By Barrientos                                         S.B. No. 1072
         77R7495 CAS-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to students who drop out of public school.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1. Section 5.001, Education Code, is amended to read
 1-5     as follows:
 1-6           Sec. 5.001.  DEFINITIONS.  In this title:
 1-7                 (1)  "Agency" means the Texas Education Agency.
 1-8                 (2)  "Classroom teacher" means an educator who is
 1-9     employed by a school district and who, not less than an average of
1-10     four hours each day, teaches in an academic instructional setting
1-11     or a career and technology instructional setting.  The term does
1-12     not include a teacher's aide or a full-time administrator.
1-13                 (3)  "Commissioner" means the commissioner of
1-14     education.
1-15                 (4)  "Dropout" means a student enrolled in a public
1-16     school in this state:
1-17                       (A)  who withdraws from school without earning a
1-18     high school diploma; and
1-19                       (B)  whose enrollment in another public school or
1-20     a private school in this country that grants high school diplomas
1-21     has not been verified and recorded by a school district in this
1-22     state or by the agency.
1-23                 (5) [(4)]  "Educationally disadvantaged" means eligible
1-24     to participate in the national free or reduced-price lunch program
 2-1     established under 42 U.S.C. Section 1751 et seq.
 2-2                 (6) [(5)]  "Educator" means a person who is required to
 2-3     hold a certificate issued under Subchapter B, Chapter 21.
 2-4                 (7)  "Longitudinal dropout rate" means a rate computed
 2-5     as a percentage of:
 2-6                       (A)  dropouts over a four-year period measured
 2-7     against a cohort of students who entered the ninth grade at the
 2-8     same time as the dropouts, if determining the longitudinal dropout
 2-9     rate of a high school campus;
2-10                       (B)  seventh-grade and eighth-grade dropouts over
2-11     a two-year period measured against a cohort of students who entered
2-12     the seventh grade at the same time as the dropouts, if determining
2-13     the longitudinal dropout rate of a middle school or junior high
2-14     school campus, regardless of whether the campus also includes a
2-15     sixth-grade class;
2-16                       (C)  school district dropouts over a six-year
2-17     period measured against a cohort of district students who entered
2-18     the seventh grade at the same time as the dropouts, if determining
2-19     the longitudinal dropout rate of a district; and
2-20                       (D)  dropouts from all school districts in this
2-21     state over a six-year period measured against a cohort of students
2-22     who entered the seventh grade at the same time as the dropouts, if
2-23     determining the state longitudinal dropout rate.
2-24                 (8) [(6)]  "Open-enrollment charter school" means a
2-25     school that has been granted a charter under Subchapter D, Chapter
2-26     12.
2-27                 (9) [(7)]  "Regional education service centers" means a
 3-1     system of regional and educational services established in Chapter
 3-2     8.
 3-3                 (10) [(8)]  "Residential facility" means:
 3-4                       (A)  a facility operated by a state agency or
 3-5     political subdivision, including a child placement agency, that
 3-6     provides 24-hour custody or care of a person 22 years of age or
 3-7     younger, if the person resides in the facility for detention,
 3-8     treatment, foster care, or any noneducational purpose; and
 3-9                       (B)  any person or entity that contracts with or
3-10     is funded, licensed, certified, or regulated by a state agency or
3-11     political subdivision to provide custody or care for a person under
3-12     Paragraph (A).
3-13           SECTION 2. Subchapter D, Chapter 11, Education Code, is
3-14     amended by adding Section 11.166 to read as follows:
3-15           Sec. 11.166.  DROPOUT PREVENTION COMMITTEE. (a)  The board of
3-16     trustees of an independent school district shall appoint a
3-17     committee to monitor and make recommendations to the board
3-18     concerning the district's dropout prevention efforts.
3-19           (b)  In addition to other members as determined by the board
3-20     of trustees, the committee must be composed of:
3-21                 (1)  parents of district students;
3-22                 (2)  members of the business community in the district;
3-23     and
3-24                 (3)  at least one district employee from each high
3-25     school, middle school, and junior high school campus in the
3-26     district.
3-27           (c)  The committee shall regularly and systematically monitor
 4-1     district dropout prevention efforts at each district campus.  The
 4-2     board shall assign primary responsibility for monitoring the
 4-3     dropout prevention efforts at a district high school, junior high
 4-4     school, or middle school campus to the member of the committee
 4-5     employed at that campus.
