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Amend CSHB 2 as follows:
(1) In Part C, Article 1 of the bill, before Section 1C.01
(committee printing, page 16, between lines 19 and 20), insert the
following appropriately numbered section:
SECTION 1C.__. Subchapter C, Chapter 45, Education Code, is
amended by adding Section 45.0561 to read as follows:
Sec. 45.0561. PRIORITY FOR CERTAIN BONDS. (a) In
determining which bonds to approve for guarantee under this
subchapter, the commissioner shall give priority to a school
district that has had bonds refunded and defeased under Subchapter
D, Chapter 46.
(b) The commissioner may adopt rules to administer this
section.
(2) In Part C, Article 1 of the bill, after Section 1C.02
(committee printing, page 16, between lines 42 and 43), insert the
following appropriately numbered section:
SECTION 1C.__. Chapter 46, Education Code, is amended by
adding Subchapter D to read as follows:
SUBCHAPTER D. REFUNDING TO INCREASE PERMANENT
SCHOOL FUND CAPACITY
Sec. 46.091. DEFINITIONS. In this subchapter:
(1) "Allocated revenue" means that portion of state
assistance under Subchapter A or B equal to the scheduled debt
service payments in effect immediately before the refunding of
eligible bonds being refunded under this subchapter.
(2) "Authority" means the Texas Public Finance
Authority.
(3) "Authority obligation" means any type of revenue
obligation, including a bond, note, certificate, or other
instrument issued under this subchapter. The term includes an
obligation issued to refund an obligation issued under this
subchapter.
(4) "Credit agreement" has the meaning assigned by
Section 1371.001, Government Code.
(5) "Obligation administrative expenses" means
expenses incurred in administering authority obligations,
including:
(A) administrative expenses incurred by the
commissioner or the authority relating to the administration of
this subchapter; and
(B) fees for:
(i) paying agents, trustees, and attorneys;
(ii) other professional services necessary
to ensure compliance with applicable state or federal law; and
(iii) a school district with eligible bonds
refunded under this subchapter, professional service expenses in an
amount approved by the commissioner.
Sec. 46.092. ISSUANCE OF AUTHORITY OBLIGATIONS. (a) If the
commissioner determines that it is feasible to refund eligible
school district bonds as provided by this subchapter, the
commissioner may request that the authority issue authority
obligations necessary to accomplish the refunding. On request of
the commissioner, the authority shall issue authority obligations,
in accordance with Title 9, Government Code, in an amount
sufficient to:
(1) refund eligible bonds;
(2) pay all obligation administrative expenses;
(3) pay the costs of issuing the authority
obligations;
(4) pay the costs of any credit agreement; and
(5) provide any reserve funds.
(b) Authority obligations and any related credit agreements
must be secured by allocated revenue.
(c) The commissioner's request for the issuance of
authority obligations must state:
(1) the maximum principal amount of bonds to be
refunded under this subchapter;
(2) the maximum term of bonds to be refunded; and
(3) the amount of state assistance under Subchapter A
or B to support the payment of the bonds to be refunded.
(d) To best achieve the economic goals of this subchapter
and accomplish the borrowing at the lowest practicable cost, the
authority may determine:
(1) the method of sale of authority obligations;
(2) the type and form of obligation;
(3) the maximum interest rates and other terms of
authority obligations; and
(4) the need for related credit agreements.
(e) The authority shall certify to the commissioner that
each series of authority obligations issued under this subchapter
will result in an aggregate present value savings.
(f) Section 46.007 does not apply to the issuance of
authority obligations under this subchapter.
Sec. 46.093. ELIGIBILITY OF BONDS FOR REFUNDING. School
district bonds are eligible for refunding under this subchapter if:
(1) the district receives state assistance for payment
of the bonds under Subchapter A or B; and
(2) the principal and interest of the bonds are
guaranteed by the permanent school fund under Subchapter C, Chapter
45.
Sec. 46.094. IDENTIFICATION OF ELIGIBLE BONDS; NOTICE TO
SCHOOL DISTRICTS. (a) If the commissioner determines that it is
feasible to refund eligible school district bonds as provided by
this subchapter, the commissioner shall periodically identify
which outstanding school bonds are eligible for refunding under
this subchapter. The commissioner shall notify the school districts
issuing the bonds that:
(1) the bonds are subject to being refunded and
defeased through the issuance of authority obligations; and
(2) a school district whose bonds are refunded under
this subchapter is entitled to priority in the allocation of
resulting increases in the capacity of the permanent school fund to
guarantee school district bonds under Subchapter C, Chapter 45, as
provided by Section 45.0561.
(b) The district may elect to direct the commissioner to
include any of the district's eligible bonds for consideration for
refunding under this subchapter. If the district does not elect to
direct the commissioner to include the district's bonds for
consideration for refunding within the time prescribed by this
subsection, the bonds may not be refunded under this subchapter.
(c) Notice under Subsection (a) must:
(1) identify the bonds the commissioner proposes to
refund under this subchapter;
(2) state that the school district may elect to direct
the commissioner to include any of the district's bonds for
consideration for refunding; and
(3) advise the district of:
(A) the effect of electing to have the bonds
considered for refunding; and
(B) the effect of not electing to have the bonds
considered for refunding.
Sec. 46.095. AGREEMENT BETWEEN COMMISSIONER AND AUTHORITY.
