Amend CSSB 3 (committee printing) as follows:                                
	(1)  Add the following appropriately numbered SECTION to the 
bill (page 1, between lines 11 and 12):

	SECTION ____.  Section 7.028(a), Education Code, is amended 
to read as follows:
	(a)  Except as provided by Section 29.001(5), 29.010(a), 
39.056 [39.074], or 39.057 [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.                                        
	(2)  Add the following appropriately numbered SECTIONS to 
the bill (page 2, between lines 2 and 3):
	SECTION ____.  Sections 8.051(b) and (d), Education Code, 
are amended to read as follows:
	(b)  Each regional education service center shall annually 
develop and submit to the commissioner for approval a plan for 
improvement.  Each plan must include the purposes and description 
of the services the center will provide to:
		(1)  campuses that fail to satisfy any standard
[identified as academically unacceptable based on the indicators 
adopted] under Section 39.054(d) [39.051];
		(2)  the lowest-performing campuses in the region; and                        
		(3)  other campuses.                                                          
	(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 rated accredited-warned or accredited-probation
[academically unacceptable] under Section 39.052 [39.072(a)] or a 
campus that fails to satisfy any standard [whose performance is 
considered unacceptable based on the indicators adopted] under 
Section 39.054(d) [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 ____.  Section 11.001, Education Code, is amended to 
read as follows:
	Sec. 11.001.  ACCREDITATION.  Each school district must be 
accredited by the agency as provided by Subchapter C [D], Chapter 
39.
	SECTION ____.  Section 11.003(d), Education Code, is amended 
to read as follows:
	(d)  The commissioner may require a district to enter into a 
cooperative shared services arrangement for administrative 
services if the commissioner determines:
		(1)  that the district has failed to satisfy a 
financial accountability standard as determined by commissioner 
rule under Subchapter D [I], Chapter 39; and
		(2)  that entering into a cooperative shared services 
arrangement would:    
			(A)  enable the district to enhance its 
performance on the financial accountability standard identified 
under Subdivision (1); and
			(B)  promote the efficient operation of the 
district.                      
	SECTION ____.  Section 11.1511(b), Education Code, is 
amended to read as follows:
	(b)  The board shall:                                                          
		(1)  seek to establish working relationships with other 
public entities to make effective use of community resources and to 
serve the needs of public school students in the community;
		(2)  adopt a vision statement and comprehensive goals 
for the district and the superintendent and monitor progress toward 
those goals;
		(3)  establish performance goals for the district 
concerning:               
			(A)  the academic and fiscal performance 
indicators under Subchapters C, D, and J [I], Chapter 39[, 
respectively]; and
			(B)  any performance indicators adopted by the 
district;                   
		(4)  ensure that the superintendent:                                          
			(A)  is accountable for achieving performance 
results;                     
			(B)  recognizes performance accomplishments; and                             
			(C)  takes action as necessary to meet performance 
goals;                  
		(5)  adopt a policy to establish a district- and 
campus-level planning and decision-making process as required 
under Section 11.251;
		(6)  publish an annual educational performance report 
as required under Section 39.306 [39.053];
		(7)  adopt an annual budget for the district as 
required under Section 44.004;
		(8)  adopt a tax rate each fiscal year as required under 
Section 26.05, Tax Code;
		(9)  monitor district finances to ensure that the 
superintendent is properly maintaining the district's financial 
procedures and records;
		(10)  ensure that district fiscal accounts are audited 
annually as required under Section 44.008;
		(11)  publish an end-of-year financial report for 
distribution to the community;
		(12)  conduct elections as required by law;                                   
		(13)  by rule, adopt a process through which district 
personnel, students or the parents or guardians of students, and 
members of the public may obtain a hearing from the district 
administrators and the board regarding a complaint;
		(14)  make decisions relating to terminating the 
employment of district employees employed under a contract to which 
Chapter 21 applies, including terminating or not renewing an 
employment contract to which that chapter applies; and
		(15)  carry out other powers and duties as provided by 
this code or other law.
