By West                                                S.B. No. 702
         77R4406 KKA-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to compensatory, intensive, and accelerated education in
 1-3     public schools.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 7.111(a), Education Code, as amended by
 1-6     Chapters 76 and 1282, Acts of the 76th Legislature, Regular
 1-7     Session, 1999, is reenacted and amended to read as follows:
 1-8           (a)  The board shall provide for the administration of high
 1-9     school equivalency examinations.  A person who does not have a high
1-10     school diploma may take the examination in accordance with rules
1-11     adopted by the board if the person [is]:
1-12                 (1)  is over 17 years of age;
1-13                 (2)  is 16 years of age or older and:
1-14                       (A)  the person is enrolled in a Job Corps
1-15     training program under [the Job Training Partnership Act (]29
1-16     U.S.C. Section 2881 [1501] et seq.[)], and its subsequent
1-17     amendments; [or]
1-18                       (B)  a public agency providing supervision of the
1-19     person or having custody of the person under a court order
1-20     recommends that the person take the examination; or
1-21                       (C)  the person has completed a high school
1-22     equivalency examination preparation program under Section 29.087;
1-23     or
1-24                 (3)  is required to take the examination under a
 2-1     justice or municipal court order issued under Section
 2-2     54.021(d)(1)(B), Family Code.
 2-3           SECTION 2. Section 25.086(a), Education Code, is amended to
 2-4     read as follows:
 2-5           (a)  A child is exempt from the requirements of compulsory
 2-6     school attendance if the child:
 2-7                 (1)  attends a private or parochial school that
 2-8     includes in its course a study of good citizenship;
 2-9                 (2)  is eligible to participate in a school district's
2-10     special education program under Section 29.003 and cannot be
2-11     appropriately served by the resident district;
2-12                 (3)  has a physical or mental condition of a temporary
2-13     and remediable nature that makes the child's attendance infeasible
2-14     and holds a certificate from a qualified physician specifying the
2-15     temporary condition, indicating the treatment prescribed to remedy
2-16     the temporary condition, and covering the anticipated period of the
2-17     child's absence from school for the purpose of receiving and
2-18     recuperating from that remedial treatment;
2-19                 (4)  is expelled in accordance with the requirements of
2-20     law in a school district that does not participate in a mandatory
2-21     juvenile justice alternative education program under Section
2-22     37.011;
2-23                 (5)  is at least 17 years of age and:
2-24                       (A)  is attending a course of instruction to
2-25     prepare for the high school equivalency examination, and:
2-26                             (i)  has the permission of the child's
2-27     parent or guardian to attend the course;
 3-1                             (ii)  is required by court order to attend
 3-2     the course;
 3-3                             (iii)  has established a residence separate
 3-4     and apart from the child's parent, guardian, or other person having
 3-5     lawful control of the child; or
 3-6                             (iv)  is homeless as defined by 42 U.S.C.
 3-7     Section 11302 and its subsequent amendments; or
 3-8                       (B)  has received a high school diploma or high
 3-9     school equivalency certificate;
3-10                 (6)  is at least 16 years of age and:
3-11                       (A)  is attending a course of instruction to
3-12     prepare for the high school equivalency examination, if:
3-13                             (i) [(A)]  the child is recommended to take
3-14     the course of instruction by a public agency that has supervision
3-15     or custody of the child under a court order; or
3-16                             (ii) [(B)]  the child is enrolled in a Job
3-17     Corps training program under [the Job Training Partnership Act (]29
3-18     U.S.C. Section 2881 [1501] et seq.[)], and its subsequent
3-19     amendments; or
3-20                       (B)  has earned a high school equivalency
3-21     certificate after completing a program under Section 29.087;
3-22                 (7)  is enrolled in the Texas Academy of Mathematics
3-23     and Science;
3-24                 (8)  is enrolled in the Texas Academy of Leadership in
3-25     the Humanities; or
3-26                 (9)  is specifically exempted under another law.
3-27           SECTION 3.  The heading to Section 29.081, Education Code, is
 4-1     amended to read as follows:
 4-2           Sec. 29.081.  COMPENSATORY, INTENSIVE, AND ACCELERATED
 4-3     INSTRUCTION.
