By Garcia                                             H.B. No. 1783
         77R2690 BDH-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to dropout and completion rates in public schools.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Section 39.051(b), Education Code, as amended by
 1-5     Chapters 396, 397, and 1422, Acts of the 76th Legislature, Regular
 1-6     Session, 1999, is reenacted and amended to read as follows:
 1-7           (b)  Performance on the indicators adopted under this section
 1-8     shall be compared to state-established standards.  The degree of
 1-9     change from one school year to the next in performance on each
1-10     indicator adopted under this section shall also be considered.  The
1-11     indicators must be based on information that is disaggregated with
1-12     respect to race, ethnicity, sex, and socioeconomic status and must
1-13     include:
1-14                 (1)  the results of assessment instruments required
1-15     under Sections 39.023(a), (c), and (l), aggregated by grade level
1-16     and subject area;
1-17                 (2)  dropout rates, including dropout rates and
1-18     district completion rates for grade levels 9 through 12;
1-19                 (3)  student attendance rates;
1-20                 (4)  the percentage of graduating students who attain
1-21     scores on the secondary exit-level assessment instruments required
1-22     under Subchapter B that are equivalent to a passing score on the
1-23     test instrument required under Section 51.306;
1-24                 (5)  the percentage of graduating students who meet the
 2-1     course requirements established for the recommended high school
 2-2     program by State Board of Education rule;
 2-3                 (6)  the results of the Scholastic Assessment Test
 2-4     (SAT), the American College Test, articulated postsecondary degree
 2-5     programs described by Section 61.852, and certified workforce
 2-6     training programs described by Chapter 311, Labor Code;
 2-7                 (7)  the number of students, aggregated by grade level,
 2-8     provided accelerated instruction under Section 28.0211(c), the
 2-9     results of assessments administered under that section, the number
2-10     of students promoted through the grade placement committee process
2-11     under Section 28.0211, the subject of the assessment instrument on
2-12     which each student failed to perform satisfactorily, and the
2-13     performance of those students in the school year following that
2-14     promotion on the assessment instruments required under Section
2-15     39.023;
2-16                 (8)  for students who have failed to perform
2-17     satisfactorily on an assessment instrument required under Section
2-18     39.023(a) or (c), the numerical progress of those students on
2-19     subsequent assessment instruments required under those sections,
2-20     aggregated by grade level and subject area;
2-21                 (9)  the percentage of students exempted, by exemption
2-22     category, from the assessment program generally applicable under
2-23     this subchapter; and
2-24                 (10)  any other indicator the State Board of Education
2-25     adopts.
2-26           SECTION 2. Subchapter C, Chapter 39, Education Code, is
2-27     amended by adding Section 39.055 to read as follows:
 3-1           Sec. 39.055.  ANNUAL AUDIT OF DROPOUT RECORDS; REPORT. (a)
 3-2     The board of trustees of each school district shall have the
 3-3     district's dropout records audited annually at district expense by
 3-4     a public accountant or certified public accountant who:
 3-5                 (1)  is certified or registered, as appropriate, and
 3-6     licensed under Chapter 901, Occupations Code;
 3-7                 (2)  has successfully completed training provided by
 3-8     the agency in auditing school dropout records; and
 3-9                 (3)  is not an employee of the district.
3-10           (b)  The audit of dropout records must be completed following
3-11     the end of each school year.
3-12           (c)  The audit of dropout records must meet at least the
3-13     minimum requirements and be in the format prescribed by the
3-14     commissioner, subject to review and comment by the state auditor.
3-15           (d)  A copy of the report of the audit of dropout records,
3-16     approved by the district's board of trustees, shall be filed by the
3-17     district with the agency not later than the 120th day after the end
3-18     of the school year for which the audit was made.  If the board of
3-19     trustees declines or refuses to approve the report, the board shall
3-20     file with the agency a copy of the report with the board's
3-21     statement giving detailed reasons for not approving the report.
3-22           (e)  The agency shall review reports of audits of dropout
3-23     records.  The commissioner shall notify the board of trustees of a
3-24     school district of any objections the commissioner has to the
3-25     report, violations of sound accounting practices or law and rule
3-26     requirements revealed by the report, or commissioner
3-27     recommendations concerning the report.  If the report reflects that
 4-1     penal laws have been violated, the commissioner shall notify the
 4-2     county attorney, district attorney, or criminal district attorney,
 4-3     as appropriate, and the attorney general.  The commissioner is
 4-4     entitled to access to all district records the commissioner
 4-5     considers necessary and appropriate for the review, analysis, and
 4-6     approval of the reports.
