapter 551, Government Code, and the assessment instruments or
 27-4    assessment instrument items are confidential.
 27-5          SECTION 32.  Sections 39.032(b), (c), (d), and (e), Education
 27-6    Code, are amended to read as follows:
 27-7          (b)  A company or organization that grades an assessment
 27-8    instrument shall report the results to the district and to the
 27-9    department [agency] by campus and district and in comparison to
27-10    state and national averages, unless the department [agency]
27-11    requests a report of the results in another form.
27-12          (c)  State and national norms of averages shall be computed
27-13    using data that are not more than six years old at the time the
27-14    assessment instrument is administered and that are representative
27-15    of the group of students to whom the assessment instrument is
27-16    administered.  The standardization norms shall be based on a
27-17    national probability sample that meets accepted standards for
27-18    educational and psychological testing and shall be updated at least
27-19    every six years using proven psychometric procedures approved by
27-20    the department [State Board of Education].
27-21          (d)  A company or organization that fails to comply with this
27-22    section is liable to the state in an amount equal to three times
27-23    the amount of actual damages.  The actual damages are presumed to
27-24    be at least equal to the amount charged by the company or
27-25    organization to a school district for the assessment instrument,
27-26    including any charge for grading the assessment instrument.  The
27-27    attorney general, a district attorney, or a county attorney may
 28-1    bring suit to collect the damages on the request of the department
 28-2    [State Board of Education] or on the request of a student or a
 28-3    parent or guardian of a student to whom the assessment instrument
 28-4    was administered.
 28-5          (e)  The department [State Board of Education] shall adopt
 28-6    rules for the implementation of this section and for the
 28-7    maintenance of the security of the contents of all assessment
 28-8    instruments.
 28-9          SECTION 33.  Sections 39.033(a), (b), and (c), Education
28-10    Code, are amended to read as follows:
28-11          (a)  Under an agreement with the department [agency], a
28-12    private school may administer an  assessment instrument adopted
28-13    under this subchapter to students at the school.
28-14          (b)  An agreement under this section must require the private
28-15    school to provide to the executive director [commissioner] the
28-16    information described by Section 39.051(b) and to maintain
28-17    confidentiality in compliance with Section 39.030.
28-18          (c)  A private school must reimburse the department [agency]
28-19    for the cost of administering an assessment instrument under this
28-20    section.  The department [State Board of Education] shall determine
28-21    the cost under this section.  The per-student cost may not exceed
28-22    the cost of administering the same assessment to a student enrolled
28-23    in a public school district.
28-24          SECTION 34.  Sections 39.051(a), (b), (c), (d), and (e),
28-25    Education Code, are amended to read as follows:
28-26          (a)  The department [State Board of Education] shall adopt a
28-27    set of indicators of the quality of learning on a campus.  The
 29-1    department [State Board of Education] biennially shall review the
 29-2    indicators for the consideration of appropriate revisions.
 29-3          (b)  Performance on the indicators adopted under this section
 29-4    shall be compared to state-established standards.  The degree of
 29-5    change from one school year to the next in performance on each
 29-6    indicator adopted under this section shall also be considered.  The
 29-7    indicators must be based on information that is disaggregated with
 29-8    respect to race, ethnicity, sex, and socioeconomic status and must
 29-9    include:
29-10                (1)  the results of assessment instruments required
29-11    under Sections 39.023(a) and (c), aggregated by grade level and
29-12    subject area;
29-13                (2)  dropout rates;
29-14                (3)  student attendance rates;
29-15                (4)  the percentage of graduating students who attain
29-16    scores on the secondary exit-level assessment instruments required
29-17    under Subchapter B that are equivalent to a passing score on the
29-18    test instrument required under Section 51.306;
29-19                (5)  the percentage of graduating students who meet the
29-20    course requirements established for the recommended high school
29-21    program by State Board of Education rule;
29-22                (6)  the results of the Scholastic Assessment Test
29-23    (SAT) and the American College Test;
29-24                (7)  the percentage of students taking end-of-course
29-25    assessment instruments adopted under Section 39.023(d);
29-26                (8)  the percentage of students exempted, by exemption
29-27    category, from the assessment program generally applicable under
 30-1    this subchapter; and
 30-2                (9)  any other indicator the department [State Board of
 30-3    Education] adopts.