 4-4           SECTION 4.  Section 29.081, Education Code, is amended by
 4-5     amending Subsections (a), (c), and (d) and adding Subsections (g)
 4-6     and (h) to read as follows:
 4-7           (a)  Each school district shall use the student performance
 4-8     data resulting from the basic skills assessment instruments and
 4-9     achievement tests administered under Subchapter B, Chapter 39, to
4-10     design and implement appropriate compensatory, intensive, or
4-11     accelerated instructional services for students in the district's
4-12     schools that enable the students to be performing at grade level at
4-13     the conclusion of the next regular school term or, if appropriate,
4-14     to be prepared to obtain a high school equivalency certificate.
4-15           (c)  Each school district shall evaluate and document the
4-16     effectiveness of the accelerated instruction in reducing any
4-17     disparity in performance on assessment instruments administered
4-18     under Subchapter B, Chapter 39, or disparity in the rates of high
4-19     school completion or receipt of a high school equivalency
4-20     certificate between students at risk of dropping out of school and
4-21     all other district students [the dropout rate and in increasing
4-22     achievement in the categories of students listed under Subsection
4-23     (d)].
4-24           (d)  For purposes of this section, "student at risk of
4-25     dropping out of school" includes[:]
4-26                 [(1)]  each student, other than a student eligible to
4-27     participate in a district's special education program under Section
 5-1     29.003, [in grade levels 7 through 12] who is under 21 years of age
 5-2     and who:
 5-3                 (1) [(A)]  was not advanced from one grade level to the
 5-4     next for one [two] or more school years;
 5-5                 (2)  if the student is in grade 7, 8, 9, 10, 11, or 12,
 5-6     [(B)  has mathematics or reading skills that are two or more years
 5-7     below grade level;]
 5-8                       [(C)]  did not maintain an average equivalent to
 5-9     70 on a scale of 100 in two or more subjects in the foundation
5-10     curriculum [courses] during a semester in the preceding or current
5-11     school year, or is not maintaining such an average in two or more
5-12     subjects in the foundation curriculum [courses] in the current
5-13     semester[, and is not expected to graduate within four years of the
5-14     date the student begins ninth grade];
5-15                 (3) [(D)]  did not perform satisfactorily on an
5-16     assessment instrument administered to the student under Subchapter
5-17     B, Chapter 39, and who has not in the previous or current school
5-18     year subsequently performed on that instrument or another
5-19     appropriate instrument at a level equal to at least 105 percent of
5-20     the level of satisfactory performance on that instrument; [or]
5-21                 (4)  did not perform satisfactorily on a readiness test
5-22     or assessment instrument administered during the current school
5-23     year, if the student is in prekindergarten, kindergarten, or grade
5-24     1, 2, or 3;
5-25                 (5) [(E)]  is pregnant or is a parent;
5-26                 (6)  has been placed in an alternative education
5-27     program in accordance with Section 37.006 during the preceding or
 6-1     current school year;
 6-2                 (7)  has been expelled in accordance with Section
 6-3     37.007  during the preceding or current school year;
 6-4                 (8)  is currently on parole, probation, deferred
 6-5     prosecution, or other conditional release;
 6-6                 (9)  was previously reported through the Public
 6-7     Education Information Management System (PEIMS) to have dropped out
 6-8     of school;
 6-9                 (10)  failed during the preceding or current school
6-10     year to meet the minimum attendance required under Section 25.092
6-11     for one or more classes, unless the failure is excused under
6-12     Section 25.086 or 25.087;
6-13                 (11) [(2)  each student in prekindergarten through
6-14     grade 6 who:]
6-15                       [(A)  did not perform satisfactorily on a
6-16     readiness test or assessment instrument administered at the
6-17     beginning of the school year;]
6-18                       [(B)  did not perform satisfactorily on an
6-19     assessment instrument administered under Subchapter B, Chapter 39;]
6-20                       [(C)]  is a student of limited English
6-21     proficiency, as defined by Section 29.052;
6-22                 (12)  is in the custody or care of the Department of
6-23     Protective and Regulatory Services or has, during the current
6-24     school year, been referred to the department by a school official,
6-25     officer of the juvenile court, or law enforcement official;
6-26                 (13)  is homeless, as defined by 42 U.S.C. Section
6-27     11302 and its subsequent amendments; or
 7-1                 (14)  resided in the preceding school year or [(D)  is
 7-2     sexually, physically, or psychologically abused; or]
 7-3                       [(E)  engages in conduct described by Section
 7-4     51.03(a), Family Code; and]
 7-5                 [(3)  each student who is not disabled and who] resides
 7-6     in the current school year in a residential placement facility in
 7-7     the [a] district [in which the student's parent or legal guardian
 7-8     does not reside], including a detention facility, substance abuse
 7-9     treatment facility, emergency shelter, psychiatric hospital,
7-10     halfway house, or foster family group home.