	SECTION ____.  Section 11.201(d), Education Code, is amended 
to read as follows:
	(d)  The duties of the superintendent include:                                 
		(1)  assuming administrative responsibility and 
leadership for the planning, organization, operation, supervision, 
and evaluation of the education programs, services, and facilities 
of the district and for the annual performance appraisal of the 
district's staff;
		(2)  except as provided by Section 11.202, assuming 
administrative authority and responsibility for the assignment, 
supervision, and evaluation of all personnel of the district other 
than the superintendent;
		(3)  overseeing compliance with the standards for 
school facilities established by the commissioner under Section 
46.008;
		(4)  initiating the termination or suspension of an 
employee or the nonrenewal of an employee's term contract;
		(5)  managing the day-to-day operations of the district 
as its administrative manager, including implementing and 
monitoring plans, procedures, programs, and systems to achieve 
clearly defined and desired results in major areas of district 
operations;
		(6)  preparing and submitting to the board of trustees 
a proposed budget as provided by Section 44.002 and rules adopted 
under that section, and administering the budget;
		(7)  preparing recommendations for policies to be 
adopted by the board of trustees and overseeing the implementation 
of adopted policies;
		(8)  developing or causing to be developed appropriate 
administrative regulations to implement policies established by 
the board of trustees;
		(9)  providing leadership for the attainment and, if 
necessary, improvement of student performance in the district based 
on the indicators adopted under Sections 39.053 and 39.301 [Section 
39.051] and other indicators adopted by the commissioner [State 
Board of Education] or the district's board of trustees;
		(10)  organizing the district's central 
administration;                     
		(11)  consulting with the district-level committee as 
required under Section 11.252(f);
		(12)  ensuring:                                                               
			(A)  adoption of a student code of conduct as 
required under Section 37.001 and enforcement of that code of 
conduct; and
			(B)  adoption and enforcement of other student 
disciplinary rules and procedures as necessary;
		(13)  submitting reports as required by state or 
federal law, rule, or regulation;
		(14)  providing joint leadership with the board of 
trustees to ensure that the responsibilities of the board and 
superintendent team are carried out; and
		(15)  performing any other duties assigned by action of 
the board of trustees.
	(3)  In SECTION 2 of the bill, in amended Section 11.203(d), 
Education Code (page 2, lines 6 and 7), strike "campus that was
rated academically unacceptable during the preceding school year [, 
as" and substitute "campus that failed to satisfy any standard 
under Section 39.054(d) during the preceding school year [rated 
academically unacceptable, as]".
	(4)  Add the following appropriately numbered SECTIONS to 
the bill (page 2, between lines 10 and 11):
	SECTION ____.  Section 11.252(a), Education Code, is amended 
to read as follows:
	(a)  Each school district shall have a district improvement 
plan that is developed, evaluated, and revised annually, in 
accordance with district policy, by the superintendent with the 
assistance of the district-level committee established under 
Section 11.251.  The purpose of the district improvement plan is to 
guide district and campus staff in the improvement of student 
performance for all student groups in order to attain state 
standards in respect to the student achievement [academic 
excellence] indicators adopted under Section 39.053 [39.051].  The 
district improvement plan must include provisions for:
		(1)  a comprehensive needs assessment addressing 
district student performance on the student achievement [academic 
excellence] indicators, and other appropriate measures of 
performance, that are disaggregated by all student groups served by 
the district, including categories of ethnicity, socioeconomic 
status, sex, and populations served by special programs, including 
students in special education programs under Subchapter A, Chapter 
29;
		(2)  measurable district performance objectives for 
all appropriate student achievement [academic excellence] 
indicators for all student populations, including students in 
special education programs under Subchapter A, Chapter 29, and 
other measures of student performance that may be identified 
through the comprehensive needs assessment;
		(3)  strategies for improvement of student performance 
that include:        
			(A)  instructional methods for addressing the 
needs of student groups not achieving their full potential;
			(B)  methods for addressing the needs of students 
for special programs, such as suicide prevention, conflict 
resolution, violence prevention, or dyslexia treatment programs;
			(C)  dropout reduction;                                                      
			(D)  integration of technology in instructional 
and administrative programs;
			(E)  discipline management;                                                  
			(F)  staff development for professional staff of 
the district;             
			(G)  career education to assist students in 
developing the knowledge, skills, and competencies necessary for a 
broad range of career opportunities; and
			(H)  accelerated education;                                                  
		(4)  strategies for providing to middle school, junior 
high school, and high school students, those students' teachers and 
counselors, and those students' parents information about:
			(A)  higher education admissions and financial 
aid opportunities;          
			(B)  the TEXAS grant program and the Teach for 
Texas grant program established under Chapter 56;
			(C)  the need for students to make informed 
curriculum choices to be prepared for success beyond high school; 
and
			(D)  sources of information on higher education 
admissions and financial aid;
		(5)  resources needed to implement identified 
strategies;                   
		(6)  staff responsible for ensuring the accomplishment 
of each strategy;    
		(7)  timelines for ongoing monitoring of the 
implementation of each improvement strategy; and
		(8)  formative evaluation criteria for determining 
periodically whether strategies are resulting in intended 
improvement of student performance.