(a) To permit the authority to pledge allocated revenue to the
payment of authority obligations, the commissioner shall enter into
an agreement with the authority under which:
(1) the commissioner, acting on behalf of each school
district whose bonds are being refunded under this subchapter, may
pledge the allocated revenue to secure the payment of the principal
of and interest and premium on authority obligations; and
(2) each school year, the commissioner shall allocate
and distribute to the authority allocated revenue equal to the
scheduled debt service payments for that year on the bonds being
refunded.
(b) An agreement under this section must state that the
funding for allocated revenue is subject to legislative
appropriation. A distribution to the authority under the agreement
is considered to be a distribution for purposes of Section 46.009.
If the commissioner determines that the amount appropriated for any
year for allocated revenue is insufficient, the commissioner may
act under Section 46.009(b) to ensure the sufficiency of allocated
revenue.
Sec. 46.096. USE OF PROCEEDS OF AUTHORITY OBLIGATIONS. (a)
The authority shall use the proceeds of authority obligations, less
the cost of issuing those obligations and the cost of
administrative expenses incurred by the commissioner or the
authority relating to the administration of this subchapter, to
refund and defease eligible bonds as requested by the commissioner.
To accomplish the refunding and defeasance:
(1) the commissioner, on behalf of the school
districts issuing the bonds, may:
(A) exercise any reserved right of optional
redemption; and
(B) issue any required notice of redemption and
defeasance; and
(2) the authority, on behalf of the districts issuing
the bonds, may enter into escrow agreements and purchase escrow
securities as provided by Chapter 1207, Government Code, with the
same effect under that chapter as if the authority were the issuer
of the bonds being refunded and defeased.
(b) The authority shall provide to a school district whose
bonds are refunded under this subchapter appropriate documentation
showing that the bonds have been refunded and defeased.
Sec. 46.097. PAYMENT OF OBLIGATION ADMINISTRATIVE
EXPENSES. After paying the current debt service on authority
obligations, the authority may use allocated revenue to pay
obligation administrative expenses.
Sec. 46.098. DISTRIBUTION OF ALLOCATED REVENUE IN EXCESS OF
DISTRICT'S ENTITLEMENT TO STATE ASSISTANCE. (a) If the
commissioner allocates and distributes to the authority allocated
revenue for a school district's bonds refunded under this
subchapter in an amount in excess of the state assistance to which
the district is entitled in connection with all of the district's
bonds, the district shall reimburse the commissioner in the amount
of the excess.
(b) If a school district elects not to reimburse the
commissioner in the amount of excess state assistance as required
under Subsection (a), the commissioner shall direct the comptroller
to withhold the amount of the excess from the succeeding payment of
state assistance payable to the school district and credit the
amount to the account or accounts from which the excess payment was
made.
(c) A school may reimburse the commissioner under this
section from any lawfully available source.
Sec. 46.099. REFUNDING OF AUTHORITY OBLIGATIONS. The
authority may issue authority obligations to refund any previously
issued authority obligations if the authority by resolution
determines that the issuance of refunding obligations will result
in the lowest practicable borrowing cost to the state and school
districts with outstanding eligible bonds.
Sec. 46.100. AUTHORITY OBLIGATIONS NOT A PLEDGE OF STATE'S
CREDIT. (a) Authority obligations and any related credit
agreements are not:
(1) a debt of the state, a state agency, or a political
subdivision of the state; or
(2) a pledge of the faith and credit or taxing power of
the state, a state agency, or a political subdivision of the state.
(b) Authority obligations and any related credit agreements
are payable solely from allocated revenue pledged to the payment of
those obligations.
(c) Subject to the limitations of Subsection (a), as long as
authority obligations are outstanding, the state may not:
(1) take any action to limit or restrict the
authority's responsibility to pay the authority obligations; or
(2) in any way impair the rights and remedies of the
owners of authority obligations.
(d) The reallocation of allocated revenue to secure
authority obligations to refund school district bonds is:
(1) consistent with the original authorization,
allocation, and application of state assistance under Subchapter A
or B;
(2) in furtherance of any covenants, agreements, or
undertakings by school districts or the commissioner to cause
allocated revenue to be credited to debt service funds for school
district bonds; and
(3) consistent with all statutory and regulatory
dedications and restrictions on the allocated revenue.
(3) In Section 2B.05 of the bill, in added Section
29.092(b), Education Code (page 28, line 39), after "commissioner."
insert "To the extent practicable, the grant process developed by
the commissioner under this subsection must comply with Subchapter
E, Chapter 7."
(4) Strike Section 2C.17 of the bill (page 40, line 63,
through page 41, line 16).
(5) In Part C, Article 2, of the bill (page 41, between lines
31 and 32), add the following appropriately numbered sections:
SECTION 2C.__. Section 39.053(a), Education Code, is
amended to read as follows:
(a) Each board of trustees shall publish an annual report
describing the educational performance of the district and of each
campus in the district that includes uniform student performance
and descriptive information as determined under rules adopted by
the commissioner. The annual report must also include:
(1) campus performance objectives established under
Section 11.253 and the progress of each campus toward those
objectives, which shall be available to the public;
(2) the academic performance rating for the district
and each campus in the district as provided under Section 39.072
[39.072(a) and the performance rating of each campus in the
district as provided under Section 39.072(c)];
(3) the district's current special education
compliance status with the agency;
(4) a statement of the number, rate, and type of
violent or criminal incidents that occurred on each district
campus, to the extent permitted under the Family Educational Rights
and Privacy Act of 1974 (20 U.S.C. Section 1232g);
(5) information concerning school violence prevention
and violence intervention policies and procedures that the district
is using to protect students; [and]
(6) the findings that result from evaluations
conducted under the Safe and Drug-Free Schools and Communities Act
of 1994 (20 U.S.C. Section 7101 et seq.) [and its subsequent
amendments]; and
(7) information received under Section 51.403(e) for
each high school campus in the district, presented in a form
determined by the commissioner.