 30-4          (c)  Performance on the indicator under Subsection (b)(1)
 30-5    shall be compared to state standards, required improvement, and
 30-6    comparable improvement.  The state standard shall be established by
 30-7    the department [commissioner].  Required improvement is defined as
 30-8    the progress necessary for the campus or district to meet state
 30-9    standards and for its students to meet exit requirements as defined
30-10    by the department [commissioner].  Comparable improvement is
30-11    derived by measuring campuses and districts against a profile
30-12    developed from a total state student performance database which
30-13    exhibits substantial equivalence to the characteristics of students
30-14    served by the campus or district, including past academic
30-15    performance, socioeconomic status, ethnicity, and limited English
30-16    proficiency.
30-17          (d)  Annually, the department [commissioner] shall define
30-18    exemplary, recognized, and unacceptable performance for each
30-19    academic excellence indicator included under Subsections (b)(1)
30-20    through (6) and shall project the standards for each of those
30-21    levels of performance for succeeding years.
30-22          (e)  Each school district shall cooperate with the department
30-23    [agency] in determining whether a student is a dropout under this
30-24    section.
30-25          SECTION 35.  Sections 39.052(a) and (c), Education Code, are
30-26    amended to read as follows:
30-27          (a)  Each school year, the department [agency] shall prepare
 31-1    and distribute to each school district a report card for each
 31-2    campus.  The campus report cards must be based on the most current
 31-3    data available disaggregated by student groups.  Campus performance
 31-4    must be compared to previous campus and district performance,
 31-5    current district performance, state established standards, and
 31-6    comparable campus group performance.
 31-7          (c)  The department [commissioner] shall adopt rules for
 31-8    requiring dissemination of appropriate student performance portions
 31-9    of campus report cards annually to the parent, guardian,
31-10    conservator, or other person having lawful control of each student
31-11    at the campus.  On written request, the school district shall
31-12    provide a copy of a campus report card to any other party.
31-13          SECTION 36.  Sections 39.053(b), (c), and (d), Education
31-14    Code, are amended to read as follows:
31-15          (b)  The board of trustees shall hold a hearing for public
31-16    discussion of the report.  The board of trustees shall give notice
31-17    of the hearing to property owners in the district and parents,
31-18    guardians, conservators, and other persons having lawful control of
31-19    a district student.  The notification must include notice to a
31-20    newspaper of general circulation in the district and notice to
31-21    electronic media serving the district.  After the hearing the
31-22    report shall be widely disseminated within the district in a manner
31-23    to be determined under rules adopted by the department
31-24    [commission].
31-25          (c)  The report must also include a comparison provided by
31-26    the department [agency] of:
31-27                (1)  the performance of each campus to its previous
 32-1    performance and to state-established standards;
 32-2                (2)  the performance of each district to its previous
 32-3    performance and to state-established standards; and
 32-4                (3)  the performance of each campus or district to
 32-5    comparable improvement.
 32-6          (d)  The report must [may] include the following information:
 32-7                (1)  student information, including total enrollment,
 32-8    enrollment by ethnicity, economic status, and grade groupings,
 32-9    turnover rate, and retention rates;
32-10                (2)  financial information, including revenues and
32-11    expenditures;
32-12                (3)  staff information, including number and type of
32-13    staff by sex, ethnicity, years of experience, and highest degree
32-14    held, teacher and administrator salaries, and teacher turnover;
32-15                (4)  program information, including student enrollment
32-16    by program, teachers by program, and instructional operating
32-17    expenditures by program; and
32-18                (5)  the number of students placed in an alternative
32-19    education program under Chapter 37.
32-20          SECTION 37.  Section 39.072, Education Code, is amended to
32-21    read as follows:
32-22          Sec. 39.072.  ACCREDITATION STANDARDS.  (a)  The department
32-23    [State Board of Education] shall adopt rules to evaluate the
32-24    performance of school districts and to assign to each district a
32-25    performance rating as follows:
32-26                (1)  exemplary (meets or exceeds state exemplary
32-27    standards);
 33-1                (2)  recognized (meets or exceeds required improvement
 33-2    and within 10 percent of state exemplary standards);
 33-3                (3)  academically acceptable (below the exemplary and
 33-4    recognized standards but exceeds the academically unacceptable
 33-5    standards); or
 33-6                (4)  academically unacceptable (below the state clearly
 33-7    unacceptable performance standard and does not meet required
 33-8    improvement).
 33-9          (b)  The academic excellence indicators adopted under
33-10    Sections 39.051(b)(1) through (6) shall be the main consideration
33-11    of the agency in the rating of the district under this section.