7-11           (g)  A student eligible to participate in a district's
7-12     special education program under Section 29.003 may receive
7-13     instructional services under this section if receipt of those
7-14     services is determined to be appropriate by the student's
7-15     admission, review, and dismissal committee.
7-16           (h)  In addition to students described by Subsection (d), a
7-17     student who satisfies local eligibility criteria adopted by the
7-18     board of trustees of a school district may receive instructional
7-19     services under this section.  The number of students receiving
7-20     services under this subsection during a school year may not exceed
7-21     10 percent of the number of students described by Subsection (d)
7-22     who received services from the district during the preceding school
7-23     year.  For purposes of Chapter 39, students receiving services
7-24     under this subsection may not be included in the group of students
7-25     who are identified as being at risk of dropping out of school.
7-26           SECTION 5.  Subchapter C, Chapter 29, Education Code, is
7-27     amended by adding Section 29.087 to read as follows:
 8-1           Sec. 29.087.  SCHOOL DISTRICT HIGH SCHOOL EQUIVALENCY
 8-2     EXAMINATION PROGRAMS.  (a)  The agency shall develop a program for
 8-3     school districts to prepare eligible students who are at risk of
 8-4     dropping out of school to take a high school equivalency
 8-5     examination.
 8-6           (b)  A district that participates in the program shall offer
 8-7     preparatory classes for the high school equivalency examination to
 8-8     each eligible district student.
 8-9           (c)  A student is eligible to participate in the program if:
8-10                 (1)  the student is 16 years of age or older at the
8-11     beginning of the school year or semester;
8-12                 (2)  the student and the student's parent or guardian
8-13     agree to the student's participation;
8-14                 (3)  there is a reasonable expectation that the student
8-15     will not graduate on schedule and passing a high school equivalency
8-16     examination would be in the best interest of the student;
8-17                 (4)  there is a reasonable expectation that on
8-18     completion of the program the student will be able to perform
8-19     satisfactorily on the high school equivalency examination; and
8-20                 (5)  any other conditions specified by the agency are
8-21     satisfied.
8-22           (d)  A district shall inform each student who has completed
8-23     the program of the time and place at which the student may take the
8-24     high school equivalency examination.
8-25           (e)  The agency shall adopt rules to ensure that students are
8-26     not encouraged to participate in the program solely as a means to
8-27     divert students with discipline problems or poor academic
 9-1     performance into the program as an alternative to regular high
 9-2     school graduation.
 9-3           (f)  The agency shall request permission from the General
 9-4     Educational Development Testing Service to administer the service's
 9-5     high school equivalency examination to students enrolled in high
 9-6     school who participate in the program.
 9-7           (g)  The agency shall include in the comprehensive annual
 9-8     report required under Section 39.182 the number of students
 9-9     enrolled in the program and the number of students in the program
9-10     who performed satisfactorily on the high school equivalency
9-11     examination.
9-12           SECTION 6. Section 39.027(e), Education Code, is amended to
9-13     read as follows:
9-14           (e)  The commissioner shall develop an assessment system that
9-15     shall be used for evaluating the academic progress, including
9-16     reading proficiency in English, of all students of limited English
9-17     proficiency, as defined by Section 29.052.  The performance under
9-18     the assessment system developed under this subsection of students
9-19     to whom Subsection (a)(3) applies shall be included in the academic
9-20     excellence indicator system under Section 39.051, the performance
9-21     report under Section 39.053, and the comprehensive annual
9-22     [biennial] report under Section 39.182.
