79S30523 BDH/PAM/SLO-D

By:  Grusendorf                                                   H.B. No. 56 


A BILL TO BE ENTITLED
AN ACT
relating to the compensation and benefits of public school employees, the academic and fiscal accountability of public schools, and the improvement of public schools. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. STATE AND REGIONAL GOVERNANCE
SECTION 1.01. Chapter 1, Education Code, is amended by adding Section 1.005 to read as follows: Sec. 1.005. EDUCATION RESEARCH CENTERS; SHARING STUDENT INFORMATION. (a) In this section, "center" means a center for education research authorized by this section. (b) The commissioner of education and the commissioner of higher education may establish not more than three centers for education research for conducting research described by Subsections (e) and (f). (c) A center may be established as part of: (1) the Texas Education Agency; (2) the Texas Higher Education Coordinating Board; or (3) a public junior college, public senior college or university, or public state college, as those terms are defined by Section 61.003. (d) A center may be operated under a memorandum of understanding between the commissioner of education, the commissioner of higher education, and the governing board of an educational institution described by Subsection (c)(3). The memorandum of understanding must require the commissioner of education, or a person designated by the commissioner, and the commissioner of higher education, or a person designated by the commissioner, to provide direct, joint supervision of the center under this section. (e) A center shall conduct research for the benefit of education in this state, including research relating to the impact of state and federal education programs, the performance of educator preparation programs, public school finance, and the best practices of school districts with regard to classroom instruction, bilingual education programs, special language programs, and business practices. (f) The commissioner of education and the commissioner of higher education: (1) under the memorandum of understanding described by Subsection (d), may require a center to conduct certain research projects considered of particular importance to the state, as determined by the commissioners; and (2) not later than the 45th day before the date a research project required to be conducted under this subsection is scheduled to begin, shall notify the governor, the Legislative Budget Board, and the governing body of the educational institution in which the center is established that the research project is required. (g) In conducting research under this section, a center: (1) may use data on student performance, including data that is confidential under the Family Educational Rights and Privacy Act of 1974 (20 U.S.C. Section 1232g), the center has collected from the Texas Education Agency, the Texas Higher Education Coordinating Board, the Educators' Professional Practices Board, any public or private institution of higher education, and any school district; and (2) shall comply with rules adopted by the commissioner of education and the commissioner of higher education to protect the confidentiality of student information, including rules establishing procedures to ensure that confidential student information is not duplicated or removed from a center in an unauthorized manner. (h) The commissioner of education and the commissioner of higher education may: (1) accept gifts and grants to be used in operating one or more centers; and (2) by rule impose reasonable fees, as appropriate, for the use of a center's research, resources, or facilities. (i) This section does not authorize the disclosure of student information that may not be disclosed under the Family Educational Rights and Privacy Act of 1974 (20 U.S.C. Section 1232g). (j) The commissioner of education and the commissioner of higher education shall adopt rules as necessary to implement this section. (k) In implementing this section, the commissioner of education may use funds appropriated to the agency and available for that purpose, including foundation school program funds. SECTION 1.02. Subchapter A, Chapter 7, Education Code, is amended by adding Sections 7.008 and 7.009 to read as follows: Sec. 7.008. PUBLIC ACCESS TO PEIMS DATA. (a) The commissioner with the assistance of an advisory panel described by Subsection (b) shall develop a request for proposal for a qualified third-party contractor to develop and implement procedures to make available, through the agency Internet website, all financial and academic performance data submitted through the Public Education Information Management System (PEIMS) for school districts and campuses. (b) The commissioner shall appoint an advisory panel to assist the commissioner in developing requirements for a system that is easily accessible by the general public and contains information of primary relevance to the public. The advisory panel shall consist of: (1) educators; (2) interested stakeholders; (3) business leaders; and (4) other interested members of the public. (c) The procedures developed under this section must provide: (1) a summarized format easily understood by the public for reporting financial and academic performance information on the agency Internet website; and (2) the ability for those who access the Internet website to view and download state, district, and campus level information. (d) This section does not authorize the disclosure of student information that may not be disclosed under the Family Educational Rights and Privacy Act of 1974 (20 U.S.C. Section 1232g). The commissioner shall adopt rules to protect the confidentiality of student information. (e) The procedures to make available, through the agency Internet website, all financial and academic performance information for school districts and campuses as described by this section shall be implemented not later than August 1, 2007. This subsection expires August 1, 2009. Sec. 7.009. ELECTRONIC STUDENT RECORDS SYSTEM. (a) In this section, "institution of higher education" has the meaning assigned by Section 61.003. (b) Each school district, open-enrollment charter school, and institution of higher education shall participate in an electronic student records system that satisfies standards approved by the commissioner of education and the commissioner of higher education. (c) The electronic student records system must permit an authorized state or district official or an authorized representative of an institution of higher education to electronically transfer to and from an educational institution in which the student is enrolled and retrieve student transcripts, including information concerning a student's: (1) course or grade completion; (2) teachers of record; (3) assessment instrument results; (4) receipt of special education services, including placement in a special education program and the individualized education program developed; and (5) personal graduation plan as described by Section 28.0212. (d) The commissioner of education or the commissioner of higher education may solicit and accept grant funds to maintain the electronic student records system and to make the system available to school districts, open-enrollment charter schools, and institutions of higher education. (e) A private or independent institution of higher education, as defined by Section 61.003, may participate in the electronic student records system under this section. If a private or independent institution of higher education elects to participate, the institution must provide the funding to participate in the system. (f) Any person involved in the transfer and retrieval of student information under this section is subject to any state or federal law governing the release of or providing access to any confidential information to the same extent as the educational institution from which the data is collected. A person may not release or distribute the data to any other person in a form that contains confidential information. (g) The electronic student records system shall be implemented not later than the beginning of the 2007-2008 school year. This subsection expires September 1, 2008.
ARTICLE 2. ACCOUNTABILITY
SECTION 2.01. Subchapter A, Chapter 7, Education Code, is amended by adding Section 7.010 to read as follows: Sec. 7.010. BEST PRACTICES; CLEARINGHOUSE. (a) In coordination with the Legislative Budget Board, the agency shall establish an online clearinghouse of information relating to best practices of campuses and school districts regarding instruction, resource allocation, and business practices. To the extent practicable, the agency shall ensure that information provided through the online clearinghouse is specific, actionable information relating to the best practices of high-performing and highly efficient campuses and school districts rather than general guidelines relating to campus and school district operation. The information must be accessible by campuses, school districts, and interested members of the public. (b) The agency shall solicit and collect from the Legislative Budget Board, centers for education research established under Section 1.005, and exemplary or recognized school districts and open-enrollment charter schools, as rated under Section 39.072, examples of best practices relating to instruction, resource allocation, and business practices, including best practices relating to curriculum, scope and sequence, compensation and incentive systems, bilingual education and special language programs, compensatory education programs, and the effective use of instructional technology, including online courses. (c) The agency shall contract for the services of one or more third-party contractors to develop, implement, and maintain a system of collecting and evaluating the best practices of campuses and school districts as provided by this section. In addition to any other considerations required by law, the agency must consider an applicant's demonstrated competence and qualifications in analyzing campus and school district practices in awarding a contract under this subsection. (d) The commissioner may purchase from available funds curriculum and other instructional tools identified under this section to provide for use by school districts. SECTION 2.02. Subchapter C, Chapter 7, Education Code, is amended by adding Section 7.0571 to read as follows: Sec. 7.0571. INFORMAL REVIEW BY COMMISSIONER. (a) The commissioner shall adopt rules under which a school district, open-enrollment charter school, or other person that wishes to challenge an agency decision made under Chapter 39 must petition the commissioner for an informal review by the commissioner of the decision. (b) The commissioner may limit a review under this section to a written submission of any issue identified by the commissioner. (c) A final decision under this section is final and may not be appealed under Section 7.057 or any other law. SECTION 2.03. Section 28.006(j), Education Code, is amended to read as follows: (j) No more than 15 percent of the funds certified by the commissioner under Subsection (i) may be spent on indirect costs. The commissioner shall evaluate the programs that fail to meet the standard of performance under Section 39.051(b)(8) [39.051(b)(7)] and may implement sanctions under Subchapter G, Chapter 39. The commissioner may audit the expenditures of funds appropriated for purposes of this section. The use of the funds appropriated for purposes of this section shall be verified as part of the district audit under Section 44.008. SECTION 2.04. Subchapter B, Chapter 39, Education Code, is amended by adding Section 39.034 to read as follows: Sec. 39.034. MEASURE OF ANNUAL IMPROVEMENT IN STUDENT ACHIEVEMENT. (a) The commissioner shall determine a method by which the agency may measure annual improvement in student achievement from one school year to the next on an assessment instrument required under this subchapter. (b) For students of limited English proficiency, as defined by Section 29.052, the agency shall use a student's performance data on reading proficiency assessment instruments in English to calculate the student's progress toward proficiency in English. (c) The agency shall use a student's previous years' performance data on an assessment instrument required under this subchapter to determine the student's expected annual improvement. The agency shall report that expected level of annual improvement and the actual level of annual improvement achieved to the district. The report must state whether the student fell below, met, or exceeded the agency's expectation for improvement. (d) The agency shall determine the necessary annual improvement required each year for a student to be prepared to pass the exit-level assessment instrument required under this subchapter for graduation. The agency shall report the necessary annual improvement required to the district. Each year, the report must state whether the student fell below, met, or exceeded the necessary target for improvement. (e) The agency shall report to each school district the comparisons made under this section. Each school district