	SECTION ____.  Sections 11.253(c) and (d), Education Code, 
are amended to read as follows:
	(c)  Each school year, the principal of each school campus, 
with the assistance of the campus-level committee, shall develop, 
review, and revise the campus improvement plan for the purpose of 
improving student performance for all student populations, 
including students in special education programs under Subchapter 
A, Chapter 29, with respect to the student achievement [academic 
excellence] indicators adopted under Section 39.053 [39.051] and 
any other appropriate performance measures for special needs 
populations.
	(d)  Each campus improvement plan must:                                        
		(1)  assess the academic achievement for each student 
in the school using the student achievement [academic excellence] 
indicator system as described by Section 39.053 [39.051];
		(2)  set the campus performance objectives based on the 
student achievement [academic excellence] indicator system, 
including objectives for special needs populations, including 
students in special education programs under Subchapter A, Chapter 
29;
		(3)  identify how the campus goals will be met for each 
student;            
		(4)  determine the resources needed to implement the 
plan;                  
		(5)  identify staff needed to implement the plan;                             
		(6)  set timelines for reaching the goals;                                    
		(7)  measure progress toward the performance 
objectives periodically to ensure that the plan is resulting in 
academic improvement;
		(8)  include goals and methods for violence prevention 
and intervention on campus; and
		(9)  provide for a program to encourage parental 
involvement at the campus. 
	SECTION ____.  Section 11.255(a), Education Code, is amended 
to read as follows:
	(a)  Each district-level planning and decision-making 
committee and each campus-level planning and decision-making 
committee for a junior, middle, or high school campus shall analyze 
information related to dropout prevention, including:
		(1)  the results of the audit of dropout records 
required by Section 39.308 [39.055];
		(2)  campus information related to graduation rates, 
dropout rates, high school equivalency certificate rates, and the 
percentage of students who remain in high school more than four 
years after entering grade level 9;
		(3)  the number of students who enter a high school 
equivalency certificate program and:
			(A)  do not complete the program;                                            
			(B)  complete the program but do not take the high 
school equivalency examination; or
			(C)  complete the program and take the high school 
equivalency examination but do not obtain a high school equivalency 
certificate;
		(4)  for students enrolled in grade levels 9 and 10, 
information related to academic credit hours earned, retention 
rates, and placements in alternative education programs and 
expulsions under Chapter 37; and
		(5)  the results of an evaluation of each school-based 
dropout prevention program in the district.
	SECTION ____.  Section 12.013(b), Education Code, is amended 
to read as follows:
	(b)  A home-rule school district is subject to:                                
		(1)  a provision of this title establishing a criminal 
offense;             
		(2)  a provision of this title relating to limitations 
on liability; and    
		(3)  a prohibition, restriction, or requirement, as 
applicable, imposed by this title or a rule adopted under this 
title, relating to:
			(A)  the Public Education Information Management 
System (PEIMS) to the extent necessary to monitor compliance with 
this subchapter as determined by the commissioner;
			(B)  educator certification under Chapter 21 and 
educator rights under Sections 21.407, 21.408, and 22.001;
			(C)  criminal history records under Subchapter C, 
Chapter 22;              
			(D)  student admissions under Section 25.001;                                
			(E)  school attendance under Sections 25.085, 
25.086, and 25.087;          
			(F)  inter-district or inter-county transfers of 
students under Subchapter B, Chapter 25;
			(G)  elementary class size limits under Section 
25.112, in the case of any campus in the district that fails to 
satisfy any standard [is considered academically unacceptable] 
under Section 39.054(d) [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, E, and J [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 ____.  Section 12.056(b), Education Code, is amended 
to read as follows:
	(b)  A campus or program for which a charter is granted under 
this subchapter is subject to:
		(1)  a provision of this title establishing a criminal 
offense; and         
		(2)  a prohibition, restriction, or requirement, as 
applicable, imposed by this title or a rule adopted under this 
title, relating to:
			(A)  the Public Education Information Management 
System (PEIMS) to the extent necessary to monitor compliance with 
this subchapter as determined by the commissioner;
			(B)  criminal history records under Subchapter C, 
Chapter 22;              
			(C)  high school graduation under Section 28.025;                            
			(D)  special education programs under Subchapter 
A, Chapter 29;            
			(E)  bilingual education under Subchapter B, 
Chapter 29;                   
			(F)  prekindergarten programs under Subchapter E, 
Chapter 29;              
			(G)  extracurricular activities under Section 
33.081;                      
			(H)  health and safety under Chapter 38; and                                 
			(I)  public school accountability under 
Subchapters B, C, E [D], and J [G], Chapter 39.
