1-1                                   AN ACT
 1-2     relating to public school accountability and to measures to improve
 1-3     proficiency in certain subjects.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subchapter A, Chapter 7, Education Code, is
 1-6     amended by adding Section 7.006 to read as follows:
 1-7           Sec. 7.006.  COORDINATION OF RECORDS. The commissioner of
 1-8     education and the commissioner of higher education shall ensure
 1-9     that records relating to student performance held by the Texas
1-10     Education Agency and the Texas Higher Education Coordinating Board
1-11     are coordinated and maintained in standardized, compatible formats
1-12     that permit:
1-13                 (1)  the exchange of information between the agencies;
1-14     and
1-15                 (2)  the matching of individual student records so that
1-16     a student's academic performance may be assessed throughout the
1-17     student's educational career.
1-18           SECTION 2. Section 28.025, Education Code, is amended to read
1-19     as follows:
1-20           Sec. 28.025.  HIGH SCHOOL DIPLOMA AND CERTIFICATE; ACADEMIC
1-21     ACHIEVEMENT RECORD. (a)  The State Board of Education by rule shall
1-22     determine curriculum requirements for the minimum, recommended, and
1-23     advanced high school programs that are consistent with the required
1-24     curriculum under Section 28.002.
 2-1           (b)  A school district shall ensure that each student enrolls
 2-2     in the courses necessary to complete the curriculum requirements
 2-3     identified by the State Board of Education under Subsection (a) for
 2-4     the recommended or advanced high school program unless the student,
 2-5     the student's parent or other person standing in parental relation
 2-6     to the student, and a school counselor or school administrator
 2-7     agree that the student should be permitted to take courses under
 2-8     the minimum high school program.
 2-9           (c)  A student may graduate and receive a diploma only if:
2-10                 (1)  the student successfully completes the curriculum
2-11     requirements identified by the State Board of Education under
2-12     Subsection (a) [board] and complies with Section 39.025(a); or
2-13                 (2)  the student successfully completes an
2-14     individualized education program developed under Section 29.005.
2-15           (d) [(b)]  A school district may issue a certificate of
2-16     coursework completion to a student who successfully completes the
2-17     curriculum requirements identified by the State Board of Education
2-18     under Subsection (a) but who fails to comply with Section 39.025(a)
2-19     [perform satisfactorily on the assessment instruments specified by
2-20     Subsection (a)].  A school district may allow a student who
2-21     receives a certificate to participate in a graduation ceremony with
2-22     students receiving high school diplomas.
2-23           (e) [(c)]  Each school district shall report the academic
2-24     achievement record of students who have completed a minimum,
2-25     recommended, or advanced high school program on transcript forms
2-26     adopted by the State Board of Education.  The transcript forms
2-27     adopted by the board must be designed to clearly differentiate
 3-1     between each of the high school programs and identify whether a
 3-2     student received a diploma or a certificate of coursework
 3-3     completion.
 3-4           (f)  Subsection (b) applies to students entering the ninth
 3-5     grade in the 2004-2005 school year and thereafter.  This subsection
 3-6     expires September 1, 2004.
 3-7           SECTION 3.  Subchapter C, Chapter 7, Education Code, is
 3-8     amended by adding Sections 7.058 and 7.059 to read as follows:
 3-9           Sec. 7.058.  RESEARCH ON MATHEMATICS SKILLS ACQUISITION AND
3-10     PROGRAM EFFECTIVENESS.  From funds appropriated for the purpose,
3-11     the commissioner shall award to one or more institutions that have
3-12     demonstrated an ability to conduct science-based research on
3-13     effective instructional strategies that improve student performance
3-14     in mathematics a grant to be used to:
3-15                 (1)  develop and identify research on mathematics
3-16     skills acquisition and student learning in mathematics;
3-17                 (2)  monitor the effectiveness of professional
3-18     development institutes under Section 21.455 based on performance in
3-19     mathematics by the students of teachers who have attended an
3-20     institute;
3-21                 (3)  examine the effect of professional development
3-22     institutes on the classroom performance of teachers who have
3-23     attended an institute;
3-24                 (4)  identify common practices used at high-performing
3-25     school campuses that lead to improved student performance in
3-26     mathematics; and
3-27                 (5)  develop research on cognitive development in
 4-1     children concerning mathematics skills development.
 4-2           Sec. 7.059.  MATHEMATICS HOMEWORK AND GRADING SERVICE. (a)
 4-3     From funds appropriated for the purpose, the commissioner shall
 4-4     help make available services that assist teachers in providing and
 4-5     grading mathematics homework assignments.  The services may also
 4-6     assist teachers in providing and grading student examinations.
 4-7           (b)  In helping make the services described by Subsection (a)
 4-8     available, the commissioner shall consider all methods available
 4-9     through advanced technology, especially methods using the Internet,
4-10     to distribute mathematics homework assignments and to provide
4-11     immediate assessment of a student's work on the assignment.
