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By: Hochberg H.B. No. 3452
A BILL TO BE ENTITLED
AN ACT
relating to public education and public school finance matters.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. ARTICLE 1. PUBLIC SCHOOL FINANCE
PART A. EDUCATION FUNDING
SECTION 1A.01. Effective September 1, 2005, Section 42.101,
Subchapter B, Chapter 42, Education Code is amended to read as
follows:
Section 42.101. 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 allotment of $3,096
[$2,537]. A greater amount for any school year may be provided by
appropriation.
SECTION 1A.02. Effective September 1, 2006, Section 42.101,
Subchapter B, Chapter 42, Education Code is amended to read as
follows:
Section 42.101. 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 allotment of $3,225
[$2,537]. A greater amount for any school year may be provided by
appropriation.
SECTION 1A.03. Section 42.152, Subchapter C, Chapter 42,
Education Code is amended by amending Subsections (a) and (t) and
adding Subsection (c-2) 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 basic allotment
multiplied by 0.25 [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.
(c-2) Notwithstanding Subsection (c), a school district may
use funds allocated under this section to provide Saturday classes
for third grade students who fail to perform satisfactorily on an
assessment instrument administered under Section 39.023.
(t) A reduction made under this section or the General
Appropriations Act in the allotment under this section, including a
reduction under Section 39.031(a), does not affect the computation
of students in weighted average daily attendance for purposes of
Subchapter F except that the reduction shall be applied in the same
manner to districts that receive payments under Chapter 42 and
districts that make payments under Chapter 41.
SECTION 1A.04. Section 42.153(a), Subchapter C, Chapter 42,
Education Code is amended to read as follows:
(a) 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 basic allotment multiplied by 0.15 [0.1].
SECTION 1A.05. Section 42.154(a), Subchapter C, Chapter 42,
Education Code is 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 basic allotment multiplied by a weight of 1.35.
SECTION 1A.06. Section 42.155, Subchapter C, Chapter 42,
Education Code is amended by adding subsection (1) to read as
follows:
(1) Beginning in the 2005-2006 school year, the allocation
per mile of approved route shall be at least thirty-five percent
higher than the allocation per mile for the 2004-2005 school year.
SECTION 1A.07. Subchapter C, Chapter 42, Education Code is
amended by adding Section 42.159 to read as follows:
Section 42.159. INSTRUCTIONAL MATERIALS AND TECHNOLOGY
ALLOTMENT. (a) For each student in average daily attendance, a
school district is entitled to an annual allotment of $150.
(b) Funds allotted under this section may be used only to
purchase approved instructional materials, including online
instructional materials.
(c) This section applies beginning with the 2006-2007
school year. This subsection expires September 1, 2007.
SECTION 1A.08. Section 42.2511(a), Education Code, is
amended to read as follows:
(a) Notwithstanding any other provision of this chapter, a
school district is entitled to additional state aid to the extent
that state aid under this chapter based on the determination of the
school district's taxable value of property as provided under
Subchapter M, Chapter 403, Government Code, does not fully
compensate the district for ad valorem tax revenue lost due to the
increase in the homestead exemption under Section l-b(c), Article
VIII, Texas Constitution, as proposed by H.J.R. No., 79th
Legislature, Regular Session, 2005 [H.J.R. No. 4, 75th Legislature,
Regular Session, 1997, and the additional limitation on tax
increases under Section l b(d), Article VIII, Texas Constitution,
as proposed by H.J.R. No. 4, 75th Legislature, Regular Session,
1997].
SECTION 1A.09. Effective September 1, 2005, Section
42.2512, Education Code, is amended to read as follows:
Section 42.2512. ADDITIONAL STATE AID FOR PROFESSIONAL
STAFF SALARIES. (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 $2,400 [$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; 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 Sections 1A.01, 1A.13, and 1A.14, H.B. No. 2, Acts
of the 79th Legislature, Regular Session, 2005 [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 1A.10. Effective September 1, 2006, Section
42.2512, Education Code, is amended to read as follows:
Section 42.2512 ADDITIONAL STATE AID FOR PROFESSIONAL STAFF
SALARIES.
(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 $4,800 [$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; 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 H.B. No. 2, Acts of the 79th Legislature, Regular
Session, 2005 [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 1A.11. Effective September 1, 2005, Subchapter E,
Chapter 42, Education Code is amended by adding Section 42.2513 to
read as follows:
Sec. 42.2513. ADDITIONAL TRANSITIONAL AID. (a)
Notwithstanding any other provision of this chapter or Chapter 41,
and provided that a school district imposes a tax of at least $1.25
on the $100 valuation of taxable property, a school district is
entitled to the amount of state revenue necessary to maintain state
and local revenue per student in weighted average daily attendance
in the amount equal to the sum of:
(1) the greater of:
(A) the amount of state and local revenue per
student in weighted average daily attendance for the maintenance
and operation of the district, to which the district was entitled
for the 2004-2005 school year under Chapter 42, or, if the district
was subject to Chapter 41, the amount to which the district was
entitled under that chapter, 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); or
(B) the amount of state and local revenue per
student in weighted average daily attendance for the maintenance
and operation of the district to which the district would have been
entitled for the 2005-2006 school year under Chapter 42, as that
chapter existed on January 1, 2005, or, if the district would have
been subject to Chapter 41, as that chapter existed on January 1,
2005, the amount to which the district would have been entitled
under that chapter, based on the funding elements in effect for the
2004-2005 school year and including any amounts described by 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 three percent of the greater of
the amounts described by Subdivision (1).
(b) The amount of revenue to which a school district is
entitled because of the technology allotment under Section 32.005
or the instructional materials and technology allotment under
Section 42.241 is not included in making a determination under
Subsection (a).
(c) The commissioner shall determine the amount of state
funds to which a school district is entitled under this section.
The commissioner's determination is final and may not be appealed.
SECTION 1A.12. Effective September 1, 2006, Subchapter E,
Chapter 42, Education Code is amended by adding Section 42.2513 to
read as follows:
Sec. 42.2513. ADDITIONAL TRANSITIONAL AID. (a)
Notwithstanding any other provision of this chapter or Chapter 41,
and provided that a school district imposes a tax of at least $1.25
on the $100 valuation of taxable property, a school district is
entitled to the amount of state revenue necessary to maintain state
and local revenue per student in weighted average daily attendance
in the amount equal to the sum of:
(1) the amount of state and local revenue per student
in weighted average daily attendance for the maintenance and
operation of the district to which the district would have been
entitled for the 2006-2007 school year under Chapter 42, as that
chapter existed on January 1, 2005, or, if the district would have
been subject to Chapter 41, as that chapter existed on January 1,
2005, the amount to which the district would have been entitled
under that chapter, based on the funding elements in effect for the
2004-2005 school year and including any amounts described by 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 three percent of the amount
described by Subdivision (1).
(b) The amount of revenue to which a school district is
entitled because of the technology allotment under Section 32.005
or the instructional materials and technology allotment under
Section 42.241 is not included in making a determination under
Subsection (a).
(c) The commissioner shall determine the amount of state
funds to which a school district is entitled under this section.
The commissioner's determination is final and may not be appealed.
SECTION 1A.13. Section 42.252(a), Subchapter E, Chapter 42,
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 when multiplied by the ratio of the
actual taxable value of the property in the district for the current
tax year divided by the taxable value of property in the district
for the preceding tax year as determined under Subchapter M,
Chapter 403, Government Code, raises $0.86 for each hundred dollars
of valuation [is an effective rate of $0.86]; and
"DPV" is the taxable property value in the school district
for the preceding year determined under Subchapter M, Chapter 403
Government Code.
SECTION 1A.14. Section 42.302(a), Subchapter E, Chapter 42,
Education Code is amended 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
quotient of the basic allotment under Section 42.101 divided by 86
[$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 and 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 multiplying the district's adopted
tax rate by the ratio of the actual taxable value of the property in
the district for the current tax year divided by the taxable value
of property in the district for the preceding year as determined
under Subchapter M, Chapter 403, Government Code, or, if
applicable, under Section 42.2521, and subtracting the district's
"TR" as calculated under Section 42.252(a) [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.
SECTION 1A.15. Section 41.002, Chapter 41, Education Code
is amended to read as follows:
Section 41.002. EQUALIZED WEALTH LEVEL. [(a)] A school
district may not have a wealth per student that exceeds the wealth
per student that produces the guaranteed level of state and local
funds per weighted student per cent of tax effort under Section
42.302 [$305,000].