	SECTION ____.  Section 12.1012(5), Education Code, is 
amended to read as follows:
		(5)  "Management services" means services related to 
the management or operation of an open-enrollment charter school, 
including:
			(A)  planning, operating, supervising, and 
evaluating the school's educational programs, services, and 
facilities;
			(B)  making recommendations to the governing body 
of the school relating to the selection of school personnel;
			(C)  managing the school's day-to-day operations 
as its administrative manager;
			(D)  preparing and submitting to the governing 
body of the school a proposed budget;
			(E)  recommending policies to be adopted by the 
governing body of the school, developing appropriate procedures to 
implement policies adopted by the governing body of the school, and 
overseeing the implementation of adopted policies; and
			(F)  providing leadership for the attainment of 
student performance at the school based on the indicators adopted 
under Sections 39.053 and 39.301 [Section 39.051] or by the 
governing body of the school.
	(5)  Add the following appropriately numbered SECTIONS to 
the bill (page 2, between lines 46 and 47):
	SECTION ____.  Section 12.1054(a), Education Code, is 
amended to read as follows:
	(a)  A member of the governing body of a charter holder, a 
member of the governing body of an open-enrollment charter school, 
or an officer of an open-enrollment charter school is considered to 
be a local public official for purposes of Chapter 171, Local 
Government Code.  For purposes of that chapter:
		(1)  a member of the governing body of a charter holder 
or a member of the governing body or officer of an open-enrollment 
charter school is considered to have a substantial interest in a 
business entity if a person related to the member or officer in the 
third degree by consanguinity or affinity, as determined under 
Chapter 573, Government Code, has a substantial interest in the 
business entity under Section 171.002, Local Government Code;
		(2)  notwithstanding any provision of Subdivision (1)
[Section 12.1054(1)], an employee of an open-enrollment charter 
school that satisfies all performance standards [rated as 
academically acceptable or higher] under Section 39.054(d)
[Chapter 39] for at least two of the preceding three school years 
may serve as a member of the governing body of the charter holder of 
the governing body of the school if the employees do not constitute 
a quorum of the governing body or any committee of the governing 
body;  however, all members shall comply with the requirements of 
Sections 171.003-171.007, Local Government Code.
	SECTION ____.  Section 12.1055(b), Education Code, is 
amended to read as follows:
	(b)  Notwithstanding Subsection (a), if an open-enrollment 
charter school satisfies all performance standards [is rated 
academically acceptable or higher] under Section 39.054(d)
[Chapter 39] for at least two of the preceding three school years, 
then Chapter 573, Government Code, does not apply to that school;  
however, a member of the governing body of a charter holder or a 
member of the governing body or officer of an open-enrollment 
charter school shall comply with the requirements of Sections 
171.003-171.007, Local Government Code, with respect to a personnel 
matter concerning a person related to the member or officer within 
the degree specified by Section 573.002, Government Code, as if the 
personnel matter were a transaction with a business entity subject 
to those sections, and persons defined under Sections 
573.021-573.025, Government Code, shall not constitute a quorum of 
the governing body or any committee of the governing body.
	SECTION ____.  Section 12.1162(a), Education Code, is 
amended to read as follows:
	(a)  The commissioner shall take any of the actions described 
by Subsection (b) or by Section 39.101(a) [39.131(a)], to the 
extent the commissioner determines necessary, if an 
open-enrollment charter school, as determined by a report issued 
under Section 39.058(b) [39.076(b)]:
		(1)  commits a material violation of the school's 
charter;                  
		(2)  fails to satisfy generally accepted accounting 
standards of fiscal management; or
		(3)  fails to comply with this subchapter or another 
applicable rule or law.
	SECTION ____.  Section 18.006(a), Education Code, is amended 
to read as follows:
	(a)  The commissioner shall develop and implement a system of 
accountability consistent with Chapter 39, where appropriate, to be 
used in assigning an annual performance rating to Job Corps diploma 
programs comparable to the ratings assigned to school districts 
under Section 39.054 [39.072].
