By: Grusendorf, Keffer of Eastland, Hill H.B. No. 2
(Senate Sponsor-Shapiro)
(In the Senate - Received from the House March 14, 2005;
March 22, 2005, read first time and referred to Committee on
Education; May 2, 2005, reported adversely, with favorable
Committee Substitute by the following vote: Yeas 5, Nays 0,
2 present not voting; May 2, 2005, sent to printer.)
COMMITTEE SUBSTITUTE FOR H.B. No. 2 By: Shapiro
A BILL TO BE ENTITLED
AN ACT
relating to public education, public school finance matters, and the
imposition of a state ad valorem tax; imposing criminal penalties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. PUBLIC SCHOOL FINANCE
PART A. EDUCATION FUNDING AND SCHOOL PROPERTY TAX RELIEF
SECTION 1A.01. Sections 41.002(a) and (e), Education Code,
are amended to read as follows:
(a) A school district may not have a wealth per student that
exceeds $339,000 [$305,000].
(e) Notwithstanding Subsection (a), and except as provided
by Subsection (g), in accordance with a determination of the
commissioner, the wealth per student that a school district may
have after exercising an option under Section 41.003(2) or (3) may
not be less than the amount needed to maintain state and local
revenue in an amount equal to state and local revenue per weighted
student for maintenance and operation of the district for the
1992-1993 school year less the district's current year distribution
per weighted student from the available school fund, other than
amounts distributed under Chapter 31, if the district imposes an
effective tax rate for maintenance and operation of the district
equal to the greater of the district's current tax rate or the
maximum maintenance tax rate permitted under Section 45.003 [$1.50
on the $100 valuation of taxable property].
SECTION 1A.02. Section 41.157(d), Education Code, is
amended to read as follows:
(d) Notwithstanding Section 45.003, the consolidated taxing
district may levy, assess, and collect a maintenance tax for the
benefit of the component districts at a rate that exceeds the
maximum maintenance tax rate permitted under Section 45.003 [$1.50
per $100 valuation of taxable property] to the extent necessary to
pay contracted obligations on the lease purchase of permanent
improvements to real property entered into on or before May 12,
1993. The proposition to impose taxes at the necessary rate must be
submitted to the voters in the manner provided by Section 45.003.
SECTION 1A.03. 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 quotient of the sum of
attendance for each full-time equivalent day of instruction divided
by the minimum number of days of instruction as described under
Section 25.081(a).
SECTION 1A.04. Subchapter A, Chapter 42, Education Code, is
amended by adding Section 42.008 to read as follows:
Sec. 42.008. REPORT ON EDUCATION SPENDING. Before each
regular session of the legislature, the Legislative Budget Board
shall submit to the commissioner and the legislature a report that
includes:
(1) a description of the amount of all spending on
primary and secondary education in this state, disaggregated by
federal, state, and local spending and spending by private
entities; and
(2) an analysis of the state's portion of spending.
SECTION 1A.05. Section 42.2512, Education Code, is amended
by adding Subsection (a-1) to read as follows:
(a-1) In addition to any amounts to which a school district
is entitled under Section 42.2541, 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, as determined
by the commissioner, equal to the product of the following amount,
as applicable, 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:
(1) $1,500; or
(2) $2,000, if H.B. No. 3, Acts of the 79th
Legislature, Regular Session, 2005, takes effect immediately.
SECTION 1A.06. Section 42.252(a), Education Code, is
amended to read as follows:
(a) Each school district's share of the Foundation School
Program is determined by the following formula:
LFA = TR X DPV
where:
"LFA" is the school district's local share;
"TR" is a tax rate which for each hundred dollars of valuation
is an effective tax rate of $0.76 [$0.86]; and
"DPV" is the taxable value of property in the school district
for the preceding tax year determined under Subchapter M, Chapter
403, Government Code.
SECTION 1A.07. Section 42.253, Education Code, is amended
by adding Subsection (e-2) to read as follows:
(e-2) For the 2005-2006 school year, the limit authorized by
Subsection (e) is reduced by $0.20. This subsection expires
September 1, 2006.
SECTION 1A.08. Subchapter E, Chapter 42, Education Code, is
amended by adding Sections 42.2541 and 42.2542 to read as follows:
Sec. 42.2541. ADDITIONAL TRANSITIONAL AID. (a) In this
section, "weighted average daily attendance" has the meaning
assigned by Section 42.302.
(b) Notwithstanding Section 42.253, a school district is
entitled to the amount of state revenue necessary to maintain state
and local revenue in an amount equal to the sum of:
(1) the amount of state and local revenue per student
in weighted average daily attendance for maintenance and operation
of the district that the district received for the 2004-2005 school
year, including any amounts the district received under Rider 82,
page III-23, Chapter 1330, Acts of the 78th Legislature, Regular
Session, 2003 (the General Appropriations Act); and
(2) an amount equal to $37 per weighted student in
average daily attendance.
(c) The commissioner may increase the amount to which a
school district is entitled under Subsection (b) as the
commissioner determines necessary.
(d) The commissioner shall determine the amount of state
funds to which a school district is entitled under this section,
including the amount per student in weighted average daily
attendance, and shall make that determination available to the
Legislative Budget Board. The commissioner's determination is
final and may not be appealed.
Sec. 42.2542. TEMPORARY LIMITATIONS ON AID. (a)
Notwithstanding any other provision of this subtitle, for the
2005-2006 school year, the commissioner shall withhold from a
school district the amount of state funds necessary to ensure that
the district does not receive an amount of state and local revenue
per student in weighted average daily attendance that is greater
than 103 percent of the amount to which the district is entitled
under Section 42.2541(b)(1).
(b) The commissioner shall determine the amount of state
funds required to be withheld under this section. The
commissioner's determination is final and may not be appealed.
(c) This section expires September 1, 2006.
SECTION 1A.09. Subchapter E, Chapter 42, Education Code, is
amended by adding Section 42.261 to read as follows:
Sec. 42.261. USE OF CERTAIN REVENUE FOR ENHANCED SUPPORT
STAFF COMPENSATION. (a) Beginning with the 2005-2006 school year,
a school district must use state and local maintenance and
operations revenue to provide enhanced compensation to district
support staff.
(b) The commissioner shall adopt rules necessary to
implement this section. The rules must ensure compensation provided
to district support staff described by Section 22.007 is increased
by the amounts specified by that section.
SECTION 1A.10. Section 42.302, Education Code, is amended
by amending Subsection (a) and adding Subsection (a-1) to read as
follows:
(a) Each school district is guaranteed a specified amount
per weighted student in state and local funds for each cent of tax
effort over that required for the district's local fund assignment
up to the maximum level specified in this subchapter. The amount of
state support, subject only to the maximum amount under Section
42.303, is determined by the formula:
GYA = (GL X WADA X DTR X 100) - LR
where:
"GYA" is the guaranteed yield amount of state funds to be
allocated to the district;
"GL" is the dollar amount guaranteed level of state and local
funds per weighted student per cent of tax effort, which is the
amount of district tax revenue per weighted student, per cent of tax
effort available to a school district at the 90th percentile in
wealth per student, as determined by the commissioner [$27.14] or a
greater amount for any year provided by appropriation;
"WADA" is the number of students in weighted average daily
attendance, which is calculated by dividing the sum of the school
district's allotments under Subchapters B and C, less any allotment
to the district for transportation, any allotment under Section
42.158, and 50 percent of the adjustment under Section 42.102, by
the basic allotment for the applicable year;
"DTR" is the district [enrichment] tax rate of the school
district, which is determined by subtracting the amounts specified
by Subsection (b) from the total amount of maintenance and
operations taxes collected by the school district for the
applicable school year and dividing the difference by the quotient
of the district's taxable value of property as determined under
Subchapter M, Chapter 403, Government Code, or, if applicable,
under Section 42.2521, divided by 100; and
"LR" is the local revenue, which is determined by multiplying
"DTR" by the quotient of the district's taxable value of property as
determined under Subchapter M, Chapter 403, Government Code, or, if
applicable, under Section 42.2521, divided by 100.
(a-1) In this section, "wealth per student" means a school
district's taxable value of property as determined under Subchapter
M, Chapter 403, Government Code, divided by the number of students
in weighted average daily attendance in the district.
SECTION 1A.11. Section 42.303, Education Code, is amended
to read as follows:
Sec. 42.303. LIMITATION ON [ENRICHMENT] TAX RATE. (a) The
district [enrichment] tax rate ("DTR") under Section 42.302 may not
exceed $0.69 [$0.64] per $100 of valuation, or a greater amount for
any year provided by appropriation.
(b) Notwithstanding Subsection (a), for the 2005 tax year,
the district tax rate ("DTR") under Section 42.302 may not exceed
$0.54 per $100 of valuation. This subsection expires September 1,
2006.
SECTION 1A.12. Section 45.003, Education Code, is amended
by amending Subsection (d) and adding Subsections (e) and (f) to
read as follows:
(d) A proposition submitted to authorize the levy of
maintenance taxes must include the question of whether the
governing board or commissioners court may levy, assess, and
collect annual ad valorem taxes for the further maintenance of
public schools, at a rate not to exceed the rate, which may be not
more than $1.45 [$1.50] on the $100 valuation of taxable property in
the district, stated in the proposition.
(e) Notwithstanding Subsection (d), for the 2005 and 2006
tax years, a school district may not impose a maintenance tax at a
rate that exceeds $1.30 per $100 of valuation. A district may not
exceed the rate described by this subsection in a subsequent school
year unless authorized by a majority of the qualified voters of the
district voting at an election held for that purpose.
(f) An election held before January 1, 2005, authorizing a
maintenance tax at a rate of at least $1.30 on the $100 valuation of
taxable property in the district is sufficient to authorize a rate
of $1.30 or less for the 2005 tax year or a subsequent tax year.
SECTION 1A.13. Sections 45.006(b) and (f), Education Code,
are amended to read as follows:
(b) Notwithstanding Section 45.003, a school district may
levy, assess, and collect maintenance taxes at a rate that exceeds
the maximum maintenance tax rate permitted under Section 45.003
[$1.50 per $100 valuation of taxable property] if:
(1) additional ad valorem taxes are necessary to pay a
debt of the district that:
(A) resulted from the rendition of a judgment
against the district before May 1, 1995;
(B) is greater than $5 million;
(C) decreases a property owner's ad valorem tax
liability;
(D) requires the district to refund to the
property owner the difference between the amount of taxes paid by
the property owner and the amount of taxes for which the property
owner is liable; and
(E) is payable according to the judgment in more
than one of the district's fiscal years; and
(2) the additional taxes are approved by the voters of
the district at an election held for that purpose.
(f) The governing body of a school district that adopts a
tax rate that exceeds the maximum maintenance tax rate permitted
under Section 45.003 [$1.50 per $100 valuation of taxable property]
may set the amount of the exemption from taxation authorized by
Section 11.13(n), Tax Code, at any time before the date the
governing body adopts the district's tax rate for the tax year in
which the election approving the additional taxes is held.
PART B. EDUCATION FUNDING AND STATE PROPERTY TAX
SECTION 1B.01. Section 42.002(b), Education Code, is
amended to read as follows:
(b) The Foundation School Program consists of:
(1) a basic program, as provided by this chapter, that
provides for [two tiers that in combination provide for:
[(A)] sufficient financing for all school
districts to provide a basic program of education that is rated
academically acceptable or higher under Section 39.072 and meets
other applicable legal standards; [and]
(2) an enrichment program, as provided by Subchapter
F, that includes a guaranteed yield component to provide [(B)]
substantially equal access to funds to provide an enriched program;
and
(3) [(2)] a facilities component as provided by
Chapter 46.
SECTION 1B.02. Section 42.007, Education Code, is amended
by amending Subsection (c) and adding Subsection (e) to read as
follows:
(c) The funding elements must include:
(1) an accreditation [a basic] allotment for the
purposes of Section 42.101 that[, when combined with the guaranteed
yield component provided by Subchapter F,] represents the cost per
student of a regular education program that meets all mandates of
law and regulation;
(2) adjustments designed to reflect the variation in
known resource costs and costs of education beyond the control of
school districts;
(3) appropriate program cost differentials and other
funding elements for the programs authorized under Subchapter C,
with the program funding level expressed as dollar amounts and as
weights applied to the adjusted accreditation [basic] allotment for
the appropriate year;
(4) the maximum guaranteed level of qualified state
and local funds per student for the purposes of the enrichment
program under Subchapter F;
(5) the enrichment [and facilities] tax rate under
Subchapter F;
(6) the computation of students in weighted average
daily attendance under Section 42.302; and
(7) the amount to be appropriated for the school
facilities assistance program under Chapter 46.
(e) Notwithstanding Subsection (d), the board shall
contract for a comprehensive study of the funding elements. The
board shall report the results of the study to the commissioner and
the legislature not later than December 1, 2006. This subsection
expires January 1, 2007.
SECTION 1B.03. The heading to Subchapter B, Chapter 42,
Education Code, is amended to read as follows:
SUBCHAPTER B. BASIC PROGRAM [ENTITLEMENT]
SECTION 1B.04. Section 42.101, Education Code, is amended
to read as follows:
Sec. 42.101. ACCREDITATION [BASIC] ALLOTMENT. For each
student in average daily attendance, not including the time
students spend each day in special education programs in an
instructional arrangement other than mainstream or career and
technology education programs, for which an additional allotment is
made under Subchapter C, a district is entitled to an accreditation
allotment of $4,300 [$2,537]. A greater amount for any school year
may be provided by appropriation.
SECTION 1B.05. Section 42.102, Education Code, is amended
to read as follows:
Sec. 42.102. COST OF EDUCATION ADJUSTMENT. (a) The
accreditation [basic] allotment for each district is adjusted to
reflect the geographic variation in known resource costs and costs
of education due to factors beyond the control of the school
district. The amount of the adjustment is 71 percent of the total
amount that would result from application of the cost of education
index adopted under this section, or a greater amount for any year
provided by appropriation.
(b) Except as provided by Subsection (c), the [The] cost of
education adjustment is determined using the average of the three
most recent index recomputations and adjustments adopted by the
Legislative Budget Board under Subsection (d) [cost of education
index adjustment adopted by the foundation school fund budget
committee and contained in Chapter 203, Title 19, Texas
Administrative Code, as that chapter existed on March 26, 1997].
(b-1) Except as provided by Subsection (c), the cost of
education index to be used in determining the cost of education
adjustment for the following school years is determined by the
following formulas:
(1) for the 2006-2007 school year:
CEI = (TFE + (5 x PCEI))/6
(2) for the 2007-2008 school year:
CEI = ((2 x TFE) + (4 x PCEI))/6
(3) for the 2008-2009 school year:
CEI = ((2 x TFE) + (3 x PCEI) + LBBA)/6
(4) for the 2009-2010 school year:
CEI = ((2 x TFE) + (2 x PCEI) + (2 x LBBA))/6
(5) for the 2010-2011 school year:
CEI = ((2 x TFE) + PCEI + (3 x LBBB))/6; and
(6) for the 2011-2012 school year:
CEI = ((2 x TFE) + (4 x LBBB))/6
where:
"CEI" is the index to be used;
"TFE" is the teacher fixed effects index in the 2004 report
commissioned by the Joint Select Committee on Public School Finance
of the 78th Legislature;
"PCEI" is the index applied during the 2005-2006 school year;
"LBBA" is the index adopted by the Legislative Budget Board
in accordance with Subsection (d) for the state fiscal biennium
beginning September 1, 2008; and
"LBBB" is the index adopted by the Legislative Budget Board
in accordance with Subsection (d) for the state fiscal biennium
beginning September 1, 2010.
(c) If the adjustment provided by this section for a school
year is less than the adjustment to which a school district would
have been entitled using the index applied during the 2005-2006
school year, the district's adjustment shall be computed using the
index applied during the 2005-2006 school year.
(d) The Legislative Budget Board shall:
(1) conduct a study each biennium and recompute the
cost of education index; and
(2) adopt adjustments as the board determines are
necessary to ensure that the cost of education index reflects
current variations in known resource costs and costs of education,
including costs related to social security, due to factors beyond
the control of a school district.
(e) The board's determination under Subsection (d) is final
and may not be appealed.
(f) Subsection (b) applies beginning with the 2012-2013
school year. Subsection (b-1) and this subsection expire September
1, 2013.
SECTION 1B.06. Section 42.103, Education Code, is amended
by amending Subsections (a), (c), and (d) and adding Subsections
(c-1), (c-2), (d-1), and (f) to read as follows:
(a) The accreditation [basic] allotment for certain small
and mid-sized districts is adjusted in accordance with this
section. In this section:
(1) "SA" ["AA"] is the district's size-adjusted
accreditation [adjusted] allotment per student;
(2) "ADA" is the number of students in average daily
attendance for which the district is entitled to an allotment under
Section 42.101; and
(3) "AA" ["ABA"] is the adjusted accreditation [basic]
allotment determined under Section 42.102.
(c) The accreditation [basic] allotment of a school
district that [contains less than 300 square miles and] has not more
than 1,600 students in average daily attendance is adjusted by
applying the following formula, or the formula under Subsection (d)
if that results in a greater allotment:
SA = (1 + ((1,600 - ADA) X .0004)) X AA
[AA = (1 + ((1,600 - ADA) X .00025)) X ABA]
(c-1) Notwithstanding Subsection (c), the accreditation
allotment of a school district that has not more than 1,600 students
in average daily attendance is adjusted for the following school
years by applying the following formulas, or the appropriate
formula under Subsection (d-1) if that results in a greater
allotment:
(1) for the 2006-2007 school year:
SA = (1 + ((1,600 - ADA) X .00027)) X AA
(2) for the 2007-2008 school year:
SA = (1 + ((1,600 - ADA) X .00029)) X AA
(3) for the 2008-2009 school year:
SA = (1 + ((1,600 - ADA) X .00031)) X AA
(4) for the 2009-2010 school year:
SA = (1 + ((1,600 - ADA) X .00033)) X AA; and
(5) for the 2010-2011 school year:
SA = (1 + ((1,600 - ADA) X .00036)) X AA
(c-2) Notwithstanding Subsection (c-1), for the 2006-2007,
2007-2008, 2008-2009, 2009-2010, or 2010-2011 school year, the
accreditation allotment of a school district that contains at least
300 square miles and has not more than 1,600 students in average
daily attendance is adjusted by applying the following formula, or
the appropriate formula under Subsection (d-1) if that results in a
greater allotment:
SA = (1 + ((1,600 - ADA) X .0004)) X AA
(d) The accreditation [basic] allotment of a school
district that offers a kindergarten through grade 12 program and
has less than 5,000 students in average daily attendance is
adjusted by applying the formula, of the following formulas, that
results in the greatest adjusted allotment:
(1) the formula in Subsection [(b) or] (c) [for which
the district is eligible]; or
(2) SA = (1 + ((5,000 - ADA) X .00004)) X AA
[AA = (1 + ((5,000 - ADA) X .000025)) X ABA].
(d-1) Notwithstanding Subsection (d), the accreditation
allotment of a school district that offers a kindergarten through
grade 12 program and has less than 5,000 students in average daily
attendance is adjusted for the following school years by applying
the following formulas, or the formula under Subsection (c) if that
results in a greater allotment:
(1) for the 2006-2007 school year:
SA = (1 + ((5,000 - ADA) X .000027)) X AA
(2) for the 2007-2008 school year:
SA = (1 + ((5,000 - ADA) X .000029)) X AA
(3) for the 2008-2009 school year:
SA = (1 + ((5,000 - ADA) X .000031)) X AA
(4) for the 2009-2010 school year:
SA = (1 + ((5,000 - ADA) X .000033)) X AA; and
(5) for the 2010-2011 school year:
SA = (1 + ((5,000 - ADA) X .000036)) X AA
(f) Subsections (c) and (d) apply beginning with the
2011-2012 school year. Subsections (c-1), (c-2), and (d-1) and
this subsection expire September 1, 2012.
SECTION 1B.07. Sections 42.104, 42.105, and 42.106,
Education Code, are amended to read as follows:
Sec. 42.104. USE OF SMALL OR MID-SIZED DISTRICT ADJUSTMENT
IN CALCULATING SPECIAL ALLOTMENTS. In determining the amount of a
special allotment under Subchapter C for a district to which
Section 42.103 applies, a district's adjusted accreditation
[basic] allotment is considered to be the district's adjusted
accreditation allotment determined under Section 42.103.
Sec. 42.105. SPARSITY ADJUSTMENT. Notwithstanding
Sections 42.101, 42.102, and 42.103, a school district that has
fewer than 130 students in average daily attendance shall be
provided an adjusted accreditation [basic] allotment on the basis
of 130 students in average daily attendance if it offers a
kindergarten through grade 12 program and has preceding or current
year's average daily attendance of at least 90 students or is 30
miles or more by bus route from the nearest high school district. A
district offering a kindergarten through grade 8 program whose
preceding or current year's average daily attendance was at least
50 students or which is 30 miles or more by bus route from the
nearest high school district shall be provided an adjusted
accreditation [basic] allotment on the basis of 75 students in
average daily attendance. An average daily attendance of 60
students shall be the basis of providing the adjusted accreditation
[basic] allotment if a district offers a kindergarten through grade
6 program and has preceding or current year's average daily
attendance of at least 40 students or is 30 miles or more by bus
route from the nearest high school district.
Sec. 42.106. ADJUSTED PROPERTY VALUE FOR DISTRICTS NOT
OFFERING ALL GRADE LEVELS. For purposes of this chapter, the
taxable value of property of a school district that contracts for
students residing in the district to be educated in another
district under Section 25.039(a) is adjusted by applying the
formula:
ADPV = DPV - (TN/MTR) [(TN/.015)]
where:
"ADPV" is the district's adjusted taxable value of property;
"DPV" is the taxable value of property in the district for the
preceding tax year determined under Subchapter M, Chapter 403,
Government Code; [and]
"TN" is the total amount of tuition required to be paid by the
district under Section 25.039 for the school year for which the
adjustment is made, not to exceed the amount specified by
commissioner rule under Section 25.039(b); and
"MTR" is the maximum maintenance tax rate permitted under
Section 45.003, expressed as a rate to be applied to the total
valuation of taxable property.
SECTION 1B.08. Sections 42.151(a), (b), (e), (g), and (k),
Education Code, are amended to read as follows:
(a) For each student in average daily attendance in a
special education program under Subchapter A, Chapter 29, in a
mainstream instructional arrangement, a school district is
entitled to an annual allotment equal to the adjusted accreditation
[basic] allotment multiplied by 1.1. For each full-time equivalent
student in average daily attendance in a special education program
under Subchapter A, Chapter 29, in an instructional arrangement
other than a mainstream instructional arrangement, a district is
entitled to an annual allotment equal to the adjusted accreditation
[basic] allotment multiplied by a weight determined according to
instructional arrangement as follows:
Homebound 5.0
Hospital class 3.0
Speech therapy 5.0
Resource room 3.0
Self-contained, mild and moderate, regular campus 3.0
Self-contained, severe, regular campus 3.0
Off home campus 2.7
Nonpublic day school 1.7
Vocational adjustment class 2.3
(b) A special instructional arrangement for students with
disabilities residing in care and treatment facilities, other than
state schools, whose parents or guardians do not reside in the
district providing education services shall be established under
the rules of the commissioner [State Board of Education]. The
funding weight for this arrangement shall be 4.0 for those students
who receive their education service on a local school district
campus. A special instructional arrangement for students with
disabilities residing in state schools shall be established under
the rules of the commissioner [State Board of Education] with a
funding weight of 2.8.
(e) The commissioner [State Board of Education] by rule
shall prescribe the qualifications an instructional arrangement
must meet in order to be funded as a particular instructional
arrangement under this section. In prescribing the qualifications
that a mainstream instructional arrangement must meet, the
commissioner [board] shall establish requirements that students
with disabilities and their teachers receive the direct, indirect,
and support services that are necessary to enrich the regular
classroom and enable student success.
(g) The commissioner [State Board of Education] shall adopt
rules and procedures governing contracts for residential placement
of special education students. The legislature shall provide by
appropriation for the state's share of the costs of those
placements.
(k) A school district that provides an extended year program
required by federal law for special education students who may
regress is entitled to receive funds in an amount equal to 75
percent, or a lesser percentage determined by the commissioner, of
the adjusted accreditation [basic] allotment [or adjusted
allotment, as applicable,] for each full-time equivalent student in
average daily attendance, multiplied by the amount designated for
the student's instructional arrangement under this section, for
each day the program is provided divided by the number of days in
the minimum school year. The total amount of state funding for
extended year services under this section may not exceed $10
million per year. A school district may use funds received under
this section only in providing an extended year program.
SECTION 1B.09. Sections 42.152(a), (e), (h), and (k),
Education Code, are amended to read as follows:
(a) For each student who is educationally disadvantaged or
who is a student who does not have a disability and resides in a
residential placement facility in a district in which the student's
parent or legal guardian does not reside, a district is entitled to
an annual allotment equal to the adjusted accreditation [basic]
allotment multiplied by 0.2, and by 2.41 for each full-time
equivalent student who is in a remedial and support program under
Section 29.081 because the student is pregnant.
(e) The commissioner may:
(1) retain a portion of the total amount allotted
under Subsection (a) that the commissioner considers appropriate to
finance [intensive accelerated instruction programs and] study
guides provided under Section 39.024(c) [Sections 39.024(b) and
(c)]; and
(2) reduce each district's basic program [tier one]
allotments in the same manner described for a reduction in
allotments under Section 42.253.
(h) After deducting the amount withheld under Subsection
(f) from the total amount appropriated for the allotment under
Subsection (a), the commissioner shall reduce each district's basic
program [tier one] allotments in the same manner described for a
reduction in allotments under Section 42.253 and shall allocate
funds to each district accordingly.
(k) After deducting the amount withheld under Subsection
(i) from the total amount appropriated for the allotment under
Subsection (a), the commissioner shall reduce each district's basic
program [tier one] allotments in the same manner described for a
reduction in allotments under Section 42.253.
SECTION 1B.10. Section 42.153, Education Code, is amended
by amending Subsection (a) and adding Subsections (a-1) and (d) to
read as follows:
(a) Except as provided by Subsection (a-1), for [For] each
student in average daily attendance in a bilingual education or
special language program under Subchapter B, Chapter 29, a district
is entitled to an annual allotment equal to the adjusted
accreditation [basic] allotment multiplied by 0.1.
(a-1) This subsection applies only to funding for students
who have been enrolled in a bilingual education or special language
program for less than three years. The commissioner by rule shall
determine a method for determining whether a student has been
enrolled in a program for less than three years. For each student
in average daily attendance in a bilingual education or special
language program under Subchapter B, Chapter 29, who has been
enrolled in the program for less than three years, a district is
entitled to an annual allotment equal to the adjusted accreditation
allotment multiplied by a weight according to the grade level at
which the student entered the program, as follows:
Prekindergarten-Grade 2 0.12
Grades 3-5 0.18
Grades 6-8 0.24
Grades 9-12 0.3
(d) A district is not entitled to an allotment under this
section for a student who meets the criteria for transferring out of
the district's bilingual education or special language program but
continues participating in the program under Section 29.056(i).
SECTION 1B.11. Sections 42.154(a) and (e), Education Code,
are amended to read as follows:
(a) For each full-time equivalent student in average daily
attendance in an approved career and technology education program
in grades nine through 12 or in career and technology education
programs for students with disabilities in grades seven through 12,
a district is entitled to an annual allotment equal to the adjusted
accreditation [basic] allotment multiplied by a weight of 1.35.
(e) Out of the total statewide allotment for career and
technology education under this section, the commissioner shall set
aside an amount specified in the General Appropriations Act, which
may not exceed an amount equal to one percent of the total amount
appropriated, to support regional career and technology education
planning. After deducting the amount set aside under this
subsection from the total amount appropriated for career and
technology education under this section, the commissioner shall
reduce each district's basic program [tier one] allotments in the
same manner described for a reduction in allotments under Section
42.253.
SECTION 1B.12. Sections 42.156(a) and (d), Education Code,
are amended to read as follows:
(a) For each identified student a school district serves in
a program for gifted and talented students that the district
certifies to the commissioner as complying with Subchapter D,
Chapter 29, a district is entitled to an annual allotment equal to
the district's adjusted accreditation [basic] allotment as
determined under Section 42.102 or Section 42.103, as applicable,
multiplied by .12 for each school year or a greater amount provided
by appropriation.
(d) If the amount of state funds for which school districts
are eligible under this section exceeds the amount of state funds
appropriated in any year for the programs, the commissioner shall
reduce each district's basic program [tier one] allotments in the
same manner described for a reduction in allotments under Section
42.253.
SECTION 1B.13. Section 42.157(a), Education Code, is
amended to read as follows:
(a) Except as provided by Subsection (b), for each student
in average daily attendance who is using a public education grant
under Subchapter G, Chapter 29, to attend school in a district other
than the district in which the student resides, the district in
which the student attends school is entitled to an annual allotment
equal to the adjusted accreditation [basic] allotment multiplied by
a weight of 0.1.
SECTION 1B.14. Section 42.251, Education Code, is amended
to read as follows:
Sec. 42.251. FINANCING; GENERAL RULE. (a) The sum of the
accreditation [basic] allotment under Subchapter B and the special
allotments under Subchapter C, computed in accordance with this
chapter, constitute the basic program [tier one] allotments. The
sum of the basic program [tier one] allotments and the enrichment
program [guaranteed yield] allotments under Subchapter F, computed
in accordance with this chapter, constitute the total cost of the
Foundation School Program.
(b) The program shall be financed by:
(1) revenue generated by the state ad valorem tax
under Section 3-a, Article VIII, Texas Constitution;
(2) ad valorem tax revenue generated by a [an
equalized] uniform school district effort;
(3) [(2)] ad valorem tax revenue generated by local
school district effort for an enrichment program in accordance with
Subchapter F in excess of the [equalized] uniform school district
effort;
(4) [(3)] state available school funds distributed in
accordance with law; and
(5) [(4)] state funds appropriated for the purposes of
public school education and allocated to each district in an amount
sufficient to finance the cost of each district's Foundation School
Program not covered by other funds specified in this subsection.
SECTION 1B.15. Section 42.2512(a), Education Code, is
amended to read as follows:
(a) In addition to any amounts to which a school district is
entitled under Section 42.2541, 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, as determined
by the commissioner, equal to the [difference, if any, between:
[(1) an amount equal to the] product of the following
amount, as applicable, [$3,000] 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:
(1) $3,000; or
(2) $3,500, if H.B. No. 3, Acts of the 79th
Legislature, Regular Session, 2005, takes effect immediately [; and
[(2) an amount equal to 80 percent of the amount of
additional funds to which the district is entitled due to the
increases made by S.B. No. 4, Acts of the 76th Legislature, Regular
Session, 1999, to:
[(A) the equalized wealth level under Section
41.002;
[(B) the basic allotment under Section 42.101;
and
[(C) the guaranteed level of state and local
funds per weighted student per cent of tax effort under Section
42.302].
SECTION 1B.16. Section 42.2515(a), Education Code, is
amended to read as follows:
(a) For each 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
amount of all tax credits credited against ad valorem taxes of the
district in that year under Subchapter D, Chapter 313, Tax Code.
SECTION 1B.17. The heading to Section 42.252, Education
Code, is amended to read as follows:
Sec. 42.252. LOCAL SHARE OF BASIC PROGRAM COST [(TIER
ONE)].
SECTION 1B.18. Section 42.252, Education Code, is amended
by amending Subsections (a) and (d) and adding Subsection (a-1) to
read as follows:
(a) Each school district's share of the basic program under
the Foundation School Program is determined by the following
formula:
LFA = TR X DPV
where:
"LFA" is the school district's local share;
"TR" is a tax rate which for each hundred dollars of valuation
is, except as provided by Subsection (a-1), an adopted [effective]
tax rate of $0.25 [$0.86]; and
"DPV" is the taxable value of property in the school district
for the preceding tax year determined under Subchapter M, Chapter
403, Government Code.
(a-1) If the commissioner determines that a school district
can generate tax revenue in an amount equal to the amount of the
district's basic program entitlement under this chapter at an
adopted tax rate less than $0.25 for each $100 of taxable value of
property, the rate determined by the commissioner is the tax rate
("TR") described by Subsection (a) for purposes of determining the
district's share of the Foundation School Program. If the district
adopts a tax rate greater than the rate determined by the
commissioner, the district's permissible enrichment tax rate under
Section 42.303 is reduced one cent for each cent by which the rate
adopted by the district exceeds the rate determined by the
commissioner. If the district adopts a tax rate less than the rate
determined by the commissioner, the amount of the district's basic
program entitlement under this chapter is reduced by four percent
for each cent by which the rate determined by the commissioner
exceeds the rate adopted by the district.
(d) A school district must raise its total local share of
the Foundation School Program to be eligible to receive foundation
school fund payments. If the district adopts a tax rate less than
the rate sufficient to raise its total local share, the amount of
the district's basic program entitlement under this chapter is
reduced by four percent for each cent by which the rate sufficient
to raise its total local share exceeds the rate adopted by the
district.
SECTION 1B.19. Section 42.2521(a), Education Code, is
amended to read as follows:
(a) For purposes of Chapter [Chapters 41 and] 46 and this
chapter, and to the extent money specifically authorized to be used
under this section is available, the commissioner shall adjust the
taxable value of property in a school district that, due to factors
beyond the control of the board of trustees, experiences a rapid
decline in the tax base used in calculating taxable values in excess
of four percent of the tax base used in the preceding year.
SECTION 1B.20. Section 42.253, Education Code, is amended
by amending Subsections (a) and (g)-(i) and adding Subsections
(e-2) and (m) to read as follows:
(a) For each school year the commissioner shall determine:
(1) the amount of money to which a school district is
entitled under Subchapters B and C;
(2) the amount of money to which a school district is
entitled under Subchapter F;
(3) the amount of money allocated to the district from
the available school fund;
(4) the amount of each district's basic program [tier
one] local share under Section 42.252; and
(5) the amount of each district's enrichment program
[tier two] local revenue [share] under Section 42.302.
(e-2) For the 2006-2007 school year, the limit authorized by
Subsection (e) is an amount equal to the sum of the rate described
by Section 42.252 and the rate described by Section 42.303(c)(1).
This subsection expires September 1, 2007.
(g) If a school district demonstrates to the satisfaction of
the commissioner that the estimate of the district's tax rate,
student enrollment, or taxable value of property used in
determining the amount of state funds to which the district is
entitled are so inaccurate as to result in undue financial hardship
to the district, the commissioner may adjust funding to that
district in that school year to the extent that funds are available
for that year[, including funds in the reserve account. Funds in
the reserve account may not be used under this subsection until any
reserve funds have been used for purposes of Subsection (f)].
(h) If the total amount appropriated for a year for the
Foundation School Program is less than the amount of money to which
school districts are entitled for that year [legislature fails
during the regular session to enact the transfer and appropriation
proposed under Subsection (f) and there are not funds available
under Subsection (j)], the commissioner shall reduce the total
amount of state funds allocated to each district from any source by
an amount determined by a method under which the application of the
same number of cents of increase in enrichment tax rate in all
districts applied to the taxable value of property of each
district, as determined under Subchapter M, Chapter 403, Government
Code, together with any state aid generated by those taxes, results
in a total amount of levy and aid equal to the total reduction. The
following fiscal year, a district's entitlement under this section
is increased by an amount equal to the reduction made under this
subsection.
(i) Not later than March 1 each year, the commissioner shall
determine the actual amount of state funds to which each school
district is entitled under [the allocation formulas in] this
chapter for the current school year and shall compare that amount
with the amount of the warrants issued to each district for that
year. If the amount of the warrants differs from the amount to
which a district is entitled because of variations in the
district's tax rate, student enrollment, or taxable value of
property, the commissioner shall adjust the district's entitlement
for the next fiscal year accordingly.
(m) Payments from the foundation school fund to each school
district shall be made as follows:
(1) 15 percent of the yearly entitlement of the
district shall be paid in an installment to be made on or before the
25th day of September of a fiscal year;
(2) 80 percent of the yearly entitlement of the
district shall be paid in eight equal installments to be made on or
before the 25th day of October, November, December, January, March,
May, June, and July; and
(3) five percent of the yearly entitlement of the
district shall be paid in an installment to be made after the fifth
day of September and not later than the 10th day of September of the
calendar year following the calendar year of the payment made under
Subdivision (1).
SECTION 1B.21. Sections 42.2531(a)-(c), Education Code,
are amended to read as follows:
(a) The commissioner may make adjustments to amounts due to
a school district under this chapter or Chapter 46, [or to amounts
necessary for a district to comply with the requirements of Chapter
41,] as provided by this section.
(b) A school district that has a major taxpayer, as
determined by the commissioner, that because of a protest of the
valuation of the taxpayer's property fails to pay all or a portion
of the ad valorem taxes due to the district may apply to the
commissioner to have the district's taxable value of property or ad
valorem tax collections adjusted for purposes of this chapter or
Chapter [41 or] 46. The commissioner may make the adjustment only
to the extent the commissioner determines that making the
adjustment will not:
(1) in the fiscal year in which the adjustment is made,
cause the amount to which school districts are entitled under this
chapter to exceed the amount appropriated for purposes of the
Foundation School Program for that year; and
(2) if the adjustment is made in the first year of a
state fiscal biennium, cause the amount to which school districts
are entitled under this chapter for the second year of the biennium
to exceed the amount appropriated for purposes of the Foundation
School Program for that year.
(c) The commissioner shall recover the benefit of any
adjustment made under this section by making offsetting adjustments
in the school district's taxable value of property or ad valorem tax
collections for purposes of this chapter or Chapter [41 or] 46 on a
final determination of the taxable value of property that was the
basis of the original adjustment, or in the second school year
following the year in which the adjustment is made, whichever is
earlier.
SECTION 1B.22. Subchapter E, Chapter 42, Education Code, is
amended by adding Sections 42.2541 and 42.2542 to read as follows:
Sec. 42.2541. ADDITIONAL TRANSITIONAL AID. (a) In this
section, "weighted average daily attendance" has the meaning
assigned by Section 42.302.
(b) Notwithstanding Section 42.253, a school district is
entitled to the amount of state revenue necessary to maintain state
and local revenue in an amount equal to the sum of:
(1) the amount of state and local revenue per student
in weighted average daily attendance for maintenance and operation
of the district that the district received for the 2005-2006 school
year; and
(2) an amount equal to $98 per weighted student in
average daily attendance.
(c) The commissioner may increase the amount to which a
school district is entitled under Subsection (b) as the
commissioner determines necessary.
(d) The commissioner shall:
(1) compute and publish the amount of state and local
revenue per student in weighted average daily attendance to which a
district is entitled under Subsection (b) for the 2006-2007 school
year; and
(2) use that amount per student in weighted average
daily attendance in determining the amount to which a district is
entitled under this section in subsequent school years.
(e) The commissioner shall determine the amount of state
funds to which a school district is entitled under this section,
including the amount per student in weighted average daily
attendance, and shall make that determination available to the
Legislative Budget Board. The commissioner's determination is
final and may not be appealed.
Sec. 42.2542. TEMPORARY LIMITATIONS ON AID. (a)
Notwithstanding any other provision of this subtitle, the
commissioner shall withhold from a school district the amount of
state funds necessary to ensure that the district does not receive
an amount of state and local revenue per student in weighted average
daily attendance that is greater than the following percentage of
the amount to which the district is entitled under Section
42.2541(b)(1):
(1) 108 percent for the 2006-2007 school year;
(2) 116 percent for the 2007-2008 school year; and
(3) 124 percent for the 2008-2009 school year.
(b) The commissioner shall determine the amount of state
funds required to be withheld under this section. The
commissioner's determination is final and may not be appealed.
(c) Any amount to which a school district is entitled under
Subchapter F is not included in determining the amount that a
district may receive under this section.
(d) This section expires September 1, 2009.
SECTION 1B.23. Chapter 42, Education Code, is amended by
adding Subchapter F to read as follows:
SUBCHAPTER F. ENRICHMENT PROGRAM
Sec. 42.301. PURPOSE. The purpose of the enrichment
program is to provide each school district with the opportunity to
supplement the basic program at a level of its own choice. An
allotment under this subchapter may be used for any legal purpose
other than capital outlay or debt service.
Sec. 42.302. ALLOTMENT. (a) In this section, "wealth per
student" means a school district's taxable value of property as
determined under Subchapter M, Chapter 403, Government Code,
divided by the number of students in weighted average daily
attendance in the district.
(b) Each school district is guaranteed a specified amount
per student in state and local funds for each cent of enrichment tax
effort up to the maximum level specified in this subchapter. The
amount of state support is determined by the formula:
EGYA = (EGL X WADA X DETR X 100) - LR
where:
"EGYA" is the guaranteed yield amount of state enrichment
funds to be allocated to the district;
"EGL" is the dollar amount guaranteed level of state and
local funds per student per cent of tax effort, which is the amount
of district enrichment tax revenue per cent of tax effort available
to a school district at the 98th percentile in wealth per student,
as determined by the commissioner;
"WADA" is the number of students in weighted average daily
attendance, which is computed by dividing the sum of the school
district's allotments under Subchapters B and C, less any allotment
to the district for transportation, any allotment to the district
under Section 42.158, and 50 percent of the adjustment under
Section 42.102, by the accreditation allotment for the applicable
year;
"DETR" is the district enrichment tax rate of the school
district, which is determined by dividing the total amount of
enrichment taxes collected by the school district for the
applicable school year by the district's taxable value of property
for the preceding year as determined under Subchapter M, Chapter
403, Government Code, divided by 100; and
"LR" is the local revenue, which is determined by multiplying
"DETR" by the quotient of the district's taxable value of property
for the preceding year as determined under Subchapter M, Chapter
403, Government Code.
(c) The percentile in wealth per student described by
Subsection (b) for purposes of determining the dollar amount
guaranteed level of state and local funds per student per cent of
tax effort ("EGL") applies beginning with the 2012-2013 school
year. For the 2006-2007 through 2011-2012 school years, EGL is
determined as follows:
(1) for the 2006-2007 school year, EGL is determined
using the 92nd percentile in wealth per student;
(2) for the 2007-2008 school year, EGL is determined
using the 93rd percentile in wealth per student;
(3) for the 2008-2009 school year, EGL is determined
using the 94th percentile in wealth per student;
(4) for the 2009-2010 school year, EGL is determined
using the 95th percentile in wealth per student;
(5) for the 2010-2011 school year, EGL is determined
using the 96th percentile in wealth per student; and
(6) for the 2011-2012 school year, EGL is determined
using the 97th percentile in wealth per student.
(d) This subsection and Subsection (c) expire September 1,
2012.
Sec. 42.303. ENRICHMENT TAX. (a) Subject to Section
42.304, the board of trustees of a school district may impose an
annual ad valorem tax for the further maintenance of the public
schools in the district.
(b) Except as provided by Section 42.252(a-1), the district
enrichment tax rate may not exceed $0.15 for each $100 of taxable
value of property.
(c) Notwithstanding Subsection (b) but subject to Sections
42.252(a-1) and 42.306:
(1) for the 2006 tax year, the district enrichment tax
rate may not exceed $0.05 for each $100 of taxable value of
property; and
(2) for the 2007 and 2008 tax years, the district
enrichment tax rate may not exceed $0.10 for each $100 of taxable
value of property.
(d) This subsection and Subsection (c) expire January 1,
2009.
Sec. 42.304. ENRICHMENT TAX ELECTION. (a) Except as
provided by Section 42.306, a school district may not impose an
enrichment tax under Section 42.303 unless authorized by a majority
of the qualified voters of the district voting at an election held
for that purpose.
(b) A proposition submitted to authorize the imposition of
an enrichment tax must include the question of whether the board of
trustees may impose annual ad valorem taxes for the further
enrichment of public schools at a rate not to exceed the rate stated
in the proposition.
(c) A district may tax at a rate below the rate authorized in
an election under this section and does not need additional
authority to increase the rate up to the rate authorized in the
election.
Sec. 42.305. COMPUTATION OF ENRICHMENT AID FOR DISTRICT ON
MILITARY RESERVATION OR AT STATE SCHOOL. The amount to which a
school district is entitled under this subchapter in a school
district located on a federal military installation or at Moody
State School is computed using the average district enrichment tax
rate and property value per student of school districts in the
county, as determined by the commissioner.
Sec. 42.306. ENRICHMENT TAX AVAILABLE TO CERTAIN DISTRICTS
WITHOUT ELECTION. (a) To the extent consistent with Subsection
(b), if a school district's maintenance and operations tax rate for
the 2004 tax year exceeded a rate of $1.50 for each $100 of taxable
value of property, the district is entitled to impose an ad valorem
tax under Section 42.303 without holding an election under Section
42.304.
(b) The enrichment tax authorized by this section may not
exceed a rate equal to the lesser of:
(1) $0.15 for each $100 of taxable value of property;
or
(2) a rate equal to the amount by which the district's
maintenance and operations tax rate for the 2004 tax year exceeded a
rate of $1.50 for each $100 of taxable value of property.
(c) The portion of an enrichment tax imposed by a school
district under this section that exceeds the rate permitted by
Subsection (b) is subject to voter approval under Section 42.304.
(d) The portion of an enrichment tax imposed by a school
district under this section that exceeds the rate permitted by
Subsection (b) is subject to the limits of Section 42.303(c). This
subsection expires January 1, 2009.
SECTION 1B.24. Section 45.003(d), Education Code, is
amended to read as follows:
(d) A proposition submitted to authorize the levy of
maintenance taxes must include the question of whether the
governing board or commissioners court may levy, assess, and
collect annual ad valorem taxes for the further maintenance of
public schools, at a rate not to exceed the rate, which may be not
more than $0.25 [$1.50] on the $100 valuation of taxable property in
the district, stated in the proposition.
SECTION 1B.25. This part applies beginning with the
2006-2007 school year, except that Section 42.253(h), Education
Code, as amended in this part, applies beginning with the 2005-2006
school year.
PART C. SCHOOL FACILITIES
SECTION 1C.01. Section 46.033, Education Code, is amended
to read as follows:
Sec. 46.033. ELIGIBLE BONDS. Bonds, including bonds issued
under Section 45.006, are eligible to be paid with state and local
funds under this subchapter if:
(1) the district made payments on the bonds during the
2004-2005 [2002-2003] school year or taxes levied to pay the
principal of and interest on the bonds were included in the
district's audited debt service collections for that school year;
and
(2) the district does not receive state assistance
under Subchapter A for payment of the principal and interest on the
bonds.