SECTION 2C.__. Section 39.055, Education Code, is amended
to read as follows:
Sec. 39.055. [ANNUAL] AUDIT OF DROPOUT RECORDS; REPORT.
(a) The commissioner shall develop a process for auditing school
district dropout records electronically. The commissioner shall
also develop a system and standards for review of the audit or use
systems already available at the agency. The system must be
designed to identify districts that are at high risk of having
inaccurate dropout records and that, as a result, may be subject to
a special accreditation investigation under Section 39.075
[require on-site monitoring of dropout records. If the electronic
audit of a district's dropout records indicates that a district is
not at high risk of having inaccurate dropout records, the district
may not be subject to on-site monitoring under this subsection. If
the risk-based system indicates that a district is at high risk of
having inaccurate dropout records, the district is entitled to an
opportunity to respond to the commissioner's determination before
on-site monitoring may be conducted. The district must respond not
later than the 30th day after the date the commissioner notifies the
district of the commissioner's determination. If the district's
response does not change the commissioner's determination that the
district is at high risk of having inaccurate dropout records or if
the district does not respond in a timely manner, the commissioner
shall order agency staff to conduct on-site monitoring of the
district's dropout records].
(b) [(e)] The commissioner shall notify the superintendent
[board of trustees] of a school district of any objection the
commissioner has to the district's dropout data, any violation of
sound accounting practices or of a law or rule revealed by the data,
or any recommendation by the commissioner concerning the data. If
the data reflect that a penal law has been violated, the
commissioner shall notify the county attorney, district attorney,
or criminal district attorney, as appropriate, and the attorney
general. The commissioner is entitled to access to all district
records the commissioner considers necessary or appropriate for the
review, analysis, or approval of district dropout data.
(6) Strike Section 2C.19 of the bill (page 41, lines 32
through 62), and substitute the following appropriately numbered
section:
SECTION 2C.__. Sections 39.071 and 39.072, Education Code,
are amended to read as follows:
Sec. 39.071. ACCREDITATION. (a) Accreditation of a school
district is determined in accordance with this section
[subchapter].
(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;
(2) shall evaluate and consider:
(A) the results of any special accreditation
investigation under Section 39.075; and
(B) the district's current special education
monitoring or compliance status with the agency; and
(3) 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 of:
(A) accredited;
(B) accredited-warned; or
(C) accredited-probation; or
(2) revoke the accreditation of the district and order
closure of the district under Section 39.1332.
(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.
Sec. 39.072. ACADEMIC ACCOUNTABILITY SYSTEM [ACCREDITATION
STANDARDS]. (a) The commissioner [State Board of Education] shall
adopt rules for assigning [to evaluate the performance of school
districts and to assign] to each school district and campus a
performance rating as follows:
(1) exemplary (meets or exceeds state exemplary
standards);
(2) recognized (meets or exceeds required improvement
or [and] within 10 percent of state exemplary standards);
(3) academically acceptable (below the exemplary and
recognized standards but exceeds the academically unacceptable
standards); or
(4) academically unacceptable (below the state
clearly unacceptable performance standard and does not meet
required improvement).
(b) The academic excellence indicators adopted under
Section 39.051(b) [Sections 39.051(b)(1) through (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 a school [the] district or campus 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 school [campus in a] district and campus. [each
open-enrollment charter school on the basis of the campus's
performance on the indicators adopted under Sections 39.051(b)(1)
through (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.]
(d) The agency shall annually review the performance of each
school district and campus and determine if a change in the academic
performance rating of the district or campus is warranted.
Notwithstanding any other provision of this code, the commissioner
shall determine how the indicators adopted under Section 39.051(b)
may be used to determine academic performance ratings and to select
districts and campuses for acknowledgment.
(e) Each annual review shall include an analysis of the
indicators under Section 39.051(b) to determine district and campus
performance in relation to:
(1) state standards established for each indicator;
(2) required improvement as defined under Section
39.051(c); and
(3) comparable improvement as determined under
Section 39.051(c).
(f) The academic performance rating of a school district may
be raised or lowered based on the district's performance or may be
lowered based on the unacceptable performance of one or more
campuses in the district. The academic performance rating of a
school district may also be lowered based on a determination that
data provided to the agency by the district that is necessary for
conducting an annual review under this section is unreliable.
(g) The commissioner shall notify a school district if the
performance of the district or a campus in the district is below a
standard required under this section. The commissioner shall
require the school district to notify the parents of students who
are enrolled in the district and property owners in the district of
the academic performance rating and the implications of that
rating.