4-12           (c)  Each homework assignment offered through the service:
4-13                 (1)  must be created with consideration for the
4-14     underlying mathematical skills required to be taught at the grade
4-15     level for which the assignment is designed;
4-16                 (2)  may be based on a step-by-step procedure for
4-17     solving mathematical problems provided by the assignment that may
4-18     be adapted to individual student and instructor needs;
4-19                 (3)  may be accompanied by a solution to each
4-20     mathematical problem assigned;
4-21                 (4)  may be accompanied by other pedagogically valuable
4-22     material appropriate for a particular student; and
4-23                 (5)  to the extent possible, should correlate to an
4-24     instructional program or programs being used in classrooms in this
4-25     state.
4-26           SECTION 4.  Subchapter B, Chapter 21, Education Code, is
4-27     amended by adding Section 21.0482 to read as follows:
 5-1           Sec. 21.0482.  MASTER MATHEMATICS TEACHER CERTIFICATION. (a)
 5-2     To ensure that there are teachers with special training to work
 5-3     with other teachers and with students in order to improve student
 5-4     mathematics performance, the board shall establish:
 5-5                 (1)  a master mathematics teacher certificate to teach
 5-6     mathematics at elementary school grade levels;
 5-7                 (2)  a master mathematics teacher certificate to teach
 5-8     mathematics at middle school grade levels; and
 5-9                 (3)  a master mathematics teacher certificate to teach
5-10     mathematics at high school grade levels.
5-11           (b)  The board shall issue the appropriate master mathematics
5-12     teacher certificate to each eligible person.
5-13           (c)  To be eligible for a master mathematics teacher
5-14     certificate, a person must:
5-15                 (1)  hold a teaching certificate issued under this
5-16     subchapter;
5-17                 (2)  have at least three years of teaching experience;
5-18                 (3)  satisfactorily complete a knowledge-based course
5-19     of instruction on the science of teaching children mathematics that
5-20     includes training in mathematics instruction and professional peer
5-21     mentoring techniques that, through scientific testing, have been
5-22     proven effective;
5-23                 (4)  perform satisfactorily on the appropriate master
5-24     mathematics teacher certification examination prescribed by the
5-25     board; and
5-26                 (5)  satisfy any other requirements prescribed by the
5-27     board.
 6-1           (d)  The course of instruction prescribed under Subsection
 6-2     (c)(3) shall be developed by the board in consultation with
 6-3     mathematics and science faculty members at institutions of higher
 6-4     education.
 6-5           SECTION 5.  Subchapter I, Chapter 21, Education Code, is
 6-6     amended by adding Section 21.411 to read as follows:
 6-7           Sec. 21.411.  MASTER MATHEMATICS TEACHER GRANT PROGRAM. (a)
 6-8     The commissioner shall establish a master mathematics teacher grant
 6-9     program to encourage teachers to:
6-10                 (1)  become certified as master mathematics teachers;
6-11     and
6-12                 (2)  work with other teachers and with students in
6-13     order to improve student mathematics performance.
6-14           (b)  From funds appropriated for the purpose, the
6-15     commissioner shall make grants to school districts as provided by
6-16     this section to pay stipends to selected certified master
6-17     mathematics teachers who teach at high-need campuses.
6-18           (c)  The commissioner shall annually identify each high-need
6-19     campus in a school district using criteria established by the
6-20     commissioner by rule, including performance on the mathematics
6-21     assessment instrument administered under Section 39.023.  The
6-22     commissioner shall also use the criteria to rank campuses in order
6-23     of greatest need.
6-24           (d)  A school district may apply to the commissioner for
6-25     grants for each high-need campus identified by the commissioner to
6-26     be used to pay stipends to certified master mathematics teachers in
6-27     accordance with this section.  Unless reduced under Subsection (g)
 7-1     or (i), each grant is in the amount of $5,000. The commissioner
 7-2     shall approve the application if the district:
 7-3                 (1)  applies within the period and in the manner
 7-4     required by rule adopted by the commissioner; and
 7-5                 (2)  agrees to use each grant only for the purpose of
 7-6     paying a year-end stipend to a master mathematics teacher:
 7-7                       (A)  who holds the appropriate certificate issued
 7-8     under Section 21.0482;
 7-9                       (B)  who teaches in a position prescribed by the
7-10     district at a high-need campus identified by the commissioner;
7-11                       (C)  whose primary duties include:
7-12                             (i)  teaching mathematics; and
7-13                             (ii)  serving as a mathematics teaching
7-14     mentor to other teachers for the amount of time and in the manner
7-15     established by the district and by rule adopted by the
7-16     commissioner; and
7-17                       (D)  who satisfies any other requirements
7-18     established by rule adopted by the commissioner.
7-19           (e)  Unless reduced under Subsection (g) or (i), a stipend
7-20     under Subsection (d)(2) is in the amount of $5,000.
7-21           (f)  The commissioner shall adopt rules for the distribution
7-22     of grants to school districts following the year of the initial
7-23     grant.  A district that has been approved for a grant to pay a
7-24     stipend to a certified master mathematics teacher is not required
7-25     to reapply for a grant for two consecutive school years following
7-26     the year of the initial grant if the district:
7-27                 (1)  continues to pay a stipend as provided by
 8-1     Subsection (g); and
 8-2                 (2)  notifies the commissioner in writing, within the
 8-3     period and in the manner prescribed by the commissioner, that the
 8-4     circumstances on which the grant was based have not changed.