shall provide the comparisons to each teacher for all students who were: (1) assessed on an assessment instrument; and (2) taught by that teacher in the subject for which the assessment instrument was administered. (f) The school a student attends shall provide a record of the comparisons made under this section and provided to the school under Subsection (e) in a written notice to the student's parents. (g) To the extent practicable, the agency shall combine the report of the comparisons required under this section with the report of the student's performance on assessment instruments administered under Section 39.023. (h) The commissioner shall implement this section not later than May 1, 2007. This subsection expires January 1, 2008. SECTION 2.05. Section 39.051(b), Education Code, as amended by Chapters 433 and 805, Acts of the 78th Legislature, Regular Session, 2003, is reenacted and amended to read as follows: (b) Performance on the indicators adopted under this section shall be compared to state-established standards. The degree of change from one school year to the next in performance on each indicator adopted under this section shall also be considered. The indicators must be based on information that is disaggregated by race, ethnicity, gender, and socioeconomic status and must include: (1) the results of assessment instruments required under Sections 39.023(a), (c), and (l), aggregated by grade level and subject area; (2) dropout rates, including dropout rates and district completion rates for grade levels 9 through 12, computed in accordance with standards and definitions adopted by the National Center for Education Statistics of the United States Department of Education; (3) high school graduation rates, computed in accordance with standards and definitions adopted in compliance with the [federal] No Child Left Behind Act of 2001 (Pub. L. No. 107-110); (4) student attendance rates; (5) the percentage of graduating students who attain scores on the secondary exit-level assessment instruments required under Subchapter B that are equivalent to a passing score on the assessment [test] instrument required under Section 51.3062 [51.306]; (6) the percentage of graduating students who meet the course requirements established for the recommended high school program by State Board of Education rule; (7) the results of the Scholastic Assessment Test (SAT), the American College Test (ACT), articulated postsecondary degree programs described by Section 61.852, and certified workforce training programs described by Chapter 311, Labor Code; (8) the number and percentage of students, aggregated by grade level, provided accelerated instruction under Section 28.0211(c), the results of assessments administered under that section, the percentage of students promoted through the grade placement committee process under Section 28.0211, the subject of the assessment instrument on which each student failed to perform satisfactorily, and the performance of those students in the school year following that promotion on the assessment instruments required under Section 39.023; (9) for students who have failed to perform satisfactorily on an assessment instrument required under Section 39.023(a) or (c), the numerical progress of those students grouped by number and percentage on subsequent assessment instruments required under those sections, aggregated by grade level and subject area; (10) the percentage of students exempted, by exemption category, from the assessment program generally applicable under this chapter; [and] (11) the percentage of students of limited English proficiency exempted from the administration of an assessment instrument under Sections 39.027(a)(3) and (4); (12) the percentage of students in a special education program under Subchapter A, Chapter 29, assessed through assessment instruments developed or adopted under Section 39.023(b); (13) the measure of progress toward preparation for postsecondary success; and (14) the measure of progress toward English language proficiency under Section 39.034(b), for students of limited English proficiency, as defined by Section 29.052. SECTION 2.06. Section 39.051(d), Education Code, is amended to read as follows: (d) Annually, the commissioner shall define exemplary, recognized, and unacceptable performance for each academic excellence indicator included under Subsections (b)(1) through (7) [(6)] and shall project the standards for each of those levels of performance for succeeding years. For the indicator under Subsection (b)(8) [(b)(7)], the commissioner shall define exemplary, recognized, and unacceptable performance based on student performance for the period covering both the current and preceding academic years. In defining exemplary, recognized, and unacceptable performance for the indicators under Subsections (b)(2) and (4) [(3)], the commissioner may not consider as a dropout or as a student who has failed to attend school a student whose failure to attend school results from: (1) the student's expulsion under Section 37.007; and (2) as applicable: (A) adjudication as having engaged in delinquent conduct or conduct indicating a need for supervision, as defined by Section 51.03, Family Code; or (B) conviction of and sentencing for an offense under the Penal Code. SECTION 2.07. Section 39.052(b), Education Code, is amended to read as follows: (b) The report card shall include the following information: (1) where applicable, the academic excellence indicators adopted under Sections 39.051(b)(1) through (10) [(9)]; (2) average class size by grade level and subject; (3) the administrative and instructional costs per student, computed in a manner consistent with Section 44.0071; and (4) the district's instructional expenditures ratio and instructional employees ratio computed under Section 44.0071, and the statewide average of those ratios, as determined by the commissioner. SECTION 2.08. Section 39.071, Education Code, is amended to read as follows: Sec. 39.071. ACCREDITATION. (a) Accreditation of a school district is determined in accordance with this section [subchapter]. The commissioner by rule shall define the following accreditation statuses: (1) accredited; (2) accredited-warned; and (3) accredited-probation. (b) Each year, the commissioner shall determine the accreditation status of each school district. In determining accreditation status, the commissioner: (1) shall evaluate and consider the performance of the district under: (A) the academic accountability system under Section 39.072; and (B) the financial accountability system under Subchapter I; and (2) may consider: (A) the district's compliance with statutory requirements and requirements imposed by rule of the commissioner or State Board of Education under specific statutory authority that relate to: (i) reporting data through the Public Education Information Management System (PEIMS) or other reports required by state or federal law or court order; (ii) the high school graduation requirements under Section 28.025; or (iii) an item listed under Sections 7.056(e)(3)(C)-(I) that applies to the district; (B) the effectiveness of the district's programs for special populations; and (C) the effectiveness of the district's career and technology program. (c) Based on a school district's performance under Subsection (b), the commissioner shall: (1) assign a district an accreditation status; or (2) revoke the accreditation of the district and order closure of the district under this subchapter. (d) The commissioner shall notify a school district that receives an accreditation status of accredited-warned or accredited-probation that the performance of the district is below a standard required under this section. The commissioner shall require the district to notify the parents of students enrolled in the district and property owners in the district of the district's accreditation status and the implications of that accreditation status. (e) A school district that is not accredited may not receive funds from the agency or hold itself out as operating a public school of this state. (f) This chapter may not be construed to invalidate a diploma awarded, course credit earned, or grade promotion granted by a school district before the commissioner revoked the district's accreditation. SECTION 2.09. Sections 39.072(b) and (c), Education Code, are amended to read as follows: (b) The academic excellence indicators adopted under Sections 39.051(b)(1) through (8) [(7)] and the district's current special education compliance status with the agency shall be the main considerations of the agency in the rating of the district under this section. Additional criteria in the rules may include consideration of: (1) compliance with statutory requirements and requirements imposed by rule of the State Board of Education under specific statutory authority that relate to: (A) reporting data through the Public Education Information Management System (PEIMS); (B) the high school graduation requirements under Section 28.025; or (C) an item listed in Sections 7.056(e)(3)(C)-(I) that applies to the district; (2) the effectiveness of the district's programs for special populations; and (3) the effectiveness of the district's career and technology programs. (c) The agency shall evaluate against state standards and shall, not later than August 1 of each year, report the performance of each campus in a district and each open-enrollment charter school on the basis of the campus's performance on the indicators adopted under Sections 39.051(b)(1) through (8) [(7)]. Consideration of the effectiveness of district programs under Subsection (b)(2) or (3) must be based on data collected through the Public Education Information Management System for purposes of accountability under this chapter and include the results of assessments required under Section 39.023. SECTION 2.10. Sections 39.073(a) and (b), Education Code, are amended to read as follows: (a) The agency shall annually review the performance of each district and campus on the indicators adopted under Sections 39.051(b)(1) through (8) [(7)] and determine if a change in the accreditation status of the district is warranted. The commissioner may determine how all indicators adopted under Section 39.051(b) may be used to determine accountability ratings and to select districts and campuses for acknowledgment. (b) Each annual review shall include an analysis of the indicators under Sections 39.051(b)(1) through (8) [(6)] to determine district and campus performance in relation to: (1) standards established for each indicator; (2) required improvement as defined under Section 39.051(c); and (3) comparable improvement as defined by Section 39.051(c). SECTION 2.11. Section 39.074(e), Education Code, is amended to read as follows: (e) If an annual review indicates low performance on one or more of the indicators under Sections 39.051(b)(1) through (8) [(7)] of one or more campuses in a district, the agency may conduct an on-site evaluation of those campuses only. SECTION 2.12. Section 39.131, Education Code, is amended to read as follows: Sec. 39.131. SANCTIONS FOR DISTRICTS. (a) If a school district does not satisfy the accreditation criteria under Section 39.071, the academic performance standards under Section 39.072, or any financial accountability standard as determined by commissioner rule, the commissioner shall take any of the following actions[, listed in order of severity,] to the extent the commissioner determines necessary: (1) issue public notice of the deficiency to the board of trustees; (2) order a hearing conducted by the board of trustees of the district for the purpose of notifying the public of the unacceptable performance, the improvements in performance expected by the agency, and the sanctions that may be imposed under this section if the performance does not improve; (3) order the preparation of a student achievement improvement plan that addresses each academic excellence indicator for which the district's performance is unacceptable, the submission of the plan to the commissioner for approval, and implementation of the plan; (4) order a hearing to be held before the commissioner or the commissioner's designee at which the president of the board of trustees of the district and the superintendent shall appear and explain the district's low performance, lack of improvement, and plans for improvement; (5) arrange an on-site investigation of the district; (6) appoint an agency monitor to participate in and report to the agency on the activities of the board of trustees or the superintendent; (7) appoint a conservator to oversee the operations of the district; (8) appoint a management team to direct the operations of the district in areas of unacceptable performance or require the district to obtain certain services under a contract with another person; (9) if a district has a current accreditation status of accredited-warned or accredited-probation, is [been] rated [as] academically unacceptable, or fails to satisfy financial accountability standards as determined by commissioner rule [for a period of one year or more], appoint a board of managers to exercise the powers and duties of the board