SECTION 1C.02. Section 46.034(c), Education Code,
is amended to read as follows:
(c) If the amount required to pay the principal of and
interest on eligible bonds in a school year is less than the amount
of payments made by the district on the bonds during the 2004-2005
[2002-2003] school year or the district's audited debt service
collections for that school year, the district may not receive aid
in excess of the amount that, when added to the district's local
revenue for the school year, equals the amount required to pay the
principal of and interest on the bonds.
ARTICLE 2. EDUCATION EXCELLENCE
PART A. EDUCATION EMPLOYEES
SECTION 2A.01. Section 11.201, Education Code, is amended
by adding Subsection (e) to read as follows:
(e) A superintendent may not receive any financial benefit
for personal services performed by the superintendent for any
business entity that conducts business with or solicits business
from the school district. Any financial benefit received by the
superintendent for performing personal services for any other
entity must be approved by the board of trustees on a case-by-case
basis in an open meeting.
SECTION 2A.02. 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 operate a school
leadership pilot program for principals in accordance with this
section.
(b) The agency shall operate the program 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.
(c) The agency shall consult appropriate departments at
institutions of higher education to develop program course work
that focuses on management and business training.
(d) 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.
(e) 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.
(f) 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.
(g) To implement and administer the program, the
commissioner may accept grants, gifts, and donations from public
and private entities.
(h) The commissioner may adopt rules necessary to
administer this section.
(i) This section expires September 1, 2010.
SECTION 2A.03. Section 21.045, Education Code, is amended
by amending Subsections (a) and (b) and adding Subsection (e) to
read as follows:
(a) The board shall propose rules establishing standards to
govern the approval and continuing accountability of all educator
preparation programs based on information that is disaggregated
with respect to sex and ethnicity and that includes:
(1) results of the certification examinations
prescribed under Section 21.048(a); [and]
(2) performance based on the appraisal system for
beginning teachers adopted by the board;
(3) performance of students taught by beginning
teachers, as determined on the basis of annual individual student
growth in achievement, as measured under Section 39.034, and any
other factor considered appropriate by the board; and
(4) retention rates of beginning teachers in the
profession.
(b) Each educator preparation program shall submit data
elements as required by the board for an annual performance report
to ensure access and equity. At a minimum, the annual report must
contain the performance data from Subsection (a), other than the
data required for purposes of Subsection (a)(3), and the following
information, disaggregated by sex and ethnicity:
(1) the number of candidates who apply;
(2) the number of candidates admitted;
(3) the number of candidates retained;
(4) the number of candidates completing the program;
(5) the number of candidates employed in the
profession after completing the program; and
(6) the number of candidates retained in the
profession.
(e) The agency shall annually submit student performance
data to the board for purposes of Subsection (a)(3). The agency
shall provide the data to the board in a manner that protects the
names of individual students and otherwise complies with the
confidentiality requirements prescribed by Section 39.030.
SECTION 2A.04. Section 21.104(a), Education Code, is
amended to read as follows:
(a) A teacher employed under a probationary contract may be
discharged at any time for:
(1) good cause as determined by the board of trustees;
or
(2) a financial exigency that requires a reduction in
personnel[, good cause being the failure to meet the accepted
standards of conduct for the profession as generally recognized and
applied in similarly situated school districts in this state].
SECTION 2A.05. Subchapter C, Chapter 21, Education Code, is
amended by adding Section 21.1041 to read as follows:
Sec. 21.1041. HEARING FOR CERTAIN DISCHARGES UNDER
PROBATIONARY CONTRACT. (a) If the board of trustees proposes to
discharge a teacher under Section 21.104(a)(2), the board shall
give written notice of the proposed action to the teacher.
(b) If the teacher desires a hearing after receiving notice
of the proposed discharge, the teacher shall notify the board of
trustees in writing, not later than the 15th day after the date the
teacher receives the notice of the proposed action. The board shall
provide for a hearing to be held not later than the 15th day after
the date the board receives the request for a hearing unless the
parties agree in writing to a different date. The hearing must be
closed unless the teacher requests an open hearing. The hearing
must be conducted in accordance with rules adopted by the board. At
the hearing, the teacher may:
(1) be represented by a representative of the
teacher's choice;
(2) hear the evidence supporting the reason for the
discharge;
(3) cross-examine adverse witnesses; and
(4) present evidence.
(c) After a hearing held under Subsection (b), the board of
trustees shall:
(1) take the appropriate action to discharge the
teacher or allow the teacher to complete the probationary contract
term; and
(2) notify the teacher in writing of its decision not
later than the 15th day after the date of the hearing.
(d) If the teacher does not request a hearing under
Subsection (b), the board of trustees shall take the appropriate
action to discharge the teacher and shall notify the teacher in
writing of that action not later than the 30th day after the date
the notice of proposed discharge for a financial exigency that
requires a reduction in personnel was sent to the teacher.
SECTION 2A.06. Subchapter E, Chapter 21, Education Code, is
amended by adding Section 21.2111 to read as follows:
Sec. 21.2111. HEARING FOR CERTAIN DISCHARGES UNDER TERM
CONTRACT. (a) If the board of trustees proposes to discharge a
teacher under Section 21.211(a)(2), the board shall give written
notice of the proposed action to the teacher.
(b) If the teacher desires a hearing after receiving notice
of the proposed discharge, the teacher shall notify the board of
trustees in writing, not later than the 15th day after the date the
teacher receives the notice of the proposed action. The board shall
provide for a hearing to be held not later than the 15th day after
the date the board receives the request for a hearing unless the
parties agree in writing to a different date. The hearing must be
closed unless the teacher requests an open hearing. The hearing
must be conducted in accordance with rules adopted by the board. At
the hearing, the teacher may:
(1) be represented by a representative of the
teacher's choice;
(2) hear the evidence supporting the reason for the
discharge;
(3) cross-examine adverse witnesses; and
(4) present evidence.
(c) After the hearing, the board of trustees shall:
(1) take the appropriate action to discharge the
teacher or allow the teacher to complete the current contract term;
and
(2) notify the teacher in writing of its decision not
later than the 15th day after the date of the hearing.
(d) If the teacher does not request a hearing under
Subsection (b), the board of trustees shall take the appropriate
action to discharge the teacher and shall notify the teacher in
writing of that action not later than the 30th day after the date
the notice of proposed discharge for a financial exigency that
requires a reduction in personnel was sent to the teacher.
SECTION 2A.07. Section 21.251, Education Code, is amended
to read as follows:
Sec. 21.251. APPLICABILITY. (a) This subchapter applies
if a teacher requests a hearing after receiving notice of the
proposed decision to:
(1) terminate the teacher's continuing contract at any
time;
(2) except as provided by Subsection (b)(3), terminate
the teacher's probationary or term contract before the end of the
contract period; or
(3) suspend the teacher without pay.
(b) This subchapter does not apply to:
(1) a decision to terminate a teacher's employment at
the end of a probationary contract; [or]
(2) a decision not to renew a teacher's term contract,
unless the board of trustees of the employing district has decided
to use the process prescribed by this subchapter for that purpose;
or
(3) a decision to terminate a teacher's probationary
contract or term contract before the end of the contract period for
a financial exigency that requires a reduction in personnel.
SECTION 2A.08. Section 21.301(a), Education Code, is
amended to read as follows:
(a) Not later than the 20th day after the date the board of
trustees or board subcommittee announces its decision under Section
21.259, [or] the board advises the teacher of its decision not to
renew the teacher's contract under Section 21.208, or the board
advises the teacher of its decision to terminate the teacher's
probationary contract under Section 21.1041(c) or (d) or term
contract under Section 21.2111(c) or (d), the teacher may appeal
the decision by filing a petition for review with the commissioner.
SECTION 2A.09. Section 21.303(a), Education Code, is
amended to read as follows:
(a) If the board of trustees decided not to renew a
teacher's term contract or decided to terminate a teacher's
probationary contract under Section 21.1041(c) or (d) or term
contract under Section 21.2111(c) or (d), the commissioner may not
substitute the commissioner's judgment for that of the board of
trustees unless the decision was arbitrary, capricious, or unlawful
or is not supported by substantial evidence.
SECTION 2A.10. Section 21.402, Education Code, is amended
by amending Subsections (a), (c), and (d) and adding Subsections
(a-1), (a-2), (c-1), (c-2), and (d-1) to read as follows:
(a) Except as provided by Subsection (a-1), (a-2), (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,
determined by the following formula:
MS = SF x AA [FS]
where:
"MS" is the minimum monthly salary;
"SF" is the applicable salary factor specified by Subsection
(c); and
"AA" is the accreditation allotment under Section 42.101
["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 H.B. No. 3343, Acts of the 77th
Legislature, Regular Session, 2001].
(a-1) A school district is not required to pay the minimum
salary determined under Subsection (a) to an educator who receives
a service retirement annuity under Chapter 824, Government Code.
(a-2) A school district is not required to pay the minimum
salary determined under Subsection (a) to an educator who does not
hold a lifetime or standard certificate and who holds a
probationary, temporary, or emergency educator certificate.
(c) The salary factors per step are as follows: Years Experience 0 1 2
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.
(d-1) A classroom teacher, full-time librarian, full-time
counselor certified under Subchapter B, or full-time nurse may
elect to receive not more than $1,000 of the person's annual salary
as health care supplementation as provided by Chapter 1580,
Insurance Code.
SECTION 2A.11. 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 if the mentor:
(1) teaches in the same school;
(2) to the extent practicable, teaches the same
subject or grade level, as applicable; and
(3) meets 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 proven record of assisting students, as a whole,
in achieving growth in performance.
(c) The commissioner shall develop proposed rules under
Subsection (b) by negotiated rulemaking as provided by Chapter
2008, Government Code.
(d) 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 subsection 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.
(e) In adopting rules under Subsection (d), the
commissioner shall rely on research-based mentoring programs that,
through external evaluation, have demonstrated success.
SECTION 2A.12. Chapter 21, Education Code, is amended by
adding Subchapter N to read as follows:
SUBCHAPTER N. EDUCATOR EXCELLENCE INCENTIVE PROGRAM
Sec. 21.651. EDUCATOR EXCELLENCE INCENTIVE PROGRAM. (a)
The commissioner shall establish an educator excellence incentive
program under which school districts, in accordance with locally
developed plans approved by the commissioner, provide incentive
payments to employees whose students demonstrate successful annual
individual student growth in achievement.
(b) From funds appropriated for the purpose of this
subchapter, the commissioner shall award incentive payments to each
school district with a local incentive plan approved by the
commissioner. The commissioner shall distribute the incentive
payments each year to a qualifying school district on the basis of
the district's actual average daily attendance for the preceding
school year. The total amount of incentive payments made to school
districts from funds appropriated for the incentive program under
this subchapter may not exceed $100 million each fiscal year.
(b-1) The commissioner may not award incentive payments to
school districts under this subchapter before the 2006-2007 school
year. This subsection expires September 1, 2007.
(c) Except as provided by Subsections (d) and (e), each year
a school district shall use funds received by the district under
this subchapter to provide campus-based incentive payments in
accordance with this subchapter.
(d) A school district with an enrollment of less than 1,600
may use all of the funds received under this subchapter to provide
stipends under Subsection (e).
(e) A school district may use an amount not to exceed 50
percent of the funds received under this subchapter to provide
stipends to:
(1) teachers who are certified in a curriculum subject
area in which the district is experiencing a shortage of qualified
teachers, as determined by the commissioner; and
(2) teachers who are assigned, during the first three
years of the assignment, to a campus that is difficult to staff,
according to standards established by the board of trustees of the
district, including a rural or academically unacceptable campus.
(f) The commissioner shall adopt rules necessary to
implement this subchapter. In adopting rules, the commissioner
shall:
(1) include criteria and guidelines for evaluating
local incentive plans; and
(2) encourage local flexibility in designing local
incentive plans that promote student achievement.
Sec. 21.652. MINIMUM CRITERIA FOR LOCAL INCENTIVE PLANS.
(a) A school district shall develop a local incentive plan for
rewarding successful annual individual student growth in
achievement in the district and submit the plan to the commissioner
for approval.
(b) A local incentive plan must be designed to reward
campuses.
(c) The primary criteria for making incentive payments to
employees under a local incentive plan must be based on objective
measures of student achievement, including a measure of annual
individual student growth in achievement under Section 39.034, and
the plan must provide for incentive payments to be awarded on the
basis of high achievement, incremental growth in achievement, or
both. A local incentive plan may also consider other indicators of
employee performance, such as teacher evaluations conducted by
principals or parents.
(d) A local incentive plan must:
(1) be developed through a process that includes
participation of classroom teachers in the school district; and
(2) be approved by the district-level planning and
decision-making committee.
(e) The campus-level planning and decision-making committee
shall determine the appropriate distribution of funds received by a
campus under this subchapter.
Sec. 21.653. EMPLOYMENT CONTRACTS. (a) A school district
shall provide in employment contracts that qualifying employees may
receive an incentive payment under the local incentive plan.
(b) The school district shall indicate that any incentive
payment distributed is considered a bonus for performance and not
an entitlement as part of an employee's salary.
Sec. 21.654. DECISION REGARDING INCENTIVE PAYMENTS. A
decision in providing an incentive payment under a local incentive
plan approved under this subchapter is final and may not be
appealed.
SECTION 2A.13. Subchapter A, Chapter 22, Education Code, is
amended by adding Section 22.007 to read as follows:
Sec. 22.007. WAGE INCREASE FOR SUPPORT STAFF. (a) A school
district each school year 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 $1,000.
(b) A school district each school year shall pay each
part-time district employee, other than an administrator, an amount
at least equal to $500.
(c) A full-time employee entitled to a wage increase under
this section may elect to receive not more than $1,000 of the
person's annual wages as health care supplementation as provided by
Chapter 1580, Insurance Code. A part-time employee entitled to a
wage increase under this section may elect to receive not more than
$500 of the person's annual wages as health care supplementation as
provided by Chapter 1580, Insurance Code.
(d) A payment under this section is in addition to wages the
district would otherwise pay the employee during the school year.
SECTION 2A.14. Effective September 1, 2006, Subchapter D,
Chapter 54, Education Code, is amended by adding Section 54.220 to
read as follows:
Sec. 54.220. CHILDREN OF CLASSROOM TEACHERS. (a) In this
section:
(1) "Child" means a child of any age, including an
adult child. The term includes an adopted child.
(2) "Classroom teacher" has the meaning assigned by
Section 5.001.
(b) For purposes of this section, a person is another
person's child if the other person is the person's natural or
adoptive parent, managing or possessory conservator, or legal
guardian.
(c) The governing board of an institution of higher
education shall exempt from the payment of tuition or from the
payment of required fees for an academic year an eligible
undergraduate student who is a child of an eligible classroom
teacher and is designated by the classroom teacher to receive the
exemption.
(d) A classroom teacher is eligible to designate the
teacher's child to receive an exemption under this section for an
academic year if, at the beginning of the academic year, the teacher
is employed full-time as a classroom teacher by a school district in
this state and maintains that employment throughout the school year
that corresponds to the academic year.
(e) An undergraduate student is eligible for an exemption
for an academic year under this section only if the student is a
resident of this state for purposes of Subchapter B or is otherwise
entitled to pay tuition and fees at the rate provided for residents
of this state. A student who receives an exemption for an initial
academic period is eligible for an exemption for a subsequent
academic period only if the student has earned an overall grade
point average of at least 2.5 on a four-point scale or the
equivalent on course work previously attempted at institutions of
higher education.
(f) On the completion of a classroom teacher's 15th year of
service, the teacher earns either an exemption from the payment of
tuition or an exemption from the payment of required fees for one
academic year for the benefit of one child. For each year of
service that exceeds 15 years, the classroom teacher earns an
additional tuition exemption or an additional fee exemption for one
academic year for the benefit of one child. The classroom teacher
may elect the type of exemption the child may receive under this
section at the time the teacher designates the child to receive the
exemption. The exemption earned by a classroom teacher for one year
of service may be used for the benefit of only one child. Years of
service as a classroom teacher are not required to be consecutive.
A classroom teacher may not designate a child to receive an
exemption under this section for an academic year unless the
teacher's most recent five years of service were in this state.
(g) A classroom teacher with at least 19 years of service
may elect to use any earned but unused exemptions toward the payment
of both the tuition and the required fees of one child during an
academic year or to use the unused exemptions toward the payment of
the tuition or the required fees, or both tuition and fees as
permitted by the number of unclaimed exemptions, of more than one
child during an academic year. Two classroom teachers may
aggregate years of service to earn one or more exemptions for the
benefit of one or more of their children in common, but each
classroom teacher must maintain eligibility under Subsection (d)
during the academic period for which the exemption is used.
(h) If an undergraduate student fails to meet any
eligibility requirement of Subsection (e) for an academic period,
the student may not receive an exemption under this section for that
academic period. An undergraduate student may become eligible to
receive the exemption in a subsequent academic period of the same
academic year if the student reestablishes eligibility before that
period begins.
(i) If a classroom teacher whose child receives an exemption
earned by the teacher under this section does not remain employed as
required by Subsection (d), the student may not receive an
exemption for a subsequent academic period of the same academic
year under this section until the next academic period that begins
after the classroom teacher reestablishes eligibility under
Subsection (d).
(j) An institution of higher education may require an
undergraduate student to pay prorated tuition or required fees, as
applicable, for an academic period if the student's eligibility for
the exemption under Subsection (e) or the teacher's eligibility for
the exemption under Subsection (d) is lost during that period.
(k) An undergraduate student is not eligible to receive an
exemption under this section if the person:
(1) subject to Subsection (l), has previously received
an exemption under this section for four academic years at any
institution or institutions of higher education; or
(2) has received a baccalaureate degree.
(l) An undergraduate student who, for any reason other than
a loss of relevant eligibility of the student or the classroom
teacher, fails to use an exemption from the payment of tuition or an
exemption from the payment of required fees in one or more academic
periods in the academic year for which the student is designated to
receive the exemption may carry forward and use that exemption in an
academic period of substantially similar length in a subsequent
academic year. The student may use only one exemption for each
academic period under this subsection unless the use of more than
one exemption is permitted under Subsection (g).
(m) The Texas Higher Education Coordinating Board shall
adopt:
(1) rules prescribing procedures by which a classroom
teacher may designate a child to receive an exemption under this
section, including rules relating to the determination of a
student's eligibility for an exemption or a classroom teacher's
eligibility to designate a child to receive an exemption;
(2) rules to allow an otherwise eligible student to
receive an exemption under this section if the student is unable to
satisfy the grade point average requirement of Subsection (e)
solely as a result of a hardship or other good cause; and
(3) a uniform application form for an exemption under
this section.
(n) The legislature shall account in the General
Appropriations Act for the exemptions authorized by this section in
a manner that provides a corresponding increase in the general
revenue funds appropriated to the institution granting an
exemption.
(o) Notwithstanding any other provision of this section,
only the following undergraduate students who meet the eligibility
requirements of Subsection (e) are eligible to receive an exemption
under this section:
(1) in the 2006-2007 academic year, a student who has
completed less than 30 semester credit hours at any institution of
higher education;
(2) in the 2007-2008 academic year, a student who has
completed less than 60 semester credit hours at any institution of
higher education; and
(3) in the 2008-2009 academic year, a student who has
completed less than 90 semester credit hours at any institution of
higher education.
(p) This subsection and Subsection (o) expire September 1,
2009.
SECTION 2A.15. Sections 401.314(a)-(d), Occupations Code,
are amended to read as follows:
(a) The board shall waive the licensing requirements under
this chapter and issue a limited license to practice in the public
schools as a fully licensed speech-language pathologist to an
applicant who:
(1) [was eligible for a waiver of licensing
requirements under Section 13(a), Chapter 381, Acts of the 68th
Legislature, Regular Session, 1983, as amended by Chapter 448, Acts
of the 69th Legislature, Regular Session, 1985;
[(2) for the two years preceding January 1, 1996, was
employed by a school district as a speech-language therapist;
[(3) submits with the person's application a written
statement by the superintendent of the school district employing
the person, certifying that the district has not been able to employ
as a speech-language pathologist a person who meets the licensing
requirements imposed under this chapter;
[(4)] holds a baccalaureate degree in communication
disorders (speech-language) from an accredited institution of
higher education; and
(2) is certified by the Texas Education Agency in
speech and hearing therapy or, in the judgment of the board,
satisfies equivalent requirements[; and
[(5) successfully completes the examination required
under Section 401.305].
(b) The Texas Education Agency [board] shall determine and
monitor the [waive the licensing] requirements for certification
[imposed] under this section, provided that an applicant must have
training in [chapter and issue a limited license to practice in the
public schools as a fully licensed speech-language pathologist to a
person who]:
(1) the unique aspects of speech disorders in students
who are at least three years of age, but not older than 12 years of
age [meets the requirements of Subsections (a)(2)-(5)]; and
(2) services that support educational programs for
students described by Subdivision (1) [is enrolled in a program of
study toward a master's degree with a major in at least one of the
areas of communicative sciences or disorders from a program
accredited by the American Speech-Language-Hearing Association in
a regionally accredited college or university].
(c) A [Beginning September 1, 1998, and biennially after
that date, a] person certified [licensed] under this section may
provide speech-language pathology services only:
(1) in a school setting; and
(2) to a student who is at least three years of age,
but not older than 12 years of age [Subsection (b) must demonstrate
in a manner prescribed by the board that the person has successfully
completed in the preceding two-year period at least 12 hours of
course work toward completing a master's degree described by
Subsection (b)(2)].
(d) A person certified [who holds a limited license issued]
under this section may provide any service permitted or not
specifically prohibited by the Individuals with Disabilities
Education Improvement Act of 2004 (20 U.S.C. Section 1400 et seq.)
[apply for a full license as provided by this chapter].
SECTION 2A.16. Section 11.201(e), Education Code, as added
by this Act, applies only to a contract between a superintendent of
a school district and a business entity that is entered into on or
after September 1, 2005. A contract between a superintendent of a
school district and a business entity that is entered into before
September 1, 2005, is governed by the law in effect on the date the
contract is entered into, and the former law is continued in effect
for that purpose.
SECTION 2A.17. (a) As soon as possible after September 1,
2005, the State Board for Educator Certification shall review the
rules adopted under Section 21.044, Education Code, relating to
educator training requirements and revise those rules as necessary
to ensure that the training requirements are sufficient to produce
educators capable of:
(1) satisfying the increased standards for highly
qualified educators prescribed by the No Child Left Behind Act of
2001 (Pub. L. No. 107-110);
(2) complying with certification standards in this
state; and
(3) teaching students in a manner that results in the
highest level of student performance.
(b) In conducting the review required by Subsection (a) of
this section, the State Board for Educator Certification shall give
specific attention to the degree to which educator training
requirements prepare educators to serve students of limited English
proficiency and students with learning disabilities.
SECTION 2A.18. Sections 21.104, 21.251, 21.301, and
21.303, Education Code, as amended by this Act, and Sections
21.1041 and 21.2111, Education Code, as added by this Act, apply
only to a discharge under a probationary or term contract for which
written notice of the proposed discharge is given to a teacher on or
after September 1, 2005. A discharge under a probationary or term
contract for which written notice of the proposed discharge is
given to a teacher before September 1, 2005, is governed by the law
in effect when the notice is given, and the former law is continued
in effect for that purpose.
SECTION 2A.19. Section 21.402(a-1), Education Code, as
added by this Act, does not apply to the salary of an educator
employed under a contract entered into before the effective date of
this Act.
SECTION 2A.20. Section 21.402(a-2), Education Code, as
added by this Act, does not apply to the salary of an educator
employed under a contract entered into before the effective date of
this Act.
SECTION 2A.21. The Texas Higher Education Coordinating
Board shall adopt rules and forms for the administration of Section
54.220, Education Code, as added by this Act, not later than January
1, 2006.
PART B. ADMINISTRATIVE EFFICIENCY
SECTION 2B.01. Subchapter A, Chapter 7, Education Code, is
amended by adding Section 7.008 to read as follows:
Sec. 7.008. 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, district, or school official or an authorized
representative of an institution of higher education to
electronically transfer and retrieve student information generally
found in student transcripts, including information concerning a
student's course or grade completion and assessment instrument
results, to and from an educational institution in which the
student is enrolled.
(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 2006-2007 school
year. This subsection expires September 1, 2007.
SECTION 2B.02. Subchapter A, Chapter 7, Education Code, is
amended by adding Section 7.011 to read as follows:
Sec. 7.011. STATEWIDE FUNDS MANAGEMENT INFORMATION SYSTEM
FOR AT-RISK STUDENT SERVICES. (a) In this section, "student at
risk of dropping out of school" has the meaning described by Section
29.081.
(b) The agency shall develop a management information
system for funds awarded and allocated to school districts and
open-enrollment charter schools for the purpose of providing
services to students at risk of dropping out of school.
(c) The funds management information system must produce
complete, accurate, and timely reports for agency officials and
policy makers. The reports must provide information on funding for
services for students at risk of dropping out of school, statewide
and aggregated by school district, including the following
information:
(1) the amount of an award;
(2) the beginning and ending period of a grant or
award;
(3) expenditures related to an award; and
(4) any amount of an award that was not distributed
because of a school district's failure to use awarded funds to
provide needed services during the funding period.
(d) The commissioner shall adopt rules as necessary to
administer this section. The rules adopted under this subsection
must ensure that:
(1) the funds management information system includes:
(A) the information described by Subsection (c)
for all funding sources for services described by Section 29.092
for students at risk of dropping out of school, excluding funding
information relating to a compensatory, intensive, or accelerated
instruction program under Section 29.081, a disciplinary
alternative education program established under Section 37.008, or
a program eligible under Title I of the Elementary and Secondary
Education Act of 1965, as provided by Pub. L. No. 103-382; and
(B) all state funds and federal pass-through
funds targeting students at risk of dropping out of school;
(2) the system is compatible with and is regularly
reconciled with the agency's central accounting system; and
(3) aggregate funding information is readily
available to agency personnel and policy makers, including
aggregate funding information relating to a compensatory,
intensive, or accelerated instruction program under Section
29.081, a disciplinary alternative education program established
under Section 37.008, or a program eligible under Title I of the
Elementary and Secondary Education Act of 1965, as provided by Pub.
L. No. 103-382.
SECTION 2B.03. 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, 2005, 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 service 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 2006-2007 school year. This subsection expires
September 1, 2007.
(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 service arrangements within the center's
service area; and
(2) evaluate the need for cooperative shared service
arrangements within the center's service area and consider
expanding center-sponsored cooperative shared service
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 service
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 service arrangement if the commissioner
determines that the financial management performance of the
district or school is unsatisfactory.
SECTION 2B.04. Subchapter A, Chapter 28, Education Code, is
amended by adding Section 28.0022 to read as follows:
Sec. 28.0022. CURRICULUM MANAGEMENT ASSISTANCE. (a) The
commissioner shall identify available curriculum management
materials recommended by school districts that may be used to
assist school districts in:
(1) understanding the depth and complexity of the
essential knowledge and skills identified under Section 28.002(c)
for each subject in the foundation curriculum under Section
28.002(a)(1); and
(2) based on learning standards:
(A) developing model instructional plans and
diagnostic tools;
(B) aligning curriculum objectives to district
instructional resources; and
(C) differentiating instruction in recognition
of the needs of individual students.
(b) Unless otherwise prohibited by law, the commissioner
may use federal funds to implement this section.
(c) Not later than January 1, 2007, the commissioner shall
prepare and submit to the legislature a report that describes in
detail:
(1) the curriculum management materials identified
under Subsection (a);
(2) the costs associated with making the materials
available to school districts; and
(3) the manner in which technological applications may
be used to make the materials available and allow school districts
to use the materials.
(d) Subsection (c) and this subsection expire January 31,
2007.
SECTION 2B.05. Subchapter C, Chapter 29, Education Code, is
amended by adding Sections 29.092, 29.093, and 29.094 to read as
follows:
Sec. 29.092. CONSOLIDATED FUNDING FOR PROGRAMS AND SERVICES
FOR STUDENTS AT RISK OF DROPPING OUT OF SCHOOL. (a) In this
section, "student at risk of dropping out of school" has the meaning
described by Section 29.081.
(b) To enable school districts and open-enrollment charter
schools to provide supplemental programs and services for the
benefit of students at risk of dropping out of school, the
commissioner each school year shall award funds to a school
district or open-enrollment charter school in accordance with a
streamlined and simplified grant process developed by the
commissioner.
(c) The commissioner shall consolidate funding from the
following currently funded programs and types of services,
excluding early childhood care and education programs and
accelerated reading or mathematics initiatives under Section
28.006, 28.007, or 28.0211:
(1) an optional extended year program under Section
29.082;
(2) a basic skills program for high school students
under Section 29.086;
(3) a summer school program of instruction for
students of limited English proficiency; and
(4) a grant for pregnancy-related services, including
a pregnancy, education, and parenting program.
(d) The commissioner may redistribute the funding of
programs described under Subsection (c) as necessary to accomplish
the purpose of improving the achievement of students at risk of
dropping out of school.
(e) A school district or open-enrollment charter school
that receives an award of funds under this section may use the funds
to provide academic and support services to students at risk of
dropping out of school, including:
(1) services designed to provide intensive academic
instruction to increase student success and high school completion;
(2) services designed to provide intensive academic
instruction for and reduce the dropout rate of students at risk of
dropping out of school;
(3) after-school academic and support services;
(4) intensive instruction for preschool and
school-age students of limited English proficiency;
(5) any academic or support services for pregnant or
parenting students, including basic instruction and health and life
skills training and support for pregnant or parenting students;
(6) community-based services designed to address the
needs of students at risk of dropping out of school;
(7) programs or services designed to promote the
involvement of parents of students at risk of dropping out of
school; and
(8) services or programs promoting school and
community collaboration to restructure schools for the successful
achievement of all students, especially students at risk of
dropping out of school.
(f) The agency shall make available research-based guidance
to districts and open-enrollment charter schools to enable
successful implementation of the academic and support services
described by Subsection (e) that assist students at risk of
dropping out of school to succeed in school.
(g) Not later than November 1 of each year, a school
district or open-enrollment charter school may submit an
application for funding for programs or services under this
section. The school district or open-enrollment charter school
must include an assessment of needs for students at risk of dropping
out of school, a comprehensive plan for providing services for
those students based on the agency's research-based implementation
guidance provided under Subsection (f), and a report of all sources
of funding for providing services for those students. The
commissioner shall distribute an award of funds in the form of a
block grant not later than March 15 of each year.
Sec. 29.093. COST-OUTCOME ANALYSIS. (a) The agency and the
Legislative Budget Board shall jointly develop a request for
proposals for a qualified third party to conduct a comprehensive
cost-outcome analysis of federal and state funding for programs
targeting students at risk of dropping out of school, as described
by Section 29.081, and the impact of those programs on student
achievement outcomes. In order to be qualified under this section,
a party must at a minimum have experience in educational program
evaluation and statistical analysis of public education data.
(b) The cost-outcome methodology developed by the
contractor under this section is subject to joint review and
approval by the agency and the Legislative Budget Board. The
cost-outcome analysis at a minimum must consist of the following
components:
(1) a methodology for assessing the
cost-effectiveness of individual school districts and
open-enrollment charter schools in providing services to students
at risk of dropping out of school;
(2) performance measures that can be used to assess
the effectiveness of school districts and open-enrollment charter
schools in administering academic and social service programs for
students at risk of dropping out of school;
(3) a methodology for evaluating best practices in
providing effective services for students at risk of dropping out
of school;
(4) a statistical methodology for:
(A) controlling for differences among individual
school districts and open-enrollment charter schools that are not
related to funding streams included in the cost-outcome analysis;
and
(B) disaggregating data by peer groups;
(5) a methodology for computing the relative impact of
funding sources on student achievement outcomes; and
(6) a methodology for reporting disaggregated results
for students at risk of dropping out of school.
(c) The agency and the Legislative Budget Board shall:
(1) not later than December 1 of each year:
(A) report findings from the cost-outcome
analysis to the lieutenant governor, the speaker of the house of
representatives, and the presiding officer of the standing
committee of each house of the legislature with primary
jurisdiction over public education, including data related to the
feasibility of constructing a cost-effectiveness measure for
school districts and open-enrollment charter schools;
(B) make recommendations for the potential use of
the data, including the best methods to disseminate the information
to parents and school districts and open-enrollment charter
schools; and
(C) make the report and recommendations
described by Paragraphs (A) and (B) available to the public; and
(2) during the 2006-2007 school year, develop a plan
to implement the cost-outcome methodology to assess the
effectiveness of school districts and open-enrollment charter
schools in providing services during the 2007-2008 school year to
students at risk of dropping out of school.
(d) During the state fiscal biennium beginning September 1,
2005, the commissioner shall retain an amount not to exceed
$500,000 from the total amount of funds allotted under the
Foundation School Program to finance the comprehensive
cost-outcome analysis 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) This section expires September 1, 2010.
Sec. 29.094. TEMPORARY PROVISION: COMMISSIONER'S
COST-OUTCOME ANALYSIS. (a) The commissioner shall adopt a
cost-outcome analysis methodology for use in assessing the
effectiveness of school districts and open-enrollment charter
schools in providing services for students at risk of dropping out
of school, as described by Section 29.081. The commissioner shall
use the adopted methodology until the commissioner determines that
an alternate methodology approved by the agency and the Legislative
Budget Board under Section 29.093(b) more accurately portrays the
cost-effectiveness of the analyzed services.
(b) The methodology adopted by the commissioner must
include the following components:
(1) a composite performance measure that combines key
indicators of student performance, disaggregated for students at
risk of dropping out of school;
(2) a format for reporting all state, federal, local,
and private sources of funding and total expenditures for
supplemental services for students at risk of dropping out of
school, reported by school district, by open-enrollment charter
school, and statewide; and
(3) a system for scoring and ranking school districts
and open-enrollment charter schools, including criteria for
establishing school district and open-enrollment charter school
peer groups for comparison purposes.
(c) Based on the cost-outcome analysis methodology, the
commissioner shall use the ranking system under Subsection (b)(3)
to determine annually the level at which school districts and
open-enrollment charter schools are cost-effective in serving
students at risk of dropping out of school.
(d) Not later than December 1 of each year, the commissioner
shall:
(1) report the methodology and the results of the
cost-outcome analysis to the lieutenant governor, the speaker of
the house of representatives, and the presiding officer of the
standing committee of each house of the legislature with primary
jurisdiction over public education; and
(2) make the report under Subdivision (1) available to
the public.
(e) This section expires on the earlier of the approval of a
cost-outcome methodology by the agency and the Legislative Budget
Board under Section 29.093(b) or September 1, 2010.
SECTION 2B.06. Not later than January 1, 2007, the Texas
Education Agency shall adopt a five-year plan to renovate the
Public Education Information Management System (PEIMS) to provide
for efficient and effective information storage and retrieval for
the purposes of allocating scarce school resources. The renovation
must include a redesign of the records layout.
PART C. ACCOUNTABILITY
SECTION 2C.01. 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)(10) [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 2C.02. Effective September 1, 2006, Subchapter B,
Chapter 28, Education Code, is amended by adding Section 28.027 to
read as follows:
Sec. 28.027. FUNDING FOR COLLEGE ENTRANCE ASSESSMENTS. (a)
The agency shall pay for any student who chooses to take, on one
occasion, an assessment instrument that is currently accepted by
colleges and universities for use in determining admissions. The
agency shall reduce the amount the agency pays for a student to take
the assessment instrument by the amount of any discount or fee
waiver offered by the vendor of the assessment instrument to which
the student is entitled. The agency shall pay the fee for the
administration of the assessment instrument directly to the vendor
of the assessment instrument:
(1) from funds appropriated for the purpose; or
(2) if funds are not appropriated for the purpose,
from funds allotted under the Foundation School Program, and the
commissioner 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.
(b) The agency shall select and approve vendors of the
specific assessment instruments for which funding is provided under
this section.
(c) The agency shall compile the results of any assessment
instrument for which funding is provided under this section and
make the results available to the public in a manner that does not
identify individual students.
SECTION 2C.03. Sections 29.053(b) and (d), Education Code,
are amended to read as follows:
(b) Within the first five [four] weeks following the first
day of school, the language proficiency assessment committee
established under Section 29.063 shall determine and report to the
board of trustees of the district the number of students of limited
English proficiency on each campus and shall classify each student
according to the language in which the student possesses primary
proficiency. The board shall report that information to the agency
before November 1 each year.
(d) Each district that is required to offer bilingual
education and special language programs under this section shall
offer the following for students of limited English proficiency:
(1) bilingual education in prekindergarten at
campuses that offer prekindergarten classes;
(2) bilingual education in kindergarten through the
elementary grades;
(3) [(2)] bilingual education, instruction in English
as a second language, or other transitional language instruction
approved by the agency in post-elementary grades through grade 8;
and
(4) [(3)] instruction in English as a second language
in grades 9 through 12.
SECTION 2C.04. Section 29.056, Education Code, is amended
by amending Subsections (a), (d), and (g) and adding Subsections
(g-1) and (i) to read as follows:
(a) The agency shall establish standardized criteria for
the identification, assessment, and classification of students of
limited English proficiency eligible for entry into the program or
exit from the program. The student's parent must approve a
student's entry into the program[, exit from the program,] or
placement in the program. A school district must inform a student's
parent of a student's exit from the program. The school district or
parent may appeal the decision under Section 29.064. The criteria
for identification, assessment, and classification may include:
(1) results of a home language survey conducted within
four weeks of each student's enrollment to determine the language
normally used in the home and the language normally used by the
student, conducted in English and the home language, signed by the
student's parents if the student is in kindergarten through grade 8
or by the student if the student is in grades 9 through 12, and kept
in the student's permanent folder by the language proficiency
assessment committee;
(2) the results of an agency-approved English language
proficiency test administered to all students identified through
the home survey as normally speaking a language other than English
to determine the level of English language proficiency, with
students in kindergarten or grade 1 being administered an oral
English proficiency test and students in grades 2 through 12 being
administered an oral English proficiency test and, if the oral
English proficiency test demonstrates proficiency, a written
English proficiency test; and
(3) the results of an agency-approved proficiency test
in the primary language administered to all students identified
under Subdivision (2) as being of limited English proficiency to
determine the level of primary language proficiency, with students
in kindergarten or grade 1 being administered an oral primary
language proficiency test and students in grades 2 through 12 being
administered an oral and written primary language proficiency test.
(d) Not later than the 20th [10th] day after the date of the
student's classification as a student of limited English
proficiency, the language proficiency assessment committee shall
give written notice of the classification to the student's parent.
The notice must be in English and the parent's primary language.
The parents of students eligible to participate in the required
bilingual education program shall be informed of the benefits of
the bilingual education or special language program and that it is
an integral part of the school program.
(g) A district may transfer a student of limited English
proficiency out of a bilingual education or special language
program if the student is able to participate equally in a regular
all-English instructional program as determined by:
(1) agency-approved tests administered at the end of
each school year to determine the extent to which the student has
developed oral and written language proficiency and specific
language skills in [both the student's primary language and]
English;
(2) an achievement score at or above the 40th
percentile in the reading and language arts sections of an English
standardized test approved by the agency; or [and]
(3) agency-approved [other indications of a student's
overall progress, including] criterion-referenced tests and the
results of a [test scores,] subjective teacher evaluation[, and
parental evaluation].
(g-1) A school district may transfer a student of limited
English proficiency who is eligible for special education services
under Subchapter A out of a bilingual education or special language
program and into a special education program if the language
proficiency assessment committee and the student's admission,
review, and dismissal committee agree that the student has a
learning disability and would be better served in a special
education program. The student's admission, review, and dismissal
committee must document that the student has a learning disability
that cannot be addressed effectively in a bilingual education or
special language program and that the student's learning disability
is not due to the student's limited English proficiency. The
commissioner by rule shall adopt criteria for a school district to
use in transferring a student under this subsection.
(i) On approval of the student's parent, a school district
may allow a student of limited English proficiency who meets the
criteria for being transferred out of a bilingual education or
special language program to continue participating in the program.
SECTION 2C.05. Subchapter B, Chapter 29, Education Code, is
amended by adding Section 29.0561 to read as follows:
Sec. 29.0561. EVALUATION OF TRANSFERRED STUDENTS;
REENROLLMENT. (a) The language proficiency assessment committee
shall reevaluate a student who is transferred out of a bilingual
education or special language program under Section 29.056(g) if
the student earns a failing grade in a subject in the foundation
curriculum under Section 28.002(a)(1) during any grading period in
the first two school years after the student is transferred to
determine whether the student should be reenrolled in a bilingual
education or special language program.
(b) During the first two school years after a student is
transferred out of a bilingual education or special language
program under Section 29.056(g), the language proficiency
assessment committee shall review the student's performance and
consider:
(1) the total amount of time the student was enrolled
in a bilingual education or special language program;
(2) the student's grades each grading period in each
subject in the foundation curriculum under Section 28.002(a)(1);
(3) the student's performance on each assessment
instrument administered under Section 39.023(a) or (c);
(4) the number of credits the student has earned
toward high school graduation, if applicable; and
(5) any disciplinary actions taken against the student
under Subchapter A, Chapter 37.
(c) After an evaluation under this section, the language
proficiency assessment committee may require intensive instruction
for the student or reenroll the student in a bilingual education or
special language program.
SECTION 2C.06. 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 9
through 12 who have dropped out of school or who are at risk of
dropping out of school.
(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 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 shall compute average daily attendance
for students served under this section for purposes of determining
state funding. In computing average daily attendance for purposes
of this section, a student may accumulate hours of instruction.
Funding under this subsection is determined based on the number of
instructional days provided in the district calendar and a
seven-hour school day. Hours of attendance under this subsection
may be accumulated over the school year, including any summer or
vacation sessions, to determine average daily attendance. The
attendance of a student who accumulates less than the number of
attendance hours required under this subsection shall be
proportionately reduced for funding purposes. The commissioner may
set a maximum funding amount for an individual course under this
section.
(e) The commissioner may adopt rules for the administration
of this section.
SECTION 2C.07. Effective September 1, 2006, Subchapter D,
Chapter 29, Education Code, is amended by adding Section 29.124 to
read as follows:
Sec. 29.124. PERFORMANCE STANDARDS; STATE FUNDING. (a)
The commissioner shall adopt the performance standards developed by
the agency under the pilot project required by Rider 52, page
III-17, Chapter 1330, Acts of the 78th Legislature, Regular
Session, 2003 (the General Appropriations Act), for assessing the
performance in English language arts, mathematics, science, and
social studies of students in a program for gifted and talented
students. The commissioner may adopt performance standards for
assessing the performance in other subjects or at other grade
levels of students in a program for gifted and talented students.
The commissioner shall establish the minimum level of student
performance necessary to comply with the performance standards and
may periodically raise the minimum level as the commissioner
determines necessary.
(b) A school district is not required to use the performance
standards adopted under Subsection (a).
(c) From funds appropriated for that purpose, for each
student who meets the minimum level of performance on the
performance standards adopted under Subsection (a), a school
district is entitled to $100. A school district must use funds
received under this subsection in providing a program for gifted
and talented students under this subchapter. The amount
appropriated for any fiscal year for purposes of this subsection
may not exceed $6 million.
(d) The commissioner may adopt rules necessary to
administer this section.
(e) From the funds appropriated under this section, the
commissioner may designate an amount necessary to fund the agency's
administrative costs of implementing this section.
SECTION 2C.08. Section 37.008, Education Code, is amended
by adding Subsection (n) to read as follows:
(n) For purposes of accountability under Chapter 39, a
student placed in a disciplinary alternative education program is
reported as if the student were enrolled at the student's assigned
campus in the student's regularly assigned education program,
including a special education program.
SECTION 2C.09. Section 39.022, Education Code, is amended
to read as follows:
Sec. 39.022. ASSESSMENT PROGRAM. (a) The State Board of
Education by rule shall create and implement a statewide assessment
program that is knowledge- and skills-based to ensure school
accountability for student achievement that achieves the goals
provided under Section 4.002. After adopting rules under this
section, the State Board of Education shall consider the importance
of maintaining stability in the statewide assessment program when
adopting any subsequent modification of the rules.
(b) The commissioner by rule shall provide for the
administration of assessment instruments under this subchapter.
SECTION 2C.10. Section 39.023, Education Code, is amended
by amending Subsections (a)-(e), (i), (j), and (l)-(n) and adding
Subsections (a-1) and (b-1) to read as follows:
(a) The agency shall adopt or develop appropriate
criterion-referenced assessment instruments designed to assess
essential knowledge and skills in reading, writing, mathematics,
social studies, and science. Except as otherwise provided by this
subchapter, all [All] students[, except students assessed under
Subsection (b) or (l) or exempted under Section 39.027,] shall be
assessed in:
(1) mathematics, annually in grades three through
seven without the aid of technology and in grades eight through 11
with the aid of technology on any assessment instruments that
include algebra;
(2) reading, annually in grades three through nine;
(3) writing, including spelling and grammar, in grades
four and seven;
(4) English language arts, in grades [grade] 10 and
11;
(5) social studies, in grades eight, [and] 10, and 11;
(6) science, in grades five, eight, [and] 10, and 11;
and
(7) any other subject and grade required by federal
law.
(a-1) An assessment instrument under this section may
include questions that test a broader range of knowledge and skills
or that are at a higher difficulty level for the purpose of
differentiating student achievement. A student may not be required
to answer a question described by this subsection correctly to
perform satisfactorily on the assessment instrument or to be
promoted to the next grade level. To ensure a valid bank of
questions for use each year, the agency is not required to release a
question that is developed for purposes of this subsection until
after the fifth school year the question is used on an assessment
instrument administered under this section.
(b) The agency shall develop or adopt appropriate
criterion-referenced assessment instruments to be administered to
each student in a special education program under Subchapter A,
Chapter 29, who receives modified instruction in the essential
knowledge and skills identified under Section 28.002 for the
assessed subject but for whom an assessment instrument adopted
under Subsection (a), even with allowable accommodations
[modifications], would not provide an appropriate measure of
student achievement, as determined by the student's admission,
review, and dismissal committee. The assessment instruments
required under this subsection must assess essential knowledge and
skills [and growth] in the subjects of reading, mathematics, and
writing and any other subject required by federal law. A student's
admission, review, and dismissal committee shall determine whether
any allowable accommodation [modification] is necessary in
administering to the student an assessment instrument required
under this subsection or whether an alternate assessment instrument
must be used to measure alternate academic achievement standards.
