1-1     By:  West                                             S.B. No. 1455
 1-2           (In the Senate - Filed March 12, 1999; March 15, 1999, read
 1-3     first time and referred to Committee on Education; April 26, 1999,
 1-4     reported adversely, with favorable Committee Substitute by the
 1-5     following vote:  Yeas 7, Nays 0; April 26, 1999, sent to printer.)
 1-6     COMMITTEE SUBSTITUTE FOR S.B. No. 1455                    By:  West
 1-7                            A BILL TO BE ENTITLED
 1-8                                   AN ACT
 1-9     relating to compensatory, intensive, and accelerated education in
1-10     public schools.
1-11           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12           SECTION 1.  Section 29.081, Education Code, is amended by
1-13     amending the heading and Subsections (a), (c), and (d) and adding
1-14     Subsections (g), (h), and (i) to read as follows:
1-15           Sec. 29.081.  COMPENSATORY, INTENSIVE, AND ACCELERATED
1-16     INSTRUCTION.  (a)  Each school district shall use the student
1-17     performance data resulting from the basic skills assessment
1-18     instruments and achievement tests administered under Subchapter B,
1-19     Chapter 39, to design and implement appropriate compensatory,
1-20     intensive,  or accelerated instructional services for students in
1-21     the district's schools that enable the students to be performing at
1-22     grade level at the conclusion of the next regular school term or,
1-23     if appropriate, to be prepared to obtain a high school equivalency
1-24     certificate.
1-25           (c)  Each school district shall evaluate and document the
1-26     effectiveness of the accelerated instruction in reducing any
1-27     disparity in performance on assessment instruments administered
1-28     under Subchapter B, Chapter 39, or disparity in the rates of high
1-29     school completion or receipt of a high school equivalency
1-30     certificate between students at risk of dropping out of school and
1-31     all other district students [the dropout rate and in increasing
1-32     achievement in the categories of students listed under Subsection
1-33     (d)].
1-34           (d)  For purposes of this section, "student at risk of
1-35     dropping out of school" includes[:]
1-36                 [(1)]  each student, other than a student eligible to
1-37     participate in a district's special education program under Section
1-38     29.003, [in grade levels 7 through 12] who is under 21 years of age
1-39     and who:
1-40                 (1) [(A)]  was not advanced from one grade level to the
1-41     next for one [two] or more school years;
1-42                 (2)  if the student is in grade 7, 8, 9, 10, 11, or 12,
1-43     [(B)  has mathematics or reading skills that are two or more years
1-44     below grade level;]
1-45                       [(C)]  did not maintain an average equivalent to
1-46     70 on a scale of 100 in two or more subjects in the foundation
1-47     curriculum [courses] during a semester in the preceding or current
1-48     school year, or is not maintaining such an average in two or more
1-49     subjects in the foundation curriculum [courses] in the current
1-50     semester[, and is not expected to graduate within four years of the
1-51     date the student begins ninth grade];
1-52                 (3) [(D)]  did not perform satisfactorily on an
1-53     assessment instrument administered to the student under Subchapter
1-54     B, Chapter 39, and who has not in the previous or current school
1-55     year subsequently performed on that instrument or another
1-56     appropriate instrument at a level equal to at least 105 percent of
1-57     the level of satisfactory performance on that instrument;
1-58                 (4)  did not perform satisfactorily on a readiness test
1-59     or assessment instrument administered during the current school
1-60     year, if the student is in prekindergarten, kindergarten, or grade
1-61     1, 2, or 3; [or]
1-62                 (5) [(E)]  is pregnant or is a parent;
1-63                 (6)  has been placed in an alternative education
1-64     program in accordance with Section 37.006 during the preceding or
 2-1     current school year;
 2-2                 (7)  has been expelled in accordance with Section
 2-3     37.007 during the preceding or current school year;
 2-4                 (8)  is currently on parole, probation, deferred
 2-5     prosecution, or other conditional release;
 2-6                 (9)  was previously reported through the Public
 2-7     Education Information Management System (PEIMS) to have dropped out
 2-8     of school;
 2-9                 (10)  failed during the preceding or current school
2-10     year to meet the minimum attendance required under Section 25.092
2-11     for one or more classes, unless the failure is excused under
2-12     Section 25.086 or 25.087;
2-13                 (11) [(2)  each student in prekindergarten through
2-14     grade 6 who:]
2-15                       [(A)  did not perform satisfactorily on a
2-16     readiness test or assessment instrument administered at the
