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Amend Amendment No. 13 by Hegar to CSSB 422 as follows:                      
	(1)  Strike page 1, lines 11-23, and substitute the 
following:               
	SECTION __. Section 8.103, Education Code, is amended to read 
as follows:    
	Sec. 8.103.  ANNUAL EVALUATION.  (a)  Except as provided by 
Subchapter E, the [The] commissioner shall conduct an annual 
evaluation of each executive director and regional education 
service center. Each evaluation must include:
		(1)  an audit of the center's finances;                                       
		(2)  a review of the center's performance on the 
indicators adopted under Section 8.101;
		(3)  a review of client satisfaction with services 
provided under Subchapter B;
		(4)  a survey of the center's board of directors 
concerning the performance of the center's executive director;
		(5)  a review of:                                                      
			(A)  the number of programs offered by the center 
to improve student performance on assessment instruments 
administered under Section 39.023; and
			(B)  the attendance rate at each program described 
by Paragraph (A) during each year of the preceding two years;
		(6)  a review of the center's performance on four goals 
established by the center for improving the center's performance; 
and
		(7) [(4)] a review of any other factor the commissioner 
determines to be appropriate.
	(b)  The agency shall post the results of an evaluation 
conducted under this section on the agency's Internet website.
	SECTION __.  Subchapter C, Chapter 8, Education Code, is 
amended by adding Section 8.1031 to read as follows:
	Sec. 8.1031.  RATING SYSTEM.  (a)  The commissioner shall 
establish a system for rating regional education service centers on 
the basis of the results of evaluations conducted under Section 
8.103.
	(b)  The rating system must include a minimum level of 
performance that a regional education service center is expected to 
achieve on each area evaluated under Section 8.103 and on the 
overall evaluation. A center that does not meet the minimum level of 
overall performance is considered to be low-performing.
	SECTION __. Section 8.104, Education Code, is amended to read 
as follows:    
	Sec. 8.104. SANCTIONS. (a)  The commissioner shall develop a 
system of corrective actions to require a regional education 
service center that the commissioner determines to be 
low-performing [deficient in an accountability measure] under 
Section 8.1031 [8.103].
	(b)  The actions must include, in increasing order of 
severity:       
		(1)  conducting an on-site investigation of the center;                       
		(2)  requiring the center to send notice [of each 
deficiency] to each school district and campus in the center's 
region or served by the center the previous year concerning any area 
of performance, including overall performance, that is below the 
minimum level of performance established for that area under 
Section 8.1031; and
		(3)  requiring the center to prepare for the 
commissioner's approval a plan to address each area of performance 
that is below the minimum level of performance established for that 
area under Section 8.1031 [deficiency;
		[(4)  appointing a master to oversee the operations of 
the center;
		[(5)  replacing the executive director or board of 
directors; and
		[(6)  in the case of deficient performance in two 
consecutive years, closing the center].
	(c)  In addition to the actions required under Subsection 
(b), the commissioner shall take the following actions:
		(1)  for a regional education service center that has 
been low-performing for one school year, place the center on 
probation;
		(2)  for a regional education service center that has 
been low-performing for two consecutive school years, continue the 
center's probation and:
			(A)  withhold any state money to which the center 
is otherwise entitled; and
			(B)  distribute the money withheld to school 
districts in the region that the center serves; and
			(3)  for a regional education service center that 
has been low-performing for three consecutive school years:
			(A)  both:                                                            
				(i)  appoint a master to oversee the 
operations of the center; and 
				(ii)  replace the executive director or board 
of directors; or     
			(B)  order the closure of the center.                                 
	(2)  Strike page 3, line 29, through page 4, line 7, and 
substitute the following:
	Sec. 8.103.  ANNUAL EVALUATION. (a) The commissioner shall 
conduct an annual evaluation of each executive director and 
regional education service center. Each evaluation must include:
		(1)  an audit of the center's finances;                                       
		(2)  a review of the center's performance on the 
indicators adopted under Section 8.101;
		(3)  a review of client satisfaction with services 
provided under Subchapter B;
		(4)  a survey of the center's board of directors 
concerning the performance of the center's executive director;
		(5)  a review of:                                                      
			(A)  the number of programs offered by the center 
to improve student performance on assessment instruments 
administered under Section 39.023; and
			(B)  the attendance rate at each program described 
by Paragraph (A) during each year of the preceding two years;
		(6)  a review of the center's performance on four goals 
established by the center for improving the center's performance; 
and
		(7) [(4)]  a review of any other factor the commissioner 
determines to be appropriate.
	(b)  The agency shall post the results of an evaluation 
conducted under this section on the agency's Internet website.
	(3)  On page 4, between lines 16 and 17, insert the following:                 
	SECTION __.  (a)  As soon as practicable after the effective 
date of this Act, the commissioner of education shall establish a 
rating system for regional education service centers as required by 
Section 8.1031, Education Code, as added by this Act.
	(b)  The Texas Education Agency shall begin rating regional 
education service centers as required by Section 8.1031, Education 
Code, as added by this Act, beginning with the 2006-2007 school 
year.
	(c)  The commissioner of education may not take an action 
under Section 8.104, Education Code, as amended by this Act, based 
on the performance of a regional education service center for the 
2005-2006 school year or an earlier school year.