A student's admission, review, and dismissal committee shall
determine the high school graduation assessment requirements for a
student in a special education program under Subchapter A, Chapter
29, and may use local alternative assessment instruments if
multiple testing opportunities are not available for a student. To
the extent practicable, the [The] assessment instruments required
under this subsection shall be administered on the same schedule as
the assessment instruments administered under Subsection (a). The
commissioner shall adopt rules to implement this subsection.
(b-1) The agency shall adopt or develop appropriate
criterion-referenced instruments as required by federal law
designed to measure alternate academic achievement standards for
students in a special education program under Subchapter A, Chapter
29, with the most significant cognitive disabilities.
(c) The [agency shall also adopt] secondary exit-level
assessment instruments designed to be administered to students in
grade 11 under Subsection (a) must [to] assess essential knowledge
and skills in mathematics, English language arts, social studies,
and science. The mathematics section must include at least Algebra
I and geometry with the aid of technology. The English language
arts section must include at least English III and must include the
assessment of essential knowledge and skills in writing. The social
studies section must include early American and United States
history. The science section must include at least biology and
integrated chemistry and physics. The assessment instruments must
be designed to assess a student's mastery of minimum skills
necessary for high school graduation and readiness to enroll in an
institution of higher education. [If a student is in a special
education program under Subchapter A, Chapter 29, the student's
admission, review, and dismissal committee shall determine whether
any allowable modification is necessary in administering to the
student an assessment instrument required under this subsection or
whether the student should be exempted under Section 39.027(a)(2).
The State Board of Education shall administer the assessment
instruments. The State Board of Education shall adopt a schedule
for the administration of secondary exit-level assessment
instruments.] Each student who did not perform satisfactorily on
any secondary exit-level assessment instrument when initially
tested shall be given multiple opportunities to retake that
assessment instrument. A student who performs at or above a level
established by the Texas Higher Education Coordinating Board on the
secondary exit-level assessment instruments is exempt from the
requirements of Section 51.306.
(d) The commissioner may participate in multistate efforts
to develop voluntary standardized end-of-course assessment
instruments. The commissioner by rule may require a school
district to administer an end-of-course assessment instrument
developed through the multistate efforts. The admission, review,
and dismissal committee of a student in a special education program
under Subchapter A, Chapter 29, shall determine whether any
allowable accommodation [modification] is necessary in
administering to the student an end-of-course assessment
instrument or whether the student should be exempted [under Section
39.027(a)(2)].
(e) Under rules adopted by the State Board of Education,
[every other year,] the agency shall release the questions and
answer keys to each assessment instrument administered under
Subsection (a), (b), (c), (d), or (l) or Section 39.027 not later
than the second anniversary of the date [after the last time] the
instrument was [is] administered [for that school year]. To ensure
a valid bank of questions for use each year, the agency is not
required to release a question that is being field-tested and was
not used to compute the student's score on the instrument. The
agency shall also release, under board rule, each question that is
no longer being field-tested and that was not used to compute a
student's score.
(i) The provisions of this section, except Subsection (d),
are subject to modification by rules adopted under Section 39.022.
Each assessment instrument adopted or developed under this section
[those rules and each assessment instrument required under
Subsection (d)] must be reliable and valid and must meet any
applicable federal requirements for measurement of student
progress.
(j) The commissioner shall develop a standardized
end-of-course assessment instrument for Algebra I. The
commissioner by rule may require a school district to administer an
end-of-course assessment instrument in Algebra I. The admission,
review, and dismissal committee of a student in a special education
program under Subchapter A, Chapter 29, shall determine whether any
allowable accommodation [modification] is necessary in
administering to the student an end-of-course assessment
instrument or whether the student should be exempted [under Section
39.027(a)(2)].
(l) The agency [State Board of Education] shall adopt or
develop a Spanish version [rules for the administration] of the
assessment instruments adopted under Subsection (a) for [in Spanish
to] students in grades three through six who are of limited English
proficiency, as defined by Section 29.052, whose primary language
is Spanish, and who are not otherwise exempt from the
administration of an assessment instrument under Section 39.027
[39.027(a)(3) or (4)]. Each student of limited English proficiency
whose primary language is Spanish, other than a student to whom
Subsection (b) or (b-1) applies, may be assessed using assessment
instruments in Spanish under this subsection for up to three years
or assessment instruments in English under Subsection (a). The
language proficiency assessment committee established under
Section 29.063 shall determine which students are administered
assessment instruments in Spanish under this subsection.
(m) The commissioner by rule shall develop procedures under
which the language proficiency assessment committee established
under Section 29.063 shall determine which students in grades three
through 10 are exempt from the administration of the assessment
instruments under Section 39.027 [39.027(a)(3) and (4)]. The rules
adopted under this subsection shall ensure that the language
proficiency assessment committee provides that the exempted
students are administered the assessment instruments under
Subsections (a) and (c) at the earliest practical date. As
necessary to comply with federal requirements, the commissioner by
rule shall develop procedures under which a student who is exempt
from the administration of an assessment instrument under Section
39.027 is administered a linguistically accommodated assessment
instrument.
(n) This subsection applies only to a student who is
determined to have dyslexia or a related disorder and who is an
individual with a disability under 29 U.S.C. Section 705(20) [and
its subsequent amendments]. The agency shall adopt or develop
appropriate [criterion-referenced] assessment administration
procedures, including accommodations for a [instruments designed
to assess the ability of and to be administered to each] student to
whom this subsection applies. The [for whom the assessment
instruments adopted under Subsection (a), even with allowable
modifications, would not provide an appropriate measure of student
achievement, as determined by the] committee established by the
board of trustees of the district to determine the placement of
students with dyslexia or related disorders[. The committee] shall
determine whether the [any] allowable accommodations are
[modification is] necessary in administering to a student an
assessment instrument required under this section [subsection. The
assessment instruments required under this subsection shall be
administered on the same schedule as the assessment instruments
administered under Subsection (a)].
SECTION 2C.11. Sections 39.024(a) and (c), Education Code,
are amended to read as follows:
(a) Except as otherwise provided by this subsection, the
State Board of Education shall determine the level of performance
considered to be satisfactory on the assessment instruments
administered under Section 39.023. The commissioner by rule
[admission, review, and dismissal committee of a student being
assessed under Section 39.023(b)] shall determine the level of
performance considered to be satisfactory on the assessment
instruments administered under Section 39.023(b) or (b-1) [to that
student] in accordance with applicable federal requirements
[criteria established by agency rule].
(c) The agency shall develop study guides for the assessment
instruments administered under Sections 39.023(a) and (l) [(c)].
To assist parents in providing assistance during the period that
school is recessed for summer, each school district shall
distribute the study guides to parents of students who do not
perform satisfactorily on one or more parts of the [an] assessment
instrument [administered under this subchapter].
SECTION 2C.12. Section 39.025(a), Education Code, is
amended to read as follows:
(a) A student may not receive a high school diploma until
the student has performed satisfactorily on the secondary
exit-level assessment instruments for English language arts,
mathematics, social studies, and science administered under
Section 39.023(a) [39.023(c)]. This subsection does not require a
student to demonstrate readiness to enroll in an institution of
higher education.
SECTION 2C.13. Effective September 1, 2006, Subchapter B,
Chapter 39, Education Code, is amended by adding Section 39.0261 to
read as follows:
Sec. 39.0261. COLLEGE PREPARATION ASSESSMENTS. (a) In
addition to the assessment instruments otherwise authorized or
required by this subchapter, a school district may administer to
students in any grade an established, valid, reliable, and
nationally normed college preparation assessment instrument.
(b) The agency shall:
(1) select and approve vendors of the specific
assessment instruments administered under this section; and
(2) subject to the restrictions of Subsection (c), pay
all fees associated with the administration of the assessment
instrument:
(A) from funds appropriated for the purpose; or
(B) if funds are not appropriated for the
purpose, from funds allotted under the Foundation School Program,
and the commissioner 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.
(c) The agency may pay only for the administration of the
assessment instrument at two different grade levels in each
district each year.
(d) A vendor that administers an assessment instrument for a
district under this section shall report the results of the
assessment instrument to the agency.
SECTION 2C.14. Sections 39.027(a), (e), and (g), Education
Code, are amended to read as follows:
(a) A student in grades three through 10 may be exempted
from the administration of an assessment instrument under:
(1) [Section 39.023(a) or (b) if the student is
eligible for a special education program under Section 29.003 and
the student's individualized education program does not include
instruction in the essential knowledge and skills under Section
28.002 at any grade level;
[(2) Section 39.023(c) or (d) if the student is
eligible for a special education program under Section 29.003 and:
[(A) the student's individualized education
program does not include instruction in the essential knowledge and
skills under Section 28.002 at any grade level; or
[(B) the assessment instrument, even with
allowable modifications, would not provide an appropriate measure
of the student's achievement as determined by the student's
admission, review, and dismissal committee;
[(3)] Section 39.023(a), (b), (b-1), or (l) for a
period of up to one year after initial enrollment in a school in the
United States if the student is of limited English proficiency, as
defined by Section 29.052, and has not demonstrated proficiency in
English as determined by the assessment system under Subsection
(e); or
(2) [(4)] Section 39.023(a), (b), (b-1), or (l) for a
period of up to two years in addition to the exemption period
authorized by Subdivision (1) [(3)] if the student has received an
exemption under Subdivision (1) [(3)] and:
(A) is a recent unschooled immigrant; or
(B) is in a grade for which no assessment
instrument in the primary language of the student is available.
(e) As provided by applicable federal requirements, the
[The] commissioner shall develop an assessment system that shall be
used for evaluating the academic progress toward attaining academic
language proficiency in English, including reading proficiency in
English, of all students of limited English proficiency, as defined
by Section 29.052. A student who has demonstrated the designated
level of [is exempt from the administration of an assessment
instrument under Subsection (a)(3) or (4) who achieves] reading
proficiency in English as determined by the assessment system
developed under this subsection is not eligible for an exemption
under Subsection (a)(1) or (2). [shall be administered the
assessment instruments described by Sections 39.023(a) and (c).
The performance under the assessment system developed under this
subsection of students to whom Subsection (a)(3) or (4) applies
shall be included in the academic excellence indicator system under
Section 39.051, the performance report under Section 39.053, and
the comprehensive annual report under Section 39.182.]
(g) For purposes of this section, "recent unschooled
immigrant" means an immigrant who initially enrolled in a school in
the United States not more than 12 months before the date of the
administration of an assessment instrument under Section 39.023
[39.023(a) or (l)] and who, as a result of inadequate schooling
outside of the United States, lacks the necessary foundation in the
essential knowledge and skills of the curriculum prescribed under
Section 28.002 as determined by the language proficiency assessment
committee established under Section 29.063. For purposes of this
subsection and to the extent authorized by federal law, a child's
prior enrollment in a school in the United States shall be
determined on the basis of documents and records required under
Section 25.002(a).
SECTION 2C.15. Subchapter B, Chapter 39, Education Code, is
amended by adding Sections 39.034 and 39.035 to read as follows:
Sec. 39.034. MEASURE OF INDIVIDUAL STUDENT GROWTH ON
ASSESSMENT INSTRUMENTS. (a) The commissioner shall determine a
method by which the agency may measure individual student growth in
achievement from one school year to the next on an assessment
instrument required under this subchapter.
(b) The agency shall report to each school district the
comparisons made under Subsection (a). 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.
(c) The school a student attends shall provide a record of
the comparison made under this section and provided to the school
under Subsection (b) in a written notice to the student's parents.
(d) 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.
(e) The commissioner shall implement this section not later
than September 1, 2006. This subsection expires January 1, 2008.
Sec. 39.035. CRIMINAL PENALTY RELATED TO ADMINISTRATION OF
ASSESSMENT INSTRUMENT. (a) An administrator, teacher, other
employee, contractor, or volunteer of a school district or public
charter district commits an offense if, for the primary purpose of
influencing the results of an assessment instrument administered
under this subchapter, the person intentionally:
(1) discriminates in school admissions based on a
student's academic ability in a manner that is not otherwise
permitted by law;
(2) refers a student to a special education program
under Subchapter A, Chapter 29, or a bilingual or special language
program under Subchapter B, Chapter 29, for the purpose of gaining
an exemption for the student from the administration of the
assessment instrument;
(3) requires or encourages a student to be absent from
a school campus during the day on which the assessment instrument is
administered at the campus;
(4) tampers with the assessment instrument or related
materials to alter the results of the assessment instrument; or
(5) engages in any other action designed to alter the
accuracy of the results of the assessment instrument.
(b) An offense under this section is a Class A misdemeanor.
(c) An offense under Subsection (a)(4) is in addition to any
offense under Section 37.10(c)(2), Penal Code, arising from the
same action.
SECTION 2C.16. 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) student growth in achievement, as measured under
Section 39.034, aggregated by grade level and subject area;
(9) the number and percentage of students at risk of
dropping out of school, the number and percentage of those students
who are administered each assessment instrument required under
Section 39.023, the number and percentage of those students who
perform satisfactorily on the assessment instruments, and the
results of those students, grouped by number and percentage, on the
assessment instruments, disaggregated by subject area and grade
level;
(10) 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;
(11) [(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;
(12) [(10)] the percentage of students exempted, by
exemption category, from the assessment program generally
applicable under this chapter; [and]
(13) [(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);
(14) 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);
(15) for students of limited English proficiency, as
defined by Section 29.052, a measure of progress toward English
language proficiency, as determined by the commissioner, including
the student's performance after transferring out of a bilingual
education program or instruction in English as a second language;
and
(16) the performance of non-educationally
disadvantaged students on an assessment instrument required under
Sections 39.023(a), (b), (c), and (l) and high school dropout and
completion rates.
SECTION 2C.17. 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 indicators [indicator]
under Subsections (b)(10), (11), and (12) [Subsection (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 2C.18. 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 (15) and
specifically including the indicators adopted under Sections
39.051(b)(9) and (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 2C.19. Effective September 1, 2006, 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 (7) and (10) 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 (7) and (10).
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 2C.20. Subchapter D, Chapter 39, Education Code, is
amended by adding Section 39.0722 to read as follows:
Sec. 39.0722. MEASURE OF POSTSECONDARY PREPARATION. (a)
In addition to school district performance ratings under Section
39.072, the commissioner shall annually rate districts according to
the degree to which the districts prepare students for
postsecondary success, including student performance on the
applicable indicators under Sections 39.051(b) and 39.0721. The
commissioner shall consult with the P-16 Council established under
Section 61.077 when adopting criteria under this section.
(b) The commissioner may adopt rules as necessary to
administer this section.
SECTION 2C.21. 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 (7) and (10) and determine if a change in the
accreditation status of the district is warranted. Notwithstanding
any other provision of this code, the [The] commissioner shall
[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 (7) and (10) [(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 2C.22. 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 (7) and
(10) of one or more campuses in a district, the agency may conduct
an on-site evaluation of those campuses only.
SECTION 2C.23. Subchapter F, Chapter 39, Education Code, is
amended by adding Section 39.113 to read as follows:
Sec. 39.113. STATE INCENTIVE PROGRAM FOR IMPROVING STUDENT
PERFORMANCE ON AT-RISK CAMPUSES. (a) The commissioner shall adopt
rules to create an incentive award system for annual growth in
student achievement. A school that achieves incremental growth in
student achievement, as described in Subsection (b), is eligible
for an award if the school:
(1) has a student population of at least 65 percent
educationally disadvantaged students;
(2) achieves an accreditation performance rating of
academically acceptable or better; and
(3) demonstrates superior growth in the academic
performance of educationally disadvantaged students.
(b) The commissioner by rule shall adopt performance
criteria to measure annual growth in student academic performance.
The commissioner shall consider the following criteria, as
applicable:
(1) annual growth in student achievement that
contributes to closing performance gaps among various populations
of students;
(2) improvements in student scores on the assessment
instruments required under Section 39.023;
(3) growth in high school completion rates;
(4) improvement in student scores on college advanced
placement tests; and
(5) any other factor that contributes to student
achievement.
(c) From funds appropriated for the purposes of this
section, the commissioner shall award grants to campuses that meet
performance criteria adopted under Subsection (b). The
commissioner shall allocate awards to campuses not later than
December 1 of each year, based on growth in student achievement as
measured for the preceding two school years.
(c-1) The commissioner shall award grants under this
section beginning September 1, 2006. This subsection expires
January 1, 2007.
(d) At least 75 percent of an award under this section must
be used for additional teacher compensation at the campus level.
The commissioner by rule shall provide for allocating awards under
this subsection, including providing individual awards of at least
$3,000 for each teacher at a campus receiving an award under this
subsection.
(e) Grants from funds appropriated for the award program may
not exceed $50 million each year except as expressly authorized by
the General Appropriations Act or other law.
(f) A determination of the commissioner under this section
is final and may not be appealed.
SECTION 2C.24. Section 39.132, Education Code, is amended
to read as follows:
Sec. 39.132. SANCTIONS FOR ACADEMICALLY UNACCEPTABLE
CAMPUSES. (a) If a campus performance is below any standard under
Section 39.073 [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; or
(5) [(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].
(a-1) Notwithstanding Subsection (a), if a campus has been
identified as academically unacceptable under this section or the
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 shall
select and assign the technical assistance team not later than:
(1) October 1 after identifying the campus as
academically unacceptable or otherwise subject to this subsection;
or
(2) the 30th day after the date the campus is provided
notice that the campus's appeal of its performance rating has been
denied.
(a-2) A technical intervention team assigned under
Subsection (a-1) to a campus that is academically unacceptable
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 do the assessment. Some factors to be
considered are:
(1) an assessment of the staff to determine the
percentage of certified teachers who are teaching in their field,
the number of teachers with less than three years of experience, and
teacher turnover rates;
(2) compliance with the appropriate class size rules
and number of class size waivers received;
(3) an assessment of the quality, quantity, and
appropriateness of instructional materials, including the
availability of technology-based instructional materials;
(4) a report on the parental involvement strategies
and the effectiveness of such strategies;
(5) an assessment of the extent and quality of the
mentoring program provided for new teachers on that campus;
(6) an assessment of the type and quality of the
professional development provided to the staff;
(7) a demographic analysis of the student population,
including student demographics, at-risk populations, and special
education percentages;
(8) a report of disciplinary incidents and school
safety information;
(9) financial and accounting practices; and
(10) an assessment of appropriateness of the
curriculum and teaching strategies.
(a-3) Upon completion of the evaluation the intervention
team will recommend actions, including any necessary reallocation
of resources and/or additional funds taken from funds to be set
aside by the agency to assist campuses in meeting the standards
specified in the intervention plan, 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.
(a-4) After all the conditions of the intervention plan have
been certified by the technical intervention team, if the campus
fails to meet accreditation standards for two consecutive years
then the commissioner shall order the campus to be reconstituted or
pursue alternative management under Section 39.1321. In
reconstituting the campus, the technical intervention team shall
decide 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.
(b) Notwithstanding Subsection (a), if [If] a campus has
been identified as academically unacceptable [a low-performing
campus] for [a period of] two consecutive school years [or more],
the commissioner shall order the reconstitution of [closure of the
district or charter program on the campus or reconstitute] the
campus or pursue alternative management under Section 39.1321. In
reconstituting the campus, a special 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.
(c) The special campus intervention team shall decide [be
assembled for the purpose of deciding] which educators may be
retained at that campus. A principal who has been employed by the
campus in that capacity during the two-year period described by
Subsection (b) 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 special campus intervention team
determines that a pattern exists of significant academic growth by
students taught by the teacher. If an educator is not retained, the
educator may be assigned to another position in the district.
(d) In developing and executing a school improvement plan
under Subsection (b), the special 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; and
(2) provide technical assistance based on
scientifically based research, including data analysis, academic
deficiency identification, intervention implementation, and budget
analysis, to strengthen and improve the instructional program at
the campus.
(e) A special campus intervention team assembled under
Subsection (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.
SECTION 2C.25. Subchapter G, Chapter 39, Education Code, is
amended by adding Sections 39.1321 and 39.1322 to read as follows:
Sec. 39.1321. MANAGEMENT OF CERTAIN ACADEMICALLY
UNACCEPTABLE CAMPUSES. (a) A campus is subject to this section if
the campus has been identified as academically unacceptable under
Section 39.132 for two consecutive school years.
(b) The commissioner shall solicit proposals from qualified
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 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 scientifically based
research to school intervention strategies; and
(4) any other experience or qualifications the
commissioner determines necessary.
(f) 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.
(g) 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.
(h) Notwithstanding any other provision of this code, the
funding for a campus operated by a managing entity must be
equivalent to the funding of the other campuses in the district on a
per student basis so that the managing entity receives the same
funding the campus would otherwise have received.
(i) 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.
(j) The commissioner may adopt rules necessary to implement
this section.
Sec. 39.1322. REVIEW OF SANCTIONS FOR CAMPUSES SERVING
RESIDENTIAL FACILITIES. (a) A school district or public charter
district may petition the commissioner to review an academically
unacceptable rating assigned to a campus if the campus
predominantly served students residing in a residential facility
during the rating period.
(b) If the commissioner determines that the basis for
identifying the campus as academically unacceptable was limited to
a condition that was not related to the educational purpose of the
residential facility, the commissioner may take any of the
following actions as the commissioner determines appropriate:
(1) change, modify, or suspend the academically
unacceptable rating; or
(2) impose any sanction otherwise authorized under
Section 39.131 or 39.132.
(c) The commissioner may consider a factor other than a
factor used to assign a rating in evaluating a campus under this
section. The commissioner may assign a special campus intervention
team under Section 39.132(a)(5) at the expense of the school
district or public charter district as provided by Section 39.134
to develop a long-term intervention plan to improve services for
students.
(d) On a determination that a campus subject to this section
is appropriately meeting the educational needs of its students, the
commissioner may waive revocation of a public charter district
under Section 11A.107(b) for a period not to exceed two years. A
waiver under this subsection may be extended for additional
two-year periods based on subsequent evaluations of the campus.
(e) This section does not limit the commissioner's ability
to sanction a public charter district for the performance of a
campus subject to this section under Section 11A.107(a) or any
other law.
(f) A decision by the commissioner under this section is
final and may not be appealed.
SECTION 2C.26. Subchapter G, Chapter 39, Education Code, is
amended by adding Section 39.1371 to read as follows:
Sec. 39.1371. INTERVENTION OPERATIONS. (a) The agency is
responsible for managing an intervention of a campus subject to
sanctions under this subchapter.
(b) The agency shall:
(1) monitor the progress of special campus
intervention teams appointed by the commissioner under this
subchapter; and
(2) supervise the activities of the management
entities under Section 39.1321.
(c) The agency shall:
(1) establish by rule and publish school improvement
objectives;
(2) advocate for the increased use of research-based
effective practices; and
(3) coordinate campus improvement activities of the
agency and regional education service centers.
(d) The commissioner may contract for services under this
section.
SECTION 2C.27. Section 39.182(a), Education Code, is
amended to read as follows:
(a) Not later than December 1 of each year, the agency shall
prepare and deliver to the governor, the lieutenant governor, the
speaker of the house of representatives, each member of the
legislature, the Legislative Budget Board, and the clerks of the
standing committees of the senate and house of representatives with
primary jurisdiction over the public school system a comprehensive
report covering the preceding school year and containing:
(1) an evaluation of the achievements of the state
educational program in relation to the statutory goals for the
public education system under Section 4.002;
(2) an evaluation of the status of education in the
state as reflected by the academic excellence indicators adopted
under Section 39.051;
(3) a summary compilation of overall student
performance on academic skills assessment instruments required by
Section 39.023 with the number and percentage of students exempted
from the administration of those instruments and the basis of the
exemptions, aggregated by grade level, subject area, campus, and
district, with appropriate interpretations and analysis, and
disaggregated by race, ethnicity, gender, and socioeconomic
status;
(4) a summary compilation of overall performance of
students placed in a disciplinary [an] alternative education
program established under Section 37.008 on academic skills
assessment instruments required by Section 39.023 with the number
of those students exempted from the administration of those
instruments and the basis of the exemptions, aggregated by
district, grade level, and subject area, with appropriate
interpretations and analysis, and disaggregated by race,
ethnicity, gender, and socioeconomic status;
(5) a summary compilation of the progress [overall
performance] of students at risk of dropping out of school, as
defined by Section 29.081(d), including information described by
the academic excellence indicators under Sections
39.051(b)(8)-(11), provided statewide and aggregated by district,
on academic skills assessment instruments required by Section
39.023 and any other assessment instrument required by the
commissioner [with the number of those students exempted from the
administration of those instruments and the basis of the
exemptions, aggregated by district, grade level, and subject area],
with appropriate interpretations and analysis, and disaggregated
by race, ethnicity, gender, and socioeconomic status;
(6) an evaluation of the correlation between student
grades and student performance on academic skills assessment
instruments required by Section 39.023;
(7) a statement of the dropout rate of students in
grade levels 7 through 12, expressed in the aggregate and by grade
level, and a statement of the completion rates of students for grade
levels 9 through 12;
(8) a statement of:
(A) the completion rate of students who enter
grade level 9 and graduate not more than four years later;
(B) the completion rate of students who enter
grade level 9 and graduate, including students who require more
than four years to graduate;
(C) the completion rate of students who enter
grade level 9 and not more than four years later receive a high
school equivalency certificate;
(D) the completion rate of students who enter
grade level 9 and receive a high school equivalency certificate,
including students who require more than four years to receive a
certificate; and
(E) the number and percentage of all students who
have not been accounted for under Paragraph (A), (B), (C), or (D);
(9) a statement of the projected cross-sectional and
longitudinal dropout rates for grade levels 9 through 12 for the
next five years, assuming no state action is taken to reduce the
dropout rate;
(10) a description of a systematic, measurable plan
for reducing the projected cross-sectional and longitudinal
dropout rates to five percent or less for the 1997-1998 school year;
(11) a summary of the information required by Section
29.083 regarding grade level retention of students and information
concerning:
(A) the number and percentage of students
retained; and
(B) the performance of retained students on
assessment instruments required under Section 39.023(a);
(12) information, aggregated by district type and
disaggregated by race, ethnicity, gender, and socioeconomic
status, on:
(A) the number of students placed in a
disciplinary [an] alternative education program established under
Section 37.008;
(B) the average length of a student's placement
in a disciplinary [an] alternative education program established
under Section 37.008;
(C) the academic performance of students on
assessment instruments required under Section 39.023(a) during the
year preceding and during the year following placement in a
disciplinary [an] alternative education program; and
(D) the dropout rates of students who have been
placed in a disciplinary [an] alternative education program
established under Section 37.008;
(13) a list of each school district or campus that does
not satisfy performance standards, with an explanation of the
actions taken by the commissioner to improve student performance in
the district or campus and an evaluation of the results of those
actions;
(14) an evaluation of the status of the curriculum
taught in public schools, with recommendations for legislative
changes necessary to improve or modify the curriculum required by
Section 28.002;
(15) a description of all funds received by and each
activity and expenditure of the agency;
(16) a summary and analysis of the instructional
expenditures ratios and instructional employees ratios of school
districts computed under Section 44.0071;
(17) a summary of the effect of deregulation,
including exemptions and waivers granted under Section 7.056 or
39.112;
(18) a statement of the total number and length of
reports that school districts and school district employees must
submit to the agency, identifying which reports are required by
federal statute or rule, state statute, or agency rule, and a
summary of the agency's efforts to reduce overall reporting
requirements;
(19) a list of each school district that is not in
compliance with state special education requirements, including:
(A) the period for which the district has not
been in compliance;
(B) the manner in which the agency considered the
district's failure to comply in determining the district's
accreditation status; and
(C) an explanation of the actions taken by the
commissioner to ensure compliance and an evaluation of the results
of those actions;
(20) an evaluation of public charter districts,
including:
(A) the academic performance of students
enrolled in public charter districts, disaggregated by race,
ethnicity, gender, and socioeconomic status;
(B) the costs of instruction, administration,
and transportation incurred by public charter districts; and
(C) other issues, as determined by the
commissioner [a comparison of the performance of open-enrollment
charter schools and school districts on the academic excellence
indicators specified in Section 39.051(b) and accountability
measures adopted under Section 39.051(g), with a separately
aggregated comparison of the performance of open-enrollment
charter schools predominantly serving students at risk of dropping
out of school, as defined by Section 29.081(d), with the
performance of school districts]; and
(21) any additional information considered important
by the commissioner or the State Board of Education.
SECTION 2C.28. Section 39.202(a), Education Code, is
amended to read as follows:
(a) The commissioner shall, in consultation with the
comptroller, develop and implement a financial accountability
rating system for school districts in this state that distinguishes
among districts' varying levels of financial performance.
SECTION 2C.29. Subchapter I, Chapter 39, Education Code, is
amended by adding Section 39.205 to read as follows:
Sec. 39.205. REPORT TO LEGISLATURE. (a) Not later than
September 1, 2006, the agency shall submit a report to the
legislature on the status of the financial accountability system
that recommends to the legislature methods for linking school
district financial management performance and academic
performance.
(b) This section expires September 2, 2006.
SECTION 2C.30. Subchapter A, Chapter 44, Education Code, is
amended by adding Section 44.0073 to read as follows:
Sec. 44.0073. INSTRUCTIONAL COSTS. (a) For purposes of
this section:
(1) "Direct instructional costs" includes a school
district's expenses related to instruction, instructional
resources and media services, curriculum development,
instructional staff development, instructional leadership, school
leadership, and evaluation and counseling services.
(2) "Indirect instructional costs" includes:
(A) a school district's expenses related to
social work services, health services, student transportation,
food services, facility maintenance and operations, security and
monitoring services, and data processing services; and
(B) payments to another district under the public
education grant program under Subchapter G, Chapter 29, payments to
another district that is a member of a shared services arrangement,
payments to a fiscal agent, and payments under Section 37.012 to a
juvenile justice alternative education program.
(b) For purposes of school district financial
accountability, the agency shall identify each district's direct
and indirect instructional costs for the preceding fiscal year and
make that information available to the public on the agency's
Internet website.
PART D. INSTRUCTIONAL MATERIALS
SECTION 2D.01. Section 7.055(b)(28), Education Code, is
amended to read as follows:
(28) The commissioner shall perform duties relating to
the funding, adoption, and purchase of instructional materials
[textbooks] under Chapter 31.
SECTION 2D.02. Section 7.056(f), Education Code, is amended
to read as follows:
(f) A school district or campus that is required to develop
and implement a student achievement improvement plan under Section
39.131 or 39.132 may receive an exemption or waiver under this
section from any law or rule other than:
(1) a prohibition on conduct that constitutes a
criminal offense;
(2) a requirement imposed by federal law or rule;
(3) a requirement, restriction, or prohibition
imposed by state law or rule relating to:
(A) public school accountability as provided by
Subchapters B, C, D, and G, Chapter 39; or
(B) educator rights and benefits under
Subchapters A, C, D, E, F, G, and I, Chapter 21, or under Subchapter
A, Chapter 22; or
(4) [textbook] selection of instructional materials
under Chapter 31.
SECTION 2D.03. Section 7.102(c)(23), Education Code, is
amended to read as follows:
(23) The board shall adopt and purchase or license
instructional materials [textbooks] as provided by Chapter 31 and
adopt rules required by that chapter.
SECTION 2D.04. Sections 7.108(a) and (c), Education Code,
are amended to read as follows:
(a) A person interested in selling bonds of any type, [or] a
publisher, or any other person engaged in manufacturing, shipping,
selling, or advertising instructional materials [textbooks] or
otherwise connected with the instructional material [textbook]
business commits an offense if the person makes or authorizes a
political contribution to or takes part in, directly or indirectly,
the campaign of any person seeking election to or serving on the
board.
(c) In this section:
(1) "Instructional material" and "publisher" have the
meanings assigned by Section 31.002.
(2) "Political contribution" has the meaning assigned
by Section 251.001, Election Code.
[(2) "Textbook" has the meaning assigned by Section
31.002.]
SECTION 2D.05. The heading to Section 7.112, Education
Code, is amended to read as follows:
Sec. 7.112. REPRESENTATION OF [TEXTBOOK] PUBLISHER OF
INSTRUCTIONAL MATERIALS BY FORMER MEMBER OF BOARD.
SECTION 2D.06. Section 7.112(a), Education Code, is amended
to read as follows:
(a) A former member of the State Board of Education who is
employed by or otherwise receives compensation from a [textbook]
publisher of instructional materials may not, before the second
anniversary of the date on which the person last served as a member
of the State Board of Education:
(1) confer with a member of the board of trustees of a
school district concerning instructional materials [a textbook]
published by that [textbook] publisher; or
(2) appear at a meeting of the board of trustees on
behalf of the [textbook] publisher.
SECTION 2D.07. Section 7.112(c)(2), Education Code, is
amended to read as follows:
(2) "Instructional material" and "publisher"
["Publisher" and "textbook"] have the meanings assigned by Section
31.002.
SECTION 2D.08. Section 11.158(b), Education Code, is
amended to read as follows:
(b) The board may not charge fees for:
(1) instructional materials [textbooks], workbooks,
laboratory supplies, or other supplies necessary for participation
in any instructional course except as authorized under this code;
(2) field trips required as a part of a basic education
program or course;
(3) any specific form of dress necessary for any
required educational program or diplomas;
(4) the payment of instructional costs for necessary
school personnel employed in any course or educational program
required for graduation;
(5) library materials [books] required to be used for
any educational course or program, other than fines for lost,
damaged, or overdue materials [books];
(6) admission to any activity the student is required
to attend as a prerequisite to graduation;
(7) admission to or examination in any required
educational course or program; or
(8) lockers.
SECTION 2D.09. Section 11.164(a), Education Code, is
amended to read as follows:
(a) The board of trustees of each school district shall
limit redundant requests for information and the number and length
of written reports that a classroom teacher is required to prepare.
A classroom teacher may not be required to prepare any written
information other than:
(1) any report concerning the health, safety, or
welfare of a student;
(2) a report of a student's grade on an assignment or
examination;
(3) a report of a student's academic progress in a
class or course;
(4) a report of a student's grades at the end of each
grade reporting period;
(5) a [textbook] report on instructional materials;
(6) a unit or weekly lesson plan that outlines, in a
brief and general manner, the information to be presented during
each period at the secondary level or in each subject or topic at
the elementary level;
(7) an attendance report;
(8) any report required for accreditation review;
(9) any information required by a school district that
relates to a complaint, grievance, or actual or potential
litigation and that requires the classroom teacher's involvement;
or
(10) any information specifically required by law,
rule, or regulation.
SECTION 2D.10. Section 19.007(e), Education Code, is
amended to read as follows:
(e) The district may participate in the instructional
materials [textbook] program under Chapter 31.
SECTION 2D.11. Sections 26.006(a) and (c), Education Code,
are amended to read as follows:
(a) A parent is entitled to:
(1) review all teaching materials, instructional
materials [textbooks], and other teaching aids used in the
classroom of the parent's child; and
(2) review each test administered to the parent's
child after the test is administered.
(c) A student's parent is entitled to request that the
school district or open-enrollment charter school the student
attends allow the student to take home any instructional materials
[textbook] used by the student. Subject to the availability of the
instructional materials [a textbook], the district or school shall
honor the request. A student who takes home instructional
materials [a textbook] must return the instructional materials
[textbook] to school at the beginning of the next school day if
requested to do so by the student's teacher. In this subsection,
"instructional material" ["textbook"] has the meaning assigned by
Section 31.002.
SECTION 2D.12. Sections 28.002(c) and (h), Education Code,
are amended to read as follows:
(c) The State Board of Education, with the direct
participation of educators, parents, business and industry
representatives, and employers shall by rule identify the essential
knowledge and skills of each subject of the required curriculum
that all students should be able to demonstrate and that will be
used in evaluating instructional materials [textbooks] under
Chapter 31 and addressed on the assessment instruments required
under Subchapter B, Chapter 39. As a condition of accreditation,
the board shall require each district to provide instruction in the
essential knowledge and skills at appropriate grade levels.
(h) The State Board of Education and each school district
shall foster the continuation of the tradition of teaching United
States and Texas history and the free enterprise system in regular
subject matter, [and] in social studies, economics, and reading
courses, and in the adoption of instructional materials
[textbooks]. A primary purpose of the public school curriculum is
to prepare thoughtful, active citizens who understand the
importance of patriotism and can function productively in a free
enterprise society with appreciation for the basic democratic
values of our state and national heritage.
SECTION 2D.13. The heading to Chapter 31, Education Code,
is amended to read as follows:
CHAPTER 31. INSTRUCTIONAL MATERIALS [TEXTBOOKS]
SECTION 2D.14. Section 31.001, Education Code, is amended
to read as follows:
Sec. 31.001. FREE INSTRUCTIONAL MATERIALS [TEXTBOOKS].
Instructional materials [Textbooks] selected for use in the public
schools shall be furnished without cost to the students attending
those schools.
SECTION 2D.15. Section 31.002, Education Code, is amended
to read as follows:
Sec. 31.002. DEFINITIONS. In this chapter:
(1) "Instructional material" ["Electronic textbook"]
means a medium or a combination of media for conveying information
to a student. The term includes a book, supplementary materials, a
combination of a book, workbook, supplementary materials, computer
software, [interactive videodisc,] magnetic media, DVD, CD-ROM,
computer courseware, on-line services, or an electronic medium, or
other means of conveying information to the student or otherwise
contributing to the learning process through electronic means.
(2) "Publisher" means a person who prepares,
manufactures, or distributes instructional materials for sale or
distribution to public schools. The term includes an on-line
service or a developer or distributor of [an] electronic
instructional materials [textbook].
(3) "State-adopted" means adopted by the State Board
of Education under Section 31.024 ["Textbook" means a book, a
system of instructional materials, or a combination of a book and
supplementary instructional materials that conveys information to
the student or otherwise contributes to the learning process, or an
electronic textbook].
(4) "Technological equipment" means hardware, a
device, or equipment necessary for:
(A) instructional use in the classroom,
including to gain access to or enhance the use of [an] electronic
instructional materials [textbook]; or
(B) professional use by a classroom teacher.
SECTION 2D.16. Section 31.003, Education Code, is amended
to read as follows:
Sec. 31.003. RULES. The State Board of Education may adopt
rules, consistent with this chapter, for the adoption, requisition,
distribution, care, use, and disposal of instructional materials
[textbooks].
SECTION 2D.17. Subchapter B, Chapter 31, Education Code, is
amended by amending Sections 31.021-31.024 and 31.026-31.030 and
adding Sections 31.0211, 31.0212, 31.0221, 31.031, and 31.032 to
read as follows:
Sec. 31.021. STATE INSTRUCTIONAL MATERIALS [TEXTBOOK]
FUND. (a) The state instructional materials [textbook] fund
consists of:
(1) an amount set aside by the State Board of Education
from the available school fund, computed in accordance with this
section; and
(2) [all funds accruing from the state's sale of
disused textbooks; and
[(3)] all amounts lawfully paid into the fund from any
other source.
(b) The State Board of Education shall annually set aside
out of the available school fund of the state an amount sufficient
for the instructional materials allotment to provide [board,]
school districts[,] and open-enrollment charter schools with the
funds required to purchase and distribute the necessary
state-adopted instructional materials [textbooks] for the use of
the students of this state for the following school year. The board
shall determine the amount of the available school fund to set aside
for the state instructional materials [textbook] fund based on the
amount of the allotment under Section 31.0211 and on reports of
maximum attendance and anticipated enrollment growth submitted
under Section 31.103.[:
[(1) a report by the commissioner issued on July 1 or,
if that date is a Saturday or Sunday, on the following Monday,
stating the amount of unobligated money in the fund;
[(2) the commissioner's estimate, based on textbooks
selected under Section 31.101 and on attendance reports submitted
under Section 31.103 by school districts and open-enrollment
charter schools, of the amount of funds, in addition to funds
reported under Subdivision (1), that will be necessary for purchase
and distribution of textbooks for the following school year; and
[(3) any amount the board determines should be set
aside for emergency purposes caused by unexpected increases in
attendance.]
(d) Money transferred to the state instructional materials
[textbook] fund remains in the fund until spent and does not lapse
to the state at the end of the fiscal year.
[(e) All necessary expenses incurred under this chapter
shall be paid from the state textbook fund on invoices approved by
the commissioner.]
Sec. 31.0211. INSTRUCTIONAL MATERIALS ALLOTMENT. (a) For
the maximum attendance and anticipated enrollment growth reported
under Section 31.103 in a school year, a school district is entitled
to an annual allotment of $70 for each student or a greater amount
provided by appropriation, to be paid from the state instructional
materials fund. The commissioner may determine for each district
the amount of anticipated enrollment growth for which an allotment
is provided under this subsection.
(b) Funds allotted under this section may be used only to
purchase:
(1) state-adopted instructional materials; or
(2) instructional materials authorized by
commissioner waiver.
(c) This section applies beginning with the 2007-2008
school year. This subsection expires September 1, 2008.
Sec. 31.0212. INSTRUCTIONAL MATERIALS ALLOTMENT FOR
JUVENILE JUSTICE ALTERNATIVE EDUCATION PROGRAMS. (a)
Notwithstanding any other provision of this chapter, a juvenile
justice alternative education program operating under Section
37.011 is entitled to receive an instructional materials allotment
under Section 31.0211 to be used in purchasing state-adopted
instructional materials as if the program were a school district or
open-enrollment charter school.
(b) The State Board of Education, in coordination with the
Texas Juvenile Probation Commission, shall adopt rules as necessary
to administer this section.
(c) Notwithstanding Section 31.0211(c), a juvenile justice
alternative education program operating under Section 37.011 is
entitled to the annual allotment described by Section 31.0211(a)
beginning with the 2005-2006 school year. This subsection expires
September 1, 2008.
Sec. 31.022. INSTRUCTIONAL MATERIALS [TEXTBOOK] REVIEW AND
ADOPTION CYCLE. (a) The State Board of Education shall adopt a
review and adoption cycle for instructional materials [textbooks]
for elementary grade levels, including prekindergarten, and
secondary grade levels, for each subject in the required curriculum
under Section 28.002.
(b) The board shall organize the cycle for subjects in the
foundation curriculum so that not more than one-sixth of the
instructional materials [textbooks] for subjects in the foundation
curriculum are reviewed each year. The board shall adopt rules to
provide for a full and complete investigation of instructional
materials [textbooks] for each subject in the foundation curriculum
at least every six years. The adoption of instructional materials
[textbooks] for a subject in the foundation curriculum may be
extended beyond the six-year period only if the content of
instructional materials [textbooks] for a subject is sufficiently
current.
(c) The board shall adopt rules to provide for a full and
complete investigation of instructional materials [textbooks] for
each subject in the enrichment curriculum on a cycle the board
considers appropriate, but not less than every eight years.
(d) At least 24 months before the beginning of the school
year for which instructional materials [textbooks] for a particular
subject and grade level will be purchased under the review and
adoption cycle adopted by the board, the board shall publish notice
of the review and adoption cycle for those instructional materials
[textbooks].
(e) In organizing the cycle for review and adoption of
instructional materials, the board shall:
(1) generally align the cycle with the schedule for
any revision of the essential knowledge and skills under Section
28.002 of the subjects and grade levels addressed by the
instructional materials;
(2) seek advice from the Legislative Budget Board and
the governor's office of budget, planning, and policy before
approving and publishing any notice or amendment of the cycle;
(3) review and consider expected average costs of the
instructional materials that will be adopted and the amount of the
instructional materials allotment to ensure that the amount of the
instructional materials that will be adopted over a two-year period
may be purchased within the amount of the instructional material
allotment for that same period; and
(4) follow any directive provided in the General
Appropriations Act regarding the organization of the cycle.
(f) In addition to organizing a review and adoption cycle,
the board by rule shall allow an instructional material to be
submitted, reviewed, and adopted at a time when the subject or grade
level is not scheduled in the cycle to be considered for at least
two years, in conformance with the procedures for adoption of other
state-adopted instructional materials. The board shall place each
instructional material submitted under this subsection and adopted
under Section 31.024 on an applicable list under Section 31.023.
Sec. 31.0221. CORRECTION OF FACTUAL ERRORS. (a) To promote
efficiency in the correction of factual errors during the
instructional materials review and adoption process, the State
Board of Education shall:
(1) to the extent practicable, conduct the review of
instructional materials using page proofs or other appropriate
draft versions of the instructional materials; and
(2) require the publisher to provide instructional
materials, including page proofs, draft versions, or sample
instructional materials, directly to state instructional materials
review panel members in a timely manner before the members meet to
conduct a complete and formal review of the materials.
(b) During the instructional materials review and adoption
process, the publisher of instructional materials proposed for
adoption in this state shall promptly correct any factual errors
discovered in the instructional materials. For purposes of this
section, a factual error includes an objectively verifiable
mistake, including an incorrect reference to a date, place, or
person, an incorrect computational process or result, or similar
incorrect provisions. A factual error does not include a
difference in professional opinion, conclusion, emphasis, or
perspective expressed in instructional materials.
(c) If the State Board of Education believes that the
content of an instructional material is factually inaccurate
because the content is incomplete or expresses only one viewpoint
or opinion that is not widely accepted in the academic community,
the State Board of Education shall appoint a panel of experts and
scholars to determine whether the material is factually inaccurate.
(d) The board shall adopt rules authorizing the imposition
of an administrative penalty in the manner provided by Section
31.151 against a publisher who knowingly violates Subsection (b).
In setting the amount of any penalty to be imposed under this
subsection, the board shall consider the stage of the instructional
materials review and adoption process at which the violation occurs
and set progressively higher penalties for violations that occur
later in the process.
Sec. 31.023. [TEXTBOOK] LISTS OF STATE-ADOPTED
INSTRUCTIONAL MATERIALS. (a) For each subject and grade level,
the State Board of Education shall adopt two lists of instructional
materials [textbooks]. The conforming list includes each
state-adopted instructional material [textbook] submitted for the
subject and grade level that meets applicable physical
specifications adopted by the State Board of Education and contains
material covering each element of the essential knowledge and
skills of the subject and grade level as determined by the State
Board of Education under Section 28.002 and adopted under Section
31.024. The nonconforming list includes each state-adopted
instructional material [textbook] submitted for the subject and
grade level that:
(1) meets applicable physical specifications adopted
by the State Board of Education;
(2) contains material covering at least half, but not
all, of the elements of the essential knowledge and skills of the
subject and grade level; and
(3) is adopted under Section 31.024.