9-23           SECTION 7.  Section 39.051(b), Education Code, as amended by
9-24     Chapters 396, 397, and 1422, Acts of the 76th Legislature, Regular
9-25     Session, 1999, is reenacted and amended to read as follows:
9-26           (b)  Performance on the indicators adopted under this section
9-27     shall be compared to state-established standards.  The degree of
 10-1    change from one school year to the next in performance on each
 10-2    indicator adopted under this section shall also be considered.  The
 10-3    indicators must be based on information that is disaggregated by
 10-4    [with respect to] race, ethnicity, gender [sex], [and]
 10-5    socioeconomic status, and at-risk status and must include:
 10-6                (1)  the results of assessment instruments required
 10-7    under Sections 39.023(a), (c), and (l), aggregated by grade level
 10-8    and subject area;
 10-9                (2)  dropout and completion rates;
10-10                (3)  student attendance rates;
10-11                (4)  the percentage of graduating students who attain
10-12    scores on the secondary exit-level assessment instruments required
10-13    under Subchapter B that are equivalent to a passing score on the
10-14    test instrument required under Section 51.306;
10-15                (5)  the percentage of graduating students who meet the
10-16    course requirements established for the recommended high school
10-17    program by State Board of Education rule;
10-18                (6)  the results of the Scholastic Assessment Test
10-19    (SAT), the American College Test (ACT), articulated postsecondary
10-20    degree programs described by Section 61.852, and certified
10-21    workforce training programs described by Chapter 311, Labor Code;
10-22                (7)  the number of students, aggregated by grade level,
10-23    provided accelerated instruction under Section 28.0211(c), the
10-24    results of assessments administered under that section, the number
10-25    of students promoted through the grade placement committee process
10-26    under Section 28.0211, the subject of the assessment instrument on
10-27    which each student failed to perform satisfactorily, and the
 11-1    performance of those students in the school year following that
 11-2    promotion on the assessment instruments required under Section
 11-3    39.023;
 11-4                (8)  for students who have failed to perform
 11-5    satisfactorily on an assessment instrument required under Section
 11-6    39.023(a) or (c), the numerical progress of those students on
 11-7    subsequent assessment instruments required under those sections,
 11-8    aggregated by grade level and subject area;
 11-9                (9)  the percentage of students exempted, by exemption
11-10    category, from the assessment program generally applicable under
11-11    this subchapter; and
11-12                (10)  any other indicator the State Board of Education
11-13    adopts.
11-14          SECTION 8.  Section 39.051, Education Code, is amended by
11-15    adding Subsection (g) to read as follows:
11-16          (g)  The commissioner by rule shall:
11-17                (1)  adopt accountability measures to be used in
11-18    assessing the performance of students at risk of dropping out of
11-19    school, as defined by Section 29.081;
11-20                (2)  specify the level of student performance on the
11-21    accountability measures that is necessary for a campus or district
11-22    to obtain a performance rating of exemplary, recognized, or
11-23    academically acceptable; and
11-24                (3)  determine appropriate methods of integrating
11-25    student performance on the accountability measures into the
11-26    statewide public school accountability program established under
11-27    this chapter.
 12-1          SECTION 9. Section 39.053, Education Code, as amended by
 12-2    Chapters 510 and 1417, Acts of the 76th Legislature, Regular
 12-3    Session, 1999, is reenacted and amended to read as follows:
 12-4          Sec. 39.053.  PERFORMANCE REPORT. (a)  Each board of trustees
 12-5    shall publish an annual report describing the educational
 12-6    performance of the district and of each campus in the district that
 12-7    includes uniform student performance and descriptive information as
 12-8    determined under rules adopted by the commissioner.  The annual
 12-9    report must also include:
12-10                (1)  campus performance objectives established under
12-11    Section 11.253 and the progress of each campus toward those
12-12    objectives, which shall be available to the public;
12-13                (2)  the performance rating for the district as
12-14    provided under Section 39.072(a) and the performance rating of each
12-15    campus in the district as provided under Section 39.072(c); [and]
12-16                (3)  the district's current special education
12-17    compliance status with the agency;
12-18                (4)  [.  In addition, the annual report must include] a
12-19    statement of the number, rate, and type of violent or criminal
12-20    incidents that occurred on each district campus, to the extent
12-21    permitted under the Family Educational Rights and Privacy Act of
12-22    1974 (20 U.S.C. Section 1232g);
12-23                (5)  [,] information concerning school violence
12-24    prevention and violence intervention policies and procedures that
12-25    the district is using to protect students; [,] and
12-26                (6)  the findings that result from evaluations
12-27    conducted under the Safe and Drug-Free Schools and Communities Act
 13-1    of 1994 (20 U.S.C. Section 7101 et seq.)  and its subsequent
 13-2    amendments.
 13-3          (b)  Supplemental information to be included in the reports
 13-4    shall be determined by the board of trustees.  Performance
 13-5    information in the annual reports on the indicators established
 13-6    under Section 39.051 and descriptive information required by this
 13-7    section shall be provided by the agency.