33-12    Additional criteria in the rules may include consideration of:
33-13                (1)  compliance with statutory requirements and
33-14    requirements imposed by rule of the State Board of Education or the
33-15    comptroller under specific statutory authority that relate to:
33-16                      (A)  reporting data through the Public Education
33-17    Information Management System (PEIMS);
33-18                      (B)  the high school graduation requirements
33-19    under Section 28.025; or
33-20                      (C)  an item listed in Sections
33-21    7.056(e)(3)(C)-(I) that applies to the district; and
33-22                (2)  the effectiveness of the district's programs in
33-23    special education based on the agency's most recent compliance
33-24    review of the district and programs for special populations.
33-25          (c)  The department [agency] shall evaluate against state
33-26    standards and shall report the performance of each campus in a
33-27    district and each open-enrollment charter school on the basis of
 34-1    the campus's performance on the indicators adopted under Sections
 34-2    39.051(b)(1) through (6).
 34-3          SECTION 38.  Sections 39.073(a) and (d), Education Code, are
 34-4    amended to read as follows:
 34-5          (a)  The department [agency] shall annually review the
 34-6    performance of each district and campus on the indicators adopted
 34-7    under Sections 39.051(b)(1) through (6) and determine if a change
 34-8    in the accreditation status of the district is warranted.
 34-9          (d)  The department [commissioner] shall notify a district
34-10    that is rated academically unacceptable that the performance of the
34-11    district or a campus in the district is below each standard under
34-12    Subsection (b) and shall require the district to notify property
34-13    owners and parents in the district of the lowered accreditation
34-14    rating and its implication.
34-15          SECTION 39.  Sections 39.074(a), (b), (c), (d), and (e),
34-16    Education Code, are amended to read as follows:
34-17          (a)  The comptroller [commissioner] may:
34-18                (1)  direct the department [agency] to conduct on-site
34-19    investigations at any time to answer any questions concerning a
34-20    program, including special education, required by federal law or
34-21    for which the district receives federal funds; and
34-22                (2)  raise or lower the performance rating as a result
34-23    of the investigation.
34-24          (b)  The comptroller [commissioner] shall determine the
34-25    frequency of on-site investigations by the department [agency]
34-26    according to annual comprehensive analyses of student performance
34-27    and equity in relation to the academic excellence indicators
 35-1    adopted under Section 39.051.
 35-2          (c)  In making an on-site accreditation investigation, the
 35-3    investigators shall obtain information from administrators,
 35-4    teachers, and parents of students enrolled in the district.  The
 35-5    investigation may not be closed until information is obtained from
 35-6    each of those sources.  The comptroller [State Board of Education]
 35-7    shall adopt rules for:
 35-8                (1)  obtaining information from parents and using that
 35-9    information in the investigator's report; and
35-10                (2)  obtaining information from teachers in a manner
35-11    that prevents a campus or district from screening the information.
35-12          (d)  The department [agency] shall give written notice to the
35-13    superintendent and the board of trustees of any impending
35-14    investigation of the district's accreditation.
35-15          (e)  If an annual review indicates low performance or
35-16    unusually high performance on one or more of the indicators under
35-17    Sections 39.051(b)(1) through (6) of one or more campuses in a
35-18    district, the department [agency] may conduct an on-site evaluation
35-19    of those campuses only.
35-20          SECTION 40.  Section 39.075, Education Code, is amended to
35-21    read as follows:
35-22          Sec. 39.075. SPECIAL ACCREDITATION INVESTIGATIONS.  (a)  The
35-23    comptroller [commissioner] shall authorize special accreditation
35-24    investigations to be conducted under the following circumstances:
35-25                (1)  when excessive numbers of absences of students
35-26    eligible to be tested on state assessment instruments are
35-27    determined;
 36-1                (2)  when excessive numbers of allowable exemptions
 36-2    from the required state assessment are determined;
 36-3                (3)  in response to complaints submitted to the agency
 36-4    with respect to alleged violations of civil rights or other
 36-5    requirements imposed on the state by federal law or court order;
 36-6                (4)  in response to established compliance reviews of
 36-7    the district's financial accounting practices and state and federal
 36-8    program requirements;
 36-9                (5)  when extraordinary numbers of student placements
36-10    in alternative education programs[, other than placements under
36-11    Sections 37.006 and 37.007,] are determined; or
36-12                (6)  in response to an allegation involving a conflict
36-13    between members of the board of trustees or between the board and
36-14    the district administration if it appears that the conflict
36-15    involves a violation of a role or duty of the board members or the
36-16    administration clearly defined by this code.