	SECTION ____.  Section 21.354(e), Education Code, is amended 
to read as follows:
	(e)  The appraisal of a principal shall include 
consideration of the performance of a principal's campus on the 
student achievement indicators established under Section 39.053
[39.051] and the campus's objectives established under Section 
11.253, including performance gains of the campus and the 
maintenance of those gains.
	SECTION ____.  Section 21.357(c), Education Code, is amended 
to read as follows:
	(c)  A performance incentive awarded to a principal under 
this section must be distributed to the principal's school and used 
in the manner determined by the campus-level committee established 
under Section 11.253 in accordance with the requirements of Section 
39.264(a) [39.094(a)].
	SECTION ____.  Section 21.4541(b), Education Code, is 
amended to read as follows:
	(b)  A school district or campus is eligible to participate 
in the pilot program under this section if the district or campus 
meets the eligibility criteria established as provided by Section 
39.408 [39.358].
	SECTION ____.  Section 21.4551(c), Education Code, is 
amended to read as follows:
	(c)  The commissioner by rule shall require a teacher to 
attend a reading academy if the teacher provides instruction in 
reading, mathematics, science, or social studies to students at the 
sixth, seventh, or eighth grade level at a campus that fails to 
satisfy any standard [is considered academically unacceptable] 
under Section 39.054(d) [39.132] on the basis of student 
performance on the reading assessment instrument administered 
under Section 39.023(a) to students in any grade level at the 
campus.
	(6)  Add the following appropriately numbered SECTIONS to 
the bill (page 2, between lines 59 and 60):
	SECTION ____.  Section 28.006(j), Education Code, is amended 
to read as follows:
	(j)  No more than 15 percent of the funds certified by the 
commissioner under Subsection (i) may be spent on indirect 
costs.  The commissioner shall evaluate the programs that fail to 
meet the standard of performance under Section 39.301(c)(4)
[39.051(b)(8)] and may implement sanctions under Subchapter E [G], 
Chapter 39.  The commissioner may audit the expenditures of funds 
appropriated for purposes of this section.  The use of the funds 
appropriated for purposes of this section shall be verified as part 
of the district audit under Section 44.008.
	SECTION ____.  Section 28.014(d), Education Code, is amended 
to read as follows:
	(d)  The agency, in coordination with the Texas Higher 
Education Coordinating Board, shall adopt a series of questions to 
be included in an end-of-course assessment instrument administered 
under Subsection (c) to be used for purposes of Section 
51.3062.  The questions must be developed in a manner consistent 
with any college readiness standards adopted under Sections 39.233
[39.113] and 51.3062.  A student's performance on a question 
adopted under this subsection may not be used to determine the 
student's performance on an end-of-course assessment instrument.
	(7)  In SECTION 6 of the bill, in the recital (page 2, line 
66), strike "and (i)" and substitute "(i), and (k)".
	(8)  In SECTION 6 of the bill, in amended Section 28.0211, 
Education Code (page 5, between lines 32 and 33), add the following:
	(k)  The commissioner shall adopt rules as necessary to 
implement this section, including rules concerning when school 
districts shall administer assessment instruments required under 
this section and which administration of the assessment instruments 
will be used for purposes of Section 39.053 [39.051].
	(9)  In SECTION 7 of the bill, in amended Section 
28.025(b-1)(1)(A), Education Code (page 6, line 2), between 
"Section 28.002(a)(1)" and the semicolon, insert ", including at 
least one-half credit in government and at least one-half credit in 
economics to meet the social studies requirement".
	(10)  Add the following appropriately numbered SECTION to 
the bill (page 6, between lines 46 and 47):
	SECTION ____.  Section 29.062(a), Education Code, is amended 
to read as follows:
	(a)  The legislature recognizes that compliance with this 
subchapter is an imperative public necessity.  Therefore, in 
accordance with the policy of the state, the agency shall evaluate 
the effectiveness of programs under this subchapter based on the 
student achievement [academic excellence] indicators adopted under 
Section 39.053 [39.051(a)], including the results of assessment 
instruments.  The agency may combine evaluations under this section 
with federal accountability measures concerning students of 
limited English proficiency.
	(11)  Add the following appropriately numbered SECTIONS to 
the bill (page 6, between lines 56 and 57):
	SECTION ____.  Section 29.095(a)(1), Education Code, as 
added by Chapter 1058 (H.B. 2237), Acts of the 80th Legislature, 
Regular Session, 2007, is amended to read as follows:
		(1)  "Council" means the High School Completion and 
Success Initiative Council established under Subchapter M [L], 
Chapter 39.