2-17     beginning of the school year;]
2-18                       [(B)  did not perform satisfactorily on an
2-19     assessment instrument administered under Subchapter B, Chapter 39;]
2-20                       [(C)]  is a student of limited English
2-21     proficiency, as defined by Section 29.052;
2-22                 (12)  is in the custody or care of the Department of
2-23     Protective and Regulatory Services or has, during the current
2-24     school year, been referred to the department by a school official,
2-25     officer of the juvenile court, or law enforcement official;
2-26                 (13)  is homeless, as defined by 42 U.S.C. Section
2-27     11302 and its subsequent amendments; or
2-28                 (14)  resided in the preceding school year or [(D)  is
2-29     sexually, physically, or psychologically abused; or]
2-30                       [(E)  engages in conduct described by Section
2-31     51.03(a), Family Code; and]
2-32                 [(3)  each student who is not disabled and who] resides
2-33     in the current school year in a residential placement facility in
2-34     the [a] district [in which the student's parent or legal guardian
2-35     does not reside], including a detention facility, substance abuse
2-36     treatment facility, emergency shelter, psychiatric hospital,
2-37     halfway house, or foster family group home.
2-38           (g)  A school district may not place a student in a program
2-39     to obtain a high school equivalency certificate unless:
2-40                 (1)  the student is 16 years of age or older at the
2-41     beginning of the school year or semester;
2-42                 (2)  the student's parent or guardian agrees to the
2-43     placement of the student in the program;
2-44                 (3)  there is a reasonable expectation that the student
2-45     will not graduate on schedule;
2-46                 (4)  there is a reasonable expectation that on
2-47     completion of the program the student will be able to perform
2-48     satisfactorily on the high school equivalency examination; and
2-49                 (5)  any other conditions specified by the agency are
2-50     satisfied.
2-51           (h)  A student eligible to participate in a district's
2-52     special education program under Section 29.003 may receive
2-53     instructional services under this section if receipt of those
2-54     services is determined to be appropriate by the student's
2-55     admission, review, and dismissal committee.
2-56           (i)  In addition to students described by Subsection (d), a
2-57     student who satisfies local eligibility criteria adopted by the
2-58     board of trustees of a school district may receive instructional
2-59     services under this section.  The number of students receiving
2-60     services under this subsection during a school year may not exceed
2-61     10 percent of the number of students described by Subsection (d)
2-62     who received services from the district during the preceding school
2-63     year.  For purposes of Chapter 39, students receiving services
2-64     under this subsection may not be included in the group of students
2-65     who are identified as being at risk of dropping out of school.
2-66           SECTION 2.  Section 39.051, Education Code, is amended by
2-67     amending Subsection (b) and adding Subsection (g) to read as
2-68     follows:
2-69           (b)  Performance on the indicators adopted under this section
 3-1     shall be compared to state-established standards.  The degree of
 3-2     change from one school year to the next in performance on each
 3-3     indicator adopted under this section shall also be considered.  The
 3-4     indicators must be based on information that is disaggregated by
 3-5     [with respect to] race, ethnicity, gender [sex], [and]
 3-6     socioeconomic, and at-risk status and must include:
 3-7                 (1)  the results of assessment instruments required
 3-8     under Sections 39.023(a) and (c), aggregated by grade level and
 3-9     subject area;
3-10                 (2)  dropout and completion rates;
3-11                 (3)  student attendance rates;
3-12                 (4)  the percentage of graduating students who attain
3-13     scores on the secondary exit-level assessment instruments required
3-14     under Subchapter B that are equivalent to a passing score on the
3-15     test instrument required under Section 51.306;
3-16                 (5)  the percentage of graduating students who meet the
3-17     course requirements established for the recommended high school
3-18     program by State Board of Education rule;
3-19                 (6)  the results of the Scholastic Assessment Test
3-20     (SAT) and the American College Test;
3-21                 (7)  the percentage of students taking end-of-course
3-22     assessment instruments adopted under Section 39.023(d);
3-23                 (8)  the percentage of students exempted, by exemption
3-24     category, from the assessment program generally applicable under
3-25     this subchapter; and
3-26                 (9)  any other indicator the State Board of Education
3-27     adopts.
