By:  Jackson                                                      S.B. No. 422

A BILL TO BE ENTITLED
AN ACT
relating to the continuation and functions of the Texas Education Agency and regional education service centers; providing a penalty. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. TEXAS EDUCATION AGENCY AND REGIONAL
EDUCATION SERVICE CENTERS
SECTION 1.01. Section 5.001, Education Code, is amended by adding Subdivision (1-a) to read as follows: (1-a) "Charter school" means any school or program that is operating under a charter authorized by Chapter 12 or other law, including: (A) a home-rule school district under Subchapter B, Chapter 12; (B) a campus or campus program under Subchapter C, Chapter 12; (C) an open-enrollment charter school under Subchapter D, Chapter 12; and (D) a college or university charter school under Subchapter E, Chapter 12. SECTION 1.02. Section 7.004, Education Code, is amended to read as follows: Sec. 7.004. SUNSET PROVISION. The Texas Education Agency is subject to Chapter 325, Government Code (Texas Sunset Act). Unless continued in existence as provided by that chapter, the agency is abolished September 1, 2017 [2005]. SECTION 1.03. Subchapter A, Chapter 7, Education Code, is amended by adding Section 7.010 to read as follows: Sec. 7.010. BEST PRACTICES. (a) The agency and the regional education service centers shall solicit and collect from exemplary or recognized school districts and open-enrollment charter schools, as rated under Section 39.072, best practices information and shall disseminate that information. The agency and the regional education service centers shall enter into a memorandum of understanding that establishes the respective duties of the agency and the regional education service centers in soliciting, collecting, and disseminating the best practices information. (b) The best practices information may include: (1) information concerning available programs, products, and policies that have been successfully adopted or developed and used by school districts or open-enrollment charter schools; (2) specific examples of successful best practices; and (3) resources available to assist school districts and open-enrollment charter schools in complying with applicable state or federal education laws. (c) The best practices information must include information collected by the agency or a regional education service center concerning the effective use of online courses, including: (1) methods for using online courses to provide curriculum solutions; (2) information to assist school districts and open-enrollment charter schools in investigating the quality of online courses; and (3) a list of funding sources available for various types of online courses. (d) The agency and the regional education service centers are not required to evaluate and may not endorse the best practices information collected under this section. (e) The agency and the regional education service centers shall develop incentives for school districts and open-enrollment charter schools to implement best practices. SECTION 1.04. Section 7.027, Education Code, as added by Chapter 201, Acts of the 78th Legislature, Regular Session, 2003, is redesignated as Section 7.028, Education Code, and amended to read as follows: Sec. 7.028 [7.027]. LIMITATION ON COMPLIANCE MONITORING. (a) Except as provided by Section 29.001(5), 29.010(a), [39.074,] or 39.075, the agency may monitor compliance with requirements applicable to a process or program provided by a school district, campus, program, or school granted charters under Chapter 12, including the process described by Subchapter F, Chapter 11, or a program described by Subchapter B, C, D, E, F, H, or I, Chapter 29, Subchapter A, Chapter 37, or Section 38.003, and the use of funds provided for such a program under Subchapter C, Chapter 42, only as necessary to ensure: (1) compliance with federal law and regulations; (2) financial accountability, including compliance with grant requirements; and (3) data integrity for purposes of: (A) the Public Education Information Management System (PEIMS); and (B) accountability under Chapter 39. (b) The board of trustees of a school district or the governing body of an open-enrollment charter school has primary responsibility for ensuring that the district or school complies with all applicable requirements of state educational programs. SECTION 1.05. Subchapter B, Chapter 7, Education Code, is amended by adding Sections 7.032 and 7.033 to read as follows: Sec. 7.032. RECORDS OF COMPLAINTS. (a) The agency shall maintain a system to promptly and efficiently act on complaints filed with the agency that the agency has the authority to resolve. The agency shall maintain: (1) information about the parties to the complaint and the subject matter of the complaint; (2) a summary of the results of the review or investigation of the complaint; and (3) information about the disposition of the complaint. (b) The agency shall make information available describing its procedures for complaint investigation and resolution. (c) The agency shall periodically notify the parties of the status of the complaint until final disposition of the complaint. Sec. 7.033. COMPREHENSIVE MONITORING SYSTEM. To the extent permissible under Section 7.028, the agency shall develop and implement a comprehensive, integrated monitoring system for monitoring school district and charter school overall performance under and compliance with federal and state education laws. The system must incorporate performance and compliance information collected by various agency divisions for each school district and charter school, including information relating to: (1) data integrity; (2) the performance of district or school programs; (3) financial accountability; (4) academic accountability; (5) previous history of compliance; (6) complaints issues; and (7) governance issues. SECTION 1.06. Subsections (a) and (d), Section 7.057, Education Code, are amended to read as follows: (a) Except as provided by Subsection (e) or Section 7.0571, a person may appeal in writing to the commissioner if the person is aggrieved by: (1) the school laws of this state; or (2) actions or decisions of any school district board of trustees that violate: (A) the school laws of this state; or (B) a provision of a written employment contract between the school district and a school district employee, if a violation causes or would cause monetary harm to the employee. (d) Except as provided by Section 7.0571, a [A] person aggrieved by an action of the agency or decision of the commissioner may appeal to a district court in Travis County. An appeal must be made by serving the commissioner with citation issued and served in the manner provided by law for civil suits. The petition must state the action or decision from which the appeal is taken. At trial, the court shall determine all issues of law and fact, except as provided by Section 33.081(g). SECTION 1.07. Subchapter C, Chapter 7, Education Code, is amended by adding Sections 7.0571, 7.061, 7.062, and 7.063 to read as follows: Sec. 7.0571. INFORMAL REVIEW BY COMMISSIONER. (a) The commissioner shall adopt rules under which a school district, open-enrollment charter school, or other person that wishes to challenge an agency decision made under Chapter 39, 41, 42, or 46 must petition the commissioner for an informal review by the commissioner of the decision. (b) The commissioner may limit a review under this section to a written submission of any issue identified by the commissioner. (c) A final decision under this section is final and may not be appealed under Section 7.057 or any other law. Sec. 7.061. TECHNOLOGY POLICY. The commissioner shall implement a policy requiring the agency to use appropriate technological solutions to improve the agency's ability to perform its functions. The policy must ensure that the public is able to interact with the agency on the Internet. Sec. 7.062. NEGOTIATED RULEMAKING AND ALTERNATIVE DISPUTE RESOLUTION. (a) The commissioner shall develop and implement a policy to encourage the use of: (1) negotiated rulemaking procedures under Chapter 2008, Government Code, for the adoption of agency rules; and (2) appropriate alternative dispute resolution procedures under Chapter 2009, Government Code, to assist in the resolution of internal and external disputes under the agency's jurisdiction. (b) The agency's procedures relating to alternative dispute resolution must conform, to the extent possible, to any model guidelines issued by the State Office of Administrative Hearings for the use of alternative dispute resolution by state agencies. (c) The commissioner shall designate a trained person to: (1) coordinate the implementation of the policy developed under Subsection (a); (2) serve as a resource for any training needed to implement the procedures for negotiated rulemaking or alternative dispute resolution; and (3) collect data concerning the effectiveness of those procedures, as implemented by the agency. Sec. 7.063. ASSESSMENT OF EDUCATOR WORKLOAD IN ADOPTION OF RULES. Before adopting a new rule, the commissioner shall assess whether the proposed rule will impose additional paperwork requirements on educators and attempt to minimize any such additional requirements. SECTION 1.08. Chapter 7, Education Code, is amended by adding Subchapter E to read as follows:
SUBCHAPTER E. PERFORMANCE-BASED GRANT SYSTEM
Sec. 7.151. PERFORMANCE-BASED GRANT SYSTEM. (a) The agency shall implement a comprehensive performance-based grant system to collect and report grant performance and spending information and to use that information in making future grants. (b) The grant system must: (1) connect grant activities and funding to student academic performance; and (2) provide for efficient grant application and reporting procedures for grant programs administered by the agency. Sec. 7.152. GRANT PROGRAM PROCEDURES. The agency shall ensure that: (1) the mission, purpose, and objectives of each agency grant program supports student academic performance or another public education mission, objective, or goal specified under Sections 4.001 and 4.002; (2) each agency grant program coordinates with other grant programs administered by the agency; (3) grant programs with similar objectives have common performance measures; and (4) the most efficient methods for coordinating grant objectives, grant activities, academic performance measures, and funding are used in the agency's grant application and reporting systems. Sec. 7.153. GRANT ELIGIBILITY NOTIFICATION. The agency may use existing data to identify and notify an eligible school district or charter school of the opportunity to apply for a state-funded discretionary grant. Sec. 7.154. APPLICATION FOR STATE-FUNDED FORMULA GRANTS. The agency shall develop one or more consolidated applications to be used by school districts and charter schools in applying for any state-funded formula grant administered by the agency. Sec. 7.155. AVAILABILITY OF GRANT INFORMATION. The agency shall ensure that information relating to the grant system is available to the legislature and the public. Sec. 7.156. BEST PRACTICES GRANT INFORMATION. (a) The agency, in coordination with regional education service centers, shall use data relating to grant programs, including grant spending and performance information, to identify successful grant programs. Based on the identification of successful grant programs, each regional education service center shall provide information concerning those programs to the school districts in the service center's region. (b) This section applies beginning with the 2009-2010 school year. This subsection expires June 1, 2010. Sec. 7.157. DEVELOPMENT OF GRANT SYSTEM. (a) In developing the performance-based grant system, the agency shall: (1) identify each area of data collected for grant programs and the method in which the agency collects the data; (2) determine whether grant data that a school district or charter school is required to collect is useful and supports: (A) a grant program's objectives; and (B) the goals for academic performance and accountability or another public education mission, objective, or goal; (3) determine whether grant data is analyzed and disseminated efficiently; and (4) review the agency's policies, procedures, and reporting requirements relating to grant programs administered by the agency to simplify and make more efficient the grant application, award, and reporting processes for school districts and charter schools. (b) This section expires June 1, 2010. Sec. 7.158. GRANT ADMINISTRATION DURING CERTAIN SCHOOL YEARS; STATUS REPORT. (a) Not later than January 1, 2007, the agency shall provide the legislature with a status report concerning the agency's development of the grant system. The report may suggest any statutory changes needed to facilitate a full transition to a performance-based grant system. (b) Beginning with the 2009-2010 school year, the agency shall make the performance-based grant system fully available to school districts and charter schools. (c) This section expires June 1, 2010. SECTION 1.09. Subchapter A, Chapter 8, Education Code, is amended by adding Section 8.0031 to read as follows: Sec. 8.0031. TRAINING FOR MEMBERS OF BOARD OF DIRECTORS. (a) The commissioner shall adopt rules prescribing training for members of regional education service center boards of directors. The training curriculum may include: (1) an overview of this code and any rules adopted under this code; (2) a review of recent state and federal education legislation, rules, and regulations; (3) a review of the powers and duties of a regional education service center board of directors; and (4) a review of any statewide or regional strategic planning applicable to regional education service centers. (b) A member of a regional education service center board of directors must complete any training required by commissioner rule. SECTION 1.10. Subsections (b), (c), and (d), Section 8.051, Education Code, are amended to read as follows: (b) Each regional education service center shall annually develop and submit to the commissioner for approval a plan for improvement. Each plan must include the purposes and description of the services the center will provide to: (1) campuses rated academically unacceptable [identified as low-performing based on the indicators adopted] under Section 39.072 [39.051]; (2) the lowest-performing campuses in the region; and (3) other campuses. (c) Each regional education service center shall provide services that enable school districts to operate more efficiently and economically, including collecting and disseminating: (1) best practices information as provided by Section 7.010; and (2) information concerning successful grant programs to school districts as provided by Section 7.156. (d) Each regional education service center shall maintain core services for purchase by school districts and campuses. The core services are: (1) training and assistance in teaching each subject area assessed under Section 39.023; (2) training and assistance in providing each program that qualifies for a funding allotment under Section 42.151, 42.152, 42.153, or 42.156; (3) assistance specifically designed for a school district or campus rated academically unacceptable under Section 39.072 [39.072(a) or a campus whose performance is considered unacceptable based on the indicators adopted under Section 39.051]; (4) training and assistance to teachers, administrators, members of district boards of trustees, and members of site-based decision-making committees; (5) assistance specifically designed for a school district that is considered out of compliance with state or federal special education requirements, based on the agency's most recent compliance review of the district's special education programs; and (6) assistance in complying with state laws and rules. SECTION 1.11. Subchapter A, Chapter 12, Education Code, is amended by adding Sections 12.004 and 12.005 to read as follows: Sec. 12.004. MONITORING OF CERTAIN CHARTER SCHOOLS. (a) This section applies only to a charter school that does not receive an academic performance rating under Section 39.072 or under an alternative education accountability system for alternative education campuses for at least two consecutive school years. (b) The agency shall monitor a charter school to which this section applies to assess: (1) the quality of the school's data; and (2) the school's compliance with assessment requirements under Chapter 