1-1     By:  Grusendorf, et al. (Senate Sponsor - Harris)     H.B. No. 1144
 1-2           (In the Senate - Received from the House May 9, 2001;
 1-3     May 10, 2001, read first time and referred to Committee on
 1-4     Education; May 11, 2001, reported adversely, with favorable
 1-5     Committee Substitute by the following vote:  Yeas 5, Nays 0;
 1-6     May 11, 2001, sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR H.B. No. 1144                  By:  Bivins
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to public school accountability and to measures to improve
1-11     proficiency in certain subjects.
1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13           SECTION 1.  Subchapter A, Chapter 7, Education Code, is
1-14     amended by adding Section 7.006 to read as follows:
1-15           Sec. 7.006.  COORDINATION OF RECORDS. The commissioner of
1-16     education and the commissioner of higher education shall ensure
1-17     that records relating to student performance held by the Texas
1-18     Education Agency and the Texas Higher Education Coordinating Board
1-19     are coordinated and maintained in standardized, compatible formats
1-20     that permit:
1-21                 (1)  the exchange of information between the agencies;
1-22     and
1-23                 (2)  the matching of individual student records so that
1-24     a student's academic performance may be assessed throughout the
1-25     student's educational career.
1-26           SECTION 2.  Subchapter C, Chapter 7, Education Code, is
1-27     amended by adding Sections 7.058 and 7.059 to read as follows:
1-28           Sec. 7.058.  RESEARCH ON MATHEMATICS SKILLS ACQUISITION AND
1-29     PROGRAM EFFECTIVENESS.  From funds appropriated for the purpose,
1-30     the commissioner shall award to one or more institutions that have
1-31     demonstrated an ability to conduct science-based research on
1-32     effective instructional strategies that improve student performance
1-33     in mathematics a grant to be used to:
1-34                 (1)  develop and identify research on mathematics
1-35     skills acquisition and student learning in mathematics;
1-36                 (2)  monitor the effectiveness of professional
1-37     development institutes under Section 21.455 based on performance in
1-38     mathematics by the students of teachers who have attended an
1-39     institute;
1-40                 (3)  examine the effect of professional development
1-41     institutes on the classroom performance of teachers who have
1-42     attended an institute;
1-43                 (4)  identify common practices used at high-performing
1-44     school campuses that lead to improved student performance in
1-45     mathematics; and
1-46                 (5)  develop research on cognitive development in
1-47     children concerning mathematics skills development.
1-48           Sec. 7.059.  MATHEMATICS HOMEWORK AND GRADING SERVICE. (a)
1-49     From funds appropriated for the purpose, the commissioner shall
1-50     develop and make available a service that assists teachers in
1-51     providing and grading mathematics homework assignments.  The
1-52     service may also assist teachers in providing and grading student
1-53     examinations.
1-54           (b)  In making the service described by Subsection (a)
1-55     available, the commissioner shall consider all methods available
1-56     through advanced technology, especially methods using the Internet,
1-57     to distribute mathematics homework assignments and to provide
1-58     immediate assessment of a student's work on the assignment.
1-59           (c)  Each homework assignment developed for the service:
1-60                 (1)  must be created with consideration for the
1-61     underlying mathematical skills required to be taught at the grade
1-62     level for which the assignment is designed;
1-63                 (2)  must be based on a step-by-step procedure for
1-64     solving mathematical problems provided by the assignment that may
 2-1     be adapted to individual student and instructor needs;
 2-2                 (3)  must be accompanied by a solution to each
 2-3     mathematical problem assigned; and
 2-4                 (4)  may be accompanied by other pedagogically valuable
 2-5     material appropriate for a particular student.
 2-6           SECTION 3.  Subchapter B, Chapter 21, Education Code, is
 2-7     amended by adding Section 21.0482 to read as follows:
 2-8           Sec. 21.0482.  MASTER MATHEMATICS TEACHER CERTIFICATION. (a)
 2-9     To ensure that there are teachers with special training to work
2-10     with other teachers and with students in order to improve student
2-11     mathematics performance, the board shall establish:
2-12                 (1)  a master mathematics teacher certificate to teach
2-13     mathematics at elementary school grade levels;
2-14                 (2)  a master mathematics teacher certificate to teach
2-15     mathematics at middle school grade levels; and
2-16                 (3)  a master mathematics teacher certificate to teach
2-17     mathematics at high school grade levels.
2-18           (b)  The board shall issue the appropriate master mathematics
2-19     teacher certificate to each eligible person.