3-28           (g)  The commissioner by rule shall:
3-29                 (1)  adopt accountability measures to be used in
3-30     assessing the performance of students at risk of dropping out of
3-31     school, as defined by Section 29.081;
3-32                 (2)  specify the level of student performance on the
3-33     accountability measures that is necessary for a campus or district
3-34     to obtain a performance rating of exemplary, recognized, or
3-35     academically acceptable; and
3-36                 (3)  determine appropriate methods of integrating
3-37     student performance on the accountability measures into the
3-38     statewide public school accountability program established under
3-39     this chapter.
3-40           SECTION 3.  Subsection (d), Section 39.053, Education Code,
3-41     is amended to read as follows:
3-42           (d)  The report may include the following information:
3-43                 (1)  student information, including total enrollment,
3-44     enrollment by ethnicity, socioeconomic status, and at-risk
3-45     [economic] status under Section 29.081, and grade groupings and
3-46     retention rates;
3-47                 (2)  financial information, including revenues and
3-48     expenditures;
3-49                 (3)  staff information, including number and type of
3-50     staff by gender [sex], ethnicity, years of experience, and highest
3-51     degree held, teacher and administrator salaries, and teacher
3-52     turnover;
3-53                 (4)  program information, including student enrollment
3-54     by program, teachers by program, and instructional operating
3-55     expenditures by program; and
3-56                 (5)  the number of students placed in an alternative
3-57     education program under Chapter 37.
3-58           SECTION 4.  The heading to Section 39.182, Education Code, is
3-59     amended to read as follows:
3-60           Sec. 39.182.  COMPREHENSIVE ANNUAL [BIENNIAL] REPORT.
3-61           SECTION 5.  Subsections (a) and (b), Section 39.182,
3-62     Education Code, are amended to read as follows:
3-63           (a)  Not later than December 1 of each year, the [The] agency
3-64     shall prepare and deliver to the governor, the lieutenant governor,
3-65     the speaker of the house of representatives, each member of the
3-66     legislature, the Legislative Budget Board, and the clerks of the
3-67     standing committees of the senate and house of representatives with
3-68     primary jurisdiction over the public school system a comprehensive
3-69     report covering the preceding [two] school year [years] and
 4-1     containing:
 4-2                 (1)  an evaluation of the achievements of the state
 4-3     educational program in relation to the statutory goals for the
 4-4     public education system under Section 4.002;
 4-5                 (2)  an evaluation of the status of education in the
 4-6     state as reflected by the academic excellence indicators adopted
 4-7     under Section 39.051;
 4-8                 (3)  a summary compilation of overall student
 4-9     performance on academic skills assessment instruments required by
4-10     Section 39.023 with the number of students exempted from the
4-11     administration of those instruments and the basis of the
4-12     exemptions, aggregated by grade level, subject area, campus, and
4-13     district, and with appropriate interpretations and analysis, and
4-14     disaggregated by race, ethnicity, gender [sex], and socioeconomic
4-15     status;
4-16                 (4)  a summary compilation of overall performance of
4-17     students placed in an alternative education program established
4-18     under Section 37.008 on academic skills assessment instruments
4-19     required by Section 39.023 with the number of those students
4-20     exempted from the administration of those instruments and the basis
4-21     of the exemptions, aggregated by grade level and subject area, with
4-22     appropriate interpretations and analysis, and disaggregated by
4-23     race, ethnicity, gender, and socioeconomic status;
4-24                 (5)  an evaluation of the correlation between student
4-25     grades and student performance on academic skills assessment
4-26     instruments required by Section 39.023;
4-27                 (6) [(5)]  a statement of the dropout rate of students
4-28     in grade levels 7 through 12, expressed in the aggregate and by
4-29     grade level;
4-30                 (7)  a statement of:
4-31                       (A)  the completion rate of students who enter
4-32     grade level 9 and graduate not more than four years later;
4-33                       (B)  the completion rate of students who enter
4-34     grade level 9 and graduate, including students who require more
4-35     than four years to graduate;
4-36                       (C)  the completion rate of students who enter
4-37     grade level 9 and not more than four years later receive a high
4-38     school equivalency certificate;
4-39                       (D)  the completion rate of students who enter