of trustees; (10) if for two consecutive school years, including the current school year, a district has received an accreditation status of accredited-warned or accredited-probation, has been rated academically unacceptable, or has failed to satisfy financial accountability standards as determined by commissioner rule, revoke the district's accreditation and [been rated as academically unacceptable for a period of two years or more]: (A) order closure of the district and annex the district to one or more adjoining districts under Section 13.054; or (B) in the case of a home-rule school district or open-enrollment charter school, order closure of all programs operated under the district's or school's charter; or (11) if a district has been rated [as] academically unacceptable for [a period of] two consecutive school years, including the current school year, [or more] due to the district's dropout rates, impose sanctions designed to improve high school completion rates, including: (A) ordering the development of a dropout prevention plan for approval by the commissioner; (B) restructuring the district or appropriate school campuses to improve identification of and service to students who are at risk of dropping out of school, as defined by Section 29.081; (C) ordering lower student-to-counselor ratios on school campuses with high dropout rates; and (D) ordering the use of any other intervention strategy effective in reducing dropout rates, including mentor programs and flexible class scheduling. (b) This subsection applies regardless of whether a district has satisfied the accreditation criteria. If for two consecutive school years, including the current school year, [a period of one year or more] a district has had a conservator or management team assigned, the commissioner may appoint a board of managers, a majority of whom must be residents of the district, to exercise the powers and duties of the board of trustees. SECTION 2.13. Section 39.132, Education Code, is amended to read as follows: Sec. 39.132. SANCTIONS FOR ACADEMICALLY UNACCEPTABLE AND CERTAIN OTHER CAMPUSES. [(a)] If a campus performance is below any standard under Section 39.073(b), the campus is considered an academically unacceptable [a low-performing] campus. The commissioner may permit the campus to participate in an innovative redesign of the campus to improve campus performance or shall [may] take any of the other following actions[, listed in order of severity], to the extent the commissioner determines necessary: (1) issue public notice of the deficiency to the board of trustees; (2) order a hearing conducted by the board of trustees at the campus for the purpose of: (A) notifying the public of the unacceptable performance, the improvements in performance expected by the agency, and the sanctions that may be imposed under this section if the performance does not improve within a designated period of time; and (B) soliciting public comment on the initial steps being taken to improve performance; (3) [order the preparation of a report regarding the parental involvement program at the campus and a plan describing strategies for improving parental involvement at the campus; [(4) order the preparation of a report regarding the effectiveness of the district- and campus-level planning and decision-making committees established under Subchapter F, Chapter 11, and a plan describing strategies for improving the effectiveness of those committees; [(5)] order the preparation of a student [achievement] improvement plan that addresses each academic excellence indicator for which the campus's performance is unacceptable, the submission of the plan to the commissioner for approval, and implementation of the plan; (4) [(6)] order a hearing to be held before the commissioner or the commissioner's designee at which the president of the board of trustees, the superintendent, and the campus principal shall appear and explain the campus's low performance, lack of improvement, and plans for improvement; (5) appoint a technical assistance team under Section 39.1321; or (6) appoint a campus intervention team under Section 39.1321. [(7) appoint a special campus intervention team to: [(A) conduct a comprehensive on-site evaluation of the campus to determine the cause for the campus's low performance and lack of progress; [(B) recommend actions, including reallocation of resources and technical assistance, changes in school procedures or operations, staff development for instructional and administrative staff, intervention for individual administrators or teachers, waivers from state statute or rule, or other actions the team considers appropriate; [(C) assist in the development of a campus plan for student achievement; and [(D) assist the commissioner in monitoring the progress of the campus in implementing the campus plan for improvement of student achievement; or [(8) if a campus has been a low-performing campus for a period of one year or more, appoint a board of managers composed of residents of the district to exercise the powers and duties of the board of trustees of the district in relation to the campus. [(b) If a campus has been a low-performing campus for a period of two consecutive years or more, the commissioner shall order the closure of the district or charter program on the campus or reconstitute the campus. In reconstituting the campus, a special campus intervention team shall be assembled for the purpose of deciding which educators may be retained at that campus. If an educator is not retained, the educator may be assigned to another position in the district.] SECTION 2.14. Subchapter G, Chapter 39, Education Code, is amended by adding Sections 39.1321, 39.1322, 39.1323, 39.1325, and 39.1326 to read as follows: Sec. 39.1321. TECHNICAL ASSISTANCE AND CAMPUS INTERVENTION TEAMS. (a) If a campus is rated academically acceptable for the current school year but would be rated as academically unacceptable if performance standards to be used for the following school year were applied to the current school year, the commissioner shall select and assign a technical assistance team to assist the campus in executing a school improvement plan and any other school improvement strategies the commissioner determines appropriate. The commissioner may waive the requirement to assign a technical assistance team under this subsection if the improvement in performance standards among all student groups, including special populations, over the preceding three years indicates that the campus is likely to be rated academically acceptable in the following school year. (b) If a campus has been identified as academically unacceptable under Section 39.132, the commissioner shall appoint a campus intervention team. (c) To the extent practicable, the commissioner shall select and assign the technical assistance team under Subsection (a) or the campus intervention team under Subsection (b) before the first day of instruction for the school year. (d) The commissioner may determine when the services of a technical assistance team or campus intervention team are no longer needed at a campus under this section. Sec. 39.1322. CAMPUS INTERVENTION TEAM PROCEDURES. (a) A campus intervention team shall: (1) conduct a comprehensive on-site evaluation of the campus to determine the cause for the campus's low performance and lack of progress; (2) recommend actions, including reallocation of resources and technical assistance, changes in school procedures or operations, staff development for instructional and administrative staff, intervention for individual administrators or teachers, waivers from state statute or rule, or other actions the team considers appropriate; (3) assist in the development of a school improvement plan for student achievement; and (4) assist the commissioner in monitoring the progress of the campus in implementing the school improvement plan for improvement of student achievement. (b) A campus intervention team assigned under Section 39.1321 to a campus shall conduct a comprehensive on-site evaluation of the campus to determine the cause for the campus's low performance and lack of progress. The team shall have wide latitude to determine what factors to assess and how to conduct the assessment. (c) On completing the evaluation under this section, the campus intervention team shall recommend actions, including: (1) reallocation of resources; (2) distribution of additional funds to the campus from funds set aside by the agency for purposes of assisting campuses in meeting standards specified in the intervention plan; (3) technical assistance; (4) changes in school procedures or operations; (5) staff development for instructional and administrative staff; (6) intervention for individual administrators or teachers; (7) waivers from state statutes or rules; or (8) other actions the campus intervention team considers appropriate. (d) In executing a school improvement plan developed under Subsection (a)(3), the campus intervention team shall: (1) assist the campus in implementing research-based practices for curriculum development and classroom instruction, including bilingual education and special education programs, if appropriate, and financial management; (2) provide research-based technical assistance, including data analysis, academic deficiency identification, intervention implementation, and budget analysis, to strengthen and improve the instructional programs at the campus; and (3) submit the school improvement plan to the commissioner for approval. (e) A campus intervention team appointed under Section 39.1321(b): (1) shall continue to work with a campus until: (A) the campus is rated academically acceptable for a two-year period; or (B) the campus is rated academically acceptable for a one-year period and the commissioner determines that the campus is operating and will continue to operate in a manner that improves student achievement; and (2) may continually update the school improvement plan, with approval from the commissioner, to meet the needs of the campus. (f) Notwithstanding any other provision of this subchapter, if the commissioner determines that a campus for which an intervention is ordered under Section 39.1321(b) is not fully implementing the campus intervention team's recommendations or school improvement plan, the commissioner may order the reconstitution of the campus, pursue alternative management of the campus as provided by Section 39.1326, or order closure of the campus. Sec. 39.1323. MANDATORY SANCTIONS. (a) If a campus has been identified as academically unacceptable for two consecutive school years, including the current school year, the commissioner shall order the reconstitution of the campus and assign a campus intervention team. In reconstituting the campus, a campus intervention team shall assist the campus in: (1) developing a school improvement plan; (2) obtaining approval of the plan from the commissioner; and (3) executing the plan on approval by the commissioner. (b) The campus intervention team shall decide which educators may be retained at that campus. A principal who has been employed by the campus in that capacity during the full two-year period described by Subsection (a) may not be retained at that campus. A teacher of a subject assessed by an assessment instrument under Section 39.023 may be retained only if the campus intervention team determines that a pattern exists of significant academic improvement by students taught by the teacher. If an educator is not retained, the educator may be assigned to another position in the district. (c) A campus subject to Subsection (a) shall implement the school improvement plan as approved by the commissioner. The commissioner may appoint a monitor, conservator, management team, or a board of managers to the district to ensure and oversee the implementation of the school improvement plan. (d) Notwithstanding any other provision of this subchapter, if the commissioner determines that a campus subject to Subsection (a) is not fully implementing the school improvement plan, the commissioner may pursue alternative management of the campus as under Section 39.1326 or may order closure of the campus. (e) If a campus is considered an academically unacceptable campus for more than two consecutive school years, the commissioner may order reconstitution or closure of the campus or pursue alternative management under Section 39.1326. (f) If a campus is considered an academically unacceptable campus for the subsequent school year after the campus is reconstituted under this section, the commissioner shall review the progress of the campus and may pursue alternative management under Section 39.1326. (g) If a campus is considered academically unacceptable for two consecutive school years after the campus is reconstituted under this section, the commissioner shall order closure of the campus or pursue alternative management under Section 39.1326. Sec. 39.1325. TRANSITIONAL SANCTIONS PROVISIONS. For the 2006-2007 school year, the commissioner shall assign a campus intervention team or a technical assistance team to a campus under Section 39.1321 on the basis of academic performance ratings for the 2005-2006 school year. The