39. Sec. 12.005. FINANCIAL ACCOUNTABILITY. (a) In this section: (1) "Parent" includes a guardian or other person having lawful control of a student. (2) "System" means the financial accountability rating system. (b) The commissioner shall develop and implement a financial accountability rating system for charter schools. The system must include uniform indicators adopted by the commissioner by which to measure a charter school's financial management performance. (c) The commissioner shall develop, as part of the system, a reporting procedure under which: (1) each charter school is required to prepare and distribute an annual financial management report; and (2) the public is provided an opportunity to comment on the report at a hearing. (d) The annual financial management report must include: (1) a description of the charter school's financial management performance based on a comparison, provided by the agency, of the school's performance on the indicators adopted under Subsection (b) to: (A) state-established standards; and (B) the school's previous performance on the indicators; and (2) any descriptive information required by the commissioner. (e) The report may include: (1) information concerning the charter school's: (A) financial allocations; (B) financial strengths; (C) operating cost management; (D) personnel management; (E) debt management; (F) cash management; (G) budgetary planning; (H) overall business management; (I) compliance with rules; and (J) data quality; and (2) any other information the school's governing body determines to be necessary and useful. (f) The governing body of each charter school shall hold a public hearing on the report. The governing body shall provide notice of the hearing to the parents of students enrolled in the school. In addition to other notice required by law, notice of the hearing must be provided: (1) to a newspaper of general circulation in the school district in which the charter school is located; and (2) through electronic mail to media serving the school district in which the charter school is located. (g) After the hearing, the governing body of the charter school shall provide the report to the parents of students enrolled in the school. (h) The commissioner shall adopt rules as necessary for the administration of this section. SECTION 1.12. Subsection (b), Section 12.013, Education Code, is amended to read as follows: (b) A home-rule school district is subject to: (1) a provision of this title establishing a criminal offense; (2) a provision of this title relating to limitations on liability; and (3) a prohibition, restriction, or requirement, as applicable, imposed by this title or a rule adopted under this title, relating to: (A) the Public Education Information Management System (PEIMS) to the extent necessary to monitor compliance with this subchapter as determined by the commissioner; (B) educator certification under Chapter 21 and educator rights under Sections 21.407, 21.408, and 22.001; (C) criminal history records under Subchapter C, Chapter 22; (D) student admissions under Section 25.001; (E) school attendance under Sections 25.085, 25.086, and 25.087; (F) inter-district or inter-county transfers of students under Subchapter B, Chapter 25; (G) elementary class size limits under Section 25.112, in the case of any campus in the district that is rated academically unacceptable [considered low-performing] under Section 39.072 [39.132]; (H) high school graduation under Section 28.025; (I) special education programs under Subchapter A, Chapter 29; (J) bilingual education under Subchapter B, Chapter 29; (K) prekindergarten programs under Subchapter E, Chapter 29; (L) safety provisions relating to the transportation of students under Sections 34.002, 34.003, 34.004, and 34.008; (M) computation and distribution of state aid under Chapters 31, 42, and 43; (N) extracurricular activities under Section 33.081; (O) health and safety under Chapter 38; (P) public school accountability under Subchapters B, C, D, and G, Chapter 39; (Q) equalized wealth under Chapter 41; (R) a bond or other obligation or tax rate under Chapters 42, 43, and 45; and (S) purchasing under Chapter 44. SECTION 1.13. Section 12.115, Education Code, is amended by amending Subsection (b) and adding Subsection (c) to read as follows: (b) The action the commissioner takes under Subsection (a) shall be based on the best interest of the school's students, the severity of the violation, [and] any previous violation the school has committed, and the extent to which the school is in compliance with any state or federal programmatic or financial requirement applicable to the school. (c) This section may not be construed to limit the commissioner's authority to impose a sanction under Subchapter G, Chapter 39. SECTION 1.14. Subchapter D, Chapter 12, Education Code, is amended by adding Section 12.1151 to read as follows: Sec. 12.1151. CLOSURE AND REVOCATION OR DENIAL OF RENEWAL BECAUSE OF UNSATISFACTORY PERFORMANCE. (a) The commissioner shall order the closure and shall revoke or deny the renewal of a charter of an open-enrollment charter school under Section 12.115 if: (1) each campus operated under the charter has been closed under Section 39.1332; or (2) for two consecutive school years at least half of the campuses operated under the charter have received academically unacceptable or other unsatisfactory performance ratings under Section 39.072 or under an alternative education accountability system for alternative education campuses, unless the charter holder received an academic performance rating of acceptable or higher under Section 39.072 for either of those school years. (b) A hearing concerning the closure and revocation or denial of renewal of a charter of an open-enrollment charter school under this section: (1) is limited to the issue of whether the open-enrollment charter school or a campus operated under the charter actually received a particular academic performance rating; and (2) may not be used to challenge the commissioner's final academic performance rating for the open-enrollment charter school or a campus operated under the charter. SECTION 1.15. Section 12.116, Education Code, is amended by amending Subsection (b) and adding Subsection (d) to read as follows: (b) The procedure adopted under Subsection (a) must provide an opportunity for a hearing to the charter holder and to parents and guardians of students in the school. A hearing under this subsection must be held at: (1) the facility at which the program is operated; (2) an alternative facility designated by the commissioner that is located in the same county as the facility at which the program is operated; or (3) the regional education service center closest to the facility at which the program is operated. (d) A decision by the commissioner under this section is final and may not be appealed. SECTION 1.16. Subsection (b), Section 21.453, Education Code, is amended to read as follows: (b) The commissioner may allocate funds from the account to regional education service centers to provide staff development resources to school districts that: (1) are rated academically unacceptable; (2) have one or more campuses rated academically unacceptable [as low-performing]; or (3) are otherwise in need of assistance as indicated by the academic performance of students, as determined by the commissioner. SECTION 1.17. Subchapter A, Chapter 29, Education Code, is amended by adding Sections 29.0162 and 29.0163 to read as follows: Sec. 29.0162. INFORMATION REGARDING SPECIAL EDUCATION DUE PROCESS HEARINGS. (a) The agency shall make available to a parent, student, school district, attorney, or other interested person, and shall place on the agency's Internet website, comprehensive, easily understood information concerning the special education due process hearing process. (b) The information described by Subsection (a) must include: (1) a description of the steps in the due process hearing process; (2) the text of any applicable administrative, procedural, or evidentiary rule; (3) a description of any notice requirements; (4) an explanation of options for alternative dispute resolution, including mediation; (5) an explanation of a resolution session; (6) answers to frequently asked questions; and (7) other sources of information, including electronic sources of information, such as special education case law available on the Internet. Sec. 29.0163. COLLECTION AND ANALYSIS OF INFORMATION CONCERNING SPECIAL EDUCATION HEARING OFFICERS. (a) Section 7.032 applies to any complaint regarding the conduct of a special education hearing officer. (b) The agency shall collect and at least biennially analyze any information, including complaint information, relating to the performance of a special education hearing officer for use in assessing: (1) the effectiveness of the due process hearing process; and (2) the performance of a special education hearing officer. (c) The agency shall use the information described by Subsection (b) in determining whether to renew a contract with a special education hearing officer. SECTION 1.18. Subsection (a), Section 29.202, Education Code, is amended to read as follows: (a) A student is eligible to receive a public education grant or to attend another public school in the district in which the student resides under this subchapter if the student is assigned to attend a public school campus: (1) at which 50 percent or more of the students did not perform satisfactorily on an assessment instrument administered under Section 39.023(a) or (c) in any two of the preceding three years; or (2) that was, at any time in the preceding three years, rated academically unacceptable [considered low-performing] under Section 39.072 [39.132]. SECTION 1.19. Subchapter H, Chapter 29, Education Code, is amended by adding Section 29.258 to read as follows: Sec. 29.258. DEVELOPMENT OF WORKPLACE LITERACY AND BASIC SKILLS CURRICULUM. (a) In this section, "local workforce development board" means an entity formed under Chapter 2308, Government Code. (b) The agency shall develop a demand-driven workplace literacy and basic skills curriculum aimed at assisting local workforce development boards to equip workers and job seekers with the skills necessary to compete for current and emerging jobs in this state. (c) In developing the general curriculum required by Subsection (b), the agency shall: (1) evaluate existing efforts and potential cost savings resulting from designing specific curricula that address the needs of various industry sectors in the business community; (2) contract for field work to solicit the assistance of workers, employers, providers, and local workforce development boards in developing industry sector curricula; (3) target up to five industry sectors in the business community that are likely to benefit from the development of specific curricula; and (4) pilot test the curricula within the targeted industry sectors and adjust the curricula based on feedback received from workers and employers in those sectors. (d) Based on the curriculum developed under this section, the agency shall adopt workforce basic skills credentials to be used to define, measure, and certify the mastery of the basic skills required by the curriculum developed under this section. (e) In addition to the curriculum developed under this section, the agency shall develop and implement a plan to encourage participants who successfully complete the curriculum to pursue postsecondary educational opportunities leading to certificates and degrees. (f) The Texas Workforce Commission shall provide the agency with the resources, industry-specific information, and expertise needed by the agency in developing and implementing the curriculum under this section. (g) This section expires September 1, 2007. SECTION 1.20. Section 31.025, Education Code, is amended by adding Subsection (a-1) to read as follows: (a-1) The agency shall recommend to the State Board of Education a limit on the cost that may be paid from the state textbook fund for a textbook placed on the nonconforming list that is prorated in relation to the percentage of elements of the essential knowledge and skills of the subject and grade level that are missing from the textbook. SECTION 1.21. Subsections (a), (b), and (c), Section 31.1011, Education Code, are amended to read as follows: (a) The commissioner shall implement a program that allows [to study the use of credits for textbooks. The program shall be designed to allow] a [participating] school district or open-enrollment charter school to receive credit for textbooks purchased at a cost below the cost limit established under Section 31.025(a). (b) The credit is an amount equal to the difference between the price paid for a textbook and the cost limit established under Section 31.025(a) for that textbook multiplied by the number of copies of that textbook the [participating] school district or open-enrollment charter school purchases. (c) Fifty percent of the total textbook credit of a [participating] school district or open-enrollment charter school shall be credited to the state textbook fund, and 50 percent of the credit shall be credited to the [participating] district or school to apply toward the requisition of additional textbooks or electronic textbooks on the conforming or nonconforming list. SECTION 1.22. Chapter 33, Education Code, is amended by adding Subchapter F to read as follows:
SUBCHAPTER F. SAFETY REGULATIONS FOR CERTAIN
EXTRACURRICULAR ACTIVITIES
Sec. 33.201. APPLICABILITY. This subchapter applies to each public school in this state and to any other school in this state subject to University Interscholastic League regulations. Sec. 33.202. SAFETY TRAINING REQUIRED. (a) The commissioner by rule shall develop and adopt a safety training program as provided by this section. In developing the program, the commissioner may use materials available from the American Red Cross or another appropriate entity. (b) The following persons must satisfactorily complete the safety training program: (1) a coach, trainer, or sponsor for an extracurricular athletic activity; (2) except as provided by Subsection (f), a physician who is employed by a school or school district or who volunteers to assist with an extracurricular athletic activity; and (3) a director responsible for a school marching band. (c) The safety training program must include: (1) certification of participants by the American Red Cross, the American Heart Association, or a similar organization or the University Interscholastic League, as determined by the commissioner; (2) annual training in: (A) emergency action planning; (B) cardiopulmonary resuscitation if the person is not required to obtain certification under Section 33.086; (C) communicating effectively with 9-1-1 emergency service operators and other emergency personnel; and (D) recognizing symptoms of potentially catastrophic injuries, including head and neck injuries, concussions, injuries related to second impact syndrome, asthma attacks, heatstroke, cardiac arrest, and injuries requiring use of a defibrillator; and (3) at least once each school year, a safety drill that incorporates the training described by Subdivision (2) and simulates various injuries described by Subdivision (2)(D). (d) A student participating in an extracurricular athletic activity must receive training related to: (1) recognizing the symptoms of injuries described by Subsection (c)(2)(D); and (2) the risks of using supplements designed or marketed to enhance athletic performance. (e) The safety training program and the training under Subsection (d) may each be conducted by a school or school district or by an organization described by Subsection (c)(1). (f) A physician who is employed by a school or school district or who volunteers to assist with an extracurricular athletic activity is exempt from the requirements of Subsection (b) if the physician attends a continuing medical education course that specifically addresses emergency medicine for athletic team physicians. Sec. 33.203. COMPLETION OF UNIVERSITY INTERSCHOLASTIC LEAGUE MEDICAL HISTORY FORM. (a) Each student participating in an extracurricular athletic activity must complete the University Interscholastic League forms entitled "Preparticipation Physical Evaluation--Medical History" and "Acknowledgment of Rules." Each form must be signed by both the student and the student's parent or guardian. (b) Each form described by Subsection (a) must clearly state that failure to accurately and truthfully answer