SECTION 1A.16. Section 12.106(a), Education Code, is
amended to read as follows:
(a) A charter holder is entitled to receive for the
open-enrollment charter school funding under Chapter 42 as if the
school were a school district without a tier one local share for
purposes of Section 42.253 and without any local revenue ("LR") for
purposes of Section 42.302. In determining funding for an
open-enrollment charter school, adjustments under Sections 42.102,
42.103, 42.104, 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, as
estimated at the beginning of the school year, and provided that the
amount of state funding for each student is not subject to
adjustment after the beginning of the school year due to changes in
the property value or collection rates for the state.
SECTION 1A.17. (a) Section 11.013(d), Tax Code is amended
to read as follows:
(b) An adult is entitled to exemption from taxation by a
school district of $45,000 [$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.
(b) This Section takes effect only if H.J.R. No. ___, Acts
of the 79th Legislature, Regular Session, 2005, takes. If that
resolution does not take effect, this Section has no effect.
SECTION lA.l8. Section 26.08, Tax Code, is amended by
adding Subsections (a-1)-(a-3) and amending Subsections (i) and (k)
to read as follows:
(a-1) Except as provided by Subsection (a-2), for the 2005
tax year, a school district may not impose a tax for the maintenance
and operations of the district that exceeds the greater of:
(1) the rate equal to five-sixths of the rate adopted
by the district for maintenance and operations for the 2004 tax
year; or
(2) the rate necessary to ensure that the district
receives the amount of revenue described by Sections 42.2513(a)(1)
and (2), Education Code, provided that the rate may not exceed $1.25
on the $100 valuation of taxable property.
(a-2) Notwithstanding any other provision of law, for the
2005 tax year a school district permitted by special law on January
1, 2005, to impose an ad valorem tax for maintenance and operations
at a rate greater than $1.50 on the $100 valuation of taxable
property in the district may continue to impose a tax for the
maintenance and operations of the district at a rate not to exceed
the rate that is $0.25 less than the rate adopted by the district
for maintenance and operations for the 2004 tax year.
(a-3) Subsections (a-1), (a-2), and this subsection expire
January 1, 2006.
(i) For purposes of this section, the rollback tax rate of a
school district is the sum of:
(1) the tax rate that, applied to the current total
value for the district, would impose taxes in an amount that, when
added to state funds that would be distributed to the district under
Chapter 42, Education Code, for the school year beginning in the
current tax year using that tax rate, would provide the same amount
of state funds distributed under Chapter 42 and maintenance and
operations taxes of the district per student in weighted average
daily attendance for that school year that would have been
available to the district in the preceding year if the funding
elements for Chapters 41 and 42, Education Code, for the current
year had been in effect for the preceding year;
(2) the rate of $0.04 [$0.06] per $100 of taxable
value; and
(3) the district's current debt rate.
(k) For purposes of this section, for the [2003, 2004,]
2005, 2006, 2007, or 2008 tax year, for a school district that is
entitled to state funds under Section 4(a-1), (a-2), (a-3),
(a-4),(a-5), or (a-6), Article 3.50-9, Insurance Code, the rollback
tax rate of the district is the sum of:
(1) the tax rate that, applied to the current total
value for the district, would impose taxes in an amount that, when
added to state funds that would be distributed to the district under
Chapter 42, Education Code, for the school year beginning in the
current tax year using that tax rate, would provide the same amount
of state funds distributed under Chapter 42 and maintenance and
operations taxes of the district per student in weighted average
daily attendance for that school year that would have been
available to the district in the preceding year if the funding
elements for Chapters 41 and 42, Education Code, for the current
year had been in effect for the preceding year;
(2) the tax rate that, applied to the current total
value for the district, would impose taxes in the amount that, when
added to state funds that would be distributed to the district under
Chapter 42, Education Code, for the school year beginning in the
current tax year using that tax rate, permits the district to comply
with Section 3, Article 3.50-9, Insurance Code;
(3) the rate of $0.04 [$0.06] per $100 of taxable
value; and
(4) the district's current debt rate.
SECTION 1A.19. Section 311.013, Tax Code, is amended by
adding Subsection (l) to read as follows:
(l) This subsection applies only to a reinvestment zone
created before January 1, 2005, for which a school district entered
into an agreement before that date to pay a portion of the tax
increment produced by the school district into the tax increment
fund established for the zone. In addition to the amount the school
district is otherwise required to pay into the tax increment fund
each year, the comptroller shall pay into the fund from any
available source an additional amount. The additional amount is
the amount by which the amount the district would have been required
to pay into the fund for the current year under the agreement if the
district levied taxes at the district's 2004 tax rate exceeds the
amount the district is otherwise required to pay into the fund for
the current year. This subsection ceases to apply to the
reinvestment zone on the later of the dates specified by Sections
311.017(a)(1) and (2) for the reinvestment zone.
PART B. SCHOOL DISTRICT EFFICIENCY
SECTION 1B.01. Subchapter A, Chapter 11, Education Code, is
amended by adding Section 11.003 to read as follows:
Sec. 11.003. ADMINISTRATIVE EFFICIENCY. (a) The
Commissioner shall develop and implement a program assisting school
district board of trustees in entering into an agreement with
another district or a regional education service center for a
cooperative arrangement regarding administrative services,
including transportation, food service, purchasing, and payroll
functions.
(b) An agreement under this section must contain an
explanation of how the cooperative arrangement would allow a
participating school district to reduce costs, operate more
efficiently, and improve educational quality.
(c) This section does not limit a school district's
authority to enter into any other agreement authorized by law.
(d) The commissioner shall develop and implement the
program described by this section not later than January 1, 2006.
This subsection expires March 1, 2006.
SECTION 1B.02. Subchapter H, Chapter 45, Education Code, is
amended by adding Section 45.233 to read as follows:
Sec. 45.233. REVIEW OF TAX COLLECTIONS. The comptroller
shall periodically examine the effectiveness of school districts in
collecting district taxes.
ARTICLE 2. EDUCATION EXCELLENCE
PART A. EDUCATOR QUALITY
SECTION 2A.01. Section 21.402, Education Code, is amended
by amending Subsections (a) and (d) and adding Subsections (c–1),
(c-2), (c-3), (e) and (f) to read as follows:
(a) Except as provided by Subsection (d), (e), or (f), a
school district must pay each classroom teacher, full-time
librarian, full-time counselor certified under Subchapter B, or
full-time school nurse not less than the minimum monthly salary,
based on the employee's level of experience, determined by the
following formula:
MS = SF x FS
where:
"MS" is the minimum monthly salary; "SF" is the applicable
salary factor specified by Subsection (c); and
"FS" is the amount, as determined by the commissioner under
Subsection (b), of state and local funds per weighted student
available to a district eligible to receive state assistance under
Section 42.302 with an enrichment tax rate, as defined by Section
42.302, equal to the maximum rate authorized under Section 42.303,
except that the amount of state and local funds per weighted student
does not include the amount attributable to the increase in the
guaranteed level made by H.B. No. 3343, Acts of the 77th
Legislature, Regular Session, 2001 or by H.B. No. ___, Acts of the
79th Legislature, Regular Session, 2005.
(c-1) Notwithstanding Subsection (a), for the 2005-2006
school year, a classroom teacher, full-time librarian, full-time
counselor certified under Subchapter B, or full-time school nurse
is entitled to a monthly salary that is at least equal to the sum of:
(1) the monthly salary the employee would have
received for the 2005-2006 school year under the district's salary
schedule or other compensation system, including any local
supplement and any money representing a career ladder supplement
the employee would have received in the 2005-2006 school year; and
(2) $200.
(c-2) Notwithstanding Subsection (a), for the 2006-2007
school year, a classroom teacher, full-time librarian, full-time
counselor certified under Subchapter B, or full-time school nurse
is entitled to a monthly salary that is at least equal to the sum of:
(1) the monthly salary the employee would have
received for the 2006-2007 school year under the district's salary
schedule or other compensation system, including any local
supplement and any money representing a career ladder supplement
the employee would have received in the 2006-2007 school year; and
(2) $400.
(c-3) Subsections (c-1) and (c-2) and this subsection
expire September 1, 2006.
(d) A classroom teacher, full-time librarian, full-time
counselor certified under Subchapter B, or full-time school nurse
employed by a school district in the 2006-2007 [2000 2001] school
year is, as long as the employee is employed by the same district,
entitled to a salary that is at least equal to the salary the
employee received for the 2006-2007 [2000 2001] school year.