(h) Notwithstanding any other provision of this code, for
purposes of determining the performance of a school district or
open-enrollment charter school under this chapter, including the
academic performance rating [accreditation status] of the district
or school, a student attending a campus that is a [confined by court
order in a residential program or] facility operated by or under
contract with the Texas Youth Commission, a pre-adjudication secure
detention facility or a post-adjudication secure correctional
facility that is registered with the Texas Juvenile Probation
Commission, or a residential facility is not considered to be a
student of the school district or open-enrollment charter school
serving the student [in which the program or facility is physically
located]. The performance of a student who attends such a campus
[student] on an assessment instrument or other academic excellence
indicator adopted under Section 39.051 shall be determined and[,]
reported, but may not be used to determine the rating of the school
district or open-enrollment charter school unless the campus is the
only campus operated by the district or school. [and considered
separately from the performance of students attending a school of
the district in which the program or facility is physically
located.]
(7) Strike Sections 2C.21 and 2C.22 of the bill (page 42,
lines 6 through 29), and substitute the following appropriately
numbered sections of Part C:
SECTION 2C.__. Section 39.075(a), Education Code, is
amended to read as follows:
(a) The commissioner may [shall] authorize special
accreditation investigations to be conducted:
(1) when excessive numbers of absences of students
eligible to be tested on state assessment instruments are
determined;
(2) when excessive numbers of allowable exemptions
from the required state assessment instrument are determined;
(3) in response to complaints submitted to the agency
with respect to alleged violations of civil rights or other
requirements imposed on the state by federal law or court order;
(4) in response to established monitoring or
compliance reviews of the district's financial accounting
practices and state and federal program requirements;
(5) when extraordinary numbers of student placements
in alternative education programs, other than placements under
Sections 37.006 and 37.007, are determined;
(6) in response to an allegation involving a conflict
between members of the board of trustees or between the board and
the district administration if it appears that the conflict
involves a violation of a role or duty of the board members or the
administration clearly defined by this code;
(7) when excessive numbers of students in special
education programs under Subchapter A, Chapter 29, are assessed
through assessment instruments developed or adopted under Section
39.023(b); [or]
(8) in response to questions concerning a program,
including special education, required by federal law or for which
the district receives federal funds;
(9) when an annual review indicates the academically
unacceptable performance under Section 39.072 of one or more
campuses in a district, except that the resulting investigation is
limited to those campuses;
(10) in response to concerns regarding the integrity
of data submitted to the agency;
(11) in response to allegations of a violation of
student assessment procedures for assessment instruments adopted
under Section 39.023; or
(12) as the commissioner otherwise determines
necessary.
SECTION 2C.__. Section 39.075(c), Education Code, as
amended by Chapters 396 and 931, Acts of the 77th Legislature,
Regular Session, 1999, is reenacted and amended to read as follows:
(c) Based on the results of a special accreditation
investigation, the commissioner may:
(1) take appropriate action under Subchapter G;
(2) raise or lower the district's accreditation status
[rating]; or
(3) take action under both Subdivisions (1) and (2).
SECTION 2C.__. Section 39.076, Education Code, is amended
by amending Subsection (a) and adding Subsections (a-1), (a-2),
(a-3), and (c) to read as follows:
(a) The agency shall adopt written procedures for
conducting [on-site] investigations under this subchapter. The
agency shall make the procedures available to the complainant, the
alleged violator, and the public. Agency staff must be trained in
the procedures and must follow the procedures in conducting the
investigation.
(a-1) An investigation conducted under this subchapter may
be an on-site, desk, or data-based investigation as determined by
the commissioner.
(a-2) If conducting an on-site investigation, the
investigators may obtain information from administrators,
teachers, or parents of students enrolled in the school district.
The commissioner shall adopt rules for:
(1) obtaining information from parents and using that
information in the investigator's report; and
(2) obtaining information from teachers in a manner
that prevents a campus or district from screening the information.
(a-3) The agency may give written notice of any impending
on-site investigation to the superintendent and the board of
trustees of a school district.
(c) The investigators conducting an on-site investigation
shall report the results of the investigation orally and in writing
to the board of trustees of the district and, as appropriate, to
campus administrators, and shall make recommendations concerning
any necessary improvements or sources of aid, such as regional
education service centers.
SECTION 2C.__. Subchapter D, Chapter 39, Education Code, is
amended by adding Sections 39.077 and 39.078 to read as follows:
Sec. 39.077. FINALITY OF DECISION BY COMMISSIONER. (a) A
school district or open-enrollment charter school that wishes to
challenge a decision to assign or lower an accreditation status, an
academic performance rating, or a financial accountability rating
must petition for an informal review as provided by Section 7.0571.
(b) A final decision by the commissioner to assign or lower
an accreditation status, an academic performance rating, or a
financial accountability rating following a review under Section
7.0571 is final and may not be appealed.
Sec. 39.078. RULES. (a) The commissioner may adopt rules
as necessary to administer this subchapter.
(b) Unless a provision of this code clearly specifies
otherwise, any rule adopted under Subsection (a) must apply
accreditation requirements and academic performance ratings under
this subchapter to:
(1) an open-enrollment charter school in the same
manner as the requirements and ratings are applied to a school
district; and
(2) a campus operated by an open-enrollment charter
school in the same manner as the requirements and ratings are
applied to a campus operated by a school district.
(8) In Part C, Article 2, of the bill (page 43, between lines
8 and 9), add the following appropriately numbered section:
SECTION 2C.__. 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.