2-20           (c)  To be eligible for a master mathematics teacher
2-21     certificate, a person must:
2-22                 (1)  hold a teaching certificate issued under this
2-23     subchapter;
2-24                 (2)  have at least three years of teaching experience;
2-25                 (3)  satisfactorily complete a knowledge-based course
2-26     of instruction on the science of teaching children mathematics that
2-27     includes training in mathematics instruction and professional peer
2-28     mentoring techniques that, through scientific testing, have been
2-29     proven effective;
2-30                 (4)  perform satisfactorily on the appropriate master
2-31     mathematics teacher certification examination prescribed by the
2-32     board; and
2-33                 (5)  satisfy any other requirements prescribed by the
2-34     board.
2-35           (d)  The course of instruction prescribed under Subsection
2-36     (c)(3) shall be developed by the board in consultation with
2-37     mathematics and science faculty members at institutions of higher
2-38     education.
2-39           SECTION 4.  Subchapter I, Chapter 21, Education Code, is
2-40     amended by adding Section 21.411 to read as follows:
2-41           Sec. 21.411.  MASTER MATHEMATICS TEACHER GRANT PROGRAM. (a)
2-42     The commissioner shall establish a master mathematics teacher grant
2-43     program to encourage teachers to:
2-44                 (1)  become certified as master mathematics teachers;
2-45     and
2-46                 (2)  work with other teachers and with students in
2-47     order to improve student mathematics performance.
2-48           (b)  From funds appropriated for the purpose, the
2-49     commissioner shall make grants to school districts as provided by
2-50     this section to pay stipends to selected certified master
2-51     mathematics teachers who teach at high-need campuses.
2-52           (c)  The commissioner shall annually identify each high-need
2-53     campus in a school district using criteria established by the
2-54     commissioner by rule, including performance on the mathematics
2-55     assessment instrument administered under Section 39.023.  The
2-56     commissioner shall also use the criteria to rank campuses in order
2-57     of greatest need.
2-58           (d)  A school district may apply to the commissioner for
2-59     grants for each high-need campus identified by the commissioner to
2-60     be used to pay stipends to certified master mathematics teachers in
2-61     accordance with this section.  Unless reduced under Subsection (g)
2-62     or (i), each grant is in the amount of $5,000. The commissioner
2-63     shall approve the application if the district:
2-64                 (1)  applies within the period and in the manner
2-65     required by rule adopted by the commissioner; and
2-66                 (2)  agrees to use each grant only for the purpose of
2-67     paying a year-end stipend to a master mathematics teacher:
2-68                       (A)  who holds the appropriate certificate issued
2-69     under Section 21.0482;
 3-1                       (B)  who teaches in a position prescribed by the
 3-2     district at a high-need campus identified by the commissioner;
 3-3                       (C)  whose primary duties include:
 3-4                             (i)  teaching mathematics; and
 3-5                             (ii)  serving as a mathematics teaching
 3-6     mentor to other teachers for the amount of time and in the manner
 3-7     established by the district and by rule adopted by the
 3-8     commissioner; and
 3-9                       (D)  who satisfies any other requirements
3-10     established by rule adopted by the commissioner.
3-11           (e)  Unless reduced under Subsection (g) or (i), a stipend
3-12     under Subsection (d)(2) is in the amount of $5,000.
3-13           (f)  The commissioner shall adopt rules for the distribution
3-14     of grants to school districts following the year of the initial
3-15     grant.  A district that has been approved for a grant to pay a
3-16     stipend to a certified master mathematics teacher is not required
3-17     to reapply for a grant for two consecutive school years following
3-18     the year of the initial grant if the district:
3-19                 (1)  continues to pay a stipend as provided by
3-20     Subsection (g); and
3-21                 (2)  notifies the commissioner in writing, within the
3-22     period and in the manner prescribed by the commissioner, that the
3-23     circumstances on which the grant was based have not changed.
3-24           (g)  The commissioner shall reduce payments to a school
3-25     district proportionately to the extent a teacher does not meet the
3-26     requirements under Subsection (d)(2) for the entire school year.  A
3-27     district that employs more certified master mathematics teachers
3-28     than the number of grants available under this section shall select
3-29     the certified master mathematics teachers to whom to pay stipends
3-30     based on a policy adopted by the board of trustees of the district,
3-31     except that a district shall pay a stipend for two additional
3-32     consecutive school years to a teacher the district has selected for
3-33     and paid a stipend for a school year, who remains eligible for a
3-34     stipend under Subsection (d)(2), and for whom the district receives
3-35     a grant under this section for those years.  A decision of the
3-36     district under this subsection is final and may not be appealed.
3-37     The district may not apportion among teachers a stipend paid for
3-38     with a grant the district receives under this section.  The
3-39     district may use local money to pay additional stipends in amounts
3-40     determined by the district.
3-41           (h)  A grant a school district receives under this section is
3-42     in addition to any funding the district receives under Chapter 42.