 8-5           (g)  The commissioner shall reduce payments to a school
 8-6     district proportionately to the extent a teacher does not meet the
 8-7     requirements under Subsection (d)(2) for the entire school year.  A
 8-8     district that employs more certified master mathematics teachers
 8-9     than the number of grants available under this section shall select
8-10     the certified master mathematics teachers to whom to pay stipends
8-11     based on a policy adopted by the board of trustees of the district,
8-12     except that a district shall pay a stipend for two additional
8-13     consecutive school years to a teacher the district has selected for
8-14     and paid a stipend for a school year, who remains eligible for a
8-15     stipend under Subsection (d)(2), and for whom the district receives
8-16     a grant under this section for those years.  A decision of the
8-17     district under this subsection is final and may not be appealed.
8-18     The district may not apportion among teachers a stipend paid for
8-19     with a grant the district receives under this section.  The
8-20     district may use local money to pay additional stipends in amounts
8-21     determined by the district.
8-22           (h)  A grant a school district receives under this section is
8-23     in addition to any funding the district receives under Chapter 42.
8-24     The commissioner shall distribute funds under this section with the
8-25     Foundation School Program payment to which the district is entitled
8-26     as soon as practicable after the end of the school year as
8-27     determined by the commissioner.  A district to which Chapter 41
 9-1     applies is entitled to the grants paid under this section.  The
 9-2     commissioner shall determine the timing of the distribution of
 9-3     grants to a district that does not receive Foundation School
 9-4     Program payments.
 9-5           (i)  This section does not create a property right to a grant
 9-6     or stipend.  A school district is entitled to a grant to carry out
 9-7     the purposes of this section only to the extent the commissioner
 9-8     makes the grant in accordance with this section and only to the
 9-9     extent sufficient state funds are appropriated for those purposes.
9-10     If state funds are appropriated but are insufficient to fully fund
9-11     a grant, the commissioner shall reduce the grant paid to each
9-12     district and the district shall reduce the stipend the district
9-13     pays to each teacher under this section proportionately so that
9-14     each selected teacher receives the same amount of money.
9-15           (j)  A decision of the commissioner concerning the amount of
9-16     money to which a school district is entitled under this section is
9-17     final and may not be appealed.  Each district shall, in the manner
9-18     and at the time prescribed by the commissioner, provide to the
9-19     commissioner proof acceptable to the commissioner of the master
9-20     mathematics teacher certification of a teacher to whom the district
9-21     is paying a stipend under this section.
9-22           (k)  The commissioner may audit the expenditure of money
9-23     appropriated for purposes of this section.  A district's use of the
9-24     money appropriated for purposes of this section shall be verified
9-25     as part of the district audit under Section 44.008.
9-26           (l)  A stipend a teacher receives under this section is not
9-27     considered in determining whether the district is paying the
 10-1    teacher the minimum monthly salary under Section 21.402.
 10-2          (m)  The commissioner may adopt other rules as necessary to
 10-3    implement this section.
 10-4          SECTION 6.  Subchapter J, Chapter 21, Education Code, is
 10-5    amended by adding Sections 21.454 and 21.455 to read as follows:
 10-6          Sec. 21.454.  MATHEMATICS TRAINING. (a)  The commissioner
 10-7    shall develop training materials and other teacher training
 10-8    resources for a school district to use in assisting mathematics
 10-9    teachers in developing:
10-10                (1)  expertise in the appropriate mathematics
10-11    curriculum; and
10-12                (2)  comprehension of the instructional approaches
10-13    that, through scientific testing, have been proven effective in
10-14    improving student mathematics skills.
10-15          (b)  The commissioner shall develop materials and resources
10-16    under this section in consultation with appropriate faculty members
10-17    at institutions of higher education.
10-18          (c)  The commissioner shall make the training materials and
10-19    other teacher training resources required under Subsection (a)
10-20    available to mathematics teachers through a variety of mechanisms,
10-21    including distance learning, mentoring programs, small group
10-22    inquiries, computer-assisted training, and mechanisms based on
10-23    trainer-of-trainer models.
10-24          (d)  The commissioner shall use funds appropriated for the
10-25    purpose to administer this section.
10-26          Sec. 21.455.  PROFESSIONAL DEVELOPMENT INSTITUTES IN
10-27    MATHEMATICS. (a)  The commissioner shall develop and make available
 11-1    professional development institutes for teachers who provide
 11-2    instruction in mathematics to students at the fifth through eighth
 11-3    grade levels.
 11-4          (b)  A professional development institute developed under
 11-5    this section must address:
 11-6                (1)  the underlying mathematical skills required to be
 11-7    taught at the relevant grade levels; and
 11-8                (2)  mathematical instruction techniques that, through
 11-9    scientific testing, have been proven effective.
11-10          (c)  The commissioner shall develop professional development
11-11    institutes under this section in consultation with mathematics and
11-12    science faculty members at institutions of higher education.
11-13          (d)  The commissioner shall adopt criteria for selection of
11-14    teachers authorized to attend a professional development institute
11-15    developed under this section.
11-16          (e)  From funds appropriated for the purpose, the
11-17    commissioner shall pay a stipend to each teacher who completes a
11-18    professional development institute developed under this section.
11-19    The commissioner shall determine the amount of the stipend paid
11-20    under this subsection.