36-17          (b)  If the department's [agency's] findings in an
36-18    investigation under Subsection (a)(6) indicate that the board of
36-19    trustees has observed a lawfully adopted policy, the department
36-20    [agency] may not substitute its judgment for that of the board.
36-21          (c)  Based on the results of a special accreditation
36-22    investigation, the comptroller [commissioner] may lower the
36-23    district's accreditation rating and may take appropriate action
36-24    under Subchapter G.
36-25          SECTION 41.  Section 39.076, Education Code, is amended to
36-26    read as follows:
36-27          Sec. 39.076.  CONDUCT OF INVESTIGATIONS.  (a)  The department
 37-1    [agency] shall adopt written procedures for conducting on-site
 37-2    investigations under this subchapter.  The department [agency]
 37-3    shall make the procedures available to the complainant, the alleged
 37-4    violator, and the public.  Department [Agency] staff must be
 37-5    trained in the procedures and must follow the procedures in
 37-6    conducting the investigation.
 37-7          (b)  After completing an investigation, the department
 37-8    [agency] shall present preliminary findings to any person the
 37-9    department [agency] finds has violated a law, rule, or policy.
37-10    Before issuing a report with its final findings, the department
37-11    [agency] must provide a person the department [agency] finds has
37-12    violated a law, rule, or policy an opportunity for an informal
37-13    review by the executive director [commissioner] or a designated
37-14    hearing examiner.
37-15          SECTION 42.  Section 39.131, Education Code, is amended to
37-16    read as follows:
37-17          Sec. 39.131.  SANCTIONS.  (a)  If a district does not satisfy
37-18    the accreditation criteria, the comptroller [commissioner] shall
37-19    take any of the following actions, listed in order of severity, to
37-20    the extent the comptroller [commissioner] determines necessary:
37-21                (1)  issue public notice of the deficiency to the board
37-22    of trustees;
37-23                (2)  order a hearing conducted by the board of trustees
37-24    of the district for the purpose of notifying the public of the
37-25    unacceptable performance, the improvements in performance expected
37-26    by the agency, and the sanctions that may be imposed under this
37-27    section if the performance does not improve;
 38-1                (3)  order the preparation of a student achievement
 38-2    improvement plan that addresses each academic excellence indicator
 38-3    for which the district's performance is unacceptable, the
 38-4    submission of the plan to the comptroller [commissioner] for
 38-5    approval, and implementation of the plan;
 38-6                (4)  order a hearing to be held before the comptroller
 38-7    [commissioner] or the comptroller's [commissioner's] designee at
 38-8    which the president of the board of trustees of the district and
 38-9    the superintendent shall appear and explain the district's low
38-10    performance, lack of improvement, and plans for improvement;
38-11                (5)  arrange an on-site investigation of the district;
38-12                (6)  appoint a department [an  agency] monitor to
38-13    participate in and report to the department [agency] on the
38-14    activities of the board of trustees or the superintendent;
38-15                (7)  appoint a master to oversee the operations of the
38-16    district;
38-17                (8)  appoint a management team to direct the operations
38-18    of the district in areas of unacceptable performance or require the
38-19    district to obtain certain services under a contract with another
38-20    person;
38-21                (9)  if a district has been rated as academically
38-22    unacceptable for a period of one year or more, appoint a board of
38-23    managers composed of residents of the district to exercise the
38-24    powers and duties of the board of trustees; or
38-25                (10)  if a district has been rated as academically
38-26    unacceptable for a period of two years or more, annex the district
38-27    to one or more adjoining districts under Section 13.054 or in the
 39-1    case of a home-rule school district, request the State Board of
 39-2    Education to revoke the district's home-rule school district
 39-3    charter.