(e-1) For the 2005-2006 school year, in addition the amounts
specified in (c-1), each school district shall spend an amount
equal to the product of $400 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 on:
(1) additional across the board salary increases for
all employees subject to the minimum salary schedule; or
(2) additional stipends, in amounts determined by the
district, to encourage successful classroom teachers who hold
appropriate certificates issued as provided by Subchapter B and
have at least three years of classroom experience to:
(A) teach or serve as a mentor or master teacher
at a campus that is considered low-performing under Section 39.132;
(B) teach or serve as a mentor or master teacher
at a campus or in a program where at least 70 percent of the students
are educationally disadvantaged;
(C) serve as a mentor or master teacher in a
subject for which they are certified and which is designated by the
Commissioner as a critical shortage area; or
(D) teach or serve in a program that is designed
to provide highly qualified teachers to students that are at risk of
failing or dropping out.
(e-2) Beginning with the 2006-2007 school year, in addition
to the amounts specified in (c-2), each school district shall spend
an amount equal to the product of $800 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 on:
(1) additional across the board salary increases for
all employees subject to the minimum salary schedule; or
(2) additional stipends, in amounts determined by the
district, to encourage successful classroom teachers who hold
appropriate certificates issued as provided by Subchapter B and
have at least three years of classroom experience to:
(A) teach or serve as a mentor or master teacher
at a campus that is considered low-performing under Section 39.132;
(B) teach or serve as a mentor or master teacher
at a campus or in a program where at least 70 percent of the students
are educationally disadvantaged;
(C) serve as a mentor or master teacher in a
subject for which they are certified and which is designated by the
Commissioner as a critical shortage area; or
(D) teach or serve in a program that is designed
to provide highly qualified teachers to students that are at risk of
failing or dropping out.
(f) No later than June 1, 2007, the commissioner shall
adjust the factors in Subsection (a) above such that the minimum
monthly salary calculated under Subsection (a) is $400 greater than
the minimum monthly salary the formula would have generated.
SECTION 2A.02. 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 at least one day of induction provided by
the district; and
(3) have at least three complete years of teaching
experience.
(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 fund
mentoring support through providers of mentor training. In
adopting rules under this subsection, the commissioner shall rely
on research-based mentoring programs that, through external
evaluation, have demonstrated success.
PART B. STATE GOVERNANCE
SECTION 2B.01. Subchapter B, Chapter 7, Education Code, is
amended by adding Section 7.0221 to read as follows:
Sec. 7.0221. FINANCIAL ACCOUNTING REPORT REQUIRED. (a)
The agency shall:
(1) use standard accepted cost accounting practices
for reporting all expenditures; and
(2) identify and report each expenditure separately by
purpose as educational, support, or administrative.
(b) The commissioner shall prepare an annual cost
accounting report of all expenditures described by Subsection (a).
(c) The commissioner shall make the annual cost accounting
report for a fiscal year available to the public on the agency's
Internet website not later than January 1 following that fiscal
year. The commissioner shall provide a copy of the annual cost
accounting report to any person who submits a written request to the
commissioner.
SECTION 2B.02. Section 8.102, Education Code, is amended to
read as follows:
Sec. 8.102. DATA REPORTING. (a) Each regional education
service center shall report audited or budgeted financial
information and any other information requested by the commissioner
for use in assessing the performance of the center. The
commissioner shall develop a uniform system for regional education
service centers to report audited financial data, to report
information on the indicators adopted under Section 8.101, and to
provide information on client satisfaction with services provided
under Subchapter B.
(b) The uniform system for reporting required by Subsection
(a) must require regional education service centers to:
(1) use standard accepted cost accounting practices
approved by the commissioner for reporting all expenditures; and
(2) identify and report each expenditure separately by
purpose as educational, support, or administrative.
SECTION 2B.03. Section 8.103, Education Code, is amended to
read as follows:
Sec. 8.103. ANNUAL EVALUATION. (a) The commissioner shall
conduct an annual evaluation of each executive director and
regional education service center. Each evaluation must include:
(1) an audit of the center's finances;
(2) a review of the center's performance on the
indicators adopted under Section 8.101;
(3) a review of client satisfaction with services
provided under Subchapter B; and
(4) a review of any other factor the commissioner
determines to be appropriate.
(b) In the audit conducted under Subsection (a)(1), the
commissioner shall verify that the regional education service
center has identified each expenditure separately by purpose as
educational, support, or administrative as required by Section
8.102(b).
(c) The commissioner shall make the annual evaluation for a
fiscal year available to the public not later than January 1
following that fiscal year. The commissioner shall provide a copy
of the annual evaluation to any person who submits a written request
to the commissioner.
PART C. SCHOOL DISTRICT GOVERNANCE AND OTHER OPERATIONS
SECTION 2C.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 or solicits business with 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 2C.02. Subchapter B, Chapter 28, Education Code, is
amended by adding Section 28.0216 to read as follows:
Section 28.0216. LIMITS ON ASSIGNMENT OF STUDENTS TO
TEACHERS. (a) A student in grades Kindergarten through 6 may not
be assigned for two consecutive school years to a teacher who:
(1) has less than one year of teaching experience; or
(2) does not hold the appropriate certificate issued
by the State Board for Educator Certification.
(b) In a subject for which a student takes an assessment
under Section 39.023(a) or (c), a student in grade 7 or higher may
not be assigned for two consecutive school years to a teacher who:
(1) has less than one year of teaching experience; or
(2) does not hold the appropriate certificate issued
by the State Board for Educator Certification.
SECTION 2C.03. Section 29.153(d) of the Education Code is
amended by adding subsection (f) to read as follows:
(f) Not withstanding Subsection (d), the commissioner shall
not exempt a school district from the application of this section if
a private entity in the district:
(1) is willing and able to contract with the district
to operate a prekindergarten program that complies with the
requirements in this code and agency rule regarding prekindergarten
programs operated by a school district;
(2) meets any additional standards the school district
has in place for the operation of its own prekindergarten program;
and
(3) notifies the school district and the commissioner
in writing no later than June 1 of the entity's ability and
commitment to operate a prekindergarten program in the next school
year.
PART D. ACCOUNTABILITY
SECTION 2D.01. Subchapter A, Chapter 7, Education Code, is
amended by adding Section 7.010 to read as follows:
Sec. 7.010. BEST PRACTICES; CLEARINGHOUSE. (a) The agency
shall establish an accessible online clearinghouse of information
relating to the best practices of school districts for curriculum
development, classroom instruction, bilingual education, special
language programs, and business practices. The information must be
accessible by school districts and interested members of the
public.
(b) The agency shall:
(1) allow each school district to submit examples of
the district's best practices for:
(A) curriculum development and classroom
instruction, including best practices regarding scope and sequence
of education;
(B) bilingual education and special language
programs; and
(C) business practices, including descriptions
of effective, efficient practices;
(2) organize the best practices for curriculum
development and classroom instruction by each grade level and each
subject in the required curriculum under Section 28.002;
(3) organize the best practices for business practices
with priority given to descriptions of effective, efficient
practices provided by districts rated exemplary or recognized under
Subchapter D, Chapter 39; and
(4) periodically update information described by this
section as the agency determines necessary to provide timely
information regarding best practices.
(c) The agency may include in the clearinghouse any
information that the agency determines to be relevant to the best
practices of school districts.
(d) Based on the measure of progress toward English language
proficiency under Section 29.065, the commissioner shall determine
which school districts offer the most effective bilingual education
and special language programs and make the information available as
provided by this section.
(e) The agency may contract for the services of one or more
third-party contractors to develop a system of collecting and
evaluating best practices of school districts as provided by this
section.
(f) The agency shall implement this section not later than
September 1, 2006. This subsection expires January 1, 2007.
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 or that is subject to Section 39.1321 or 39.1322
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 under Chapter 31.
SECTION 2D.03. Section 25.005(b), Education Code, is
amended to read as follows:
(b) A reciprocity agreement must:
(1) address procedures for:
(A) transferring student records;
(B) awarding credit for completed course work;
and
(C) permitting a student to satisfy the
requirements of Section 39.025 through successful performance on
comparable end-of-course or other exit-level assessment
instruments administered in another state; and
(2) include appropriate criteria developed by the
agency.