11-21          SECTION 7.  Subchapter A, Chapter 28, Education Code, is
11-22    amended by adding Section 28.007 to read as follows:
11-23          Sec. 28.007.  MATHEMATICS DIAGNOSIS. (a)  Using funds
11-24    appropriated for the purpose, the commissioner shall develop and
11-25    make available or contract for the development and dissemination of
11-26    assessment instruments that a school district may use to diagnose
11-27    student mathematics skills.  In developing the assessment
 12-1    instruments, all assessment methods available through advanced
 12-2    technology, including methods using the Internet or other computer
 12-3    resources to provide immediate assessment of a student's skills,
 12-4    shall be considered.
 12-5          (b)  The results of assessment instruments developed under
 12-6    Subsection (a) may not be used for purposes of appraisals and
 12-7    incentives under Chapter 21 or accountability under Chapter 39.
 12-8          SECTION 8.  Subchapter C, Chapter 29, Education Code, is
 12-9    amended by adding Section 29.087 to read as follows:
12-10          Sec. 29.087.  AFTER-SCHOOL AND SUMMER INTENSIVE MATHEMATICS
12-11    INSTRUCTION PROGRAMS. (a)  A school district may provide an
12-12    intensive after-school program or an intensive program during the
12-13    period that school is recessed for the summer to provide
12-14    mathematics instruction to:
12-15                (1)  students who are not performing at grade level in
12-16    mathematics to assist those students in performing at grade level;
12-17                (2)  students who are not performing successfully in a
12-18    mathematics course to assist those students in successfully
12-19    completing the course; or
12-20                (3)  students other than those described by Subdivision
12-21    (1) or (2), as determined by the district.
12-22          (b)  Before providing a program under this section, the board
12-23    of trustees of a school district must adopt a policy for:
12-24                (1)  determining student eligibility for participating
12-25    in the program that:
12-26                      (A)  prescribes the grade level or course a
12-27    student must be enrolled in to be eligible; and
 13-1                      (B)  provides for considering teacher
 13-2    recommendations in determining eligibility;
 13-3                (2)  ensuring that parents of or persons standing in
 13-4    parental relation to eligible students are provided notice of the
 13-5    program;
 13-6                (3)  ensuring that eligible students are encouraged to
 13-7    attend the program;
 13-8                (4)  ensuring that the program is offered at one or
 13-9    more locations in the district that are easily accessible to
13-10    eligible students; and
13-11                (5)  measuring student progress on completion of the
13-12    program.
13-13          (c)  The commissioner by rule shall:
13-14                (1)  prescribe a procedure that a school district must
13-15    follow to apply for and receive funding for a program under this
13-16    section;
13-17                (2)  adopt guidelines for determining which districts
13-18    receive funding if there is not sufficient funding for each
13-19    district that applies;
13-20                (3)  require each district providing a program to
13-21    report student performance results to the commissioner within the
13-22    period and in the manner prescribed by the rule; and
13-23                (4)  based on district reports under Subdivision (3)
13-24    and any required analysis and verification of those reports,
13-25    disseminate to each district in this state information concerning
13-26    instructional methods that have proved successful in improving
13-27    student performance in mathematics.
 14-1          (d)  A program provided under this section shall be paid for
 14-2    with funds appropriated for that purpose.
 14-3          SECTION 9.  Section 39.023, Education Code, is amended by
 14-4    amending Subsections (e) and (i) and adding Subsections (d), (j),
 14-5    and (m) to read as follows:
 14-6          (d)  The commissioner may participate in multistate efforts
 14-7    to develop voluntary standardized end-of-course assessment
 14-8    instruments.  The commissioner by rule may require a school
 14-9    district to administer an end-of-course assessment instrument
14-10    developed through the multistate efforts.  The admission, review,
14-11    and dismissal committee of a student in a special education program
14-12    under Subchapter A, Chapter 29, shall determine whether any
14-13    allowable modification is necessary in administering to the student
14-14    an end-of-course assessment instrument or whether the student
14-15    should be exempted under Section 39.027(a)(2).
14-16          (e)  Under rules adopted by the State Board of Education, the
14-17    agency shall release the questions and answer keys to each
14-18    assessment instrument administered under Subsection (a), (b), (c),
14-19    (d), or (l) after the last time the instrument is administered for
14-20    a school year.  To ensure a valid bank of questions for use each
14-21    year, the agency is not required to release a question that is
14-22    being field-tested and was not used to compute the student's score
14-23    on the instrument.  The agency shall also release, under board
14-24    rule, each question that is no longer being field-tested and that
14-25    was not used to compute a student's score.
14-26          (i)  The provisions of this section, except Subsection (d),
14-27    are subject to modification by rules adopted under Section 39.022.
 15-1    Each assessment instrument adopted under those rules and each
 15-2    assessment instrument required under Subsection (d) must be
 15-3    reliable and valid and must meet any applicable federal
 15-4    requirements for measurement of student progress.
 15-5          (j)  The commissioner shall develop a standardized
 15-6    end-of-course assessment instrument for Algebra I.  The
 15-7    commissioner by rule may require a school district to administer an
 15-8    end-of-course assessment instrument in Algebra I.  The admission,
 15-9    review, and dismissal committee of a student in a special education
15-10    program under Subchapter A, Chapter 29, shall determine whether any
15-11    allowable modification is necessary in administering to the student
15-12    an end-of-course assessment instrument or whether the student
15-13    should be exempted under Section 39.027(a)(2).