 39-4          (b)  If a campus performance is below any standard under
 39-5    Section 39.073(b), the campus is considered a low-performing campus
 39-6    and the comptroller [commissioner] may take any of the following
 39-7    actions, listed in order of severity, to the extent the comptroller
 39-8    [commissioner] determines necessary:
 39-9                (1)  issue public notice of the deficiency to the board
39-10    of trustees;
39-11                (2)  order a hearing conducted by the board of trustees
39-12    at the campus for the purpose of notifying the public of the
39-13    unacceptable performance, the improvements in performance expected
39-14    by the department [agency], and the sanctions that may be imposed
39-15    under this section if the performance does not improve within a
39-16    designated period of time and of soliciting public comment on the
39-17    initial steps being taken to improve performance;
39-18                (3)  order the preparation of a student achievement
39-19    improvement plan that addresses each academic excellence indicator
39-20    for which the campus's performance is unacceptable, the submission
39-21    of the plan to the comptroller [commissioner] for approval, and
39-22    implementation of the plan;
39-23                (4)  order a hearing to be held before the comptroller
39-24    [commissioner] or the comptroller's [commissioner's] designee at
39-25    which the president of the board of trustees, the superintendent,
39-26    and the campus principal shall appear and explain the campus's low
39-27    performance, lack of improvement, and plans for improvement;
 40-1                (5)  appoint a special campus intervention team to:
 40-2                      (A)  conduct a comprehensive on-site evaluation
 40-3    of each low-performing campus to determine the cause for the
 40-4    campus's low performance and lack of progress;
 40-5                      (B)  recommend actions, including reallocation of
 40-6    resources and technical assistance, changes in school procedures or
 40-7    operations, staff development for instructional and administrative
 40-8    staff, intervention for individual administrators or teachers,
 40-9    waivers from state statute or rule, or other actions the team
40-10    considers appropriate;
40-11                      (C)  assist in the development of a campus plan
40-12    for student achievement; and
40-13                      (D)  assist the comptroller [commissioner] in
40-14    monitoring the progress of the campus in implementing the campus
40-15    plan for improvement of student achievement;
40-16                (6)  if a campus has been a low-performing campus for a
40-17    period of one year or more, appoint a board of managers composed of
40-18    residents of the district to exercise the powers and duties of the
40-19    board of trustees of the district in relation to the campus; or
40-20                (7)  if a campus has been a low-performing campus for a
40-21    period of two years or more, order closure of the school program on
40-22    the campus.
40-23          (c)  The comptroller [commissioner] shall review annually the
40-24    performance of a district or campus subject to this section to
40-25    determine the appropriate actions to be implemented under this
40-26    section.  The comptroller [commissioner] must review at least
40-27    annually the performance of a district for which the accreditation
 41-1    rating has been lowered due to unacceptable student performance and
 41-2    may not raise the rating until the district has demonstrated
 41-3    improved student performance.  If the review reveals a lack of
 41-4    improvement, the comptroller [commissioner] shall increase the
 41-5    level of state intervention and sanction unless the comptroller
 41-6    [commissioner] finds good cause for maintaining the current status.
 41-7          (d)  The costs of providing a monitor, master, management
 41-8    team, or special campus intervention team shall be paid by the
 41-9    district.
41-10          (e)  The comptroller [commissioner] shall clearly define the
41-11    powers and duties of a master or management team appointed to
41-12    oversee the operations of the district.  At least every 90 days,
41-13    the comptroller [commissioner] shall review the need for the master
41-14    or management team and shall remove the master or management team
41-15    unless the comptroller [commissioner] determines that continued
41-16    appointment is necessary for effective governance of the district
41-17    or delivery of instructional services.  A master or management
41-18    team, if directed by the comptroller [commissioner], shall prepare
41-19    a plan for the implementation of action under Subsection (a)(9) or
41-20    (10).  The master or management team:
41-21                (1)  may direct an action to be taken by the principal
41-22    of a campus, the superintendent of the district, or the board of
41-23    trustees of the district;
41-24                (2)  may approve or disapprove any action of the
41-25    principal of a campus, the superintendent of the district, or the
41-26    board of trustees of the district;
41-27                (3)  may not take any action concerning a district
 42-1    election, including ordering or canceling an election or altering
 42-2    the date of or the polling places for an election;
 42-3                (4)  may not change the number of or method of
 42-4    selecting the board of trustees;
 42-5                (5)  may not set a tax rate for the district; and
 42-6                (6)  may not adopt a budget for the district that
 42-7    provides for spending a different amount, exclusive of required
 42-8    debt service, from that previously adopted by the board of
 42-9    trustees.
42-10          (f)  A special campus intervention team appointed under this
42-11    section may consist of teachers, principals, other educational
42-12    professionals, and superintendents recognized for excellence in
42-13    their roles and appointed by the comptroller [commissioner] to
42-14    serve as members of a team.
42-15          (g)  If the comptroller [commissioner] appoints a board of
42-16    managers to govern a district, the powers of the board of trustees
42-17    of the district are suspended for the period of the appointment and
42-18    the comptroller [commissioner] shall appoint a district
42-19    superintendent.  Notwithstanding any other provision of this code,
42-20    the board of managers may amend the budget of the district.