commissioner may impose a sanction on a campus under Section 39.1322(f) or 39.1323(a) or (e) on the basis of academic performance ratings for the 2005-2006 school year and the 2006-2007 school year. A sanction ordered by the commissioner before July 1, 2006, shall remain in effect for the 2006-2007 school year. The commissioner may allow a principal subject to Section 39.1323(b) to remain at a campus for the 2006-2007 school year. This section expires September 1, 2008. Sec. 39.1326. MANAGEMENT OF CERTAIN ACADEMICALLY UNACCEPTABLE CAMPUSES. (a) A campus may be subject to this section if the campus has been identified as academically unacceptable under Section 39.132 and the commissioner orders alternative management under Section 39.1323(e) or (f). (b) The commissioner shall solicit proposals from qualified nonprofit entities to assume management of a campus subject to this section. (c) If the commissioner determines that the basis for identifying a campus as academically unacceptable is limited to a specific condition that may be remedied with targeted technical assistance, the commissioner may: (1) provide the campus a one-year waiver under this section; and (2) require the district to contract for the appropriate technical assistance. (d) The commissioner may annually solicit proposals under this section for the management of a campus subject to this section. The commissioner shall notify a qualified nonprofit entity that has been approved as a provider under this section. The district must execute a contract with an approved provider and relinquish control of the campus before January 1 of the school year. (e) To qualify for consideration as a managing entity under this section, the entity must submit a proposal that provides information relating to the entity's management and leadership team that will participate in management of the campus under consideration, including information relating to individuals that have: (1) documented success in whole school interventions that increased the educational and performance levels of students in academically unacceptable campuses; (2) a proven record of effectiveness with programs assisting low-performing students; (3) a proven ability to apply research-based school intervention strategies; (4) a proven record of financial ability to perform under the management contract; and (5) any other experience or qualifications the commissioner determines necessary. (f) In selecting a managing entity under this section, the commissioner shall give preference to a nonprofit entity that: (1) meets any qualifications under this section; and (2) has documented success in educating students from similar demographic groups and with similar educational needs as the students who attend the campus that is to be operated by a managing entity under this section. (g) The school district may negotiate the term of a management contract for not more than five years with an option to renew the contract. The management contract must include a provision describing the district's responsibilities in supporting the operation of the campus. The commissioner shall approve the contract before the contract is executed and, as appropriate, may require the district, as a term of the contract, to support the campus in the same manner as the district was required to support the campus before the execution of the management contract. (h) A management contract under this section shall include provisions approved by the commissioner that require the managing entity to demonstrate improvement in campus performance, including negotiated performance measures. The performance measures must be consistent with the priorities of this chapter. The commissioner shall evaluate a managing entity's performance on the first and second anniversaries of the date of the management contract. If the evaluation fails to demonstrate improvement as negotiated under the contract by the first anniversary of the date of the management contract, the district may terminate the management contract, with the commissioner's consent, for nonperformance or breach of contract and select another provider from an approved list provided by the commissioner. If the evaluation fails to demonstrate significant improvement, as determined by the commissioner, by the second anniversary of the date of the management contract, the district shall terminate the management contract and select another provider from an approved list provided by the commissioner or resume operation of the campus if approved by the commissioner. If the commissioner approves the district's operation of the campus, the commissioner shall assign a technical assistance team to assist the campus. (i) Notwithstanding any other provision of this code, the funding for a campus operated by a managing entity must be not less than the funding of the other campuses in the district on a per student basis so that the managing entity receives at least the same funding the campus would otherwise have received. (j) Each campus operated by a managing entity under this section is subject to this chapter in the same manner as any other campus in the district. (k) The commissioner may adopt rules necessary to implement this section. (l) With respect to the management of a campus under this section: (1) a managing entity is considered to be a governmental body for purposes of Chapters 551 and 552, Government Code; and (2) any requirement in Chapter 551 or 552, Government Code, that applies to a school district or the board of trustees of a school district applies to a managing entity. SECTION 2.15. Subchapter G, Chapter 39, Education Code, is amended by adding Sections 39.1331 and 39.1332 to read as follows: Sec. 39.1331. ACQUISITION OF PROFESSIONAL SERVICES. In addition to other sanctions authorized under Sections 39.131 and 39.132, the commissioner may order a school district or campus to acquire professional services at the expense of the district or campus to address the applicable financial, assessment, data quality, program, or governance deficiency. The commissioner's order may require the district or campus to: (1) select an external auditor, data quality expert, professional authorized to monitor district assessment instrument administration, or curriculum or program expert; or (2) provide for the appropriate training of district staff or board of trustees members in the case of a district, or campus staff, in the case of a campus. Sec. 39.1332. FINALITY OF DECISION BY COMMISSIONER. (a) A school district or open-enrollment charter school that wishes to challenge a decision to impose a sanction under this subchapter, including a decision to close a district, school, or campus, must petition for an informal review as provided by Section 7.0571. (b) A final decision by the commissioner to impose a sanction under this subchapter, including a decision to close a school district or a campus, following a review under Section 7.0571 is final and may not be appealed. (c) A school district may not collaterally contest an academic performance rating or other accreditation standard as part of the review of a sanction under this subchapter if a review opportunity has already been provided for the academic performance rating. SECTION 2.16. Section 39.134, Education Code, is amended to read as follows: Sec. 39.134. COSTS PAID BY DISTRICT. The costs of providing a monitor, conservator, management team, [or special] campus intervention team, technical assistance team, managing entity under Section 39.1326, or service provider under Section 39.1331 shall be paid by the district. If the district fails or refuses to pay the costs in a timely manner, the commissioner may: (1) pay the costs using amounts withheld from any funds to which the district is otherwise entitled; or (2) recover the amount of the costs in the manner provided for recovery of an overallocation of state funds under Section 42.258. SECTION 2.17. (a) Not later than the 2007-2008 school year, the Texas Education Agency shall collect information concerning: (1) the measure of progress toward preparation for postsecondary success for purposes of Section 39.051(b)(13), Education Code, as added by this Act; and (2) the measure of progress toward English language proficiency for purposes of Section 39.051(b)(14), Education Code, as added by this Act. (b) Not later than the 2008-2009 school year, the Texas Education Agency shall include, in evaluating the performance of school districts, campuses, and open-enrollment charter schools under Subchapter D, Chapter 39, Education Code: (1) the measure of progress toward preparation for postsecondary success under Section 39.051(b)(13), Education Code, as added by this Act; and (2) the measure of progress toward English language proficiency under Section 39.051(b)(14), Education Code, as added by this Act.
ARTICLE 3. SCHOOL DISTRICT EFFICIENCY
SECTION 3.01. Subchapter A, Chapter 11, Education Code, is amended by adding Section 11.003 to read as follows: Sec. 11.003. ADMINISTRATIVE EFFICIENCY. (a) Not later than December 1, 2006, the commissioner shall evaluate the feasibility of including a uniform indicator under Section 39.202(b) that measures effective administrative management through the use of cooperative shared services arrangements. If the commissioner determines that the adoption of a uniform indicator described by this subsection is feasible, the commissioner by rule shall include the indicator in the financial accountability rating system under Subchapter I, Chapter 39, for school districts beginning with the 2007-2008 school year. This subsection expires September 1, 2009. (b) Each regional education service center shall: (1) notify each school district served by the center regarding the opportunities available through the center for cooperative shared services arrangements within the center's service area; and (2) evaluate the need for cooperative shared services arrangements within the center's service area and consider expanding center-sponsored cooperative shared services arrangements. (c) Each regional education service center shall assist a school district board of trustees in entering into an agreement with another district or political subdivision, a regional education service center, or an institution of higher education as defined by Section 61.003, for a cooperative shared services arrangement regarding administrative services, including transportation, food service, purchasing, and payroll functions. (d) The commissioner may require a district or an open-enrollment charter school to enter into an agreement for a cooperative shared services arrangement if the commissioner determines that the financial management performance of the district or school is unsatisfactory. SECTION 3.02. Subchapter A, Chapter 44, Education Code, is amended by adding Section 44.0041 to read as follows: Sec. 44.0041. PUBLICATION OF SUMMARY OF PROPOSED BUDGET. (a) Concurrently with the publication of notice of the budget under Section 44.004, a school district shall post a summary of the proposed budget: (1) on the school district's Internet website; or (2) if the district has no Internet website, in the district's central administrative office. (b) The budget summary must include: (1) information relating to per student and aggregate spending on: (A) instruction; (B) instructional support; (C) central administration; (D) district operations; (E) debt service; and (F) any other category designated by the commissioner; and (2) a comparison to the previous year's actual spending. SECTION 3.03. Subchapter A, Chapter 44, Education Code, is amended by adding Section 44.0061 to read as follows: Sec. 44.0061. REVIEW OF ACCOUNTING SYSTEM. (a) The commissioner shall contract with a qualified third-party contractor to conduct a comprehensive review of the accounting systems used by school districts under Section 44.007. (b) The third-party contractor conducting the review under this section shall: (1) provide any recommendations relating to the accounting systems to: (A) improve the transparency of district spending behavior; (B) provide more thorough information relating to campus spending; and (C) facilitate program evaluations, including evaluations of compensatory education programs; and (2) evaluate the accounting systems to determine whether any reporting requirements should be adjusted based on district size. (c) Before January 1, 2007, the commissioner shall submit a report to the legislature describing the results of the review conducted under this section. (d) This section expires January 2, 2007. SECTION 3.04. Section 44.007(b), Education Code, is amended to read as follows: (b) The accounting system must meet at least the minimum requirements prescribed by the commissioner [State Board of Education], subject to review and comment by the state auditor. SECTION 3.05. The Texas Education Agency shall study the level of use of shared services arrangements by school districts in this state. Before January 1, 2007, the agency shall submit a report to the legislature describing the current status of shared services arrangements and identify any legal impediments restricting school districts from participating in those arrangements.