SECTION 2D.04. Section 28.002(h), Education Code, is
amended to read as follows:
(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 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.05. The heading to Section 28.0211, Education
Code, is amended to read as follows:
Sec. 28.0211. SATISFACTORY PERFORMANCE ON ASSESSMENT
INSTRUMENTS REQUIRED FOR PROMOTION TO CERTAIN GRADE LEVELS;
ACCELERATED INSTRUCTION.
SECTION 2D.06. Subchapter B, Chapter 28, Education Code, is
amended by adding Section 28.0215 to read as follows:
Sec. 28.0215. SATISFACTORY PERFORMANCE
REQUIRED: END-OF-COURSE ASSESSMENT INSTRUMENTS. (a) A student
may not receive course credit for a course described by Section
39.023(c) unless the student performs satisfactorily on the
end-of-course assessment instrument for the course.
(b) The commissioner may adopt rules establishing a
procedure for a student who did not perform satisfactorily on an
end-of-course assessment instrument to retake the assessment
instrument and obtain course credit.
SECTION 2D.07. Section 28.025, Education Code, is amended
by amending Subsections (c), (d), and (e) and adding Subsection (f)
to read as follows:
(c) A person may receive a diploma if the person is eligible
for a diploma under Section 28.0251. In other cases, a student may
graduate and receive a diploma only if[:
[(1)] the student successfully completes:
(1) the curriculum requirements identified by the
State Board of Education under Subsection (a) [and complies with
Section 39.025(a)]; or
(2) [the student successfully completes] an
individualized education program developed under Section 29.005.
(d) Except as provided by Section 39.0241, a person may not
receive a diploma unless the person complies with Section 39.025.
For each year in which a person must comply with Section 39.025 to
receive a diploma, a [A] school district may issue a certificate of
coursework completion to a student who successfully completes the
curriculum requirements identified by the State Board of Education
under Subsection (a) but who fails to comply with Section 39.025
[39.025(a)]. A school district may allow a student who receives a
certificate to participate in a graduation ceremony with students
receiving high school diplomas. This subsection ceases to apply on
the date the commissioner certifies that the implementation of
amendments made by H.B. No. 2, Acts of the 79th Legislature, Regular
Session, 2005, to Sections 39.023(a) and (c) and 39.051(b) is
complete under the transition plan adopted under Section 39.0241.
This subsection expires September 1, 2011.
(e) Each school district shall report the academic
achievement record of students who have completed a minimum,
recommended, or advanced high school program on transcript forms
adopted by the State Board of Education. The transcript forms
adopted by the board must be designed to clearly differentiate
between each of the high school programs.
(f) The transcript forms adopted by the State Board of
Education under Subsection (e) must be designed to [and] identify
whether a student received a diploma or a certificate of coursework
completion. This subsection expires September 1, 2011.
SECTION 2D.08. Section 29.081(b), Education Code, is
amended to read as follows:
(b) Each district shall provide accelerated instruction to
a student enrolled in the district who has taken an end-of-course
[the secondary exit-level] assessment instrument administered
under Section 39.023(c) and has not performed satisfactorily on the
assessment instrument [each section] or who is at risk of dropping
out of school.
SECTION 2D.09. Subchapter C, Chapter 29, Education Code, is
amended by adding Section 29.0822 to read as follows:
Sec. 29.0822. OPTIONAL FLEXIBLE SCHOOL DAY PROGRAM. (a)
Notwithstanding Section 25.081 or 25.082, a school district may
provide a flexible school day program for students in grades nine
through 12 who have dropped out of school or who are at risk of
dropping out of school.
(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 may adopt rules for the administration
of this section. The commissioner shall calculate average daily
attendance for at-risk students served under this section. The
commissioner shall allow accumulations of hours of instruction for
students whose schedule would not otherwise allow full state
funding. Funding under this subsection shall be determined based
on the number of instructional days in the district calendar and a
seven hour school day, but attendance may be cumulated over a school
year, inclusive of any summer or vacation sessions. The attendance
of students who accumulate less than the number of attendance hours
required under this subsection shall be proportionately reduced for
funding purposes. The commissioner may set maximum funding amounts
for an individual course under this section.
SECTION 2D.10. Section 29.187(b), Education Code, is
amended to read as follows:
(b) An award granted under this section is not in lieu of a
diploma [or certificate of coursework completion] issued under
Section 28.025.
SECTION 2D.11. Section 29.202, Education Code, is amended
to read as follows:
Sec. 29.202. ELIGIBILITY. (a) In this section, "adequate
yearly progress standard" means a standard:
(1) determined by the commissioner and approved by the
United States Department of Education as provided by the No Child
Left Behind Act of 2001 (Pub. L. No. 107-110); and
(2) used to measure various indicators of educational
success to determine the progress of a campus towards academic
achievement.
(b) A student is eligible to receive a public education
grant or to attend another public school in the district in which
the student resides under this subchapter if the student is
assigned to attend a public school campus:
(1) at which 50 percent or more of the students did not
perform satisfactorily on an assessment instrument administered
under Section 39.023(a) or (c) in any two of the preceding three
years; [or]
(2) that was, at any time in the preceding three years,
considered low-performing under Section 39.132; or
(3) that has not met the adequate yearly progress
standard for the same indicator of educational success for the
preceding two years.
(c) [(b)] After a student has used a public education grant
to attend a school in a district other than the district in which
the student resides,[:
[(1)] the student does not become ineligible for the
grant if the school on which the student's initial eligibility is
based no longer meets the criteria under Subsection (b) [(a); and
[(2) the student becomes ineligible for the grant if
the student is assigned to attend a school that does not meet the
criteria under Subsection (a)].
SECTION 2D.12. Section 29.203(f), Education Code, is
amended to read as follows:
(f) The school district in which a student resides shall
provide each student attending a school in another district under
this subchapter transportation free of charge to and from the
school the student would otherwise attend, except as provided by
Section 1116, No Child Left Behind Act of 2001 (20 U.S.C. Section
6316).
SECTION 2D.13. Section 30.021(e), Education Code, is
amended to read as follows:
(e) The school shall cooperate with public and private
agencies and organizations serving students and other persons with
visual impairments in the planning, development, and
implementation of effective educational and rehabilitative service
delivery systems associated with educating students with visual
impairments. To maximize and make efficient use of state
facilities, funding, and resources, the services provided in this
area may include conducting a cooperative program with other
agencies to serve students who have graduated from high school by
completing all academic requirements applicable to students in
regular education, excluding satisfactory performance on the
end-of-course [exit-level] assessment instruments required by
commissioner rule under Section 39.023(c) [instrument], who are
younger than 22 years of age on September 1 of the school year and
who have identified needs related to vocational training,
independent living skills, orientation and mobility, social and
leisure skills, compensatory skills, or remedial academic skills.
SECTION 2D.14. Sections 30.104(b) and (c), Education Code,
are amended to read as follows:
(b) A student may graduate and receive a diploma from a
Texas Youth Commission educational program if[:
[(1)] the student successfully completes:
(1) the curriculum requirements identified by the
State Board of Education under Section 28.025(a) [and complies with
Section 39.025(a)]; or
(2) [the student successfully completes] the
curriculum requirements under Section 28.025(a) as modified by an
individualized education program developed under Section 29.005.
(c) Except as provided by Section 39.0241, a person may not
receive a diploma unless the person complies with Section 39.025.
For each year in which a person must comply with Section 39.025 to
receive a diploma, a [A] Texas Youth Commission educational program
may issue a certificate of course-work completion to a student who
successfully completes the curriculum requirements identified by
the State Board of Education under Section 28.025(a) but who fails
to comply with Section 39.025 [39.025(a)]. This subsection ceases
to apply on the date the commissioner certifies that the
implementation of the amendments made by H.B. No. 2, Acts of the
79th Legislature, Regular Session, 2005, to Sections 39.023(a) and
(c) and 39.051(b) is complete under the transition plan adopted
under Section 39.0241. This subsection expires September 1, 2011.
SECTION 2D.15. Section 39.023, Education Code, is amended by
amending Subsections (a) and (c) and adding Subsection (a-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. 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 grade [grades] eight
[through 11] with the aid of technology on any assessment
instruments that include algebra;
(2) reading, annually in grades three through eight
[nine];
(3) writing, including spelling and grammar, in grades
four and seven;
(4) [English language arts, in grade 10;
[(5)] social studies, in grade [grades] eight [and
10];
(5) [(6)] science, in grades five and [,] eight[, and
10]; and
(6) [(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 being field-tested until after the fifth school
year the question is used on an assessment instrument administered
under this section.