(9) In Section 2C.24 of the bill, in amended Section
39.132(a), Education Code (page 43, line 13), strike "39.073" and
substitute "39.072".
(10) In Section 2C.24 of the bill, in added Section
39.132(a-2), Education Code (page 44, line 15), strike
"intervention" and substitute "assistance".
(11) In Section 2C.24 of the bill, in added Section
39.132(a-3), Education Code (page 44, line 45), strike
"intervention" and substitute "assistance".
(12) In Section 2C.24 of the bill, in amended Section
39.132, Education Code (page 44, lines 54 through 62), strike
Subsection (a-4).
(13) In Section 2C.24 of the bill, in amended Section
39.132(b), Education Code (page 44, line 65), between "years" and
"[or more]", insert ", including the current school year".
(14) In Section 2C.24 of the bill, in amended Section
39.132(b), Education Code (page 44, line 68), between "campus" and
"or pursue", insert "and assign a special campus intervention
team".
(15) In Section 2C.24 of the bill, in amended Section
39.132, Education Code (page 45, between lines 39 and 40), insert
the following:
(f) Notwithstanding any other provision of this subchapter,
if the commissioner determines that an intervention under
Subsection (b) or Section 39.1321 cannot reasonably be expected to
achieve timely improvement at a campus that has been identified as
academically unacceptable for two consecutive school years,
including the current school year, the commissioner may order the
closure of the campus.
(16) In Section 2C.25 of the bill, in added Section
39.1321(a), Education Code (page 45, line 43), strike "A campus"
and substitute "Except as provided by Section 39.132(f), a campus".
(17) In Section 2C.25 of the bill, in added Section
39.1321(a), Education Code (page 45, line 45), between "years" and
the period, insert ", including the current school year".
(18) In Part C, Article 2, of the bill (page 47, between
lines 12 and 13), add the following appropriately numbered
sections:
SECTION 2C.__. Section 39.133, Education Code, is amended
to read as follows:
Sec. 39.133. ANNUAL REVIEW. (a) The commissioner shall
review annually the performance of a district or campus subject to a
sanction under this subchapter to determine the appropriate actions
to be implemented under this subchapter. The determination shall
take into account the number, severity, and duration of the
problems identified. [The commissioner must review at least
annually the performance of a district for which the accreditation
rating has been lowered due to unacceptable student performance and
may not raise the rating until the district has demonstrated
improved student performance.] If the review reveals a lack of
improvement, the commissioner shall increase the level of state
intervention and sanction unless the commissioner finds good cause
for maintaining the current status.
(b) The commissioner shall review at least annually the
performance of a school district for which the academic performance
rating has been lowered due to unacceptable student performance and
may not raise the rating until the district has demonstrated
improved student performance.
SECTION 2C.___. Subchapter G, Chapter 39, Education Code,
is amended by adding Sections 39.1331, 39.1332, and 39.1333 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. CLOSURE OF SCHOOL DISTRICT OR CAMPUS. (a)
The commissioner may revoke the accreditation of a school district
and order the closure of the district or a campus, as appropriate,
under the following circumstances:
(1) the commissioner is authorized to close the
district or campus under Section 39.131(a)(10) or 39.132(f);
(2) the commissioner determines that the district is
insolvent and unable to complete the school year; or
(3) the commissioner determines that the district has
ceased operations for 11 or more instructional days during the
current or most recent scheduled school year without the
commissioner's authorization.
(b) The commissioner shall issue an order of closure under
this section that includes provisions necessary for the
continuation of the education of students enrolled in the district
or campus, including annexation to one or more adjoining districts
as provided by Section 13.054. An order of closure may:
(1) establish an effective date for accreditation
revocation and closure that is not later than the first anniversary
of the date of the order;
(2) provide for an interim board of managers to
exercise the duties of the board of trustees of the district as
designated by the commissioner;
(3) require enrollment or student services to be
provided by another district as necessary to allow students
enrolled in the closed district to complete a school year, and make
adjustments in the state and federal funding to which the district
would otherwise be entitled as determined by the commissioner; and
(4) require the preservation, transfer, or surrender
of all student records and other records required for an audit of
any state and federal funding provided to the district.
(c) A person who intentionally destroys, conceals, or
tampers with a record that is required to be preserved,
transferred, or surrendered under Subsection (b)(4) commits an
offense punishable under Section 37.10(c)(2), Penal Code.
(d) A board of managers exercising authority under
Subsection (b)(2) may exercise the authority of the board of
trustees with regard to financial management of the district and
personnel actions. The board of managers is not required to be
composed of residents of the district.
(e) An open-enrollment charter school ordered closed under
this section is not entitled to a separate hearing concerning the
revocation or nonrenewal of the charter under Section 12.116.
Sec. 39.1333. 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 under
Section 39.1332, 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 under Section 39.1332, 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 2C.__. 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 39.1321, 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.
(19) In Section 2C.26 of the bill, in added Section
39.1371(b), Education Code (page 47, line 19), between "of" and
"special", insert "technical assistance teams and".