42-21          (h)  If the comptroller [commissioner] appoints a board of
42-22    managers to govern a campus, the powers of the board of trustees of
42-23    the district in relation to the campus are suspended for the period
42-24    of the appointment and the comptroller [commissioner] shall appoint
42-25    a campus principal.  Notwithstanding any other provision of this
42-26    code, the board of managers may submit to the comptroller
42-27    [commissioner] for approval amendments to the budget of the
 43-1    district for the benefit of the campus.  If the comptroller
 43-2    [commissioner] approves the amendments, the board of trustees of
 43-3    the district shall adopt the amendments.
 43-4          SECTION 43.  The heading to Subchapter H, Chapter 39,
 43-5    Education Code, is amended to read as follows:
 43-6              SUBCHAPTER H. REPORTS BY TEXAS EDUCATION AGENCY
 43-7            AND EDUCATION TESTING AND ACCOUNTABILITY DEPARTMENT
 43-8          SECTION 44.  Sections 39.181(a) and (d), Education Code, are
 43-9    amended to read as follows:
43-10          (a)  Each report required by this subchapter must:
43-11                (1)  unless otherwise specified, contain summary
43-12    information and analysis only, with an indication that the agency
43-13    or the department will provide the data underlying the report on
43-14    request;
43-15                (2)  specify a person at the agency and a person at the
43-16    department who may be contacted for additional information
43-17    regarding the report and provide each [the] person's telephone
43-18    number; and
43-19                (3)  identify other sources of related information,
43-20    indicating the level of detail and format of information that may
43-21    be obtained, including the availability of any information on the
43-22    Texas Education Network.
43-23          (d)  Subsections (a)  and (b) apply to any report required by
43-24    statute that the agency, the department, or the State Board of
43-25    Education must prepare and deliver to the governor, lieutenant
43-26    governor, speaker of the house of representatives, or legislature.
43-27          SECTION 45.  Section 39.182, Education Code, is amended to
 44-1    read as follows:
 44-2          Sec. 39.182.  COMPREHENSIVE BIENNIAL REPORTS [REPORT].  (a)
 44-3    The agency and the department shall prepare and deliver separate
 44-4    reports to the governor, the lieutenant governor, the speaker of
 44-5    the house of representatives, each member of the legislature, the
 44-6    Legislative Budget Board, and the clerks of the standing committees
 44-7    of the senate and house of representatives with primary
 44-8    jurisdiction over the public school system a comprehensive report
 44-9    covering the preceding two school years and containing:
44-10                (1)  an evaluation of the achievements of the state
44-11    educational program in relation to the statutory goals for the
44-12    public education system under Section 4.002;
44-13                (2)  an evaluation of the status of education in the
44-14    state as reflected by the academic excellence indicators adopted
44-15    under Section 39.051;
44-16                (3)  a summary compilation of overall student
44-17    performance on academic skills assessment instruments required by
44-18    Section 39.023, aggregated by grade level, subject area, campus,
44-19    and district, with appropriate interpretations and analysis and
44-20    disaggregated by race, ethnicity, sex, and socioeconomic status;
44-21                (4)  an evaluation of the correlation between student
44-22    grades and student performance on academic skills assessment
44-23    instruments required by Section 39.023;
44-24                (5)  a statement of the dropout rate of students in
44-25    grade levels 7 through 12, expressed in the aggregate and by grade
44-26    level;
44-27                (6)  a statement of the projected cross-sectional and
 45-1    longitudinal dropout rates for grade levels 7 through 12 for the
 45-2    next five years, assuming no state action is taken to reduce the
 45-3    dropout rate;
 45-4                (7)  in the agency report, a description of a
 45-5    systematic plan for reducing the projected cross-sectional and
 45-6    longitudinal dropout rates [to five percent or less for the
 45-7    1997-1998 school year];
 45-8                (8)  a summary of the information required by Section
 45-9    29.083 regarding grade level retention of students;
45-10                (9)  a list of each school district or campus that does
45-11    not satisfy performance standards, with an explanation of the
45-12    actions taken by the commissioner to improve student performance in
45-13    the district or campus and an evaluation of the results of those
45-14    actions;
45-15                (10)  an evaluation of the status of the curriculum
45-16    taught in public schools, with recommendations for legislative
45-17    changes necessary to improve or modify the curriculum required by
45-18    Section 28.002;
45-19                (11)  a description of all funds received by and each
45-20    activity and expenditure of the agency or department, as
45-21    appropriate;
45-22                (12)  a summary and analysis of the compliance of
45-23    school districts with administrative cost ratios set by the
45-24    commissioner under Section 42.201, including any improvements and
45-25    cost savings achieved by school districts;
45-26                (13)  a summary of the effect of deregulation,
45-27    including exemptions and waivers granted under Section 7.056 [or
 46-1    39.112];
 46-2                (14)  a statement of the total number and length of
 46-3    reports that school districts and school district employees must
 46-4    submit to the agency or to the department, identifying which
 46-5    reports are required by federal statute or rule, state statute,
 46-6    comptroller rule, or agency rule, and a summary of the agency's or
 46-7    department's efforts to reduce overall reporting requirements; and
 46-8                (15)  any additional information considered important
 46-9    by the commissioner, the comptroller, or the State Board of
46-10    Education.