4-40     grade level 9 and receive a high school equivalency certificate,
4-41     including students who require more than four years to receive a
4-42     certificate; and
4-43                       (E)  the number and percentage of all students
4-44     who have not been accounted for under Paragraph (A), (B), (C), or
4-45     (D) and are not enrolled in a private school, home school, or
4-46     school in another state;
4-47                 (8) [(6)]  a statement of the projected cross-sectional
4-48     and longitudinal dropout rates for grade levels 9 [7] through 12
4-49     for the next five years, assuming no state action is taken to
4-50     reduce the dropout rate;
4-51                 (9) [(7)]  a description of a systematic, measurable
4-52     plan for reducing the projected cross-sectional and longitudinal
4-53     dropout rates to five percent or less for the 1997-1998 school
4-54     year;
4-55                 (10) [(8)]  a summary of the information required by
4-56     Section 29.083 regarding grade level retention of students and
4-57     information concerning:
4-58                       (A)  the number and percentage of students
4-59     retained; and
4-60                       (B)  the performance of retained students on
4-61     assessment instruments required under Section 39.023(a);
4-62                 (11)  information, aggregated by district type and
4-63     disaggregated by race, ethnicity, gender, and socioeconomic status,
4-64     on:
4-65                       (A)  the number of students placed in an
4-66     alternative education program established under Section 37.008;
4-67                       (B)  the average length of a student's placement
4-68     in an alternative education program established under Section
4-69     37.008;
 5-1                       (C)  the academic performance of students on
 5-2     assessment instruments required under Section 39.023(a) during the
 5-3     year preceding and during the year following placement in an
 5-4     alternative education program; and
 5-5                       (D)  the dropout rates of students who have been
 5-6     placed in an alternative education program established under
 5-7     Section 37.008;
 5-8                 (12) [(9)]  a list of each school district or campus
 5-9     that does not satisfy performance standards, with an explanation of
5-10     the actions taken by the commissioner to improve student
5-11     performance in the district or campus and an evaluation of the
5-12     results of those actions;
5-13                 (13) [(10)]  an evaluation of the status of the
5-14     curriculum taught in public schools, with recommendations for
5-15     legislative changes necessary to improve or modify the curriculum
5-16     required by Section 28.002;
5-17                 (14) [(11)]  a description of all funds received by and
5-18     each activity and expenditure of the agency;
5-19                 (15) [(12)]  a summary and analysis of the compliance
5-20     of school districts with administrative cost ratios set by the
5-21     commissioner under Section 42.201, including any improvements and
5-22     cost savings achieved by school districts;
5-23                 (16) [(13)]  a summary of the effect of deregulation,
5-24     including exemptions and waivers granted under Section 7.056 or
5-25     39.112;
5-26                 (17) [(14)]  a statement of the total number and length
5-27     of reports that school districts and school district employees must
5-28     submit to the agency, identifying which reports are required by
5-29     federal statute or rule, state statute, or agency rule, and a
5-30     summary of the agency's efforts to reduce overall reporting
5-31     requirements;
5-32                 (18)  a summary of school district compliance with the
5-33     student/teacher ratios and class-size limitations prescribed by
5-34     Sections 25.111 and 25.112, including the number of districts
5-35     granted an exception from Section 25.112;
5-36                 (19)  a summary of the exemptions and waivers granted
5-37     to school districts under Section 7.056 or 39.112 and a review of
5-38     the effectiveness of each campus or district following
5-39     deregulation;
5-40                 (20)  an evaluation of the performance of the system of
5-41     regional education service centers based on the indicators adopted
5-42     under Section 8.101 and client satisfaction with services provided
5-43     under Subchapter B, Chapter 8;
5-44                 (21)  a comparison of the performance of
5-45     open-enrollment charter schools and school districts on the
5-46     academic excellence indicators specified in Section 39.051 (b),
5-47     with a separately aggregated comparison of the performance of
5-48     open-enrollment charter schools granted under Section 12.1011 (a)
5-49     (2) with the performance of school districts; and
5-50                 (22) [(15)] any additional information considered
5-51     important by the commissioner or the State Board of Education.