15-14          (m)  This subsection applies only to a student who is
15-15    determined to have dyslexia or a related disorder and who is an
15-16    individual with a disability under 29 U.S.C. Section 705(20) and
15-17    its subsequent amendments.  The agency shall adopt or develop
15-18    appropriate criterion-referenced assessment instruments designed to
15-19    assess the ability of and to be administered to each student to
15-20    whom this subsection applies for whom the assessment instruments
15-21    adopted under Subsection (a), even with allowable modifications,
15-22    would not provide an appropriate measure of student achievement, as
15-23    determined by the committee established by the board of trustees of
15-24    the district to determine the placement of students with dyslexia
15-25    or related disorders.  The committee shall determine whether any
15-26    allowable modification is necessary in administering to a student
15-27    an assessment instrument required under this subsection. The
 16-1    assessment instruments required under this subsection shall be
 16-2    administered on the same schedule as the assessment instruments
 16-3    administered under Subsection (a).
 16-4          SECTION 10.  Subsection (b), Section 39.051, Education Code,
 16-5    as amended by Chapters 396, 397, and 1422, Acts of the 76th
 16-6    Legislature, Regular Session, 1999, is reenacted and amended to
 16-7    read as follows:
 16-8          (b)  Performance on the indicators adopted under this section
 16-9    shall be compared to state-established standards.  The degree of
16-10    change from one school year to the next in performance on each
16-11    indicator adopted under this section shall also be considered.  The
16-12    indicators must be based on information that is disaggregated with
16-13    respect to race, ethnicity, sex, and socioeconomic status and must
16-14    include:
16-15                (1)  the results of assessment instruments required
16-16    under Sections 39.023(a), (c), and (l), aggregated by grade level
16-17    and subject area;
16-18                (2)  dropout rates, including dropout rates and
16-19    district completion rates for grade levels 9 through 12;
16-20                (3)  student attendance rates;
16-21                (4)  the percentage of graduating students who attain
16-22    scores on the secondary exit-level assessment instruments required
16-23    under Subchapter B that are equivalent to a passing score on the
16-24    test instrument required under Section 51.306;
16-25                (5)  the percentage of graduating students who meet the
16-26    course requirements established for the recommended high school
16-27    program by State Board of Education rule;
 17-1                (6)  the results of the Scholastic Assessment Test
 17-2    (SAT), the American College Test, articulated postsecondary degree
 17-3    programs described by Section 61.852, and certified workforce
 17-4    training programs described by Chapter 311, Labor Code;
 17-5                (7)  the number of students, aggregated by grade level,
 17-6    provided accelerated instruction under Section 28.0211(c), the
 17-7    results of assessments administered under that section, the number
 17-8    of students promoted through the grade placement committee process
 17-9    under Section 28.0211, the subject of the assessment instrument on
17-10    which each student failed to perform satisfactorily, and the
17-11    performance of those students in the school year following that
17-12    promotion on the assessment instruments required under Section
17-13    39.023;
17-14                (8)  for students who have failed to perform
17-15    satisfactorily on an assessment instrument required under Section
17-16    39.023(a) or (c), the numerical progress of those students on
17-17    subsequent assessment instruments required under those sections,
17-18    aggregated by grade level and subject area;
17-19                (9)  the percentage of students exempted, by exemption
17-20    category, from the assessment program generally applicable under
17-21    this subchapter; and
17-22                (10)  any other indicator the State Board of Education
17-23    adopts.
17-24          SECTION 11.  Subsection (a), Section 39.053, Education Code,
17-25    as amended by Chapters 510 and 1417, Acts of the 76th Legislature,
17-26    Regular Session, 1999, is reenacted and amended to read as follows:
17-27          (a)  Each board of trustees shall publish an annual report
 18-1    describing the educational performance of the district and of each
 18-2    campus in the district that includes uniform student performance
 18-3    and descriptive information as determined under rules adopted by
 18-4    the commissioner.  The annual report must also include:
 18-5                (1)  campus performance objectives established under
 18-6    Section 11.253 and the progress of each campus toward those
 18-7    objectives, which shall be available to the public;
 18-8                (2)  the performance rating for the district as
 18-9    provided under Section 39.072(a) and the performance rating of each
18-10    campus in the district as provided under Section 39.072(c); [and]
18-11                (3)  the district's current special education
18-12    compliance status with the agency;
18-13                (4)  [.  In addition, the annual report must include] a
18-14    statement of the number, rate, and type of violent or criminal
18-15    incidents that occurred on each district campus, to the extent
18-16    permitted under the Family Educational Rights and Privacy Act of
18-17    1974 (20 U.S.C. Section 1232g);
18-18                (5)  [,] information concerning school violence
18-19    prevention and violence intervention policies and procedures that
18-20    the district is using to protect students;
18-21                (6)  [, and] the findings that result from evaluations
18-22    conducted under the Safe and Drug-Free Schools and Communities Act
18-23    of 1994 (20 U.S.C. Section 7101 et seq.) and its subsequent
18-24    amendments; and
18-25                (7)  information received under Section 51.403(e) for
18-26    each high school campus in the district, presented in a form
18-27    determined by the commissioner.