(b) Each state-adopted instructional material [textbook] on
a conforming or nonconforming list must be free from factual
errors.
Sec. 31.024. ADOPTION BY STATE BOARD OF EDUCATION. (a) By
majority vote, the State Board of Education shall:
(1) place each submitted instructional material
[textbook] on a conforming or nonconforming list; or
(2) reject an instructional material [a textbook]
submitted for placement on a conforming or nonconforming list.
(b) Not later than December 1 of the year preceding the
school year for which the state-adopted instructional materials
[textbooks] for a particular subject and grade level will be
purchased under the cycle adopted by the board under Section
31.022, the board shall make available [provide] the lists of
state-adopted instructional materials, including instructional
materials under Section 31.022(f) [adopted textbooks] to each
school district. Each nonconforming list must include:
(1) the reasons an adopted instructional material
[textbook] is not eligible for the conforming list; and
(2) a list of the essential knowledge and skills
contained in an adopted instructional material on the nonconforming
list.
Sec. 31.026. CONTRACT; PRICE. (a) The commissioner, with
the assistance of the Department of Information Resources, the
State Board of Education, and the office of the attorney general,
shall develop model contracts that may be used by school districts
and open-enrollment charter schools [State Board of Education shall
execute a contract:
[(1)] for the purchase or licensing of instructional
materials under this chapter [each adopted textbook other than an
electronic textbook; and
[(2) for the purchase or licensing of each adopted
electronic textbook].
(b) A contract must require the publisher to provide all of
the instructional materials [the number of textbooks] required by
school districts in this state for the term of the contract[, which
must coincide with the board's adoption cycle].
(c) As applicable, a contract must provide for the purchase
or licensing of instructional materials [a textbook] at a specific
price, which may not exceed the lowest price paid by any other state
or any school or school district. The price must be fixed for the
term of the contract. The price may decrease if the lowest price
paid by another state or another school or school district
decreases during the term of the contract.
Sec. 31.027. INFORMATION TO SCHOOL DISTRICTS; SAMPLE
COPIES. (a) A publisher shall provide each school district and
open-enrollment charter school with information that fully
describes each of the publisher's state-adopted instructional
materials [adopted textbooks]. On request of a school district, a
publisher shall provide a sample copy of a state-adopted
instructional material [an adopted textbook].
(b) A publisher shall provide at least two sample copies of
each state-adopted instructional material [adopted textbook] to be
maintained for at least two years at each regional education
service center or an alternate location designated by the
applicable service center.
Sec. 31.028. SPECIAL INSTRUCTIONAL MATERIALS [TEXTBOOKS].
(a) The State Board of Education may make available [purchase]
special instructional materials [textbooks] for the education of
blind and visually impaired students in public schools. In
addition, from funds appropriated for the purpose, for a teacher
who is blind or visually impaired, the board shall provide a
teacher's edition in Braille or large type, as requested by the
teacher, for each printed state-adopted instructional material
[textbook] the teacher uses in the instruction of students. The
teacher edition must be available at the same time the student
instructional materials [textbooks] become available.
(b) The publisher of a printed state-adopted instructional
material [an adopted textbook] shall provide the agency with
computerized [textbook] files for the production of Braille
instructional materials [textbooks] or other versions of
instructional materials [textbooks] to be used by students with
disabilities, on request of the State Board of Education. A
publisher shall arrange the computerized [textbook] files in one of
several optional formats specified by the State Board of Education.
(c) The board may also enter into agreements providing for
the acceptance, requisition, and distribution of special
instructional materials [textbooks and instructional aids]
pursuant to 20 U.S.C. Section 101 et seq. for use by students
enrolled in:
(1) public schools; or
(2) private nonprofit schools, if state funds, other
than for administrative costs, are not involved.
(c-1) The board shall require electronic instructional
materials included on the conforming list and nonconforming list
under Section 31.023 to comply with the standards established under
Section 508, Rehabilitation Act of 1973 (29 U.S.C. Section 794d),
if the materials are for use by students enrolled in:
(1) public schools; or
(2) private nonprofit schools, if state funds, other
than for administrative costs, are not involved.
(d) In this section:
(1) "Blind or visually impaired student" includes any
student whose visual acuity is impaired to the extent that the
student is unable to read the text [print] in state-adopted
instructional materials [a regularly adopted textbook] used in the
student's class.
(2) "Special instructional materials" [textbook"]
means instructional materials [a textbook] in Braille, large type,
audiotape, accessible web page, accessible DVD/CD-ROM, or any other
medium or any apparatus that conveys information to a student or
otherwise contributes to the learning process.
Sec. 31.029. BILINGUAL INSTRUCTIONAL MATERIALS
[TEXTBOOKS]. The board shall adopt instructional materials
[purchase or otherwise acquire textbooks] for use in bilingual
education classes.
Sec. 31.030. USED INSTRUCTIONAL MATERIALS [TEXTBOOKS]. The
State Board of Education shall adopt rules to ensure that used
instructional materials [textbooks] sold to school districts and
open-enrollment charter schools are not sample copies that contain
factual errors. The rules may provide for the imposition of an
administrative penalty in accordance with Section 31.151 against a
seller of used instructional materials [textbooks] who knowingly
violates this section.
Sec. 31.031. SUBSCRIPTION-BASED ELECTRONIC INSTRUCTIONAL
MATERIALS. The publisher of a state-adopted electronic
instructional material may offer the material to school districts
and open-enrollment charter schools on a subscription basis.
Sec. 31.032. UPDATES. The publisher of a state-adopted
instructional material may update the instructional material, and a
school district or open-enrollment charter school may purchase the
update. The State Board of Education by rule shall provide for an
expedited review process to determine the extent to which updated
instructional material aligns with the essential knowledge and
skills and does not contain factual errors.
SECTION 2D.18. Section 31.101, Education Code, is amended
to read as follows:
Sec. 31.101. SELECTION AND PURCHASE OF INSTRUCTIONAL
MATERIALS [TEXTBOOKS] BY SCHOOL DISTRICTS. (a) Each year, during
any [a] period established by the State Board of Education, the
board of trustees of each school district and the governing body of
each open-enrollment charter school shall:
(1) [for a subject in the foundation curriculum,]
notify the State Board of Education of the state-adopted
instructional materials [textbooks] selected by the board of
trustees or governing body for the following school year from among
the instructional materials [textbooks] on the appropriate
conforming or nonconforming list; and [or]
(2) provide an accounting of the expenditure of its
instructional materials allotment during that period. [for a
subject in the enrichment curriculum:
[(A) notify the State Board of Education of each
textbook selected by the board of trustees or governing body for the
following school year from among the textbooks on the appropriate
conforming or nonconforming list; or
[(B) notify the State Board of Education that the
board of trustees or governing body has selected a textbook that is
not on the conforming or nonconforming list.]
(b) The board of trustees of each [If a] school district or
the governing body of each open-enrollment charter school shall use
the instructional materials allotment to purchase instructional
materials selected by the board of trustees or the governing body
[selects a textbook] for a [particular] subject in the required
[enrichment] curriculum. [and grade level that is not on the
conforming or nonconforming list, the state shall pay to the
district or school an amount equal to the lesser of:
[(1) 70 percent of the cost to the district of the
textbook, multiplied by the number of textbooks the district or
school needs for that subject and grade level; or
[(2) 70 percent of the limitation established under
Section 31.025 for a textbook for that subject and grade level,
multiplied by the number of textbooks the district or school needs
for that subject and grade level.]
(c) A school district or open-enrollment charter school may
purchase an instructional material under Subsection (b) only if the
instructional material is purchased not later than the beginning of
the second school year that begins after the adoption of the
conforming or nonconforming list that includes the instructional
material. This subsection does not apply to:
(1) instructional materials under Section 31.022(f);
(2) the purchase of replacement instructional
materials due to loss or damage; or
(3) the purchase of additional instructional
materials needed because of enrollment growth [that selects a
textbook that is not on the conforming or nonconforming list:
[(1) is responsible for the portion of the cost of the
textbook that is not paid by the state under Subsection (b); and
[(2) may use funds received from the state under
Subsection (b) only for purchasing the textbook for which the funds
were received].
[(d) For a textbook that is not on the conforming or
nonconforming list, a school district or open-enrollment charter
school must use the textbook for the period of the review and
adoption cycle the State Board of Education has established for the
subject and grade level for which the textbook is used.]
SECTION 2D.19. Section 31.102, Education Code, is amended
to read as follows:
Sec. 31.102. TITLE AND CUSTODY. (a) Except as provided by
this subsection, each instructional material [Each textbook]
purchased by the state as provided by this chapter is the property
of this state. Beginning with the 2007-2008 school year, each
instructional material purchased through the instructional
materials allotment by a school district or open-enrollment charter
school is the property of the district or charter school.
(b) Subsection (a) applies to an electronic instructional
material [textbook] only to the extent of any applicable licensing
agreement.
(c) The board of trustees of a school district or the
governing body of an open-enrollment charter school is the legal
custodian of instructional materials [textbooks] purchased as
provided by this chapter for or by the district or school. The
board of trustees or governing body shall distribute instructional
materials [textbooks] to students in the manner that the board or
governing body determines is most effective and economical.
(d) An open-enrollment charter school may not transfer
instructional materials unless the transfer is approved by the
commissioner. The commissioner may not approve such a transfer
unless the transfer is to another public school of this state.
SECTION 2D.20. Section 31.103, Education Code, is amended
to read as follows:
Sec. 31.103. INSTRUCTIONAL MATERIALS [TEXTBOOK]
REQUISITIONS. (a) Not later than the seventh day after the first
school day in April, each principal shall report the maximum
attendance for the school to the superintendent. Not later than
April 25, the superintendent of a school district or the chief
operating officer of an open-enrollment charter school shall report
to the commissioner the district's or school's maximum attendance
and anticipated enrollment growth [to the commissioner].
(b) [A requisition for textbooks for the following school
year shall be based on the maximum attendance reports under
Subsection (a), plus an additional 10 percent, except as otherwise
provided.] A school district or open-enrollment charter school
shall make a requisition for instructional materials [a textbook]
on the conforming or nonconforming list [through the commissioner]
to the instructional materials [state] depository designated by the
publisher or as provided by State Board of Education rule, as
applicable, not later than June 1 of each year. The designated
instructional materials [state] depository or, if the publisher [or
manufacturer] does not have a designated instructional materials
[textbook] depository in this state under Section 31.151(a)(6)(B),
the publisher [or manufacturer] shall fill a requisition approved
by the agency at any other time in the case of an emergency. [As
made necessary by available funds, the commissioner shall reduce
the additional percentage of attendance for which a district or
school may requisition textbooks. The commissioner may, on
application of a district or school that is experiencing high
enrollment growth, increase the additional percentage of
attendance for which the district or school may requisition
textbooks.]
(c) In making a requisition under this section, a school
district or open-enrollment charter school may requisition
instructional materials [textbooks] on the conforming or
nonconforming list for grades above or below the grade level in
which a student is enrolled[, except that the total quantity of
textbooks requisitioned under this section may not exceed the limit
prescribed by Subsection (b)].
SECTION 2D.21. Sections 31.104-31.106, Education Code, are
amended to read as follows:
Sec. 31.104. DISTRIBUTION AND HANDLING. (a) The board of
trustees of a school district or the governing body of an
open-enrollment charter school may delegate to an employee the
authority to requisition, purchase, distribute, and manage the
inventory of instructional materials [textbooks] in a manner
consistent with this chapter and rules adopted under this chapter.
(b) A school district or open-enrollment charter school may
order replacements for instructional materials [textbooks] that
have been lost or damaged directly from:
(1) the instructional materials [textbook]
depository; or
(2) the [textbook] publisher of the instructional
materials [or manufacturer] if the [textbook] publisher [or
manufacturer] does not have a designated instructional materials
[textbook] depository in this state under Section 31.151(a)(6)(B).
(c) Each instructional material [textbook] must state that
the instructional material [textbook] is the property of or is
licensed to this state, school district, or charter school, as
appropriate. Each instructional material [textbook], other than an
electronic instructional material [textbook], must be covered by
the student under the direction of the teacher. A student must
return all instructional materials [textbooks] to the teacher at
the end of the school year or when the student withdraws from
school.
(d) Each student, or the student's parent or guardian, is
responsible for each instructional material [textbook] not
returned by the student. A student who fails to return all
instructional materials [textbooks] forfeits the right to free
instructional materials [textbooks] until each instructional
material [textbook] previously issued but not returned is paid for
by the student, parent, or guardian. As provided by policy of the
board of trustees or governing body, a school district or
open-enrollment charter school may waive or reduce the payment
requirement if the student is from a low-income family. The
district or school shall allow the student to use instructional
materials [textbooks] at school during each school day. If an
instructional material [a textbook] is not returned or paid for,
the district or school may withhold the student's records. A
district or school may not, under this subsection, prevent a
student from graduating, participating in a graduation ceremony, or
receiving a diploma.
(e) The board of trustees of a school district may not
require an employee of the district to pay for an instructional
material [a textbook] or instructional technology that is stolen,
misplaced, or not returned by a student.
Sec. 31.105. SALE OF INSTRUCTIONAL MATERIALS [TEXTBOOKS].
The board of trustees of a school district or governing body of an
open-enrollment charter school may sell instructional materials
[textbooks], other than electronic instructional materials
[textbooks], to a student or another school [at the state contract
price]. The district shall use [send] money received from the sale
of instructional materials in accordance with uses prescribed by
Section 31.0211. [textbooks to the commissioner as required by the
commissioner. The commissioner shall deposit the money in the
state textbook fund.]
Sec. 31.106. USE OF LOCAL FUNDS. In addition to any
instructional materials [textbook] selected under this chapter, a
school district or open-enrollment charter school may use local
funds to purchase any instructional materials [textbooks].
SECTION 2D.22. The heading to Section 31.151, Education
Code, is amended to read as follows:
Sec. 31.151. DUTIES OF PUBLISHERS [AND MANUFACTURERS].
SECTION 2D.23. Sections 31.151(a), (b), and (d), Education
Code, are amended to read as follows:
(a) A publisher [or manufacturer] of instructional
materials [textbooks]:
(1) shall furnish any instructional material
[textbook] the publisher [or manufacturer] offers in this state[,]
at a price that does not exceed the lowest price at which the
publisher offers that instructional material [textbook] for
adoption or sale to any state, public school, or school district in
the United States;
(2) shall automatically reduce the price of an
instructional material [a textbook] sold for use in a school
district or open-enrollment charter school to the extent that the
price is reduced elsewhere in the United States;
(3) shall provide any instructional material
[textbook] or ancillary item free of charge in this state to the
same extent that the publisher [or manufacturer] provides the
instructional material [textbook] or ancillary item free of charge
to any state, public school, or school district in the United
States;
(4) shall guarantee that each copy of an instructional
material [a textbook] sold in this state is at least equal in
quality to copies of that instructional material [textbook] sold
elsewhere in the United States and is free from factual error;
(5) may not become associated or connected with,
directly or indirectly, any combination in restraint of trade in
instructional materials [textbooks] or enter into any
understanding or combination to control prices or restrict
competition in the sale of instructional materials [textbooks] for
use in this state;
(6) shall:
(A) maintain a depository in this state or
arrange with a depository in this state to receive and fill orders
for instructional materials [textbooks], other than electronic
instructional materials or electronic instructional material
[on-line textbooks or on-line textbook] components, consistent
with State Board of Education rules; or
(B) deliver instructional materials [textbooks]
to a school district or open-enrollment charter school without a
delivery charge to the school district, open-enrollment charter
school, or state, if:
(i) the publisher [or manufacturer] does
not maintain or arrange with a depository in this state under
Paragraph (A) and the publisher's instructional materials [or
manufacturer's textbooks] and related products are warehoused or
otherwise stored less than 300 miles from a border of this state; or
(ii) the instructional materials
[textbooks] are electronic instructional materials or electronic
instructional material [on-line textbooks or on-line textbook]
components;
(7) shall, at the time an order for instructional
materials [textbooks] is acknowledged, provide to school districts
or open-enrollment charter schools an accurate shipping date for
instructional materials [textbooks] that are back-ordered;
(8) shall guarantee delivery of instructional
materials [textbooks] at least 10 business days before the opening
day of school of the year for which the instructional materials
[textbooks] are ordered if the instructional materials [textbooks]
are ordered by a date specified in the sales contract; and
(9) shall submit to the State Board of Education an
affidavit certifying any instructional material [textbook] the
publisher [or manufacturer] offers in this state to be free of
factual errors at the time the publisher executes the contract
required by Section 31.026.
(b) The State Board of Education may impose a reasonable
administrative penalty against a publisher [or manufacturer] who
knowingly violates Subsection (a). The board shall provide for a
hearing to be held to determine whether a penalty is to be imposed
and, if so, the amount of the penalty. The board shall base the
amount of the penalty on:
(1) the seriousness of the violation;
(2) any history of a previous violation;
(3) the amount necessary to deter a future violation;
(4) any effort to correct the violation; and
(5) any other matter justice requires.
(d) A penalty collected under this section shall be
deposited to the credit of the state instructional materials
[textbook] fund.
SECTION 2D.24. The heading to Section 31.152, Education
Code, is amended to read as follows:
Sec. 31.152. ACCEPTING REBATE ON INSTRUCTIONAL MATERIALS
[TEXTBOOKS].
SECTION 2D.25. Sections 31.152(a), (b), and (d), Education
Code, are amended to read as follows:
(a) A school trustee, administrator, or teacher commits an
offense if that person receives any commission or rebate on any
instructional materials [textbooks] used in the schools with which
the person is associated as a trustee, administrator, or teacher.
(b) A school trustee, administrator, or teacher commits an
offense if the person accepts a gift, favor, or service that:
(1) is given to the person or the person's school;
(2) might reasonably tend to influence a trustee,
administrator, or teacher in the selection of instructional
materials [a textbook]; and
(3) could not be lawfully purchased with funds from
the state instructional materials [textbook] fund.
(d) In this section, "gift, favor, or service" does not
include:
(1) staff development, in-service, or teacher
training; or
(2) instructional materials[,] such as maps or
worksheets[, that convey information to the student or otherwise
contribute to the learning process].
SECTION 2D.26. The heading to Section 31.153, Education
Code, is amended to read as follows:
Sec. 31.153. VIOLATION OF FREE INSTRUCTIONAL MATERIALS
[TEXTBOOK] LAW.
SECTION 2D.27. Section 31.153(a), Education Code, is
amended to read as follows:
(a) A person commits an offense if the person knowingly
violates any law providing for the purchase or distribution of free
instructional materials [textbooks] for the public schools.
SECTION 2D.28. Subchapter E, Chapter 31, Education Code, is
amended to read as follows:
SUBCHAPTER E. DISPOSITION OF INSTRUCTIONAL MATERIALS [TEXTBOOKS]
Sec. 31.201. DISPOSITION OF INSTRUCTIONAL MATERIALS
[TEXTBOOKS]. (a) The commissioner, with the approval of the State
Board of Education, may provide for the disposition of:
(1) instructional materials [textbooks], other than
electronic instructional materials [textbooks], that are no longer
in acceptable condition to be used for instructional purposes; or
(2) discontinued instructional materials [textbooks],
other than electronic instructional materials [textbooks].
(b) The commissioner, as provided by rules adopted by the
State Board of Education, shall make available on request copies of
discontinued instructional materials [textbooks], other than
electronic instructional materials [textbooks], for use in
libraries maintained in municipal and county jails and facilities
of the institutional division of the Texas Department of Criminal
Justice and other state agencies.
(c) The State Board of Education shall adopt rules under
which a school district or open-enrollment charter school may
donate discontinued instructional materials [textbooks], other
than electronic instructional materials [textbooks], to a student,
to an adult education program, or to a nonprofit organization.
SECTION 2D.29. The heading to Section 32.005, Education
Code, is amended to read as follows:
Sec. 32.005. INSTRUCTIONAL MATERIALS AND TECHNOLOGY
ALLOTMENT.
SECTION 2D.30. Sections 32.005(a) and (b), Education Code,
are amended to read as follows:
(a) For each student in average daily attendance in a school
year, a [Each] school district or open-enrollment charter school is
entitled to an allotment of $30 [for each student in average daily
attendance] or a greater [different] amount for any year provided
by appropriation, to be used as provided by Subsection (b).
(b) An allotment under this section may be used [only] to:
(1) provide for the purchase by school districts of
systems or components of:
(A) wireless electronic mobile computing devices
or other technology devices that convey instruction;
(B) productivity hardware or software, including
writing, computation, presentation, and communication tools;
(C) electronic learning software aligned with
the essential skills and knowledge adopted by the State Board of
Education under Section 28.002;
(D) library and other research tools;
(E) electronic assessment tools;
(F) electronic learning tools to improve
communications among students, teachers, school administrators,
parents, and the community;
(G) classroom and school management systems; and
(H) portable electronic instructional material
devices capable of supporting instructional material for each
subject in the foundation and enrichment curriculum [electronic
textbooks or technological equipment that contributes to student
learning]; [and]
(2) provide professional development for educational
personnel responsible for direct instruction to integrate the tools
and solutions described by Subdivision (1); and
(3) acquire additional infrastructure and
technologies necessary to support and enhance the tools and
solutions described by Subdivision (1) [pay for training
educational personnel directly involved in student learning in the
appropriate use of electronic textbooks and for providing for
access to technological equipment for instructional use].
SECTION 2D.31. Section 32.156, Education Code, as added by
Chapter 1216, Acts of the 78th Legislature, Regular Session, 2003,
is amended to read as follows:
Sec. 32.156. ON-LINE INSTRUCTIONAL MATERIALS [TEXTBOOKS].
(a) The agency may develop and adopt strategies for making
instructional materials [textbooks] available through the portal
or through other means in an electronic format as an alternative or
supplement to traditional instructional materials [textbooks].
(b) In developing and adopting strategies under this
section, the agency shall seek to achieve a system under which a
student may, in addition to [a] traditional instructional materials
[textbook], be provided with secure Internet access to each
instructional material [textbook] used by the student.
SECTION 2D.32. Section 32.161(b), Education Code, is
amended to read as follows:
(b) To the extent possible considering other statutory
requirements, the commissioner and agency shall encourage the use
of instructional materials [textbook] funds under Section 31.021
and technology allotment funds under Section 32.005 [31.021(b)(2)]
in a manner that facilitates the development and use of the portal.
SECTION 2D.33. Section 31.0221, Education Code, as added by
this part, applies only to instructional materials submitted for
review by the State Board of Education on or after the effective
date of this Act. Instructional materials submitted for review
before the effective date of this Act are governed by the law in
effect when the instructional materials were submitted for review,
and the former law is continued in effect for that purpose.
SECTION 2D.34. (a) This section applies to a contract
entered into by the State Board of Education before January 1, 2005,
for the purchase of an adopted instructional material, as that term
is defined by Section 31.002, Education Code, as amended by this
part, or the purchase or licensing of an electronic instructional
material.
(b) A contract described by Subsection (a) of this section
continues in effect as a state contract for the remainder of the
contract term, and the former law is continued in effect for that
purpose.
PART E. DUAL LANGUAGE EDUCATION
SECTION 2E.01. Subchapter B, Chapter 21, Education Code, is
amended by adding Sections 21.0485 and 21.0486 to read as follows:
Sec. 21.0485. DUAL LANGUAGE EDUCATION TEACHER
CERTIFICATION. (a) To ensure that there are teachers with special
training to work with other teachers and with students in a dual
language education program, the board shall establish a dual
language education teaching certificate.
(b) The board shall propose rules establishing the training
requirements, including the minimum academic qualifications, a
person must accomplish to obtain a certificate under this section.
(c) The board shall propose rules establishing the
requirements for a teacher who receives training in a foreign
country to obtain a certificate under this section.
Sec. 21.0486. MASTER LANGUAGE TEACHER CERTIFICATION.
(a) To ensure that there are teachers with special training to
work with other teachers and with students in order to improve
student performance in English and other languages, the board shall
establish:
(1) a master language teacher certificate to teach
bilingual education, dual language instruction, or English as a
second language at elementary school grade levels;
(2) a master language teacher certificate to teach
bilingual education, dual language instruction, or English as a
second language at middle school grade levels; and
(3) a master language teacher certificate to teach
dual language instruction at high school grade levels.
(b) The board shall issue the appropriate master language
teacher certificate to each eligible person.
(c) To be eligible for a master language teacher
certificate, a person must:
(1) hold a teaching certificate issued under this
subchapter;
(2) have at least three years of experience teaching
bilingual education, dual language instruction, or English as a
second language;
(3) satisfactorily complete a knowledge-based course
of instruction on second language acquisition and the science of
teaching children language that includes training in language
instruction and professional peer mentoring techniques that,
through scientific testing, have been proven effective;
(4) perform satisfactorily on the appropriate master
language certification examination prescribed by the board; and
(5) satisfy any other requirements prescribed by the
board.
SECTION 2E.02. Section 21.050(b), Education Code, is
amended to read as follows:
(b) The board may not require more than 18 semester credit
hours of education courses at the baccalaureate level for the
granting of a teaching certificate. The board shall provide for a
minimum number of semester credit hours of internship to be
included in the hours needed for certification. The board may
propose rules requiring additional credit hours for certification
in bilingual education, dual language instruction, English as a
second language, early childhood education, or special education.
SECTION 2E.03. Section 21.054, Education Code, is amended
by adding Subsection (c) to read as follows:
(c) Rules proposed under Subsection (a) must permit an
educator to fulfill continuing education requirements by acquiring
conversational skills in one or more languages other than English
and academic language development in the subject area for which the
educator provides instruction. The rules must permit educators to
obtain language instruction through a variety of methods, including
attendance at workshops offered by qualified entities and
enrollment on a noncredit basis in courses offered by public or
private colleges and universities.
SECTION 2E.04. Subchapter B, Chapter 21, Education Code, is
amended by adding Section 21.060 to read as follows:
Sec. 21.060. NOTICE OF EDUCATIONAL AIDE TUITION EXEMPTION.
On issuing an educator certificate to an educational aide or
renewing such a certificate, the board shall notify the person to
whom the certificate is issued of the existence of the educational
aide exemption under Section 54.214.
SECTION 2E.05. Section 28.0051, Education Code, is amended
by adding Subsection (d) to read as follows:
(d) The State Board for Educator Certification shall
provide for the issuance of teaching certificates appropriate for
dual language instruction to teachers who:
(1) possess a speaking, reading, and writing language
ability in a language other than English in which a dual language
immersion program is offered; and
(2) meet the general requirements of Subchapter B,
Chapter 21.
SECTION 2E.06. Subchapter A, Chapter 28, Education Code, is
amended by adding Section 28.0052 to read as follows:
Sec. 28.0052. DUAL LANGUAGE EDUCATION PILOT PROJECT. (a)
The commissioner shall establish a pilot project in school
districts selected by the commissioner under which the agency
examines dual language education programs and the effect of those
programs on a student's ability to graduate from high school.
(b) In selecting school districts under Subsection (a), the
commissioner shall:
(1) select districts that:
(A) will commit to a three-year dual language
education program; and
(B) demonstrate a substantially equal enrollment
of students with limited English proficiency and students whose
primary language is English or, if a district does not have a
sufficient number of limited English proficiency students to meet
the equal enrollment standard, include the enrollment of students
with limited English proficiency, students whose primary language
is English, and bilingual students; and
(2) give preference to a district that:
(A) demonstrates the potential for expanding the
program through middle school; and
(B) will implement the program at the
kindergarten level.
(c) The commissioner by rule shall require a district to
limit activities of the dual language education program during the
first year of the program to planning activities, including:
(1) hiring, training, and certifying teachers;
(2) establishing parental and community support for
the program; and
(3) acquiring adequate learning materials in both
program languages.
(d) From amounts appropriated for the purpose, the
commissioner shall award grants to school districts that
participate in the program. A grant under this section must be in
an amount sufficient to pay the costs to the district of
participating in the program, as determined by the commissioner. A
determination of the commissioner under this subsection is final
and may not be appealed.
(e) A school district that applies for the expansion of an
existing dual language education program is eligible for a grant
under Subsection (d).
(f) A school district may use a grant awarded under
Subsection (d) for:
(1) classroom materials;
(2) tuition and textbook expenses for students seeking
teacher certification under Section 21.0485; and
(3) other necessary costs of operating the program, as
approved by the commissioner.
(g) The agency shall report to the legislature describing
the agency's activities under the pilot project, the effect of the
project on grade-level completion, and the recommendations arising
from the project. The agency shall submit an interim report under
this subsection not later than January 1, 2009, and a final report
not later than January 1, 2011.
(h) This section expires August 1, 2011.
SECTION 2E.07. Not later than January 1, 2006, the State
Board for Educator Certification shall propose rules:
(1) establishing requirements and prescribing an
examination for master language teacher certification as required
by Section 21.0486, Education Code, as added by this Act;
(2) establishing requirements and prescribing an
examination for dual language instruction teacher certification as
required by Section 21.050(b), Education Code, as amended by this
Act, and Section 28.0051(d), Education Code, as added by this Act;
and
(3) permitting an educator to fulfill continuing
education requirements by acquiring conversational skill in a
language other than English as required by Section 21.054(c),
Education Code, as added by this Act.
PART F. STATE GOVERNANCE
SECTION 2F.01. Subchapter B, Chapter 7, Education Code, is
amended by adding Section 7.0211 to read as follows:
Sec. 7.0211. GIFTS, GRANTS, OR DONATIONS. The agency may
receive gifts, grants, or donations from any public or private
source to perform any educational function the agency is authorized
to perform by law.
SECTION 2F.02. Section 61.076, Education Code, is amended
by adding Subsections (c) and (d) to read as follows:
(c) On or before January 1, 2007, the P-16 council shall:
(1) review existing school district programs that
provide high school students with the opportunity to enroll in
advanced academic courses offered through dual credit and
concurrent enrollment programs, including reviewing courses
currently approved by districts and offered by institutions of
higher education for dual and concurrent enrollment credit;
(2) review the high school curriculum required for the
recommended high school program under Section 28.025 and study the
feasibility of offering a revised curriculum that would provide
graduating high school students with at least 12 hours of advanced
academic courses or college level coursework offered through dual
credit and concurrent enrollment programs provided under
agreements between high schools and institutions of higher
education; and
(3) prepare and deliver a report based on the review
and study to the governor, the lieutenant governor, the speaker of
the house of representatives, and the presiding officer of the
standing committee of each house of the legislature with primary
jurisdiction over public education.
(d) Subsection (c) and this subsection expire January 2,
2007.
PART G. SCHOOL DISCIPLINE
SECTION 2G.01. Chapter 26, Education Code, is amended by
adding Section 26.0083 to read as follows:
Sec. 26.0083. RIGHT TO PROMPT NOTICE OF DISCIPLINARY
ACTION. (a) A parent is entitled to notice from a school district
or open-enrollment charter school as provided by this section if
the parent's child is removed from class under Section 37.006 for
placement in a disciplinary alternative education program or under
Section 37.007 for expulsion or placement in a juvenile justice
alternative education program. A school district or
open-enrollment charter school shall make a good faith effort to
provide the notice required by this subsection on the same day the
parent's child is removed from class. If the district or school
fails to provide the notice on that day, the district or school
shall provide or mail the notice not later than 5 p.m. on the first
business day after the day the student is removed from class.
(b) A noncustodial parent who has requested notice of
disciplinary actions as provided by Section 37.0091 is entitled to
notice under Subsection (a).
SECTION 2G.02. Section 37.008, Education Code, is amended
by amending Subsections (m) and (m-1) and adding Subsection (n) to
read as follows:
(m) Notwithstanding Section 7.027, as added by Chapter 201,
Acts of the 78th Legislature, Regular Session, 2003, the [The]
commissioner shall adopt rules necessary to evaluate through an
annual monitoring process [annually] the performance of each
district's disciplinary alternative education program established
under this subchapter. The monitoring process [evaluation]
required by this section may be electronic and shall be based on
indicators defined by the commissioner, but must include student
performance on assessment instruments required under Section
[Sections] 39.023(a) and at least one indicator that measures
student academic progress [and (c)]. Academically, the mission of
disciplinary alternative education programs shall be to enable
students to perform at grade level.
(m-1) The agency shall integrate the monitoring process
developed under Subsection (m) with the monitoring the agency is
authorized to conduct under Section 7.027(a), as added by Chapter
201, Acts of the 78th Legislature, Regular Session, 2003. The
commissioner may require [shall develop a process for evaluating] a
school district to contract at the district's expense in the manner
provided by Section 39.134 with a public or private service
provider for services determined by the commissioner to be
necessary to:
(1) improve student performance;
(2) improve disciplinary alternative education
program effectiveness; and
(3) [electronically. The commissioner shall also
develop a system and standards for review of the evaluation or use
systems already available at the agency. The system must be
designed to identify districts that are at high risk of having
inaccurate disciplinary alternative education program data or of
failing to] comply with disciplinary alternative education program
state and federal requirements.
(n) [The commissioner shall notify the board of trustees of
a district of any objection the commissioner has to the district's
disciplinary alternative education program data or of a violation
of a law or rule revealed by the data, including any violation of
disciplinary alternative education program requirements, or of 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 disciplinary alternative education
program data.
SECTION 2G.03. Sections 37.020(b) and (c), Education Code,
are amended to read as follows:
(b) For each placement in a disciplinary alternative
education program established under Section 37.008, the district
shall report:
(1) information identifying the student, including
the student's race, sex, and date of birth, that will enable the
agency to compare placement data with information collected through
other reports;
(2) information indicating whether the student was
enrolled in a special education program under Subchapter A, Chapter
29, at the time of the placement;
(3) information indicating whether the placement was
based on:
(A) conduct violating the student code of conduct
adopted under Section 37.001;
(B) conduct for which a student may be removed
from class under Section 37.002(b);
(C) conduct for which placement in a disciplinary
alternative education program is required by Section 37.006; or
(D) conduct occurring while a student was
enrolled in another district and for which placement in a
disciplinary alternative education program is permitted by Section
37.008(j);
(4) [(3)] the number of full or partial days the
student was assigned to the program and the number of full or
partial days the student attended the program; and
(5) [(4)] the number of placements that were
inconsistent with the guidelines included in the student code of
conduct under Section 37.001(a)(5).
(c) For each expulsion under Section 37.007, the district
shall report:
(1) information identifying the student, including
the student's race, sex, and date of birth, that will enable the
agency to compare placement data with information collected through
other reports;
(2) information indicating whether the student was
enrolled in a special education program under Subchapter A, Chapter
29, at the time of the expulsion;
(3) information indicating whether the expulsion was
based on:
(A) conduct for which expulsion is required under
Section 37.007, including information specifically indicating
whether a student was expelled on the basis of Section 37.007(e); or
(B) conduct for which expulsion is permitted
under Section 37.007;
(4) [(3)] the number of full or partial days the
student was expelled;
(5) [(4)] information indicating whether:
(A) the student was placed in a juvenile justice
alternative education program under Section 37.011;
(B) the student was placed in a disciplinary
alternative education program; or
(C) the student was not placed in a juvenile
justice or other disciplinary alternative education program; and
(6) [(5)] the number of expulsions that were
inconsistent with the guidelines included in the student code of
conduct under Section 37.001(a)(5).
PART H. CRIMINAL HISTORY RECORDS INFORMATION
SECTION 2H.01. Subchapter B, Chapter 21, Education Code, is
amended by adding Section 21.0401 to read as follows:
Sec. 21.0401. COLLECTION OF FINGERPRINTS REQUIRED. The
board shall obtain a complete set of fingerprints from:
(1) each applicant for a certificate issued under this
subchapter;
(2) each applicant for or holder of a teaching permit
issued under this subchapter; and
(3) each person described by Section 11A.153 or
Section 21.0032 for whom the board has received information from a
public charter district.
SECTION 2H.02. Section 21.041(c), Education Code, is
amended to read as follows:
(c) The board shall propose rules [a rule] adopting fees [a
fee] for:
(1) the issuance and maintenance of each [an] educator
certificate that is adequate to cover the cost of administration of
this subchapter, including any amount necessary to cover the cost
of obtaining fingerprints under Section 21.0401 or conducting a
national criminal background review and investigation under
Sections 21.0032 and 22.082; and
(2) the cost of obtaining fingerprints from or
conducting a national criminal background review of a holder of a
teaching permit issued under this subchapter.
SECTION 2H.03. Section 22.082, Education Code, is amended
to read as follows:
Sec. 22.082. ACCESS TO CRIMINAL HISTORY RECORDS BY STATE
BOARD FOR EDUCATOR CERTIFICATION. (a) The State Board for Educator
Certification shall obtain from any law enforcement or criminal
justice agency all state and national criminal history record
information that relates to:
(1) an applicant for or holder of a certificate or
permit issued under Subchapter B, Chapter 21; or
(2) a person described by Section 11A.153 or 21.0032.
(b) The board shall require each applicant, holder, and
person described by Subsection (a)(2) to pay any costs to the board
related to obtaining criminal history record information related to
the person under this section.
SECTION 2H.04. Section 411.090, Government Code, is amended
to read as follows:
Sec. 411.090. ACCESS TO CRIMINAL HISTORY RECORD INFORMATION
AND FINGERPRINTS: STATE BOARD FOR EDUCATOR CERTIFICATION. (a) The
State Board for Educator Certification is entitled to obtain from
the department any criminal history record information maintained
by the department about:
(1) a person who has applied or expressed to the board
an intention to apply [to the board] for a certificate or permit
under Subchapter B, Chapter 21, Education Code; or
(2) a person described by Section 11A.153 or 21.0032,
Education Code.
(b) Criminal history record information obtained by the
board under Subsection (a):
(1) may be used for any purpose related to the
issuance, denial, suspension, or cancellation of a certificate or
permit under Subchapter B, Chapter 21, Education Code, or for any
purpose authorized by Section 11A.153 or 21.0032, Education Code
[issued by the board]; and
(2) may not be released to any person except on court
order or with the consent of the subject of the criminal history
record information [applicant for a certificate; and
[(3) shall be destroyed by the board after the
information is used for the authorized purposes].
(c) The board may keep on file with the department all
fingerprints obtained by the board under Section 21.0401, Education
Code. The department shall notify the board of the arrest of any
person who has fingerprints on file with the department pursuant to
that section.
(d) On receipt of notice from the department of an arrest of
a person described by Section 11A.153 or 21.0032, Education Code,
the board shall notify the public charter district affected.
PART I. HEALTH COVERAGE OR COMPENSATION SUPPLEMENTATION
SECTION 2I.01. Chapter 1580, Insurance Code, is reenacted
and amended to read as follows:
CHAPTER 1580. ACTIVE EMPLOYEE HEALTH COVERAGE
OR COMPENSATION SUPPLEMENTATION
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 1580.001. DEFINITIONS. In this chapter:
(1) "Cafeteria plan" means a plan as defined and
authorized by Section 125, Internal Revenue Code of 1986, and its
subsequent amendments.
(2) "Employee" means a participating member of the
Teacher Retirement System of Texas who:
(A) is employed by a school district, other
educational district whose employees are members of the Teacher
Retirement System of Texas, participating charter school, or
regional education service center; and
(B) is not a retiree covered under the program
established under Chapter 1575.
(3) "Participating charter school" means an
open-enrollment charter school established under Subchapter D,
Chapter 12, Education Code, that participates in the program
established under Chapter 1579.
(4) "Regional education service center" means a
regional education service center established under Chapter 8,
Education Code.
(5) "Trustee" means the Teacher Retirement System of
Texas.
Sec. 1580.002. AUTHORITY TO ADOPT RULES; OTHER AUTHORITY.
(a) The trustee may adopt rules to implement this chapter.
(b) The trustee may enter into interagency contracts with
any agency of this state for the purpose of assistance in
implementing this chapter.
SUBCHAPTER B. DESIGNATION OF COMPENSATION AS HEALTH CARE
SUPPLEMENTATION [DISTRIBUTION OF STATE FUNDS BY TRUSTEE]
Sec. 1580.051. DESIGNATION OF COMPENSATION AS HEALTH CARE
SUPPLEMENTATION. (a) As provided by Section 21.402 or 22.007,
Education Code, and subject to Section 1580.102, an employee of a
[DISTRIBUTION BY TRUSTEE. Each year, the trustee shall deliver to
each] school district, [including a school district that is
ineligible for state aid under Chapter 42, Education Code, 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 chapter.
(b) Notwithstanding Subsection (a), 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 is not eligible to elect to designate a
portion of the person's compensation to be used as health care
supplementation under this chapter [state funds in an amount, as
determined by the trustee, equal to the product of the number of
active employees employed by the district, school, or service
center multiplied by $1,000 or a greater amount as provided by the
General Appropriations Act for purposes of this chapter].
[Sec. 1580.052. EQUAL INSTALLMENTS. The trustee shall
distribute funds under this chapter in equal monthly installments.]
Sec. 1580.053. FUNDS HELD IN TRUST. All funds received by
a school district, other educational district, participating
charter school, or regional education service center under this
chapter are held in trust for the benefit of the active employees on
whose behalf the district, school, or service center received the
funds.
[Sec. 1580.054. RECOVERY OF DISTRIBUTIONS. The trustee is
entitled to recover from a school district, other educational
district, participating charter school, or regional education
service center any amount distributed under this chapter to which
the district, school, or service center was not entitled.
[Sec. 1580.055. DETERMINATION OF TRUSTEE FINAL. A
determination by the trustee under this subchapter is final and may
not be appealed.]
SUBCHAPTER C. EMPLOYEE ELECTION
Sec. 1580.101. WRITTEN ELECTION REQUIRED. (a) 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 chapter.
(b) This section does not apply to an employee to whom
Section 1580.102 applies.
Sec. 1580.1011. EMPLOYEE COVERED BY CAFETERIA PLAN. (a) To
elect to designate a portion of the employee's compensation to be
used as health care supplementation under this chapter, [If] an
active employee must be [is] covered by a cafeteria plan of a school
district, other educational district, participating charter
school, or regional education service center. The employee must[,
the state contribution under this chapter shall be deposited in the
cafeteria plan, and the employee may] elect among the options
provided by the cafeteria plan.
(b) A cafeteria plan receiving funds designated as health
care supplementation [state contributions] under this chapter may
include a medical savings account option and must include, at a
minimum, the following options:
(1) a health care reimbursement account;
(2) a benefit or coverage other than that provided
under Chapter 1579, or any employee coverage or dependent coverage
available under Chapter 1579 but not otherwise fully funded by the
state or the employer contributions, any of which must be a
"qualified benefit" under Section 125, Internal Revenue Code of
1986, and its subsequent amendments; or
(3) [an option for the employee to receive the state
contribution as supplemental compensation; or
[(4)] an option to divide the funds between [state
contribution among two or more of] the other options provided under
this subsection.
Sec. 1580.102. EMPLOYEE NOT COVERED BY CAFETERIA PLAN. If
an active employee is not covered by a cafeteria plan of a school
district, other educational district, participating charter
school, or regional education service center, the employee is not
eligible to elect to designate a portion of the employee's
compensation to be used as health care supplementation under this
chapter [state contribution under this chapter shall be paid to the
active employee as supplemental compensation].
[Sec. 1580.103. SUPPLEMENTAL COMPENSATION. Supplemental
compensation under this subchapter must be in addition to the rate
of compensation that:
[(1) the school 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. 1580.104. TIME FOR ELECTION. For each state fiscal
year, an election under this subchapter must be made before the
later of:
(1) August 1 of the preceding state fiscal year; or
(2) the 31st day after the date the employee is hired.
Sec. 1580.105. WRITTEN EXPLANATION; ELECTION
FORM. (a) The trustee shall prescribe and distribute to each
school district, other educational district, participating charter
school, and regional education service center:
(1) a model explanation written in English and Spanish
of the options active employees may elect under this section and the
effect of electing each option; and
(2) an election form to be completed by active
employees.
(b) Each state fiscal year, a school district, other
educational district, participating charter school, or regional
education service center shall prepare and distribute to each
active employee a written explanation in English and Spanish, as
appropriate, of the options the employee may elect under this
section. The explanation must be based on the model explanation
prepared by the trustee under Subsection (a) and must reflect all
available health coverage options available to the employee. The
explanation must be distributed to an employee before the later of:
(1) July 1 of the preceding state fiscal year; or
(2) the fifth day after the date the employee is hired.
(c) The written explanation under Subsection (b) must be
accompanied by a copy of the election form prescribed under
Subsection (a)(2).
[Sec. 1580.106. RETURN OF UNENCUMBERED FUNDS. Any
unencumbered funds that are returned to the school district from
accounts established under Section 1580.101 may be used only to
provide employee compensation, benefits, or both.]
SUBCHAPTER D. MEDICAL SAVINGS ACCOUNT
Sec. 1580.151. DEFINITION. In this subchapter, "qualified
health care expense" means an expense paid by an employee for
medical care, as defined by Section 213(d), Internal Revenue Code
of 1986, and its subsequent amendments, for the employee or the
employee's dependents, as defined by Section 152, Internal Revenue
Code of 1986, and its subsequent amendments.
Sec. 1580.152. RULES. The trustee, by rule, shall specify
the requirements for a medical savings account established under
this chapter.
Sec. 1580.153. QUALIFICATION OF ACCOUNT. (a) The trustee
shall request in writing a ruling or opinion from the Internal
Revenue Service as to whether the medical savings accounts
established under this chapter and the state rules governing those
accounts qualify the accounts for appropriate federal tax
exemptions.
(b) Based on the response of the Internal Revenue Service
under Subsection (a), the trustee shall:
(1) modify the rules, plans, and procedures adopted
under this section as necessary to ensure the qualification of
those accounts for appropriate federal tax exemptions; and
(2) certify the information regarding federal tax
qualifications to the comptroller.
Sec. 1580.154. EMPLOYEE ELECTION. An employee who elects
under Section 1580.101 to have state funds distributed under this
chapter placed in a medical savings account may use the money in
that account only for a qualified health care expense.