5-52           (b)  In reporting the information required by Subsection
5-53     (a)(3) or (4), the agency may separately aggregate the performance
5-54     data of students enrolled in a special education program under
5-55     Subchapter A, Chapter 29, or a bilingual education or special
5-56     language program under Subchapter B, Chapter 29.
5-57           SECTION 6.  Section 42.152, Education Code, is amended by
5-58     amending Subsections (b), (c), and (r) and adding Subsection (s) to
5-59     read as follows:
5-60           (b)  For purposes of this section, the number of
5-61     educationally disadvantaged students is determined:
5-62                 (1)  by averaging the best six months' enrollment in
5-63     the national school lunch program of free or reduced-price lunches
5-64     for the preceding school year; or
5-65                 (2)  in the manner determined by commissioner rule, if
5-66     the district did not participate in the national school lunch
5-67     program of free or reduced-price lunches during the preceding
5-68     school year.
5-69           (c)  Funds allocated under this section shall be used to fund
 6-1     supplemental programs and services designed to eliminate any
 6-2     disparity in performance on assessment instruments administered
 6-3     under Subchapter B, Chapter 39, or disparity in the rates of high
 6-4     school completion or receipt of a high school equivalency
 6-5     certification between students at risk of dropping out of school,
 6-6     as defined by Section 29.081, and all other students.
 6-7     Specifically, the funds, other than an indirect cost allotment
 6-8     established under State Board of Education rule, which may not
 6-9     exceed 15 percent, may be used only to meet the costs of [in]
6-10     providing a compensatory, intensive, or [education and] accelerated
6-11     instruction program [programs] under Section 29.081 or an
6-12     alternative education program established under Section 37.008 or
6-13     to support a program eligible under Title I of the Elementary and
6-14     Secondary Education Act of 1965, as provided by Pub. L. No. 103-382
6-15     and its subsequent amendments, and by federal regulations
6-16     implementing that Act [and may only be spent to improve and enhance
6-17     programs and services funded under the regular education program].
6-18     In meeting the costs of providing a compensatory, intensive, or
6-19     accelerated instruction program under Section 29.081, a [A]
6-20     district's compensatory education allotment may be used only for
6-21     costs supplementary to the regular education program, such as costs
6-22     for program and student evaluation, instructional materials and
6-23     equipment and other supplies required for quality instruction,
6-24     supplement staff expenses, salary for teachers of at-risk students,
6-25     smaller class size, and individualized instruction.  A home-rule
6-26     school district or an open-enrollment charter school must use funds
6-27     allocated under Subsection (a) for a purpose authorized in this
6-28     subsection, [to provide compensatory education services] but is not
6-29     otherwise subject to Subchapter C, Chapter 29.
6-30           (r)  The commissioner shall grant a one-year exemption from
6-31     the requirements of Subsection (g) to a school district in which
6-32     the group of students identified under Section 29.081 as being at
6-33     risk of dropping out of school performs on the assessment
6-34     instruments specified by Section 39.051 (b)(1) at a level that
6-35     meets or exceeds the level required for a performance rating of
6-36     academically recognized.  Not later than March 1 of each year, the
6-37     commissioner, based on the most recent information available, shall
6-38     determine whether a school district is entitled to an exemption for
6-39     the following school year and notify the district of that
6-40     determination.
6-41           (s)  Subsection (r) applies beginning with the 2001-2002
6-42     school year.  This subsection expires September 1, 2002.
6-43     [Subsection (q) applies beginning with the 1998-1999 school year.
6-44     For the 1997-1998 school year, a school district shall account for
6-45     the expenditure of funds allocated under this chapter for
6-46     compensatory education purposes by program and by campus under
6-47     existing agency reporting and auditing procedures.  The board,
6-48     state auditor, and comptroller shall develop the reporting and
6-49     auditing system required by Subsection (q) not later than August 1,
6-50     1998.  This subsection expires September 1, 1999.]