3-43     The commissioner shall distribute funds under this section with the
3-44     Foundation School Program payment to which the district is entitled
3-45     as soon as practicable after the end of the school year as
3-46     determined by the commissioner.  A district to which Chapter 41
3-47     applies is entitled to the grants paid under this section.  The
3-48     commissioner shall determine the timing of the distribution of
3-49     grants to a district that does not receive Foundation School
3-50     Program payments.
3-51           (i)  This section does not create a property right to a grant
3-52     or stipend.  A school district is entitled to a grant to carry out
3-53     the purposes of this section only to the extent the commissioner
3-54     makes the grant in accordance with this section and only to the
3-55     extent sufficient state funds are appropriated for those purposes.
3-56     If state funds are appropriated but are insufficient to fully fund
3-57     a grant, the commissioner shall reduce the grant paid to each
3-58     district and the district shall reduce the stipend the district
3-59     pays to each teacher under this section proportionately so that
3-60     each selected teacher receives the same amount of money.
3-61           (j)  A decision of the commissioner concerning the amount of
3-62     money to which a school district is entitled under this section is
3-63     final and may not be appealed.  Each district shall, in the manner
3-64     and at the time prescribed by the commissioner, provide to the
3-65     commissioner proof acceptable to the commissioner of the master
3-66     mathematics teacher certification of a teacher to whom the district
3-67     is paying a stipend under this section.
3-68           (k)  The commissioner may audit the expenditure of money
3-69     appropriated for purposes of this section.  A district's use of the
 4-1     money appropriated for purposes of this section shall be verified
 4-2     as part of the district audit under Section 44.008.
 4-3           (l)  A stipend a teacher receives under this section is not
 4-4     considered in determining whether the district is paying the
 4-5     teacher the minimum monthly salary under Section 21.402.
 4-6           (m)  The commissioner may adopt other rules as necessary to
 4-7     implement this section.
 4-8           SECTION 5.  Subchapter J, Chapter 21, Education Code, is
 4-9     amended by adding Sections 21.454 and 21.455 to read as follows:
4-10           Sec. 21.454.  MATHEMATICS TRAINING. (a)  The commissioner
4-11     shall develop training materials and other teacher training
4-12     resources for a school district to use in assisting mathematics
4-13     teachers in developing:
4-14                 (1)  expertise in the appropriate mathematics
4-15     curriculum; and
4-16                 (2)  comprehension of the instructional approaches
4-17     that, through scientific testing, have been proven effective in
4-18     improving student mathematics skills.
4-19           (b)  The commissioner shall develop materials and resources
4-20     under this section in consultation with appropriate faculty members
4-21     at institutions of higher education.
4-22           (c)  The commissioner shall make the training materials and
4-23     other teacher training resources required under Subsection (a)
4-24     available to mathematics teachers through a variety of mechanisms,
4-25     including distance learning, mentoring programs, small group
4-26     inquiries, computer-assisted training, and mechanisms based on
4-27     trainer-of-trainer models.
4-28           (d)  The commissioner shall use funds appropriated for the
4-29     purpose to administer this section.
4-30           Sec. 21.455.  PROFESSIONAL DEVELOPMENT INSTITUTES IN
4-31     MATHEMATICS. (a)  The commissioner shall develop and make available
4-32     professional development institutes for teachers who provide
4-33     instruction in mathematics to students at the fifth through eighth
4-34     grade levels.
4-35           (b)  A professional development institute developed under
4-36     this section must address:
4-37                 (1)  the underlying mathematical skills required to be
4-38     taught at the relevant grade levels; and
4-39                 (2)  mathematical instruction techniques that, through
4-40     scientific testing, have been proven effective.
4-41           (c)  The commissioner shall develop professional development
4-42     institutes under this section in consultation with mathematics and
4-43     science faculty members at institutions of higher education.
4-44           (d)  The commissioner shall adopt criteria for selection of
4-45     teachers authorized to attend a professional development institute
4-46     developed under this section.
4-47           (e)  From funds appropriated for the purpose, the
4-48     commissioner shall pay a stipend to each teacher who completes a
4-49     professional development institute developed under this section.
4-50     The commissioner shall determine the amount of the stipend paid
4-51     under this subsection.
4-52           SECTION 6.  Subchapter A, Chapter 28, Education Code, is
4-53     amended by adding Section 28.007 to read as follows:
4-54           Sec. 28.007.  MATHEMATICS DIAGNOSIS. (a)  Using funds
4-55     appropriated for the purpose, the commissioner shall develop and
4-56     make available or contract for the development and dissemination of
4-57     assessment instruments that a school district may use to diagnose
4-58     student mathematics skills.  In developing the assessment
4-59     instruments, all assessment methods available through advanced
4-60     technology, including methods using the Internet or other computer
4-61     resources to provide immediate assessment of a student's skills
4-62     shall be considered.