 4-6           (d)  The committee shall work in conjunction with the
 4-7     district-level committee established under Section 11.251
 4-8     concerning the dropout reduction portion of the district
 4-9     improvement plan.
4-10           SECTION 3. Subchapter C, Chapter 39, Education Code, is
4-11     amended by adding Section 39.055 to read as follows:
4-12           Sec. 39.055.  ANNUAL AUDIT OF DROPOUT RECORDS; REPORT.
4-13     (a)  The board of trustees of each school district shall have the
4-14     district's dropout records audited annually at district expense by
4-15     a public accountant or certified public accountant who:
4-16                 (1)  is certified or registered, as appropriate, and
4-17     licensed under Chapter 901, Occupations Code; and
4-18                 (2)  is not an employee of the district.
4-19           (b)  The audit of dropout records must be completed following
4-20     the end of each school year.
4-21           (c)  The audit of dropout records must meet at least the
4-22     minimum requirements and be in the format prescribed by the
4-23     commissioner, subject to review and comment by the state auditor.
4-24           (d)  A copy of the report of the audit of dropout records,
4-25     approved by the district's board of trustees, shall be filed by the
4-26     district with the agency not later than the 120th day after the end
4-27     of the school year for which the audit was made.  If the board of
 5-1     trustees declines or refuses to approve the report, the board shall
 5-2     file with the agency a copy of the report with the board's
 5-3     statement giving detailed reasons for not approving the report.
 5-4           (e)  The agency shall review reports of audits of dropout
 5-5     records.  The commissioner shall notify the board of trustees of a
 5-6     school district of any objections the commissioner has to the
 5-7     report, violations of sound accounting practices or law and rule
 5-8     requirements revealed by the report, or commissioner
 5-9     recommendations concerning the report.  If the report reflects that
5-10     penal laws have been violated, the commissioner shall notify the
5-11     county attorney, district attorney, or criminal district attorney,
5-12     as appropriate, and the attorney general.  The commissioner is
5-13     entitled to access to all district records the commissioner
5-14     considers necessary and appropriate for the review, analysis, and
5-15     approval of the reports.
5-16           SECTION 4. Section 39.073, Education Code, is amended by
5-17     adding Subsection (f) to read as follows:
5-18           (f)  Beginning with the 2004-2005 school year, in addition to
5-19     other criteria that must be met, a campus may not be rated as
5-20     acceptable or higher unless the longitudinal dropout rate of the
5-21     campus for each category specified by this subsection is five
5-22     percent or less, and a school district may not be rated as
5-23     academically acceptable or higher unless the longitudinal dropout
5-24     rate of the district for each category specified by this subsection
5-25     is five percent or less.  For purposes of this section, information
5-26     concerning dropout rates shall be  disaggregated by race,
5-27     ethnicity, sex, socioeconomic status, and status as a student of
 6-1     limited English proficiency as defined by Section 29.052.
 6-2           SECTION 5.  Section 39.182(a), Education Code, is amended to
 6-3     read as follows:
 6-4           (a)  The agency shall prepare and deliver to the governor,
 6-5     the lieutenant governor, the speaker of the house of
 6-6     representatives, each member of the legislature, the Legislative
 6-7     Budget Board, and the clerks of the standing committees of the
 6-8     senate and house of representatives with primary jurisdiction over
 6-9     the public school system a comprehensive report covering the
6-10     preceding two school years and containing:
6-11                 (1)  an evaluation of the achievements of the state
6-12     educational program in relation to the statutory goals for the
6-13     public education system under Section 4.002;
6-14                 (2)  an evaluation of the status of education in the
6-15     state as reflected by the academic excellence indicators adopted
6-16     under Section 39.051;
6-17                 (3)  a summary compilation of overall student
6-18     performance on academic skills assessment instruments required by
6-19     Section 39.023, aggregated by grade level, subject area, campus,
6-20     and district, with appropriate interpretations and analysis and
6-21     disaggregated by race, ethnicity, sex, and socioeconomic status;
6-22                 (4)  an evaluation of the correlation between student
6-23     grades and student performance on academic skills assessment
6-24     instruments required by Section 39.023;
6-25                 (5)  a statement of:
6-26                       (A)  the state longitudinal dropout rate of
6-27     students  in grade levels 7 through 12, expressed in the aggregate
 7-1     and by grade level and disaggregated by sex and by the number of
 7-2     students who have also been retained at a grade level; and
 7-3                       (B)  the longitudinal dropout rate of students in
 7-4     grade levels 9 through 12 at high school campuses in this state,