46-11          (b)  [In reporting the information required by Subsection
46-12    (a)(3), the agency may separately aggregate the performance data of
46-13    students enrolled in a special education program under Subchapter
46-14    A, Chapter 29, or a bilingual education or special language program
46-15    under Subchapter B, Chapter 29.]
46-16          [(c)]  Each report must contain the most recent data
46-17    available.
46-18          SECTION 46.  Section 39.183, Education Code, is amended to
46-19    read as follows:
46-20          Sec. 39.183.  REGIONAL AND DISTRICT LEVEL REPORT. The agency
46-21    shall prepare and deliver to the governor, the lieutenant governor,
46-22    the speaker of the house of representatives, each member of the
46-23    legislature, the Legislative Budget Board, and the clerks of the
46-24    standing committees of the senate and house of representatives with
46-25    primary jurisdiction over the public school system a regional and
46-26    district level report covering the preceding two school years and
46-27    containing:
 47-1                (1)  a summary of school district compliance with the
 47-2    student/teacher ratios and class-size limitations prescribed by
 47-3    Sections 25.111 and 25.112, including the number of districts
 47-4    granted an exception from Section 25.112;
 47-5                (2)  a summary of the exemptions and waivers granted to
 47-6    school districts under Section 7.056 [or 39.112] and a review of
 47-7    the effectiveness of each campus or district following
 47-8    deregulation; and
 47-9                (3)  an evaluation of the performance of the system of
47-10    regional education service centers based on the indicators adopted
47-11    under Section 8.101 and client satisfaction with services provided
47-12    under Subchapter B, Chapter 8.
47-13          SECTION 47.  Section 41.013(a), Education Code, is amended to
47-14    read as follows:
47-15          (a)  Except as provided by Subchapter G, a decision of the
47-16    commissioner under this chapter may be appealed to a district court
47-17    in Travis County.  An appeal must be made by serving the
47-18    commissioner with citation issued and served in the manner provided
47-19    by law for civil suits.  The petition must state the decision from
47-20    which the appeal is taken.  At trial, the court shall determine all
47-21    issues of law and fact [is appealable under Section 7.057].
47-22          SECTION 48.  Sections 42.006(b) and (c), Education Code, are
47-23    amended to read as follows:
47-24          (b)  Each school district shall use a uniform accounting
47-25    system adopted by the comptroller [commissioner] for the data
47-26    required to be reported for the Public Education Information
47-27    Management System.
 48-1          (c)  Annually, the comptroller [commissioner] shall review
 48-2    the Public Education Information Management System and shall repeal
 48-3    or amend rules that require school districts to provide information
 48-4    through the Public Education Information Management System that is
 48-5    not necessary.  In reviewing and revising the Public Education
 48-6    Information Management System, the comptroller [commissioner] shall
 48-7    develop rules to ensure that the system:
 48-8                (1)  provides useful, accurate, and timely information
 48-9    on student demographics and academic performance, personnel, and
48-10    school district finances;
48-11                (2)  contains only the data necessary for the
48-12    legislature and the agency to perform their legally authorized
48-13    functions in overseeing the public education system; and
48-14                (3)  does not contain any information related to
48-15    instructional methods, except as required by federal law.
