HBA-TBM S.B. 702 77(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 702
By: West, Royce
Public Education
5/9/2001
Engrossed



BACKGROUND AND PURPOSE 

Under current law, school districts receive compensatory education funds
for the purpose of providing compensatory education and accelerated
instruction to students identified as at risk of dropping out of school.
Compensatory education funds are allowed to be spent only on costs
supplemental to the regular program, including program and student
evaluation, instructional materials, equipment and other supplies required
for quality instruction, and supplemental staff expenses and salary for
teachers of at-risk students. Broadening the category of at-risk students
to make more students eligible for compensatory education may help
districts more effectively prevent students from dropping out of school.
Senate Bill 702 broadens the definition of a "student at risk of dropping
out of school" and modifies related accountability provisions.   

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the commissioner of education in
SECTION 5 (Section 39.051, Education Code) and SECTION 11 (Section 42.152,
Education Code) of this bill.   

ANALYSIS

Senate Bill 702 amends the Education Code to require each school district
to assess the effectiveness of accelerated instruction in reducing any
disparity in the performance on academic skills assessment instruments and
the rates of high school completion for students at risk of dropping out of
school as compared to all other district students.  The bill modifies the
guidelines for the determination of at-risk students eligible for
accelerated instruction by including a student in grades 7 through 12 who
does not maintain a grade average in two or more foundation courses
equivalent to 70 on a scale of 100 during a semester in the previous year
or the current year.  The bill includes a student who was not advanced from
one grade level to the next for one rather than two or more school years.
The bill removes the provision that such a student should not be expected
to graduate within four years of the date the student begins the ninth
grade, and removes a student in grades 7-12 who has mathematics or reading
skills that are two or more years below grade level from the classification
of a student at risk of dropping out of school.  The bill includes a
student who did not perform satisfactorily on an assessment instrument  and
during the previous or current school years did not subsequently achieve a
score equal to at least 110 percent of the score considered to be
satisfactory performance on that assessment instrument.  The bill excludes
students in grades four, five, and six who did not perform satisfactorily
on a readiness test or an assessment instrument. The bill includes students
in grades 7 through 12 who are of limited English proficiency.  The bill
removes students who are sexually, physically, or psychologically abused or
who engage in delinquent conduct, and adds students who in the preceding
school year resided in a residential placement facility, including a
detention facility, substance abuse treatment facility, emergency shelter,
psychiatric hospital, halfway house, or foster group home.  The bill
includes a student who was in the preceding school year or is in the
current school year placed in an alternative education program or expelled
from school.  The bill includes a student who is currently on parole,
probation, deferred prosecution, or other conditional release.  The bill
includes a student who was previously reported in the Public Education
Information Management System as being a dropout.  The bill also includes a
student who is in the custody or care of the Department of Protective and
Regulatory Services or during the current school year is referred to that
department, and a student who  is homeless.  The bill authorizes a student
who satisfies local eligibility criteria adopted by the board of trustees
of a school district to receive compensatory, intensive, and accelerated
instruction. The number of such students may not exceed 10 percent of the
number of students who meet the definition of at-risk students (Sec.
29.081).   

The bill requires the Texas Education Agency (TEA) not later than December
1 of each year to prepare and deliver a comprehensive annual rather than
biennial report and modifies the contents of the interim report (Secs.
39.027, 39.051, 39.182, 39.185, and SECTION 12).  The report is required to
contain the number and percentage of students exempted from the academic
skills assessment instrument and the basis of the exemptions.  The report
is also required to contain information related to the completion rate of
students and the performance of students retained, students placed in an
alternative education program, and students at risk of dropping out of
school.  The report is required to contain a comparison of the performance
of open-enrollment charter schools and school districts (Sec. 39.182).
Beginning with the December 1, 2004 report, TEA will provide a statement
containing the number and percentage of students who do not graduate or
receive a high school equivalency certificate (Sec. 39.182 and SECTION 12).
Beginning with the 2003-2004 school year, the commissioner of education
(commissioner) by rule shall adopt accountability measures to be used in
assessing the progress of students who have failed to perform
satisfactorily in the preceding school year on an assessment instrument
(Sec. 39.051 and SECTION 12). The bill requires a campus' performance on
the academic excellence indicators to include completion rates (Sec.
39.051).  The bill requires TEA in determining a district's accreditation
rating to consider the progress of students who have failed to perform
satisfactorily in the preceding school year on an assessment instrument
(Sec. 39.073).   

The bill requires a school district to use funds allocated for compensatory
education only to fund supplemental programs and services designed to
eliminate educational disparities between students who are at risk of
dropping out of school and the rest of the students in the district,
specifically compensatory, intensive, or accelerated instruction,
alternative education, and Title I support programs at campuses at which at
least 50 percent of the students are educationally disadvantaged.  To
ensure that a sufficient amount of the funds allotted are available to
supplement instructional programs and services, the bill prohibits more
than 20 percent of the funds allotted from being used to fund disciplinary
alternative education programs.  The bill also prohibits more than half of
any disciplinary alternative education program campus's total budget from
being funded from the compensatory education allotment.  The bill
authorizes the commissioner to waive the limitations of these prohibitions
upon an annual petition, by a district's board and a district's site-based
decision making committee, presenting the reason for the need to spend
supplemental compensatory education funds on disciplinary alternative
education programs in excess of the limits established.  The district is
required in its petition to report the number of students in each grade
level, by demographic subgroup, not making satisfactory progress under the
state's assessment system.  The commissioner will make this waiver request
information available annually to the public on the agency's website.
Beginning with the 2003-2004 school year, the bill requires the
commissioner to grant a one-year exemption from fund use requirements to a
school district in which the group of students who have failed to perform
satisfactorily in the preceding school year on an assessment instrument
subsequently performs on those assessment instruments at a level that meets
or exceeds a level prescribed by commissioner rule. (Sec. 42.152).     

EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001. The Act applies beginning with the
2001-2002 school year.  The provisions related to the performance report
and accountability measures to assess the progress of students who have
failed to perform satisfactorily in the preceding school year on an
assessment instrument apply beginning with the 2003-2004 school year.