ARTICLE 3. STATE PROPERTY TAX
SECTION 3.01. Chapter 45, Education Code, is amended by
adding Subchapter I to read as follows:
SUBCHAPTER I. STATE AD VALOREM TAX
Sec. 45.251. STATE AD VALOREM TAX. (a) A state ad valorem
tax for elementary and secondary school purposes is imposed on all
taxable property in this state.
(b) The tax is imposed at the rate of $0.85 per $100 of
taxable value of property subject to the tax.
(c) Except as otherwise provided by law, the state shall be
treated, for purposes of the state ad valorem tax, as a taxing unit
under Title 1, Tax Code.
Sec. 45.2511. ADOPTION OF TAX RATE; NOTICE AND HEARINGS;
LIMITATIONS ON RATE. (a) In this section, each house of the
legislature is exercising its constitutional authority to adopt the
rules of its own proceedings.
(b) On or before the 30th day of each regular session of the
legislature, the Legislative Budget Board shall calculate and
submit to the legislature the maximum tax rate allowed under
Section 3-a(b), Article VII, Texas Constitution, as proposed by
S.J.R. No. 38, 79th Legislature, Regular Session, 2005, for each of
the two tax years described by that section.
(c) After submitting the tax rates to the legislature under
Subsection (b), the Legislative Budget Board shall promptly:
(1) submit those tax rates to the secretary of state
for publication in the Texas Register;
(2) request the cooperation of all news media in the
state notifying the public of those tax rates; and
(3) if the board maintains an Internet website, post
those tax rates on that website.
(d) Neither house of the legislature may consider a measure
on second reading that proposes a state ad valorem tax rate unless
the committee of that house to which the measure is referred
conducts at least one public hearing on the measure at which
interested persons are allowed to speak for or against the proposed
tax rate. The committee shall request the cooperation of all news
media in the state in notifying the public of the hearing.
(e) A measure establishing a state ad valorem tax rate may
be adopted only by a record vote of each house of the legislature.
Sec. 45.252. APPRAISAL OF PROPERTY. (a) Property subject
to the state ad valorem tax shall be appraised by the appraisal
district that appraises property for taxation by the school
district in which the property has taxable situs under Chapter 21,
Tax Code.
(b) Property subject to the state ad valorem tax shall be
appraised in the manner provided by Title 1, Tax Code, for the
appraisal of property that is subject to ad valorem taxation by a
school district.
Sec. 45.253. TAX COLLECTION. (a) The assessor and
collector for each school district shall assess and collect, as
applicable, state ad valorem taxes imposed on property included on
the appraisal roll for state taxation certified to the comptroller
and to the assessor for that school district under Section 26.01,
Tax Code, unless the governing body of the school district
contracts with an official, taxing unit, or political subdivision
of this state for the assessment or collection of the ad valorem
taxes of the district, in which event the official, taxing unit, or
political subdivision that assess or collects taxes for the school
district shall also assess or collect, as applicable, the state ad
valorem taxes.
(b) Each assessor or collector of state ad valorem taxes is
entitled to be reimbursed by the comptroller for the actual costs
incurred by the assessor or collector in assessing or collecting
state ad valorem taxes. However, an assessor or collector is not
entitled to be reimbursed for any amount that is greater than the
additional incremental costs incurred in assessing or collecting
the state ad valorem taxes.
(c) The comptroller shall:
(1) prescribe methods of accounting for and remitting
state ad valorem taxes;
(2) prescribe methods for establishing an assessor's
or collector's additional incremental costs incurred in assessing
or collecting state ad valorem taxes;
(3) prescribe and furnish forms for periodic reports
relating to state ad valorem taxes; and
(4) periodically examine the records of each assessor
or collector of state ad valorem taxes to verify the accuracy of any
reports required under this subsection.
(d) The comptroller may require an assessor or collector of
state ad valorem taxes to give a bond to the state, conditioned on
the faithful performance of the person's duties as assessor or
collector, in the amount the comptroller considers appropriate to
protect the state from potential losses with regard to assessment
or collection of state ad valorem taxes.
Sec. 45.254. DUTIES AND POWERS OF COMPTROLLER. (a) Except
as otherwise provided by this subchapter, a duty imposed on or power
granted to the governing body of a taxing unit by Title 1, Tax Code,
may, for purposes of the state ad valorem tax, be exercised by the
comptroller. A reference to the presiding officer of a governing
body in Title 1, Tax Code, is a reference to the comptroller for the
purposes of the state tax.
(b) The comptroller may delegate to the assessor or
collector for a school district any function of the comptroller
with respect to the assessment or collection of the state ad valorem
tax and may designate a school district assessor or collector as the
comptroller's agent for purposes of administration of assessment or
collection of the state ad valorem tax.
Sec. 45.255. ADMINISTRATION AND REFUND ACCOUNTS. The
comptroller shall deposit to the credit of the general revenue fund
in appropriately designated accounts an amount of revenue collected
from the state ad valorem tax to pay for the expenses of
administering this subchapter and for the payment of tax refunds
that may become payable.
Sec. 45.256. NONAPPLICABILITY OF CERTAIN OTHER TAX LAWS.
Title 2, Tax Code, does not apply to the state ad valorem tax.
Sec. 45.257. TAX INCREMENT FINANCING. Except as otherwise
provided by Section 311.013, Tax Code, the state may not pay any
portion of the tax increment produced by the state into the tax
increment fund for a reinvestment zone designated under Chapter
311, Tax Code.
Sec. 45.258. TAX ABATEMENT. (a) Except as otherwise
provided by this section, the state may not participate in tax
abatement under Section 311.0125 or 311.013(g) or Chapter 312, Tax
Code.
(b) If school district property taxes on property located in
the taxing jurisdiction of a school district are abated under a tax
abatement agreement entered into by the school district under
Chapter 312, Tax Code, the terms of the agreement regarding the
portion of the value of the property that is to be exempted from
taxation in each year of the agreement apply to the taxation of the
property by the state. A modification of the agreement by the
parties to the agreement under Section 312.208, Tax Code, that
increases the portion of the value of the property that is to be
exempted from taxation or that extends the duration of the
agreement does not apply to the imposition of the state ad valorem
tax unless the modification was entered into before January 1,
2005.
Sec. 45.259. LIMITATION ON APPRAISED VALUE OF CERTAIN
PROPERTY FOR STATE TAXATION. This section applies only in
connection with property for which before April 1, 2005, the owner
of the property has submitted to a school district an application
under Section 313.025, Tax Code, for a limitation on appraised
value under Subchapter B or C, Chapter 313, Tax Code, that is
subsequently approved by the district, and applies only to the
amount stated in the application. In each tax year in which the
appraised value of the property is subject to the limitation, the
appraised value of the property for purposes of the state ad valorem
tax is the same as the appraised value of the property for school
district tax purposes.
SECTION 3.02. Subchapter A, Chapter 6, Tax Code, is amended
by adding Section 6.038 to read as follows:
Sec. 6.038. STATE PARTICIPATION. (a) The comptroller and
the state do not participate in the election of the board of
directors of an appraisal district, the governance or management of
the district, or the determination of the district's finances and
budget.
(b) The comptroller by rule shall establish guidelines and
criteria under which, if the comptroller finds that generally
accepted appraisal standards and practices were not used by the
appraisal district appraising property subject to the state ad
valorem tax or that the appraised values assigned to property
subject to that tax are invalid, the comptroller may:
(1) withhold payment of all or part of the portion of
the amount of the budget of the appraisal district that is allocated
to the state until the district takes appropriate actions to remedy
the deficiencies in appraisals found by the comptroller; or
(2) direct that all or any part of the portion of the
amount of the budget of the district allocated to the state be
applied to remedying those deficiencies.
SECTION 3.03. Section 6.06(d), Tax Code, is amended to read
as follows:
(d) The state and each [Each] taxing unit participating in
the district are each [is] allocated a portion of the amount of the
budget equal to the proportion that the total dollar amount of
property taxes imposed in the district by the state or taxing unit
for the tax year in which the budget proposal is prepared bears to
the sum of the total dollar amount of property taxes imposed in the
district by the state and each participating unit for that year.
For purposes of this subsection, only state ad valorem taxes
imposed in a school district or portion of a school district for
which the appraisal district appraises property for taxation are
considered as state ad valorem taxes imposed in the district. If a
taxing unit participates in two or more districts, only the taxes
imposed in a district are used to calculate the unit's cost
allocations in that district. If the number of real property
parcels in a taxing unit is less than 5 percent of the total number
of real property parcels in the district and the taxing unit imposes
in excess of 25 percent of the total amount of the property taxes
imposed in the district by all of the participating taxing units for
a year, the unit's allocation may not exceed a percentage of the
appraisal district's budget equal to three times the unit's
percentage of the total number of real property parcels appraised
by the district.
SECTION 3.04. Sections 11.13(b) and (c), Tax Code, are
amended to read as follows:
(b) An adult is entitled to exemption from taxation by the
state for elementary and secondary public school purposes or by a
school district of $15,000 of the appraised value of the adult's
residence homestead, except that $10,000 of the exemption does not
apply to an entity operating under former Chapter 17, 18, 25, 26,
27, or 28, Education Code, as those chapters existed on May 1, 1995,
as permitted by Section 11.301, Education Code.
(c) In addition to the exemption provided by Subsection (b)
[of this section], an adult who is disabled or is 65 years of age or
older is entitled to an exemption from taxation by the state for
elementary and secondary public school purposes or by a school
district of $10,000 of the appraised value of the adult's [his]
residence homestead.
SECTION 3.05. Section 11.14, Tax Code, is amended by adding
Subsection (f) to read as follows:
(f) Subsection (c) does not apply to the comptroller or to
the state ad valorem tax.
SECTION 3.06. Section 11.251, Tax Code, is amended by
adding Subsection (l) to read as follows:
(l) The exemption provided by Subsection (b) does not apply
to the state ad valorem tax unless the property is exempt from that
tax under Section 1-j(d), Article VIII, Texas Constitution.
SECTION 3.07. The heading to Section 11.26, Tax Code, is
amended to read as follows:
Sec. 11.26. LIMITATION OF SCHOOL TAXES [TAX] ON HOMESTEADS
OF ELDERLY OR DISABLED.
SECTION 3.08. Section 11.26, Tax Code, is amended by
amending Subsections (a), (b), (g), (h), (j), and (k) and adding
Subsections (a-1) and (g-1) to read as follows:
(a) The tax officials shall appraise the property to which
this section applies and calculate taxes as on other property, but
if the tax so calculated exceeds the limitation imposed by this
section, the tax imposed is the amount of the tax as limited by this
section, except as otherwise provided by this section. The state or
a [A] school district may not increase the total annual amount of ad
valorem tax it imposes on the residence homestead of an individual
65 years of age or older or on the residence homestead of an
individual who is disabled, as defined by Section 11.13, above the
amount of the tax it imposed in the first tax year in which the
individual qualified that residence homestead for the applicable
exemption provided by Section 11.13(c) for an individual who is 65
years of age or older or is disabled. If the individual qualified
that residence homestead for the exemption after the beginning of
that first year and the residence homestead remains eligible for
the same exemption for the next year, and if the state or school
district taxes imposed on the residence homestead in the next year
are less than the amount of taxes the state or school district, as
applicable, imposed in that first year, the state or [a] school
district may not subsequently increase the total annual amount of
ad valorem taxes it imposes on the residence homestead above the
amount it imposed in the year immediately following the first year
for which the individual qualified that residence homestead for the
same exemption, except as provided by Subsection (b).
(a-1) If the first tax year the individual qualified the
residence homestead for the exemption provided by Section 11.13(c)
for individuals 65 years of age or older was a tax year before the
2006 [1997] tax year, except as provided by Subsection (b):
(1) the amount of the limitation provided by this
section on state taxes is the amount of tax the school district in
which the property is located imposed for the 2005 [1996] tax year
[less an amount equal to the amount determined by multiplying
$10,000 times the tax rate of the school district for the 1997 tax
year,] plus any 2006 state [1997] tax attributable to improvements
made in 2005 [1996], other than improvements made to comply with
governmental regulations or repairs; and
(2) the amount of the limitation provided by this
section on school district taxes is the amount of tax the school
district imposed for the 2005 tax year less the amount of state
taxes imposed in the 2006 tax year, plus any 2006 school taxes
attributable to improvements made in 2005, other than improvements
made to comply with governmental regulations or repairs.
(b) If an individual makes improvements to the individual's
residence homestead, other than improvements required to comply
with governmental requirements or repairs, the state or the school
district may increase the tax on the homestead in the first year the
value of the homestead is increased on the appraisal roll because of
the enhancement of value by the improvements. The amount of the tax
increase is determined by applying the current tax rate to the
difference in the assessed value of the homestead with the
improvements and the assessed value it would have had without the
improvements. A limitation imposed by this section then applies to
the increased amount of tax until more improvements, if any, are
made.
(g) Except as provided by Subsection (b), if an individual
who receives a limitation on tax increases imposed by this section,
including a surviving spouse who receives a limitation under
Subsection (i), subsequently qualifies a different residence
homestead for the same exemption under Section 11.13, the state or a
school district may not impose ad valorem taxes on the subsequently
qualified homestead in a year in an amount that exceeds the amount
of taxes the state or the school district would have imposed on the
subsequently qualified homestead in the first year in which the
individual receives that same exemption for the subsequently
qualified homestead had the limitation on tax increases imposed by
this section not been in effect, multiplied by a fraction the
numerator of which is the total amount of [school district] taxes
imposed by the state or the school district, as applicable, on the
former homestead in the last year in which the individual received
that same exemption for the former homestead and the denominator of
which is the total amount of taxes the state or the school district,
as applicable, [taxes that] would have [been] imposed on the former
homestead in the last year in which the individual received that
same exemption for the former homestead had the limitation on tax
increases imposed by this section not been in effect.
(g-1) Subsection (g) does not apply to a residence homestead
to which this subsection applies. Except as provided by Subsection
(b), if an individual who receives a limitation on tax increases
imposed by this section in a tax year before the 2006 tax year,
including a surviving spouse who receives a limitation under
Subsection (i), subsequently qualifies a different residence
homestead for an exemption under Section 11.13(c) and the first
year in which the subsequently qualified homestead qualifies for
the exemption is a tax year after the 2005 tax year:
(1) the state may not impose taxes on the subsequently
qualified homestead in an amount that exceeds the amount of taxes
the state would have imposed on the subsequently qualified
homestead in the first year in which the individual receives that
exemption for the subsequently qualified homestead had the
limitation on tax increases imposed by this section not been in
effect, multiplied by a fraction the numerator of which is the total
amount of school district taxes imposed on the former homestead in
the last year in which the individual received that exemption for
the former homestead and the denominator of which is the total
amount of school district taxes that would have been imposed on the
former homestead in the last year in which the individual received
that exemption for the former homestead had the limitations on tax
increases imposed by this section not been in effect; and
(2) the school district may not impose taxes on the
subsequently qualified homestead in an amount that exceeds the
positive amount, if any, by which the limitation on state taxes
calculated under Subdivision (1) exceeds the amount of state taxes
imposed in the first year in which the subsequently qualified
homestead receives the exemption.
(h) An individual who receives a limitation on tax increases
under this section, including a surviving spouse who receives a
limitation under Subsection (i), and who subsequently qualifies a
different residence homestead for an exemption under Section
11.13(c) [11.13], or an agent of the individual, is entitled to
receive from the chief appraiser of the appraisal district in which
the former homestead was located a written certificate providing
the information necessary to determine whether the individual may
qualify for that same limitation on the subsequently qualified
homestead under Subsection (g) or (g-1) and to calculate the amount
of taxes the state and the school district may impose on the
subsequently qualified homestead.
(j) If an individual who qualifies for an exemption provided
by Section 11.13(c) for an individual 65 years of age or older dies
in the first year in which the individual qualified for the
exemption and the individual first qualified for the exemption
after the beginning of that year, except as provided by Subsection
(k), the amount to which the surviving spouse's state or school
district taxes are limited under Subsection (i) is the amount of
state or school district taxes, as applicable, imposed on the
residence homestead in that year determined as if the individual
qualifying for the exemption had lived for the entire year.
(k) If in the first tax year after the year in which an
individual dies in the circumstances described by Subsection (j)
the amount of [school district] taxes imposed by the state or the
school district on the residence homestead of the surviving spouse
is less than the amount of state or school district taxes, as
applicable, imposed in the preceding year as limited by Subsection
(j), in a subsequent tax year the surviving spouse's state or school
district taxes on that residence homestead are limited to the
amount of taxes imposed by the state or the school district, as
applicable, in that first tax year after the year in which the
individual dies.
SECTION 3.09. Section 21.03(a), Tax Code, is amended to
read as follows:
(a) If personal property that is taxable by this state or a
taxing unit of this state is used continually outside this state,
whether regularly or irregularly, the appraisal office shall
allocate to this state the portion of the total market value of the
property that fairly reflects its use in this state.
SECTION 3.10. Section 21.031(a), Tax Code, is amended to
read as follows:
(a) If a vessel or other watercraft that is taxable by this
state or a taxing unit of this state is used continually outside
this state, whether regularly or irregularly, the appraisal office
shall allocate to this state the portion of the total market value
of the vessel or watercraft that fairly reflects its use in this
state. The appraisal office shall not allocate to this state the
portion of the total market value of the vessel or watercraft that
fairly reflects its use in another state or country, in
international waters, or beyond the Gulfward boundary of this
state.
SECTION 3.11. Section 22.28, Tax Code, is amended to read as
follows:
Sec. 22.28. PENALTY FOR DELINQUENT REPORT. (a) Except as
otherwise provided by Section 22.30, the chief appraiser shall
impose a penalty on a person who fails to timely file a rendition
statement or property report required by this chapter in an amount
equal to 10 percent of the total amount of taxes imposed on the
property for that year by the state, if the property has taxable
situs in a school district or portion of a school district for which
the appraisal district appraises property for taxation, and by the
other taxing units participating in the appraisal district.
(b) The chief appraiser may retain a portion of a penalty
collected under this section, not to exceed 20 percent of the amount
of the penalty, to cover the chief appraiser's costs of collecting
the penalty. The chief appraiser shall distribute the remainder of
the penalty to the state and each other taxing unit participating in
the appraisal district that imposes taxes on the property in
proportion to the state's or the taxing unit's share of the total
amount of taxes imposed on the property by the state and all other
taxing units participating in the district used to determine the
amount of the penalty.
SECTION 3.12. Sections 22.29(a) and (d), Tax Code, are
amended to read as follows:
(a) The chief appraiser shall impose an additional penalty
on the person equal to 50 percent of the total amount of taxes
imposed on the property for the tax year of the statement or report
by the state, if the property has taxable situs in a school district
or portion of a school district for which the appraisal district
appraises property for taxation, and by the other taxing units
participating in the appraisal district if it is finally determined
by a court that:
(1) the person filed a false statement or report with
the intent to commit fraud or to evade the tax; or
(2) the person alters, destroys, or conceals any
record, document, or thing, or presents to the chief appraiser any
altered or fraudulent record, document, or thing, or otherwise
engages in fraudulent conduct, for the purpose of affecting the
course or outcome of an inspection, investigation, determination,
or other proceeding before the appraisal district.
(d) The chief appraiser may retain a portion of a penalty
collected under this section, not to exceed 20 percent of the amount
of the penalty, to cover the chief appraiser's costs of collecting
the penalty. The chief appraiser shall distribute the remainder of
the penalty to the state and each other taxing unit participating in
the appraisal district that imposes taxes on the property in
proportion to the state's or the taxing unit's share of the total
amount of taxes imposed on the property by the state and all other
taxing units participating in the district used to determine the
amount of the penalty.
SECTION 3.13. Section 23.46(d), Tax Code, is amended to
read as follows:
(d) A tax lien attaches to the land on the date the sale or
change of use occurs to secure payment of the additional tax and
interest imposed by Subsection (c) [of this section] and any
penalties incurred. The lien exists in favor of the state and all
taxing units for which the additional tax is imposed.
SECTION 3.14. Section 23.55(b), Tax Code, is amended to
read as follows:
(b) A tax lien attaches to the land on the date the change of
use occurs to secure payment of the additional tax and interest
imposed by this section and any penalties incurred. The lien exists
in favor of the state and all taxing units for which the additional
tax is imposed.
SECTION 3.15. Section 23.76(b), Tax Code, is amended to
read as follows:
(b) A tax lien attaches to the land on the date the change of
use occurs to secure payment of the additional tax and interest
imposed by this section and any penalties incurred. The lien exists
in favor of the state and all taxing units for which the additional
tax is imposed.
SECTION 3.16. Section 23.86(b), Tax Code, is amended to
read as follows:
(b) A tax lien attaches to the land on the date the change of
use occurs or the deed restriction expires to secure payment of the
additional tax and interest imposed by this section and any
penalties incurred. The lien exists in favor of the state and all
taxing units for which the additional tax is imposed.
SECTION 3.17. Section 23.96(b), Tax Code, is amended to
read as follows:
(b) A tax lien attaches to the property on the date the deed
restriction expires to secure payment of the additional tax and
interest imposed by this section and any penalties incurred. The
lien exists in favor of the state and all taxing units for which the
additional tax is imposed.
SECTION 3.18. Section 23.9807(c), Tax Code, is amended to
read as follows:
(c) A tax lien attaches to the land on the date the change of
use occurs to secure payment of the additional tax and interest
imposed by this section and any penalties incurred. The lien exists
in favor of the state and all taxing units for which the additional
tax is imposed.
SECTION 3.19. Section 25.19(b), Tax Code, as amended by
Chapters 1358 and 1517, Acts of the 76th Legislature, Regular
Session, 1999, is reenacted and amended to read as follows:
(b) The chief appraiser shall separate real from personal
property and include in the notice for each:
(1) a list of the taxing units other than the state in
which the property is taxable and, if the property is appraised by
the appraisal district for state taxation, a statement that the
property is subject to the state tax for elementary and secondary
public school purposes;
(2) the appraised value of the property in the
preceding year;
(3) the taxable value of the property in the preceding
year for:
(A) each taxing unit taxing the property; and
(B) state taxation for elementary and secondary
public school purposes, if the property is appraised by the
appraisal district for state taxation;
(4) the appraised value of the property for the
current year and the kind and amount of each partial exemption, if
any, approved for the current year;
(5) if the appraised value is greater than it was in
the preceding year, the amount of tax that would be imposed on the
property on the basis of the tax rate for each taxing unit other
than the state for the preceding year;
(6) in italic typeface, the following statement: "The
Texas Legislature does not set the amount of your local taxes. Your
local property tax burden is decided by your locally elected
officials, and all inquiries concerning your local taxes should be
directed to those officials";
(7) a detailed explanation of the time and procedure
for protesting the value;
(8) the date and place the appraisal review board will
begin hearing protests; and
(9) a brief explanation that the governing body of
each local taxing unit decides whether [or not] taxes on the
property will increase and the appraisal district only determines
the value of the property.
SECTION 3.20. The heading to Section 26.01, Tax Code, is
amended to read as follows:
Sec. 26.01. SUBMISSION OF ROLLS TO STATE AND TAXING UNITS.
SECTION 3.21. Sections 26.01(a), (c), and (d), Tax Code,
are amended to read as follows:
(a) By July 25, the chief appraiser shall prepare and
certify to the assessor for each taxing unit participating in the
appraisal district that part of the appraisal roll for the
appraisal district that lists the property taxable by the unit. By
that date the chief appraiser shall prepare and certify to the
comptroller and to the assessor for each school district that
participates in the appraisal district that part of the appraisal
roll for the appraisal district that lists property for which the
appraisal district appraises the property for state taxation. The
part certified to the comptroller and school district assessor is
the appraisal roll for state taxes. The part certified to the
assessor is the appraisal roll for the taxing unit. The chief
appraiser shall consult with the assessor for each taxing unit and
the comptroller and notify each taxing unit and the comptroller in
writing by April 1 of the form in which the roll will be provided to
each unit and to the comptroller.
(c) The chief appraiser shall prepare and certify to the
assessor for each taxing unit and the comptroller a listing of those
properties that [which] are taxable by that unit or the state, as
applicable, but that [which] are under protest and therefore not
included on the appraisal roll approved by the appraisal review
board and certified by the chief appraiser. This listing shall
include the appraised market value, productivity value (if
applicable), and taxable value as determined by the appraisal
district and shall also include the market value, taxable value,
and productivity value (if applicable) as claimed by the property
owner filing the protest if available. If the property owner does
not claim a value and the appraised value of the property in the
current year is equal to or less than its value in the preceding
year, the listing shall include a reasonable estimate of the market
value, taxable value, and productivity value (if applicable) that
would be assigned to the property if the taxpayer's claim is upheld.
If the property owner does not claim a value and the appraised value
of the property is higher than its appraised value in the preceding
year, the listing shall include the appraised market value,
productivity value (if applicable) and taxable value of the
property in the preceding year, except that if there is a reasonable
likelihood that the appraisal review board will approve a lower
appraised value for the property than its appraised value in the
preceding year, the chief appraiser shall make a reasonable
estimate of the taxable value that would be assigned to the property
if the property owner's claim is upheld. The taxing unit shall use
the lower value for calculations as prescribed in Sections 26.04
and 26.041 [of this code].
(d) The chief appraiser shall prepare and certify to the
assessor for each taxing unit and the comptroller a list of those
properties of which the chief appraiser has knowledge that are
reasonably likely to be taxable by that unit or the state, as
applicable, but that are not included on the appraisal roll
certified to the assessor or the comptroller under Subsection (a)
or included on the listing certified to the assessor or the
comptroller under Subsection (c). The chief appraiser shall
include on the list for each property the market value, appraised
value, and kind and amount of any partial exemptions as determined
by the appraisal district for the preceding year and a reasonable
estimate of the market value, appraised value, and kind and amount
of any partial exemptions for the current year. Until the property
is added to the appraisal roll, the assessor for a [the] taxing unit
shall include each property on the list in the calculations
prescribed by Sections 26.04 and 26.041, and for that purpose shall
use the lower market value, appraised value, or taxable value, as
appropriate, included on or computed using the information included
on the list for the property.
SECTION 3.22. Chapter 26, Tax Code, is amended by adding
Section 26.011 to read as follows:
Sec. 26.011. PROVISIONS NOT APPLICABLE TO STATE TAX.
Sections 26.04, 26.041, 26.05, 26.051, 26.06, 26.07, and 26.08 do
not apply to the state ad valorem tax or to the comptroller.
SECTION 3.23. Section 26.09(c), Tax Code, is amended to
read as follows:
(c) The tax is calculated by:
(1) subtracting from the appraised value of a property
as shown on the appraisal roll for a taxing [the] unit or the state
the amount of any partial exemption allowed the property owner that
applies to appraised value to determine taxable [net appraised]
value; and
(2) [multiplying the net appraised value by the
assessment ratio to determine assessed value;
[(3) subtracting from the assessed value the amount of
any partial exemption allowed the property owner to determine
taxable value; and
[(4)] multiplying the taxable value by the applicable
tax rate.
SECTION 3.24. Section 26.12, Tax Code, is amended by adding
Subsection (e) to read as follows:
(e) For purposes of this section, the state is not a taxing
unit.
SECTION 3.25. Section 26.15(c), Tax Code, is amended to
read as follows:
(c) At any time, the governing body of a taxing unit, on
motion of the assessor for the unit or of a property owner, shall
direct by written order changes in the tax roll to correct errors in
the mathematical computation of a tax. The assessor shall enter the
corrections ordered by the governing body. The comptroller may
order changes in the state tax roll to correct errors in the
mathematical computation of the state ad valorem tax.
SECTION 3.26. Section 31.11(a), Tax Code, is amended to
read as follows:
(a) If a taxpayer applies to the tax collector of a taxing
unit for a refund of an overpayment or erroneous payment of taxes
and the auditor for the unit or the comptroller in the case of the
state ad valorem tax determines that the payment was erroneous or
excessive, the tax collector or, for state taxes, the comptroller
shall refund the amount of the excessive or erroneous payment from
available current tax collections or from funds appropriated by the
unit or the state, as appropriate, for making refunds. For taxes
other than state taxes [However], the collector may not make the
refund unless:
(1) in the case of a collector who collects taxes for
one taxing unit, the governing body of the taxing unit also
determines that the payment was erroneous or excessive and approves
the refund if the amount of the refund exceeds:
(A) $2,500 for a refund to be paid by a county
with a population of 1.5 million or more; or
(B) $500 for a refund to be paid by any other
taxing unit; or
(2) in the case of a collector who collects taxes for
more than one taxing unit, the governing body of the taxing unit
that employs the collector also determines that the payment was
erroneous or excessive and approves the refund if the amount of the
refund exceeds $2,500.
SECTION 3.27. Sections 32.01(a) and (d), Tax Code, are
amended to read as follows:
(a) On January 1 of each year, a tax lien attaches to
property to secure the payment of all taxes, penalties, and
interest ultimately imposed for the year by the state or a taxing
unit on the property, whether or not the taxes are imposed in the
year the lien attaches. The lien to secure the payment of state ad
valorem taxes and applicable penalties and interest exists in favor
of the state. The lien to secure the payment of taxes imposed by a
taxing unit and applicable penalties and interest exists in favor
of the [each] taxing unit having power to tax the property.
(d) The lien under this section is perfected on attachment
and, except as provided by Section 32.03(b), perfection requires no
further action by the state or taxing unit.
SECTION 3.28. Section 33.01(a), Tax Code, is amended to
read as follows:
(a) A delinquent tax, including a delinquent state ad
valorem tax, incurs a penalty of six percent of the amount of the
tax for the first calendar month it is delinquent plus one percent
for each additional month or portion of a month the tax remains
unpaid prior to July 1 of the year in which it becomes delinquent.
However, a tax delinquent on July 1 incurs a total penalty of twelve
percent of the amount of the delinquent tax without regard to the
number of months the tax has been delinquent. A delinquent tax
continues to incur the penalty provided by this subsection as long
as the tax remains unpaid, regardless of whether a judgment for the
delinquent tax has been rendered.
SECTION 3.29. Subchapter A, Chapter 33, Tax Code, is
amended by adding Section 33.11 to read as follows:
Sec. 33.11. COLLECTION OF DELINQUENT STATE AD VALOREM
TAXES; PENALTY. (a) The collector for a school district has the
same powers and duties regarding the collection of delinquent state
ad valorem taxes imposed on property having taxable situs in the
school district as the collector has regarding delinquent school
district taxes on that property.
(b) The attorney who represents a school district to enforce
the collection of delinquent school district taxes represents the
state to enforce the collection of delinquent state ad valorem
taxes imposed on property having taxable situs in the school
district. If the governing body of a school district contracts with
a private attorney to enforce the collection of delinquent school
district ad valorem taxes, the contract applies to the collection
of delinquent state ad valorem taxes on property taxable by that
school district without further action. The compensation of the
private attorney for collecting delinquent state ad valorem taxes
is equal to a percentage of the amount collected that represents the
portion of that amount attributable to the additional penalty
provided by Subsection (c). If the governing body of a school
district contracts with an official, taxing unit, or political
subdivision of this state for the collection of the ad valorem taxes
of the school district that includes the collection of delinquent
school district taxes, the contract applies to the collection of
delinquent state ad valorem taxes on property taxable by that
school district without further action.
(c) State ad valorem taxes that remain delinquent on July 1
of the year in which they become delinquent incur an additional
penalty to defray costs of collection if the collection of the
delinquent taxes is covered by a contract with a private attorney
under Subsection (b). The amount of the penalty is the amount of
the compensation specified in the contract.
(d) A tax lien attaches in favor of the state to the property
on which the tax is imposed to secure payment of the penalty.
(e) The person responsible for collecting the delinquent
state ad valorem tax shall deliver a notice of delinquency and of
the penalty to the property owner at least 30 and not more than 60
days before July 1.
(f) Sections 6.30, 33.07, and 33.08 do not apply to the
state ad valorem tax.
SECTION 3.30. Sections 33.21(a) and (b), Tax Code, are
amended to read as follows:
(a) A person's personal property is subject to seizure for
the payment of a delinquent tax, penalty, and interest the person
[he] owes the state or a taxing unit on property.
(b) A person's personal property is subject to seizure for
the payment of a tax imposed by the state or other [a] taxing unit on
the person's [his] property before the tax becomes delinquent if:
(1) the collector discovers that property on which the
tax has been or will be imposed is about to be removed from the
county; and
(2) the collector knows of no other personal property
in the county from which the tax may be satisfied.
SECTION 3.31. Section 33.23(b), Tax Code, is amended to
read as follows:
(b) A bond may not be required of the state or other [a]
taxing unit for issuance or delivery of a tax warrant, and a fee or
court cost may not be charged for issuance or delivery of a warrant.
SECTION 3.32. Section 33.44(b), Tax Code, is amended to
read as follows:
(b) For purposes of joining a county, citation may be served
on the county [tax] assessor-collector. For purposes of joining
any other taxing unit, citation may be served on the officer charged
with collecting taxes for the unit or on the presiding officer or
secretary of the governing body of the unit. For purposes of
joining the state, citation shall be served on the school district
collector who collects state ad valorem taxes on the property.
Citation may be served by certified mail, return receipt requested.
A person on whom service is authorized by this subsection may waive
the issuance and service of citation in behalf of the person's [his]
taxing unit.
SECTION 3.33. Section 34.04(b), Tax Code, is amended to
read as follows:
(b) A copy of the petition shall be served, in the manner
prescribed by Rule 21a, Texas Rules of Civil Procedure, as amended,
or that rule's successor, on all parties to the underlying action
not later than the 20th day before the date set for a hearing on the
petition. If the state is a party to the underlying action, the
copy of the petition to be served on the state shall be served on the
school district collector who collects state ad valorem taxes on
the subject property. The attorney who represents the state to
enforce the collection of delinquent state ad valorem taxes in the
school district in which the property is located shall represent
the state at the hearing.
SECTION 3.34. The heading to Chapter 41, Tax Code, is
amended to read as follows:
CHAPTER 41. ADMINISTRATIVE [LOCAL] REVIEW
SECTION 3.35. Section 41.03, Tax Code, is amended to read as
follows:
Sec. 41.03. CHALLENGE BY STATE OR TAXING UNIT. (a) The
state or another [A] taxing unit is entitled to challenge before the
appraisal review board:
(1) the level of appraisals of any category of
property in the district or in any territory in the district, but
not the appraised value of a single taxpayer's property;
(2) an exclusion of property from the appraisal
records;
(3) a grant in whole or in part of a partial exemption;
(4) a determination that land qualifies for appraisal
as provided by Subchapter C, D, E, or H, Chapter 23; or
(5) failure to identify the taxing unit as one in which
a particular property is taxable.
(b) If the state or other [a] taxing unit challenges a
determination that land qualifies for appraisal under Subchapter H,
Chapter 23, on the ground that the land is not located in an
aesthetic management zone, critical wildlife habitat zone, or
streamside management zone, the state or other taxing unit must
first seek a determination letter from the director of the Texas
Forest Service. The appraisal review board shall accept the letter
as conclusive proof of the type, size, and location of the zone.
SECTION 3.36. Subchapter A, Chapter 41, Tax Code, is
amended by adding Sections 41.031 and 41.032 to read as follows:
Sec. 41.031. CHALLENGE BY STATE. The state is entitled to
challenge before the appraisal review board the exclusion of
property from the appraisal roll for state ad valorem taxes.
Sec. 41.032. REPRESENTATION OF STATE. The comptroller
represents the state in a challenge by the state under this
subchapter. The comptroller may delegate that function to the
appropriate school district assessor or collector.
SECTION 3.37. Section 41.06(a), Tax Code, is amended to
read as follows:
(a) The secretary of the appraisal review board shall
deliver to the comptroller on behalf of the state and to the
presiding officer of the governing body of each taxing unit other
than the state entitled to appear at a challenge hearing written
notice of the date, time, and place fixed for the hearing. The
secretary shall deliver the notice not later than the 10th day
before the date of the hearing.
SECTION 3.38. Section 41.07(d), Tax Code, is amended to
read as follows:
(d) The board shall deliver by certified mail a notice of
the issuance of the order and a copy of the order to the taxing unit.
If the order of the board excludes property from the appraisal roll
for state ad valorem taxes, the board shall also deliver a notice of
issuance and a copy of the order to the comptroller and the
appropriate school district assessor in the manner prescribed by
the comptroller.
SECTION 3.39. Section 41.47(d), Tax Code, is amended to
read as follows:
(d) The board shall deliver by certified mail a notice of
issuance of the order and a copy of the order to the property owner
and the chief appraiser. If the order of the board excludes
property from the appraisal roll for state ad valorem taxes, the
board shall also deliver a notice of issuance and a copy of the
order to the comptroller and the appropriate school district
assessor in the manner prescribed by the comptroller.
SECTION 3.40. Subchapter A, Chapter 42, Tax Code, is
amended by adding Section 42.032 to read as follows:
Sec. 42.032. RIGHT OF APPEAL BY COMPTROLLER. (a) The
comptroller is entitled to appeal an order of the appraisal review
board excluding property from the appraisal roll for state ad
valorem taxes.
(b) The attorney general shall represent the comptroller in
an appeal under this section. The attorney general may delegate its
duties under this section to a county or district attorney or may
contract with a private attorney for the performance of those
duties.
SECTION 3.41. Sections 42.06(a) and (c), Tax Code, are
amended to read as follows:
(a) To exercise the party's right to appeal an order of an
appraisal review board, a party other than a property owner must
file written notice of appeal within 15 days after the date the
party receives the notice required by Section 41.47 or, in the case
of a taxing unit or the comptroller, by Section 41.07 that the order
appealed has been issued. To exercise the right to appeal an order
of the comptroller, a party other than a property owner must file
written notice of appeal within 15 days after the date the party
receives the comptroller's order. A property owner is not required
to file a notice of appeal under this section.
(c) If the chief appraiser, a taxing unit, [or] a county, or
the comptroller appeals[, the chief appraiser, if the appeal is of]
an order of the appraisal review board, the chief appraiser [or the
comptroller, if the appeal is of an order of the comptroller,] shall
deliver a copy of the notice to the property owner whose property is
involved in the appeal. If the appeal is of an order of the
comptroller, the comptroller shall deliver a copy of the notice to
the property owner. The chief appraiser or the comptroller shall
deliver the copy of the notice within 10 days after the date the
notice is filed.
SECTION 3.42. Sections 42.43(a), (b), and (c), Tax Code,
are amended to read as follows:
(a) If the final determination of an appeal that decreases a
property owner's tax liability occurs after the property owner has
paid the owner's [his] taxes, the taxing unit and the comptroller,
if the property is subject to the state ad valorem tax, shall refund
to the property owner the difference between the amount of taxes
paid and amount of taxes for which the property owner is liable.
(b) For a refund made under this section because an
exemption under Section 11.20 that was denied by the chief
appraiser or appraisal review board is granted, the taxing unit or
the comptroller shall include with the refund interest on the
amount refunded calculated at an annual rate that is equal to the
auction average rate quoted on a bank discount basis for
three-month treasury bills issued by the United States government,
as published by the Federal Reserve Board, for the week in which the
taxes became delinquent, but not more than 10 percent, calculated
from the delinquency date for the taxes until the date the refund is
made. For any other refund made under this section, the taxing unit
or the comptroller shall include with the refund interest on the
amount refunded at an annual rate of eight percent, calculated from
the delinquency date for the taxes until the date the refund is
made.
(c) Notwithstanding Subsection (b), if a taxing unit or the
comptroller does not make a refund, including interest, required by
this section before the 60th day after the date the chief appraiser
certifies a correction to the appraisal roll under Section 42.41,
the taxing unit or the comptroller shall include with the refund
interest on the amount refunded at an annual rate of 12 percent,
calculated from the delinquency date for the taxes until the date
the refund is made.
SECTION 3.43. Sections 43.01 and 43.04, Tax Code, are
amended to read as follows:
Sec. 43.01. AUTHORITY TO BRING SUIT. The comptroller or a
[A] taxing unit may sue the appraisal district that appraises
property for the state or the unit to compel the appraisal district
to comply with the provisions of this title, rules of the
comptroller, or other applicable law.
Sec. 43.04. SUIT TO COMPEL COMPLIANCE WITH DEADLINES. The
comptroller or the governing body of a taxing unit may sue the chief
appraiser or members of the appraisal review board, as applicable,
for failure to comply with the deadlines imposed by Section
25.22(a), 26.01(a), or 41.12. If the court finds that the chief
appraiser or appraisal review board failed to comply for good cause
shown, the court shall enter an order fixing a reasonable deadline
for compliance. If the court finds that the chief appraiser or
appraisal review board failed to comply without good cause, the
court shall enter an order requiring the chief appraiser or
appraisal review board to comply with the deadline not later than
the 10th day after the date the judgment is signed. In a suit
brought under this section, the court may enter any other order the
court considers necessary to ensure compliance with the court's
deadline or the applicable statutory requirements. Failure to obey
an order of the court is punishable as contempt.
SECTION 3.44. Subchapter A, Chapter 313, Tax Code, is
amended by adding Section 313.008 to read as follows:
Sec. 313.008. REPORT TO LEGISLATURE. (a) Not later than
December 1, 2006, the Legislative Budget Board shall submit a
report to the legislature that includes recommended changes to this
chapter to provide incentives and credits relating to the state ad
valorem tax that are consistent with the purposes described by
Section 313.003.
(b) This section expires January 1, 2007.
SECTION 3.45. Chapter 311, Tax Code, is amended by adding
Section 311.0131 to read as follows:
Sec. 311.0131. SCHOOL DISTRICT ANNUAL OBLIGATION TO TAX
INCREMENT FUND; STATE PAYMENT OF PORTION OF OBLIGATION. (a) This
section applies only to a reinvestment zone created before
September 1, 1999, for which a school district enters into an
agreement under Section 311.013(f) with the governing body of the
municipality that created the zone to pay into the tax increment
fund for the zone a portion of the school district's tax increment
produced from property located in the zone.
(b) Notwithstanding the terms of the agreement regarding
the portion of the school district's tax increment required to be
paid into the fund, in each year, the portion of the school
district's tax increment the school district is required to pay
into the fund is the school district annual obligation for the
school district for that year calculated under Subsection (c).
(c) The municipality that created the zone or its designee
shall calculate the school district annual obligation for a school
district by applying the applicable school district's tax rate for
the 2004 tax year to the captured appraised value for the school
district for the year for which the obligation is calculated and
multiplying that amount by the percentage of the school district's
tax increment for the year for which the obligation is calculated
that the school district agreed to pay into the tax increment fund
in that year under Section 311.013(f).
(d) The school district annual obligation for each year
shall be apportioned between the school district and the state in
proportion to the amount of taxes each of those entities imposes on
the captured appraised value for the zone in that year as calculated
under this subsection. The amount of taxes the state imposes on
that captured appraised value is calculated by multiplying the rate
of the state ad valorem tax rate for that year by the captured
appraised value for the state. The amount of taxes the school
district imposes on that captured appraised value used in making
the apportionment is calculated by multiplying the school district
local fund assignment tax rate for that year by the captured
appraised value for the school district. The tax increment base for
the state under Section 311.012 is determined as if this section
were in effect for the year in which the reinvestment zone was
created.
(e) If more than one school district imposes taxes on
property in a reinvestment zone, the school district annual
obligation for each school district and the portion of that
obligation that the state is required to pay under this section
shall be calculated separately for the portion of the property in
the reinvestment zone located in each school district.
(f) The comptroller shall verify the payments to be made by
the state under this section and shall retain from state property
tax collections sufficient funds to make the calculated payments.
From the retained funds, the comptroller shall pay to the school
district or, if required by the agreement, to the municipality the
portion of the school district annual obligation apportioned to the
state under Subsection (c).
(g) On receipt of the state's portion of the school district
annual obligation by a school district, the school district
promptly shall pay the state's portion to the municipality. At the
time of payment of the state's portion to the municipality, the
school district shall pay to the municipality any unpaid balance of
the school district's portion of the school district annual
obligation.
(h) Amounts paid to a municipality under Subsections (f) and
(g) shall be deposited to the credit of the tax increment fund on
behalf of the school district.
(i) This section ceases to apply to a reinvestment zone on
the earlier date specified by Section 311.017(a)(1) or (2) for the
reinvestment zone. If the agreement provides that the termination
date may be extended, the state's obligation to pay a portion of the
school district annual obligation ceases on the date the school
district ceases to be required to pay any tax increment produced by
the school district into the tax increment fund for the zone.
SECTION 3.46. The changes in law made by this article to
Chapter 41, Tax Code, apply only to a challenge or protest under
that chapter for which the notice is filed on or after the effective
date of this article. A challenge or protest for which the notice
is filed before the effective date of this article is covered by the
law in effect when the notice of protest was filed, and the former
law is continued in effect for that purpose.
SECTION 3.47. The changes in law made by this article apply
to each tax year that begins on or after January 1, 2006. The
changes in law do not apply to a tax year that begins before January
1, 2006, and the law as it existed before January 1, 2006, is
continued in effect for purposes of taxes imposed in that tax year.
ARTICLE 4. CHARTER SCHOOLS
SECTION 4.01. (a) Effective August 1, 2006, Subchapter D,
Chapter 12, Education Code, is repealed.
(b) Except as provided by Section 11A.1041, Education Code,
as added by this Act, each open-enrollment charter school operating
or holding a charter to operate on August 1, 2006, shall be
dissolved in accordance with Subchapter J, Chapter 11A, Education
Code, as added by this Act.
SECTION 4.02. Subtitle C, Title 2, Education Code, is
amended by adding Chapter 11A to read as follows:
CHAPTER 11A. PUBLIC CHARTER DISTRICTS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 11A.001. DEFINITIONS. In this chapter:
(1) "Charter holder" means the entity to which a
charter is granted under this chapter.
(2) "Governing body of a charter holder" means the
board of directors, board of trustees, or other governing body of a
charter holder.
(3) "Governing body of a public charter district"
means the board of directors, board of trustees, or other governing
body of a public charter district. The term includes the governing
body of a charter holder if that body acts as the governing body of
the public charter district.
(4) "Management company" means a person, other than a
charter holder, who provides management services for a public
charter district.
