By:  Bivins                                            S.B. No. 646
                                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.  Subsection (b), Section 39.051, Education Code,
 1-5     as amended by Chapters 396, 397, and 1422, Acts of the 76th
 1-6     Legislature, Regular Session, 1999, is reenacted and amended to
 1-7     read as follows:
 1-8           (b)  Performance on the indicators adopted under this section
 1-9     shall be compared to state-established standards.  The degree of
1-10     change from one school year to the next in performance on each
1-11     indicator adopted under this section shall also be considered.  The
1-12     indicators must be based on information that is disaggregated with
1-13     respect to race, ethnicity, sex, and socioeconomic status and must
1-14     include:
1-15                 (1)  the results of assessment instruments required
1-16     under Sections 39.023(a), (c), and (l), aggregated by grade level
1-17     and subject area;
1-18                 (2)  dropout rates, including dropout rates and
1-19     district completion rates for grade levels 9 through 12;
1-20                 (3)  student attendance rates;
1-21                 (4)  the percentage of graduating students who attain
1-22     scores on the secondary exit-level assessment instruments required
1-23     under Subchapter B that are equivalent to a passing score on the
1-24     test instrument required under Section 51.306;
1-25                 (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
 3-1     amended by adding Section 39.055 to read as follows:
 3-2           Sec. 39.055.  ANNUAL AUDIT OF DROPOUT RECORDS; REPORT.
 3-3     (a)  The board of trustees of each school district shall have the
 3-4     district's dropout records audited annually at district expense by
 3-5     a public accountant or certified public accountant who:
 3-6                 (1)  is certified or registered, as appropriate, and
 3-7     licensed under Chapter 901, Occupations Code;
 3-8                 (2)  has successfully completed training provided by
 3-9     the agency in auditing school dropout records; and
3-10                 (3)  is not an employee of the district.
3-11           (b)  The audit of dropout records must be completed following
3-12     the end of each school year.
3-13           (c)  The audit of dropout records must meet at least the
3-14     minimum requirements and be in the format prescribed by the
3-15     commissioner, subject to review and comment by the state auditor.
3-16           (d)  A copy of the report of the audit of dropout records,
3-17     approved by the district's board of trustees, shall be filed by the
3-18     district with the agency not later than the 90th day after the last
3-19     day permissible for resubmission of information required under
3-20     Section 42.006.  If the board of trustees declines or refuses to
3-21     approve the report, the board shall file with the agency a copy of
3-22     the report with the board's statement giving detailed reasons for
3-23     not approving the report.
3-24           (e)  The agency shall review reports of audits of dropout
3-25     records.  The commissioner shall notify the board of trustees of a
3-26     school district of any objections the commissioner has to the
 4-1     report, violations of sound accounting practices or law and rule
 4-2     requirements revealed by the report, or commissioner
 4-3     recommendations concerning the report.  If the report reflects that
 4-4     penal laws have been violated, the commissioner shall notify the
 4-5     county attorney, district attorney, or criminal district attorney,
 4-6     as appropriate, and the attorney general.  The commissioner is
 4-7     entitled to access to all district records the commissioner
 4-8     considers necessary and appropriate for the review, analysis, and
 4-9     approval of the reports.
4-10           SECTION 3.  Subsection (a), Section 39.182, Education Code,
4-11     is amended to read as follows:
4-12           (a)  The agency shall prepare and deliver to the governor,
4-13     the lieutenant governor, the speaker of the house of
4-14     representatives, each member of the legislature, the Legislative
4-15     Budget Board, and the clerks of the standing committees of the
4-16     senate and house of representatives with primary jurisdiction over
4-17     the public school system a comprehensive report covering the
4-18     preceding two school years and containing:
4-19                 (1)  an evaluation of the achievements of the state
4-20     educational program in relation to the statutory goals for the
4-21     public education system under Section 4.002;
4-22                 (2)  an evaluation of the status of education in the
4-23     state as reflected by the academic excellence indicators adopted
4-24     under Section 39.051;
4-25                 (3)  a summary compilation of overall student
4-26     performance on academic skills assessment instruments required by
 5-1     Section 39.023, aggregated by grade level, subject area, campus,
 5-2     and district, with appropriate interpretations and analysis and
 5-3     disaggregated by race, ethnicity, sex, and socioeconomic status;
 5-4                 (4)  an evaluation of the correlation between student
 5-5     grades and student performance on academic skills assessment
 5-6     instruments required by Section 39.023;
 5-7                 (5)  a statement of the dropout rate of students in
 5-8     grade levels 7 through 12, expressed in the aggregate and by grade
 5-9     level, and a statement of the completion rates of students for
5-10     grade levels 9 through 12;
5-11                 (6)  a statement of the projected cross-sectional and
5-12     longitudinal dropout rates for grade levels 7 through 12 for the
5-13     next five years, assuming no state action is taken to reduce the
5-14     dropout rate;
5-15                 (7)  a description of a systematic plan for reducing
5-16     the projected cross-sectional and longitudinal dropout rates to
5-17     five percent or less for the 1997-1998 school year;
5-18                 (8)  a summary of the information required by Section
5-19     29.083 regarding grade level retention of students;
5-20                 (9)  a list of each school district or campus that does
5-21     not satisfy performance standards, with an explanation of the
5-22     actions taken by the commissioner to improve student performance in
5-23     the district or campus and an evaluation of the results of those
5-24     actions;
5-25                 (10)  an evaluation of the status of the curriculum
5-26     taught in public schools, with recommendations for legislative
 6-1     changes necessary to improve or modify the curriculum required by
 6-2     Section 28.002;
 6-3                 (11)  a description of all funds received by and each
 6-4     activity and expenditure of the agency;
 6-5                 (12)  a summary and analysis of the compliance of
 6-6     school districts with administrative cost ratios set by the
 6-7     commissioner under Section 42.201, including any improvements and
 6-8     cost savings achieved by school districts;
 6-9                 (13)  a summary of the effect of deregulation,
6-10     including exemptions and waivers granted under Section 7.056 or
6-11     39.112;
6-12                 (14)  a statement of the total number and length of
6-13     reports that school districts and school district employees must
6-14     submit to the agency, identifying which reports are required by
6-15     federal statute or rule, state statute, or agency rule, and a
6-16     summary of the agency's efforts to reduce overall reporting
6-17     requirements;
6-18                 (15)  a list of each school district that is not in
6-19     compliance with state special education requirements, including:
6-20                       (A)  the period for which the district has not
6-21     been in compliance;
6-22                       (B)  the manner in which the agency considered
6-23     the district's failure to comply in determining the district's
6-24     accreditation status; and
6-25                       (C)  an explanation of the actions taken by the
6-26     commissioner to ensure compliance and an evaluation of the results
 7-1     of those actions; and
 7-2                 (16)  any additional information considered important
 7-3     by the commissioner or the State Board of Education.
 7-4           SECTION 4.  Each school district shall have its dropout
 7-5     records audited as required by Section 39.055, Education Code, as
 7-6     added by this Act, beginning with dropout records for the 2001-2002
 7-7     school year.
 7-8           SECTION 5.  Not later than February 1, 2002, the Texas
 7-9     Education Agency shall:
7-10                 (1)  develop a training program for public accountants
7-11     and certified public accountants in auditing public school dropout
7-12     records under Section 39.055, Education Code, as added by this Act;
7-13     and
7-14                 (2)  make the training program readily available to
7-15     public accountants and certified public accountants throughout this
7-16     state.
7-17           SECTION 6.  This Act takes effect September 1, 2001.