 19-1          SECTION 12.  Subchapter C, Chapter 39, Education Code, is
 19-2    amended by adding Section 39.055 to read as follows:
 19-3          Sec. 39.055.  ANNUAL AUDIT OF DROPOUT RECORDS; REPORT.
 19-4    (a)  The board of trustees of each school district shall have the
 19-5    district's dropout records audited annually at district expense by
 19-6    a public accountant or certified public accountant who:
 19-7                (1)  is certified or registered, as appropriate, and
 19-8    licensed under Chapter 901, Occupations Code;
 19-9                (2)  has successfully completed training provided by
19-10    the agency in auditing school dropout records; and
19-11                (3)  is not an employee of the district.
19-12          (b)  The audit of dropout records must be completed following
19-13    the end of each school year.
19-14          (c)  The audit of dropout records must meet at least the
19-15    minimum requirements and be in the format prescribed by the
19-16    commissioner, subject to review and comment by the state auditor.
19-17          (d)  The district shall submit a copy of the report of the
19-18    audit of dropout records, approved by the district's board of
19-19    trustees, to the agency.  If the board of trustees declines or
19-20    refuses to approve the report, the board shall file with the agency
19-21    a copy of the report with the board's statement giving detailed
19-22    reasons for not approving the report.  The district must submit a
19-23    copy of the report and any statement required by this subsection
19-24    not later than the 90th day after the last day permissible for
19-25    resubmission of information required under Section 42.006.
19-26          (e)  The agency shall review each report of an audit of
19-27    dropout records.  The commissioner shall notify the board of
 20-1    trustees of a school district of any objection the commissioner has
 20-2    to the district's report, any violation of sound accounting
 20-3    practices or of a law or rule revealed by the report, or any
 20-4    recommendation by the commissioner concerning the report.  If the
 20-5    report reflects that a penal law has been violated, the
 20-6    commissioner shall notify the county attorney, district attorney,
 20-7    or criminal district attorney, as appropriate, and the attorney
 20-8    general.  The commissioner is entitled to access to all district
 20-9    records the commissioner considers necessary or appropriate for the
20-10    review, analysis, or approval of a report.
20-11          SECTION 13.  (a)  Subchapter D, Chapter 39, Education Code,
20-12    is amended by adding Section 39.0721 to read as follows:
20-13          Sec. 39.0721.  GOLD PERFORMANCE RATING PROGRAM. (a)  In
20-14    addition to district and campus performance ratings reported under
20-15    Section 39.072, the commissioner shall develop a gold performance
20-16    rating program based on enhanced performance.  The agency shall
20-17    administer the program.
20-18          (b)  Under the gold performance rating program, a district or
20-19    campus rated exemplary under Section 39.072 is eligible for an
20-20    exemplary gold rating, a district or campus rated recognized is
20-21    eligible for a recognized gold rating, and a district or campus
20-22    rated academically acceptable is eligible for an academically
20-23    acceptable gold rating.
20-24          (c)  The performance standards on which a gold performance
20-25    rating is based should include:
20-26                (1)  student proficiency on:
20-27                      (A)  assessment instruments administered under
 21-1    Sections 39.023(a), (c), and (l); and
 21-2                      (B)  other measures of proficiency determined by
 21-3    the commissioner;
 21-4                (2)  student performance on one or more nationally
 21-5    recognized norm-referenced assessment instruments;
 21-6                (3)  improvement in student performance;
 21-7                (4)  in the case of middle or junior high school
 21-8    campuses, student proficiency in mathematics, including algebra;
 21-9    and
21-10                (5)  in the case of high school campuses:
21-11                      (A)  the extent to which graduating students are
21-12    academically prepared to attend institutions of higher education;
21-13                      (B)  the percentage of students who take advanced
21-14    placement tests and student performance on those tests; and
21-15                      (C)  the percentage of students who take and
21-16    successfully complete advanced academic courses or college-level
21-17    course work offered through dual credit programs provided under
21-18    agreements between high schools and institutions of higher
21-19    education.
21-20          (d)  The commissioner may adopt rules as necessary to
21-21    implement and administer this section.
21-22          (b)  Not later than June 30, 2002, the commissioner of
21-23    education shall complete development of the gold performance rating
21-24    program as provided by Section 39.0721, Education Code, as added by
21-25    Subsection (a) of this section, and shall adopt any rules necessary
21-26    for implementation and administration of Section 39.0721, Education
21-27    Code.
 22-1          (c)  Beginning with the 2001-2002 school year, the Texas
 22-2    Education Agency shall implement the gold performance rating
 22-3    program under Section 39.0721, Education Code, as added by
 22-4    Subsection (a) of this section.
 22-5          SECTION 14. Section 39.131, Education Code, is amended by
 22-6    adding Subsections (a-1), (f), and (j) and redesignating existing
 22-7    Subsections (f)-(h) as Subsections (g)-(i) to read as follows:
 22-8          (a-1)  This subsection applies regardless of whether a
 22-9    district has satisfied the accreditation criteria.  If for a period
22-10    of one year or more a district has had a master or management team
22-11    assigned, the commissioner may appoint a board of managers, a
22-12    majority of whom must be residents of the district, to exercise the
22-13    powers and duties of the board of trustees.