(20) In Part C, Article 2, of the bill (page 49, between
lines 47 and 48), add the following appropriately numbered section:
SECTION 2C.__. Section 39.182, Education Code, is amended
by adding Subsections (b-1) and (b-2) to read as follows:
(b-1) The report must include an assessment of the impact of
the performance-based grant system developed under Subchapter E,
Chapter 7, on student academic performance, including:
(1) an analysis of performance and spending
information relating to grants administered by the agency; and
(2) recommendations on any statutory changes needed
for the agency to more effectively administer grant programs,
including recommendations on whether to eliminate or modify
inefficient grant programs, expand effective grant programs, or
consolidate similar grant programs to maximize the effectiveness
and efficiencies of those programs.
(b-2) Subsection (b-1) applies beginning January 1, 2009.
This subsection expires February 1, 2009.
(21) Renumber sections of Part C, Article 2, of the bill
accordingly.
(22) In the heading to Part F, Article 2, of the bill (page
65, line 39), strike "STATE GOVERNANCE" and substitute "STATE AND
REGIONAL GOVERNANCE".
(23) In Part F, Article 2, of the bill (page 65, between
lines 39 and 40), add the following appropriately numbered
sections:
SECTION 2F.__. Section 7.004, Education Code, is amended to
read as follows:
Sec. 7.004. SUNSET PROVISION. (a) The Texas Education
Agency is subject to Chapter 325, Government Code (Texas Sunset
Act). Unless continued in existence as provided by that chapter,
the agency is abolished September 1, 2017 [2005].
(b) A review conducted under Chapter 325, Government Code
(Texas Sunset Act), in accordance with this section must include a
review of the regional education service centers under Chapter 8.
SECTION 2F.__. Subchapter A, Chapter 7, Education Code, is
amended by adding Section 7.010 to read as follows:
Sec. 7.010. BEST PRACTICES. (a) Using existing funds and
other resources available for the purpose, the agency and the
regional education service centers shall solicit and collect from
exemplary or recognized school districts and open-enrollment
charter schools, as rated under Section 39.072, best practices
information and shall disseminate that information. The agency and
the regional education service centers shall enter into a
memorandum of understanding that establishes the respective duties
of the agency and the regional education service centers in
soliciting, collecting, and disseminating the best practices
information.
(b) The best practices information may include:
(1) information concerning available programs,
products, and policies that have been successfully adopted or
developed and used by school districts or open-enrollment charter
schools;
(2) specific examples of successful best practices;
and
(3) resources available to assist school districts and
open-enrollment charter schools in complying with applicable state
or federal education laws.
(c) The best practices information must include information
collected by the agency or a regional education service center
concerning the effective use of online courses, including:
(1) methods for using online courses to provide
curriculum solutions;
(2) information to assist school districts and
open-enrollment charter schools in investigating the quality of
online courses; and
(3) a list of funding sources available for various
types of online courses.
(d) The agency and the regional education service centers
are not required to evaluate and may not endorse the best practices
information collected under this section.
(e) The agency and the regional education service centers
shall develop incentives for school districts and open-enrollment
charter schools to implement best practices.
(24) In Part F, Article 2, of the bill (page 65, between
lines 45 and 46), insert the following appropriately numbered
sections and renumber the subsequent sections of Part F
accordingly:
SECTION 2F.__. Section 7.027, Education Code, as added by
Chapter 201, Acts of the 78th Legislature, Regular Session, 2003,
is redesignated as Section 7.028, Education Code, and amended to
read as follows:
Sec. 7.028 [7.027]. LIMITATION ON COMPLIANCE MONITORING.
(a) Except as provided by Section 29.001(5), 29.010(a), [39.074,]
or 39.075, the agency may monitor compliance with requirements
applicable to a process or program provided by a school district,
campus, program, or school granted charters under Chapter 12,
including the process described by Subchapter F, Chapter 11, or a
program described by Subchapter B, C, D, E, F, H, or I, Chapter 29,
Subchapter A, Chapter 37, or Section 38.003, and the use of funds
provided for such a program under Subchapter C, Chapter 42, only as
necessary to ensure:
(1) compliance with federal law and regulations;
(2) financial accountability, including compliance
with grant requirements; and
(3) data integrity for purposes of:
(A) the Public Education Information Management
System (PEIMS); and
(B) accountability under Chapter 39.
(b) The board of trustees of a school district or the
governing body of an open-enrollment charter school has primary
responsibility for ensuring that the district or school complies
with all applicable requirements of state educational programs.
SECTION 2F.__. Subchapter B, Chapter 7, Education Code, is
amended by adding Section 7.033 to read as follows:
Sec. 7.033. COMPREHENSIVE MONITORING SYSTEM. To the extent
permissible under Section 7.028, the agency shall develop and
implement a comprehensive, integrated monitoring system for
monitoring school district and charter school overall performance
under and compliance with federal and state education laws. The
system must incorporate performance and compliance information
collected by various agency divisions for each school district and
charter school, including information relating to:
(1) data integrity;
(2) the performance of district or school programs;
(3) financial accountability;
(4) academic accountability;
(5) previous history of compliance;
(6) complaints issues; and
(7) governance issues.
SECTION 2F.__. Sections 7.057(a) and (d), Education Code,
are amended to read as follows:
(a) Except as provided by Subsection (e) or Section 7.0571,
a person may appeal in writing to the commissioner if the person is
aggrieved by:
(1) the school laws of this state; or
(2) actions or decisions of any school district board
of trustees that violate:
(A) the school laws of this state; or
(B) a provision of a written employment contract
between the school district and a school district employee, if a
violation causes or would cause monetary harm to the employee.