 13-8          (c)  The board of trustees shall hold a hearing for public
 13-9    discussion of the report.  The board of trustees shall give notice
13-10    of the hearing to property owners in the district and parents,
13-11    guardians, conservators, and other persons having lawful control of
13-12    a district student.  The notification must include notice to a
13-13    newspaper of general circulation in the district and notice to
13-14    electronic media serving the district.  After the hearing the
13-15    report shall be widely disseminated within the district in a manner
13-16    to be determined under rules adopted by the commissioner.
13-17          (d)  The report must also include a comparison provided by
13-18    the agency of:
13-19                (1)  the performance of each campus to its previous
13-20    performance and to state-established standards;
13-21                (2)  the performance of each district to its previous
13-22    performance and to state-established standards; and
13-23                (3)  the performance of each campus or district to
13-24    comparable improvement.
13-25          (e)  The report may include the following information:
13-26                (1)  student information, including total enrollment,
13-27    enrollment by ethnicity, socioeconomic status, and at-risk
 14-1    [economic] status under Section 29.081, and grade groupings and
 14-2    retention rates;
 14-3                (2)  financial information, including revenues and
 14-4    expenditures;
 14-5                (3)  staff information, including number and type of
 14-6    staff by gender [sex], ethnicity, years of experience, and highest
 14-7    degree held, teacher and administrator salaries, and teacher
 14-8    turnover;
 14-9                (4)  program information, including student enrollment
14-10    by program, teachers by program, and instructional operating
14-11    expenditures by program; and
14-12                (5)  the number of students placed in an alternative
14-13    education program under Chapter 37.
14-14          (f)  The State Board of Education by rule shall authorize the
14-15    combination of this report with other reports and financial
14-16    statements and shall restrict the number and length of reports that
14-17    school districts, school district employees, and school campuses
14-18    are required to prepare.
14-19          (g)  The report must include a statement of the amount, if
14-20    any, of the school district's unencumbered surplus fund balance as
14-21    of the last day of the preceding fiscal year and the percentage of
14-22    the preceding year's budget that the surplus represents.
14-23          SECTION 10.  The heading to Section 39.182, Education Code,
14-24    is amended to read as follows:
14-25          Sec. 39.182.  COMPREHENSIVE ANNUAL [BIENNIAL] REPORT.
14-26          SECTION 11.  Sections 39.182(a) and (b), Education Code, are
14-27    amended to read as follows:
 15-1          (a)  Not later than December 1 of each year, the [The] agency
 15-2    shall prepare and deliver to the governor, the lieutenant governor,
 15-3    the speaker of the house of representatives, each member of the
 15-4    legislature, the Legislative Budget Board, and the clerks of the
 15-5    standing committees of the senate and house of representatives with
 15-6    primary jurisdiction over the public school system a comprehensive
 15-7    report covering the preceding [two] school year [years] and
 15-8    containing:
 15-9                (1)  an evaluation of the achievements of the state
15-10    educational program in relation to the statutory goals for the
15-11    public education system under Section 4.002;
15-12                (2)  an evaluation of the status of education in the
15-13    state as reflected by the academic excellence indicators adopted
15-14    under Section 39.051;
15-15                (3)  a summary compilation of overall student
15-16    performance on academic skills assessment instruments required by
15-17    Section 39.023 with the number of students exempted from the
15-18    administration of those instruments and the basis of the
15-19    exemptions, aggregated by grade level, subject area, campus, and
15-20    district, and  with appropriate interpretations and analysis, and
15-21    disaggregated by race, ethnicity, gender [sex], and socioeconomic
15-22    status;
15-23                (4)  a summary compilation of overall performance of
15-24    students placed in an alternative education program established
15-25    under Section 37.008 on academic skills assessment instruments
15-26    required by Section 39.023 with the number of those students
15-27    exempted from the administration of those instruments and the basis
 16-1    of the exemptions, aggregated by grade level and subject area, with
 16-2    appropriate interpretations and analysis, and disaggregated by
 16-3    race, ethnicity, gender, and socioeconomic status;
 16-4                (5)  an evaluation of the correlation between student
 16-5    grades and student performance on academic skills assessment
 16-6    instruments required by Section 39.023;
 16-7                (6) [(5)]  a statement of the dropout rate of students
 16-8    in grade levels 7 through 12, expressed in the aggregate and by
 16-9    grade level;
16-10                (7)  a statement of:
16-11                      (A)  the completion rate of students who enter
16-12    grade level 9 and graduate not more than four years later;
16-13                      (B)  the completion rate of students who enter
16-14    grade level 9 and graduate, including students who require more
16-15    than four years to graduate;
16-16                      (C)  the completion rate of students who enter
16-17    grade level 9 and not more than four years later receive a high