6-51           SECTION 7.  (a)  Using funds specifically appropriated for
6-52     that purpose, the commissioner of education shall form a committee
6-53     to conduct a study and detailed analysis of:
6-54                 (1)  effective public education compensatory education
6-55     programs for students receiving services under Section 29.081,
6-56     Education Code, or Title I of the Elementary and Secondary
6-57     Education Act of 1965 (20 U.S.C. Section 6301 et seq.); and
6-58                 (2)  effective higher education developmental programs
6-59     delivered under Section 51.306, Education Code.
6-60           (b)  The committee formed by the commissioner of education
6-61     under Subsection (a) of this section shall organize and administer
6-62     the study required by this section.  The committee must be composed
6-63     of:
6-64                 (1)  at least one representative of each of the
6-65     following agencies:
6-66                       (A)  the Legislative Budget Board;
6-67                       (B)  the Texas Education Agency;
6-68                       (C)  the office of the state auditor;
6-69                       (D)  the office of the comptroller of public
 7-1     accounts; and
 7-2                       (E)  the Texas Higher Education Coordinating
 7-3     Board;
 7-4                 (2)  two representatives of the general public selected
 7-5     by the chair of the Senate Committee on Education;
 7-6                 (3)  one representative of the general public selected
 7-7     by the chair of the House Committee on Public Education;
 7-8                 (4)  one representative of the general public selected
 7-9     by the chair of the House Committee on Higher Education; and
7-10                 (5)  three educators selected by the commissioner of
7-11     education, one of whom must be a classroom teacher, and one of whom
7-12     must be an administrator.
7-13           (c)   In conducting the study required by this section, the
7-14     committee shall use data collected through the Public Education
7-15     Information Management System (PEIMS), data collected by the Texas
7-16     Higher Education Coordinating Board, and program evaluations
7-17     conducted by the Texas Education Agency and the Texas Higher
7-18     Education Coordinating Board of a variety of effective compensatory
7-19     and developmental programs operated in a wide range of schools and
7-20     institutions of higher education across the state.
7-21           (d)  Using information collected locally, the study shall
7-22     examine compensatory and developmental programs, including cost
7-23     elements of those programs, in a manner that allows comparison
7-24     between similar schools and types of students.
7-25           (e)  Not later that December 1, 2000, the committee shall
7-26     submit to the legislature a report of the results of the study.
7-27           (f)  The committee is abolished and this section expires
7-28     January 1, 2001.
7-29           SECTION 8.  Sections 39.183 and 39.185, Education Code, are
7-30     repealed.
7-31           SECTION 9.  (a)  Except as otherwise provided by this
7-32     section, this Act applies beginning with the 1999-2000 school year.
7-33           (b)  Subsection (g), Section 39.051, Education Code, as added
7-34     by this Act, and Subsection (d), Section 39.053, Education Code, as
7-35     amended by this Act, apply beginning with the 2000-2001 school
7-36     year.
7-37           (c)  Section 39.182, Education Code, as amended by this Act,
7-38     applies beginning with the report required to be prepared not later
7-39     than December 1, 1999, except that:
7-40                 (1)  the Texas Education Agency, in computing
7-41     information relating to students at risk of dropping out of school
7-42     for inclusion in the report due December 1, 1999, and the report
7-43     due December 1, 2000, may determine appropriate information based
7-44     on Section 29.081, Education Code, as it existed before amendment
7-45     by this Act; and
7-46                 (2)  the Texas Education Agency shall include
7-47     information specified under Paragraph (E), Subdivision (7),
7-48     Subsection (a), Section 39.182, Education Code, as added by this
7-49     Act, beginning with the report due December 1, 2002, and shall
7-50     include, to the extent available, alternative information relating
7-51     to students who leave school in the reports due in 1999, 2000, and
7-52     2001.
7-53           SECTION 10.  The importance of this legislation and the
7-54     crowded condition of the calendars in both houses create an
7-55     emergency and an imperative public necessity that the
7-56     constitutional rule requiring bills to be read on three several
7-57     days in each house be suspended, and this rule is hereby suspended,
7-58     and that this Act take effect and be in force from and after its
7-59     passage, and it is so enacted.
7-60                                  * * * * *