 4-7           SECTION 3. Section 39.182(a), Education Code, is amended to
 4-8     read as follows:
 4-9           (a)  The agency shall prepare and deliver to the governor,
4-10     the lieutenant governor, the speaker of the house of
4-11     representatives, each member of the legislature, the Legislative
4-12     Budget Board, and the clerks of the standing committees of the
4-13     senate and house of representatives with primary jurisdiction over
4-14     the public school system a comprehensive report covering the
4-15     preceding two school years and containing:
4-16                 (1)  an evaluation of the achievements of the state
4-17     educational program in relation to the statutory goals for the
4-18     public education system under Section 4.002;
4-19                 (2)  an evaluation of the status of education in the
4-20     state as reflected by the academic excellence indicators adopted
4-21     under Section 39.051;
4-22                 (3)  a summary compilation of overall student
4-23     performance on academic skills assessment instruments required by
4-24     Section 39.023, aggregated by grade level, subject area, campus,
4-25     and district, with appropriate interpretations and analysis and
4-26     disaggregated by race, ethnicity, sex, and socioeconomic status;
4-27                 (4)  an evaluation of the correlation between student
 5-1     grades and student performance on academic skills assessment
 5-2     instruments required by Section 39.023;
 5-3                 (5)  a statement of the dropout rate of students in
 5-4     grade levels 7 through 12, expressed in the aggregate and by grade
 5-5     level, and a statement of the completion rates of students for
 5-6     grade levels 9 through 12;
 5-7                 (6)  [a statement of the projected cross-sectional and
 5-8     longitudinal dropout rates for grade levels 7 through 12 for the
 5-9     next five years, assuming no state action is taken to reduce the
5-10     dropout rate;]
5-11                 [(7)  a description of a systematic plan for reducing
5-12     the projected cross-sectional and longitudinal dropout rates to
5-13     five percent or less for the 1997-1998 school year;]
5-14                 [(8)]  a summary of the information required by Section
5-15     29.083 regarding grade level retention of students;
5-16                 (7) [(9)]  a list of each school district or campus
5-17     that does not satisfy performance standards, with an explanation of
5-18     the actions taken by the commissioner to improve student
5-19     performance in the district or campus and an evaluation of the
5-20     results of those actions;
5-21                 (8) [(10)]  an evaluation of the status of the
5-22     curriculum taught in public schools, with recommendations for
5-23     legislative changes necessary to improve or modify the curriculum
5-24     required by Section 28.002;
5-25                 (9) [(11)]  a description of all funds received by and
5-26     each activity and expenditure of the agency;
5-27                 (10) [(12)]  a summary and analysis of the compliance
 6-1     of school districts with administrative cost ratios set by the
 6-2     commissioner under Section 42.201, including any improvements and
 6-3     cost savings achieved by school districts;
 6-4                 (11) [(13)]  a summary of the effect of deregulation,
 6-5     including exemptions and waivers granted under Section 7.056 or
 6-6     39.112;
 6-7                 (12) [(14)]  a statement of the total number and length
 6-8     of reports that school districts and school district employees must
 6-9     submit to the agency, identifying which reports are required by
6-10     federal statute or rule, state statute, or agency rule, and a
6-11     summary of the agency's efforts to reduce overall reporting
6-12     requirements;
6-13                 (13) [(15)]  a list of each school district that is not
6-14     in compliance with state special education requirements, including:
6-15                       (A)  the period for which the district has not
6-16     been in compliance;
6-17                       (B)  the manner in which the agency considered
6-18     the district's failure to comply in determining the district's
6-19     accreditation status; and
6-20                       (C)  an explanation of the actions taken by the
6-21     commissioner to ensure compliance and an evaluation of the results
6-22     of those actions; and
6-23                 (14) [(16)]  any additional information considered
6-24     important by the commissioner or the State Board of Education.
6-25           SECTION 4. Section 39.185, Education Code, is amended to read
6-26     as follows:
6-27           Sec. 39.185.  INTERIM REPORT. Not later than December 1 of
 7-1     each odd-numbered year, the agency shall prepare and deliver to the
 7-2     governor, the lieutenant governor, the speaker of the house of
 7-3     representatives, each member of the legislature, the Legislative
 7-4     Budget Board, and the clerks of the standing committees of the
 7-5     senate and house of representatives with primary jurisdiction over
 7-6     the public school system an interim report containing, for the
 7-7     previous school year, the information required by:
 7-8                 (1)  Sections 39.182(a)(2), (3), (5), [(6),] (7), (9),
 7-9     and (11)[, and (13)]; and
7-10                 (2)  Section 39.183(2).
7-11           SECTION 5. Each school district shall have its dropout
7-12     records audited as required by Section 39.055, Education Code, as
7-13     added by this Act, beginning with dropout records for the 2001-2002
7-14     school year.
7-15           SECTION 6.  Not later than February 1, 2002, the Texas
7-16     Education Agency shall:
7-17                 (1)  develop a training program for public accountants
7-18     and certified public accountants in auditing public school dropout
7-19     records under Section 39.055, Education Code, as added by this Act;
7-20     and
7-21                 (2)  make the training program readily available to
7-22     public accountants and certified public accountants throughout this
7-23     state.
7-24           SECTION 7. This Act takes effect September 1, 2001.