(c) The agency shall also adopt end-of-course [secondary
exit-level] assessment instruments for secondary-level courses in
Algebra I, Algebra II, Geometry, Biology, Chemistry, Physics,
Integrated Physics and Chemistry, English I, English II, English
III, World Geography, World History, United States History, and any
other course as determined by rule by the commissioner [designed to
be administered to students in grade 11 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
end-of-course [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
end-of-course [secondary exit-level] assessment instruments is
exempt from the requirements of Section 51.3062 [51.306]. The
performance level established by the Texas Higher Education
Coordinating Board under this subsection represents the level of
academic achievement indicating a student is prepared for college
course work. The performance level may be used as an indicator to
measure progress toward college preparedness of public school
students in this state.
SECTION 2D.16. Section 39.024, Education Code, is amended by
amending Subsection (a) and adding Subsections (b) and (b-1) 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. The
board may require a level of performance on assessment instruments
for determining district or campus performance under Subchapter D
that is higher than the level of performance considered to be
satisfactory for a student to be promoted from one grade level to
the next. The 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 to that student in accordance
with criteria established by agency rule.
(b) In determining a level of performance under Subsection
(a), a level of performance is satisfactory only if at least 60
percent of all students perform satisfactorily on each section of
the assessment instrument required under this subchapter.
(b-1) Subsection (b) applies beginning with the 2006-2007
school year. This subsection expires September 1, 2007.
SECTION 2D.17. Subchapter B, Chapter 39, Education Code, is
amended by adding Section 39.0241 to read as follows:
Sec. 39.0241. TRANSITION PLAN FOR USE OF ASSESSMENT
INSTRUMENTS. (a) The commissioner shall by rule adopt a transition
plan to implement the amendments made by H.B. No. 2, Acts of the
79th Legislature, Regular Session, 2005, to Sections 39.023(a) and
(c) and 39.051(b)(5). The rules must provide for the
administration of end-of-course assessment instruments adopted
under Section 39.023(c) to begin as soon as practicable but not
later than the 2008-2009 school year. During the period under which
the transition to end-of-course assessment instruments is made:
(1) the commissioner may retain, administer, and use
for campus and district ratings under Subchapter D any assessment
instrument required by Section 39.023(a) or (c), as that section
existed before amendment by H.B. No. 2, Acts of the 79th
Legislature, Regular Session, 2005; and
(2) the agency may defer releasing assessment
instrument questions and answer keys as required by Section
39.023(e) to the extent necessary to develop additional assessment
instruments.
(b) Rules adopted under Subsection (a) must require that
each student who will be subject to the requirements implemented
under the amendments made by H.B. No. 2, Acts of the 79th
Legislature, Regular Session, 2005, to Section 39.023(c) is
entitled to notice of the specific requirements applicable to the
student. Notice under this subsection must be provided not later
than the date the student enters the ninth grade.
(c) A reference in this code to an end-of-course assessment
instrument administered under Section 39.023(c) includes a
secondary exit-level assessment instrument administered as
provided by Subsection (a).
(d) This section expires September 1, 2009.
SECTION 2D.18. 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 shall provide to
high school students at grade levels determined by the commissioner
the opportunity to take a valid, reliable, and nationally normed
assessment instrument that:
(1) assesses skills measured by generally recognized
tests or assessments used in college and university undergraduate
admissions, including the Scholastic Assessment Test (SAT) and the
American College Test (ACT); and
(2) provides a scaled score in the assessed areas of
reading, mathematics, and writing.
(b) The agency shall:
(1) select and approve vendors of one or more
assessment instruments administered under this section; and
(2) pay all costs associated with administration of
the assessment instruments using funds set aside under Subsection
(d).
(c) The agency shall compile the results of any assessment
instrument administered under this section and make the results
available through the Public Education Information Management
System (PEIMS).
(d) The commissioner shall set aside an appropriate amount
from the Foundation School Program to pay the costs associated with
administering assessment instruments under this section. After
setting aside the appropriate amount, the commissioner shall reduce
each district's tier one allotments proportionately. A reduction
in tier one allotments under this subsection does not affect the
computation of the guaranteed amount of revenue per student per
cent of tax effort under Section 42.252. Any amount set aside under
this subsection must be approved by the Legislative Budget Board
and the governor's office of budget, planning, and policy.
SECTION 2D.19. Section 39.031, Education Code, is amended
to read as follows:
Sec. 39.031. COST. (a) The commissioner shall set aside an
appropriate amount from the Foundation School Program to pay the
cost of preparing, administering, or grading the assessment
instruments and the [shall be paid from the funds allotted under
Section 42.152, and each district shall bear the cost in the same
manner described for a reduction in allotments under Section
42.152. If a district does not receive an allotment under Section
42.253, the commissioner shall subtract the cost from the
district's other foundation school fund allotments.
[(b) The] cost of releasing the question and answer keys
under Section 39.023(e) [shall be paid from amounts appropriated to
the agency].
(b) After setting aside an appropriate amount in accordance
with this section, the commissioner shall proportionately reduce
each district's tier one allotment or, for a district that does not
receive a Tier I allotment, increase the district's payments under
Chapter 41. A reduction in tier one allotments under this section
does not affect the computation of the guaranteed amount of revenue
per student per cent of tax effort under Section 42.252.
(c) Any amount set aside under this section must be approved
by the Legislative Budget Board and the governor's office of
budget, planning, and policy.
SECTION 2D.20. 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 seven [9] through 12,
computed:
(A) as a longitudinal rate and an annual
completion rate by grade; and
(B) 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 end-of-course [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 measure of progress toward English language
proficiency under Section 29.065, for students of limited English
proficiency, as defined by Section 29.052;
(8) 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;
(9) [(8)] the 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;
(10) [(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 on
subsequent assessment instruments required under those sections,
aggregated by grade level and subject area;
(11) [(10)] the percentage of students exempted, by
exemption category, from the assessment program generally
applicable under this chapter; [and]
(12) [(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);
(13) 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); and
(14) the measure of reduction or increase in any
disparity between students at risk of dropping out of school, as
defined by Section 29.081, and all other students in:
(A) performance on assessment instruments
administered under Subchapter B; and
(B) high school graduation rates computed as
described by Subdivision (3).
SECTION 2D.21. 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 (9)
[(6)] and shall project the standards for each of those levels of
performance for succeeding years. For the indicator under
Subsection (b)(10) [(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 2D.22. Section 39.052, Education Code, is amended
by amending Subsection (b) and adding Subsection (d) 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 (12) [(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;
(4) a summary of the district's significant
noninstructional expenditures, as determined under Section
44.0072; and
(5) [(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.
(d) The commissioner shall develop a methodology for
categorizing campuses that have similar demographic
characteristics into peer groups for comparison purposes. In
establishing criteria to categorize campuses under this section,
the commissioner shall consider:
(1) the percentage of low income or educationally
disadvantaged students;
(2) the percentage of underrepresented minority
populations; and
(3) any other factor the commissioner determines
appropriate.
SECTION 2D.23. Section 39.072, Education Code, is amended
by amending Subsection (a) and adding Subsection (c-1) to read as
follows:
(a) The commissioner [State Board of Education] shall adopt
rules to evaluate the performance of school districts and to assign
to each district a performance rating as follows:
(1) exemplary (meets or exceeds state exemplary
standards);
(2) recognized (meets or exceeds required improvement
and within 10 percent of state exemplary standards);
(3) academically acceptable (below the exemplary and
recognized standards but exceeds the academically unacceptable
standards); or
(4) academically unacceptable (below the state
clearly unacceptable performance standard and does not meet
required improvement).
(c-1) A public school campus is subject to Sections 39.1321
and 39.1322 if the campus:
(1) is rated in the bottom 10 percent in the agency's
evaluation under Subsection (c); and
(2) does not meet the adequate yearly progress
standard determined by the commissioner and approved by the United
States Department of Education as provided by the No Child Left
Behind Act of 2001 (Pub. L. No. 107-110).
SECTION 2D.24. Section 39.131, Education Code, is amended
by amending Subsection (a) and adding Subsection (c) 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 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.
(c) The commissioner shall order the closure of all programs
operated under the charter of an open-enrollment charter school if
a majority of the campuses operated by the charter holder have
received an unsatisfactory rating as determined by the commissioner
for a period of two years or more.