4-63           (b)  The results of assessment instruments developed under
4-64     Subsection (a) may not be used for purposes of appraisals and
4-65     incentives under Chapter 21 or accountability under Chapter 39.
4-66           SECTION 7.  Subchapter C, Chapter 29, Education Code, is
4-67     amended by adding Section 29.087 to read as follows:
4-68           Sec. 29.087.  AFTER-SCHOOL AND SUMMER INTENSIVE MATHEMATICS
4-69     INSTRUCTION PROGRAMS. (a)  A school district may provide an
 5-1     intensive after-school program or an intensive program during the
 5-2     period that school is recessed for the summer to provide
 5-3     mathematics instruction to:
 5-4                 (1)  students who are not performing at grade level in
 5-5     mathematics to assist those students in performing at grade level;
 5-6                 (2)  students who are not performing successfully in a
 5-7     mathematics course to assist those students in successfully
 5-8     completing the course; or
 5-9                 (3)  students other than those described by Subdivision
5-10     (1) or (2), as determined by the district.
5-11           (b)  Before providing a program under this section, the board
5-12     of trustees of a school district must adopt a policy for:
5-13                 (1)  determining student eligibility for participating
5-14     in the program that:
5-15                       (A)  prescribes the grade level or course a
5-16     student must be enrolled in to be eligible; and
5-17                       (B)  provides for considering teacher
5-18     recommendations in determining eligibility;
5-19                 (2)  ensuring that parents of or persons standing in
5-20     parental relation to eligible students are provided notice of the
5-21     program;
5-22                 (3)  ensuring that eligible students are encouraged to
5-23     attend the program;
5-24                 (4)  ensuring that the program is offered at one or
5-25     more locations in the district that are easily accessible to
5-26     eligible students; and
5-27                 (5)  measuring student progress on completion of the
5-28     program.
5-29           (c)  The commissioner by rule shall:
5-30                 (1)  prescribe a procedure that a school district must
5-31     follow to apply for and receive funding for a program under this
5-32     section;
5-33                 (2)  adopt guidelines for determining which districts
5-34     receive funding if there is not sufficient funding for each
5-35     district that applies;
5-36                 (3)  require each district providing a program to
5-37     report student performance results to the commissioner within the
5-38     period and in the manner prescribed by the rule; and
5-39                 (4)  based on district reports under Subdivision (3)
5-40     and any required analysis and verification of those reports,
5-41     disseminate to each district in this state information concerning
5-42     instructional methods that have proved successful in improving
5-43     student performance in mathematics.
5-44           (d)  A program provided under this section shall be paid for
5-45     with funds appropriated for that purpose.
5-46           SECTION 8.  Section 39.023, Education Code, is amended by
5-47     amending Subsections (e) and (i) and adding Subsections (d), (j),
5-48     and (m) to read as follows:
5-49           (d)  The commissioner may participate in multistate efforts
5-50     to develop voluntary standardized end-of-course assessment
5-51     instruments.  The commissioner by rule may require a school
5-52     district to administer an end-of-course assessment instrument
5-53     developed through the multistate efforts.  The admission, review,
5-54     and dismissal committee of a student in a special education program
5-55     under Subchapter A, Chapter 29, shall determine whether any
5-56     allowable modification is necessary in administering to the student
5-57     an end-of-course assessment instrument or whether the student
5-58     should be exempted under Section 39.027(a)(2).
5-59           (e)  Under rules adopted by the State Board of Education, the
5-60     agency shall release the questions and answer keys to each
5-61     assessment instrument administered under Subsection (a), (b), (c),
5-62     (d), or (l) after the last time the instrument is administered for
5-63     a school year.  To ensure a valid bank of questions for use each
5-64     year, the agency is not required to release a question that is
5-65     being field-tested and was not used to compute the student's score
5-66     on the instrument.  The agency shall also release, under board
5-67     rule, each question that is no longer being field-tested and that
5-68     was not used to compute a student's score.
5-69           (i)  The provisions of this section, except Subsection (d),
 6-1     are subject to modification by rules adopted under Section 39.022.
 6-2     Each assessment instrument adopted under those rules and each
 6-3     assessment instrument required under Subsection (d) must be
 6-4     reliable and valid and must meet any applicable federal
 6-5     requirements for measurement of student progress.
 6-6           (j)  The commissioner shall develop a standardized
 6-7     end-of-course assessment instrument for Algebra I.  The
 6-8     commissioner by rule may require a school district to administer an
 6-9     end-of-course assessment instrument in Algebra I.  The admission,
6-10     review, and dismissal committee of a student in a special education
6-11     program under Subchapter A, Chapter 29, shall determine whether any
6-12     allowable modification is necessary in administering to the student
6-13     an end-of-course assessment instrument or whether the student
6-14     should be exempted under Section 39.027(a)(2).