 7-5     expressed in the aggregate and by grade level and disaggregated by
 7-6     sex and by the number of students who have also been retained at a
 7-7     grade level;
 7-8                 (6)  a statement of the projected state
 7-9     [cross-sectional and] longitudinal dropout rates for grade levels 7
7-10     through 12 for the next five years based on the most recent state
7-11     longitudinal dropout rate, assuming no state action is taken to
7-12     reduce the dropout rate;
7-13                 (7)  a description of a measurable systematic plan for
7-14     reducing the projected state [cross-sectional and] longitudinal
7-15     dropout rate [rates] to five percent or less beginning with [for]
7-16     the 2004-2005 [1997-1998] school year;
7-17                 (8)  a summary of the information required by Section
7-18     29.083 regarding grade level retention of students;
7-19                 (9)  a list of each school district or campus that does
7-20     not satisfy performance standards, with an explanation of the
7-21     actions taken by the commissioner to improve student performance in
7-22     the district or campus and an evaluation of the results of those
7-23     actions;
7-24                 (10)  an evaluation of the status of the curriculum
7-25     taught in public schools, with recommendations for legislative
7-26     changes necessary to improve or modify the curriculum required by
7-27     Section 28.002;
 8-1                 (11)  a description of all funds received by and each
 8-2     activity and expenditure of the agency;
 8-3                 (12)  a summary and analysis of the compliance of
 8-4     school districts with administrative cost ratios set by the
 8-5     commissioner under Section 42.201, including any improvements and
 8-6     cost savings achieved by school districts;
 8-7                 (13)  a summary of the effect of deregulation,
 8-8     including exemptions and waivers granted under Section 7.056 or
 8-9     39.112;
8-10                 (14)  a statement of the total number and length of
8-11     reports that school districts and school district employees must
8-12     submit to the agency, identifying which reports are required by
8-13     federal statute or rule, state statute, or agency rule, and a
8-14     summary of the agency's efforts to reduce overall reporting
8-15     requirements;
8-16                 (15)  a list of each school district that is not in
8-17     compliance with state special education requirements, including:
8-18                       (A)  the period for which the district has not
8-19     been in compliance;
8-20                       (B)  the manner in which the agency considered
8-21     the district's failure to comply in determining the district's
8-22     accreditation status; and
8-23                       (C)  an explanation of the actions taken by the
8-24     commissioner to ensure compliance and an evaluation of the results
8-25     of those actions; and
8-26                 (16)  any additional information considered important
8-27     by the commissioner or the State Board of Education.
 9-1           SECTION 6.  Section 42.152, Education Code, is amended by
 9-2     adding Subsections (u) and (v) to read as follows:
 9-3           (u)  From the total amount of funds appropriated for
 9-4     allotments under this section, the commissioner shall, each fiscal
 9-5     year, withhold $250,000 or a greater amount as determined in the
 9-6     General Appropriations Act and out of that amount distribute:
 9-7                 (1)  $10,000 or a greater amount as determined in the
 9-8     General Appropriations Act to each of the 20 high school campuses
 9-9     that achieved the greatest annual reduction in the longitudinal
9-10     dropout rate for the preceding school year; and
9-11                 (2)  $50,000 or a greater amount as determined by the
9-12     General Appropriations Act among other districts selected by the
9-13     commissioner according to guidelines adopted by the commissioner to
9-14     be used for instructional materials or program replication  based
9-15     on programs used to lower the dropout rate in districts described
9-16     under Subdivision (1).
9-17           (v)  After deducting the amount withheld under Subsection (u)
9-18     from the total amount appropriated for the allotment under
9-19     Subsection (a), the commissioner shall reduce each district's
9-20     allotments in the same manner described for a reduction in
9-21     allotments under Section 42.253.
9-22           SECTION 7. (a)  As soon as practicable after the effective
9-23     date of this Act, the commissioner of education shall adopt rules
9-24     concerning the minimum requirements and the format of the audit of
9-25     dropout records prescribed under Section 39.055, Education Code, as
9-26     added by this Act.  Each school district shall have its dropout
9-27     records audited as required by Section 39.055, Education Code, as
 10-1    added by this Act, beginning with dropout records for the 2001-2002
 10-2    school year.
 10-3          (b)  Not later than January 1, 2003, the commissioner of
 10-4    education shall submit to the legislature a plan to incrementally
 10-5    decrease the state and school district longitudinal dropout rates
 10-6    to five percent or less.
 10-7          SECTION 8. This Act takes effect September 1, 2001.