SECTION 2D.24. Subchapter G, Chapter 39, Education Code, is
amended by adding Sections 39.1321 and 39.1322 to read as follows:
Sec. 39.1321. SANCTIONS FOR LOWEST-PERFORMING CAMPUSES.
(a) This section applies only to a campus if the campus:
(1) is rated in the bottom 10 percent in the agency's
evaluation under Section 39.072(c); and
(2) does not meet the adequate yearly progress
standard determined by the commissioner and approved by the United
States Department of Education as provided by the No Child Left
Behind Act of 2001 (Pub. L. No. 107-110).
(b) Notwithstanding Sections 39.131 and 39.132, the
commissioner:
(1) shall take the actions described by this section
for a campus described by Subsection (a) that is rated in the bottom
five percent in the agency's evaluation under Section 39.072(c);
and
(2) may take the actions described by this section for
any other campus described by Subsection (a).
(c) The commissioner shall identify campuses subject to
this section under Subsection (b) not later than August 1 following
the school year in which the campus was rated. If a campus is rated
as described by Subsection (a) for one school year, the
commissioner, not later than October 1 after identifying the
campus, 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, including providing supplemental services to students
as described by the No Child Left Behind Act of 2001 (Pub. L. No.
107-110).
SECTION 2D.25. Sections 39.182(a) and (b), Education Code,
are 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 the percentage of
graduating students who attain scores on the end-of-course
assessment instruments required under Section 39.023(c) that are
equivalent to a passing score on the assessment instrument required
under Section 51.3062;
(4) 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;
(5) [(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;
(6) [(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;
(7) [(6)] an evaluation of the correlation between
student grades and student performance on academic skills
assessment instruments required by Section 39.023;
(8) [(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;
(9) [(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);
(10) [(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;
(11) [(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;
(12) [(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);
(13) [(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;
(14) [(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;
(15) [(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;
(16) [(15)] a description of all funds received by and
each activity and expenditure of the agency;
(17) [(16)] a summary and analysis of the
instructional expenditures ratios and instructional employees
ratios of school districts computed under Section 44.0071;
(18) [(17)] a summary of the effect of deregulation,
including exemptions and waivers granted under Section 7.056 or
11.004 [39.112];
(19) [(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;
(20) [(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;
(21) [(20)] 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]
(22) a statement of the percentage of students scoring
at the proficient and advanced levels on the National Assessment of
Educational Progress; and
(23) [(21)] any additional information considered
important by the commissioner or the State Board of Education.
(b) In reporting the information required by Subsection
(a)(4) or (5) [(a)(3) or (4)], the agency may separately aggregate
the performance data of students enrolled in a special education
program under Subchapter A, Chapter 29, or a bilingual education or
special language program under Subchapter B, Chapter 29.
SECTION 2D.26. Section 39.183, Education Code, is amended
to read as follows:
Sec. 39.183. REGIONAL AND DISTRICT LEVEL REPORT. 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 regional
and district level report covering the preceding two school years
and containing:
(1) a summary of school district compliance with the
student/teacher ratios and class-size limitations prescribed by
Sections 25.111 and 25.112, including:
(A) the number of campuses and classes at each
campus granted an exception from Section 25.112; and
(B) the performance rating under Subchapter D of
each campus granted an exception from Section 25.112;
(2) a summary of the exemptions and waivers granted to
school districts under Section 7.056 or 11.004 [39.112] and a
review of the effectiveness of each campus or district following
deregulation;
(3) an evaluation of the performance of the system of
regional education service centers based on the indicators adopted
under Section 8.101 and client satisfaction with services provided
under Subchapter B, Chapter 8;
(4) an evaluation of accelerated instruction programs
offered under Section 28.006, including an assessment of the
quality of such programs and the performance of students enrolled
in such programs; and
(5) the number of classes at each campus that are
currently being taught by individuals who are not certified in the
content areas of their respective classes.
SECTION 2D.27. Section 39.202, Education Code, is amended
to read as follows:
Sec. 39.202. DEVELOPMENT AND IMPLEMENTATION. (a) The
commissioner shall, in consultation with the comptroller, develop
and implement a financial accountability rating system for school
districts in this state that will:
(1) provide additional transparency to public
education finance;
(2) establish financial accountability standards
commensurate with academic standards reaching to the campus level;
and
(3) enable the commissioner and district
administrators to provide meaningful financial oversight and
improvement.
(b) The system must include standards [uniform indicators]
adopted by the commissioner by which to measure a district's
financial management performance. The commissioner shall develop a
uniform system for reporting district and campus financial
information. The commissioner by rule shall require each district
to use standard accepted cost accounting practices for reporting
district and campus level expenditures.
(c) The uniform system adopted under Subsection (b) must
include standards to determine a district's actual financial
expenditures for each campus. A district must identify and report
each expenditure separately and may not report district-wide
averages or use other allocation formulas other than district level
expenditures for overhead or administrative costs, which may be
allocated to campuses. Required reporting standards include:
(1) reporting actual expenditures for personnel
employed at the campus, identified separately by administrative,
instructional, and support assignments;
(2) reporting actual operations and maintenance
expenses incurred on the campus;
(3) reporting costs allocated to each campus for
shared services and district support;
(4) identifying expenditures by administrative,
instructional, or support services; and
(5) any additional information required by the
commissioner to ensure reporting of actual educational costs for
specific campuses.
(d) The commissioner shall develop and implement:
(1) procedures based on standards developed under
Subsection (c) for reporting campus financial information; and
(2) a format for campus financial statements.
(e) A district and campus shall report information at least
quarterly each year.
(f) The essential purposes to be accomplished by the
financial accountability system are to:
(1) collect, store, and maintain appropriate data that
is timely and accurate for administering the public education
system;
(2) use a software application that provides a
comprehensive measurement and control system capable of providing
relevant and timely financial performance information as described
by Subsection (g);
(3) use the measurement and control systems described
by Subdivision (2) to evaluate and set appropriate financial
performance standards;
(4) provide access to financial analysis and reporting
to a broad range of interested parties, including agency staff,
district administrators and staff, the board of trustees of school
districts, state officials, parents, and other public interest
groups;
(5) allocate appropriate resources to implement and
maintain the financial accountability system; and
(6) provide longitudinal trend and comparison data at
the district and campus levels.
(g) The software application used for the financial
accountability system under this section must be designed to
systematically evaluate school districts, component campuses, and
open-enrollment charter schools. The system must:
(1) identify a district or campus that achieves a high
level of academic performance and operates in a cost-effective
manner as a basis for financial best practices analysis and
financial performance standards development;
(2) provide a timely summary and detailed financial
analysis of information for school districts and open-enrollment
charter schools;
(3) provide information and analysis on student
demographics, teacher demographics, and academic performance to
correlate with resource allocation;
(4) report financial analysis information for all
state, region, district, and campus levels;
(5) provide information to develop financial and
staffing models that accommodate differences in student
demographics and regional cost variation, including an analysis of
variances to actual costs;
(6) collect, store, and maintain at least five years
of historical data and perform longitudinal analysis on that data;
(7) use individual districts, campuses, and peer
groups to compare and rank financial performance results, identify
performance gaps, and measure annual progress in closing
performance gaps; and
(8) provide performance indices and performance
levels compatible with the agency's Performance Based Monitoring
Analysis System.
SECTION 2D.28. Section 39.203(b), Education Code, is
amended to read as follows:
(b) The annual financial management report must include:
(1) a description of the district's financial
management performance based on a comparison, provided by the
agency, of the district's performance on the standards [indicators]
adopted under Section 39.202 [39.202(b)] to:
(A) state-established standards; and
(B) the district's previous performance on the
standards adopted under Section 39.202 [indicators]; [and]
(2) a description of the district's actual
expenditures for each campus for the standards described by Section
39.202(c) and any difference between those campus expenditures the
foundation school program allotments received for the campus;
(3) the individual campus financial statements
required by Section 39.202; and
(4) any descriptive information required by the
commissioner.
SECTION 2D.28. Subchapter A, Chapter 44, Education Code, is
amended by adding Section 44.0072 to read as follows:
Sec. 44.0072. NONINSTRUCTIONAL EXPENDITURES. (a) Each
fiscal year, a school district shall compute and report through the
Public Education Information Management System (PEIMS) to the
commissioner:
(1) the district's significant noninstructional
expenditures for the preceding fiscal year, as determined by the
commissioner; and
(2) any money spent by the district during the
preceding fiscal year:
(A) on dues or contributions to a
noninstructional group, club, committee, organization, or
association, including dues or contributions used for the purpose
of lobbying; and
(B) on expenditures directly to a lobbyist for
the sole purpose of lobbying.