all questions on a form required by statute or by the University Interscholastic League as a condition for participation in an extracurricular athletic activity subjects a signer of the form to penalties determined by the University Interscholastic League. (c) The "Preparticipation Physical Evaluation--Medical History" form described by Subsection (a) must contain the following statement: "An individual answering in the affirmative to any question relating to a possible cardiovascular health issue, as identified on the form, should be restricted from further participation until the individual is examined by the individual's primary care physician. Ultimately, the individual may need to be evaluated by a cardiologist and/or undergo cardiac testing (including an echocardiogram and/or other heart-related examination) based on the assessment by the primary care physician." Sec. 33.204. CERTAIN UNSAFE ATHLETIC ACTIVITIES PROHIBITED. A coach, trainer, or sponsor for an extracurricular athletic activity may not encourage or permit a student participating in the activity to engage in any unreasonably dangerous athletic technique that unnecessarily endangers the health of a student, including using a helmet or any other sports equipment as a weapon. Sec. 33.205. CERTAIN SAFETY PRECAUTIONS REQUIRED. (a) A coach, trainer, or sponsor for an extracurricular athletic activity shall at each athletic practice or competition ensure that: (1) each student participating in the activity is adequately hydrated; (2) any prescribed asthma medication for a student participating in the activity is readily available to the student; (3) emergency lanes providing access to the practice or competition area are open and clear; and (4) heatstroke prevention materials are readily available. (b) If a student participating in an extracurricular athletic activity, including a practice or competition, is rendered unconscious during the activity, the student may not: (1) return to the practice or competition during which the student was rendered unconscious; or (2) continue to participate in any extracurricular athletic activity until the student receives written authorization from a physician. Sec. 33.206. COMPLIANCE; ENFORCEMENT. (a) On request, a school shall make available to the public proof of compliance for each person enrolled in, employed by, or volunteering for the school who is required to receive safety training described by Section 33.202. (b) The superintendent of a school district or the director of a school subject to this subchapter shall maintain complete and accurate records of the district's or school's compliance with Section 33.202. (c) A school campus that is determined by the school's superintendent or director to not be in compliance with Section 33.202, 33.204, or 33.205 shall discontinue all extracurricular athletic activities offered by the school campus, including all practices and competitions, until the superintendent or director determines that the school campus is in compliance. Sec. 33.207. CONTACT INFORMATION. (a) The commissioner shall maintain an existing telephone number and an electronic mail address to allow a person to report a violation of this subchapter. (b) Each school that offers an extracurricular athletic activity shall prominently display at the administrative offices of the school the telephone number and electronic mail address maintained under Subsection (a). Sec. 33.208. NOTICE REQUIRED. (a) A school that offers an extracurricular athletic activity shall provide to each student participating in an extracurricular athletic activity and to the student's parent or guardian a copy of the text of Sections 33.201-33.207 and a copy of the University Interscholastic League's parent information manual. (b) A document required to be provided under this section may be provided in an electronic format unless otherwise requested by a student, parent, or guardian. Sec. 33.209. INCORPORATION OF SAFETY REGULATIONS. The University Interscholastic League shall incorporate the provisions of Sections 33.203-33.207 into the league's constitution and contest rules. Sec. 33.210. IMMUNITY FROM LIABILITY. An action taken under this subchapter is not considered to be a ministerial act for purposes of Section 22.0511. SECTION 1.23. Subchapter D, Chapter 33, Education Code, is amended by adding Section 33.087 to read as follows: Sec. 33.087. REPORT CONCERNING AUTOMATED EXTERNAL DEFIBRILLATORS. (a) Using existing funds and other resources available for the purpose, the agency and the University Interscholastic League shall jointly investigate the availability of federal, state, local, and private funds for purchasing automated external defibrillators, as defined by Section 779.001, Health and Safety Code, for use by University Interscholastic League member schools, and the possibility of receiving a bulk discount on such purchases. (b) The agency and the University Interscholastic League shall submit a report describing the findings of the investigation to the legislature not later than June 1, 2006. (c) This section expires July 1, 2006. SECTION 1.24. Subchapter B, Chapter 39, Education Code, is amended by adding Section 39.0232 to read as follows: Sec. 39.0232. SECURITY IN ADMINISTRATION OF ASSESSMENT INSTRUMENTS. The agency shall make every effort to ensure the appropriate administration of assessment instruments under Section 39.023 and to protect the integrity of the assessment program established under this subchapter. SECTION 1.25. Subsection (a), Section 39.053, Education Code, is amended to read as follows: (a) Each board of trustees shall publish an annual report describing the educational performance of the district and of each campus in the district that includes uniform student performance and descriptive information as determined under rules adopted by the commissioner. The annual report must also include: (1) campus performance objectives established under Section 11.253 and the progress of each campus toward those objectives, which shall be available to the public; (2) the academic performance rating for the district and each campus in the district as provided under Section 39.072 [39.072(a) and the performance rating of each campus in the district as provided under Section 39.072(c)]; (3) the district's current special education compliance status with the agency; (4) a statement of the number, rate, and type of violent or criminal incidents that occurred on each district campus, to the extent permitted under the Family Educational Rights and Privacy Act of 1974 (20 U.S.C. Section 1232g); (5) information concerning school violence prevention and violence intervention policies and procedures that the district is using to protect students; [and] (6) the findings that result from evaluations conducted under the Safe and Drug-Free Schools and Communities Act of 1994 (20 U.S.C. Section 7101 et seq.) [and its subsequent amendments]; and (7) information received under Section 51.403(e) for each high school campus in the district, presented in a form determined by the commissioner. SECTION 1.26. Section 39.055, Education Code, is amended to read as follows: Sec. 39.055. [ANNUAL] AUDIT OF DROPOUT RECORDS; REPORT. (a) The commissioner shall develop a process for auditing school district dropout records electronically. The commissioner shall also develop a system and standards for review of the audit or use systems already available at the agency. The system must be designed to identify districts that are at high risk of having inaccurate dropout records and that, as a result, may be subject to a special accreditation investigation under Section 39.075 [require on-site monitoring of dropout records. If the electronic audit of a district's dropout records indicates that a district is not at high risk of having inaccurate dropout records, the district may not be subject to on-site monitoring under this subsection. If the risk-based system indicates that a district is at high risk of having inaccurate dropout records, the district is entitled to an opportunity to respond to the commissioner's determination before on-site monitoring may be conducted. The district must respond not later than the 30th day after the date the commissioner notifies the district of the commissioner's determination. If the district's response does not change the commissioner's determination that the district is at high risk of having inaccurate dropout records or if the district does not respond in a timely manner, the commissioner shall order agency staff to conduct on-site monitoring of the district's dropout records]. (b) [(e)] The commissioner shall notify the superintendent [board of trustees] of a school district of any objection the commissioner has to the district's dropout data, any violation of sound accounting practices or of a law or rule revealed by the data, or any recommendation by the commissioner concerning the data. If the data reflect that a penal law has been violated, the commissioner shall notify the county attorney, district attorney, or criminal district attorney, as appropriate, and the attorney general. The commissioner is entitled to access to all district records the commissioner considers necessary or appropriate for the review, analysis, or approval of district dropout data. SECTION 1.27. Sections 39.071 and 39.072, Education Code, are amended to read as follows: Sec. 39.071. ACCREDITATION. (a) Accreditation of a school district is determined in accordance with this section [subchapter]. (b) Each year, the commissioner shall determine the accreditation status of each school district. In determining accreditation status, the commissioner: (1) shall evaluate and consider the performance of the district under: (A) the academic accountability system under Section 39.072; and (B) the applicable financial accountability system under Section 12.005 or Subchapter I; (2) shall evaluate and consider: (A) the results of any special accreditation investigation under Section 39.075; and (B) the district's current special education monitoring or compliance status with the agency; and (3) may consider: (A) the district's compliance with statutory requirements and requirements imposed by rule of the commissioner or State Board of Education under specific statutory authority that relate to: (i) reporting data through the Public Education Information Management System (PEIMS) or other reports required by state or federal law or court order; (ii) the high school graduation requirements under Section 28.025; or (iii) an item listed under Sections 7.056(e)(3)(C)-(I) that applies to the district; (B) the effectiveness of the district's programs for special populations; and (C) the effectiveness of the district's career and technology program. (c) Based on a school district's performance under Subsection (b), the commissioner shall: (1) assign a district an accreditation status of: (A) accredited; (B) accredited-warned; or (C) accredited-probation; or (2) revoke the accreditation of the district and order closure of the district under Section 39.1332. (d) The commissioner shall notify a school district that receives an accreditation status of accredited-warned or accredited-probation that the performance of the district is below a standard required under this section. The commissioner shall require the district to notify the parents of students enrolled in the district and property owners in the district of the district's accreditation status and the implications of that accreditation status. (e) A school district that is not accredited may not receive funds from the agency or hold itself out as operating a public school of this state. (f) This chapter may not be construed to invalidate a diploma awarded, course credit earned, or grade promotion granted by a school district before the commissioner revoked the district's accreditation. Sec. 39.072. ACADEMIC ACCOUNTABILITY SYSTEM [ACCREDITATION STANDARDS]. (a) The commissioner [State Board of Education] shall adopt rules for assigning [to evaluate the performance of school districts and to assign] to each school district and campus a performance rating as follows: (1) exemplary (meets or exceeds state exemplary standards); (2) recognized (meets or exceeds required improvement or [and] within 10 percent of state exemplary standards); (3) academically acceptable (below the exemplary and recognized standards but exceeds the academically unacceptable standards); or (4) academically unacceptable (below the state clearly unacceptable performance standard and does not meet required improvement). (b) The academic excellence indicators adopted under Section 39.051(b) [Sections 39.051(b)(1) through (7) and the district's current special education compliance status with the agency] shall be the main considerations of the agency in the rating of a school [the] district or campus under this section. [Additional criteria in the rules may include consideration of: [(1) compliance with statutory requirements and requirements imposed by rule of the State Board of Education under specific statutory authority that relate to: [(A) reporting data through the Public Education Information Management System (PEIMS); [(B) the high school graduation requirements under Section 28.025; or [(C) an item listed in Sections 7.056(e)(3)(C)-(I) that applies to the district; [(2) the effectiveness of the district's programs for special populations; and [(3) the effectiveness of the district's career and technology programs.] (c) The agency shall evaluate [against state standards] and [shall], not later than August 15 [1] of each year, report the performance of each school [campus in a] district and campus [each open-enrollment charter school on the basis of the campus's performance on the indicators adopted under Sections 39.051(b)(1) through (7). Consideration of the effectiveness of district programs under Subsection (b)(2) or (3) must be based on data collected through the Public Education Information Management System for purposes of accountability under this chapter and include the results of assessments required under Section 39.023]. (d) The agency shall annually review the performance of each school district and campus and determine if a change in the academic performance rating of the district or campus is warranted. The commissioner may determine how the indicators adopted under Section 39.051(b) may be used to determine academic performance ratings and to select districts and campuses for acknowledgment. (e) Each annual review shall include an analysis of the indicators under Section 39.051(b) to determine district and campus performance in relation to: (1) state standards established for each indicator; (2) required improvement as defined under Section 39.051(c); and (3) comparable improvement as determined under Section 39.051(c). (f) The academic performance rating of a school district may be raised or lowered based on the district's performance or may be lowered based on the unacceptable performance of one or more campuses in the district. The academic performance rating of a school district may also be lowered based on a determination that data provided to the agency by the district that is necessary for conducting an annual review under this section is unreliable. (g) The commissioner shall notify a school district if the performance of the district or a campus in the district is below a standard required under this section. The commissioner shall require the school district to notify the parents of students who are enrolled in the district and property owners in the district of the academic performance rating and the implications of that rating. (h) Notwithstanding any other provision of this code, for purposes of determining the performance of a school district or open-enrollment charter school under this chapter, including the academic performance rating [accreditation status] of the district or school, a student attending a campus that is a [confined by court order in a residential program or] facility operated by or under contract with the Texas Youth Commission, a pre-adjudication secure detention facility or a post-adjudication secure correctional facility that is registered with the Texas Juvenile Probation Commission, or a residential facility is not considered to be a student of the school district or open-enrollment charter school serving the student [in which the program or facility is physically located]. The performance of a student who attends such a campus [student] on an assessment instrument or other academic excellence