ARTICLE 4. EDUCATION EMPLOYEES
SECTION 4.01. Subchapter E, Chapter 11, Education Code, is amended by adding Section 11.203 to read as follows: Sec. 11.203. SCHOOL LEADERSHIP PILOT PROGRAM FOR PRINCIPALS. (a) The agency shall develop and implement a school leadership pilot program for principals in cooperation with a nonprofit corporation that has substantial experience in developing best practices to improve leadership skills, student achievement, student graduation rates, and teacher retention. (b) The agency shall consult business schools, departments, or programs at institutions of higher education to develop program course work that focuses on management and business training. (c) A principal or a person interested in becoming a principal may apply for participation in the program, in a form and manner determined by the commissioner. (d) A principal of a campus rated academically unacceptable, as well as any person employed to replace that principal, shall participate in the program and complete the program requirements not later than a date determined by the commissioner. (e) To pay the costs of administering the program, the commissioner shall retain a portion of the total amount of funds allotted under the Foundation School Program that the commissioner considers appropriate to finance activities under this section and shall reduce the total amount of state funds allocated to each district from any source in the same manner described for a reduction in allotments under Section 42.253. (e-1) For the state fiscal biennium beginning September 1, 2005, the amount set aside under Subsection (e) may not exceed $3.6 million. This subsection expires August 31, 2007. (f) To implement and administer the program, the commissioner may accept grants, gifts, and donations from public and private entities. (g) The commissioner may adopt rules necessary to administer this section. (h) During the first semester of the 2008-2009 school year, the agency shall evaluate the effectiveness of the program in developing and enhancing the ability of principals participating in the program to provide school leadership and improve student achievement and graduation rates and teacher retention. Not later than January 1, 2009, the agency shall submit a report explaining the results of the study to the governor, lieutenant governor, speaker of the house of representatives, and the presiding officers of the standing committees of each house of the legislature with primary jurisdiction over public education. (i) This section expires September 1, 2010. SECTION 4.02. Subchapter D, Chapter 12, Education Code, is amended by adding Section 12.133 to read as follows: Sec. 12.133. WAGE INCREASE FOR CERTAIN PROFESSIONAL STAFF. (a) This section applies to a charter holder that on January 1, 2006, operated an open-enrollment charter school. (b) For the 2006-2007 school year, using state funds received by the charter holder for that purpose under Subsection (d), a charter holder that participated in the program under Chapter 1579, Insurance Code, for the 2005-2006 school year shall provide employees of the charter holder, other than administrators, compensation in the form of annual salaries, incentives, or other compensation determined appropriate by the charter holder that results in average compensation increases as follows: (1) for classroom teachers, full-time librarians, full-time counselors, and full-time school nurses who are employed by the charter holder and who would be entitled to a minimum salary under Section 21.402 if employed by a school district, an average increase at least equal to $2,500; (2) for full-time employees other than employees described by Subdivision (1), an average increase at least equal to $500; and (3) for part-time employees, an average increase at least equal to $250. (c) For the 2006-2007 school year, using state funds received by the charter holder for that purpose under Subsection (e), a charter holder that did not participate in the program under Chapter 1579, Insurance Code, for the 2005-2006 school year shall provide employees of the charter holder, other than administrators, compensation in the form of annual salaries, incentives, or other compensation determined appropriate by the charter holder that results in an average compensation increase for classroom teachers, full-time librarians, full-time counselors, and full-time school nurses who are employed by the charter holder and who would be entitled to a minimum salary under Section 21.402 if employed by a school district, in an amount at least equal to $2,000. (d) For the 2006-2007 school year, in addition to any amounts to which a charter holder is entitled under this chapter, a charter holder that participated in the program under Chapter 1579, Insurance Code, for the 2005-2006 school year is entitled to state aid in an amount, as determined by the commissioner, equal to the sum of: (1) the product of $2,500 multiplied by the number of classroom teachers, full-time librarians, full-time counselors, and full-time school nurses employed by the charter holder at an open-enrollment charter school; (2) the product of $500 multiplied by the number of full-time employees other than employees described by Subdivision (1); and (3) the product of $250 multiplied by the number of part-time employees. (e) For the 2006-2007 school year, in addition to any amounts to which a charter holder is entitled under this chapter, a charter holder that did not participate in the program under Chapter 1579, Insurance Code, for the 2005-2006 school year is entitled to state aid in an amount, as determined by the commissioner, equal to the product of $2,000 multiplied by the number of classroom teachers, full-time librarians, full-time counselors, and full-time school nurses employed by the charter holder at an open-enrollment charter school. (f) A payment under this section is in addition to wages the charter holder would otherwise pay the employee during the school year. (g) This section expires September 1, 2007. SECTION 4.03. Section 21.402, Education Code, is amended by amending Subsections (a), (c), and (d) and adding Subsections (c-1) and (c-2) to read as follows: (a) Except as provided by Subsection (d), (e), or (f), a school district must pay each classroom teacher, full-time librarian, full-time counselor certified under Subchapter B, or full-time school nurse not less than the minimum monthly salary, based on the employee's level of experience or other factors, as determined by commissioner rule, determined by the following formula:
MS = SF x FS
where: "MS" is the minimum monthly salary; "SF" is the applicable salary factor specified by Subsection (c); and "FS" is the amount, as determined by the commissioner under Subsection (b), of state and local funds per weighted student available to a district eligible to receive state assistance under Section 42.302 with an enrichment tax rate, as defined by Section 42.302, equal to the maximum rate authorized under Section 42.303, except that the amount of state and local funds per weighted student does not include the amount attributable to the increase in the guaranteed level made by Chapter 1187 [H.B. No. 3343], Acts of the 77th Legislature, Regular Session, 2001. (c) The salary factors per step are as follows: YearsExperience 0 1 2 3 4 SalaryFactor .6226 [.5656] .6360 [.5790] .6492 [.5924] .6627 [.6058] .6909 [.6340] YearsExperience 5 6 7 8 9 SalaryFactor .7192 [.6623] .7474 [.6906] .7737 [.7168] .7985 [.7416] .8220 [.7651] YearsExperience 10 11 12 13 14 SalaryFactor .8441 [.7872] .8650 [.8082] .8851 [.8281] .9035 [.8467] .9213 [.8645] YearsExperience 15 16 17 18 19 SalaryFactor .9380 [.8811] .9539 [.8970] .9687 [.9119] .9828 [.9260] .9963 [.9394] YearsExperience 20 andover SalaryFactor 1.009 [.9520] (c-1) Notwithstanding Subsection (a), for the 2006-2007 school year, a classroom teacher, full-time librarian, full-time counselor certified under Subchapter B, or full-time school nurse is entitled to a monthly salary that is at least equal to the sum of: (1) the monthly salary the employee would have received for the 2006-2007 school year under the district's salary schedule for the 2005-2006 school year, if that schedule had been in effect for the 2006-2007 school year, including any local supplement and any money representing a career ladder supplement the employee would have received in the 2006-2007 school year; and (2) $250. (c-2) Subsection (c-1) and this subsection expire September 1, 2007. (d) A classroom teacher, full-time librarian, full-time counselor certified under Subchapter B, or full-time school nurse employed by a school district in the 2006-2007 [2000-2001] school year is, as long as the employee is employed by the same district, entitled to a salary that is at least equal to the salary the employee received for the 2006-2007 [2000-2001] school year. SECTION 4.04. Subchapter I, Chapter 21, Education Code, is amended by adding Section 21.415 to read as follows: Sec. 21.415. EMPLOYMENT CONTRACTS. (a) A school district shall provide in employment contracts that qualifying employees may receive an incentive payment under an awards program established under Subchapter N or O if the district participates in the program. (b) The district shall indicate that any incentive payment distributed is considered a payment for performance and not an entitlement as part of an employee's salary. SECTION 4.05. Subchapter J, Chapter 21, Education Code, is amended by adding Section 21.458 to read as follows: Sec. 21.458. MENTORS. (a) Each school district may assign a mentor teacher to each classroom teacher who has less than two years of teaching experience. A teacher assigned as a mentor must: (1) teach in the same school; (2) to the extent practicable, teach the same subject or grade level, as applicable; and (3) meet the qualifications prescribed by commissioner rules adopted under Subsection (b). (b) The commissioner shall adopt rules necessary to administer this section, including rules concerning the duties and qualifications of a teacher who serves as a mentor. The rules concerning qualifications must require that to serve as a mentor a teacher must: (1) complete a research-based mentor and induction training program approved by the commissioner; (2) complete a mentor training program provided by the district; and (3) have at least three complete years of teaching experience with a superior record of assisting students, as a whole, in achieving improvement in student performance. (c) From the funds appropriated to the agency for purposes of this section, the commissioner shall adopt rules and provide funding to school districts that assign mentor teachers under this section. Funding provided to districts under this section may be used only for providing: (1) mentor teacher stipends; (2) scheduled time for mentor teachers to provide mentoring to assigned classroom teachers; and (3) mentoring support through providers of mentor training. (d) In adopting rules under Subsection (c), the commissioner shall rely on research-based mentoring programs that, through external evaluation, have demonstrated success. SECTION 4.06. Chapter 21, Education Code, is amended by adding Subchapters N and O to read as follows:
SUBCHAPTER N. AWARDS FOR STUDENT ACHIEVEMENT PROGRAM