(d) Except as provided by Section 7.0571, a [A] person
aggrieved by an action of the agency or decision of the commissioner
may appeal to a district court in Travis County. An appeal must be
made by serving the commissioner with citation issued and served in
the manner provided by law for civil suits. The petition must state
the action or decision from which the appeal is taken. At trial,
the court shall determine all issues of law and fact, except as
provided by Section 33.081(g).
SECTION 2F.__. 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, 41, 42, or 46
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 2F.__. Chapter 7, Education Code, is amended by
adding Subchapter E to read as follows:
SUBCHAPTER E. PERFORMANCE-BASED GRANT SYSTEM
Sec. 7.151. PERFORMANCE-BASED GRANT SYSTEM. (a) The
agency shall implement a comprehensive performance-based grant
system to collect and report grant performance and spending
information and to use that information in making future grants.
(b) The grant system must:
(1) connect grant activities and funding to student
academic performance; and
(2) provide for efficient grant application and
reporting procedures for grant programs administered by the agency.
Sec. 7.152. GRANT PROGRAM PROCEDURES. The agency shall
ensure that:
(1) the mission, purpose, and objectives of each
agency grant program supports student academic performance or
another public education mission, objective, or goal specified
under Sections 4.001 and 4.002;
(2) each agency grant program coordinates with other
grant programs administered by the agency;
(3) grant programs with similar objectives have common
performance measures; and
(4) the most efficient methods for coordinating grant
objectives, grant activities, academic performance measures, and
funding are used in the agency's grant application and reporting
systems.
Sec. 7.153. GRANT ELIGIBILITY NOTIFICATION. The agency may
use existing data to identify and notify an eligible school
district or charter school of the opportunity to apply for a
state-funded discretionary grant.
Sec. 7.154. APPLICATION FOR STATE-FUNDED FORMULA GRANTS.
The agency shall develop one or more consolidated applications to
be used by school districts and charter schools in applying for any
state-funded formula grant administered by the agency.
Sec. 7.155. AVAILABILITY OF GRANT INFORMATION. The agency
shall ensure that information relating to the grant system is
available to the legislature and the public.
Sec. 7.156. BEST PRACTICES GRANT INFORMATION. (a) The
agency, in coordination with regional education service centers,
shall use data relating to grant programs, including grant spending
and performance information, to identify successful grant
programs. Based on the identification of successful grant
programs, each regional education service center shall provide
information concerning those programs to the school districts in
the service center's region.
(b) This section applies beginning with the 2009-2010
school year. This subsection expires June 1, 2010.
Sec. 7.157. DEVELOPMENT OF GRANT SYSTEM. (a) In developing
the performance-based grant system, the agency shall:
(1) identify each area of data collected for grant
programs and the method in which the agency collects the data;
(2) determine whether grant data that a school
district or charter school is required to collect is useful and
supports:
(A) a grant program's objectives; and
(B) the goals for academic performance and
accountability or another public education mission, objective, or
goal;
(3) determine whether grant data is analyzed and
disseminated efficiently; and
(4) review the agency's policies, procedures, and
reporting requirements relating to grant programs administered by
the agency to simplify and make more efficient the grant
application, award, and reporting processes for school districts
and charter schools.
(b) This section expires June 1, 2010.
Sec. 7.158. GRANT ADMINISTRATION DURING CERTAIN SCHOOL
YEARS; STATUS REPORT. (a) Not later than January 1, 2007, the
agency shall provide the legislature with a status report
concerning the agency's development of the grant system. The
report may suggest any statutory changes needed to facilitate a
full transition to a performance-based grant system.
(b) Beginning with the 2009-2010 school year, the agency
shall make the performance-based grant system fully available to
school districts and charter schools.
(c) This section expires June 1, 2010.
SECTION 2F.__. Subchapter A, Chapter 8, Education Code, is
amended by adding Section 8.0031 to read as follows:
Sec. 8.0031. TRAINING FOR MEMBERS OF BOARD OF DIRECTORS.
(a) The commissioner shall adopt rules prescribing training for
members of regional education service center boards of directors.
The training curriculum may include:
(1) an overview of this code and any rules adopted
under this code;
(2) a review of recent state and federal education
legislation, rules, and regulations;
(3) a review of the powers and duties of a regional
education service center board of directors; and
(4) a review of any statewide or regional strategic
planning applicable to regional education service centers.
(b) A member of a regional education service center board of
directors must complete any training required by commissioner rule.
SECTION 2F.__. Sections 8.051(b), (c), and (d), Education
Code, are amended to read as follows:
(b) Each regional education service center shall annually
develop and submit to the commissioner for approval a plan for
improvement. Each plan must include the purposes and description
of the services the center will provide to:
(1) campuses rated academically unacceptable
[identified as low-performing based on the indicators adopted]
under Section 39.072 [39.051];
(2) the lowest-performing campuses in the region; and
(3) other campuses.
(c) Each regional education service center shall provide
services that enable school districts to operate more efficiently
and economically, including collecting and disseminating:
(1) best practices information as provided by Section
7.010; and
(2) information concerning successful grant programs
to school districts as provided by Section 7.156.