16-18    school equivalency certificate;
16-19                      (D)  the completion rate of students who enter
16-20    grade level 9 and receive a high school equivalency certificate,
16-21    including students who require more than four years to receive a
16-22    certificate; and
16-23                      (E)  the number and percentage of all students
16-24    who have not been accounted for under Paragraph (A), (B), (C), or
16-25    (D) and are not enrolled in a private school, home school, or
16-26    school in another state;
16-27                (8) [(6)]  a statement of the projected cross-sectional
 17-1    and longitudinal dropout rates for grade levels 9 [7] through 12
 17-2    for the next five years, assuming no state action is taken to
 17-3    reduce the dropout rate;
 17-4                (9) [(7)]  a description of a systematic, measurable
 17-5    plan for reducing the projected cross-sectional and longitudinal
 17-6    dropout rates to five percent or less for the 1997-1998 school
 17-7    year;
 17-8                (10) [(8)]  a summary of the information required by
 17-9    Section 29.083 regarding grade level retention of students and
17-10    information concerning:
17-11                      (A)  the number and percentage of students
17-12    retained; and
17-13                      (B)  the performance of retained students on
17-14    assessment instruments required under Section 39.023(a);
17-15                (11)  information, aggregated by district type and
17-16    disaggregated by race, ethnicity, gender, and socioeconomic status,
17-17    on:
17-18                      (A)  the number of students placed in an
17-19    alternative education program established under Section 37.008;
17-20                      (B)  the average length of a student's placement
17-21    in an alternative education program established under Section
17-22    37.008;
17-23                      (C)  the academic performance of students on
17-24    assessment instruments required under Section 39.023(a) during the
17-25    year preceding and during the year following placement in an
17-26    alternative education program; and
17-27                      (D)  the dropout rates of students who have been
 18-1    placed in an alternative education program established under
 18-2    Section 37.008;
 18-3                (12) [(9)]  a list of each school district or campus
 18-4    that does not satisfy performance standards, with an explanation of
 18-5    the actions taken by the commissioner to improve student
 18-6    performance in the district or campus and an evaluation of the
 18-7    results of those actions;
 18-8                (13) [(10)]  an evaluation of the status of the
 18-9    curriculum taught in public schools, with recommendations for
18-10    legislative changes necessary to improve or modify the curriculum
18-11    required by Section 28.002;
18-12                (14) [(11)]  a description of all funds received by and
18-13    each activity and expenditure of the agency;
18-14                (15) [(12)]  a summary and analysis of the compliance
18-15    of school districts with administrative cost ratios set by the
18-16    commissioner under Section 42.201, including any improvements and
18-17    cost savings achieved by school districts;
18-18                (16) [(13)]  a summary of the effect of deregulation,
18-19    including exemptions and waivers granted under Section 7.056 or
18-20    39.112;
18-21                (17) [(14)]  a statement of the total number and length
18-22    of reports that school districts and school district employees must
18-23    submit to the agency, identifying which reports are required by
18-24    federal statute or rule, state statute, or agency rule, and a
18-25    summary of the agency's efforts to reduce overall reporting
18-26    requirements;
18-27                (18) [(15)]  a list of each school district that is not
 19-1    in compliance with state special education requirements, including:
 19-2                      (A)  the period for which the district has not
 19-3    been in compliance;
 19-4                      (B)  the manner in which the agency considered
 19-5    the district's failure to comply in determining the district's
 19-6    accreditation status; and
 19-7                      (C)  an explanation of the actions taken by the
 19-8    commissioner to ensure compliance and an evaluation of the results
 19-9    of those actions;
19-10                (19)  a summary of school district compliance with the
19-11    student/teacher ratios and class-size limitations prescribed by
19-12    Sections 25.111 and 25.112, including the number of districts
19-13    granted an exception under Section 25.112(d);
19-14                (20)  a summary of the exemptions and waivers granted
19-15    to school districts under Section 7.056 or 39.112 and a review of
19-16    the effectiveness of each campus or district following
19-17    deregulation;
19-18                (21)  an evaluation of the performance of the system of
19-19    regional education service centers based on the indicators adopted
19-20    under Section 8.101 and client satisfaction with services provided
19-21    under Subchapter B, Chapter 8;
19-22                (22)  a comparison of the performance of
19-23    open-enrollment charter schools and school districts on the
19-24    academic excellence indicators specified in Section 39.051(b), with
19-25    a separately aggregated comparison of the performance of
19-26    open-enrollment charter schools granted under Section 12.1011(a)(2)
19-27    with the performance of school districts; and
 20-1                (23) [(16)]  any additional information considered
 20-2    important by the commissioner or the State Board of Education.