(b) The commissioner may determine, in a manner consistent
with Section 44.0071, whether an expenditure is noninstructional.
SECTION 2D.29. Section 51.3062(q), Education Code, is
amended to read as follows:
(q) A student who has achieved scores [a score] set by the
board on end-of-course assessment instruments [an exit-level
assessment instrument] required under Section 39.023 is exempt from
the requirements of this section. The exemption is effective for
the three-year period following the date a student takes the last
assessment instrument required for purposes of this section and
achieves the standard set by the board. This subsection does not
apply during any period for which the board designates the
end-of-course assessment instruments [exit-level assessment
instrument] required under Section 39.023 as the primary assessment
instrument under this section, except that the three-year period
described by this subsection remains in effect for students who
qualify for an exemption under this subsection [section] before
that period.
SECTION 2D.30. (a) Not later than the 2006-2007 school
year, the Texas Education Agency shall collect information
concerning:
(1) the measure of progress toward English language
proficiency for purposes of Section 39.051(b)(7), Education Code,
as amended by this Act; and
(2) value-added student achievement for purposes of
Section 39.051(b)(8), Education Code, as amended by this Act.
(b) Not later than the 2007-2008 school year, the Texas
Education Agency shall include, in evaluating the performance of
school districts, campuses, and open-enrollment charter schools
under Subchapter D, Chapter 39, Education Code:
(1) the measure of progress toward English language
proficiency under Section 39.051(b)(7), Education Code, as amended
by this Act; and
(2) value-added student achievement under Section
39.051(b)(8), Education Code, as amended by this Act.
SECTION 2D.31. The commissioner of education shall:
(1) develop a methodology for categorizing campuses
for comparison purposes under Section 39.052(d), Education Code, as
added by this Act, not later than January 1, 2006; and
(2) develop and implement the reporting procedures
for:
(A) districts to prepare and distribute annual
financial management reports under Section 39.203, Education Code,
as amended by this Act, beginning with the 2006-2007 school year;
and
(B) campuses to provide financial information
under Section 39.202, Education Code, as amended by this Act,
beginning with the 2007-2008 school year.
PART E. BILINGUAL EDUCATION AND SPECIAL LANGUAGE PROGRAMS
SECTION 2E.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 2E.02. Section 29.056(g), Education Code, is
amended to read as follows:
(g) A district may transfer a student of limited English
proficiency out of a bilingual education or special language
program for the first time or a subsequent time if the student is
able to participate equally in a regular all-English instructional
program as determined by:
(1) 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) satisfactory performance on the reading
assessment instrument under Section 39.023(a) or the English I or
II assessment instrument under Section 39.023(c), as applicable,
with the assessment instrument administered in English, or, if the
student is enrolled in the first or second grade, 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; and
(3) other indications of a student's overall progress,
including criterion-referenced test scores, subjective teacher
evaluation, and parental evaluation.
SECTION 2E.03. Subchapter B, Chapter 29, Education Code, is
amended by adding Section 29.065 to read as follows:
Sec. 29.065. MEASURE OF PROGRESS TOWARD ENGLISH LANGUAGE
PROFICIENCY. The commissioner by rule shall develop a longitudinal
measure of progress toward English language proficiency under which
a student of limited English proficiency is evaluated from the time
the student enters public school until, for two consecutive school
years, the student scores at a specific level determined by the
commissioner on the reading assessment instrument under Section
39.023(a) or the English I or II assessment instrument under
Section 39.023(c), as applicable. The commissioner shall:
(1) as part of the measure of progress, include
student advancement from one proficiency level to a higher level
under the reading proficiency in English assessment system
developed under Section 39.027(e) and from the highest level under
that assessment system to the level determined by the commissioner
under this section on the reading assessment instrument under
Section 39.023(a) or the English I or II assessment instrument
under Section 39.023(c), as applicable; and
(2) to the extent practicable in developing the
measure of progress, use applicable research and analysis done in
developing an annual measurable achievement objective as required
by Section 3122, No Child Left Behind Act of 2001 (20 U.S.C. Section
6842).
SECTION 2E.04. 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 (10) [(7)] and the district's current
special education compliance status with the agency shall be the
main considerations of the agency in the rating of the district
under this section. Additional criteria in the rules may include
consideration of:
(1) compliance with statutory requirements and
requirements imposed by rule of the State Board of Education under
specific statutory authority that relate to:
(A) reporting data through the Public Education
Information Management System (PEIMS);
(B) the high school graduation requirements
under Section 28.025; or
(C) an item listed in Sections
7.056(e)(3)(C)-(I) that applies to the district;
(2) the effectiveness of the district's programs for
special populations; and
(3) the effectiveness of the district's career and
technology programs.
(c) The agency shall evaluate against state standards and
shall, not later than August 1 of each year, report the performance
of each campus in a district and each open-enrollment charter
school on the basis of the campus's performance on the indicators
adopted under Sections 39.051(b)(1) through (10) [(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 2E.05. 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 (10) [(7)] and determine if a change in the
accreditation status of the district is warranted. The
commissioner may determine how all indicators adopted under Section
39.051(b) may be used to determine accountability ratings and to
select districts and campuses for acknowledgment.
(b) Each annual review shall include an analysis of the
indicators under Sections 39.051(b)(1) through (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 2E.06. 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 (10)
[(7)] of one or more campuses in a district, the agency may conduct
an on-site evaluation of those campuses only.
PART F. HIGH ACADEMIC ACHIEVEMENT PROGRAMS
SECTION 2F.01. Subchapter D, Chapter 29, Education Code, is
amended by adding Section 29.127 to read as follows:
Sec. 29.127. TEXAS GOVERNOR'S SCHOOLS. (a) In this
section, "public senior college or university" and "private or
independent institution of higher education" have the meaning
assigned by Section 61.003.
(b) A Texas governor's school is a summer residential
program for high-achieving high school students. A Texas
governor's school program may include any or all of the following
educational curricula:
(1) mathematics and science;
(2) humanities; or
(3) leadership and public policy.
(c) A public senior college or university or private or
independent institution of higher education may apply to the
commissioner to administer a Texas governor's school program under
this section. The commissioner shall give preference to a public
senior college or university that applies in cooperation with a
nonprofit association. The commissioner shall give additional
preference if the nonprofit association receives foundation school
funds that may be used to finance the program.
(d) The commissioner may approve an application under this
section only if the applicant:
(1) applies within the period and in the manner
required by rule adopted by the commissioner;
(2) submits a program proposal that includes:
(A) a curriculum consistent with Subsection (b);
(B) criteria for selecting students to
participate in the program;
(C) a statement of the length of the program,
which must be at least three weeks; and
(D) a statement of the location of the program;
(3) agrees to use a grant under this section only for
the purpose of administering a program; and
(4) satisfies any other requirements established by
rule adopted by the commissioner.
(e) From funds appropriated for the purpose, the
commissioner may make a grant to pay the costs of administering a
Texas governor's school program to a public senior college or
university or private or independent institution of higher
education whose application is approved under this section.
(f) The commissioner may adopt other rules necessary to
implement this section.
SECTION 2F.02. Section 39.051, Education Code, is amended
by adding Subsection (b-1) to read as follows:
(b-1) In addition to the indicators adopted under
Subsection (b), the State Board of Education shall adopt the
following indicators relating to high academic achievement to be
considered in assigning a district an exemplary performance rating
under Section 39.072:
(1) the percentage of students, disaggregated by race,
ethnicity, gender, and socioeconomic status, who are enrolled in an
educational program for gifted and talented students;
(2) student results on advanced placement and
international baccalaureate examinations, including the percentage
of students scoring three or higher on the advanced placement
examinations and the percentage of students scoring four or higher
on the international baccalaureate examinations;
(3) student results on the Scholastic Assessment Test
(SAT) and the American College Test (ACT);
(4) the percentage of students scoring in the top five
percent on nationally recognized norm-referenced assessment
instruments;
(5) the percentage of high school students enrolled in
an advanced course;
(6) the percentage of students achieving commended
performance, as determined by the State Board of Education, on an
assessment instrument required under Section 39.023(a), (c), or
(l);
(7) the percentage of students completing the
recommended or advanced high school program established under
Section 28.025; and
(8) the percentage of the district's graduating
students who enroll in an institution of higher education for the
academic year following graduation.