(5) "Management services" means services related to
the management or operation of a public charter district,
including:
(A) planning, operating, supervising, and
evaluating the public charter district's educational programs,
services, and facilities;
(B) making recommendations to the governing body
of the public charter district relating to the selection of school
personnel;
(C) managing the public charter district's
day-to-day operations as its administrative manager;
(D) preparing and submitting to the governing
body of the public charter district a proposed budget;
(E) recommending policies to be adopted by the
governing body of the public charter district, developing
appropriate procedures to implement policies adopted by the
governing body of the public charter district, and overseeing the
implementation of adopted policies; and
(F) providing leadership for the attainment of
student performance at the public charter district based on the
indicators adopted under Section 39.051 or by the governing body of
the public charter district.
(6) "Officer of a public charter district" means:
(A) the principal, director, or other chief
operating officer of a public charter district or campus; or
(B) a person charged with managing the finances
of a public charter district.
Sec. 11A.002. AUTHORIZATION. (a) In accordance with this
chapter, the State Board of Education may grant a charter on the
application of an eligible entity for a public charter district to
operate in a facility of a commercial or nonprofit entity, an
eligible entity, or a school district, including a home-rule school
district. In this subsection, "eligible entity" means:
(1) an institution of higher education as defined
under Section 61.003;
(2) a private or independent institution of higher
education as defined under Section 61.003;
(3) an organization that is exempt from federal income
taxation under Section 501(a), Internal Revenue Code of 1986, as an
organization described by Section 501(c)(3) of that code; or
(4) a governmental entity in this state.
(b) The State Board of Education may grant a charter for a
public charter district only to an applicant that meets all
financial, governing, and operational standards adopted by the
commissioner under this chapter.
(c) The State Board of Education may not grant more than a
total of 215 charters for public charter districts.
(d) An educator employed by a school district before the
effective date of a charter for a public charter district operated
at a school district facility may not be transferred to or employed
by the public charter district over the educator's objection.
Sec. 11A.003. AUTHORITY UNDER CHARTER. A public charter
district:
(1) shall provide instruction to and assess a number
of students at a number of elementary or secondary grade levels, as
provided by the charter, sufficient to permit the agency to assign
an accountability rating under Chapter 39;
(2) is governed under the governing structure required
by this chapter and described by the charter;
(3) retains authority to operate under the charter
contingent on satisfactory student performance as provided by the
charter in accordance with Section 11A.103; and
(4) does not have authority to impose taxes.
Sec. 11A.004. STATUS. A public charter district or campus
is part of the public school system of this state.
Sec. 11A.005. IMMUNITY FROM LIABILITY. In matters related
to operation of a public charter district, a public charter
district is immune from liability to the same extent as a school
district, and its employees and volunteers are immune from
liability to the same extent as school district employees and
volunteers. Except as provided by Section 11A.154, a member of the
governing body of a public charter district or of a charter holder
is immune from liability to the same extent as a school district
trustee.
Sec. 11A.006. REFERENCE TO OPEN-ENROLLMENT CHARTER SCHOOL.
A reference in law to an open-enrollment charter school means a
public charter district or public charter campus, as applicable.
[Sections 11A.007-11A.050 reserved for expansion]
SUBCHAPTER B. APPLICABILITY OF CERTAIN LAWS
Sec. 11A.051. GENERAL APPLICABILITY OF LAWS, RULES, AND
ORDINANCES TO PUBLIC CHARTER DISTRICT. (a) Except as provided by
Subsection (b) or (c), a public charter district is subject to
federal and state laws and rules governing public schools and to
municipal zoning ordinances governing public schools.
(b) A public charter district is subject to this code and
rules adopted under this code only to the extent the applicability
to a public charter district of a provision of this code or a rule
adopted under this code is specifically provided.
(c) Notwithstanding Subsection (a), a campus of a public
charter district located in whole or in part in a municipality with
a population of 20,000 or less is not subject to a municipal zoning
ordinance governing public schools.
Sec. 11A.052. APPLICABILITY OF TITLE. (a) A public charter
district has the powers granted to schools under this title.
(b) A public charter district is subject to:
(1) a provision of this title establishing a criminal
offense; and
(2) a prohibition, restriction, or requirement, as
applicable, imposed by this title or a rule adopted under this
title, relating to:
(A) the Public Education Information Management
System (PEIMS) under Section 42.006;
(B) reporting an educator's misconduct under
Section 21.006;
(C) criminal history records under Subchapter C,
Chapter 22;
(D) reading instruments and accelerated reading
instruction programs under Section 28.006;
(E) satisfactory performance on assessment
instruments and to accelerated instruction under Section 28.0211;
(F) intensive programs of instruction under
Section 28.0213;
(G) high school graduation under Section 28.025;
(H) special education programs under Subchapter
A, Chapter 29, including a requirement that special education
teachers obtain appropriate certification;
(I) bilingual education under Subchapter B,
Chapter 29, including a requirement that bilingual education
teachers obtain appropriate certification;
(J) prekindergarten programs under Subchapter E,
Chapter 29;
(K) extracurricular activities under Section
33.081;
(L) discipline management practices or behavior
management techniques under Section 37.0021;
(M) health and safety under Chapter 38; and
(N) public school accountability under
Subchapters B, C, D, G, and I, Chapter 39.
(c) A public charter district is entitled to the same level
of services provided to school districts by regional education
service centers. The commissioner shall adopt rules that provide
for the representation of public charter districts on the boards of
directors of regional education service centers.
(d) The commissioner may by rule permit a public charter
district to voluntarily participate in any state program available
to school districts, including a purchasing program, if the public
charter district complies with all terms of the program.
Sec. 11A.053. APPLICABILITY OF OPEN MEETINGS AND PUBLIC
INFORMATION LAWS. (a) With respect to the operation of a public
charter district, the governing body of a charter holder and the
governing body of a public charter district are considered to be
governmental bodies for purposes of Chapters 551 and 552,
Government Code.
(b) With respect to the operation of a public charter
district, any requirement in Chapter 551 or 552, Government Code,
that applies to a school district, the board of trustees of a school
district, or public school students applies to a public charter
district, the governing body of a charter holder, the governing
body of a public charter district, or students in attendance at a
public charter district campus.
Sec. 11A.054. APPLICABILITY OF LAWS RELATING TO LOCAL
GOVERNMENT RECORDS. (a) With respect to the operation of a public
charter district, a public charter district is considered to be a
local government for purposes of Subtitle C, Title 6, Local
Government Code, and Subchapter J, Chapter 441, Government Code.
(b) Records of a public charter district, a charter holder,
or a management company that relate to a public charter district are
government records for all purposes under state law.
(c) Any requirement in Subtitle C, Title 6, Local Government
Code, or Subchapter J, Chapter 441, Government Code, that applies
to a school district, the board of trustees of a school district, or
an officer or employee of a school district applies to a public
charter district or management company, the governing body of a
charter holder, the governing body of a public charter district, or
an officer or employee of a public charter district or management
company except that the records of a public charter district or
management company that ceases to operate shall be transferred in
the manner prescribed by Subsection (d).
(d) The records of a public charter district or management
company that ceases to operate shall be transferred in the manner
specified by the commissioner to a custodian designated by the
commissioner. The commissioner may designate any appropriate
entity to serve as custodian, including the agency, a regional
education service center, or a school district. In designating a
custodian, the commissioner shall ensure that the transferred
records, including student and personnel records, are transferred
to a custodian capable of:
(1) maintaining the records;
(2) making the records readily accessible to students,
parents, former school employees, and other persons entitled to
access; and
(3) complying with applicable state or federal law
restricting access to the records.
(e) If the charter holder of a public charter district that
ceases to operate or an officer or employee of the district or a
management company refuses to transfer school records in the manner
specified by the commissioner under Subsection (d), the
commissioner may ask the attorney general to petition a court for
recovery of the records. If the court grants the petition, the
court shall award attorney's fees and court costs to the state.
(f) A record described by this section is a public school
record for purposes of Section 37.10(c)(2), Penal Code.
Sec. 11A.055. APPLICABILITY OF LAWS RELATING TO PUBLIC
PURCHASING AND CONTRACTING. (a) This section applies to a public
charter district unless the district's charter otherwise describes
procedures for purchasing and contracting and the procedures are
approved by the State Board of Education.
(b) A public charter district is considered to be:
(1) a governmental entity for purposes of:
(A) Subchapter D, Chapter 2252, Government Code;
and
(B) Subchapter B, Chapter 271, Local Government
Code;
(2) a political subdivision for purposes of Subchapter
A, Chapter 2254, Government Code; and
(3) a local government for purposes of Sections
2256.009-2256.016, Government Code.
(c) To the extent consistent with this section, a
requirement in a law listed in this section that applies to a school
district or the board of trustees of a school district applies to a
public charter district, the governing body of a charter holder, or
the governing body of a public charter district.
Sec. 11A.056. APPLICABILITY OF LAWS RELATING TO CONFLICT OF
INTEREST. (a) A member of the governing body of a charter holder, a
member of the governing body of a public charter district, or an
officer of a public charter district is considered to be a local
public official for purposes of Chapter 171, Local Government Code.
For purposes of that chapter:
(1) a member of the governing body of a charter holder
or a member of the governing body or officer of a public charter
district is considered to have a substantial interest in a business
entity if a person related to the member or officer in the third
degree by consanguinity or affinity, as determined under Chapter
573, Government Code, has a substantial interest in the business
entity under Section 171.002, Local Government Code; and
(2) a teacher at a public charter district may serve as
a member of the governing body of the charter holder or the
governing body of the public charter district if the teachers
serving on the governing body:
(A) do not constitute a quorum of the governing
body or any committee of the governing body; and
(B) comply with the requirements of Sections
171.003-171.007, Local Government Code.
(b) To the extent consistent with this section, a
requirement of a law listed in this section that applies to a school
district or the board of trustees of a school district applies to a
public charter district, the governing body of a charter holder, or
the governing body of a public charter district.
(c) An employee who is not a teacher may serve as a member of
the governing body of a charter holder or the governing body of a
public charter district if:
(1) the charter holder operating the public charter
district where the individual is employed and serves as a member of
the governing body operated an open-enrollment charter school under
Subchapter D, Chapter 12, on August 31, 2005;
(2) the individual was employed by the charter holder
and serving as a member of the governing body on August 31, 2005, in
compliance with former Section 12.1054; and
(3) the individual had been continuously so employed
and serving since a date on or before January 1, 2005.
(d) If under Subsection (c) an individual continues to be
employed and serve as a member of the governing body, the individual
may not participate in any deliberation or voting on the
appointment, reappointment, confirmation of the appointment or
reappointment, employment, reemployment, change in the status,
compensation, or dismissal of the individual if that action applies
only to the individual and is not taken regarding a bona fide class
or category of employees. In addition, the individual may not hear,
consider, or act on any grievance or complaint concerning the
individual or a matter with which the individual has dealt in the
individual's capacity as an employee.
Sec. 11A.057. APPLICABILITY OF NEPOTISM LAWS. (a) A public
charter district, including the governing body of a public charter
district and any district employee with final authority to hire a
district employee, is subject to a prohibition, restriction, or
requirement, as applicable, imposed by state law or by a rule
adopted under state law, relating to nepotism under Chapter 573,
Government Code.
(b) Notwithstanding Subsection (a), a member of the
governing body of a charter holder or public charter district may
not be related in the third degree by consanguinity or affinity, as
determined under Chapter 573, Government Code, to another member of
the governing body of the charter holder or public charter
district.
(c) This section does not apply to an appointment,
confirmation of an appointment, or vote for an appointment or
confirmation of an appointment of an individual to a position if:
(1) the charter holder operating the public charter
district where the individual is employed or serves as a member of
the governing body operated an open-enrollment charter school under
Subchapter D, Chapter 12, on August 31, 2005;
(2) the individual was employed or serving in the
position on August 31, 2005, in compliance with former Section
12.1055; and
(3) the individual has been continuously employed or
serving since a date on or before January 1, 2005.
(d) If, under Subsection (c), an individual continues to be
employed or serve in a position, the public official to whom the
individual is related in a prohibited degree may not participate in
any deliberation or voting on the appointment, reappointment,
confirmation of the appointment or reappointment, employment,
reemployment, change in status, compensation, or dismissal of the
individual if that action applies only to the individual and is not
taken regarding a bona fide class or category of employees.
[Sections 11A.058-11A.100 reserved for expansion]
SUBCHAPTER C. CHARTER ISSUANCE AND ADMINISTRATION
Sec. 11A.101. APPLICATION. (a) The State Board of
Education shall adopt:
(1) an application form and a procedure that must be
used to apply for a charter for a public charter district; and
(2) criteria to use in selecting a program for which to
grant a charter.
(b) The application form must provide for including the
information required under Section 11A.103 to be contained in a
charter.
(c) The State Board of Education may approve or deny an
application based on criteria it adopts and on financial,
governing, and operational standards adopted by the commissioner
under this chapter. The criteria the board adopts must include:
(1) criteria relating to improving student
performance and encouraging innovative programs; and
(2) criteria relating to the educational benefit for
students residing in the geographic area to be served by the
proposed public charter district, as compared to any significant
financial difficulty that a loss in enrollment may have on any
school district whose enrollment is likely to be affected by the
public charter district.
(d) A public charter district may not begin operating under
this chapter unless the commissioner has certified that the
applicant has acceptable administrative and accounting systems and
procedures in place for the operation of the proposed public
charter district.
Sec. 11A.102. NOTIFICATION OF CHARTER APPLICATION. The
commissioner by rule shall adopt a procedure for providing notice
to each member of the legislature that represents the geographic
area to be served by the proposed public charter district, as
determined by the commissioner, on receipt by the State Board of
Education of an application for a charter for a public charter
district under Section 11A.101.
Sec. 11A.103. CONTENT. (a) Each charter granted under this
chapter must:
(1) describe the educational program to be offered,
which must include the required curriculum as provided by Section
28.002;
(2) establish educational goals, which must include
acceptable student performance as determined under Chapter 39;
(3) specify the grade levels to be offered, which must
be sufficient to permit the agency to assign an accountability
rating under Chapter 39;
(4) describe the facilities to be used;
(5) describe the geographical area served by the
program, which may not be statewide; and
(6) specify any type of enrollment criteria to be
used.
(b) A charter holder of a public charter district shall
consider including in the district's charter a requirement that the
district develop and administer personal graduation plans under
Section 28.0212, as added by Chapter 1212, Acts of the 78th
Legislature, Regular Session, 2003.
(c) The terms of a charter may not include plans for future
increases in student enrollment, grades levels, campuses, or
geographical area, except that:
(1) the charter may contain a plan for adding grade
levels as necessary to comply with Section 11A.253(c) or (d); and
(2) the commissioner may approve such an increase in a
charter revision request under Section 11A.106.
Sec. 11A.104. FORM. A charter for a public charter district
shall be in the form of a license issued by the State Board of
Education to the charter holder.
Sec. 11A.1041. GRANT OF CHARTER REQUIRED FOR CERTAIN
ENTITIES. (a) Notwithstanding Section 11A.101, the commissioner
shall immediately grant a charter under this chapter to the
following entities on or before August 1, 2006:
(1) an eligible entity holding a charter granted
before September 1, 2002, under Subchapter D, Chapter 12, as that
subchapter existed on January 1, 2005, if:
(A) for fiscal years 2004 and 2005, the entity
had total assets that exceeded total liabilities, as determined by
the entity's annual audit report under Section 44.008;
(B) at least 25 percent of all students enrolled
at the entity's open-enrollment charter school and administered an
assessment instrument under Section 39.023(a), (c), or (l)
performed satisfactorily on the assessment instrument in
mathematics, as determined by the school's assessment instrument
results for the 2005-2006 school year; and
(C) at least 25 percent of all students enrolled
at the entity's open-enrollment charter school and administered an
assessment instrument under Section 39.023(a), (c), or (l)
performed satisfactorily on the assessment instrument in reading or
English language arts, as applicable, as determined by the school's
assessment instrument results for the 2005-2006 school year;
(2) a governmental entity holding a charter under
Subchapter D, Chapter 12, as that subchapter existed on January 1,
2005;
(3) an eligible entity holding a charter under
Subchapter D, Chapter 12, as that subchapter existed on January 1,
2005, if at least 85 percent of students enrolled in the school
reside in a residential facility; and
(4) an eligible entity granted a charter on or after
September 1, 2002, under Subchapter D, Chapter 12, as that
subchapter existed on January 1, 2005.
(b) Assessment instrument results for fewer than five
students are not considered for purposes of Subsection (a)(1)(B) or
(C).
(c) The commissioner shall determine which entities are
eligible for a charter under this section as soon as practicable.
(d) The content and terms of a charter granted to an
eligible entity under this section must be the same as those under
which the entity operated under Subchapter D, Chapter 12, as that
subchapter existed on January 1, 2005, except that where the terms
conflict with this chapter, this chapter prevails.
(e) An eligible entity holding multiple charters prior to
January 1, 2005, may not combine those charters into one charter for
a public charter district but must retain each of those charters
which count towards the limit imposed under Section 11A.002(c).
(f) Section 11A.157 does not apply to an entity granted a
charter under this section.
(g) A decision of the commissioner under this section is not
subject to a hearing or an appeal to a district court.
(h) This section expires January 1, 2008.
Sec. 11A.1042. DETERMINATION OF ACCEPTABLE PERFORMANCE.
(a) For purposes of Section 11A.1041(a), the commissioner shall
compute the percentage of students who performed satisfactorily on
an assessment instrument in a manner consistent with this section.
(b) The commissioner may only consider the performance of a
student who was enrolled as of the date for reporting enrollment for
the fall semester under the Public Education Information Management
System (PEIMS).
(c) In computing performance under this section, the
commissioner must:
(1) add the results for third through 11th grade
assessment instruments in English and third through sixth grade
assessment instruments in Spanish across grade levels tested at all
campuses operated by the charter holder and evaluate those results
for all students;
(2) combine the results for third through ninth grade
assessment instruments in reading and 10th and 11th grade
assessment instruments in English language arts and evaluate those
results as a single subject; and
(3) separately determine student performance for
reading and mathematics as a percentage equal to the sum of students
who performed satisfactorily on the specific subject area
assessment instrument in all grade levels tested at all campuses
operated by the charter holder divided by the number of students who
took the specific subject area assessment instrument in grade
levels tested at all campuses operated by the charter holder.
(d) To the extent consistent with this section, the
commissioner shall use the methodology used to compute passing
rates for reading and mathematics assessment instruments for
purposes of determining accountability ratings under Chapter 39 for
the 2004-2005 school year as provided by 19 T.A.C. Section 97.1002.
(e) This section expires January 1, 2008.
Sec. 11A.105. CHARTER GRANTED. Each charter the State
Board of Education grants for a public charter district must:
(1) satisfy this chapter; and
(2) include the information that is required under
Section 11A.103 consistent with the information provided in the
application and any modification the board requires.
Sec. 11A.106. REVISION. (a) A revision of a charter of a
public charter district may be made only with the approval of the
commissioner.
(b) Not more than once each year, a public charter district
may request approval to revise the maximum student enrollment
described by the district's charter.
(c) The commissioner may not approve a charter revision that
increases a public charter district's enrollment, increases the
grade levels offered, increases the number of campuses, or changes
the boundaries of the geographic area served by the program unless
the commissioner determines that:
(1) the public charter district has operated one or
more campuses for at least three school years;
(2) each campus operated by the public charter
district has been rated at least academically acceptable under
Subchapter D, Chapter 39, for each of its most recent three years of
operation;
(3) each campus operated by the public charter
district has achieved performance levels that are at least five
percentage points above the applicable accountability standard for
academically acceptable performance on statewide assessments under
Subchapter D, Chapter 39, as determined by the commissioner, for
all tested subjects for each of its most recent two years of
operation;
(4) the public charter district has been rated
superior, above standard, standard, or the equivalent, under the
financial accountability system under Subchapter I, Chapter 39;
(5) during the three years preceding the proposed
charter revision, the public charter district and its campuses have
not been subject to an intervention or sanction under Subchapter D,
Chapter 39, including an intervention or sanction related to:
(A) the quality of data or reports required by
state or federal law or court order;
(B) high school graduation requirements under
Section 28.025; or
(C) the effectiveness of programs for special
student populations; and
(6) the charter revision is in the best interest of
students of this state.
(d) In making a determination under Subsection (c)(6), the
commissioner shall review all available information relating to the
charter holder, including the charter holder's:
(1) academic and financial performance;
(2) history of compliance with applicable laws;
(3) staffing, financial, and organizational data; and
(4) any other information regarding the charter
holder's capacity to successfully implement the requested charter
revision.
(e) The commissioner may not approve a charter revision that
proposes an increase in:
(1) a public charter district's enrollment, unless the
charter holder adopts a business plan for implementing the
enrollment increase that includes components identified by the
commissioner; or
(2) the grade levels offered by a public charter
district, unless the charter holder adopts an educational plan for
the additional grade levels that includes components identified by
the commissioner.
(f) The commissioner may approve a charter revision
authorizing a public charter district to serve students in a
geographical area that is not contiguous with the existing
boundaries of the district, but may not approve a statewide
geographical boundary.
Sec. 11A.107. BASIS FOR MODIFICATION, PLACEMENT ON
PROBATION, OR REVOCATION. (a) The commissioner may modify, place
on probation, or revoke the charter of a public charter district if
the commissioner determines under Section 11A.108 that the charter
holder:
(1) committed a material violation of the charter;
(2) failed to satisfy generally accepted accounting
standards of fiscal management;
(3) failed to protect the health, safety, welfare, or
best interests of the students enrolled at the public charter
district; or
(4) failed to comply with this chapter or another
applicable law or rule.
(b) The commissioner shall revoke the charter of a public
charter district without a hearing if:
(1) in two consecutive years, the public charter
district:
(A) is rated academically unacceptable under
Subchapter D, Chapter 39; or
(B) is rated financially unacceptable by the
commissioner under Subchapter I, Chapter 39; or
(2) all campuses operated by the public charter
district have been ordered closed under Section 39.131(a) or
39.132(b).
(c) A revocation under Subsection (b)(1) is effective on
January 1 following the school year in which the public charter
district received a second unacceptable rating.
Sec. 11A.108. PROCEDURE FOR MODIFICATION, PLACEMENT ON
PROBATION, OR REVOCATION. (a) The commissioner shall adopt a
procedure to be used for modifying, placing on probation, or
revoking the charter of a public charter district under Section
11A.107(a).
(b) The procedure adopted under Subsection (a) must provide
an opportunity for a hearing to the charter holder.
Sec. 11A.109. APPEAL OF MODIFICATION, PLACEMENT ON
PROBATION, OR REVOCATION. A charter holder may appeal a
modification, placement on probation, or revocation under this
subchapter only in the manner provided by the applicable procedures
adopted by the commissioner under Section 11A.108. The charter
holder may not otherwise appeal to the commissioner and may not
appeal to a district court.
Sec. 11A.110. EFFECT OF REVOCATION OR SURRENDER OF CHARTER.
If the commissioner revokes a charter of a public charter district,
if a district is ordered closed under Chapter 39, or if a public
charter district surrenders its charter, the district may not:
(1) continue to operate under this chapter; or
(2) receive state funds under this chapter.
[Sections 11A.111-11A.150 reserved for expansion]
SUBCHAPTER D. POWERS AND DUTIES OF GOVERNING BODIES OF
CHARTER HOLDERS, PUBLIC CHARTER DISTRICTS, AND MANAGEMENT
COMPANIES
Sec. 11A.151. RESPONSIBILITY FOR PUBLIC CHARTER DISTRICT.
The governing body of a charter holder is responsible for the
management, operation, and accountability of the public charter
district, regardless of whether the governing body delegates the
governing body's powers and duties to another person.
Sec. 11A.152. COMPOSITION OF GOVERNING BODY OF CHARTER
HOLDER. The governing body of a charter holder must be composed of
at least five members.
Sec. 11A.153. RESTRICTIONS ON SERVING AS MEMBER OF
GOVERNING BODY OF CHARTER HOLDER OR PUBLIC CHARTER DISTRICT OR AS
OFFICER OR EMPLOYEE. (a) Except as provided by Subsection (b), a
person may not serve as a member of the governing body of a charter
holder, as a member of the governing body of a public charter
district, or as an officer or employee of a public charter district
if the person:
(1) has been convicted of a felony or a misdemeanor
involving moral turpitude;
(2) has been convicted of an offense listed in Section
37.007(a);
(3) has been convicted of an offense listed in Article
62.01(5), Code of Criminal Procedure; or
(4) has a substantial interest in a management
company.
(b) A person who has been convicted of an offense described
by Subsection (a)(1), (2), or (3) may serve as a member of the
governing body of a charter holder, as a member of the governing
body of a public charter district, or as an officer or employee of a
public charter district if the commissioner determines that the
person is fit to serve in that capacity. In making a determination
under this subsection, the commissioner shall consider:
(1) the factors described by Section 53.022,
Occupations Code, for determining the extent to which a conviction
relates to an occupation;
(2) the factors described by Section 53.023,
Occupations Code, for determining the fitness of a person to
perform the duties and discharge the responsibilities of an
occupation; and
(3) other appropriate factors, as determined by the
commissioner.
(c) For purposes of Subsection (a)(4), a person has a
substantial interest in a management company if the person or a
relative within the third degree by consanguinity or affinity, as
determined under Chapter 573, Government Code:
(1) has a controlling interest in the company;
(2) owns more than 10 percent of the voting interest in
the company;
(3) owns more than $25,000 of the fair market value of
the company;
(4) has a direct or indirect participating interest by
shares, stock, or otherwise, regardless of whether voting rights
are included, in more than 10 percent of the profits, proceeds, or
capital gains of the company;
(5) is a member of the board of directors or other
governing body of the company;
(6) serves as an elected officer of the company; or
(7) is an employee of the company.
Sec. 11A.154. LIABILITY OF MEMBERS OF GOVERNING BODY OF
CHARTER HOLDER. (a) Notwithstanding the Texas Non-Profit
Corporation Act (Article 1396-1.01 et seq., Vernon's Texas Civil
Statutes), Chapter 22, Business Organizations Code, or other law,
on request of the commissioner, the attorney general shall bring
suit against a member of the governing body of a charter holder for
breach of a fiduciary duty by the member, including misapplication
of public funds.
(b) The attorney general may bring suit under Subsection (a)
for:
(1) damages;
(2) injunctive relief; or
(3) any other equitable remedy determined to be
appropriate by the court.
(c) This section is cumulative of all other remedies.
Sec. 11A.155. TRAINING FOR MEMBERS OF GOVERNING BODY OF
CHARTER HOLDER. (a) The commissioner shall adopt rules
prescribing training for members of governing bodies of charter
holders.
(b) The rules adopted under Subsection (a) may:
(1) specify the minimum amount and frequency of the
training;
(2) require the training to be provided by:
(A) the agency and regional education service
centers;
(B) entities other than the agency and service
centers, subject to approval by the commissioner; or
(C) both the agency, service centers, and other
entities; and
(3) require training to be provided concerning:
(A) basic school law, including school finance;
(B) health and safety issues;
(C) accountability requirements related to the
use of public funds; and
(D) other requirements relating to
accountability to the public, such as open meetings requirements
under Chapter 551, Government Code, and public information
requirements under Chapter 552, Government Code.
Sec. 11A.156. BYLAWS; ANNUAL REPORT. (a) A charter holder
shall file with the State Board of Education a copy of its articles
of incorporation and bylaws, or comparable documents if the charter
holder does not have articles of incorporation or bylaws, within
the period and in the manner prescribed by the board.
(b) Each public charter district shall file annually with
the State Board of Education the following information in a form
prescribed by the board:
(1) the name, address, and telephone number of each
officer and member of the governing body of the charter holder; and
(2) the amount of annual compensation the public
charter district pays to each officer and member of the governing
body.
Sec. 11A.157. QUARTERLY FINANCIAL REPORTS REQUIRED. During
a public charter district's first year of operation, the charter
holder shall submit quarterly financial reports to the
commissioner. The commissioner by rule shall determine the form
and content of the financial reports under this section.
Sec. 11A.158. PEIMS INFORMATION. The governing body of a
public charter district shall comply with Section 42.006.
Sec. 11A.159. LIABILITY OF MANAGEMENT COMPANY. (a) A
management company that provides management services to a public
charter district is liable for damages incurred by the state or a
school district as a result of the failure of the company to comply
with its contractual or other legal obligation to provide services
to the district.
(b) On request of the commissioner, the attorney general may
bring suit on behalf of the state against a management company
liable under Subsection (a) for:
(1) damages, including any state funding received by
the company and any consequential damages suffered by the state;
(2) injunctive relief; or
(3) any other equitable remedy determined to be
appropriate by the court.
(c) This section is cumulative of all other remedies and
does not affect:
(1) the liability of a management company to the
charter holder; or
(2) the liability of a charter holder, a member of the
governing body of a charter holder, or a member of the governing
body of a public charter district to the state.
Sec. 11A.160. LOANS FROM MANAGEMENT COMPANY PROHIBITED.
(a) The charter holder or the governing body of a public charter
district may not accept a loan from a management company that has a
contract to provide management services to:
(1) the district; or
(2) another public charter district that operates
under a charter granted to the charter holder.
(b) A charter holder or the governing body of a public
charter district that accepts a loan from a management company may
not enter into a contract with that management company to provide
management services to the district.
Sec. 11A.161. CONTRACT FOR MANAGEMENT SERVICES. Any
contract, including a contract renewal, between a public charter
district and a management company proposing to provide management
services to the district must require the management company to
maintain all records related to the management services separately
from any other records of the management company.
Sec. 11A.162. CERTAIN MANAGEMENT SERVICES CONTRACTS
PROHIBITED. The commissioner may prohibit, deny renewal of,
suspend, or revoke a contract between a public charter district and
a management company providing management services to the district
if the commissioner determines that the management company has:
(1) failed to provide educational or related services
in compliance with the company's contractual or other legal
obligation to any public charter district in this state or to any
other similar entity in another state;
(2) failed to protect the health, safety, or welfare
of the students enrolled at a public charter district served by the
company;
(3) violated this chapter or a rule adopted under this
chapter; or
(4) otherwise failed to comply with any contractual or
other legal obligation to provide services to the district.
[Sections 11A.163-11A.200 reserved for expansion]
SUBCHAPTER E. FUNDING AND FINANCIAL OPERATIONS
Sec. 11A.201. STATE FUNDING. (a) To the extent consistent
with Subsection (c), a charter holder is entitled to receive for the
public charter district funding under Chapter 42 as if the public
charter district were a school district without a local share for
purposes of Section 42.253 and without any local revenue ("LR") for
purposes of Section 42.302. In determining funding for a public
charter district, adjustments under Sections 42.102, 42.103, and
42.105 and the district enrichment tax rate ("DTR") under Section
42.302 are based on the average adjustment and average district
enrichment tax rate for the state.
(a-1) Notwithstanding Subsection (a), an entity granted a
charter under Section 11A.1041 is entitled to receive funding for
each student in weighted average daily attendance in an amount
equal to the greater of the amount determined under Subsection (a)
or the amount to which the entity was entitled for the 2003-2004 or
2004-2005 school year, as determined by the commissioner. A
determination of the commissioner under this subsection is final
and not subject to appeal. This subsection expires September 1,
2013.
(b) To the extent consistent with Subsection (c), a public
charter district is entitled to funds that are available to school
districts from the agency or the commissioner in the form of grants
or other discretionary funding unless the statute authorizing the
funding explicitly provides that a public charter district is not
entitled to the funding.
(c) A charter holder is entitled to receive for a public
charter district funding under this section only if the holder:
(1) provides information for the Public Education
Information Management System (PEIMS) as required by this chapter;
(2) submits to the commissioner appropriate fiscal and
financial records as required by this chapter and the commissioner;
and
(3) receives an annual unqualified opinion in the
standard report filed pursuant to Section 11A.210.
(d) The commissioner shall suspend the funding of a charter
holder that fails to comply with Subsection (c) until the
commissioner determines that the charter holder is in compliance or
has cured any noncompliance and has adopted adequate procedures to
prevent future noncompliance.
(e) The commissioner may adopt rules to provide and account
for state funding of public charter districts under this section. A
rule adopted under this section may be similar to a provision of
this code that is not similar to Section 11A.052(b) if the
commissioner determines that the rule is related to financing of
public charter districts and is necessary or prudent to provide or
account for state funds.
Sec. 11A.2011. ADDITIONAL STATE AID FOR CERTAIN STAFF
SALARIES. (a) This section applies only to a charter holder that
on January 1, 2005:
(1) operated an open-enrollment charter school under
former Subchapter D, Chapter 12; and
(2) participated in the program under Chapter 1579,
Insurance Code.
(b) In addition to any amounts to which a charter holder is
entitled under this chapter, a charter holder is entitled to state
aid in an amount, as determined by the commissioner, equal to the
sum of:
(1) the product of $1,000 multiplied by the number of
the following employees employed by the charter holder at a public
charter district:
(A) classroom teachers, full-time librarians,
and full-time counselors certified under Subchapter B, Chapter 21;
and
(B) full-time school nurses appropriately
licensed under Chapter 301, Occupations Code;
(2) the product of $500 multiplied by the number of
full-time public charter district employees, other than
administrators or employees described by Subdivision (1); and
(3) the product of $250 multiplied by the number of
part-time public charter district employees.
Sec. 11A.202. INSTRUCTIONAL FACILITIES ALLOTMENTS. (a) In
this section, "instructional facility" has the meaning assigned by
Section 46.001.
(b) A charter holder is initially eligible for
instructional facilities allotments in accordance with this
section if:
(1) any campus of a public charter district for which
the charter holder has been granted a license has for two
consecutive school years been rated exemplary or recognized under
Subchapter D, Chapter 39, or has performed at a comparable level, as
determined by the commissioner for purposes of this section; and
(2) on the most recent audit of the financial
operations of the district conducted pursuant to Section 11A.210,
the district has satisfied generally accepted accounting standards
of fiscal management as evidenced by an unqualified opinion in the
standard report issued and filed pursuant to Section 11A.210.
(c) Once a public charter district satisfies the initial
eligibility requirements under Subsection (b) and receives an
allotment under this section, the district continues to remain
eligible until the district receives an accountability rating of
unacceptable under Subchapter D, Chapter 39, at which point the
district is again subject to the eligibility requirements of
Subsection (b).
(d) The commissioner annually shall review the eligibility
of a public charter district campus for purposes of this section.
(e) Except as otherwise provided by this section, a charter
holder is entitled to an annual allotment in an amount determined by
the commissioner, not to exceed $1,000 or a different amount
provided by appropriation, for each student in average daily
attendance during the preceding year at a campus of a public charter
district for which the charter holder has been granted a charter
that is eligible for an allotment under this section.
(f) A charter holder who receives funds under this section
may use the funds only to:
(1) purchase real property on which to construct an
instructional facility for a public charter district campus for
which the funds were paid under Subsection (e);
(2) purchase, lease, construct, expand, or renovate
instructional facilities for a public charter district campus for
which the funds were paid under Subsection (e);
(3) pay debt service in connection with instructional
facilities purchased or improved for a campus of the public charter
district that meets the requirements under Subsection (b); or
(4) maintain and operate public charter district
instructional facilities.
(g) A decision of the commissioner under Subsection (e) is
final and may not be appealed.
(h) The commissioner shall by rule establish procedures to
ensure that funds a charter holder claims to be using for purposes
of Subsection (f)(3) are used only for that purpose.
Sec. 11A.203. STATUS AND USE OF FUNDS. (a) Funds received
under Section 11A.201 or 11A.202 by a charter holder:
(1) are considered to be public funds for all purposes
under state law;
(2) are held in trust by the charter holder for the
benefit of this state and the students of the public charter
district;
(3) may be used only for a purpose for which a school
may use local funds under Section 45.105(c) in the case of funds
received under Section 11A.201, and may be used only for a purpose
specified under Section 11A.202(f) in the case of funds received
under Section 11A.202; and
(4) pending their use, must be deposited into a bank,
as defined by Section 45.201, with which the charter holder has
entered into a depository contract under Section 11A.204.
(b) Funds deposited under Subsection (a)(4) may be directly
deposited into an account controlled by a bond trustee acting for
the charter holder pursuant to a bond indenture agreement requiring
direct deposit.
(c) The commissioner shall adopt rules for identifying
public funds in accordance with Subsection (a).
(d) The commissioner may bring an action in district court
in Travis County for injunctive or other relief to enforce this
section. In identifying public funds held by a charter holder, the
court shall use the criteria adopted by the commissioner under
Subsection (c). Except as otherwise provided by this subsection,
the court shall enter any order under this subsection concerning
public funds held by the charter holder necessary to best serve the
interests of the students of a public charter district. In the case
of a public charter district that has ceased to operate, the court
shall enter any order under this subsection concerning public funds
held by the charter holder necessary to best serve the interests of
this state.
Sec. 11A.204. DEPOSITORY CONTRACT; BOND. (a) Each bank
selected as a school depository and the charter holder shall enter
into a depository contract, bond, or other necessary instrument
setting forth the duties and agreements pertaining to the
depository, in a form and with the content prescribed by the State
Board of Education.
(b) The depository bank shall attach to the contract and
file with the charter holder a bond in an initial amount equal to
the estimated highest daily balance, determined by the charter
holder, of all deposits that the charter holder will have in the
depository during the term of the contract, less any applicable
Federal Deposit Insurance Corporation insurance. The bond must be
payable to the charter holder and must be signed by the depository
bank and by a surety company authorized to engage in business in
this state. The depository bank shall increase the amount of the
bond if the charter holder determines the increase is necessary to
adequately protect the funds of the charter holder deposited with
the depository bank.
(c) The bond shall be conditioned on:
(1) the faithful performance of all duties and
obligations imposed by law on the depository;
(2) the payment on presentation of all checks or
drafts on order of the charter holder, in accordance with its orders
entered by the charter holder according to law;
(3) the payment on demand of any demand deposit in the
depository;
(4) the payment, after the expiration of the period of
notice required, of any time deposit in the depository;
(5) the faithful keeping of school funds by the
depository and the accounting for the funds according to law; and
(6) the faithful paying over to the successor
depository all balances remaining in the accounts.
(d) The bond and the surety on the bond must be approved by
the charter holder. A premium on the depository bond may not be
paid out of charter holder funds related to operation of the public
charter district.
(e) The charter holder shall file a copy of the depository
contract and bond with the agency.
(f) Instead of the bond required under Subsection (b), the
depository bank may deposit or pledge, with the charter holder or
with a trustee designated by the charter holder, approved
securities, as defined by Section 45.201, in an amount sufficient
to adequately protect the funds of the charter holder deposited
with the depository bank. A depository bank may give a bond and
deposit or pledge approved securities in an aggregate amount
sufficient to adequately protect the funds of the charter holder
deposited with the depository bank. The charter holder shall
periodically designate the amount of approved securities or the
aggregate amount of the bond and approved securities necessary to
adequately protect the charter holder. The charter holder may not
designate an amount less than the balance of charter holder funds on
deposit with the depository bank from day to day, less any
applicable Federal Deposit Insurance Corporation insurance. The
depository bank may substitute approved securities on obtaining the
approval of the charter holder. For purposes of this subsection,
the approved securities are valued at their market value.
Sec. 11A.205. EFFECT OF ACCEPTING STATE FUNDING. A charter
holder who accepts state funds under Section 11A.201 or 11A.202
agrees to be subject to all requirements, prohibitions, and
sanctions authorized under this chapter.
Sec. 11A.206. PROPERTY PURCHASED OR LEASED WITH STATE
FUNDS. (a) Property purchased or leased with funds received by a
charter holder under Section 11A.201 or 11A.202:
(1) is considered to be public property for all
purposes under state law;
(2) is held in trust by the charter holder for the
benefit of this state and the students of the public charter
district; and
(3) may be used only for a purpose for which a school
district may use school district property.
(b) The commissioner shall:
(1) take possession and assume control of the property
described by Subsection (a) of a public charter district that
ceases to operate; and
(2) supervise the disposition of the property in
accordance with law.
(c) This section does not affect the priority of a security
interest in or lien on property established by a creditor in
compliance with law if the security interest or lien arose in
connection with the sale or lease of the property to the charter
holder.
(d) The commissioner shall adopt rules for identifying
public property in accordance with Subsection (a).
(e) The commissioner may bring an action in district court
in Travis County for injunctive or other relief to enforce this
section. In identifying public property held by a charter holder,
the court shall use the criteria adopted by the commissioner under
Subsection (d). Except as otherwise provided by this subsection,
the court shall enter any order under this subsection concerning
public property held by the charter holder necessary to best serve
the interests of the students of a public charter district. In the
case of a public charter district that has ceased to operate, the
court shall enter any order under this subsection concerning public
property held by the charter holder necessary to best serve the
interests of this state. The court may order title to real or
personal public property held by the charter holder transferred to
a trust established for the purpose of managing the property or may
make other disposition of the property necessary to best serve the
interests of this state.
Sec. 11A.207. USE OF MUNICIPAL FUNDS FOR PUBLIC CHARTER
DISTRICT LAND OR FACILITIES. A municipality to which a charter is
granted under this chapter may borrow funds, issue obligations, or
otherwise spend its funds to acquire land or acquire, construct,
expand, or renovate school buildings or facilities and related
improvements for its public charter district within the city limits
of the municipality in the same manner the municipality is
authorized to borrow funds, issue obligations, or otherwise spend
its funds in connection with any other public works project.
Sec. 11A.208. TEXTBOOK FUNDING. A public charter district
is entitled to funding for textbooks under Chapter 31 and is subject
to that chapter as if the public charter district were a school
district.
Sec. 11A.209. ANNUAL BUDGET. The governing body of a public
charter district shall annually adopt a budget for the district.
Sec. 11A.210. ANNUAL AUDIT. The governing body of a public
charter district shall conduct an annual audit in a manner that
complies with Section 44.008.
[Sections 11A.211-11A.250 reserved for expansion]
SUBCHAPTER F. OPERATION OF PUBLIC SCHOOL CHARTER DISTRICT
Sec. 11A.251. ADMISSION POLICY. (a) A public charter
district may not discriminate in admission policy on the basis of
sex, national origin, ethnicity, religion, disability, or
academic, artistic, or athletic ability or the district the child
would otherwise attend in accordance with this code.
(b) A public charter district admission policy may provide
for the exclusion of a student who has a documented history of a
criminal offense, a juvenile court adjudication, or discipline
problems under Subchapter A, Chapter 37.
Sec. 11A.252. ADMISSION OF STUDENTS. (a) For admission to
a public charter district campus, the governing body of the
district shall:
(1) require the applicant to complete and submit an
application not later than a reasonable deadline the district
establishes; and
(2) on receipt of more acceptable applications for
admission under this section than available positions in the
school:
(A) fill the available positions by lottery; or
(B) subject to Subsection (b), fill the available
positions in the order in which applications received before the
application deadline were received.
(b) A public charter district may fill applications for
admission under Subsection (a)(2)(B) only if the district published
a notice of the opportunity to apply for admission to the district.
A notice published under this subsection must:
(1) state the application deadline; and
(2) be published in a newspaper of general circulation
in the community in which the district campus is located not later
than the seventh day before the application deadline.
(c) A public charter district may exempt an applicant from
the requirements of Subsection (a)(2) if the applicant is:
(1) the child or grandchild of a member of the
governing body of the charter holder at the time the district's
charter was first granted;
(2) the child of an employee of the district or the
charter holder; or
(3) a sibling of a student who is enrolled in the
district.
Sec. 11A.253. STUDENT ENROLLMENT. (a) Except as provided
by Subsection (b) or as otherwise determined impracticable by the
commissioner, during a public charter district's first year of
operation, the district must have a student enrollment of at least
100 and not more than 500 at any time during the school year.
(b) A public charter district may have a student enrollment
of less than 100 if approved by the commissioner.
(c) Not later than a public charter district's third year of
operation, at least 25 percent of the district's students must be
enrolled in one or more grade levels for which assessment
instruments are administered under Section 39.023(a).
(d) The commissioner may grant a waiver from the
requirements of Subsection (c) for a public charter district that
opens a campus serving prekindergarten or kindergarten students and
agrees to:
(1) add at least one higher grade level class each
school year after opening the campus; and
(2) until the campus complies with Subsection (c),
adopt accountability measures to assess the performance of the
students not assessed under Section 39.023(a).
(e) The commissioner may grant a waiver from the
requirements of Subsection (c) for a public charter district that
was operating an open-enrollment charter school campus on January
1, 2005, serving prekindergarten, kindergarten, and first, second,
and third grade students if the public charter district:
(1) adopts one or more nationally norm-referenced
assessment instruments approved by the commissioner;
(2) administers the assessment instruments to its
second grade students at intervals and in the manner specified by
commissioner rule; and
(3) meets the applicable standards for student
performance on the assessment instruments, as determined by
commissioner rule.
(f) The commissioner shall adopt rules necessary to
implement this section.
Sec. 11A.254. TUITION AND FEES RESTRICTED. (a) A public
charter district may not charge tuition to an eligible student who
applies for admission to the district under this chapter.
(b) The governing body of a public charter district may
require a student to pay any fee that the board of trustees of a
school district may charge under Section 11.158(a). The governing
body may not require a student to pay a fee that the board of
trustees of a school district may not charge under Section
11.158(b).
Sec. 11A.255. TRANSPORTATION. A public charter district
shall provide transportation to each student attending the school
to the same extent a school district is required by law to provide
transportation to district students.
Sec. 11A.256. REMOVAL OF STUDENTS TO DISCIPLINARY
ALTERNATIVE EDUCATION PROGRAM; EXPULSION OF STUDENTS. (a) The
governing body of a public charter district shall adopt a code of
conduct for the district or for each campus in the district.
(b) The code of conduct must include:
(1) standards for student behavior, including the
types of prohibited behaviors and the possible consequences of
misbehavior; and
(2) the district's due process procedures regarding
expulsion of a student.
(c) A final decision of the governing body of a public
charter district regarding action taken under the code of conduct
may not be appealed.
(d) A public charter district may not expel a student for a
reason that is not authorized by Section 37.007 or specified in the
district's code of conduct as conduct that may result in expulsion.
(e) Section 37.002 does not apply to a public charter
district except to the extent specified by the governing body of the
public charter district in the district's code of conduct.
[Sections 11A.257-11A.300 reserved for expansion]
SUBCHAPTER G. PUBLIC CHARTER DISTRICT EMPLOYEES
Sec. 11A.301. MINIMUM TEACHER QUALIFICATIONS. Except as
otherwise required by this chapter, a person employed as a teacher
by a public charter district must hold a high school diploma.