22-14          (f)  A board of managers may exercise all of the powers and
22-15    duties assigned to a board of trustees of a school district by law,
22-16    rule, or regulation.  This section applies to a district governed
22-17    by a board of managers in the same manner that this section applies
22-18    to any other district.  A master or a member of a management team
22-19    appointed to serve on a board of managers may continue to be
22-20    compensated as determined by the commissioner.  At the direction of
22-21    the commissioner but not later than the second anniversary of the
22-22    date the board of managers was appointed, the board of managers
22-23    shall order an election of members of the district board of
22-24    trustees.  The  election must be held on a uniform election date on
22-25    which an election of district trustees may be held under Section
22-26    41.001, Election Code, that is at least 180 days after the date the
22-27    election was ordered.  On qualification of members for office, the
 23-1    board of trustees assumes all of the powers and duties assigned to
 23-2    a board of trustees by law, rule, or regulation.
 23-3          (g) [(f)]  A special campus intervention team appointed under
 23-4    this section may consist of teachers, principals, other educational
 23-5    professionals, and superintendents recognized for excellence in
 23-6    their roles and appointed by the commissioner to serve as members
 23-7    of a team.
 23-8          (h) [(g)]  If the commissioner appoints a board of managers
 23-9    to govern a district, the powers of the board of trustees of the
23-10    district are suspended for the period of the appointment and the
23-11    commissioner shall appoint a district superintendent.
23-12    Notwithstanding any other provision of this code, the board of
23-13    managers may amend the budget of the district.
23-14          (i) [(h)]  If the commissioner appoints a board of managers
23-15    to govern a campus, the powers of the board of trustees of the
23-16    district in relation to the campus are suspended for the period of
23-17    the appointment and the commissioner shall appoint a campus
23-18    principal.  Notwithstanding any other provision of this code, the
23-19    board of managers may submit to the commissioner for approval
23-20    amendments to the budget of the district for the benefit of the
23-21    campus.  If the commissioner approves the amendments, the board of
23-22    trustees of the district shall adopt the amendments.
23-23          (j)  An employee, volunteer, or contractor acting on behalf
23-24    of the commissioner under this subchapter is immune from civil
23-25    liability to the same extent as a professional employee of a school
23-26    district under Section 22.051.
23-27          SECTION 15.  Subsection (a), Section 39.182, Education Code,
 24-1    is amended to read as follows:
 24-2          (a)  The agency shall prepare and deliver to the governor,
 24-3    the lieutenant governor, the speaker of the house of
 24-4    representatives, each member of the legislature, the Legislative
 24-5    Budget Board, and the clerks of the standing committees of the
 24-6    senate and house of representatives with primary jurisdiction over
 24-7    the public school system a comprehensive report covering the
 24-8    preceding two school years and containing:
 24-9                (1)  an evaluation of the achievements of the state
24-10    educational program in relation to the statutory goals for the
24-11    public education system under Section 4.002;
24-12                (2)  an evaluation of the status of education in the
24-13    state as reflected by the academic excellence indicators adopted
24-14    under Section 39.051;
24-15                (3)  a summary compilation of overall student
24-16    performance on academic skills assessment instruments required by
24-17    Section 39.023, aggregated by grade level, subject area, campus,
24-18    and district, with appropriate interpretations and analysis and
24-19    disaggregated by race, ethnicity, sex, and socioeconomic status;
24-20                (4)  an evaluation of the correlation between student
24-21    grades and student performance on academic skills assessment
24-22    instruments required by Section 39.023;
24-23                (5)  a statement of the dropout rate of students in
24-24    grade levels 7 through 12, expressed in the aggregate and by grade
24-25    level, and a statement of the completion rates of students for
24-26    grade levels 9 through 12;
24-27                (6)  a statement of the projected cross-sectional and
 25-1    longitudinal dropout rates for grade levels 7 through 12 for the
 25-2    next five years, assuming no state action is taken to reduce the
 25-3    dropout rate;
 25-4                (7)  a description of a systematic plan for reducing
 25-5    the projected cross-sectional and longitudinal dropout rates to
 25-6    five percent or less for the 1997-1998 school year;
 25-7                (8)  a summary of the information required by Section
 25-8    29.083 regarding grade level retention of students;
 25-9                (9)  a list of each school district or campus that does
25-10    not satisfy performance standards, with an explanation of the
25-11    actions taken by the commissioner to improve student performance in
25-12    the district or campus and an evaluation of the results of those
25-13    actions;
25-14                (10)  an evaluation of the status of the curriculum
25-15    taught in public schools, with recommendations for legislative
25-16    changes necessary to improve or modify the curriculum required by
25-17    Section 28.002;
25-18                (11)  a description of all funds received by and each
25-19    activity and expenditure of the agency;
25-20                (12)  a summary and analysis of the compliance of
25-21    school districts with administrative cost ratios set by the
25-22    commissioner under Section 42.201, including any improvements and
25-23    cost savings achieved by school districts;
25-24                (13)  a summary of the effect of deregulation,
25-25    including exemptions and waivers granted under Section 7.056 or
25-26    39.112;
25-27                (14)  a statement of the total number and length of
 26-1    reports that school districts and school district employees must
 26-2    submit to the agency, identifying which reports are required by
 26-3    federal statute or rule, state statute, or agency rule, and a
 26-4    summary of the agency's efforts to reduce overall reporting
 26-5    requirements;
 26-6                (15)  a list of each school district that is not in
 26-7    compliance with state special education requirements, including:
 26-8                      (A)  the period for which the district has not
 26-9    been in compliance;
26-10                      (B)  the manner in which the agency considered
26-11    the district's failure to comply in determining the district's
26-12    accreditation status; and
26-13                      (C)  an explanation of the actions taken by the
26-14    commissioner to ensure compliance and an evaluation of the results
26-15    of those actions; and
26-16                (16)  any additional information considered important
26-17    by the commissioner or the State Board of Education.