Sec. 21.651. DEFINITION. In this subchapter, "program" means the awards for student achievement program. Sec. 21.652. ESTABLISHMENT OF PROGRAM. (a) The commissioner by rule shall establish an awards for student achievement program under which an eligible campus may receive a grant from the agency in the manner provided by this subchapter. (b) In establishing the program, the commissioner shall adopt program guidelines in accordance with this subchapter for a campus to follow in developing a campus incentive plan under Section 21.654. Sec. 21.653. CAMPUS ELIGIBILITY. (a) Except as provided by Subsection (b), a campus is eligible to apply for and may receive a program grant if the campus: (1) is ranked by the agency in the top half of this state's elementary school campuses, middle or junior high school campuses, high school campuses, or campuses for students of all grade levels, as applicable, in the percentage of educationally disadvantaged students enrolled at the campus; and (2) is rated exemplary or recognized under Section 39.072 or ranked in the top quartile of campuses in comparable improvement, as defined by Section 39.051(c), in mathematics or reading. (b) This subsection applies only to a registered alternative education campus that has a student enrollment of at least 30 students and is rated under alternative education accountability procedures. A campus to which this subsection applies is eligible to apply for and may receive a program grant if the campus is ranked by the agency in the top third of elementary school campuses, middle or junior high school campuses, high school campuses, or campuses for students of all grade levels, as applicable, in the percentage of educationally disadvantaged students enrolled at the campus who perform successfully, as determined under Section 39.024, on assessment instruments administered under Section 39.023. Sec. 21.654. CAMPUS INCENTIVE PLAN. (a) A campus-level decision-making body, such as the campus-level planning and decision-making committee established under Subchapter F, Chapter 11, for each eligible campus that intends to participate in the program shall develop a campus incentive plan for the campus that: (1) is designed to reward teachers who have a positive impact on improving student achievement; (2) meets all program guidelines adopted by the commissioner under Section 21.652; and (3) describes how grant funds will be distributed. (b) A district-level committee, such as the district-level planning and decision-making committee established under Subchapter F, Chapter 11: (1) must approve the campus incentive plan developed under Subsection (a) before the plan is submitted to the agency; and (2) shall approve the plan if the district-level committee determines that the plan meets program guidelines adopted by the commissioner under Section 21.652. (c) A school district shall, on behalf of an eligible campus, submit a campus incentive plan to the agency for approval. The plan must be submitted together with: (1) evidence of significant classroom teacher involvement in the development of the plan presented through the campus-level decision-making body's meeting attendance records or minutes or other appropriate means; (2) letters from at least three classroom teachers assigned to the eligible campus describing the teachers' support for and involvement in developing the plan; and (3) evidence that the plan: (A) has been made available for public viewing; and (B) has been presented to the public at a regularly scheduled board of trustees meeting or will be presented at a regularly scheduled board meeting on a date specified, as applicable. (d) The agency may approve only a campus incentive plan that meets program guidelines adopted by the commissioner under Section 21.652 and satisfies this section. The agency may negotiate with a school district to ensure that activities proposed in the campus incentive plan the district submits meet program guidelines. Sec. 21.655. AMOUNT OF PROGRAM GRANT AWARD. (a) Each eligible campus whose campus incentive plan is approved by the agency under Section 21.654 is entitled to a grant award in an amount determined by the commissioner. (b) Grants from funds appropriated for the program shall be awarded beginning with the 2006-2007 school year and may not exceed $100 million in the 2006-2007 school year except as expressly authorized by the General Appropriations Act or other law. This subsection expires September 1, 2007. Sec. 21.656. INCENTIVE PAYMENTS TO CLASSROOM TEACHERS. (a) An eligible campus must use 75 percent of a grant award received under Section 21.655 to provide incentive payments to classroom teachers assigned to the campus. To the extent practicable, the campus shall pay a classroom teacher an incentive payment in an amount of not less than $3,000 or more than $10,000. (b) In distributing incentive payments to classroom teachers under this section, an eligible campus: (1) may distribute an incentive payment only to a classroom teacher who: (A) demonstrates success in improving student achievement using objective, quantifiable measures, such as local benchmarking systems, portfolio assessments, end-of-course assessments, and value-added assessments; and (B) successfully collaborates with other faculty and with staff in a manner that contributes to improving overall student achievement at the campus; and (2) may consider a classroom teacher's: (A) assignment to teach a subject that: (i) has been designated by the commissioner as a subject historically experiencing a critical shortage of teachers or a high teacher turnover rate; or (ii) is a subject for which the district in which the campus is located has a shortage of teachers; or (B) demonstration of ongoing initiative, commitment, professionalism, and involvement in an activity that directly results in improved student achievement, including working with students outside of assigned class hours, creating a program that involves parents, and personalizing the learning environment for each student. Sec. 21.657. DISTRIBUTION OF OTHER PROGRAM FUNDS. (a) An eligible campus must use 25 percent of a grant award received under Section 21.655 to provide for: (1) incentive payments to campus employees other than classroom teachers, such as principals, assistant principals, teachers who are not eligible for an incentive payment under Section 21.656, counselors, speech therapists, instructional coaches, teacher's aides, nurses, librarians, members of the custodial staff, or other campus employees who have contributed to improved student achievement; (2) professional development for classroom teachers who: (A) do not receive an incentive payment under Section 21.656; and (B) would benefit from professional development to develop or enhance skills and behaviors described under Section 21.656(b); (3) reimbursement or funding for a professional development activity that directly contributes to improved classroom instruction and student achievement; (4) signing bonuses for classroom teachers new to the campus who are teaching subjects that have been designated by the commissioner as historically experiencing a critical shortage of teachers; (5) a teacher mentoring program that meets the requirements of Section 21.458; (6) an activity that supports new teacher induction programs, including: (A) common planning time and collaboration; (B) a professional development activity; and (C) standards-based evaluations; (7) an activity that supports common planning time and curriculum development; (8) a program that has been proven to recruit and retain highly effective teachers; (9) an activity that creates or furthers the goals of an incentive system designed to improve student achievement; (10) stipends for teachers who participate in an after-school or Saturday program that directly contributes to improved classroom instruction and student achievement; (11) additional funding for feeder campuses that, because they are not assigned performance ratings under Chapter 39, do not qualify to participate in the program, such as campuses that serve kindergarten through grade two, to implement an activity described by this section; and (12) any other program that directly contributes to improved student achievement. (b) A campus may not use any of a grant award received under Section 21.655 to provide for an incentive payment to an employee whose primary responsibility, as determined in accordance with commissioner rule, is supervision of an athletic activity. Sec. 21.658. RULES. The commissioner shall adopt rules necessary to administer this subchapter.
SUBCHAPTER O. EDUCATOR EXCELLENCE AWARDS PROGRAM
Sec. 21.701. DEFINITION. In this subchapter, "program" means the educator excellence awards program. Sec. 21.702. EDUCATOR EXCELLENCE AWARDS PROGRAM. (a) The commissioner by rule shall establish an educator excellence awards program under which school districts, in accordance with local awards plans approved by the commissioner, receive program grants from the agency for the purpose of providing awards to district employees in the manner provided by Section 21.705. (b) In establishing the program, the commissioner shall adopt program guidelines in accordance with this subchapter for a school district to follow in developing a local awards plan under Section 21.704. Sec. 21.703. EDUCATOR EXCELLENCE FUND; AMOUNT OF GRANT AWARD. (a) Each state fiscal year, the commissioner shall deposit the sum of $1,000 multiplied by the number of classroom teachers in this state to the credit of the educator excellence fund in the general revenue fund. Each state fiscal year, the agency shall use: (1) not more than $100 million of the funds in the educator excellence fund to provide grant awards under the awards for student achievement program established under Subchapter N; and (2) any remaining funds in the educator excellence fund to provide a qualifying school district a grant in an amount determined by: (A) dividing the amount of remaining money available for distribution in the educator excellence fund by the total number of students in average daily attendance in qualifying districts for that fiscal year; and (B) multiplying the amount determined under Paragraph (A) by the number of students in average daily attendance in the district. (b) Subsection (a) applies beginning with the state fiscal year beginning September 1, 2008. In the state fiscal year beginning September 1, 2007, the commissioner shall deposit $840 multiplied by the number of classroom teachers in this state to the credit of the educator excellence fund in the general revenue fund. The agency shall use: (1) not more than $100 million of the funds in the educator excellence fund to provide grant awards under the awards for student achievement program established under Subchapter N; and (2) any remaining funds in the educator excellence fund to provide a qualifying school district a grant in an amount determined by: (A) dividing the amount of remaining money available for distribution in the educator excellence fund by the total number of students in average daily attendance in qualifying districts for that fiscal year; and (B) multiplying the amount determined under Paragraph (A) by the number of students in average daily attendance in the district. (c) Subsection (b) and this subsection expire September 1, 2008. Sec. 21.704. LOCAL AWARDS PLANS. (a) A district-level committee for a school district that intends to participate in the program, such as the district-level planning and decision-making committee established under Subchapter F, Chapter 11, shall develop a local awards plan for the district. The local awards plan may provide for all campuses in the district to participate in the program or only certain campuses selected by the district-level committee. A majority of classroom teachers assigned to a campus that is selected by the district-level committee to participate in the program must approve participation to be included in the local awards plan. (b) If appropriate, the district-level committee may use a campus incentive plan developed for a campus in the district under Subchapter N in whole or in part as part of the local awards plan submitted under this section. Notwithstanding Section 21.705, the commissioner by rule shall allow a campus that receives funding under Subchapter N and that is included in a district's local awards plan under this section to use grant funds received under this subchapter as additional money to be spent in the manner provided by Subchapter N. (c) A school district shall submit a local awards plan to the agency for approval. The plan must be submitted together with evidence of significant teacher involvement in the development of the plan. (d) The agency may approve only a local awards plan that meets program guidelines adopted by the commissioner under Section 21.702 and that satisfies this section and Section 21.705. (e) The agency shall make model local awards plans available to school districts that wish to participate in the program. (f) A school district whose local awards plan is approved by the agency to receive a program grant under this subchapter may renew the plan for three consecutive school years without resubmitting the plan to the agency for approval. A school district may amend a local awards plan for approval by the agency for each school year the district receives a program grant. Sec. 21.705. AWARD PAYMENTS. A school district must use at least 60 percent of grant funds awarded to the district under this subchapter to directly award classroom teachers who effectively improve student achievement as determined by meaningful, objective measures. The remaining funds must be used only to: (1) provide stipends to effective mentors or teacher coaches; (2) provide stipends to classroom teachers who are certified in a subject that is designated by the commissioner as commonly experiencing a critical shortage of teachers; (3) provide stipends to classroom teachers with proven records of success for improving student performance who are assigned to campuses at which the district has experienced difficulty assigning or retaining teachers; (4) provide awards to principals who effectively increase student performance as determined by objective measures; (5) provide awards to other campus employees who demonstrate excellence; or (6) implement the components of a Teacher Advancement Program (TAP), including: (A) an instructionally focused accountability system; and (B) the adjustment of teaching schedules to permit ongoing applied professional growth. Sec. 21.706. RULES. The commissioner shall adopt rules necessary to administer this subchapter. SECTION 4.07. Subchapter D, Chapter 22, Education Code, as added by Chapters 899 and 1359, Acts of the 79th Legislature, Regular Session, 2005, is reenacted and amended to read as follows:
SUBCHAPTER D. HEALTH CARE [COMPENSATION] SUPPLEMENTATION
Sec. 22.101. DEFINITIONS. In this subchapter: (1) "Cafeteria plan" means a plan as defined and authorized by Section 125, Internal Revenue Code of 1986. (2) "Employee" means an active, contributing member of the Teacher Retirement System of Texas who: (A) is employed by a district, other educational district whose employees are members of the Teacher Retirement System of Texas, participating charter school, or regional education service center; (B) is not a retiree eligible for coverage under the program established under Chapter 1575, Insurance Code; (C) is not eligible for coverage by a group insurance program under Chapter 1551 or 1601, Insurance Code; and (D) is not an individual performing personal services for a district, other educational district that is a member of the Teacher Retirement System of Texas, participating charter school, or regional education service center as an independent contractor. (3) "Participating charter school" means an open-enrollment charter school established under Subchapter D, Chapter 12, that participates in the program established under Chapter 1579, Insurance Code. (4) "Regional education service center" means a regional education service center established under Chapter 8. Sec. 22.102. AUTHORITY TO ADOPT RULES; OTHER AUTHORITY. (a) The agency may adopt rules to implement this subchapter. (b) The agency may enter into interagency contracts with any other agency of this state for the purpose of assistance in implementing this subchapter. Sec. 22.103. DESIGNATION OF COMPENSATION AS HEALTH CARE SUPPLEMENTATION. (a) An employee of a school [ELIGIBILITY; WAITING PERIOD. A person is not eligible for a monthly distribution under this subchapter before the 91st day after the first day the person becomes an employee. [Sec. 22.104. DISTRIBUTION BY AGENCY. Subject to the availability of funds, each month the agency shall deliver to each] district, [including a district that is ineligible for state aid under Chapter 42, each] other educational district that is a member of the Teacher Retirement System of Texas, [each] participating charter school, or [and each] regional education service center may elect to designate a portion of the employee's compensation to be used as health care supplementation under this subchapter. (b) The amount designated under this section may not exceed the amount permitted under applicable federal law. (c) This section does not apply to: (1) an employee who is not covered by a cafeteria plan or who is not eligible to pay health care premiums through a premium conversion plan; or (2) an administrator, as defined by the trustee, employed by a school district, another educational district, a participating charter school, or a regional education service center [state funds in an amount, as determined by the agency, equal to the product of the number of eligible employees employed by the district, school, or service center multiplied by the amount specified in the General Appropriations Act for purposes of this subchapter and divided by 12. The agency shall distribute funding to only one entity for employees who are employed by more than one entity listed in this section]. Sec. 22.104 [22.105]. FUNDS HELD IN TRUST. All funds received by a district, other educational district, participating charter school, or regional education service center under this subchapter are held in trust for the benefit of the employees on whose behalf the district, school, or service center received the funds. Sec. 22.105. WRITTEN ELECTION REQUIRED. Each school year, an active employee must elect in writing whether to designate a portion of the employee's compensation to be used as health care supplementation under this subchapter. Sec. 22.106. [RECOVERY OF DISTRIBUTIONS. The agency is entitled to recover from a district, other educational district, participating charter school, or regional education service center any amount distributed under this subchapter to which the district, school, or service center was not entitled. [Sec. 22.107. DETERMINATION BY AGENCY FINAL. A determination by the agency under this subchapter is final and may not be appealed. [Sec. 22.108. DISTRIBUTION BY SCHOOL. Each month, each district, other educational district that is a member of the Teacher Retirement System of Texas, participating charter school, and regional education service center must distribute to its eligible employees the funding received under this subchapter. To receive the monthly distribution, an individual must meet the definition of an employee under Section 22.101 for that month. [Sec. 22.109.] USE OF DESIGNATED [SUPPLEMENTAL] COMPENSATION. An employee may use compensation designated for health care supplementation [a monthly distribution received] under this subchapter for any employee benefit, including depositing the designated amount [of the distribution] into a cafeteria plan in which[, if] the employee is enrolled [in a cafeteria plan,] or using the designated amount [of the distribution] for health care premiums through a premium conversion plan. [The employee may take the amount of the distribution as supplemental compensation. [Sec. 22.110. SUPPLEMENTAL COMPENSATION. An amount distributed to an employee under this subchapter must be in addition to the rate of compensation that: [(1) the district, other educational district, participating charter school, or regional education service center paid the employee in the preceding school year; or [(2) the district, school, or service center would have paid the employee in the preceding school year if the employee had been employed by the district, school, or service center in the same capacity in the preceding school year.] Sec. 22.107. WAGE INCREASE FOR SUPPORT STAFF. (a) For the 2006-2007 school year, a school district shall pay each full-time district employee, other than an administrator or an employee subject to the minimum salary schedule under Section 21.402, an amount at least equal to $500. (b) For the 2006-2007 school year, a school district shall pay each part-time district employee, other than an administrator, an amount at least equal to $250. (c) A school district employee entitled to a wage increase under this section may elect to receive a portion of the person's annual wages as health care supplementation as provided by this subchapter. (d) A payment under this section is in addition to wages the district would otherwise pay the employee during the school year. (e) This section expires September 1, 2007. SECTION 4.08. Subchapter E, Chapter 42, Education Code, is amended by adding Section 42.2513 to read as follows: Sec. 42.2513. ADDITIONAL STATE AID FOR PROFESSIONAL STAFF SALARY INCREASES. (a) A school district, including a school district that is otherwise ineligible for state aid under this chapter, is entitled to state aid in an amount equal to the product of $2,500 multiplied by the number of classroom teachers, full-time librarians, full-time counselors certified under Subchapter B, Chapter 21, and full-time school nurses employed by the district and entitled to a minimum salary under Section 21.402. (a-1) For the 2006-2007 school year, a school district, including a school district that is otherwise ineligible for state aid under this chapter, is entitled to state aid in an amount equal to the sum of: (1) the product of $500 multiplied by the number of full-time district employees, other than administrators or employees subject to the minimum salary schedule under Section 21.402; and (2) the product of $250 multiplied by the number of part-time district employees, other than administrators. (a-2) Subsection (a-1) and this subsection expire September 1, 2007. (b) A determination by the commissioner under this section is final and may not be appealed. (c) The commissioner may adopt rules to implement this section. SECTION 4.09. Sections 822.201(b) and (c), Government Code, are amended to read as follows: (b) "Salary and wages" as used in Subsection (a) means: (1) normal periodic payments of money for service the right to which accrues on a regular basis in proportion to the service performed; (2) amounts by which the member's salary is reduced under a salary reduction agreement authorized by Chapter 610; (3) amounts that would otherwise qualify as salary and wages under Subdivision (1) but are not received directly by the member pursuant to a good faith, voluntary written salary reduction agreement in order to finance payments to a deferred compensation or tax sheltered annuity program specifically authorized by state law or to finance benefit options under a cafeteria plan qualifying under Section 125 of the Internal Revenue Code of 1986, if: (A) the program or benefit options are made available to all employees of the employer; and (B) the benefit options in the cafeteria plan are limited to one or more options that provide deferred compensation, group health and disability insurance, group term life insurance, dependent care assistance programs, or group legal services plans; (4) performance pay awarded to an employee by a school district as part of a total compensation plan approved by the board of trustees of the district and meeting the requirements of Subsection (e); (5) the benefit replacement pay a person earns under Subchapter H, Chapter 659, except as provided by Subsection (c); (6) stipends paid to teachers in accordance with Section 21.410, 21.411, 21.412, or 21.413, Education Code; (7) amounts by which the member's salary is reduced or that are deducted from the member's salary as authorized by Subchapter J, Chapter 659; [and] (8) a merit salary increase made under Section 51.962, Education Code; and (9) amounts received under the awards for student achievement program under Subchapter N, Chapter 21, Education Code, the educator excellence awards program under Subchapter O, Chapter 21, Education Code, or a mentoring program under Section 21.458, Education Code. (c) Excluded from salary and wages are: (1) expense payments; (2) allowances; (3) payments for unused vacation or sick leave; (4) maintenance or other nonmonetary compensation; (5) fringe benefits; (6) deferred compensation other than as provided by Subsection (b)(3); (7) compensation that is not made pursuant to a valid employment agreement; (8) payments received by an employee in a school year that exceed $5,000 for teaching a driver education and traffic safety course that is conducted outside regular classroom hours; (9) the benefit replacement pay a person earns as a result of a payment made under Subchapter B or C, Chapter 661; (10) any compensation designated as health care supplementation [amount received] by an employee under Subchapter D, Chapter 22, Education Code; (11) any amount received by an employee under: (A) [,] former Article 3.50-8, Insurance Code; (B) [,] former Chapter 1580, Insurance Code; (C) Subchapter D, Chapter 22, Education Code, as that subchapter existed January 1, 2006;[,] or (D) Rider 9, Page III-39, Chapter 1330, Acts of the 78th Legislature, Regular Session, 2003 (the General Appropriations Act); and (12) [(11)] any compensation not described in Subsection (b). SECTION 4.10. As soon as practicable after the effective date of this Act, the commissioner of education shall adopt rules for establishing and administering the awards for student achievement program under Subchapter N, Chapter 21, Education Code, as added by this Act, and the educator excellence awards program under Subchapter O, Chapter 21, Education Code, as added by this Act. The commissioner shall make the awards for student achievement program available for campus participation not later than the 2006-2007 school year. The commissioner shall make the educator excellence awards program available for school district participation beginning with the 2007-2008 school year.