48-16          SECTION 49.  Section 42.151, Education Code, is amended by
48-17    amending Subsection (j) and adding Subsection (m) to read as
48-18    follows:
48-19          (j)  A school district that maintains for two successive
48-20    years more than five percent of the district's students [a ratio of
48-21    full-time equivalent students placed in partially or totally
48-22    self-contained classrooms to the number of full-time equivalent
48-23    students placed] in resource room or mainstream instructional
48-24    arrangements [that is 25 percent higher than the statewide average
48-25    ratio] shall be reviewed by the department [agency] to determine
48-26    the appropriateness of student  placement.  The commissioner may
48-27    reduce the special education allotment the district receives to the
 49-1    level to which the district would be entitled if the district had
 49-2    not more than five percent of the district's students in special
 49-3    education [district's ratio was not more than 25 percent higher
 49-4    than the statewide average ratio].
 49-5          (m)  The comptroller shall establish procedures for
 49-6    inspection of school districts by the department to ensure that the
 49-7    admission, review, and dismissal committees for special education
 49-8    students use equitable and consistent policies in:
 49-9                (1)  developing individualized education programs (IEP)
49-10    for the students;
49-11                (2)  developing individual transition plans (ITP) for
49-12    the students; and
49-13                (3)  granting exemptions from the administration of
49-14    assessment instruments under Section 39.027.
49-15          SECTION 50.  Sections 7.057, 33.081(g), 39.023(b), (e), (i),
49-16    and (k), 39.030(c), 39.031, 39.051(f), and 39.112, Education Code,
49-17    are repealed.
49-18          SECTION 51.  (a)  This Act takes effect September 1, 1999.
49-19          (b)  The Education Testing and Accountability Department is
49-20    created on September 1, 1999.
49-21          (c)  As soon as practicable after the comptroller appoints an
49-22    executive director of the Education Testing and Accountability
49-23    Department, but not later than April 1, 2000:
49-24                (1)  all powers, duties, rights, and obligations of the
49-25    commissioner of education and the Texas Education Agency relating
49-26    to public school system accountability, as added and amended by
49-27    this Act, are transferred to the comptroller and the Education
 50-1    Testing and Accountability Department, as specified by this Act;
 50-2                (2)  except as provided by Subsection (d) of this
 50-3    section, all assets, liabilities, personnel, equipment, data,
 50-4    documents, facilities, and other items relating to public school
 50-5    system accountability are transferred from the Texas Education
 50-6    Agency to the Education Testing and Accountability Department; and
 50-7                (3)  any appropriation to the commissioner of education
 50-8    or the Texas Education Agency relating to public school system
 50-9    accountability is transferred to the Education Testing and
50-10    Accountability Department.
50-11          (d)  The commissioner of education may decide whether to
50-12    transfer to the Education Testing and Accountability Department:
50-13                (1)  personnel who perform both duties that relate to
50-14    public school system accountability and duties that do not relate
50-15    to public school system accountability; and
50-16                (2)  assets used both for public school system
50-17    accountability and operations other than public school system
50-18    accountability.
50-19          (e)  The officers and employees of the office of the
50-20    commissioner of education and the Texas Education Agency shall
50-21    cooperate fully with the reorganization.
50-22          (f)  The transfer of functions under Subsection (c) of this
50-23    section shall occur on the date specified in an interagency
50-24    contract among the commissioner of education, the Texas Education
50-25    Agency, the comptroller, and the Education Testing and
50-26    Accountability Department.
50-27          (g)  Notwithstanding the changes made by this Act, the
 51-1    commissioner of education and the Texas Education Agency retain all
 51-2    powers and duties relating to public school system accountability
 51-3    until the effective date of the transfer under Subsection (c) of
 51-4    this section.
 51-5          (h)  The Education Testing and Accountability Department, the
 51-6    executive director or acting executive director, or other employees
 51-7    of that department may use the Austin office of the Texas Education
 51-8    Agency before the transfer of functions under Subsection (c) of
 51-9    this section, and lawful expenses related to public school system
51-10    accountability incurred by the comptroller or the department before
51-11    the transfer of functions under Subsection (c) of this section are
51-12    payable from appropriations subject to transfer under that
51-13    subsection.
51-14          (i)  A change in law made by this Act does not affect:
51-15                (1)  the validity of any action taken by the
51-16    commissioner or the Texas Education Agency relating to public
51-17    school system accountability before the effective date of the
51-18    change in law; or
51-19                (2)  a civil, criminal, or administrative proceeding
51-20    completed before or in progress on the effective date of this Act.
51-21          SECTION 52.  The importance of this legislation and the
51-22    crowded condition of the calendars in both houses create an
51-23    emergency and an imperative public necessity that the
51-24    constitutional rule requiring bills to be read on three several
51-25    days in each house be suspended, and this rule is hereby suspended.