indicator adopted under Section 39.051 shall be determined and[,] reported, but may not be used to determine the rating of the school district or open-enrollment charter school unless the campus is the only campus operated by the district or school [and considered separately from the performance of students attending a school of the district in which the program or facility is physically located]. SECTION 1.28. Subsection (a), Section 39.075, Education Code, is amended to read as follows: (a) The commissioner may [shall] authorize special accreditation investigations to be conducted: (1) when excessive numbers of absences of students eligible to be tested on state assessment instruments are determined; (2) when excessive numbers of allowable exemptions from the required state assessment instrument are determined; (3) in response to complaints submitted to the agency with respect to alleged violations of civil rights or other requirements imposed on the state by federal law or court order; (4) in response to established monitoring or compliance reviews of the district's financial accounting practices and state and federal program requirements; (5) when extraordinary numbers of student placements in alternative education programs, other than placements under Sections 37.006 and 37.007, are determined; (6) in response to an allegation involving a conflict between members of the board of trustees or between the board and the district administration if it appears that the conflict involves a violation of a role or duty of the board members or the administration clearly defined by this code; (7) when excessive numbers of students in special education programs under Subchapter A, Chapter 29, are assessed through assessment instruments developed or adopted under Section 39.023(b); [or] (8) in response to questions concerning a program, including special education, required by federal law or for which the district receives federal funds; (9) when an annual review indicates the academically unacceptable performance under Section 39.072 of one or more campuses in a district, except that the resulting investigation is limited to those campuses; (10) in response to concerns regarding the integrity of data submitted to the agency; (11) in response to allegations of a violation of student assessment procedures for assessment instruments adopted under Section 39.023; or (12) as the commissioner otherwise determines necessary. SECTION 1.29. Subsection (c), Section 39.075, Education Code, as amended by Chapters 396 and 931, Acts of the 76th Legislature, Regular Session, 1999, is reenacted and amended to read as follows: (c) Based on the results of a special accreditation investigation, the commissioner may: (1) take appropriate action under Subchapter G; (2) raise or lower the district's accreditation status [rating]; or (3) take action under both Subdivisions (1) and (2). SECTION 1.30. Section 39.076, Education Code, is amended by amending Subsection (a) and adding Subsections (a-1), (a-2), (a-3), and (c) to read as follows: (a) The agency shall adopt written procedures for conducting [on-site] investigations under this subchapter. The agency shall make the procedures available to the complainant, the alleged violator, and the public. Agency staff must be trained in the procedures and must follow the procedures in conducting the investigation. (a-1) An investigation conducted under this subchapter may be an on-site, desk, or data-based investigation as determined by the commissioner. (a-2) If conducting an on-site investigation, the investigators may obtain information from administrators, teachers, or parents of students enrolled in the school district. The commissioner shall adopt rules for: (1) obtaining information from parents and using that information in the investigator's report; and (2) obtaining information from teachers in a manner that prevents a campus or district from screening the information. (a-3) The agency may give written notice of any impending on-site investigation to the superintendent and the board of trustees of a school district. (c) The investigators conducting an on-site investigation shall report the results of the investigation orally and in writing to the board of trustees of the district and, as appropriate, to campus administrators, and shall make recommendations concerning any necessary improvements or sources of aid, such as regional education service centers. SECTION 1.31. Subchapter D, Chapter 39, Education Code, is amended by adding Sections 39.077 and 39.078 to read as follows: Sec. 39.077. FINALITY OF DECISION BY COMMISSIONER. (a) A school district, open-enrollment charter school, or other person that wishes to challenge a decision to assign or lower an accreditation status, an academic performance rating, or a financial accountability rating must petition for an informal review as provided by Section 7.0571. (b) A final decision by the commissioner to assign or lower an accreditation status, an academic performance rating, or a financial accountability rating following a review under Section 7.0571 is final and may not be appealed. Sec. 39.078. RULES. The commissioner may adopt rules as necessary to administer this subchapter. SECTION 1.32. Sections 39.131, 39.132, and 39.133, Education Code, are amended to read as follows: Sec. 39.131. SANCTIONS FOR DISTRICTS. (a) If a school district does not satisfy the accreditation criteria under Section 39.071, the academic performance standards under Section 39.072, or any financial accountability standard as determined by commissioner rule, the commissioner shall take any of the following actions[, listed in order of severity,] to the extent the commissioner determines necessary: (1) issue public notice of the deficiency to the board of trustees; (2) order a hearing conducted by the board of trustees of the district for the purpose of notifying the public of the unacceptable performance, the improvements in performance expected by the agency, and the sanctions that may be imposed under this section if the performance does not improve; (3) order the preparation of a student achievement improvement plan that addresses each academic excellence indicator for which the district's performance is unacceptable, the submission of the plan to the commissioner for approval, and implementation of the plan; (4) order a hearing to be held before the commissioner or the commissioner's designee at which the president of the board of trustees of the district and the superintendent shall appear and explain the district's low performance, lack of improvement, and plans for improvement; (5) arrange an on-site investigation of the district; (6) appoint an agency monitor to participate in and report to the agency on the activities of the board of trustees or the superintendent; (7) appoint a conservator to oversee the operations of the district; (8) appoint a management team to direct the operations of the district in areas of unacceptable performance or require the district to obtain certain services under a contract with another person; (9) if a district has a current accreditation status of accredited-warned or accredited-probation, is [been] rated [as] academically unacceptable, or fails to satisfy financial accountability standards as determined by commissioner rule [for a period of one year or more], appoint a board of managers to exercise the powers and duties of the board of trustees; (10) if for two consecutive school years, including the current school year, a district has received an accreditation status of accredited-warned or accredited-probation, has been rated academically unacceptable, or has failed to satisfy financial accountability standards as determined by commissioner rule, revoke the district's accreditation and [been rated as academically unacceptable for a period of two years or more]: (A) order closure of the district and annex the district to one or more adjoining districts under Section 13.054; or (B) in the case of a home-rule school district or open-enrollment charter school, order closure of all programs operated under the district's or school's charter; or (11) if a district has been rated [as] academically unacceptable for [a period of] two consecutive school years, including the current school year, [or more] due to the district's dropout rates, impose sanctions designed to improve high school completion rates, including: (A) ordering the development of a dropout prevention plan for approval by the commissioner; (B) restructuring the district or appropriate school campuses to improve identification of and service to students who are at risk of dropping out of school, as defined by Section 29.081; (C) ordering lower student-to-counselor ratios on school campuses with high dropout rates; and (D) ordering the use of any other intervention strategy effective in reducing dropout rates, including mentor programs and flexible class scheduling. (b) This subsection applies regardless of whether a district has satisfied the accreditation criteria. If for two consecutive school years, including the current school year, [a period of one year or more] a district has had a conservator or management team assigned, the commissioner may appoint a board of managers, a majority of whom must be residents of the district, to exercise the powers and duties of the board of trustees. Sec. 39.132. SANCTIONS FOR CAMPUSES. (a) If a campus receives an academic performance rating of academically unacceptable under Section 39.072 [is below any standard under Section 39.073(b)], the [campus is considered a low-performing campus. The] commissioner may permit the campus to participate in an innovative redesign of the campus to improve campus performance or may take any of the other following actions[, listed in order of severity,] to the extent the commissioner determines necessary: (1) issue public notice of the deficiency to the board of trustees; (2) order a hearing conducted by the board of trustees at the campus for the purpose of: (A) notifying the public of the unacceptable performance, the improvements in performance expected by the agency, and the sanctions that may be imposed under this section if the performance does not improve within a designated period of time; and (B) soliciting public comment on the initial steps being taken to improve performance; (3) order the preparation of a report regarding the parental involvement program at the campus and a plan describing strategies for improving parental involvement at the campus; (4) order the preparation of a report regarding the effectiveness of the district- and campus-level planning and decision-making committees established under Subchapter F, Chapter 11, and a plan describing strategies for improving the effectiveness of those committees; (5) order the preparation of a student achievement improvement plan that addresses each academic excellence indicator for which the campus's performance is unacceptable, the submission of the plan to the commissioner for approval, and implementation of the plan; (6) order a hearing to be held before the commissioner or the commissioner's designee at which the president of the board of trustees, the superintendent, and the campus principal shall appear and explain the campus's low performance, lack of improvement, and plans for improvement; (7) appoint a special campus intervention team to: (A) conduct a comprehensive on-site evaluation of the campus to determine the cause for the campus's low performance and lack of progress; (B) recommend actions, including reallocation of resources and technical assistance, changes in school procedures or operations, staff development for instructional and administrative staff, intervention for individual administrators or teachers, waivers from state statute or rule, or other actions the team considers appropriate; (C) assist in the development of a campus plan for student achievement; and (D) assist the commissioner in monitoring the progress of the campus in implementing the campus plan for improvement of student achievement; [or] (8) appoint an agency monitor to participate in and report to the agency on activities relating to operation of the campus; or (9) if a campus is currently rated academically unacceptable [has been a low-performing campus for a period of one year or more], appoint a board of managers composed of residents of the district to exercise the powers and duties of the board of trustees of the district in relation to the campus. (b) If a campus has been rated academically unacceptable [a low-performing campus] for [a period of] two or more consecutive school years, including the current school year [or more], the commissioner shall order the closure of the district or charter program on the campus or reconstitute the campus. In reconstituting the campus, a special campus intervention team shall be assembled for the purpose of deciding which educators may be retained at that campus. If an educator is not retained, the educator may be assigned to another position in the district. Sec. 39.133. ANNUAL REVIEW. (a) The commissioner shall review annually the performance of a district or campus subject to a sanction under this subchapter to determine the appropriate actions to be implemented under this subchapter. The determination shall take into account the number, severity, and duration of the problems identified [The commissioner must review at least annually the performance of a district for which the accreditation rating has been lowered due to unacceptable student performance and may not raise the rating until the district has demonstrated improved student performance]. If the review reveals a lack of improvement, the commissioner shall increase the level of state intervention and sanction unless the commissioner finds good cause for maintaining the current status. (b) The commissioner shall review at least annually the performance of a school district for which the academic performance rating has been lowered due to unacceptable student performance and may not raise the rating until the district has demonstrated improved student performance. SECTION 1.33. Subchapter G, Chapter 39, Education Code, is amended by adding Sections 39.1331, 39.1332, and 39.1333 to read as follows: Sec. 39.1331. ACQUISITION OF PROFESSIONAL SERVICES. In addition to other sanctions authorized under Sections 39.131 and 39.132, the commissioner may order a school district or campus to acquire professional services at the expense of the district or campus to address the applicable financial, assessment, data quality, program, or governance deficiency. The commissioner's order may require the district or campus to: (1) select an external auditor, data quality expert, professional authorized to monitor district assessment instrument administration, or curriculum or program expert; or (2) provide for the appropriate training of district staff or board of trustees members in the case of a district, or campus staff, in the case of a campus. Sec. 39.1332. CLOSURE OF SCHOOL DISTRICT OR CAMPUS. (a) The commissioner may revoke the accreditation of a school district and order the closure of the district or a campus, as appropriate, under the following circumstances: (1) the commissioner is authorized to close the district or campus under Section 39.131(a)(10) or 39.132(b); (2) the commissioner determines that the district is insolvent and unable to complete the school year; or (3) the commissioner determines that the district has ceased operations for 11 or more instructional days during the current or most recent scheduled school year without the commissioner's authorization. (b) The commissioner shall issue an order of closure under this section that includes provisions necessary for the continuation of the education of students enrolled in the district or campus, including annexation to one or more adjoining districts as provided by Section 13.054. An order of closure may: (1) establish an effective date for accreditation revocation and closure that is not later than the first anniversary of the date of the order; (2) provide for an interim board of managers to exercise the duties of the board of trustees of the district as designated by the commissioner; (3) require enrollment or student services to be provided by another district as necessary to allow students enrolled in the closed district to complete a school year, and make adjustments in the state and federal funding to which the district would otherwise be entitled as determined by the commissioner; and (4) require the preservation, transfer, or surrender of all student records and other records required for an audit of any state and federal funding provided to the district. (c) A person who intentionally destroys, conceals, or tampers with a record that is required to be preserved, transferred, or surrendered under Subsection (b)(4) commits an offense punishable under Section 37.10(c)(2), Penal Code. (d) A board of managers exercising authority under Subsection (b)(2) may exercise the authority of the board of trustees with regard to financial management of the district and personnel actions. The board of managers is not required to be composed of residents of the district. (e) An open-enrollment charter school ordered closed under this section is not entitled to a separate hearing concerning the revocation or nonrenewal of the charter under Section 12.116. Sec. 39.1333. FINALITY OF DECISION BY COMMISSIONER. (a) A school district, open-enrollment charter school, or other person that wishes to challenge a decision to impose a sanction under this subchapter, including a decision to close a district, school, or campus under Section 39.1332, must petition for an informal review as provided by Section 7.0571. (b) A final decision by the commissioner to impose a sanction under this subchapter, including a decision to close a school district or a campus under Section 39.1332, following a review under Section 7.0571 is final and may not be appealed. (c) A school district may not collaterally contest an academic performance rating or other accreditation standard as part of the review of a sanction under this subchapter if a review opportunity has already been provided for the academic performance rating. SECTION 1.34. Section 39.134, Education Code, is amended to read as follows: Sec. 39.134. COSTS PAID BY DISTRICT. The costs of providing a monitor, conservator, management team, [or] special campus intervention team, or service provider under Section 39.1331 shall be paid by the district. If the district fails or refuses to pay the costs in a timely manner, the commissioner may: (1) pay the costs using amounts withheld from any funds to which the district is otherwise entitled; or (2) recover the amount of the costs in the manner provided for recovery of an overallocation of state funds under Section 42.258. SECTION 1.35. Section 39.182, Education Code, is amended by adding Subsections (b-1), (b-2), and (b-3) to read as follows: (b-1) The report must include a summary of: (1) investigations authorized by the agency into inappropriate administrations of assessment instruments under Section 39.023; and (2) the efforts the agency has made under Section 39.0232 to ensure the appropriate administration of assessment instruments and to protect the integrity of the assessment program established under Subchapter B. (b-2) The report must include an assessment of the impact of the performance-based grant system developed under Subchapter E, Chapter 7, on student academic performance, including: (1) an analysis of performance and spending information relating to grants administered by the agency; and (2) recommendations on any statutory changes needed for the agency to more effectively administer grant programs, including recommendations on whether to eliminate or modify inefficient grant programs, expand effective grant programs, or consolidate similar grant programs to maximize the effectiveness and efficiencies of those programs. (b-3) Subsection (b-2) applies beginning January 1, 2009. This subsection expires February 1, 2009. SECTION 1.36. Subchapter C, Chapter 45, Education Code, is amended by adding Section 45.0561 to read as follows: Sec. 45.0561. PRIORITY FOR CERTAIN BONDS. (a) In determining which bonds to approve for guarantee under this subchapter, the commissioner shall give priority to a school district that has had bonds refunded and defeased under Subchapter D, Chapter 46. (b) The commissioner may adopt rules to administer this section. SECTION 1.37. Chapter 46, Education Code, is amended by adding Subchapter D to read as follows:
SUBCHAPTER D. REFUNDING TO INCREASE PERMANENT SCHOOL FUND CAPACITY
Sec. 46.091. DEFINITIONS. In this subchapter: (1) "Allocated revenue" means that portion of state assistance under Subchapter A or B equal to the scheduled debt service payments in effect immediately before the refunding of eligible bonds being refunded under this subchapter. (2) "Authority" means the Texas Public Finance Authority. (3) "Authority obligation" means any type of revenue obligation, including a bond, note, certificate, or other instrument issued under this subchapter. The term includes an obligation issued to refund an obligation issued under this subchapter. (4) "Credit agreement" has the meaning assigned by Section 1371.001, Government Code. (5) "Obligation administrative expenses" means expenses incurred in administering authority obligations, including: (A) administrative expenses incurred by the commissioner or the authority relating to the administration of this subchapter; and (B) fees for: (i) paying agents, trustees, and attorneys; (ii) other professional services necessary to ensure compliance with applicable state or federal law; and (iii) for a school district with eligible bonds refunded under this subchapter, professional service expenses in an amount approved by the commissioner. Sec. 46.092. ISSUANCE OF AUTHORITY OBLIGATIONS. (a) If the commissioner determines that it is feasible to refund eligible school district bonds as provided by this subchapter, the commissioner may request that the authority issue authority obligations necessary to accomplish the refunding. On request of the commissioner, the authority shall issue authority obligations, in accordance with Title 9, Government Code, in an amount sufficient to: (1) refund eligible bonds; (2) pay all obligation administrative expenses; (3) pay the costs of issuing the authority obligations; (4) pay the costs of any credit agreement; and (5) provide any reserve funds. (b) Authority obligations and any related credit agreements must be secured by allocated revenue. (c) The commissioner's request for the issuance of authority obligations must state: (1) the maximum principal amount of bonds to be refunded under this subchapter; (2) the maximum term of bonds to be refunded; and (3) the amount of state assistance under Subchapter A or B to support the payment of the bonds to be refunded. (d) To best achieve the economic goals of this subchapter and accomplish the borrowing at the lowest practicable cost, the authority may determine: (1) the method of sale of authority obligations; (2) the type and form of obligation; (3) the maximum interest rates and other terms of authority obligations; and (4) the need for related credit agreements. (e) The authority shall certify to the commissioner that each series of authority obligations issued under this subchapter will result in an aggregate present value savings. (f) Section 46.007 does not apply to the issuance of authority obligations under this subchapter. Sec. 46.093. ELIGIBILITY OF BONDS FOR REFUNDING. School district bonds are eligible for refunding under this subchapter if: (1) the district receives state assistance for payment of the bonds under Subchapter A or B; and (2) the principal and interest of the bonds are guaranteed by the permanent school fund under Subchapter C, Chapter 45. Sec. 46.094. IDENTIFICATION OF ELIGIBLE BONDS; NOTICE TO SCHOOL DISTRICTS. (a) If the commissioner determines that it is feasible to refund eligible school district bonds as provided by this subchapter, the commissioner shall periodically identify which outstanding school bonds are eligible for refunding under this subchapter. The commissioner shall notify the school districts issuing the bonds that: (1) the bonds are subject to being refunded and defeased through the issuance of authority obligations; and (2) a school district whose bonds are refunded under this subchapter is entitled to priority in the allocation of resulting increases in the capacity of the permanent school fund to guarantee school district bonds under Subchapter C, Chapter 45, as provided by Section 45.0561. (b) The district may elect to direct the commissioner to include any of the district's eligible bonds for consideration for refunding under this subchapter. If the district does not elect to direct the commissioner to include the district's bonds for consideration for refunding within the time prescribed by this subsection, the bonds may not be refunded under this subchapter. (c) Notice under Subsection (a) must: (1) identify the bonds the commissioner proposes to refund under this subchapter; (2) state that the school district may elect to direct the commissioner to include any of the district's bonds for consideration for refunding; and (3) advise the district of: (A) the effect of electing to have the bonds considered for refunding; and (B) the effect of not electing to have the bonds considered for refunding. Sec. 46.095. AGREEMENT BETWEEN COMMISSIONER AND AUTHORITY. (a) To permit the authority to pledge allocated revenue to the payment of authority obligations, the commissioner shall enter into an agreement with the authority under which: (1) the commissioner, acting on behalf of each school district whose bonds are being refunded under this subchapter, may pledge the allocated revenue to secure the payment of the principal of and interest and premium on authority obligations; and (2) each school year, the commissioner shall allocate and distribute to the authority allocated revenue equal to the scheduled debt service payments for that year on the bonds being refunded. (b) An agreement under this section must state that the funding for allocated revenue is subject to legislative appropriation. A distribution to the authority under the agreement is considered to be a distribution for purposes of Section 46.009. If the commissioner determines that the amount appropriated for any year for allocated revenue is insufficient, the commissioner may act under Section 46.009(b) to ensure the sufficiency of allocated revenue. Sec. 46.096. USE OF PROCEEDS OF AUTHORITY OBLIGATIONS. (a) The authority shall use the proceeds of authority obligations, less the cost of issuing those obligations and the cost of administrative expenses incurred by the commissioner or the authority relating to the administration of this subchapter, to refund and defease eligible bonds as requested by the commissioner. To accomplish the refunding and defeasance: (1) the commissioner, on behalf of the school districts issuing the bonds, may: (A) exercise any reserved right of optional redemption; and (B) issue any required notice of redemption and defeasance; and (2) the authority, on behalf of the districts issuing the bonds, may enter into escrow agreements and purchase escrow securities as provided by Chapter 1207, Government Code, with the same effect under that chapter as if the authority were the issuer of the bonds being refunded and defeased. (b) The authority shall provide to a school district whose bonds are refunded under this subchapter appropriate documentation showing that the bonds have been refunded and defeased. Sec. 46.097. PAYMENT OF OBLIGATION ADMINISTRATIVE EXPENSES. After paying the current debt service on authority obligations, the authority may use allocated revenue to pay obligation administrative expenses. Sec. 46.098. DISTRIBUTION OF ALLOCATED REVENUE IN EXCESS OF DISTRICT'S ENTITLEMENT TO STATE ASSISTANCE. (a) If the commissioner allocates and distributes to the authority allocated revenue for a school district's bonds refunded under this subchapter in an amount in excess of the state assistance to which the district is entitled in connection with all of the district's bonds, the district shall reimburse the commissioner in the amount of the excess. (b) If a school district elects not to reimburse the commissioner in the amount of excess state assistance as required under Subsection (a), the commissioner shall direct the comptroller to withhold the amount of the excess from the succeeding payment of state assistance payable to the school district and credit the amount to the account or accounts from which the excess payment was made. (c) A school may reimburse the commissioner under this section from any lawfully available source. Sec. 46.099. REFUNDING OF AUTHORITY OBLIGATIONS. The authority may issue authority obligations to refund any previously issued authority obligations if the authority by resolution determines that the issuance of refunding obligations will result in the lowest practicable borrowing cost to the state and school districts with outstanding eligible bonds. Sec. 46.100. AUTHORITY OBLIGATIONS NOT A PLEDGE OF STATE'S CREDIT. (a) Authority obligations and any related credit agreements are not: (1) a debt of the state, a state agency, or a political subdivision of the state; or (2) a pledge of the faith and credit or taxing power of the state, a state agency, or a political subdivision of the state. (b) Authority obligations and any related credit agreements are payable solely from allocated revenue pledged to the payment of those obligations. (c) Subject to the limitations of Subsection (a), as long as authority obligations are outstanding, the state may not: (1) take any action to limit or restrict the authority's responsibility to pay the authority obligations; or (2) in any way impair the rights and remedies of the owners of authority obligations. (d) The reallocation of allocated revenue to secure authority obligations to refund school district bonds is: (1) consistent with the original authorization, allocation, and application of state assistance under Subchapter A or B; (2) in furtherance of any covenants, agreements, or undertakings by school districts or the commissioner to cause allocated revenue to be credited to debt service funds for school district bonds; and (3) consistent with all statutory and regulatory dedications and restrictions on the allocated revenue. SECTION 1.38. Subsection (c), Section 2175.304, Government Code, is amended to read as follows: (c) The procedures established under Subsection (b) must give preference to transferring the property directly to a public school or school district or to an assistance organization designated by the school district before disposing of the property in another manner. If more than one public school or school district or assistance organization seeks to acquire the same property on substantially the same terms, the system, institution, or agency shall give preference to a public school that is rated academically unacceptable under Section 39.072, Education Code, [considered low-performing by the commissioner of education] or to a school district that has a taxable wealth per student that entitles the district to an allotment of state funds under Subchapter F, Chapter 42, Education Code, or to the assistance organization designated by such a school district. SECTION 1.39. Subsection (c), Section 302.006, Labor Code, is amended to read as follows: (c) To be eligible to receive a scholarship awarded under this section, a person must: (1) be employed in a child-care facility, as defined by Section 42.002, Human Resources Code; (2) intend to obtain a credential, certificate, or degree specified in Subsection (b); (3) agree to work for at least 18 additional months in a child-care facility, as defined by Section 42.002, Human Resources Code, that accepts federal Child Care Development Fund subsidies and that, at the time the person begins to fulfill the work requirement imposed by this subdivision, is located: (A) within the attendance zone of a public school campus that is rated academically unacceptable [considered low-performing] under Section 39.072 [39.132], Education Code; or (B) in an economically disadvantaged community, as determined by the commission; and (4) satisfy any other requirements adopted by the commission. SECTION 1.40. Section 8.010, Subsections (d) and (e), Section 31.1011, Subsection (d), Section 39.051, and Sections 39.073 and 39.074, Education Code, are repealed. SECTION 1.41. Not later than September 1, 2007, the Texas Education Agency shall complete the requirements under Section 29.258, Education Code, as added by this Act. SECTION 1.42. (a) Except as otherwise provided by this section, this article applies beginning with the 2005-2006 school year. (b) Subchapter F, Chapter 33, Education Code, as added by this article, applies beginning with the 2006-2007 school year.