26-18          SECTION 16.  Subsection (b), Section 822.201, Government
26-19    Code, is amended to read as follows:
26-20          (b)  "Salary and wages" as used in Subsection (a) means:
26-21                (1)  normal periodic payments of money for service the
26-22    right to which accrues on a regular basis in proportion to the
26-23    service performed;
26-24                (2)  amounts by which the member's salary is reduced
26-25    under a salary reduction agreement authorized by Chapter 610;
26-26                (3)  amounts that would otherwise qualify as salary and
26-27    wages under Subdivision (1) but are not received directly by the
 27-1    member pursuant to a good faith, voluntary written salary reduction
 27-2    agreement in order to finance payments to a deferred compensation
 27-3    or tax sheltered annuity program specifically authorized by state
 27-4    law or to finance benefit options under a cafeteria plan qualifying
 27-5    under Section 125 of the Internal Revenue Code of 1986 [(26 U.S.C.
 27-6    Section 125)], if:
 27-7                      (A)  the program or benefit options are made
 27-8    available to all employees of the employer; and
 27-9                      (B)  the benefit options in the cafeteria plan
27-10    are limited to one or more options that provide deferred
27-11    compensation, group health and disability insurance, group term
27-12    life insurance, dependent care assistance programs, or group legal
27-13    services plans;
27-14                (4)  performance pay awarded to an employee by a school
27-15    district as part of a total compensation plan approved by the board
27-16    of trustees of the district and meeting the requirements of
27-17    Subsection (e); [and]
27-18                (5)  the benefit replacement pay a person earns under
27-19    Subchapter H, Chapter 659, as added by Chapter 417, Acts of the
27-20    74th Legislature, 1995, except as provided by Subsection (c); and
27-21                (6)  stipends paid to teachers in accordance with
27-22    Section 21.410 or 21.411, Education Code.
27-23          SECTION 17.  (a)  The State Board for Educator Certification
27-24    shall propose rules establishing requirements and prescribing an
27-25    examination for master mathematics teacher certification as
27-26    required by Section 21.0482, Education Code, as added by this Act,
27-27    not later than January 1, 2003.
 28-1          (b)  Beginning with the 2003-2004 school year:
 28-2                (1)  the commissioner of education shall pay grants
 28-3    under Section 21.411, Education Code, as added by this Act; and
 28-4                (2)  school districts receiving grants shall pay
 28-5    stipends to certified master mathematics teachers under Section
 28-6    21.411, Education Code, as added by this Act.
 28-7          SECTION 18. Before the 2005-2006 school year, the Texas
 28-8    Education Agency shall field-test assessment instruments required
 28-9    to be adopted or developed under Section 39.023(m), Education Code,
28-10    as added by this Act.  Not later than the 2005-2006 school year,
28-11    the Texas Education Agency shall adopt or develop and the State
28-12    Board of Education shall administer those assessment instruments.
28-13          SECTION 19.  Each school district shall have its dropout
28-14    records audited as required by Section 39.055, Education Code, as
28-15    added by this Act, beginning with dropout records for the 2001-2002
28-16    school year.
28-17          SECTION 20.  Not later than February 1, 2002, the Texas
28-18    Education Agency shall:
28-19                (1)  develop a training program for public accountants
28-20    and certified public accountants in auditing public school dropout
28-21    records as provided under Section 39.055, Education Code, as added
28-22    by this Act; and
28-23                (2)  make the training program readily available to
28-24    public accountants and certified public accountants throughout this
28-25    state.
28-26          SECTION 21.  (a)  Except as provided by Subsection (b) of
28-27    this section, this Act takes effect immediately if it receives a
 29-1    vote of two-thirds of all the members elected to each house, as
 29-2    provided by Section 39, Article III, Texas Constitution.  If this
 29-3    Act does not receive the vote necessary for immediate effect, this
 29-4    Act takes effect September 1, 2001.
 29-5          (b)  Sections 10, 11, and 15 of this Act take effect
 29-6    September 1, 2001.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 1144 was passed by the House on May
         8, 2001, by a non-record vote; and that the House concurred in
         Senate amendments to H.B. No. 1144 on May 24, 2001, by a non-record
         vote.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 1144 was passed by the Senate, with
         amendments, on May 21, 2001, by the following vote:  Yeas 30, Nays
         0, 1 present, not voting.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  __________________________
                              Date
                    __________________________
                            Governor