6-15           (m)  This subsection applies only to a student who is
6-16     determined to have dyslexia or a related disorder and who is an
6-17     individual with a disability under 29 U.S.C. Section 705(20) and
6-18     its subsequent amendments.  The agency shall adopt or develop
6-19     appropriate criterion-referenced assessment instruments designed to
6-20     assess the ability of and to be administered to each student to
6-21     whom this subsection applies for whom the assessment instruments
6-22     adopted under Subsection (a), even with allowable modifications,
6-23     would not provide an appropriate measure of student achievement, as
6-24     determined by the committee established by the board of trustees of
6-25     the district to determine the placement of students with dyslexia
6-26     or related disorders.  The committee shall determine whether any
6-27     allowable modification is necessary in administering to a student
6-28     an assessment instrument required under this subsection. The
6-29     assessment instruments required under this subsection shall be
6-30     administered on the same schedule as the assessment instruments
6-31     administered under Subsection (a).
6-32           SECTION 9.  Subsection (b), Section 39.051, Education Code,
6-33     as amended by Chapters 396, 397, and 1422, Acts of the 76th
6-34     Legislature, Regular Session, 1999, is reenacted and amended to
6-35     read as follows:
6-36           (b)  Performance on the indicators adopted under this section
6-37     shall be compared to state-established standards.  The degree of
6-38     change from one school year to the next in performance on each
6-39     indicator adopted under this section shall also be considered.  The
6-40     indicators must be based on information that is disaggregated with
6-41     respect to race, ethnicity, sex, and socioeconomic status and must
6-42     include:
6-43                 (1)  the results of assessment instruments required
6-44     under Sections 39.023(a), (c), and (l), aggregated by grade level
6-45     and subject area;
6-46                 (2)  dropout rates, including dropout rates and
6-47     district completion rates for grade levels 9 through 12;
6-48                 (3)  student attendance rates;
6-49                 (4)  the percentage of graduating students who attain
6-50     scores on the secondary exit-level assessment instruments required
6-51     under Subchapter B that are equivalent to a passing score on the
6-52     test instrument required under Section 51.306;
6-53                 (5)  the percentage of graduating students who meet the
6-54     course requirements established for the recommended high school
6-55     program by State Board of Education rule;
6-56                 (6)  the results of the Scholastic Assessment Test
6-57     (SAT), the American College Test, articulated postsecondary degree
6-58     programs described by Section 61.852, and certified workforce
6-59     training programs described by Chapter 311, Labor Code;
6-60                 (7)  the number of students, aggregated by grade level,
6-61     provided accelerated instruction under Section 28.0211(c), the
6-62     results of assessments administered under that section, the number
6-63     of students promoted through the grade placement committee process
6-64     under Section 28.0211, the subject of the assessment instrument on
6-65     which each student failed to perform satisfactorily, and the
6-66     performance of those students in the school year following that
6-67     promotion on the assessment instruments required under Section
6-68     39.023;
6-69                 (8)  for students who have failed to perform
 7-1     satisfactorily on an assessment instrument required under Section
 7-2     39.023(a) or (c), the numerical progress of those students on
 7-3     subsequent assessment instruments required under those sections,
 7-4     aggregated by grade level and subject area;
 7-5                 (9)  the percentage of students exempted, by exemption
 7-6     category, from the assessment program generally applicable under
 7-7     this subchapter; and
 7-8                 (10)  any other indicator the State Board of Education
 7-9     adopts.
7-10           SECTION 10.  Subsection (a), Section 39.053, Education Code,
7-11     as amended by Chapters 510 and 1417, Acts of the 76th Legislature,
7-12     Regular Session, 1999, is reenacted and amended to read as follows:
7-13           (a)  Each board of trustees shall publish an annual report
7-14     describing the educational performance of the district and of each
7-15     campus in the district that includes uniform student performance
7-16     and descriptive information as determined under rules adopted by
7-17     the commissioner.  The annual report must also include:
7-18                 (1)  campus performance objectives established under
7-19     Section 11.253 and the progress of each campus toward those
7-20     objectives, which shall be available to the public;
7-21                 (2)  the performance rating for the district as
7-22     provided under Section 39.072(a) and the performance rating of each
7-23     campus in the district as provided under Section 39.072(c); [and]
7-24                 (3)  the district's current special education
7-25     compliance status with the agency;
7-26                 (4)  [.  In addition, the annual report must include] a
7-27     statement of the number, rate, and type of violent or criminal
7-28     incidents that occurred on each district campus, to the extent
7-29     permitted under the Family Educational Rights and Privacy Act of
7-30     1974 (20 U.S.C. Section 1232g);
7-31                 (5)  [,] information concerning school violence
7-32     prevention and violence intervention policies and procedures that
7-33     the district is using to protect students;
7-34                 (6)  [, and] the findings that result from evaluations
7-35     conducted under the Safe and Drug-Free Schools and Communities Act
7-36     of 1994 (20 U.S.C. Section 7101 et seq.) and its subsequent
7-37     amendments; and
7-38                 (7)  information received under Section 51.403(e) for
7-39     each high school campus in the district, presented in a form
7-40     determined by the commissioner.