ARTICLE 2. DRIVER AND TRAFFIC SAFETY EDUCATION
SECTION 2.01. Section 1001.001, Education Code, is amended by amending Subdivisions (2) through (5) and adding Subdivision (13-a) to read as follows: (2) "Approved driving safety course" means a driving safety course approved by the department [commissioner]. (3) "Commission" ["Commissioner"] means the Texas Commission of Licensing and Regulation [commissioner of education]. (4) "Course provider" means an enterprise that: (A) maintains a place of business or solicits business in this state; (B) is operated by an individual, association, partnership, or corporation; and (C) has received an approval for a driving safety course from the department [commissioner] or has been designated by a person who has received that approval to conduct business and represent the person in this state. (5) "Department" means the Texas Department of Licensing and Regulation [Public Safety]. (13-a) "Executive director" means the executive director of the department. SECTION 2.02. Subsection (c), Section 1001.002, Education Code, is amended to read as follows: (c) A driver education course is exempt from this chapter, other than Section 1001.055, if the course is: (1) conducted by a vocational driver training school operated to train or prepare a person for a field of endeavor in a business, trade, technical, or industrial occupation; (2) conducted by a school or training program that offers only instruction of purely avocational or recreational subjects as determined by the department [commissioner]; (3) sponsored by an employer to train its own employees without charging tuition; (4) sponsored by a recognized trade, business, or professional organization with a closed membership to instruct the members of the organization; or (5) conducted by a school regulated and approved under another law of this state. SECTION 2.03. Sections 1001.003 and 1001.004, Education Code, are amended to read as follows: Sec. 1001.003. LEGISLATIVE INTENT REGARDING SMALL BUSINESSES. It is the intent of the legislature that commission [agency] rules that affect driver training schools that qualify as small businesses be adopted and administered so as to have the least possible adverse economic effect on the schools. Sec. 1001.004. COST OF ADMINISTERING CHAPTER. The cost of administering this chapter shall be included in the state budget allowance for the department [agency]. SECTION 2.04. Sections 1001.051 and 1001.052, Education Code, are amended to read as follows: Sec. 1001.051. JURISDICTION OVER SCHOOLS. The department [agency] has jurisdiction over and control of driver training schools regulated under this chapter. Sec. 1001.052. RULES. The commission [agency] shall adopt [and administer] comprehensive rules governing driving safety courses, including rules to ensure the integrity of approved driving safety courses and enhance program quality. SECTION 2.05. The heading to Section 1001.053, Education Code, is amended to read as follows: Sec. 1001.053. POWERS AND DUTIES OF DEPARTMENT [COMMISSIONER]. SECTION 2.06. Subsection (a), Section 1001.053, Education Code, is amended to read as follows: (a) The department [commissioner] shall: (1) administer [the policies of] this chapter; (2) enforce minimum standards for driver training schools under this chapter; (3) [adopt and] enforce rules adopted by the commission necessary to administer this chapter; and (4) inspect [visit] a driver training school or course provider and reexamine the school or course provider for compliance with this chapter. SECTION 2.07. The heading to Section 1001.054, Education Code, is amended to read as follows: Sec. 1001.054. RULES RESTRICTING ADVERTISING [OR COMPETITIVE BIDDING]. SECTION 2.08. Subsection (c), Section 1001.054, Education Code, is amended to read as follows: (c) The commission [commissioner] by rule may restrict advertising by a branch location of a driver training school so that the location adequately identifies the primary location of the school in a solicitation. SECTION 2.09. Section 1001.055, Education Code, is amended to read as follows: Sec. 1001.055. DRIVER EDUCATION CERTIFICATES. (a) The department [agency] shall print and supply to each licensed or exempt driver education school driver education certificates to be used for certifying completion of an approved driver education course to satisfy the requirements of Section 521.204(a)(2), Transportation Code. The certificates must be numbered serially. (b) The commission [agency] by rule shall provide for the design and distribution of the certificates in a manner that, to the greatest extent possible, prevents the unauthorized reproduction or misuse of the certificates. (c) The department [agency] may charge a fee of not more than $4 for each certificate. SECTION 2.10. Subsections (b) through (e) and (g), Section 1001.056, Education Code, are amended to read as follows: (b) The department [agency] shall print and supply to each licensed course provider uniform certificates of course completion. The certificates must be numbered serially. (c) The commission [agency] by rule shall provide for the design and distribution of the certificates in a manner that, to the greatest extent possible, prevents the unauthorized production or misuse of the certificates. (d) A certificate under this section must: (1) be in a form required by the department [agency]; and (2) include an identifying number by which the department [agency], a court, or the Department of Public Safety [department] may verify its authenticity with the course provider. (e) The department [agency] may charge a fee of not more than $4 for each certificate. A course provider shall charge an operator a fee equal to the amount of the fee paid to the department [agency] for a certificate. (g) The department [agency] shall issue duplicate certificates. The commission [commissioner] by rule shall determine the amount of the fee for issuance of a duplicate certificate. SECTION 2.11. Section 1001.057, Education Code, is amended to read as follows: Sec. 1001.057. ELECTRONIC TRANSMISSION OF DRIVING SAFETY COURSE INFORMATION. The department [agency] shall investigate options to develop and implement procedures to electronically transmit information relating to driving safety courses to municipal and justice courts. SECTION 2.12. Subchapter B, Chapter 1001, Education Code, is amended by adding Section 1001.058 to read as follows: Sec. 1001.058. DESIGNATION OF PERSON TO ADMINISTER CHAPTER. The executive director may designate a person knowledgeable in the administration of regulating driver training schools to administer this chapter for the department. SECTION 2.13. Sections 1001.101 and 1001.102, Education Code, are amended to read as follows: Sec. 1001.101. DRIVER EDUCATION COURSE CURRICULUM AND TEXTBOOKS. The commission [commissioner] by rule shall establish the curriculum and designate the textbooks to be used in a driver education course. Sec. 1001.102. ALCOHOL AWARENESS INFORMATION. (a) The commission [agency] by rule shall require that information relating to alcohol awareness and the effect of alcohol on the effective operation of a motor vehicle be included in the curriculum of any driver education course or driving safety course. (b) In developing rules under this section, the commission [agency] shall consult with the Department of Public Safety [department]. SECTION 2.14. Subsections (b), (d), and (e), Section 1001.103, Education Code, are amended to read as follows: (b) The department [agency] shall develop standards for a separate school certification and approve curricula for drug and alcohol driving awareness programs that include one or more courses. Except as provided by commission [agency] rule, a program must be offered in the same manner as a driving safety course. (d) In accordance with Section 461.013(b), Health and Safety Code, the department [agency] and the Texas Commission on Alcohol and Drug Abuse shall enter into a memorandum of understanding for the interagency approval of the required curricula. (e) The commission [Notwithstanding Section 1001.056, Subchapter D, and Sections 1001.213 and 1001.303, the commissioner] may establish fees in connection with the programs under this section. The fees must be in amounts reasonable and necessary to administer the department's [agency's] duties under this section. SECTION 2.15. Sections 1001.104 and 1001.105, Education Code, are amended to read as follows: Sec. 1001.104. HOSPITAL AND REHABILITATION FACILITIES. (a) The department [agency] shall enter into a memorandum of understanding with the Texas Rehabilitation Commission and the Department of Public Safety [department] for the interagency development of curricula and licensing criteria for hospital and rehabilitation facilities that teach driver education. (b) The department [agency] shall administer comprehensive rules governing driver education courses adopted by mutual agreement among the commission [agency], the Texas Rehabilitation Commission, and the Department of Public Safety [department]. Sec. 1001.105. TEXAS DEPARTMENT OF INSURANCE. The commission [agency] shall enter into a memorandum of understanding with the Texas Department of Insurance for the interagency development of a curriculum for driving safety courses. SECTION 2.16. Subsections (b), (c), and (d), Section 1001.106, Education Code, are amended to read as follows: (b) The commission [commissioner] by rule shall provide minimum standards of curriculum relating to operation of vehicles at railroad and highway grade crossings. (c) Subchapter F, Chapter 51, Occupations Code, Section 51.353, Occupations Code, and Section [Sections 1001.454,] 1001.456 of this code[, and 1001.553] do not apply to a violation of this section or a rule adopted under this section. (d) Section 51.352, Occupations Code, and Sections [1001.455(a)(6),] 1001.501[, 1001.551, 1001.552,] and 1001.554 of this code do not apply to a violation of this section. SECTION 2.17. Section 1001.107, Education Code, is amended to read as follows: Sec. 1001.107. INFORMATION RELATING TO LITTER PREVENTION. (a) The commission [commissioner] by rule shall require that information relating to litter prevention be included in the curriculum of each driver education and driving safety course. (b) In developing rules under this section, the commission [commissioner] shall consult the Department of Public Safety [department]. SECTION 2.18. Subsections (a) and (c), Section 1001.108, Education Code, are amended to read as follows: (a) The commission [commissioner] by rule shall require that information relating to anatomical gifts be included in the curriculum of each driver education course and driving safety course. (c) In developing rules under this section, the commission [commissioner] shall consult with the Department of Public Safety [department] and the [Texas] Department of State Health Services. SECTION 2.19. Section 1001.151, Education Code, is amended to read as follows: Sec. 1001.151. APPLICATION, LICENSE, AND REGISTRATION FEES. (a) The commission [commissioner] shall establish [collect] application, license, and registration fees. The fees must be in amounts sufficient to cover administrative costs and are nonrefundable. The department shall collect the application, license, and registration fees. (b) The commission shall establish a fee for: (1) an initial driver education school license and [is $1,000 plus $850] for each branch location;[.] (2) [(c) The fee for] an initial driving safety school license; [is an appropriate amount established by the commissioner not to exceed $200.] (3) [(d) The fee for] an initial course provider license [is an appropriate amount established by the commissioner not to exceed $2,000], except that the commission [agency] may waive the fee if revenue received from the course provider is sufficient to cover the cost of licensing the course provider; [.] (4) the [(e) The] annual renewal [fee] for a course provider, driving safety school, driver education school, or branch location [is an appropriate amount established by the commissioner not to exceed $200], except that the commission [agency] may waive the fee if revenue generated by the issuance of uniform certificates of course completion and driver education certificates is sufficient to cover the cost of administering this chapter and Article 45.0511, Code of Criminal Procedure;[.] (5) [(f) The fee for] a change of address of[: [(1)] a driver education school, [is $180; and [(2)] a driving safety school, or course provider; [is $50.] (6) [(g) The fee for] a change of name of: (A) [(1)] a driver education school or course provider or an owner of a driver education school or course provider [is $100]; or [and] (B) [(2)] a driving safety school or owner of a driving safety school; [is $50.] (7) [(h) The application fee for] each additional driver education or driving safety course at a driver training school; [is $25.] (8) an [(i) The] application of a [fee for: [(1) each] director, [is $30; and [(2) each] assistant director, or administrative staff member; and [is $15.] (9) an [(j) Each] application for approval of a driving safety course that has not been evaluated by the department [commissioner must be accompanied by a nonrefundable fee of $9,000]. (c) [(k)] An application for an original driver education or driving safety instructor license must be accompanied by a processing fee [of $50] and an annual license fee [of $25], except that the department [commissioner] may not collect the processing fee from an applicant for a driver education instructor license who is currently teaching a driver education course in a public school in this state. (d) [(l)] The commission [commissioner] shall establish the amount of the fee for a duplicate license. SECTION 2.20. Section 1001.153, Education Code, is amended to read as follows: Sec. 1001.153. COMPLAINT INVESTIGATION FEE. (a) The commission [commissioner] shall establish the amount of the fee to investigate a driver training school or course provider to resolve a complaint against the school or course provider. (b) The fee may be charged only if: (1) the complaint could not have been resolved solely by telephone or in writing; (2) a representative of the department [agency] visited the school or course provider as a part of the complaint resolution process; and (3) the school or course provider was found to be at fault. SECTION 2.21. Subsection (b), Section 1001.202, Education Code, is amended to read as follows: (b) A driving safety school may use multiple classroom locations to teach a driving safety course if each location: (1) is approved by the parent school and the department [agency]; (2) has the same name as the parent school; and (3) has the same ownership as the parent school. SECTION 2.22. Sections 1001.203 through 1001.206, Education Code, are amended to read as follows: Sec. 1001.203. APPLICATION. To operate or do business in this state, a driver training school must apply to the department [commissioner] for the appropriate license. The application must: (1) be in writing; (2) be in the form prescribed by the department [commissioner]; (3) include all required information; and (4) be verified. Sec. 1001.204. REQUIREMENTS FOR DRIVER EDUCATION SCHOOL LICENSE. The department [commissioner] shall approve an application for a driver education school license if, on investigation of the premises of the school, it is determined that the school: (1) has courses, curricula, and instruction of a quality, content, and length that reasonably and adequately achieve the stated objective for which the courses, curricula, and instruction are offered; (2) has adequate space, equipment, instructional material, and instructors to provide training of good quality in the classroom and behind the wheel; (3) has directors, instructors, and