 20-3          (b)  In reporting the information required by Subsection
 20-4    (a)(3) or (4), the agency may separately aggregate the performance
 20-5    data of students enrolled in a special education program under
 20-6    Subchapter A, Chapter 29, or a bilingual education or special
 20-7    language program under Subchapter B, Chapter 29.
 20-8          SECTION 12.  Section 42.152, Education Code, is amended by
 20-9    amending Subsections (b), (c), (s), and (t) and adding Subsections
20-10    (r) and (u) to read as follows:
20-11          (b)  For purposes of this section, the number of
20-12    educationally disadvantaged students is determined:
20-13                (1)  by averaging the best six months' enrollment in
20-14    the national school lunch program of free or reduced-price lunches
20-15    for the preceding school year; or
20-16                (2)  in the manner determined by commissioner rule, if
20-17    the district did not participate in the national school lunch
20-18    program of free or reduced-price lunches during the preceding
20-19    school year.
20-20          (c)  Funds allocated under this section shall be used to fund
20-21    supplemental programs and services designed to eliminate any
20-22    disparity in performance on assessment instruments administered
20-23    under Subchapter B, Chapter 39, or disparity in the rates of high
20-24    school completion or receipt of a high school equivalency
20-25    certificate between students at risk of dropping out of school, as
20-26    defined by Section 29.081, and all other students.  Specifically,
20-27    the funds, other than an indirect cost allotment established under
 21-1    State Board of Education rule, which may not exceed 15 percent, may
 21-2    be used only to meet the costs of [in] providing a compensatory,
 21-3    intensive, or [education and] accelerated instruction program
 21-4    [programs] under Section 29.081 or an alternative education program
 21-5    established under Section 37.008 or to support a program eligible
 21-6    under Title I of the Elementary and Secondary Education Act of
 21-7    1965, as provided by Pub. L. No. 103-382 and its subsequent
 21-8    amendments, and by federal regulations implementing that Act [and
 21-9    may only be spent to improve and enhance programs and services
21-10    funded under the regular education program].  In meeting the costs
21-11    of providing a compensatory, intensive, or accelerated instruction
21-12    program under Section 29.081, a [A] district's compensatory
21-13    education allotment may be used only for costs supplementary to the
21-14    regular education program, such as costs for program and student
21-15    evaluation, instructional materials and equipment and other
21-16    supplies required for quality instruction, supplemental staff
21-17    expenses, salary for teachers of at-risk students, smaller class
21-18    size, and individualized instruction.  A home-rule school district
21-19    or an open-enrollment charter school must use funds allocated under
21-20    Subsection (a) for a purpose authorized in this subsection, [to
21-21    provide compensatory education services] but is not otherwise
21-22    subject to Subchapter C, Chapter 29.
21-23          (r)  The commissioner shall grant a one-year exemption from
21-24    the requirements of Subsection (q) to a school district in which
21-25    the group of students identified under Section 29.081 as being at
21-26    risk of dropping out of school performs on the assessment
21-27    instruments specified by Section 39.051(b)(1) at a level that meets
 22-1    or exceeds the level required for a performance rating of
 22-2    academically recognized.  Not later than March 1 of each year, the
 22-3    commissioner, based on the most recent information available, shall
 22-4    determine if a school district is entitled to an exemption for the
 22-5    following school year and notify the district of that
 22-6    determination.
 22-7          (s)  Subsection (r) applies beginning with the 2003-2004
 22-8    school year.  This subsection expires September 1, 2004.
 22-9          (t)  A reduction made under this section or the General
22-10    Appropriations Act in the allotment under this section does not
22-11    affect the computation of students in weighted average daily
22-12    attendance for purposes of Subchapter F.
22-13          (u) [(t)]  For each year of a state fiscal biennium, the
22-14    commissioner shall reduce the guaranteed level of state and local
22-15    funds per weighted student per cent of tax effort under Section
22-16    42.302 by an amount sufficient to reduce state costs in an amount
22-17    equal to the increase in state costs due to the application of
22-18    Subsection (t) [(s)].  The commissioner shall determine the same
22-19    reduction for each year and shall announce the determination as
22-20    soon as practicable after August 1 preceding the beginning of the
22-21    biennium.  A determination by the commissioner under this section
22-22    is final and may not be appealed.