7-41           SECTION 11.  Subchapter C, Chapter 39, Education Code, is
7-42     amended by adding Section 39.055 to read as follows:
7-43           Sec. 39.055.  ANNUAL AUDIT OF DROPOUT RECORDS; REPORT.
7-44     (a)  The board of trustees of each school district shall have the
7-45     district's dropout records audited annually at district expense by
7-46     a public accountant or certified public accountant who:
7-47                 (1)  is certified or registered, as appropriate, and
7-48     licensed under Chapter 901, Occupations Code;
7-49                 (2)  has successfully completed training provided by
7-50     the agency in auditing school dropout records; and
7-51                 (3)  is not an employee of the district.
7-52           (b)  The audit of dropout records must be completed following
7-53     the end of each school year.
7-54           (c)  The audit of dropout records must meet at least the
7-55     minimum requirements and be in the format prescribed by the
7-56     commissioner, subject to review and comment by the state auditor.
7-57           (d)  The district shall submit a copy of the report of the
7-58     audit of dropout records, approved by the district's board of
7-59     trustees, to the agency.  If the board of trustees declines or
7-60     refuses to approve the report, the board shall file with the agency
7-61     a copy of the report with the board's statement giving detailed
7-62     reasons for not approving the report.  The district must submit a
7-63     copy of the report and any statement required by this subsection
7-64     not later than the 90th day after the last day permissible for
7-65     resubmission of information required under Section 42.006.
7-66           (e)  The agency shall review each report of an audit of
7-67     dropout records.  The commissioner shall notify the board of
7-68     trustees of a school district of any objection the commissioner has
7-69     to the district's report, any violation of sound accounting
 8-1     practices or of a law or rule revealed by the report, or any
 8-2     recommendation by the commissioner concerning the report.  If the
 8-3     report reflects that a penal law has been violated, the
 8-4     commissioner shall notify the county attorney, district attorney,
 8-5     or criminal district attorney, as appropriate, and the attorney
 8-6     general.  The commissioner is entitled to access to all district
 8-7     records the commissioner considers necessary or appropriate for the
 8-8     review, analysis, or approval of a report.
 8-9           SECTION 12.  (a)  Subchapter D, Chapter 39, Education Code,
8-10     is amended by adding Section 39.0721 to read as follows:
8-11           Sec. 39.0721.  VOLUNTARY GOLD PERFORMANCE RATING PROGRAM. (a)
8-12     In addition to district and campus performance ratings reported
8-13     under Section 39.072, the commissioner, in consultation with an
8-14     advisory committee appointed under this section, shall develop a
8-15     voluntary gold performance rating program based on enhanced
8-16     performance.  The agency shall administer the program.
8-17           (b)  Under the voluntary gold performance rating program, a
8-18     district or campus rated exemplary under Section 39.072 may apply
8-19     to the agency for an exemplary gold rating, a district or campus
8-20     rated recognized may apply for a recognized gold rating, and a
8-21     district or campus rated academically acceptable may apply for an
8-22     academically acceptable gold rating.
8-23           (c)  The performance standards on which a voluntary gold
8-24     performance rating is based should include:
8-25                 (1)  student proficiency on:
8-26                       (A)  assessment instruments administered under
8-27     Sections 39.023(a), (c), and (l); and
8-28                       (B)  other measures of proficiency determined by
8-29     the commissioner;
8-30                 (2)  student performance on one or more nationally
8-31     recognized norm-referenced assessment instruments;
8-32                 (3)  improvement in student performance;
8-33                 (4)  in the case of middle or junior high school
8-34     campuses, student proficiency in mathematics, including algebra;
8-35     and
8-36                 (5)  in the case of high school campuses:
8-37                       (A)  the extent to which graduating students are
8-38     academically prepared to attend institutions of higher education;
8-39                       (B)  the percentage of students who take advanced
8-40     placement tests and student performance on those tests; and
8-41                       (C)  the percentage of students who take and
8-42     successfully complete college-level course work offered through
8-43     concurrent enrollment programs provided under agreements between
8-44     high schools and institutions of higher education.