administrators who have adequate educational qualifications and experience; (4) provides to each student before enrollment: (A) a copy of: (i) the refund policy; (ii) the schedule of tuition, fees, and other charges; and (iii) the regulations relating to absence, grading policy, and rules of operation and conduct; and (B) the department's name, mailing address, [and] telephone number, and Internet website address [of the agency] for the purpose of directing complaints to the department [agency]; (5) maintains adequate records as prescribed by the department [commissioner] to show attendance and progress or grades and enforces satisfactory standards relating to attendance, progress, and conduct; (6) on completion of training, issues each student a certificate indicating the course name and satisfactory completion; (7) complies with all county, municipal, state, and federal regulations, including fire, building, and sanitation codes and assumed name registration; (8) is financially sound and capable of fulfilling its commitments for training; (9) has administrators, directors, owners, and instructors who are of good reputation and character; (10) maintains and publishes as part of its student enrollment contract the proper policy for the refund of the unused portion of tuition, fees, and other charges if a student fails to take the course or withdraws or is discontinued from the school at any time before completion; (11) does not use erroneous or misleading advertising, either by actual statement, omission, or intimation, as determined by the department [commissioner]; (12) does not use a name similar to the name of another existing school or tax-supported educational institution in this state, unless specifically approved in writing by the executive director [commissioner]; (13) submits to the department [agency] for approval the applicable course hour lengths and curriculum content for each course offered by the school; (14) does not owe an administrative penalty for a violation of [under] this chapter; and (15) meets any additional criteria required by the department [agency]. Sec. 1001.205. REQUIREMENTS FOR DRIVING SAFETY SCHOOL LICENSE. The department [commissioner] shall approve an application for a driving safety school license if on investigation the department [agency] determines that the school: (1) has driving safety courses, curricula, and instruction of a quality, content, and length that reasonably and adequately achieve the stated objective for which the course, curricula, and instruction are developed by the course provider; (2) has adequate space, equipment, instructional material, and instructors to provide training of good quality; (3) has instructors and administrators who have adequate educational qualifications and experience; (4) maintains adequate records as prescribed by the department [commissioner] to show attendance and progress or grades and enforces satisfactory standards relating to attendance, progress, and conduct; (5) complies with all county, municipal, state, and federal laws, including fire, building, and sanitation codes and assumed name registration; (6) has administrators, owners, and instructors who are of good reputation and character; (7) does not use erroneous or misleading advertising, either by actual statement, omission, or intimation, as determined by the department [commissioner]; (8) does not use a name similar to the name of another existing school or tax-supported educational establishment in this state, unless specifically approved in writing by the executive director [commissioner]; (9) maintains and uses the approved contract and policies developed by the course provider; (10) does not owe an administrative penalty for a violation of [under] this chapter; (11) will not provide a driving safety course to a person for less than $25; and (12) meets additional criteria required by the department [commissioner]. Sec. 1001.206. REQUIREMENTS FOR COURSE PROVIDER LICENSE. The department [commissioner] shall approve an application for a course provider license if on investigation the department [agency] determines that: (1) the course provider has an approved course that at least one licensed driving safety school is willing to offer; (2) the course provider has adequate educational qualifications and experience; (3) the course provider will: (A) develop and provide to each driving safety school that offers the approved course a copy of: (i) the refund policy; and (ii) the regulations relating to absence, grading policy, and rules of operation and conduct; and (B) provide to the driving safety school the department's name, mailing address, [and] telephone number, and Internet website address [of the agency] for the purpose of directing complaints to the department [agency]; (4) a copy of the information provided to each driving safety school under Subdivision (3) will be provided to each student by the school before enrollment; (5) not later than the 15th working day after the date the person successfully completes the course, the course provider will mail a uniform certificate of course completion to the person indicating the course name and successful completion; (6) the course provider maintains adequate records as prescribed by the department [commissioner] to show attendance and progress or grades and enforces satisfactory standards relating to attendance, progress, and conduct; (7) the course provider complies with all county, municipal, state, and federal laws, including assumed name registration and other applicable requirements; (8) the course provider is financially sound and capable of fulfilling its commitments for training; (9) the course provider is of good reputation and character; (10) the course provider maintains and publishes as a part of its student enrollment contract the proper policy for the refund of the unused portion of tuition, fees, and other charges if a student fails to take the course or withdraws or is discontinued from the school at any time before completion; (11) the course provider does not use erroneous or misleading advertising, either by actual statement, omission, or intimation, as determined by the department [commissioner]; (12) the course provider does not use a name similar to the name of another existing school or tax-supported educational institution in this state, unless specifically approved in writing by the executive director [commissioner]; (13) the course provider does not owe an administrative penalty for a violation of [under] this chapter; and (14) the course provider meets additional criteria required by the department [commissioner]. SECTION 2.23. Subsections (a) and (b), Section 1001.207, Education Code, are amended to read as follows: (a) Before a driver education school may be issued a license, the school must file a corporate surety bond with the department [commissioner] in the amount of: (1) $10,000 for the primary location of the school; and (2) $5,000 for each branch location. (b) A bond issued under Subsection (a) must be: (1) issued in a form approved by the department [commissioner]; (2) issued by a company authorized to do business in this state; (3) payable to the state to be used only for payment of a refund due to a student or potential student; (4) conditioned on the compliance of the school and its officers, agents, and employees with this chapter and rules adopted under this chapter; and (5) issued for a period corresponding to the term of the license. SECTION 2.24. Subsection (b), Section 1001.209, Education Code, is amended to read as follows: (b) A bond issued under Subsection (a) must be: (1) issued by a company authorized to do business in this state; (2) payable to the state to be used: (A) for payment of a refund due a student of the course provider's approved course; (B) to cover the payment of unpaid fees or penalties assessed by the department [agency]; or (C) to recover the cost of uniform certificates of course completion the department [agency] demands be returned or any cost associated with the certificates; (3) conditioned on the compliance of the course provider and its officers, agents, and employees with this chapter and rules adopted under this chapter; and (4) issued for a period corresponding to the term of the license. SECTION 2.25. Section 1001.210, Education Code, is amended to read as follows: Sec. 1001.210. ALTERNATE FORM OF SECURITY. Instead of the bond required by Section 1001.207 or 1001.209, a driver education school or course provider may provide another form of security that is: (1) [(A)] approved by the department [commissioner]; and (2) [(B)] in the amount required for a comparable bond under Section 1001.207 or 1001.209. SECTION 2.26. Subsections (a) and (b), Section 1001.211, Education Code, are amended to read as follows: (a) The department [commissioner] shall issue a license to an applicant for a license under this subchapter if: (1) the application is submitted in accordance with this subchapter; and (2) the applicant meets the requirements of this chapter. (b) A license must be in a form determined by the department [commissioner] and must show in a clear and conspicuous manner: (1) the date of issuance, effective date, and term of the license; (2) the name and address of the driver training school or course provider; (3) the authority for and conditions of approval; (4) the executive director's [commissioner's] signature; and (5) any other fair and reasonable representation that is consistent with this chapter and that the department [commissioner] considers necessary. SECTION 2.27. Section 1001.212, Education Code, is amended to read as follows: Sec. 1001.212. NOTICE OF DENIAL OF LICENSE. The department [commissioner] shall provide a person whose application for a license under this subchapter is denied a written statement of the reasons for the denial. SECTION 2.28. Subsections (c) and (d), Section 1001.213, Education Code, are amended to read as follows: (c) The commission may establish [Instead of the] fees [required by Section 1001.151, the fee] for a new driver education school or course provider license under Subsection (b) and [is $500, plus $200] for each branch location that are different from the amounts established under Section 1001.151[,] if: (1) the new owner is substantially similar to the previous owner; and (2) there is no significant change in the management or control of the driver education school or course provider. (d) The department [commissioner] is not required to reinspect a school or a branch location after a change of ownership. SECTION 2.29. Section 1001.214, Education Code, is amended to read as follows: Sec. 1001.214. DUPLICATE LICENSE. A duplicate license may be issued to a driver training school or course provider if: (1) the original license is lost or destroyed; and (2) an affidavit of that fact is filed with the department [agency]. SECTION 2.30. Sections 1001.251, 1001.252, and 1001.253, Education Code, are amended to read as follows: Sec. 1001.251. LICENSE REQUIRED FOR INSTRUCTOR. (a) A person may not teach or provide driver education, either as an individual or in a driver education school, or conduct any phase of driver education, unless the person holds a driver education instructor license issued by the department [agency]. (b) A person may not teach or provide driving safety training, either as an individual or in a driving safety school, or conduct any phase of driving safety education, unless the person holds a driving safety instructor license issued by the department [agency]. This subsection does not apply to an instructor of a driving safety course that does not provide a uniform certificate of course completion to its graduates. Sec. 1001.252. SIGNATURE AND SEAL ON LICENSE REQUIRED. A license under this subchapter must be signed by the executive director [commissioner]. Sec. 1001.253. DRIVER EDUCATION INSTRUCTOR TRAINING. (a) The department [commissioner] shall establish standards for certification of professional and paraprofessional personnel who conduct driver education programs in driver education schools. (b) A driver education instructor license authorizing a person to teach or provide behind-the-wheel training may not be issued unless the person has successfully completed six semester hours of driver and traffic safety education or a program of study in driver education approved by the department [commissioner] from an approved driver education school. (c) A person who holds a driver education instructor license authorizing behind-the-wheel training may not be approved to assist a classroom instructor in the classroom phase of driver education unless the person has successfully completed the three additional semester hours of training required for a classroom instructor or a program of study in driver education approved by the department [commissioner]. (d) Except as provided by Section 1001.254, a driver education instructor license authorizing a person to teach or provide classroom training may not be issued unless the person: (1) has completed nine semester hours of driver and traffic safety education or a program of study in driver education approved by the department [commissioner] from an approved driver education school; and (2) holds a teaching certificate and any additional certification required to teach driver education. (e) A driver education instructor who has completed the educational requirements prescribed by Subsection (d)(1) may not teach instructor training classes unless the instructor has successfully completed a supervising instructor development program consisting of at least six additional semester hours or a program of study in driver education approved by the department [commissioner] that includes administering driver education programs and supervising and administering traffic safety education. (f) A driver education school may submit for department [agency] approval a curriculum for an instructor development program for driver education instructors. The program must: (1) be taught by a person who has completed a supervising instructor development program under Subsection (e); and (2) satisfy the requirements of this section for the particular program or type of training to be provided. SECTION 2.31. Subsection (a), Section 1001.254, Education Code, is amended to read as follows: (a) A temporary driver education instructor license may be issued authorizing a person to teach or provide classroom driver education training if the person: (1) has completed the educational requirements prescribed by Section 1001.253(d)(1); (2) holds a Texas teaching certificate with an effective date before February 1, 1986; (3) meets all license requirements, other than successful completion of the examination required under rules adopted by the State Board for Educator Certification to revalidate the teaching certificate; and (4) demonstrates, in a manner prescribed by the department [commissioner], the intention to comply with the examination requirement at the first available opportunity. SECTION 2.32. Subsections (a), (b), and (c), Section 1001.255, Education Code, are amended to read as follows: (a) The department [agency] shall regulate as a driver education school a driver education instructor who: (1) teaches driver education courses in a county having a population of 50,000 or less; and (2) does not teach more than 200 students annually. (b) An instructor described by Subsection (a) must submit to the department [agency] an application for an initial or renewal driver education school license, together with all required documentation and information. (c) The department [commissioner] may waive initial or renewal driver education school license fees or the fee for a director or administrative staff member. SECTION 2.33. Section 1001.256, Education Code, is amended to read as follows: Sec. 1001.256. DUPLICATE LICENSE. A duplicate license may be issued to a driver education instructor or driving safety instructor if: (1) the original license is lost or destroyed; and (2) an affidavit of that fact is filed with the department [agency]. SECTION 2.34. The heading to Subchapter G, Chapter 1001, Education Code, is amended to read as follows:
SUBCHAPTER G. LICENSE EXPIRATION [AND RENEWAL]
SECTION 2.35. Subsection (b), Section 1001.351, Education Code, is amended to read as follows: (b) A course provider shall electronically submit to the department [agency] in the manner established by the department [agency] data identified by the department [agency] relating to uniform certificates of course completion. SECTION 2.36. Subsections (a) and (b), Section 1001.354, Education Code, are amended to read as follows: (a) A driving safety course may be taught at a driving safety school if the school is approved by the department [agency]. (b) A driving safety school may teach an approved driving safety course by an alternative method that does not require students to be present in a classroom if the department [commissioner] approves the alternative method. The department [commissioner] may approve the alternative method if: (1) the department [commissioner] determines that the approved driving safety course can be taught by the alternative method; and (2) the alternative method includes testing and security measures that are at least as secure as the measures available in the usual classroom setting. SECTION 2.37. Subsections (b) and (c), Section 1001.404, Education Code, are amended to read as follows: (b) The department [commissioner] shall establish annually the rate of interest for a refund at a rate sufficient to provide a deterrent to the retention of student money. (c) The department [agency] may except a driver education school or course provider from the payment of interest if the school or course provider makes a good-faith effort to refund tuition, fees, and other charges but is unable to locate the student to whom the refund is owed. On request of the department [agency], the school or course provider shall document the effort to locate a student. SECTION 2.38. Sections 1001.451 and 1001.452, Education Code, are amended to read as follows: Sec. 1001.451. PROHIBITED PRACTICES. A person may not: (1) use advertising designed to mislead or deceive a prospective student; (2) fail to notify the department [commissioner] of the discontinuance of the operation of a driver training school before the fourth working day after the date of cessation of classes and make available accurate records as required by this chapter; (3) issue, sell, trade, or transfer: (A) a uniform certificate of course completion or driver education certificate to a person or driver training school not authorized to possess the certificate; (B) a uniform certificate of course completion to a person who has not successfully completed an approved, six-hour driving safety course; or (C) a driver education certificate to a person who has not successfully completed a department-approved [commissioner-approved] driver education course; (4) negotiate a promissory instrument received as payment of tuition or another charge before the student completes 75 percent of the course, except that before that time the instrument may be assigned to a purchaser who becomes subject to any defense available against the school named as payee; or (5) conduct any part of an approved driver education course or driving safety course without having an instructor physically present in appropriate proximity to the student for the type of instruction being given. Sec. 1001.452. COURSE OF INSTRUCTION. A driver training school may not maintain, advertise, solicit for, or conduct a course of instruction in this state before the later of: (1) the 30th day after the date the school applies for a driver training school license; or (2) the date the school receives a driver training school license from the department [commissioner]. SECTION 2.39. Subsections (d) and (e), Section 1001.453, Education Code, are amended to read as follows: (d) Subchapter F, Chapter 51, Occupations Code, Section 51.353, Occupations Code, and Section [Sections 1001.454,] 1001.456(a) of this code[, and 1001.553] do not apply to a violation of this section or a rule adopted under this section. (e) Section 51.352, Occupations Code, and Sections [1001.455(a)(6),] 1001.501[, 1001.551, 1001.552,] and 1001.554 of this code do not apply to a violation of this section. SECTION 2.40. Section 1001.456, Education Code, is amended to read as follows: Sec. 1001.456. OTHER DISCIPLINARY ACTIONS. (a) If the department [agency] believes that a driver education school or instructor has violated this chapter or a rule or order of the commission or executive director [adopted under this chapter], the department [agency] may, without notice: (1) order a peer review; (2) suspend the enrollment of students in the school or the offering of instruction by the instructor; or (3) suspend the right to purchase driver education certificates. (b) If the department [agency] believes that a course provider, driving safety school, or driving safety instructor has violated this chapter or a rule or order of the commission or executive director [adopted under this chapter], the department [agency] may, without notice: (1) order a peer review of the course provider, driving safety school, or driving safety instructor; (2) suspend the enrollment of students in the school or the offering of instruction by the instructor; or (3) suspend the right to purchase uniform certificates of course completion. (c) A peer review ordered under this section must be conducted by a team of knowledgeable persons selected by the department [agency]. The team shall provide the department [agency] with an objective assessment of the content of the school's or course provider's curriculum and its application. The school or course provider shall pay the costs of the peer review. (d) A suspension of enrollment under Subsection (a)(2) or (b)(2) means a ruling by the executive director [commissioner] that restricts a school from: (1) accepting enrollments or reenrollments; (2) advertising; (3) soliciting; or (4) directly or indirectly advising prospective students of its program or course offerings. SECTION 2.41. The heading to Subchapter L, Chapter 1001, Education Code, is amended to read as follows:
SUBCHAPTER L. PENALTIES [AND ENFORCEMENT PROVISIONS]
SECTION 2.42. Subsection (b), Section 1001.555, Education Code, is amended to read as follows: (b) The department [agency] shall contract with the Department of Public Safety [department] to provide undercover and investigative assistance in the enforcement of Subsection (a). SECTION 2.43. Subsection (b), Article 45.0511, Code of Criminal Procedure, is amended to read as follows: (b) The judge shall require the defendant to successfully complete a driving safety course approved by the Texas Department of Licensing and Regulation [Education Agency] or a course under the motorcycle operator training and safety program approved by the designated state agency under Chapter 662, Transportation Code, if: (1) the defendant elects driving safety course or motorcycle operator training course dismissal under this article; (2) the defendant has not completed an approved driving safety course or motorcycle operator training course, as appropriate, within the 12 months preceding the date of the offense; (3) the defendant enters a plea under Article 45.021 in person or in writing of no contest or guilty on or before the answer date on the notice to appear and: (A) presents in person or by counsel to the court a request to take a course; or (B) sends to the court by certified mail, return receipt requested, postmarked on or before the answer date on the notice to appear, a written request to take a course; (4) the defendant has a valid Texas driver's license or permit; (5) the defendant is charged with an offense to which this article applies, other than speeding 25 miles per hour or more over the posted speed limit; and (6) the defendant provides evidence of financial responsibility as required by Chapter 601, Transportation Code. SECTION 2.44. Section 51.308, Education Code, is amended to read as follows: Sec. 51.308. DRIVER EDUCATION. A driver education course for the purpose of preparing students to obtain a driver's license may be offered by an institution of higher education, as defined by Section 61.003, with the approval of the Texas Department of Licensing and Regulation [Central Education Agency]. SECTION 2.45. Subsection (a), Section 521.1655, Transportation Code, is amended to read as follows: (a) A driver education school licensed under Chapter 1001, Education Code, [the Texas Driver and Traffic Safety Education Act (Article 4413(29c), Vernon's Texas Civil Statutes)] may administer to a student of that school the vision, highway sign, and traffic law parts of the examination required by Section 521.161. SECTION 2.46. Section 521.203, Transportation Code, is amended to read as follows: Sec. 521.203. RESTRICTIONS ON CLASS A AND B LICENSES. The department may not issue a Class A or Class B driver's license to a person who: (1) is under 17 years of age; (2) is under 18 years of age unless the person has completed a driver training course approved by the Texas Department of Licensing and Regulation [Central Education Agency]; or (3) has not provided the department with an affidavit, on a form prescribed by the department, that states that no vehicle that the person will drive that requires a Class A or Class B license is a commercial motor vehicle as defined by Section 522.003. SECTION 2.47. Subsections (b) and (d), Section 521.205, Transportation Code, are amended to read as follows: (b) The department may not approve a course unless it determines that the course materials are at least equal to those required in a course approved by the Texas Department of Licensing and Regulation [Education Agency], except that the department may not require that: (1) the classroom instruction be provided in a room with particular characteristics or equipment; or (2) the vehicle used for the behind-the-wheel instruction have equipment other than the equipment otherwise required by law for operation of the vehicle on a highway while the vehicle is not being used for driver training. (d) Completion of a driver education course approved under this section has the same effect under this chapter as completion of a driver education course approved by the Texas Department of Licensing and Regulation [Education Agency]. SECTION 2.48. Subdivision (1), Section 1001.001, Subsections (b) and (c), Section 1001.053, Subsections (a) and (b), Section 1001.054, and Sections 1001.152, 1001.303, 1001.304, 1001.454, 1001.455, 1001.457, 1001.458, 1001.459, 1001.460, 1001.461, 1001.551, 1001.552, and 1001.553, Education Code, and Subchapter B, Chapter 543, Transportation Code, are repealed. SECTION 2.49. (a) As soon as practicable after the effective date of this Act, the Texas Education Agency and the Texas Department of Licensing and Regulation shall develop a transition plan for transferring the functions performed by the Texas Education Agency under Chapter 1001, Education Code, to the Texas Department of Licensing and Regulation. The transition plan must include a timetable with specific steps and deadlines needed to complete the transfer. (b) In accordance with the transition plan developed by the Texas Education Agency and the Texas Department of Licensing and Regulation under Subsection (a) of this section, on September 1, 2005: (1) all functions and activities relating to Chapter 1001, Education Code, performed by the Texas Education Agency immediately before that date are transferred to the Texas Department of Licensing and Regulation; (2) a rule or form adopted by the commissioner of education that relates to Chapter 1001, Education Code, is a rule or form of the Texas Commission of Licensing and Regulation or the Texas Department of Licensing and Regulation, as applicable, and remains in effect until amended or replaced by that commission or department; (3) a reference in law to or an administrative rule of the Texas Education Agency that relates to Chapter 1001, Education Code, means the Texas Commission of Licensing and Regulation or the Texas Department of Licensing and Regulation, as applicable; (4) a complaint, investigation, or other proceeding before the Texas Education Agency that is related to Chapter 1001, Education Code, is transferred without change in status to the Texas Department of Licensing and Regulation, and the Texas Department of Licensing and Regulation assumes, as appropriate and without a change in status, the position of the Texas Education Agency in an action or proceeding to which the Texas Education Agency is a party; (5) all money, contracts, leases, property, and obligations of the Texas Education Agency related to Chapter 1001, Education Code, are transferred to the Texas Department of Licensing and Regulation; (6) all property in the custody of the Texas Education Agency related to Chapter 1001, Education Code, is transferred to the Texas Department of Licensing and Regulation; and (7) the unexpended and unobligated balance of any money appropriated by the legislature for the Texas Education Agency related to Chapter 1001, Education Code, is transferred to the Texas Department of Licensing and Regulation. (c) In accordance with the transition plan developed by the Texas Education Agency and the Texas Department of Licensing and Regulation under Subsection (a) of this section, on September 1, 2005, all full-time equivalent employee positions at the Texas Education Agency that primarily concern the administration of Chapter 1001, Education Code, become positions at the Texas Department of Licensing and Regulation. When filling the positions, the Texas Department of Licensing and Regulation shall give first consideration to an applicant who, as of August 31, 2005, was a full-time employee at the Texas Education Agency primarily involved in administering Chapter 1001, Education Code. (d) Before September 1, 2005, the Texas Education Agency may agree with the Texas Department of Licensing and Regulation to transfer any property of the Texas Education Agency to the Texas Department of Licensing and Regulation to implement the transfer required by this Act. (e) In the period beginning with the effective date of this Act and ending on September 1, 2005, the Texas Education Agency shall continue to perform functions and activities under Chapter 1001, Education Code, as if that chapter had not been amended by this Act, and the former law is continued in effect for that purpose. (f) If this Act does not take effect immediately, an action required to be taken under this section on or before September 1, 2005, by the Texas Education Agency or the Texas Department of Licensing and Regulation shall be taken as soon as practicable after the effective date of this Act, but not later than November 1, 2005. SECTION 2.50. The changes in law made by this article apply only to a fee charged on or after September 1, 2005. A fee charged before September 1, 2005, is governed by the law in effect immediately before that date, and the former law is continued in effect for that purpose. SECTION 2.51. The changes in law made by this article apply only to a license issued or renewed on or after September 1, 2005. An issuance or renewal that occurs before September 1, 2005, is governed by the law in effect immediately before that date, and the former law is continued in effect for that purpose.
ARTICLE 3. EFFECTIVE DATE
SECTION 3.01. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2005.