SECTION 2F.03. Section 39.053(a), Education Code, is
amended to read as follows:
(a) Each board of trustees shall publish an annual report
describing the educational performance of the district and of each
campus in the district that includes uniform student performance
and descriptive information as determined under rules adopted by
the commissioner. The annual report must also include:
(1) campus performance objectives established under
Section 11.253 and the progress of each campus toward those
objectives, which shall be available to the public;
(2) the performance rating for the district as
provided under Section 39.072(a) and the performance rating of each
campus in the district as provided under Section 39.072(c);
(3) the district's current special education
compliance status with the agency;
(4) a statement of the number, rate, and type of
violent or criminal incidents that occurred on each district
campus, to the extent permitted under the Family Educational Rights
and Privacy Act of 1974 (20 U.S.C. Section 1232g);
(5) information concerning school violence prevention
and violence intervention policies and procedures that the district
is using to protect students; [and]
(6) the findings that result from evaluations
conducted under the Safe and Drug-Free Schools and Communities Act
of 1994 (20 U.S.C. Section 7101 et seq.) and its subsequent
amendments; [and]
(7) information received under Section 51.403(e) for
each high school campus in the district, presented in a form
determined by the commissioner; and
(8) information relating to high academic achievement
in the district, as determined by the district's performance on the
indicators under Section 39.051(b-1).
SECTION 2F.04. Section 39.072, Education Code, is amended
by adding Subsection (c-1) to read as follows:
(c-1) For purposes of assigning a district, campus, or
open-enrollment charter school a performance rating of exemplary
under this section, the agency shall consider the district's,
campus's, or school's performance on the indicators relating to
high academic achievement under Section 39.051(b-1). This
information is in addition to any other indicators or factors
considered by the agency in assigning a performance rating.
SECTION 2F.05. Section 39.0721(c), Education Code, is
amended to read as follows:
(c) The performance standards on which a gold performance
rating is based should include:
(1) student proficiency on:
(A) assessment instruments administered under
Sections 39.023(a), (c), and (l); and
(B) other measures of proficiency determined by
the commissioner;
(2) student performance on one or more nationally
recognized norm-referenced assessment instruments;
(3) improvement in student performance;
(4) performance on indicators relating to high
academic achievement under Section 39.051(b-1);
(5) [(4)] in the case of middle or junior high school
campuses, student proficiency in mathematics, including algebra;
and
(6) [(5)] in the case of high school campuses:
(A) the extent to which graduating students are
academically prepared to attend institutions of higher education;
(B) the percentage of students who take advanced
placement tests and student performance on those tests; and
(C) the percentage of students who take and
successfully complete advanced academic courses or college-level
course work offered through dual credit programs provided under
agreements between high schools and institutions of higher
education.
SECTION 2F.06. (a) Not later than the 2006-2007 school
year, the Texas Education Agency shall collect information
concerning high academic achievement for purposes of Section
39.051(b-1), Education Code, as added by this Act.
(b) Not later than the 2007-2008 school year, the Texas
Education Agency shall include information concerning high
academic achievement for purposes of Section 39.051(b-1),
Education Code, as added by this Act, in evaluating the performance
of school districts, campuses, and open-enrollment charter schools
under Subchapter D, Chapter 39, Education Code.
(c) Not later than the 2007-2008 school year, the Texas
Education Agency shall include the information required by Section
39.182(a)(21), Education Code, as amended by this Act, in the
agency's comprehensive annual report under Section 39.182,
Education Code.
ARTICLE 3. CONFORMING AMENDMENTS
SECTION 3.01. Effective September 1, 2006, Section
31.025(a), Education Code, is amended to read as follows:
(a) The State Board of Education shall set a limit on the
cost that may be paid using the allotment provided by Section 42.159
[from the state textbook fund] for a textbook placed on the
conforming or nonconforming list for a particular subject and grade
level. The board may not reject a textbook for placement on the
conforming or nonconforming list because the textbook's price
exceeds the limit established under this subsection.
SECTION 3.02. Effective September 1, 2006, Section 31.1031,
Education Code, is amended to read as follows:
Sec. 31.1031. SHORTAGE OF REQUISITIONED TEXTBOOKS. If a
school district or open-enrollment charter school does not have a
sufficient number of copies of a textbook used by the district or
school for use during the following school year, and a sufficient
number of additional copies will not be available from the
depository or the publisher within the time specified by Section
31.151(a)(8), the district or school is entitled to:
(1) be reimbursed by the state [from the state
textbook fund], at a rate and in the manner provided by State Board
of Education or commissioner rule, for the purchase of a sufficient
number of used adopted textbooks; or
(2) return currently used textbooks to the
commissioner in exchange for sufficient copies, if available, of
other textbooks on the conforming or nonconforming list to be used
during the following school year.
SECTION 3.03. Effective September 1, 2006, 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. Money [The
district shall send money] from the sale of textbooks may be used
only to purchase items that may be purchased lawfully using the
allotment provided by Section 42.159 [to the commissioner as
required by the commissioner. The commissioner shall deposit the
money in the state textbook fund].
SECTION 3.04. Effective September 1, 2006, Section
31.151(d), Education Code, is amended to read as follows:
(d) A penalty collected under this section shall be
deposited to the credit of the foundation school [state textbook]
fund.
SECTION 3.05. Effective September 1, 2006, Section
31.152(b), Education Code, is amended to read as follows:
(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 a textbook; and
(3) could not be lawfully purchased with funds from
the allotment provided by Section 42.241 [state textbook fund].
SECTION 3.06. Section 32.005, Education Code, is amended by
amending Subsection (a) and adding Subsection (d) to read as
follows:
(a) Each school district is entitled to an allotment of $70
[$30] for each student in average daily attendance or a different
amount for any year provided by appropriation.
(d) This section expires August 1, 2006.
SECTION 3.07. 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 textbook funds and any other funds provided to school districts
for technology [and technology allotment funds under Section
31.021(b)(2)] in a manner that facilitates the development and use
of the portal.
SECTION 3.08. Section 42.005(a), Education Code, is amended
by adding Subdivision (3) to read as follows:
(3) for a district that operates under a flexible
school day program under Section 29.0822, the average daily
attendance as calculated by the commissioner in accordance with
Section 29.0822(d).
SECTION 3.09. Section 42.102 is amended to read as follows:
(a) The 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.
(b) The cost of education adjustment is the 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. The
commissioner shall modify the adjustment as necessary to compensate
for the equal application of the adjustment to each of the two tiers
of the system.
SECTION 3.10. (a) Section 403.302(j), Education Code, is
amended to read as follows:
(j) For purposes of Section 42.2511, Education Code, the
comptroller shall certify to the commissioner of education:
(1) a final value for each school district computed on
a residence homestead exemption under Section 1-b(c), Article VIII,
Texas Constitution, of $15,000 [$5,000]; and
(2) a final value for each school district computed
on:
(A) a residence homestead exemption under
Section 1-b(c), Article VIII, Texas Constitution, of $45,000
[$15,000]; and
(B) the effect of the additional limitation on
tax increases under Section 1-b(d), Article VIII, Texas
Constitution.
(b) This Section takes effect only if H.J.R. No.___, Acts of
the 79th Legislature, Regular Session, 2005, takes. If that
resolution does not take effect, this Section has no effect.
ARTICLE 4. REPEALER; APPLICABILITY; EFFECTIVE DATE
SECTION 4.01. (a) Sections 1-3, Chapter 201, Acts of the
78th Legislature, Regular Session, 2003, are repealed.
(b) Chapter 313, Acts of the 78th Legislature, Regular
Session, 2003, is repealed.
(c) Sections 21.357, 39.023(j), 41.002(b), 41.002(e),
41.002(f), 41.002(g), 42.103(e), and 42.2514 of the Education Code
are repealed.
(d) Effective September 1, 2006, Section 31.021, Education
Code, is repealed.
SECTION 4.02. Except as otherwise provided by this Act,
this Act applies beginning with the 2005-2006 school year.
SECTION 4.03. Except as otherwise provided by this Act,
this Act takes effect September 1, 2005. This Act takes effect only
if H.B. No. 3, Acts of the 79th Legislature, Regular Session, 2005,
becomes law. If that bill does not become law, this Act has no
effect.