Sec. 11A.302. NOTICE OF PROFESSIONAL EMPLOYEE
QUALIFICATIONS. (a) Each public charter district shall provide to
the parent or guardian of each student enrolled at a campus in the
district written notice of the qualifications of each professional
employee, including each teacher, employed at the campus.
(b) The notice must include:
(1) any professional or educational degree held by the
employee;
(2) a statement of any certification under Subchapter
B, Chapter 21, held by the employee; and
(3) any relevant experience of the employee.
Sec. 11A.303. COLLECTION OF FINGERPRINTS REQUIRED. The
governing body of a public charter district shall obtain a complete
set of fingerprints from each person described by Section
21.0032(a).
Sec. 11A.304. CRIMINAL HISTORY AND DISCIPLINARY HISTORY OF
CERTAIN APPLICANTS. A public charter district must comply with
Section 21.0032 before employing or otherwise securing the services
of a person as a teacher, teacher intern or trainee, librarian,
educational aide, administrator, or counselor, regardless of
whether the applicant is certified under Subchapter B, Chapter 21.
Sec. 11A.305. MEMBERSHIP IN TEACHER RETIREMENT SYSTEM OF
TEXAS. (a) An employee of a public charter district who qualifies
for membership in the Teacher Retirement System of Texas shall be
covered under the system to the same extent a qualified employee of
a school district is covered.
(b) For each employee of a public charter district covered
under the system, the public charter district is responsible for
making any contribution that otherwise would be the legal
responsibility of a school district, and the state is responsible
for making contributions to the same extent it would be legally
responsible if the employee were a school district employee.
Sec. 11A.306. WAGE INCREASE FOR CERTAIN PROFESSIONAL STAFF.
(a) This section applies only to a charter holder that on January
1, 2005:
(1) operated an open-enrollment charter school under
former Subchapter D, Chapter 12; and
(2) participated in the program under Chapter 1579,
Insurance Code.
(b) Using state funds received by the charter holder for
that purpose under Section 11A.2011, a charter holder each school
year shall pay the following employees employed by the charter
holder at a public charter district an amount at least equal to:
(1) $1,000 for:
(A) classroom teachers, full-time librarians,
and full-time counselors certified under Subchapter B, Chapter 21;
and
(B) full-time school nurses appropriately
licensed under Chapter 301, Occupations Code;
(2) $500 for full-time public charter district
employees, other than administrators or employees described by
Subdivision (1); and
(3) $250 for part-time public charter district
employees.
(c) A payment under this section is in addition to wages the
charter holder would otherwise pay the employee during the school
year.
[Sections 11A.307-11A.350 reserved for expansion]
SUBCHAPTER H. POWERS AND DUTIES OF COMMISSIONER
Sec. 11A.351. AUDIT. (a) To the extent consistent with
this section, the commissioner may audit the records of:
(1) a public charter district or campus;
(2) a charter holder; and
(3) a management company.
(b) An audit under Subsection (a) must be limited to matters
directly related to the management or operation of a public charter
district, including any financial, student, and administrative
records.
(c) Unless the commissioner has specific cause to conduct an
additional audit, the commissioner may not conduct more than one
on-site audit of a public charter district under this section
during any fiscal year, including any audit of financial, student,
and administrative records. For purposes of this subsection, an
audit of a charter holder or management company associated with a
public charter district is not considered an audit of the district.
Sec. 11A.352. SUBPOENA. (a) The commissioner may issue a
subpoena to compel the attendance and testimony of a witness or the
production of materials relevant to an audit or investigation under
this chapter.
(b) A subpoena may be issued throughout the state and may be
served by any person designated by the commissioner.
(c) If a person fails to comply with a subpoena issued under
this section, the commissioner, acting through the attorney
general, may file suit to enforce the subpoena in a district court
in Travis County or in the county in which the audit or
investigation is conducted. The court shall order compliance with
the subpoena if the court finds that good cause exists to issue the
subpoena.
(d) This section expires September 1, 2007.
Sec. 11A.353. SANCTIONS. (a) The commissioner shall take
any of the actions described by Subsection (b) or by Section
39.131(a), to the extent the commissioner determines necessary, if
a public charter district, as determined by a report issued under
Section 39.076(b):
(1) commits a material violation of the district's
charter;
(2) fails to satisfy generally accepted accounting
standards of fiscal management; or
(3) fails to comply with this chapter or another
applicable rule or law.
(b) The commissioner may temporarily withhold funding,
suspend the authority of a public charter district to operate, or
take any other reasonable action the commissioner determines
necessary to protect the health, safety, or welfare of students
enrolled at a district campus based on evidence that conditions at
the district campus present a danger to the health, safety, or
welfare of the students.
(c) After the commissioner acts under Subsection (b), the
public charter district may not receive funding and may not resume
operating until a determination is made that:
(1) despite initial evidence, the conditions at the
district campus do not present a danger of material harm to the
health, safety, or welfare of students; or
(2) the conditions at the district campus that
presented a danger of material harm to the health, safety, or
welfare of students have been corrected.
(d) Not later than the third business day after the date the
commissioner acts under Subsection (b), the commissioner shall
provide the charter holder an opportunity for a hearing. This
subsection does not apply to an action taken by the commissioner
under Chapter 39.
(e) Immediately after a hearing under Subsection (d), the
commissioner must cease the action under Subsection (b) or initiate
action under Section 11A.108.
Sec. 11A.3531. SUPERVISION OF ADMINISTRATION OF CERTAIN
ASSESSMENT INSTRUMENTS. (a) Using funds appropriated for the
Foundation School Program, the commissioner 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 and adopt and implement a program for supervising
the administration of assessment instruments under Section 39.023
during the 2005-2006 school year at an open-enrollment charter
school, other than a school operated by an entity described by
Section 11A.1041(a)(2), (3), or (4), at which less than 25 percent
of all students enrolled at the school and administered an
assessment instrument under Section 39.023(a), (c), or (l)
performed satisfactorily on:
(1) the assessment instrument in mathematics, as
determined by the school's assessment instrument results for the
2004-2005 school year; or
(2) the assessment instrument in reading or English
language arts, as applicable, as determined by the school's
assessment instrument results for the 2004-2005 school year.
(b) The program adopted under Subsection (a) must be
designed to:
(1) ensure that the location at which an assessment
instrument is administered is secure and under the supervision of
persons who do not have any interest in the results of the
assessment instrument; and
(2) provide direct supervision of:
(A) the transportation of the assessment
instrument materials to and from the location at which the
instrument is administered; and
(B) the administration of the assessment
instrument to students.
(c) The commissioner may adopt rules necessary to
administer this section and may take any action that the
commissioner determines necessary to ensure the integrity of the
results of an assessment instrument administered at an
open-enrollment charter school described by Subsection (a).
(d) After deducting the amount withheld under Subsection
(a) from the total amount appropriated for the Foundation School
Program, the commissioner 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) An open-enrollment charter school's failure to fully
cooperate with the commissioner under this section is sufficient
grounds for revocation of the district's charter, as determined by
the commissioner.
(f) This section expires September 1, 2006.
Sec. 11A.354. CONSULTATION WITH CHARTER HOLDERS. The
commissioner shall periodically consult with representatives of
charter holders regarding the duties and mission of the agency
relating to the operation of public charter districts. The
commissioner shall determine the frequency of the consultations.
Sec. 11A.355. EFFECT ON COMMISSIONER'S AUTHORITY. Nothing
in this chapter may be construed to limit the commissioner's
authority under Chapter 39.
Sec. 11A.356. RULES. The commissioner may adopt rules for
the administration of this chapter.
[Sections 11A.357-11A.400 reserved for expansion]
SUBCHAPTER I. BLUE RIBBON CHARTER CAMPUS PILOT PROGRAM
Sec. 11A.401. AUTHORIZATION. (a) In this section,
"eligible entity" means an organization that is exempt from
taxation under Section 501(a), Internal Revenue Code of 1986, as an
organization described by Section 501(c)(3) of that code.
(b) In accordance with this subchapter, the commissioner
may authorize not more than three charter holders to grant a charter
to an eligible entity to operate a blue ribbon charter campus if:
(1) the charter holder proposes to grant the blue
ribbon charter to replicate a distinctive education program;
(2) the charter holder has demonstrated the ability to
replicate the education program;
(3) the education program has been implemented by the
charter holder for at least seven school years; and
(4) the charter school in which the charter holder has
implemented the program has been rated recognized or exemplary
under Section 39.072 for at least five school years, including the
two school years preceding the proposed issuance of the blue ribbon
charter.
(b-1) An eligible entity that assumed operation of an
existing charter school program during the seven years preceding
the proposed authorization under Subsection (b) may be authorized
to grant a blue ribbon charter under Subsection (b) if:
(1) the performance level of the program at a campus
before and after the entity assumed operation of the program meets
the qualifications described by Subsection (b); and
(2) the entity has met the qualifications described by
Subsection (b) since assuming operation of the program.
(c) A charter holder may grant a blue ribbon charter only to
an applicant that meets any financial, governing, and operational
standards adopted by the commissioner under this subchapter.
(d) A charter holder may grant not more than two blue ribbon
charters under this subchapter.
Sec. 11A.402. APPLICABILITY OF CERTAIN LAWS. (a) A blue
ribbon charter campus is considered a public charter district
campus for purposes of state and federal law.
(b) A blue ribbon charter granted under this subchapter is
not considered for purposes of the limit on the number of public
charter districts imposed by Section 11A.002.
Sec. 11A.403. RELATIONSHIP BETWEEN CHARTER HOLDER AND BLUE
RIBBON CHARTER CAMPUS. (a) The governing body of the public
charter district authorizing a blue ribbon charter is responsible
for the management and operation of the campus operated under a
blue ribbon charter. A blue ribbon charter campus is subject to the
rules and policies of the governing body of the charter holder that
granted the blue ribbon charter.
(b) For purposes of academic and financial accountability
and all other purposes under this chapter and Chapter 39, a blue
ribbon charter campus is considered a campus of the public charter
district operated by the charter holder that granted the blue
ribbon charter.
(c) A charter holder is entitled to receive funding for a
blue ribbon charter campus as if the blue ribbon charter campus were
a campus of the public charter district operated by the charter
holder.
Sec. 11A.404. APPLICATION FOR AUTHORIZATION. (a) The
commissioner by rule shall adopt an application form and procedures
for a charter holder to apply for authorization to grant a blue
ribbon charter to an eligible entity under this subchapter.
(b) The application must specify:
(1) the criteria that will be used to grant blue ribbon
charters;
(2) procedures for governance and management of
campuses operating under a blue ribbon charter; and
(3) the performance standard by which continuation of
a blue ribbon charter will be determined.
(c) A determination by the commissioner regarding an
application under this section is final and may not be appealed.
Sec. 11A.405. REVOCATION OF AUTHORIZATION. (a) The
commissioner may revoke a charter holder's authorization to grant a
blue ribbon charter or operate a campus granted a blue ribbon
charter if the commissioner determines that the purposes of this
subchapter are not being satisfied.
(b) On revocation of a charter holder's authority under this
section, the charter holder shall:
(1) operate a campus granted a blue ribbon charter as a
standard campus of the charter holder under this chapter; or
(2) close the campus effective at the end of the school
year in which the commissioner revokes the authorization.
Sec. 11A.406. CONTENT. (a) Each blue ribbon charter
granted under this subchapter must:
(1) describe the educational program to be offered,
which may be a general or specialized education program;
(2) provide that continuation of the charter is
contingent on satisfactory student performance under Subchapter B,
Chapter 39, and on compliance with other applicable accountability
provisions under Chapter 39;
(3) specify any basis, in addition to a basis
specified by this subchapter, on which the charter may be placed on
probation or revoked;
(4) prohibit discrimination in admission on the basis
of national origin, ethnicity, race, religion, or disability;
(5) describe the governing structure of the blue
ribbon charter campus;
(6) specify any procedure or requirement, in addition
to those under Chapter 38, that the campus will follow to ensure the
health and safety of students and employees; and
(7) describe the manner in which the campus and
charter holder granting the blue ribbon charter will comply with
financial and operational requirements, including requirements
related to the Public Education Information Management System
(PEIMS) under Section 11A.158 and the audit requirements under
Section 11A.210.
(b) A charter holder may reserve the right to approve
contracts, governance alterations, personnel decisions, and other
matters affecting the operation of the blue ribbon charter campus.
(c) A blue ribbon charter must specify the basis and
procedure to be used by the charter holder for placing the blue
ribbon charter campus on probation or revoking the charter, which
must include an opportunity for an informal review of the blue
ribbon charter campus and governing body of the campus by the
charter holder. A charter holder's decision to place on probation
or revoke a blue ribbon charter is final and may not be appealed.
Sec. 11A.407. FORM. A blue ribbon charter issued under this
subchapter must be in the form and substance of a written contract
signed by the president or equivalent officer of the governing body
of the charter holder granting the blue ribbon charter and the
president or equivalent officer of the governing body of the
eligible entity to which the blue ribbon charter is granted.
Sec. 11A.408. REVISION. A blue ribbon charter granted
under this subchapter may be revised with the approval of the
charter holder that granted the charter.
[Sections 11A.409-11A.450 reserved for expansion]
SUBCHAPTER J. RECEIVERSHIP FOR CERTAIN OPEN-ENROLLMENT CHARTER
SCHOOLS
Sec. 11A.451. DEFINITIONS. In this subchapter:
(1) "Assets" means:
(A) public funds, as determined under Section
12.107, as that section existed on January 1, 2005; and
(B) public property, as determined under Section
12.128, as that section existed on January 1, 2005.
(2) "Records" means government records, as determined
under Section 12.1052, as that section existed on January 1, 2005.
Sec. 11A.452. APPLICABILITY. The commissioner shall
appoint a receiver under this subchapter for each open-enrollment
charter school that on June 1, 2005, was operating under a charter
issued under Subchapter D, Chapter 12, as that subchapter existed
on January 1, 2005, and:
(1) is not authorized to operate as a public charter
district under this chapter; or
(2) elects not to operate as a public charter district
under this chapter.
Sec. 11A.453. APPOINTMENT OF RECEIVER; BOND REQUIRED. (a)
The commissioner shall appoint a receiver to protect the assets and
direct the dissolution of open-enrollment charter schools subject
to this subchapter.
(b) The receiver shall execute a bond in an amount set by the
commissioner to ensure the proper performance of the receiver's
duties.
(c) Until discharged by the commissioner, the receiver
shall perform the duties that the commissioner directs to preserve
the assets and direct the dissolution of the open-enrollment
charter school under this subchapter.
Sec. 11A.454. POWERS AND DUTIES OF RECEIVER. (a) After
appointment and execution of bond under Section 11A.453, the
receiver shall take possession of:
(1) assets and records in the possession of the
open-enrollment charter school specified by the commissioner; and
(2) any Foundation School Program funds and any other
public funds received by the school's charter holder.
(b) On request of the receiver, the attorney general shall
file a suit for attachment, garnishment, or involuntary bankruptcy
and take any other action necessary for the dissolution of an
open-enrollment charter school under this subchapter.
(c) If the charter holder of an open-enrollment charter
school or an officer or employee of such a school refuses to
transfer school assets or records to a receiver under this
subsection, the receiver may ask the attorney general to petition a
court for recovery of the assets or records. If the court grants
the petition, the court shall award attorney's fees and court costs
to the state.
(d) A record described by this section is a public school
record for purposes of Section 37.10(c)(2), Penal Code.
Sec. 11A.455. DISPOSITION OF ASSETS. (a) A receiver shall
wind up the affairs of an open-enrollment charter school and,
except as provided by Subsection (b), reduce its assets to cash for
the purpose of discharging all existing liabilities and obligations
of the school. In winding up the affairs of a school, the receiver
shall cooperate in any bankruptcy proceeding affecting the school.
The receiver shall distribute any remaining balance to the
commissioner.
(b) A receiver shall offer free of charge any equipment and
supplies of an open-enrollment charter school dissolved under this
subchapter to school districts, giving priority to districts based
on the percentage of the charter school's students that reside in
the districts.
(c) The commissioner shall use money in the foundation
school fund and money received under this section to pay the costs
described by Section 11A.458 and discharge liabilities and
obligations of open-enrollment charter schools under this
subchapter. The commissioner shall deposit any remaining balance
in the foundation school fund.
Sec. 11A.456. DISPOSITION OF RECORDS. (a) The records of
an open-enrollment charter school subject to this subchapter shall
be transferred in the manner specified by the commissioner to a
custodian designated by the commissioner. The commissioner may
designate any appropriate entity to serve as custodian of records,
including the agency, a regional education service center, or a
school district. In designating a custodian, the commissioner
shall ensure that the transferred records, including student and
personnel records, are transferred to a custodian capable of:
(1) maintaining the records;
(2) making the records readily accessible to students,
parents, former school employees, and other persons entitled to
access; and
(3) complying with applicable state or federal law
restricting access to the records.
(b) The commissioner is entitled to access to any records
transferred to a custodian under this section as the commissioner
determines necessary for auditing, investigative, or monitoring
purposes.
Sec. 11A.457. LIABILITY. A receiver is not personally
liable for actions taken by the receiver under this subchapter.
Sec. 11A.458. COSTS OF RECEIVERSHIP. The commissioner may
authorize reimbursement of reasonable costs related to the
receivership, including:
(1) payment of fees to the receiver for the receiver's
services; and
(2) payment of fees to attorneys, accountants, or any
other person that provides goods or services necessary to the
operation of the receivership.
Sec. 11A.459. EXEMPTION FROM COMPETITIVE BIDDING. The
competitive bidding requirements of this code and the contracting
requirements of Chapter 2155, Government Code, do not apply to the
appointment of a receiver, attorney, accountant, or other person
appointed under this subchapter.
SECTION 4.03. Subchapter D, Chapter 12, Education Code, is
amended by adding Section 12.1058 to read as follows:
Sec. 12.1058. APPLICABILITY OF PUBLIC CHARTER DISTRICT
PROVISIONS. (a) An open-enrollment charter school is subject to
Sections 11A.201, 11A.204, 11A.205, 11A.206, 11A.210, 11A.303,
11A.304, 11A.352, 21.0032, and 21.058.
(b) The commissioner may bring an action for injunctive or
other relief as provided by Section 11A.203(d) to enforce Section
12.107.
(c) For purposes of this section, a reference in a law
described by this section to a public charter district means an
open-enrollment charter school.
SECTION 4.04. Sections 12.152 and 12.156, Education Code,
are amended to read as follows:
Sec. 12.152. AUTHORIZATION. [(a)] In accordance with this
subchapter and Chapter 11A [Subchapter D], the State Board of
Education may grant a charter on the application of a public senior
college or university for a public [an open-enrollment] charter
district [school] to operate on the campus of the public senior
college or university or in the same county in which the campus of
the public senior college or university is located.
Sec. 12.156. APPLICABILITY OF CERTAIN PROVISIONS. (a)
Except as otherwise provided by this subchapter, Chapter 11A
[Subchapter D] applies to a college or university charter school as
though the college or university charter school were granted a
charter under that chapter [subchapter].
(b) A charter granted under this subchapter is not
considered for purposes of the limit on the number of public
[open-enrollment] charter districts [schools] imposed by Section
11A.002 [12.101(b)].
(c) A college or university charter school is not subject to
a prohibition, restriction, or requirement relating to:
(1) open meetings and public information under Section
11A.053;
(2) maintenance of records under Section 11A.054;
(3) purchasing and contracting under Section 11A.055;
(4) conflict of interest under Section 11A.056;
(5) nepotism under Section 11A.057;
(6) composition of governing body under Section
11A.152;
(7) restrictions on serving as a member of a governing
body or as an officer or employee under Section 11A.153;
(8) liability of members of governing body under
Section 11A.154;
(9) training for members of governing body under
Section 11A.155;
(10) bylaws and annual reports under Section 11A.156;
(11) quarterly financial reports under Section
11A.157; and
(12) depository bond and security requirements under
Section 11A.204.
(d) A college or university charter school and the governing
body of the school are subject to regulations and procedures that
govern a public senior college or university relating to open
meetings, records retention, purchasing, contracting, conflicts of
interest, and nepotism.
SECTION 4.05. Section 5.001, Education Code, is amended by
adding Subdivision (5-a) and amending Subdivision (6) to read as
follows:
(5-a) "Public charter campus" means a campus operated
by a public charter district.
(6) "Public charter district [Open-enrollment charter
school]" means a public school authorized by [that has been
granted] a charter under Chapter 11A [Subchapter D, Chapter 12].
SECTION 4.06. Section 7.003, Education Code, is amended to
read as follows:
Sec. 7.003. LIMITATION ON AUTHORITY. An educational
function not specifically delegated to the agency or the board
under this code is reserved to and shall be performed by school
districts or [open-enrollment] charter schools.
SECTION 4.07. Section 7.027(b), Education Code, as added by
Chapter 201, Acts of the 78th Legislature, Regular Session, 2003,
is amended to read as follows:
(b) The board of trustees of a school district or the
governing body of a public charter district [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 4.08. Section 7.055(b)(17), Education Code, is
amended to read as follows:
(17) The commissioner shall distribute funds to public
charter districts [open-enrollment charter schools] as required
under Chapter 11A [Subchapter D, Chapter 12].
SECTION 4.09. Section 7.102(c)(9), Education Code, is
amended to read as follows:
(9) The board may grant a charter for a public charter
district [an open-enrollment charter or approve a charter revision]
as provided by Chapter 11A [Subchapter D, Chapter 12].
SECTION 4.10. Section 12.002, Education Code, is amended to
read as follows:
Sec. 12.002. CLASSES OF CHARTER. The classes of charter
under this chapter are:
(1) a home-rule school district charter as provided by
Subchapter B;
(2) a campus or campus program charter as provided by
Subchapter C; or
(3) a college or university [an open-enrollment]
charter as provided by Subchapter E [D].
SECTION 4.11. Subchapter A, Chapter 21, Education Code, is
amended by adding Section 21.0032 to read as follows:
Sec. 21.0032. CLEARANCE REQUIRED FOR CERTAIN PUBLIC CHARTER
DISTRICT PERSONNEL; APPEAL. (a) A person may not be employed by or
serve as a teacher, teacher intern or teacher trainee, librarian,
educational aide, administrator, educational diagnostician, or
counselor for a public charter district unless the person has been
cleared by the State Board for Educator Certification following a
national criminal history record review and investigation under
this section.
(b) Before or immediately after employing or securing the
services of a person described by Subsection (a), a public charter
district shall send to the State Board for Educator Certification
the person's fingerprints and social security number. The person
may be employed or serve pending action by the board.
(c) The State Board for Educator Certification shall review
and investigate the person's national criminal history record
information, educator certification discipline history in any
state, and other information in the same manner as a review or
investigation conducted regarding an initial application for
educator certification. If the board finds the person would not be
eligible for educator certification, the board shall notify the
public charter district in writing that the person may not be
employed or serve in a capacity described by Subsection (a).
(d) On receipt of written notice under Subsection (c), a
public charter district may not employ or permit the person to serve
unless the person timely submits a written appeal under this
section. The State Board for Educator Certification shall conduct
an appeal under this subsection in the same manner as an appeal
regarding the denial of an initial application for educator
certification.
SECTION 4.12. Sections 21.058(b) and (c), Education Code,
are amended to read as follows:
(b) Notwithstanding Section 21.041(b)(7), not later than
the fifth day after the date the board receives notice under Article
42.018, Code of Criminal Procedure, of the conviction of a person
described by Section 21.0032 or who holds a certificate under this
subchapter, the board shall:
(1) revoke the certificate or clearance held by the
person; and
(2) provide to the person and to any school district or
public charter district [open-enrollment charter school] employing
the person at the time of revocation written notice of:
(A) the revocation; and
(B) the basis for the revocation.
(c) A school district or public charter district
[open-enrollment charter school] that receives notice under
Subsection (b) of the revocation of a certificate issued under this
subchapter shall:
(1) immediately remove the person whose certificate
has been revoked from campus or from an administrative office, as
applicable, to prevent the person from having any contact with a
student; and
(2) as soon as practicable, terminate the employment
of the person in accordance with the person's contract and with this
subchapter.
SECTION 4.13. Sections 22.083(b)-(d), Education Code, are
amended to read as follows:
(b) A public charter district may [An open-enrollment
charter school shall] obtain from the Department of Public Safety
[any law enforcement or criminal justice agency] all criminal
history record information that relates to:
(1) a person whom the district [school] intends to
employ in any capacity; or
(2) a person who has indicated, in writing, an
intention to serve as a volunteer with the district [school].
(c) A school district, public charter district
[open-enrollment charter school], private school, regional
education service center, or shared services arrangement may obtain
from a federal or state [any] law enforcement or criminal justice
agency all criminal history record information that relates to:
(1) a volunteer or employee of the district, school,
service center, or shared services arrangement; or
(2) an employee of or applicant for employment by a
person that contracts with the district, school, service center, or
shared services arrangement to provide services, if:
(A) the employee or applicant has or will have
continuing duties related to the contracted services; and
(B) the duties are or will be performed on school
property or at another location where students are regularly
present.
(d) The superintendent of a district or the director of a
public charter district [an open-enrollment charter school],
private school, regional education service center, or shared
services arrangement shall promptly notify the State Board for
Educator Certification in writing if the person obtains or has
knowledge of information showing that an applicant for or holder of
a certificate issued under Subchapter B, Chapter 21, has a reported
criminal history.
SECTION 4.14. Section 22.084, Education Code, is amended to
read as follows:
Sec. 22.084. ACCESS TO CRIMINAL HISTORY RECORDS OF SCHOOL
BUS DRIVERS, BUS MONITORS, AND BUS AIDES. (a) Except as provided
by Subsections (c) and (d), a school district, public charter
district [open-enrollment charter school], private school,
regional education service center, or shared services arrangement
that contracts with a person for transportation services shall
obtain from the Department of Public Safety [any law enforcement or
criminal justice agency] all criminal history record information
that relates to:
(1) a person employed by the person as a bus driver; or
(2) a person the person intends to employ as a bus
driver.
(b) Except as provided by Subsections (c) and (d), a person
that contracts with a school district, public charter district
[open-enrollment charter school], private school, regional
education service center, or shared services arrangement to provide
transportation services shall submit to the district, school,
service center, or shared services arrangement the name and other
identification data required to obtain criminal history record
information of each person described by Subsection (a). If the
district, school, service center, or shared services arrangement
obtains information that a person described by Subsection (a) has
been convicted of a felony or a misdemeanor involving moral
turpitude, the district, school, service center, or shared services
arrangement shall inform the chief personnel officer of the person
with whom the district, school, service center, or shared services
arrangement has contracted, and the person may not employ that
person to drive a bus on which students are transported without the
permission of the board of trustees of the district or service
center, the governing body of the public charter district
[open-enrollment charter school], or the chief executive officer of
the private school or shared services arrangement.
(c) A commercial transportation company that contracts with
a school district, public charter district [open-enrollment
charter school], private school, regional education service
center, or shared services arrangement to provide transportation
services may obtain from a federal or state [any] law enforcement or
criminal justice agency all criminal history record information
that relates to:
(1) a person employed by the commercial transportation
company as a bus driver, bus monitor, or bus aide; or
(2) a person the commercial transportation company
intends to employ as a bus driver, bus monitor, or bus aide.
(d) If the commercial transportation company obtains
information that a person employed or to be employed by the company
has been convicted of a felony or a misdemeanor involving moral
turpitude, the company may not employ that person to drive or to
serve as a bus monitor or bus aide on a bus on which students are
transported without the permission of the board of trustees of the
district or service center, the governing body of the public
charter district [open-enrollment charter school], or the chief
executive officer of the private school or shared services
arrangement. Subsections (a) and (b) do not apply if information is
obtained as provided by Subsection (c).
SECTION 4.15. Section 22.085, Education Code, is amended to
read as follows:
Sec. 22.085. DISCHARGE OF EMPLOYEES CONVICTED OF OFFENSES.
A school district, public charter district [open-enrollment
charter school], private school, regional education service
center, or shared services arrangement may discharge an employee if
the district or school obtains information of the employee's
conviction of a felony or of a misdemeanor involving moral
turpitude that the employee did not disclose to the State Board for
Educator Certification or the district, school, service center, or
shared services arrangement. An employee discharged under this
section is considered to have been discharged for misconduct for
purposes of Section 207.044, Labor Code.
SECTION 4.16. Section 22.086, Education Code, is amended to
read as follows:
Sec. 22.086. LIABILITY FOR REPORTING OFFENSES. The State
Board for Educator Certification, a school district, a public
charter district [an open-enrollment charter school], a private
school, a regional education service center, a shared services
arrangement, or an employee of the board, district, school, service
center, or shared services arrangement is not civilly or criminally
liable for making a report required under this subchapter.
SECTION 4.17. Section 25.088, Education Code, is amended to
read as follows:
Sec. 25.088. SCHOOL ATTENDANCE OFFICER. The school
attendance officer may be selected by:
(1) the county school trustees of any county;
(2) the board of trustees of any school district or the
boards of trustees of two or more school districts jointly; or
(3) the governing body of a public charter district
[an open-enrollment charter school].
SECTION 4.18. Section 25.089(a), Education Code, is amended
to read as follows:
(a) An attendance officer may be compensated from the funds
of the county, independent school district, or public charter
district [open-enrollment charter school], as applicable.
SECTION 4.19. Section 25.090(b), Education Code, is amended
to read as follows:
(b) If the governing body of a public charter district [an
open-enrollment charter school] has not selected an attendance
officer for a district campus, the duties of attendance officer
shall be performed by the peace officers of the county in which the
campus [school] is located.
SECTION 4.20. Sections 25.093(d) and (e), Education Code,
are amended to read as follows:
(d) A fine collected under this section shall be deposited
as follows:
(1) one-half shall be deposited to the credit of the
operating fund of, as applicable:
(A) the school district in which the child
attends school;
(B) the public charter district [open-enrollment
charter school] the child attends; or
(C) the juvenile justice alternative education
program that the child has been ordered to attend; and
(2) one-half shall be deposited to the credit of:
(A) the general fund of the county, if the
complaint is filed in the justice court or the constitutional
county court; or
(B) the general fund of the municipality, if the
complaint is filed in municipal court.
(e) At the trial of any person charged with violating this
section, the attendance records of the child may be presented in
court by any authorized employee of the school district or public
charter district [open-enrollment charter school], as applicable.
SECTION 4.21. Sections 25.095(a) and (b), Education Code,
are amended to read as follows:
(a) A school district or public charter district
[open-enrollment charter school] shall notify a student's parent in
writing at the beginning of the school year that if the student is
absent from school on 10 or more days or parts of days within a
six-month period in the same school year or on three or more days or
parts of days within a four-week period:
(1) the student's parent is subject to prosecution
under Section 25.093; and
(2) the student is subject to prosecution under
Section 25.094 or to referral to a juvenile court in a county with a
population of less than 100,000 for conduct that violates that
section.
(b) A school district or public charter district shall
notify a student's parent if the student has been absent from
school, without excuse under Section 25.087, on three days or parts
of days within a four-week period. The notice must:
(1) inform the parent that:
(A) it is the parent's duty to monitor the
student's school attendance and require the student to attend
school; and
(B) the parent is subject to prosecution under
Section 25.093; and
(2) request a conference between school officials and
the parent to discuss the absences.
SECTION 4.22. Sections 25.0951(a) and (b), Education Code,
are amended to read as follows:
(a) If a student fails to attend school without excuse on 10
or more days or parts of days within a six-month period in the same
school year, a school district or public charter district shall:
(1) file a complaint against the student or the
student's parent or both in a county, justice, or municipal court
for an offense under Section 25.093 or 25.094, as appropriate, or
refer the student to a juvenile court in a county with a population
of less than 100,000 for conduct that violates Section 25.094; or
(2) refer the student to a juvenile court for conduct
indicating a need for supervision under Section 51.03(b)(2), Family
Code.
(b) If a student fails to attend school without excuse on
three or more days or parts of days within a four-week period but
does not fail to attend school for the time described by Subsection
(a), the school district or public charter district may:
(1) file a complaint against the student or the
student's parent or both in a county, justice, or municipal court
for an offense under Section 25.093 or 25.094, as appropriate, or
refer the student to a juvenile court in a county with a population
of less than 100,000 for conduct that violates Section 25.094; or
(2) refer the student to a juvenile court for conduct
indicating a need for supervision under Section 51.03(b)(2), Family
Code.
SECTION 4.23. Section 26.006(c), Education Code, is amended
to read as follows:
(c) A student's parent is entitled to request that the
school district or public charter district [open-enrollment
charter school] the student attends allow the student to take home
any textbook used by the student. Subject to the availability of a
textbook, the school district or public charter district [or
school] shall honor the request. A student who takes home a
textbook must return the textbook to school at the beginning of the
next school day if requested to do so by the student's teacher. In
this subsection, "textbook" has the meaning assigned by Section
31.002.
SECTION 4.24. Sections 26.0085(a), (c), (d), and (e),
Education Code, are amended to read as follows:
(a) A school district or public charter district
[open-enrollment charter school] that seeks to withhold
information from a parent who has requested public information
relating to the parent's child under Chapter 552, Government Code,
and that files suit as described by Section 552.324, Government
Code, to challenge a decision by the attorney general issued under
Subchapter G, Chapter 552, Government Code, must bring the suit not
later than the 30th calendar day after the date the school district
or public charter district [open-enrollment charter school]
receives the decision of the attorney general being challenged.
(c) Notwithstanding any other law, a school district or
public charter district [open-enrollment charter school] may not
appeal the decision of a court in a suit filed under Subsection (a).
This subsection does not affect the right of a parent to appeal the
decision.
(d) If the school district or public charter district
[open-enrollment charter school] does not bring suit within the
period established by Subsection (a), the school district or public
charter district [open-enrollment charter school] shall comply
with the decision of the attorney general.
(e) A school district or public charter district
[open-enrollment charter school] that receives a request from a
parent for public information relating to the parent's child shall
comply with Chapter 552, Government Code. If an earlier deadline
for bringing suit is established under Chapter 552, Government
Code, Subsection (a) does not apply. This section does not affect
the earlier deadline for purposes of Section 552.353(b)(3),
Government Code, [532.353(b)(3)] for a suit brought by an officer
for public information.
SECTION 4.25. Section 28.0211(j), Education Code, is
amended to read as follows:
(j) A school district [or open-enrollment charter school]
shall provide students required to attend accelerated programs
under this section with transportation to those programs if the
programs occur outside of regular school hours.
SECTION 4.26. Section 29.010(f), Education Code, is amended
to read as follows:
(f) This section does not create an obligation for or impose
a requirement on a school district [or open-enrollment charter
school] that is not also created or imposed under another state law
or a federal law.
SECTION 4.27. Sections 29.012(a) and (c), Education Code,
are amended to read as follows:
(a) Except as provided by Subsection (b)(2), not later than
the third day after the date a person 22 years of age or younger is
placed in a residential facility, the residential facility shall:
(1) if the person is three years of age or older,
notify the school district in which the facility is located, unless
the facility is a public charter district [an open-enrollment
charter school]; or
(2) if the person is younger than three years of age,
notify a local early intervention program in the area in which the
facility is located.
(c) For purposes of enrollment in a school, a person who
resides in a residential facility is considered a resident of the
school district or geographical area served by the public charter
district campus [open-enrollment charter school] in which the
facility is located.
SECTION 4.28. Sections 29.062(c)-(e), Education Code, are
amended to read as follows:
(c) Not later than the 30th day after the date of an on-site
monitoring inspection, the agency shall report its findings to the
school district [or open-enrollment charter school] and to the
division of accreditation.
(d) The agency shall notify a school district [or
open-enrollment charter school] found in noncompliance in writing,
not later than the 30th day after the date of the on-site
monitoring. The district [or open-enrollment charter school] shall
take immediate corrective action.
(e) If a school district [or open-enrollment charter
school] fails to satisfy appropriate standards adopted by the
commissioner for purposes of Subsection (a), the agency shall apply
sanctions, which may include the removal of accreditation, loss of
foundation school funds, or both.
SECTION 4.29. Sections 29.087(a)-(c), (e), (k), and (l),
Education Code, are amended to read as follows:
(a) The agency shall develop a process by which a school
district or public charter district [open-enrollment charter
school] may apply to the commissioner for authority to operate a
program to prepare eligible students to take a high school
equivalency examination.
(b) Any school district or public charter district
[open-enrollment charter school] may apply for authorization to
operate a program under this section. As part of the application
process, the commissioner shall require a school district or public
charter district [or school] to provide information regarding the
operation of any similar program during the preceding five years.
(b-1) A school district or public charter district
[open-enrollment charter school] authorized by the commissioner on
or before August 31, 2003, to operate a program under this section
may continue to operate that program in accordance with this
section.
(c) A school district or public charter district
[open-enrollment charter school] may not increase enrollment of
students in a program authorized by this section by more than five
percent of the number of students enrolled in the similar program
operated by the school district or public charter district [or
school] during the 2000-2001 school year.
(e) A school district or public charter district
[open-enrollment charter school] shall inform each student who has
completed a program authorized by this section of the time and place
at which the student may take the high school equivalency
examination. Notwithstanding any provision of this section, a
student may not take the high school equivalency examination except
as authorized by Section 7.111.
(k) The board of trustees of a school district or the
governing body [board] of a public charter district [an
open-enrollment charter school] shall:
(1) hold a public hearing concerning the proposed
application of the school district or public charter district [or
school] before applying to operate a program authorized by this
section; and
(2) subsequently hold a public hearing annually to
review the performance of the program.
(l) The commissioner may revoke a school district's or
public charter district's [open-enrollment charter school's]
authorization under this section after consideration of relevant
factors, including performance of students participating in the
school district's or public charter district's [or school's]
program on assessment instruments required under Chapter 39, the
percentage of students participating in the school district's or
public charter district's [or school's] program who complete the
program and perform successfully on the high school equivalency
examination, and other criteria adopted by the commissioner. A
decision by the commissioner under this subsection is final and may
not be appealed.
SECTION 4.30. Sections 29.155(a)-(d), (i), and (j),
Education Code, are amended to read as follows:
(a) From amounts appropriated for the purposes of this
section, the commissioner may make grants to school districts and
public charter districts [open-enrollment charter schools] to
implement or expand kindergarten and prekindergarten programs by:
(1) operating an existing half-day kindergarten or
prekindergarten program on a full-day basis; or
(2) implementing a prekindergarten program at a campus
that does not have a prekindergarten program.
(b) A school district or public charter district
[open-enrollment charter school] may use funds received under this
section to employ teachers and other personnel for a kindergarten
or prekindergarten program and acquire curriculum materials or
equipment, including computers, for use in kindergarten and
prekindergarten programs.
(c) To be eligible for a grant under this section, a school
district or public charter district [open-enrollment charter
school] must apply to the commissioner in the manner and within the
time prescribed by the commissioner.
(d) In awarding grants under this section, the commissioner
shall give priority to districts and public charter districts
[open-enrollment charter schools] in which the level of performance
of students on the assessment instruments administered under
Section 39.023 to students in grade three is substantially below
the average level of performance on those assessment instruments
for all school districts in the state.
(i) In carrying out the purposes of Subsection (g), a school
district or public charter district [open-enrollment charter
school] may use funds granted to the school district or public
charter district [or school] under this section [subsection] in
contracting with another entity, including a private entity.
(j) If a school district or public charter district
[open-enrollment charter school] returns to the commissioner funds
granted under this section, the commissioner may grant those funds
to another entity, including a private entity, for the purposes of
Subsection (g).
SECTION 4.31. Section 29.905(b), Education Code, is amended
to read as follows:
(b) The agency shall make the program available to a school
on the request of the board of trustees of [or] the school district
of which the school is a part, or if the school is a public charter
district [an open-enrollment charter school], on the request of the
governing body of the public charter district [school].
SECTION 4.32. Section 31.021(b), Education Code, is amended
to read as follows:
(b) The State Board of Education shall annually set aside
out of the available school fund of the state an amount sufficient
for the board and[,] school districts[, and open-enrollment charter
schools] to purchase and distribute the necessary textbooks for the
use of the students of this state for the following school year.
The board shall determine the amount of the available school fund to
set aside for the state textbook fund based on:
(1) a report by the commissioner issued on July 1 or,
if that date is a Saturday or Sunday, on the following Monday,
stating the amount of unobligated money in the fund;
(2) the commissioner's estimate, based on textbooks
selected under Section 31.101 and on attendance reports submitted
under Section 31.103 by school districts [and open-enrollment
charter schools], of the amount of funds, in addition to funds
reported under Subdivision (1), that will be necessary for purchase
and distribution of textbooks for the following school year; and
(3) any amount the board determines should be set
aside for emergency purposes caused by unexpected increases in
attendance.
SECTION 4.33. Section 31.027(a), Education Code, is amended
to read as follows:
(a) A publisher shall provide each school district [and
open-enrollment charter school] with information that fully
describes each of the publisher's adopted textbooks. On request of
a school district, a publisher shall provide a sample copy of an
adopted textbook.
SECTION 4.34. Section 31.030, Education Code, is amended to
read as follows:
Sec. 31.030. USED TEXTBOOKS. The State Board of Education
shall adopt rules to ensure that used textbooks sold to school
districts [and open-enrollment charter schools] are not sample
copies that contain factual errors. The rules may provide for the
imposition of an administrative penalty in accordance with Section
31.151 against a seller of used textbooks who knowingly violates
this section.
SECTION 4.35. Section 31.101, Education Code, is amended to
read as follows:
Sec. 31.101. SELECTION AND PURCHASE OF TEXTBOOKS BY SCHOOL
DISTRICTS. (a) Each year, during a period established by the
State Board of Education, the board of trustees of each school
district [and the governing body of each open-enrollment charter
school] shall:
(1) for a subject in the foundation curriculum, notify
the State Board of Education of the textbooks selected by the board
of trustees [or governing body] for the following school year from
among the textbooks on the appropriate conforming or nonconforming
list; or
(2) for a subject in the enrichment curriculum:
(A) notify the State Board of Education of each
textbook selected by the board of trustees [or governing body] for
the following school year from among the textbooks on the
appropriate conforming or nonconforming list; or
(B) notify the State Board of Education that the
board of trustees [or governing body] has selected a textbook that
is not on the conforming or nonconforming list.
(b) If a school district [or open-enrollment charter
school] selects a textbook for a particular subject in the
enrichment curriculum and grade level that is not on the conforming
or nonconforming list, the state shall pay to the district [or
school] an amount equal to the lesser of:
(1) 70 percent of the cost to the district of the
textbook, multiplied by the number of textbooks the district [or
school] needs for that subject and grade level; or
(2) 70 percent of the limitation established under
Section 31.025 for a textbook for that subject and grade level,
multiplied by the number of textbooks the district [or school]
needs for that subject and grade level.
(c) A school district [or open-enrollment charter school]
that selects a textbook that is not on the conforming or
nonconforming list:
(1) is responsible for the portion of the cost of the
textbook that is not paid by the state under Subsection (b); and
(2) may use funds received from the state under
Subsection (b) only for purchasing the textbook for which the funds
were received.
(d) For a textbook that is not on the conforming or
nonconforming list, a school district [or open-enrollment charter
school] must use the textbook for the period of the review and
adoption cycle the State Board of Education has established for the
subject and grade level for which the textbook is used.
SECTION 4.36. Section 31.102(c), Education Code, is amended
to read as follows:
(c) The board of trustees of a school district [or the
governing body of an open-enrollment charter school] is the legal
custodian of textbooks purchased as provided by this chapter for
the district [or school]. The board of trustees shall distribute
textbooks to students in the manner that the board [or governing
body] determines is most effective and economical.
SECTION 4.37. Section 31.103, Education Code, is amended to
read as follows:
Sec. 31.103. TEXTBOOK REQUISITIONS. (a) Not later than
the seventh day after the first school day in April, each principal
shall report the maximum attendance for the school to the
superintendent. Not later than April 25, the superintendent of a
school district [or the chief operating officer of an
open-enrollment charter school] shall report the district's [or
school's] maximum attendance to the commissioner.
(b) A requisition for textbooks for the following school
year shall be based on the maximum attendance reports under
Subsection (a), plus an additional 10 percent, except as otherwise
provided. A school district [or open-enrollment charter school]
shall make a requisition for a textbook on the conforming or
nonconforming list through the commissioner to the state depository
designated by the publisher or as provided by State Board of
Education rule, as applicable, not later than June 1 of each year.
The designated state depository or, if the publisher or
manufacturer does not have a designated textbook depository in this
state under Section 31.151(a)(6)(B), the publisher or manufacturer
shall fill a requisition approved by the agency at any other time in
the case of an emergency. As made necessary by available funds, the
commissioner shall reduce the additional percentage of attendance
for which a district [or school] may requisition textbooks. The
commissioner may, on application of a district [or school] that is
experiencing high enrollment growth, increase the additional
percentage of attendance for which the district [or school] may
requisition textbooks.
(c) In making a requisition under this section, a school
district [or open-enrollment charter school] may requisition
textbooks on the conforming or nonconforming list for grades above
the grade level in which a student is enrolled, except that the
total quantity of textbooks requisitioned under this section may
not exceed the limit prescribed by Subsection (b).
SECTION 4.38. Sections 31.104(a), (b), and (d), Education
Code, are amended to read as follows:
(a) The board of trustees of a school district [or the
governing body of an open-enrollment charter school] may delegate
to an employee the authority to requisition, distribute, and manage
the inventory of textbooks in a manner consistent with this chapter
and rules adopted under this chapter.
(b) A school district [or open-enrollment charter school]
may order replacements for textbooks that have been lost or damaged
directly from:
(1) the textbook depository; or
(2) the textbook publisher or manufacturer if the
textbook publisher or manufacturer does not have a designated
textbook depository in this state under Section 31.151(a)(6)(B).
(d) Each student, or the student's parent or guardian, is
responsible for each textbook not returned by the student. A
student who fails to return all textbooks forfeits the right to free
textbooks until each textbook previously issued but not returned is
paid for by the student, parent, or guardian. As provided by policy
of the board of trustees [or governing body], a school district [or
open-enrollment charter school] may waive or reduce the payment
requirement if the student is from a low-income family. The
district [or school] shall allow the student to use textbooks at
school during each school day. If a textbook is not returned or
paid for, the district [or school] may withhold the student's
records. A district [or school] may not, under this subsection,
prevent a student from graduating, participating in a graduation
ceremony, or receiving a diploma.