22-23          SECTION 13.  (a)  Using funds specifically appropriated for
22-24    that purpose, the commissioner of education shall form a committee
22-25    to conduct a study and detailed analysis of:
22-26                (1)  effective public education compensatory education
22-27    programs for students receiving services under Section 29.081,
 23-1    Education Code, or Title I of the Elementary and Secondary
 23-2    Education Act of 1965 (20 U.S.C. Section 6301 et seq.); and
 23-3                (2)  effective higher education developmental programs
 23-4    delivered under Section 51.306, Education Code.
 23-5          (b)  The committee formed by the commissioner of education
 23-6    under Subsection (a) of this section shall organize and administer
 23-7    the study required by this section.  The committee must be composed
 23-8    of:
 23-9                (1)  at least one representative of each of the
23-10    following agencies:
23-11                      (A)  the Legislative Budget Board;
23-12                      (B)  the Texas Education Agency;
23-13                      (C)  the office of the state auditor;
23-14                      (D)  the office of the comptroller; and
23-15                      (E)  the Texas Higher Education Coordinating
23-16    Board;
23-17                (2)  two representatives of the general public selected
23-18    by the chair of the Senate Committee on Education;
23-19                (3)  one representative of the general public selected
23-20    by the chair of the House Committee on Public Education;
23-21                (4)  one representative of the general public selected
23-22    by the chair of the House Committee on Higher Education; and
23-23                (5)  three educators selected by the commissioner of
23-24    education, one of whom must be a classroom teacher, and one of whom
23-25    must be an administrator.
23-26          (c)  In conducting the study required by this section, the
23-27    committee shall use data collected through the Public Education
 24-1    Information Management System (PEIMS), data collected by the Texas
 24-2    Higher Education Coordinating Board, and program evaluations
 24-3    conducted by the Texas Education Agency and the Texas Higher
 24-4    Education Coordinating Board of a variety of effective compensatory
 24-5    and developmental programs operated in a wide range of schools and
 24-6    institutions of higher education across the state.
 24-7          (d)  Using information collected locally, the study shall
 24-8    examine compensatory and developmental programs, including cost
 24-9    elements of those programs, in a manner that allows comparison
24-10    between similar schools and types of students.
24-11          (e)  Not later than December 1, 2002, the committee shall
24-12    submit to the legislature a report of the results of the study.
24-13          (f)  The committee is abolished and this section expires
24-14    January 1, 2003.
24-15          SECTION 14.  Sections 39.183 and 39.185, Education Code, are
24-16    repealed.
24-17          SECTION 15.  (a)  Except as otherwise provided by this
24-18    section, this Act applies beginning with the 2001-2002 school year.
24-19          (b)  Sections 7.111 and 25.086, Education Code, as amended by
24-20    this Act, and Section 29.087, Education Code, as added by this Act,
24-21    apply immediately.
24-22          (c)  Section 39.051(g), Education Code, as added by this Act,
24-23    and Section 39.053(e), Education Code, as amended by this Act,
24-24    apply beginning with the 2002-2003 school year.
24-25          (d)  Section 39.182, Education Code, as amended by this Act,
24-26    applies beginning with the report required to be prepared not later
24-27    than December 1, 2001, except that:
 25-1                (1)  the Texas Education Agency, in computing
 25-2    information relating to students at risk of dropping out of school
 25-3    for inclusion in the report due December 1, 2001, and the report
 25-4    due December 1, 2002, may determine appropriate information based
 25-5    on Section 29.081, Education Code, as it existed before amendment
 25-6    by this Act; and
 25-7                (2)  the Texas Education Agency shall include
 25-8    information specified under Section 39.182(a)(7)(E), Education
 25-9    Code, as added by this Act, beginning with the report due December
25-10    1, 2004, and shall include, to the extent available, alternative
25-11    information relating to students who leave school in the reports
25-12    due in 2001, 2002, and 2003.
25-13          SECTION 16.  This Act takes effect immediately if it receives
25-14    a vote of two-thirds of all the members elected to each house, as
25-15    provided by Section 39, Article III, Texas Constitution.  If this
25-16    Act does not receive the vote necessary for immediate effect, this
25-17    Act takes effect September 1, 2001.