ARTICLE 5. HIGH SCHOOL SUCCESS AND COLLEGE-READINESS
SECTION 5.01. Subchapter A, Chapter 28, Education Code, is amended by adding Sections 28.008 and 28.009 to read as follows: Sec. 28.008. ADVANCEMENT OF COLLEGE-READINESS IN HIGH SCHOOL CURRICULUM. (a) To align the curriculum for grades nine through 12 with higher education curriculum and expectations, the commissioner and the Texas Higher Education Coordinating Board by rule shall establish vertical teams composed of high school educators and institution of higher education faculty with appropriate expertise. (b) The vertical teams shall: (1) recommend for approval by the commissioner and the Texas Higher Education Coordinating Board college-readiness standards and expectations that address what students must know and be able to do to succeed in entry-level courses offered at institutions of higher education; (2) evaluate whether the high school curriculum requirements under Section 28.002 serve to prepare students to successfully perform college-level course work; (3) develop instructional strategies for teaching courses in the high school curriculum to prepare students to successfully perform college-level course work; and (4) jointly develop an English language arts course, a mathematics course, a science course, and a social studies course, including curriculum, professional development materials, and online support materials, designed to be offered to students who need additional assistance in preparing to successfully perform college-level course work. (c) The State Board of Education shall incorporate college-readiness standards and expectations approved by the commissioner and the Texas Higher Education Coordinating Board under Subsection (b) into the essential knowledge and skills identified by the board under Section 28.002(c). (d) The State Board of Education by rule shall provide that each course developed under Subsection (b)(4) may be used to fulfill high school graduation requirements for the recommended high school program under Section 28.025(a). (e) Not later than September 1, 2011, the vertical teams shall complete the development of the courses under Subsection (b)(4). The vertical teams shall develop the English language arts course first, followed by the mathematics course, the science course, and the social studies course, respectively. The English language arts course must be developed by the vertical teams and approved by the State Board of Education not later than June 1, 2009. The course must be available to high school students beginning with the 2009 fall semester, with each subsequent course becoming available each subsequent fall semester. This subsection expires December 1, 2012. Sec. 28.009. AVAILABILITY OF CERTAIN CORE POSTSECONDARY COURSES IN DUAL CREDIT PROGRAM. (a) The State Board of Education by rule shall provide for the core curriculum courses revised under Section 61.822(a-1) to be offered in high schools through a dual credit program. (b) The agency shall coordinate with the Texas Higher Education Coordinating Board as necessary in administering this section. SECTION 5.02. Section 28.025, Education Code, is amended by adding Subsection (b-1) to read as follows: (b-1) The State Board of Education by rule shall require that: (1) the curriculum requirements for the recommended and advanced high school programs under Subsection (a) include a requirement that students successfully complete four courses in each subject of the foundation curriculum under Section 28.002(a)(1); and (2) one or more courses offered in the required curriculum for the recommended and advanced high school programs include a research writing component. SECTION 5.03. Subchapter C, Chapter 29, Education Code, is amended by adding Section 29.0822 to read as follows: Sec. 29.0822. OPTIONAL FLEXIBLE SCHOOL DAY PROGRAM. (a) Notwithstanding Section 25.081 or 25.082, a school district may provide a flexible school day program for students in grades nine through 12 who have dropped out of school or who are at risk of dropping out of school as defined by Section 29.081. (b) To enable a school district to provide a program under this section that meets the needs of students described by Subsection (a), a school district may: (1) provide flexibility in the number of hours each day a student attends; (2) provide flexibility in the number of days each week a student attends; or (3) allow a student to enroll in less than or more than a full course load. (c) A course offered in a program under this section must provide for at least the same number of instructional hours as required for a course offered in a program that meets the required minimum number of instructional days under Section 25.081 and the required length of school day under Section 25.082. (d) The commissioner may adopt rules for the administration of this section. The commissioner shall calculate average daily attendance for students served under this section. The commissioner shall allow accumulations of hours of instruction for students whose schedule would not otherwise allow full state funding. Funding under this subsection shall be determined based on the number of instructional days in the school district calendar and a seven-hour school day, but attendance may be cumulated over a school year, including any summer or vacation session. The attendance of students who accumulate less than the number of attendance hours required under this subsection shall be proportionately reduced for funding purposes. The commissioner may set maximum funding amounts for an individual course under this section. SECTION 5.04. Subchapter D, Chapter 29, Education Code, is amended by adding Section 29.124 to read as follows: Sec. 29.124. TEXAS GOVERNOR'S SCHOOLS. (a) In this section, "public senior college or university" has the meaning assigned by Section 61.003. (b) A Texas governor's school is a summer residential program for high-achieving high school students. A governor's school program may include any or all of the following educational curricula: (1) mathematics and science; (2) humanities; or (3) leadership and public policy. (c) A public senior college or university may apply to the commissioner to administer a Texas governor's school program under this section. The commissioner shall give preference to a public senior college or university that applies in cooperation with a nonprofit association. The commissioner shall give additional preference if the nonprofit association receives private foundation funds that may be used to finance the program. (d) The commissioner may approve an application under this section only if the applicant: (1) applies within the period and in the manner required by rule adopted by the commissioner; (2) submits a program proposal that includes: (A) a curriculum consistent with Subsection (b); (B) criteria for selecting students to participate in the program; (C) a statement of the length of the program, which must be at least three weeks; and (D) a statement of the location of the program; (3) agrees to use a grant under this section only for the purpose of administering a program; and (4) satisfies any other requirements established by rule adopted by the commissioner. (e) From funds appropriated to the agency, the commissioner may make a grant in an amount not to exceed $750,000 each year to public senior colleges or universities whose applications are approved under this section to pay the costs of administering a Texas governor's school program. (f) The commissioner may adopt other rules necessary to implement this section. SECTION 5.05. Subchapter B, Chapter 39, Education Code, is amended by adding Section 39.0232 to read as follows: Sec. 39.0232. USE OF END-OF-COURSE ASSESSMENT INSTRUMENT AS PLACEMENT INSTRUMENT. To the extent practicable, the agency shall ensure that any high school end-of-course assessment instrument developed by the agency is developed in such a manner that the assessment instrument may be used to determine the appropriate placement of a student in a course of the same subject matter at an institution of higher education. SECTION 5.06. Subchapter F, Chapter 39, Education Code, is amended by adding Sections 39.113 and 39.114 to read as follows: Sec. 39.113. RECOGNITION OF HIGH SCHOOL COMPLETION AND SUCCESS AND COLLEGE-READINESS PROGRAMS. (a) The agency shall: (1) develop standards for evaluating the success and cost-effectiveness of high school completion and success and college-readiness programs; (2) provide guidance for school districts and campuses in establishing and improving high school completion and success and college-readiness programs; and (3) develop standards for selecting and methods for recognizing school districts and campuses that offer exceptional high school completion and success and college-readiness programs. (b) The commissioner may adopt rules for the administration of this section. Sec. 39.114. HIGH SCHOOL ALLOTMENT. (a) For each student in average daily attendance in grades nine through 12, a school district is entitled to an annual allotment of $500. (b) Except as provided by Subsection (c), a school district or campus must use funds allocated under this section to: (1) implement or administer a college-readiness program that provides academic support and instruction to prepare underachieving students for entrance into an institution of higher education; (2) implement or administer a program that encourages students to pursue advanced academic opportunities, including early college high school programs and dual credit, advanced placement, and international baccalaureate courses; (3) implement or administer a program that provides opportunities for students to take academically rigorous course work, including four years of mathematics and four years of science at the high school level; (4) implement or administer a program, including online course support and professional development, that aligns the curriculum for grades six through 12 with postsecondary curriculum and expectations; or (5) implement or administer other high school completion and success initiatives in grades six through 12 approved by the commissioner. (c) A school district whose performance is recognized as exceptional by the commissioner under the academic accountability indicator adopted under Section 39.051(b)(13) may use funds allocated under this section on any instructional program in grades six through 12 other than an athletic program. (d) The commissioner may adopt rules for the administration of this section. SECTION 5.07. Section 42.005(a), Education Code, is amended to read as follows: (a) In this chapter, average daily attendance is: (1) the quotient of the sum of attendance for each day of the minimum number of days of instruction as described under Section 25.081(a) divided by the minimum number of days of instruction; [or] (2) for a district that operates under a flexible year program under Section 29.0821, the quotient of the sum of attendance for each actual day of instruction as permitted by Section 29.0821(b)(1) divided by the number of actual days of instruction as permitted by Section 29.0821(b)(1); or (3) for a district that operates under a flexible school day program under Section 29.0822, the average daily attendance as calculated by the commissioner in accordance with Section 29.0822(d). SECTION 5.08. Subchapter D, Chapter 61, Education Code, is amended by adding Sections 61.0761 and 61.0762 to read as follows: Sec. 61.0761. P-16 COLLEGE-READINESS AND SUCCESS STRATEGIC ACTION PLAN. (a) The P-16 Council established under Section 61.076 shall recommend to the commissioner of education and the board a college-readiness and success strategic action plan to increase student success and decrease the number of students enrolling in developmental coursework in institutions of higher education. The plan must include: (1) definitions, as determined by the P-16 Council in coordination with the State Board of Education, of the standards and expectations for college-readiness that address the knowledge and skills expected of students to perform successfully in entry-level courses offered at institutions of higher education; (2) a description of the components of a P-16 individualized graduation plan sufficient to prepare students for college success; (3) the manner in which the Texas Education Agency should provide model curricula for use as a reference tool by school district employees; (4) recommendations to the Texas Education Agency, the State Board of Education, and the board regarding strategies for decreasing the number of students enrolling in developmental coursework at institutions of higher education; (5) recommendations to the State Board for Educator Certification regarding changes to educator certification and professional development requirements that contribute to the ability of public school teachers to prepare students for higher education; and (6) any other elements that the commissioner of education and the board suggest for inclusion in the plan. (b) The commissioner of education and the board shall adopt the college-readiness and success strategic action plan recommended by the P-16 Council if the commissioner of education and the board determine that the plan meets the requirements of this section. (c) Not later than December 1 of each even-numbered year, the commissioner of education and the board shall submit a report to the governor, lieutenant governor, the speaker of the house of representatives, each member of the Legislative Budget Board, and the members of the standing committees of the senate and house of representatives with primary jurisdiction over the public school system and higher education system describing progress in implementing the college-readiness and success strategic action plan. (d) The commissioner of education and the board shall adopt rules necessary to implement this section. Sec. 61.0762. PROGRAMS TO ENHANCE STUDENT SUCCESS. To implement the college-readiness and success strategic action plan adopted under Section 61.0761 and to enhance the success of students at institutions of higher education, the board by rule shall develop: (1) summer higher education bridge programs in the subject areas of mathematics, science, and English language arts; (2) incentive programs for institutions of higher education that implement research-based, innovative developmental education initiatives; (3) financial assistance programs for educationally disadvantaged students, as defined by Section 5.001, who take college entrance and college-readiness assessment instruments; and (4) professional development programs for faculty of institutions of higher education on college-readiness standards and the implications of such standards on instruction. SECTION 5.09. Section 61.822, Education Code, is amended by adding Subsections (a-1) and (a-2) to read as follows: (a-1) To improve student learning and reduce the cost of course delivery, the board, with the assistance of the advisory committees described by Subsection (a) and nonprofit organizations with expertise in higher education course development, shall review and adopt revisions of or additions to the curriculum and any online support materials supplementing the curriculum of not more than 25 courses in which students may enroll to satisfy the recommended core curriculum requirements. (a-2) Not later than September 1, 2006, the board shall begin reviewing and adopting revisions of or additions to the curriculum and online support materials for courses in which students may enroll to satisfy the recommended English language arts core curriculum requirements, including composition, American literature with a focus on textual analysis, and interdisciplinary literature and American history. Not later than the 2009 fall semester, the board shall make the revised curriculum and online support materials for the English language arts courses described by this subsection available to institutions of higher education. Not later than September 1, 2011, the board shall complete its review and revisions of and additions to courses selected under Subsection (a-1). This subsection expires December 1, 2011. SECTION 5.10. Not later than January 1, 2007, the State Board of Education shall adopt rules as required by Section 28.025(b-1), Education Code, as added by this Act. The rules shall require that the curriculum requirements for the recommended and advanced high school programs under that subsection apply to students entering the ninth grade beginning with the 2007-2008 school year.
ARTICLE 6. PUBLIC EDUCATION FUNDING FOR CERTAIN PURPOSES
SECTION 6.01. For the fiscal biennium ending August 31, 2007, the commissioner of education, to the extent not specifically prohibited by state or federal law, shall use federal funds, including consolidated administrative or innovative program funds, for the purposes described by Section 44.007(b), Education Code, as amended by this Act, and Sections 1.005, 7.008, 39.034, and 44.0061, Education Code, as added by this Act. To the extent federal funds are not sufficient, funds may be set aside from the Foundation School Program to fund the remaining balance.
ARTICLE 7. APPLICABILITY; EFFECTIVE DATE
SECTION 7.01. Except as otherwise provided by this Act, this Act applies beginning with the 2006-2007 school year. SECTION 7.02. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect on the 91st day after the last day of the legislative session.