8-45           (d)  The advisory committee assisting the commissioner in
8-46     developing the voluntary gold performance rating program consists
8-47     of seven members appointed by the commissioner as follows:
8-48                 (1)  two public school teachers;
8-49                 (2)  two public school administrators; and
8-50                 (3)  three persons with experience in the area of
8-51     public school accountability.
8-52           (e)  The commissioner may adopt rules as necessary to
8-53     implement and administer this section, including rules establishing
8-54     a procedure and form a district or campus must use in applying to
8-55     the agency for a voluntary rating.
8-56           (b)  Not later than March 1, 2002, the commissioner of
8-57     education shall appoint members to the advisory committee for the
8-58     voluntary gold performance rating program as provided by Section
8-59     39.0721(d), Education Code, as added by Subsection (a) of this
8-60     section.
8-61           (c)  Not later than March 30, 2006, the commissioner of
8-62     education shall complete development of the voluntary gold
8-63     performance rating program as provided by Section 39.0721,
8-64     Education Code, as added by Subsection (a) of this section, and
8-65     shall adopt any rules necessary for implementation and
8-66     administration of Section 39.0721, Education Code.
8-67           (d)  Beginning with the 2006-2007 school year or an earlier
8-68     school year, the Texas Education Agency shall implement the
8-69     voluntary gold performance rating program under Section 39.0721,
 9-1     Education Code, as added by Subsection (a) of this section.
 9-2           SECTION 13. Section 39.131, Education Code, is amended by
 9-3     adding Subsection (a-1) to read as follows:
 9-4           (a-1)  This subsection applies regardless of whether a
 9-5     district has satisfied the accreditation criteria.  If for a period
 9-6     of one year or more a district has had a master or management team
 9-7     assigned, the commissioner may appoint a board of managers composed
 9-8     of residents of the district to exercise the powers and duties of
 9-9     the board of trustees.
9-10           SECTION 14.  Subsection (a), Section 39.182, Education Code,
9-11     is amended to read as follows:
9-12           (a)  The agency shall prepare and deliver to the governor,
9-13     the lieutenant governor, the speaker of the house of
9-14     representatives, each member of the legislature, the Legislative
9-15     Budget Board, and the clerks of the standing committees of the
9-16     senate and house of representatives with primary jurisdiction over
9-17     the public school system a comprehensive report covering the
9-18     preceding two school years and containing:
9-19                 (1)  an evaluation of the achievements of the state
9-20     educational program in relation to the statutory goals for the
9-21     public education system under Section 4.002;
9-22                 (2)  an evaluation of the status of education in the
9-23     state as reflected by the academic excellence indicators adopted
9-24     under Section 39.051;
9-25                 (3)  a summary compilation of overall student
9-26     performance on academic skills assessment instruments required by
9-27     Section 39.023, aggregated by grade level, subject area, campus,
9-28     and district, with appropriate interpretations and analysis and
9-29     disaggregated by race, ethnicity, sex, and socioeconomic status;
9-30                 (4)  an evaluation of the correlation between student
9-31     grades and student performance on academic skills assessment
9-32     instruments required by Section 39.023;
9-33                 (5)  a statement of the dropout rate of students in
9-34     grade levels 7 through 12, expressed in the aggregate and by grade
9-35     level, and a statement of the completion rates of students for
9-36     grade levels 9 through 12;
9-37                 (6)  a statement of the projected cross-sectional and
9-38     longitudinal dropout rates for grade levels 7 through 12 for the
9-39     next five years, assuming no state action is taken to reduce the
9-40     dropout rate;
9-41                 (7)  a description of a systematic plan for reducing
9-42     the projected cross-sectional and longitudinal dropout rates to
9-43     five percent or less for the 1997-1998 school year;
9-44                 (8)  a summary of the information required by Section
9-45     29.083 regarding grade level retention of students;
9-46                 (9)  a list of each school district or campus that does
9-47     not satisfy performance standards, with an explanation of the
9-48     actions taken by the commissioner to improve student performance in
9-49     the district or campus and an evaluation of the results of those
9-50     actions;
9-51                 (10)  an evaluation of the status of the curriculum
9-52     taught in public schools, with recommendations for legislative
9-53     changes necessary to improve or modify the curriculum required by
9-54     Section 28.002;
9-55                 (11)  a description of all funds received by and each
9-56     activity and expenditure of the agency;
9-57                 (12)  a summary and analysis of the compliance of
9-58     school districts with administrative cost ratios set by the
9-59     commissioner under Section 42.201, including any improvements and
9-60     cost savings achieved by school districts;
9-61                 (13)  a summary of the effect of deregulation,
9-62     including exemptions and waivers granted under Section 7.056 or
9-63     39.112;
9-64                 (14)  a statement of the total number and length of
9-65     reports that school districts and school district employees must
9-66     submit to the agency, identifying which reports are required by
9-67     federal statute or rule, state statute, or agency rule, and a
9-68     summary of the agency's efforts to reduce overall reporting
9-69     requirements;
 10-1                (15)  a list of each school district that is not in
 10-2    compliance with state special education requirements, including:
 10-3                      (A)  the period for which the district has not
 10-4    been in compliance;
 10-5                      (B)  the manner in which the agency considered
 10-6    the district's failure to comply in determining the district's
 10-7    accreditation status; and
 10-8                      (C)  an explanation of the actions taken by the
 10-9    commissioner to ensure compliance and an evaluation of the results
10-10    of those actions; and
10-11                (16)  any additional information considered important
10-12    by the commissioner or the State Board of Education.