SECTION 4.39. Section 31.105, Education Code, is amended to
read as follows:
Sec. 31.105. SALE OF TEXTBOOKS. The board of trustees of a
school district [or governing body of an open-enrollment charter
school] may sell textbooks, other than electronic textbooks, to a
student or another school at the state contract price. The district
shall send money from the sale of textbooks to the commissioner as
required by the commissioner. The commissioner shall deposit the
money in the state textbook fund.
SECTION 4.40. Section 31.106, Education Code, is amended to
read as follows:
Sec. 31.106. USE OF LOCAL FUNDS. In addition to any
textbook selected under this chapter, a school district [or
open-enrollment charter school] may use local funds to purchase any
textbooks.
SECTION 4.41. Section 31.151(a), Education Code, is amended
to read as follows:
(a) A publisher or manufacturer of textbooks:
(1) shall furnish any textbook the publisher or
manufacturer offers in this state, at a price that does not exceed
the lowest price at which the publisher offers that textbook for
adoption or sale to any state, public school, or school district in
the United States;
(2) shall automatically reduce the price of a textbook
sold for use in a school district [or open-enrollment charter
school] to the extent that the price is reduced elsewhere in the
United States;
(3) shall provide any textbook or ancillary item free
of charge in this state to the same extent that the publisher or
manufacturer provides the textbook or ancillary item free of charge
to any state, public school, or school district in the United
States;
(4) shall guarantee that each copy of a textbook sold
in this state is at least equal in quality to copies of that
textbook sold elsewhere in the United States and is free from
factual error;
(5) may not become associated or connected with,
directly or indirectly, any combination in restraint of trade in
textbooks or enter into any understanding or combination to control
prices or restrict competition in the sale of textbooks for use in
this state;
(6) shall:
(A) maintain a depository in this state or
arrange with a depository in this state to receive and fill orders
for textbooks, other than on-line textbooks or on-line textbook
components, consistent with State Board of Education rules; or
(B) deliver textbooks to a school district [or
open-enrollment charter school] without a delivery charge to the
school district[, open-enrollment charter school,] or state, if:
(i) the publisher or manufacturer does not
maintain or arrange with a depository in this state under Paragraph
(A) and the publisher's or manufacturer's textbooks and related
products are warehoused or otherwise stored less than 300 miles
from a border of this state; or
(ii) the textbooks are on-line textbooks or
on-line textbook components;
(7) shall, at the time an order for textbooks is
acknowledged, provide to school districts [or open-enrollment
charter schools] an accurate shipping date for textbooks that are
back-ordered;
(8) shall guarantee delivery of textbooks at least 10
business days before the opening day of school of the year for which
the textbooks are ordered if the textbooks are ordered by a date
specified in the sales contract; and
(9) shall submit to the State Board of Education an
affidavit certifying any textbook the publisher or manufacturer
offers in this state to be free of factual errors at the time the
publisher executes the contract required by Section 31.026.
SECTION 4.42. Section 31.201(c), Education Code, is amended
to read as follows:
(c) The State Board of Education shall adopt rules under
which a school district [or open-enrollment charter school] may
donate discontinued textbooks, other than electronic textbooks, to
a student, to an adult education program, or to a nonprofit
organization.
SECTION 4.43. Subchapter C, Chapter 32, Education Code, is
amended by adding Section 32.1011 to read as follows:
Sec. 32.1011. APPLICABILITY TO PUBLIC CHARTER DISTRICTS.
This subchapter applies to a public charter district as if the
public charter district were a school district.
SECTION 4.44. Section 32.102, Education Code, is amended to
read as follows:
Sec. 32.102. AUTHORITY. (a) As provided by this
subchapter, a school district [or open-enrollment charter school]
may transfer to a student enrolled in the district [or school]:
(1) any data processing equipment donated to the
district [or school], including equipment donated by:
(A) a private donor; or
(B) a state eleemosynary institution or a state
agency under Section 2175.128, Government Code;
(2) any equipment purchased by the district [or
school], to the extent consistent with Section 32.105; and
(3) any surplus or salvage equipment owned by the
district [or school].
(b) A school district [or open-enrollment charter school]
may accept:
(1) donations of data processing equipment for
transfer under this subchapter; and
(2) any gifts, grants, or donations of money or
services to purchase, refurbish, or repair data processing
equipment under this subchapter.
SECTION 4.45. Section 32.103, Education Code, is amended to
read as follows:
Sec. 32.103. ELIGIBILITY; PREFERENCE. (a) A student is
eligible to receive data processing equipment under this subchapter
only if the student does not otherwise have home access to data
processing equipment, as determined by the student's school
district [or open-enrollment charter school].
(b) In transferring data processing equipment to students,
a school district [or open-enrollment charter school] shall give
preference to educationally disadvantaged students.
SECTION 4.46. Section 32.104, Education Code, is amended to
read as follows:
Sec. 32.104. REQUIREMENTS FOR TRANSFER. Before
transferring data processing equipment to a student, a school
district [or open-enrollment charter school] must:
(1) adopt rules governing transfers under this
subchapter, including provisions for technical assistance to the
student by the district [or school];
(2) determine that the transfer serves a public
purpose and benefits the district [or school]; and
(3) remove from the equipment any offensive,
confidential, or proprietary information, as determined by the
district [or school].
SECTION 4.47. Section 32.105, Education Code, is amended to
read as follows:
Sec. 32.105. EXPENDITURE OF PUBLIC FUNDS. A school
district [or open-enrollment charter school] may spend public funds
to:
(1) purchase, refurbish, or repair any data processing
equipment transferred to a student under this subchapter; and
(2) store, transport, or transfer data processing
equipment under this subchapter.
SECTION 4.48. Section 32.106, Education Code, is amended to
read as follows:
Sec. 32.106. RETURN OF EQUIPMENT. (a) Except as provided
by Subsection (b), a student who receives data processing equipment
from a school district [or open-enrollment charter school] under
this subchapter shall return the equipment to the district [or
school] not later than the earliest of:
(1) five years after the date the student receives the
equipment;
(2) the date the student graduates;
(3) the date the student transfers to another school
district [or open-enrollment charter school]; or
(4) the date the student withdraws from school.
(b) Subsection (a) does not apply if, at the time the
student is required to return the data processing equipment under
that subsection, the district [or school] determines that the
equipment has no marketable value.
SECTION 4.49. Section 33.007, Education Code, is amended to
read as follows:
Sec. 33.007. COUNSELING REGARDING HIGHER EDUCATION. (a)
Each counselor at an elementary, middle, or junior high school,
including a public charter district [an open-enrollment charter
school] offering those grades, shall advise students and their
parents or guardians regarding the importance of higher education,
coursework designed to prepare students for higher education, and
financial aid availability and requirements.
(b) During the first school year a student is enrolled in a
high school or at the high school level in a public charter district
[an open-enrollment charter school], and again during a student's
senior year, a counselor shall provide information about higher
education to the student and the student's parent or guardian. The
information must include information regarding:
(1) the importance of higher education;
(2) the advantages of completing the recommended or
advanced high school program adopted under Section 28.025(a);
(3) the disadvantages of taking courses to prepare for
a high school equivalency examination relative to the benefits of
taking courses leading to a high school diploma;
(4) financial aid eligibility;
(5) instruction on how to apply for federal financial
aid;
(6) the center for financial aid information
established under Section 61.0776;
(7) the automatic admission of certain students to
general academic teaching institutions as provided by Section
51.803; and
(8) the eligibility and academic performance
requirements for the TEXAS Grant as provided by Subchapter M,
Chapter 56[, as added by Chapter 1590, Acts of the 76th Legislature,
Regular Session, 1999].
SECTION 4.50. Section 33.901, Education Code, is amended to
read as follows:
Sec. 33.901. BREAKFAST PROGRAMS. If at least 10 percent of
the students enrolled in one or more schools in a school district or
enrolled in a public charter district campus [an open-enrollment
charter school] are eligible for free or reduced-price breakfasts
under the national school breakfast program provided for by the
Child Nutrition Act of 1966 (42 U.S.C. Section 1773), the governing
body of the district or the public charter district
[open-enrollment charter school] shall participate in the program
and make the benefits of the program available to all eligible
students in the schools or campus [school].
SECTION 4.51. Section 37.007(e), Education Code, is amended
to read as follows:
(e) In accordance with 20 U.S.C. Section 7151, a local
educational agency, including a school district, home-rule school
district, or public charter district [open-enrollment charter
school], shall expel a student who brings a firearm, as defined by
18 U.S.C. Section 921, to school. The student must be expelled from
the student's regular campus for a period of at least one year,
except that:
(1) the superintendent or other chief administrative
officer of the school district or of the other local educational
agency, as defined by 20 U.S.C. Section 7801, may modify the length
of the expulsion in the case of an individual student;
(2) the district or other local educational agency
shall provide educational services to an expelled student in a
disciplinary alternative education program as provided by Section
37.008 if the student is younger than 10 years of age on the date of
expulsion; and
(3) the district or other local educational agency may
provide educational services to an expelled student who is 10 years
of age or older in a disciplinary alternative education program as
provided in Section 37.008.
SECTION 4.52. Section 37.008(j), Education Code, is amended
to read as follows:
(j) If a student placed in a disciplinary alternative
education program enrolls in another school district before the
expiration of the period of placement, the board of trustees of the
district requiring the placement shall provide to the district in
which the student enrolls, at the same time other records of the
student are provided, a copy of the placement order. The district
in which the student enrolls may continue the disciplinary
alternative education program placement under the terms of the
order or may allow the student to attend regular classes without
completing the period of placement. A school district may take any
action permitted by this subsection if:
(1) the student was placed in a disciplinary
alternative education program by a public charter district [an
open-enrollment charter school] under Section 11A.256 [12.131] and
the public charter district [school] provides to the school
district a copy of the placement order; or
(2) the student was placed in a disciplinary
alternative education program by a school district in another state
and:
(A) the out-of-state district provides to the
school district a copy of the placement order; and
(B) the grounds for the placement by the
out-of-state district are grounds for placement in the school
district in which the student is enrolling.
SECTION 4.53. Section 37.021(a)(2), Education Code, as
added by Chapter 631, Acts of the 78th Legislature, Regular
Session, 2003, is amended to read as follows:
(2) "District or school" includes an independent
school district, a home-rule school district, a campus or campus
program charter holder, or a public charter district [an
open-enrollment charter school].
SECTION 4.54. Section 39.072(c), Education Code, is amended
to read as follows:
(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 public charter district
[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.
SECTION 4.55. Section 39.131(a), Education Code, is amended
to read as follows:
(a) If a district does not satisfy the accreditation
criteria, 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 been rated as academically
unacceptable 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 a district has been rated as academically
unacceptable for a period of two years or more:
(A) 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
public charter district [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 years 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.
SECTION 4.56. Section 39.182(a), Education Code, is amended
to read as follows:
(a) Not later than December 1 of each year, the agency shall
prepare and deliver to the governor, the lieutenant governor, the
speaker of the house of representatives, each member of the
legislature, the Legislative Budget Board, and the clerks of the
standing committees of the senate and house of representatives with
primary jurisdiction over the public school system a comprehensive
report covering the preceding school year and containing:
(1) an evaluation of the achievements of the state
educational program in relation to the statutory goals for the
public education system under Section 4.002;
(2) an evaluation of the status of education in the
state as reflected by the academic excellence indicators adopted
under Section 39.051;
(3) a summary compilation of overall student
performance on academic skills assessment instruments required by
Section 39.023 with the number and percentage of students exempted
from the administration of those instruments and the basis of the
exemptions, aggregated by grade level, subject area, campus, and
district, with appropriate interpretations and analysis, and
disaggregated by race, ethnicity, gender, and socioeconomic
status;
(4) a summary compilation of overall performance of
students placed in an alternative education program established
under Section 37.008 on academic skills assessment instruments
required by Section 39.023 with the number of those students
exempted from the administration of those instruments and the basis
of the exemptions, aggregated by district, grade level, and subject
area, with appropriate interpretations and analysis, and
disaggregated by race, ethnicity, gender, and socioeconomic
status;
(5) a summary compilation of overall performance of
students at risk of dropping out of school, as defined by Section
29.081(d), on academic skills assessment instruments required by
Section 39.023 with the number of those students exempted from the
administration of those instruments and the basis of the
exemptions, aggregated by district, grade level, and subject area,
with appropriate interpretations and analysis, and disaggregated
by race, ethnicity, gender, and socioeconomic status;
(6) an evaluation of the correlation between student
grades and student performance on academic skills assessment
instruments required by Section 39.023;
(7) a statement of the dropout rate of students in
grade levels 7 through 12, expressed in the aggregate and by grade
level, and a statement of the completion rates of students for grade
levels 9 through 12;
(8) a statement of:
(A) the completion rate of students who enter
grade level 9 and graduate not more than four years later;
(B) the completion rate of students who enter
grade level 9 and graduate, including students who require more
than four years to graduate;
(C) the completion rate of students who enter
grade level 9 and not more than four years later receive a high
school equivalency certificate;
(D) the completion rate of students who enter
grade level 9 and receive a high school equivalency certificate,
including students who require more than four years to receive a
certificate; and
(E) the number and percentage of all students who
have not been accounted for under Paragraph (A), (B), (C), or (D);
(9) a statement of the projected cross-sectional and
longitudinal dropout rates for grade levels 9 through 12 for the
next five years, assuming no state action is taken to reduce the
dropout rate;
(10) a description of a systematic, measurable plan
for reducing the projected cross-sectional and longitudinal
dropout rates to five percent or less for the 1997-1998 school year;
(11) a summary of the information required by Section
29.083 regarding grade level retention of students and information
concerning:
(A) the number and percentage of students
retained; and
(B) the performance of retained students on
assessment instruments required under Section 39.023(a);
(12) information, aggregated by district type and
disaggregated by race, ethnicity, gender, and socioeconomic
status, on:
(A) the number of students placed in a
disciplinary [an] alternative education program established under
Section 37.008;
(B) the average length of a student's placement
in a disciplinary [an] alternative education program established
under Section 37.008;
(C) the academic performance of students on
assessment instruments required under Section 39.023(a) during the
year preceding and during the year following placement in a
disciplinary [an] alternative education program; and
(D) the dropout rates of students who have been
placed in a disciplinary [an] alternative education program
established under Section 37.008;
(13) a list of each school district or campus that does
not satisfy performance standards, with an explanation of the
actions taken by the commissioner to improve student performance in
the district or campus and an evaluation of the results of those
actions;
(14) an evaluation of the status of the curriculum
taught in public schools, with recommendations for legislative
changes necessary to improve or modify the curriculum required by
Section 28.002;
(15) a description of all funds received by and each
activity and expenditure of the agency;
(16) a summary and analysis of the instructional
expenditures ratios and instructional employees ratios of school
districts computed under Section 44.0071;
(17) a summary of the effect of deregulation,
including exemptions and waivers granted under Section 7.056 or
39.112;
(18) a statement of the total number and length of
reports that school districts and school district employees must
submit to the agency, identifying which reports are required by
federal statute or rule, state statute, or agency rule, and a
summary of the agency's efforts to reduce overall reporting
requirements;
(19) a list of each school district that is not in
compliance with state special education requirements, including:
(A) the period for which the district has not
been in compliance;
(B) the manner in which the agency considered the
district's failure to comply in determining the district's
accreditation status; and
(C) an explanation of the actions taken by the
commissioner to ensure compliance and an evaluation of the results
of those actions;
(20) a comparison of the performance of public charter
districts [open-enrollment charter schools] and school districts
on the academic excellence indicators specified in Section
39.051(b) and accountability measures adopted under Section
39.051(g), with a separately aggregated comparison of the
performance of public charter districts [open-enrollment charter
schools] predominantly serving students at risk of dropping out of
school, as defined by Section 29.081(d), with the performance of
school districts; and
(21) any additional information considered important
by the commissioner or the State Board of Education.
SECTION 4.57. Section 42.005(f), Education Code, is amended
to read as follows:
(f) A public charter district [An open-enrollment charter
school] is not entitled to funding based on an adjustment under
Subsection (b)(2).
SECTION 4.58. Section 42.152(c), Education Code, is amended
to read as follows:
(c) Funds allocated under this section shall be used to fund
supplemental programs and services designed to eliminate any
disparity in performance on assessment instruments administered
under Subchapter B, Chapter 39, or disparity in the rates of high
school completion between students at risk of dropping out of
school, as defined by Section 29.081, and all other students.
Specifically, the funds, other than an indirect cost allotment
established under State Board of Education rule, which may not
exceed 15 percent, may be used to meet the costs of providing a
compensatory, intensive, or accelerated instruction program under
Section 29.081 or an alternative education program established
under Section 37.008 or to support a program eligible under Title I
of the Elementary and Secondary Education Act of 1965, as provided
by Pub. L. No. 103-382 and its subsequent amendments, and by federal
regulations implementing that Act, at a campus at which at least 40
percent of the students are educationally disadvantaged. In
meeting the costs of providing a compensatory, intensive, or
accelerated instruction program under Section 29.081, a district's
compensatory education allotment shall be used for costs
supplementary to the regular education program, such as costs for
program and student evaluation, instructional materials and
equipment and other supplies required for quality instruction,
supplemental staff expenses, salary for teachers of at-risk
students, smaller class size, and individualized instruction. A
home-rule school district or a public charter district [an
open-enrollment charter school] must use funds allocated under
Subsection (a) for a purpose authorized in this subsection but is
not otherwise subject to Subchapter C, Chapter 29. Notwithstanding
any other provisions of this section:
(1) to ensure that a sufficient amount of the funds
allotted under this section are available to supplement
instructional programs and services, no more than 18 percent of the
funds allotted under this section may be used to fund disciplinary
alternative education programs established under Section 37.008;
(2) the commissioner may waive the limitations of
Subdivision (1) upon an annual petition, by a district's board and a
district's site-based decision making committee, presenting the
reason for the need to spend supplemental compensatory education
funds on disciplinary alternative education programs under Section
37.008, provided that:
(A) the district in its petition reports the
number of students in each grade level, by demographic subgroup,
not making satisfactory progress under the state's assessment
system; and
(B) the commissioner makes the waiver request
information available annually to the public on the agency's
website; and
(3) for purposes of this subsection, a program
specifically designed to serve students at risk of dropping out of
school, as defined by Section 29.081, is considered to be a program
supplemental to the regular education program, and a district may
use its compensatory education allotment for such a program.
SECTION 4.59. Section 44.008(a), Education Code, is amended
to read as follows:
(a) The board of school trustees of each school district
shall have its school district fiscal accounts audited annually at
district expense by a certified or public accountant holding a
permit from the Texas State Board of Public Accountancy. Except as
determined impracticable by the commissioner, the accountant must
have completed at least one peer-reviewed audit of a school
district, governmental entity, quasi-governmental entity, or
nonprofit corporation and received an unqualified opinion from the
peer review. The audit must be completed following the close of
each fiscal year.
SECTION 4.60. Section 46.012, Education Code, is amended to
read as follows:
Sec. 46.012. APPLICABILITY TO PUBLIC CHARTER DISTRICTS
[OPEN-ENROLLMENT CHARTER SCHOOLS]. A public charter district [An
open-enrollment charter school] is not entitled to an allotment
under this subchapter.
SECTION 4.61. Section 46.036, Education Code, is amended to
read as follows:
Sec. 46.036. APPLICABILITY TO PUBLIC CHARTER DISTRICTS
[OPEN-ENROLLMENT CHARTER SCHOOLS]. A public charter district [An
open-enrollment charter school] is not entitled to an allotment
under this subchapter.
SECTION 4.62. Section 53.02(13), Education Code, is amended
to read as follows:
(13) "Authorized charter school" means a public
charter district [an open-enrollment charter school] that holds a
charter granted under Chapter 11A [Subchapter D, Chapter 12].
SECTION 4.63. The heading to Section 53.351, Education
Code, is amended to read as follows:
Sec. 53.351. BONDS FOR AUTHORIZED [OPEN ENROLLMENT] CHARTER
SCHOOL FACILITIES.
SECTION 4.64. Sections 53.351(a), (c), (d), (f), and (g),
Education Code, are amended to read as follows:
(a) The Texas Public Finance Authority shall establish a
nonprofit corporation to issue revenue bonds on behalf of
authorized [open-enrollment] charter schools for the acquisition,
construction, repair, or renovation of educational facilities of
those schools.
(c) The corporation has all powers granted under the Texas
Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon's
Texas Civil Statutes) for the purpose of aiding authorized
[open-enrollment] charter schools in providing educational
facilities. The corporation may make expenditures from the fund
described by Subsection (e) and may solicit and accept grants for
deposit into the fund. In addition, Sections 53.131, 53.15, 53.31,
53.32, 53.331, 53.34, 53.35, 53.36(a), and 53.37-53.42 apply to and
govern the corporation and its procedures and bonds.
(d) The corporation shall adopt rules governing the
issuance of bonds on behalf of an authorized [open-enrollment]
charter school.
(f) A revenue bond issued under this section is not a debt of
the state or any state agency, political corporation, or political
subdivision of the state and is not a pledge of the faith and credit
of any of these entities. A revenue bond is payable solely from the
revenue of the authorized [open-enrollment] charter school on whose
behalf the bond is issued. A revenue bond issued under this section
must contain on its face a statement to the effect that:
(1) neither the state nor a state agency, political
corporation, or political subdivision of the state is obligated to
pay the principal of or interest on the bond; and
(2) neither the faith and credit nor the taxing power
of the state or any state agency, political corporation, or
political subdivision of the state is pledged to the payment of the
principal of or interest on the bond.
(g) An educational facility financed in whole or in part
under this section is exempt from taxation if the facility:
(1) is owned by an authorized [open-enrollment]
charter school;
(2) is held for the exclusive benefit of the school;
and
(3) is held for the exclusive use of the students,
faculty, and staff members of the school.
SECTION 4.65. Section 411.097(c), Government Code, is
amended to read as follows:
(c) A public charter district [An open-enrollment charter
school] is entitled to obtain from the department criminal history
record information maintained by the department that relates to a
person who:
(1) is a member of the governing body of the public
charter district [school], as defined by Section 11A.001 [12.1012],
Education Code; or
(2) has agreed to serve as a member of the governing
body of the public charter district [school].
SECTION 4.66. Sections 2175.128(a) and (b), Government
Code, are amended to read as follows:
(a) If a disposition of a state agency's surplus or salvage
data processing equipment is not made under Section 2175.125 or
2175.184, the state agency shall transfer the equipment to:
(1) a school district or public charter district
[open-enrollment charter school] in this state under Subchapter C,
Chapter 32, Education Code;
(2) an assistance organization specified by the school
district or public charter district; or
(3) the Texas Department of Criminal Justice.
(b) If a disposition of the surplus or salvage data
processing equipment of a state eleemosynary institution or an
institution or agency of higher education is not made under other
law, the institution or agency shall transfer the equipment to:
(1) a school district or public charter district
[open-enrollment charter school] in this state under Subchapter C,
Chapter 32, Education Code;
(2) an assistance organization specified by the school
district or public charter district; or
(3) the Texas Department of Criminal Justice.
SECTION 4.67. Section 2306.630(a), Government Code, is
amended to read as follows:
(a) Subject to Subsection (b), the following entities may
apply to receive a grant for an eligible project under this
subchapter:
(1) a private, nonprofit, tax-exempt organization
listed in Section 501(c)(3), Internal Revenue Code of 1986 (26
U.S.C. Section 501(c)(3));
(2) a public agency that operates a community-based
youth employment training program;
(3) a community housing development organization
certified by the state;
(4) an educational facility approved by the Texas
Youth Commission;
(5) a corps-based community service organization;
(6) a public charter district [an open-enrollment
charter school] approved by the State Board of Education [Texas
Education Agency]; or
(7) another entity authorized by board rule.
SECTION 4.68. Section 1575.002(6), Insurance Code, is
amended to read as follows:
(6) "Public school" means:
(A) a school district;
(B) another educational district whose employees
are members of the Teacher Retirement System of Texas;
(C) a regional education service center
established under Chapter 8, Education Code; or
(D) a public charter district [an
open-enrollment charter school] established under Chapter 11A
[Subchapter D, Chapter 12], Education Code.
SECTION 4.69. Section 1579.002(3), Insurance Code, is
amended to read as follows:
(3) "Charter school" means a public charter district
[an open-enrollment charter school] established under Chapter 11A
[Subchapter D, Chapter 12], Education Code.
SECTION 4.70. Section 140.005, Local Government Code, is
amended to read as follows:
Sec. 140.005. ANNUAL FINANCIAL STATEMENT OF SCHOOL, ROAD,
OR OTHER DISTRICT. The governing body of a school district, public
charter district [open-enrollment charter school], junior college
district, or a district or authority organized under Article III,
Section 52, or Article XVI, Section 59, of the Texas Constitution,
shall prepare an annual financial statement showing for each fund
subject to the authority of the governing body during the fiscal
year:
(1) the total receipts of the fund, itemized by source
of revenue, including taxes, assessments, service charges, grants
of state money, gifts, or other general sources from which funds are
derived;
(2) the total disbursements of the fund, itemized by
the nature of the expenditure; and
(3) the balance in the fund at the close of the fiscal
year.
SECTION 4.71. Section 140.006(c), Local Government Code, is
amended to read as follows:
(c) The presiding officer of a school district shall submit
a financial statement prepared under Section 140.005 to a daily,
weekly, or biweekly newspaper published within the boundaries of
the district. If a daily, weekly, or biweekly newspaper is not
published within the boundaries of the school district, the
financial statement shall be published in the manner provided by
Subsections (a) and (b). The financial statement of a public
charter district [an open-enrollment charter school] shall be made
available in the manner provided by Chapter 552, Government Code.
SECTION 4.72. Section 375.303(2), Local Government Code, is
amended to read as follows:
(2) "Eligible project" means a program authorized by
Section 379A.051 and a project as defined by Sections 2(11) and
4B(a)(2), Development Corporation Act of 1979 (Article 5190.6,
Vernon's Texas Civil Statutes). Notwithstanding this definition,
seeking a charter for or operating a public charter district [an
open-enrollment charter school] authorized by Chapter 11A
[Subchapter D, Chapter 12], Education Code, is [shall] not [be] an
eligible project.
SECTION 4.73. Sections 375.308(b) and (c), Local Government
Code, are amended to read as follows:
(b) An authority may not:
(1) issue bonds or notes without the prior approval of
the governing body of the municipality that created the authority;
(2) seek a charter for or operate, within the
boundaries of the authority, a public charter district [an
open-enrollment charter school] authorized by Chapter 11A
[Subchapter D, Chapter 12], Education Code; or
(3) levy ad valorem property taxes.
(c) A municipality may not seek a charter for or operate a
public charter district [an open-enrollment charter school]
authorized by Chapter 11A [Subchapter D, Chapter 12], Education
Code, within the boundaries of the authority.
SECTION 4.74. Section 541.201(15), Transportation Code, is
amended to read as follows:
(15) "School activity bus" means a bus designed to
accommodate more than 15 passengers, including the operator, that
is owned, operated, rented, or leased by a school district, county
school, public charter district [open-enrollment charter school],
regional education service center, or shared services arrangement
and that is used to transport public school students on a
school-related activity trip, other than on routes to and from
school. The term does not include a chartered bus, a bus operated
by a mass transit authority, or a school bus.
SECTION 4.75. Section 57.042(9), Utilities Code, is amended
to read as follows:
(9) "Public school" means a public elementary or
secondary school, including a public charter district [an
open-enrollment charter school], a home-rule school district
school, and a school with a campus or campus program charter.
SECTION 4.76. Section 4(2), Chapter 22, Acts of the 57th
Legislature, 3rd Called Session, 1962 (Article 6228a-5, Vernon's
Texas Civil Statutes), is amended to read as follows:
(2) "Educational institution" means a school district
or a public charter district [an open-enrollment charter school].
SECTION 4.77. The following laws are repealed:
(1) Section 12.106, Education Code; and
(2) Section 40, Chapter 1504, Acts of the 77th
Legislature, Regular Session, 2001.
SECTION 4.78. Notwithstanding the repeal of Sections 12.107
and 12.128, Education Code, by this Act, those sections continue to
apply to state funds and property received or purchased by an
open-enrollment charter school before September 1, 2006.
SECTION 4.79. The changes in law made by Sections 4.04-4.78
of this article apply beginning August 1, 2006, except that
Sections 4.11, 4.12, 4.59, and 4.77 apply beginning September 1,
2005.
ARTICLE 5. CONFORMING AMENDMENTS
PART A. CONFORMING AMENDMENTS EFFECTIVE
SEPTEMBER 1, 2005
SECTION 5A.01. Section 22.004(c), Education Code, is
amended to read as follows:
(c) The cost of the coverage provided under the program
described by Subsection (a) shall be paid by the state, the
district, and the employees in the manner provided by Chapter 1579
[Article 3.50-7], Insurance Code. The cost of coverage provided
under a plan adopted under Subsection (b) shall be shared by the
employees and the district using the contributions by the state
described by Subchapter F, Chapter 1579 [Section 9, Article
3.50-7], Insurance Code, or by Chapter 1580 [Article 3.50-8],
Insurance Code.
SECTION 5A.02. Section 822.201(c), Government Code, is
amended to read as follows:
(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) supplemental compensation [contributions to a
health reimbursement arrangement account] received by an employee
under Chapter 1580 [Article 3.50-8], Insurance Code; and
(11) any compensation not described by Subsection (b).
SECTION 5A.03. This part applies beginning with the
2005-2006 school year.
PART B. CONFORMING AMENDMENTS
RELATED TO EDUCATION FUNDING AND STATE PROPERTY TAX
SECTION 5B.01. Section 12.013(b), Education Code, is
amended to read as follows:
(b) A home-rule school district is subject to:
(1) a provision of this title establishing a criminal
offense;
(2) a provision of this title relating to limitations
on liability; and
(3) a prohibition, restriction, or requirement, as
applicable, imposed by this title or a rule adopted under this
title, relating to:
(A) the Public Education Information Management
System (PEIMS) to the extent necessary to monitor compliance with
this subchapter as determined by the commissioner;
(B) educator certification under Chapter 21 and
educator rights under Sections 21.407, 21.408, and 22.001;
(C) criminal history records under Subchapter C,
Chapter 22;
(D) student admissions under Section 25.001;
(E) school attendance under Sections 25.085,
25.086, and 25.087;
(F) inter-district or inter-county transfers of
students under Subchapter B, Chapter 25;
(G) elementary class size limits under Section
25.112, in the case of any campus in the district that is considered
academically unacceptable [low-performing] under Section 39.132;
(H) high school graduation under Section 28.025;
(I) special education programs under Subchapter
A, Chapter 29;
(J) bilingual education under Subchapter B,
Chapter 29;
(K) prekindergarten programs under Subchapter E,
Chapter 29;
(L) safety provisions relating to the
transportation of students under Sections 34.002, 34.003, 34.004,
and 34.008;
(M) computation and distribution of state aid
under Chapters 31, 42, and 43;
(N) extracurricular activities under Section
33.081;
(O) health and safety under Chapter 38;
(P) public school accountability under
Subchapters B, C, D, and G, Chapter 39;
(Q) [equalized wealth under Chapter 41;
[(R)] a bond or other obligation or tax rate
under Chapters 42, 43, and 45; and
(R) [(S)] purchasing under Chapter 44.
SECTION 5B.02. Section 12.029(b), Education Code, is
amended to read as follows:
(b) If [Except as provided by Subchapter H, Chapter 41, if]
two or more school districts having different status, one of which
is home-rule school district status, consolidate into a single
district, the petition under Section 13.003 initiating the
consolidation must state the status for the consolidated district.
The ballot shall be printed to permit voting for or against the
proposition: "Consolidation of (names of school districts) into a
single school district governed as (status of school district
specified in the petition)."
SECTION 5B.03. Section 21.410(h), Education Code, is
amended to read as follows:
(h) A grant a school district receives under this section is
in addition to any funding the district receives under Chapter 42.
The commissioner shall distribute funds under this section with the
Foundation School Program payment to which the district is entitled
as soon as practicable after the end of the school year as
determined by the commissioner. [A district to which Chapter 41
applies is entitled to the grants paid under this section.] The
commissioner shall determine the timing of the distribution of
grants to a district that does not receive Foundation School
Program payments.
SECTION 5B.04. Section 21.411(h), Education Code, is
amended to read as follows:
(h) A grant a school district receives under this section is
in addition to any funding the district receives under Chapter 42.
The commissioner shall distribute funds under this section with the
Foundation School Program payment to which the district is entitled
as soon as practicable after the end of the school year as
determined by the commissioner. [A district to which Chapter 41
applies is entitled to the grants paid under this section.] The
commissioner shall determine the timing of the distribution of
grants to a district that does not receive Foundation School
Program payments.
SECTION 5B.05. Section 21.412(h), Education Code, is
amended to read as follows:
(h) A grant a school district receives under this section is
in addition to any funding the district receives under Chapter 42.
The commissioner shall distribute funds under this section with the
Foundation School Program payment to which the district is entitled
as soon as practicable after the end of the school year as
determined by the commissioner. [A district to which Chapter 41
applies is entitled to the grants paid under this section.] The
commissioner shall determine the timing of the distribution of
grants to a district that does not receive Foundation School
Program payments.
SECTION 5B.06. Section 21.413(h), Education Code, as added
by Section 2, Chapter 430, Acts of the 78th Legislature, Regular
Session, 2003, is amended to read as follows:
(h) A grant a school district receives under this section is
in addition to any funding the district receives under Chapter 42.
The commissioner shall distribute funds under this section with the
Foundation School Program payment to which the district is entitled
as soon as practicable after the end of the school year as
determined by the commissioner. [A district to which Chapter 41
applies is entitled to the grants paid under this section.] The
commissioner shall determine the timing of the distribution of
grants to a district that does not receive Foundation School
Program payments.
SECTION 5B.07. Section 29.014(d), Education Code, is
amended to read as follows:
(d) The accreditation [basic] allotment for a student
enrolled in a district to which this section applies is adjusted by:
(1) the cost of education adjustment under Section
42.102 for the school district in which the district is
geographically located; and
(2) the weight for a homebound student under Section
42.151(a).
SECTION 5B.08. Section 29.087(j), Education Code, is
amended to read as follows:
(j) For purposes of funding under Chapters [41,] 42[,] and
46, a student attending a program authorized by this section may be
counted in attendance only for the actual number of hours each
school day the student attends the program, in accordance with
Sections 25.081 and 25.082.
SECTION 5B.09. Section 29.203(b), Education Code, is
amended to read as follows:
(b) A school district is entitled to the allotment provided
by Section 42.157 for each eligible student using a public
education grant. [If the district has a wealth per student greater
than the guaranteed wealth level but less than the equalized wealth
level, a school district is entitled under rules adopted by the
commissioner to additional state aid in an amount equal to the
difference between the cost to the district of providing services
to a student using a public education grant and the sum of the state
aid received because of the allotment under Section 42.157 and
money from the available school fund attributable to the student.]
SECTION 5B.10. Section 30.003, Education Code, is amended
by adding Subsection (f-1) to read as follows:
(f-1) The commissioner shall determine the total amount
that the Texas School for the Blind and Visually Impaired and the
Texas School for the Deaf would have received from school districts
pursuant to this section if H.B. No. 2, Acts of the 79th
Legislature, Regular Session, 2005, had not reduced the districts'
share of the cost of providing education services. That amount,
minus any amount the schools do receive from school districts,
shall be set apart as a separate account in the foundation school
fund and appropriated to those schools for educational purposes.
SECTION 5B.11. Section 37.0061, Education Code, is amended
to read as follows:
Sec. 37.0061. FUNDING FOR ALTERNATIVE EDUCATION SERVICES IN
JUVENILE RESIDENTIAL FACILITIES. A school district that provides
education services to pre-adjudicated and post-adjudicated
students who are confined by court order in a juvenile residential
facility operated by a juvenile board is entitled to count such
students in the district's average daily attendance for purposes of
receipt of state funds under the Foundation School Program. [If the
district has a wealth per student greater than the guaranteed
wealth level but less than the equalized wealth level, the district
in which the student is enrolled on the date a court orders the
student to be confined to a juvenile residential facility shall
transfer to the district providing education services an amount
equal to the difference between the average Foundation School
Program costs per student of the district providing education
services and the sum of the state aid and the money from the
available school fund received by the district that is attributable
to the student for the portion of the school year for which the
district provides education services to the student.]
SECTION 5B.12. Section 87.208, Education Code, is amended
to read as follows:
Sec. 87.208. SEABORNE CONSERVATION CORPS. If the board of
regents of The Texas A&M University System administers a program
that is substantially similar to the Seaborne Conservation Corps as
it was administered by the board during the 1998-1999 school year,
the program is entitled, for each student enrolled, to allotments
from the Foundation School Program under Chapter 42 as if the
program were a school district, except that:
(1) the program has a local share applied that is
equivalent to the local fund assignment of the school district in
which the principal facilities of the program are located; and
(2) the district enrichment tax rate under Section
42.302 is the average district enrichment tax rate for the state.
SECTION 5B.13. Section 96.707(k), Education Code, is
amended to read as follows:
(k) For each student enrolled in the academy, the academy is
entitled to allotments from the Foundation School Program under
Chapter 42 as if the academy were a school district, except that:
(1) the academy has a local share applied that is
equivalent to the local fund assignment of the Beaumont Independent
School District; and
(2) the district enrichment tax rate under Section
42.302 is the average district enrichment tax rate for the state.
SECTION 5B.14. Section 105.301(e), Education Code, is
amended to read as follows:
(e) The academy is not subject to the provisions of this
code, or to the rules of the Texas Education Agency, regulating
public schools, except that:
(1) professional employees of the academy are entitled
to the limited liability of an employee under Section 22.0511,
22.0512, or 22.052;
(2) a student's attendance at the academy satisfies
compulsory school attendance requirements; [and]
(3) for each student enrolled, the academy is entitled
to allotments from the foundation school program under Chapter 42
as if the academy were a school district without a basic program
[tier one] local share for purposes of Section 42.253; and
(4) in determining funding for the academy:
(A) the adjustment under Section 42.102 is the
adjustment of the school district in which the principal facilities
of the academy are located; and
(B) the district enrichment tax rate under
Section 42.302 is the average district enrichment tax rate for the
state.
SECTION 5B.15. Section 317.005(f), Government Code, is
amended to read as follows:
(f) The governor or board may adopt an order under this
section withholding or transferring any portion of the total amount
appropriated to finance the foundation school program for a fiscal
year. The governor or board may not adopt such an order if it would
result in an allocation of money between particular programs or
statutory allotments under the foundation school program contrary
to the statutory proration formula provided by Section 42.253(h),
Education Code. The governor or board may transfer an amount to the
total amount appropriated to finance the foundation school program
for a fiscal year and may increase the accreditation [basic]
allotment. The governor or board may adjust allocations of amounts
between particular programs or statutory allotments under the
foundation school program only for the purpose of conforming the
allocations to actual pupil enrollments or attendance.
SECTION 5B.16. Section 403.302(a), Government Code, is
amended to read as follows:
(a) The comptroller shall conduct an annual study using
comparable sales and generally accepted auditing and sampling
techniques to determine the total taxable value of all property in
each school district. The study shall determine the taxable value
of all property and of each category of property in the district and
the productivity value of all land that qualifies for appraisal on
the basis of its productive capacity and for which the owner has
applied for and received a productivity appraisal. [The
comptroller shall make appropriate adjustments in the study to
account for actions taken under Chapter 41, Education Code.]
SECTION 5B.17. Section 2175.304(c), Government Code, is
amended to read as follows:
(c) The procedures established under Subsection (b) must
give preference to transferring the property directly to a public
school or school district or to an assistance organization
designated by the school district before disposing of the property
in another manner. If more than one public school or school
district or assistance organization seeks to acquire the same
property on substantially the same terms, the system, institution,
or agency shall give preference to a public school that is
considered low-performing by the commissioner of education or to a
school district that has a relatively low [taxable] wealth per
student, as determined by the commissioner of education [that
entitles the district to an allotment of state funds under
Subchapter F, Chapter 42, Education Code], or to the assistance
organization designated by such a school district.
SECTION 5B.18. Section 1579.251(a), Insurance Code, is
amended to read as follows:
(a) The state shall assist employees of participating
school districts and charter schools in the purchase of group
health coverage under this chapter by providing for each covered
employee the amount of $900 each state fiscal year or a greater
amount as provided by the General Appropriations Act. The state
contribution shall be distributed through the school finance
formulas under Chapter [Chapters 41 and] 42, Education Code, in a
manner the commissioner of education determines appropriate [and
used by school districts and charter schools as provided by
Sections 42.2514 and 42.260, Education Code].
SECTION 5B.19. Section 6.02(b), Tax Code, is amended to
read as follows:
(b) A taxing unit that has boundaries extending into two or
more counties may choose to participate in only one of the appraisal
districts. In that event, the boundaries of the district chosen
extend outside the county to the extent of the unit's boundaries.
To be effective, the choice must be approved by resolution of the
board of directors of the district chosen. [The choice of a school
district to participate in a single appraisal district does not
apply to property annexed to the school district under Subchapter C
or G, Chapter 41, Education Code, unless:
[(1) the school district taxes property other than
property annexed to the district under Subchapter C or G, Chapter
41, Education Code, in the same county as the annexed property; or
[(2) the annexed property is contiguous to property in
the school district other than property annexed to the district
under Subchapter C or G, Chapter 41, Education Code.]
SECTION 5B.20. Section 21.01, Tax Code, is amended to read
as follows:
Sec. 21.01. REAL PROPERTY. Real property is taxable by a
taxing unit if located in the unit on January 1[, except as provided
by Chapter 41, Education Code].
SECTION 5B.21. Section 21.02(a), Tax Code, is amended to
read as follows:
(a) Except as provided by [Subsection (b) and] Sections
21.021, 21.04, and 21.05, tangible personal property is taxable by
a taxing unit if:
(1) it is located in the unit on January 1 for more
than a temporary period;
(2) it normally is located in the unit, even though it
is outside the unit on January 1, if it is outside the unit only
temporarily;
(3) it normally is returned to the unit between uses
elsewhere and is not located in any one place for more than a
temporary period; or
(4) the owner resides (for property not used for
business purposes) or maintains the owner's [his] principal place
of business in this state (for property used for business purposes)
in the unit and the property is taxable in this state but does not
have a taxable situs pursuant to Subdivisions (1) through (3) [of
this section].
SECTION 5B.22. Section 39.901(d), Utilities Code, is
amended to read as follows:
(d) Not later than May 1 of each year, subject to Section
39.903(b), the commission shall transfer from the system benefit
fund to the foundation school fund the amount determined by the
Texas Education Agency under Subsection (b) to the extent that
funds are available. Amounts transferred from the system benefit
fund under this section may be appropriated only for the support of
the Foundation School Program and are available, in addition to any
amounts allocated by the General Appropriations Act, to finance
actions under Section [41.002(b) or] 42.2521, Education Code.
SECTION 5B.23. This part applies beginning with the
2006-2007 school year.
ARTICLE 6. REPEALER; TRANSITION; EFFECTIVE DATE
SECTION 6.01. Effective September 1, 2005, the following
laws are repealed:
(1) Sections 1-3 and 57, Chapter 201, Acts of the 78th
Legislature, Regular Session, 2003;
(2) Chapter 313, Acts of the 78th Legislature, Regular
Session, 2003;
(3) Section 1.01, Chapter 366, Acts of the 78th
Legislature, Regular Session, 2003;
(4) Sections 7.006, 29.056(h), 37.004(g), 39.027(b),
(c), and (f), and 42.253(e-1), Education Code; and
(5) Sections 401.054(b)-(e) and 401.314(e), (f), and
(g), Occupations Code.
SECTION 6.02. Effective September 1, 2006, the following
laws are repealed:
(1) the following provisions of the Education Code:
(A) Chapter 41;
(B) Subchapter F, Chapter 42, as it existed on
November 1, 2005;
(C) Sections 7.055(b)(34), 21.402(b), 29.203(c)
and (g), 31.025, 31.1031, 42.103(b) and (e), 42.158(e), 42.2514,
42.2517, 42.259, 42.260, and 42.4101; and
(D) Sections 42.2512(a-1) and 42.2541, as added
by Part A, Article 1, of this Act;
(2) the following provisions of the Insurance Code:
(A) Section 1581.053(b); and
(B) Subchapter C, Chapter 1581; and
(3) Sections 6.02(g), 6.03(m), 21.02(b) and (c), and
25.25(k), Tax Code.
SECTION 6.03. (a) Except as provided by Subsection (b) of
this section, a school district maintenance tax rate imposed under
Sections 45.002 and 45.003, Education Code, before November 8,
2005, is void.
(b) An election held before November 8, 2005, authorizing a
maintenance tax at a rate of at least $0.25 on the $100 valuation of
taxable property in a school district is sufficient to authorize a
rate not to exceed $0.25.
SECTION 6.04. (a) Except as provided by Subsection (b) of
this section, if two or more sections of this Act amend the same
provision of law, the sections of the Act should be harmonized, if
possible, so that effect may be given to each section.
(b) If a section of this Act repeals a provision of Chapter
12, Education Code, that section prevails over a section of this Act
that amends the same provision.
SECTION 6.05. Except as otherwise specifically provided by
this Act, this Act applies beginning with the 2005-2006 school
year.
SECTION 6.06. (a) The following provisions of this Act
take effect only if the constitutional amendment proposed by
___.J.R. No. ___, 79th Legislature, Regular Session, 2005, is
approved by the voters:
(1) Part B, Article 1;
(2) Section 2A.10;
(3) Article 3;
(4) Part B, Article 5; and
(5) Sections 6.02 and 6.03.
(b) If the constitutional amendment proposed by ___.J.R.
No. ___, 79th Legislature, Regular Session, 2005, is not approved
by the voters, a provision of this Act described by Subsection (a)
of this section has no effect.
(c) Except as otherwise specifically provided by this Act,
this Act takes effect September 1, 2005, but only if H.B. No. 3,
Acts of the 79th Legislature, Regular Session, 2005, becomes law.
If H.B. No. 3 does not become law, this Act has no effect.
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