(d) Each regional education service center shall maintain
core services for purchase by school districts and campuses. The
core services are:
(1) training and assistance in teaching each subject
area assessed under Section 39.023;
(2) training and assistance in providing each program
that qualifies for a funding allotment under Section 42.151,
42.152, 42.153, or 42.156;
(3) assistance specifically designed for a school
district or campus rated academically unacceptable under Section
39.072 [39.072(a) or a campus whose performance is considered
unacceptable based on the indicators adopted under Section 39.051];
(4) training and assistance to teachers,
administrators, members of district boards of trustees, and members
of site-based decision-making committees;
(5) assistance specifically designed for a school
district that is considered out of compliance with state or federal
special education requirements, based on the agency's most recent
compliance review of the district's special education programs; and
(6) assistance in complying with state laws and rules.
SECTION 2F.__. Subchapter A, Chapter 29, Education Code, is
amended by adding Sections 29.0162 and 29.0163 to read as follows:
Sec. 29.0162. INFORMATION REGARDING SPECIAL EDUCATION DUE
PROCESS HEARINGS. (a) The agency shall make available to a parent,
student, school district, attorney, or other interested person, and
shall place on the agency's Internet website, comprehensive, easily
understood information concerning the special education due
process hearing process.
(b) The information described by Subsection (a) must
include:
(1) a description of the steps in the due process
hearing process;
(2) the text of any applicable administrative,
procedural, or evidentiary rule;
(3) a description of any notice requirements;
(4) an explanation of options for alternative dispute
resolution, including mediation;
(5) an explanation of a resolution session;
(6) answers to frequently asked questions; and
(7) other sources of information, including
electronic sources of information, such as special education case
law available on the Internet.
Sec. 29.0163. COLLECTION AND ANALYSIS OF INFORMATION
CONCERNING SPECIAL EDUCATION HEARING OFFICERS. (a) The agency
shall collect and at least biennially analyze any information,
including complaint information, relating to the performance of a
special education hearing officer for use in assessing:
(1) the effectiveness of the due process hearing
process; and
(2) the performance of a special education hearing
officer.
(b) The agency shall use the information described by
Subsection (a) in determining whether to renew a contract with a
special education hearing officer.
(25) In Section 2G.02 of the bill, in amended Section
37.008(m), Education Code (page 66, lines 23 and 24), strike
"7.027, as added by Chapter 201, Acts of the 78th Legislature,
Regular Session, 2003" and substitute "7.028".
(26) In Section 2G.02 of the bill, in amended Section
37.008(m-1), Education Code (page 66, lines 38 and 39), strike
"7.027(a), as added by Chapter 201, Acts of the 78th Legislature,
Regular Session, 2003" and substitute "7.028(a)".
(27) Strike Section 4.54 of the bill (page 121, lines 53
through 64), and renumber the subsequent sections of Article 4
accordingly.
(28) In Part B, Article 5, of the bill (page 131, between
lines 1 and 2), add the following appropriately numbered section:
SECTION 5B.__. Section 21.453(b), Education Code, is
amended to read as follows:
(b) The commissioner may allocate funds from the account to
regional education service centers to provide staff development
resources to school districts that:
(1) are rated academically unacceptable;
(2) have one or more campuses rated academically
unacceptable [as low-performing]; or
(3) are otherwise in need of assistance as indicated
by the academic performance of students, as determined by the
commissioner.
(29) In Part B, Article 5, of the bill (page 131, between
lines 17 and 18), insert the following appropriately numbered
section:
SECTION 5B.__. Section 29.202(a), Education Code, is
amended to read as follows:
(a) A student is eligible to receive a public education
grant or to attend another public school in the district in which
the student resides under this subchapter if the student is
assigned to attend a public school campus:
(1) at which 50 percent or more of the students did not
perform satisfactorily on an assessment instrument administered
under Section 39.023(a) or (c) in any two of the preceding three
years; or
(2) that was, at any time in the preceding three years,
considered academically unacceptable [low-performing] under
Section 39.132.
(30) In Section 5B.17 of the bill, in amended Section
2175.304(c), Government Code (page 133, line 6), strike
"low-performing by the commissioner of education" and substitute
"academically unacceptable under Section 39.132, Education Code,
[low-performing by the commissioner of education]".
(31) In Part B, Article 5, of the bill (page 133, between
lines 23 and 24), add the following appropriately numbered section:
SECTION 5B.__. Section 302.006(c), Labor Code, is amended
to read as follows:
(c) To be eligible to receive a scholarship awarded under
this section, a person must:
(1) be employed in a child-care facility, as defined
by Section 42.002, Human Resources Code;
(2) intend to obtain a credential, certificate, or
degree specified in Subsection (b);
(3) agree to work for at least 18 additional months in
a child-care facility, as defined by Section 42.002, Human
Resources Code, that accepts federal Child Care Development Fund
subsidies and that, at the time the person begins to fulfill the
work requirement imposed by this subdivision, is located:
(A) within the attendance zone of a public school
campus considered academically unacceptable [low-performing] under
Section 39.132, Education Code; or
(B) in an economically disadvantaged community,
as determined by the commission; and
(4) satisfy any other requirements adopted by the
commission.
(32) Renumber the sections of Part B, Article 5, of the bill
accordingly.
(33) In Section 6.01(4) of the bill (page 134, line 18),
between "7.006," and "29.056(h),", insert "8.010,".
(34) In Section 6.01(4) of the bill (page 134, line 19),
between "(f)," and "and 42.253(e-1),", insert "39.051(d), 39.073,
39.074,".