10-13          SECTION 15.  Subsection (b), Section 822.201, Government
10-14    Code, is amended to read as follows:
10-15          (b)  "Salary and wages" as used in Subsection (a) means:
10-16                (1)  normal periodic payments of money for service the
10-17    right to which accrues on a regular basis in proportion to the
10-18    service performed;
10-19                (2)  amounts by which the member's salary is reduced
10-20    under a salary reduction agreement authorized by Chapter 610;
10-21                (3)  amounts that would otherwise qualify as salary and
10-22    wages under Subdivision (1) but are not received directly by the
10-23    member pursuant to a good faith, voluntary written salary reduction
10-24    agreement in order to finance payments to a deferred compensation
10-25    or tax sheltered annuity program specifically authorized by state
10-26    law or to finance benefit options under a cafeteria plan qualifying
10-27    under Section 125 of the Internal Revenue Code of 1986 [(26 U.S.C.
10-28    Section 125)], if:
10-29                      (A)  the program or benefit options are made
10-30    available to all employees of the employer; and
10-31                      (B)  the benefit options in the cafeteria plan
10-32    are limited to one or more options that provide deferred
10-33    compensation, group health and disability insurance, group term
10-34    life insurance, dependent care assistance programs, or group legal
10-35    services plans;
10-36                (4)  performance pay awarded to an employee by a school
10-37    district as part of a total compensation plan approved by the board
10-38    of trustees of the district and meeting the requirements of
10-39    Subsection (e); [and]
10-40                (5)  the benefit replacement pay a person earns under
10-41    Subchapter H, Chapter 659, as added by Chapter 417, Acts of the
10-42    74th Legislature, 1995, except as provided by Subsection (c); and
10-43                (6)  stipends paid to teachers in accordance with
10-44    Section 21.410 or 21.411, Education Code.
10-45          SECTION 16.  (a)  The State Board for Educator Certification
10-46    shall propose rules establishing requirements and prescribing an
10-47    examination for master mathematics teacher certification as
10-48    required by Section 21.0482, Education Code, as added by this Act,
10-49    not later than January 1, 2003.
10-50          (b)  Beginning with the 2003-2004 school year:
10-51                (1)  the commissioner of education shall pay grants
10-52    under Section 21.411, Education Code, as added by this Act; and
10-53                (2)  school districts receiving grants shall pay
10-54    stipends to certified master mathematics teachers under Section
10-55    21.411, Education Code, as added by this Act.
10-56          SECTION 17. Before the 2005-2006 school year, the Texas
10-57    Education Agency shall field-test assessment instruments required
10-58    to be adopted or developed under Section 39.023(m), Education Code,
10-59    as added by this Act.  Not later than the 2005-2006 school year,
10-60    the Texas Education Agency shall adopt or develop and the State
10-61    Board of Education shall administer those assessment instruments.
10-62          SECTION 18.  Each school district shall have its dropout
10-63    records audited as required by Section 39.055, Education Code, as
10-64    added by this Act, beginning with dropout records for the 2001-2002
10-65    school year.
10-66          SECTION 19.  Not later than February 1, 2002, the Texas
10-67    Education Agency shall:
10-68                (1)  develop a training program for public accountants
10-69    and certified public accountants in auditing public school dropout
 11-1    records as provided under Section 39.055, Education Code, as added
 11-2    by this Act; and
 11-3                (2)  make the training program readily available to
 11-4    public accountants and certified public accountants throughout this
 11-5    state.
 11-6          SECTION 20.  (a)  Except as provided by Subsection (b) of
 11-7    this section, this Act takes effect immediately if it receives a
 11-8    vote of two-thirds of all the members elected to each house, as
 11-9    provided by Section 39, Article III, Texas Constitution.  If this
11-10    Act does not receive the vote necessary for immediate effect, this
11-11    Act takes effect September 1, 2001.
11-12          (b)  Sections 9, 10, and 14 of this Act take effect September
11-13    1, 2001.
11-14                                 * * * * *