	SECTION ____.  Section 29.095(c), Education Code, as added 
by Chapter 1058 (H.B. 2237), Acts of the 80th Legislature, Regular 
Session, 2007, is amended to read as follows:
	(c)  The commissioner may award a grant  in an amount not to 
exceed $5,000 in a school year to a school district on behalf of a 
student club at a district high school campus that is eligible under 
the criteria established under Section 39.408 [39.358].  To be 
eligible for a grant, the student club and the club's sponsor must 
be sanctioned by the campus and district. A grant awarded under this 
program must be matched by other federal, state, or local funds, 
including donations, in an amount equal to the amount of the grant. 
A district shall seek donations or sponsorships from local 
businesses or community organizations to raise the matching 
funds.  The commissioner may award a grant on behalf of more than 
one student club at a campus in the same school year.
	SECTION ____.  Sections 29.096(a) and (c), Education Code, 
are amended to read as follows:
	(a)  In this section, "council" means the High School 
Completion and Success Initiative Council established under 
Subchapter M [L], Chapter 39.
	(c)  A school district or open-enrollment charter school is 
eligible to participate and receive a grant under this section 
under the eligibility criteria established under Section 39.408
[39.358].
	SECTION ____.  Section 29.097(a)(1), Education Code, is 
amended to read as follows:
		(1)  "Council" means the High School Completion and 
Success Initiative Council established under Subchapter M [L], 
Chapter 39.
	SECTION ____.  Section 29.097(c), Education Code, is amended 
to read as follows:
	(c)  The commissioner may select for participation in the 
pilot program only a campus that is eligible under the criteria 
established under Section 39.408 [39.358].
	SECTION ____.  Section 29.098(c), Education Code, is amended 
to read as follows:
	(c)  The commissioner of education may select for 
participation in the pilot program only a campus that is eligible 
under the criteria established under Section 39.408 [39.358].
	SECTION ____.  Section 29.202(a), Education Code, is amended 
to read as follows:
	(a)  A student is eligible to receive a public education 
grant or to attend another public school in the district in which 
the student resides under this subchapter if the student is 
assigned to attend a public school campus:
		(1)  at which 50 percent or more of the students did not 
perform satisfactorily on an assessment instrument administered 
under Section 39.023(a) or (c) in any two of the preceding three 
years; or
		(2)  that [was], at any time in the preceding three 
years, failed to satisfy any standard [considered academically 
unacceptable] under Section 39.054(d) [39.132].
	(12)  Add the following appropriately numbered SECTIONS to 
the bill (page 7, between lines 23 and 24):
	SECTION ____.  Section 29.906(e), Education Code, is amended 
to read as follows:
	(e)  The agency shall:                                                         
		(1)  maintain a list of character education programs 
that school districts have implemented that meet the criteria under 
Subsection (b);
		(2)  based on data reported by districts, annually 
designate as a Character Plus School each school that provides a 
character education program that:
			(A)  meets the criteria prescribed by Subsection 
(b); and                  
			(B)  is approved by the committee selected under 
Subsection (c); and       
		(3)  include in the report required under Section 
39.332 [39.182]:
			(A)  based on data reported by districts, the 
impact of character education programs on student discipline and 
academic achievement; and
			(B)  other reported data relating to character 
education programs the agency considers appropriate for inclusion.
	SECTION ____.  Sections 29.918(a) and (c), Education Code, 
are amended to read as follows:
	(a)  Notwithstanding Section 39.234 [39.114] or 42.152, a 
school district or open-enrollment charter school with a high 
dropout rate, as determined by the commissioner, must submit a plan 
to the commissioner describing the manner in which the district or 
charter school intends to use the compensatory education allotment 
under Section 42.152 and the high school allotment under Section 
42.2516(b)(3) for developing and implementing research-based 
strategies for dropout prevention.  The district or charter school 
shall submit the plan not later than December 1 of each school year 
preceding the school year in which the district or charter school 
will receive the compensatory education allotment or high school 
allotment to which the plan applies.
	(c)  The commissioner shall adopt rules to administer this 
section.  The commissioner may impose interventions or sanctions 
under Section 39.101 [39.131] or 39.103 [39.1321] if a school 
district or open-enrollment charter school fails to timely comply 
with this section.
	SECTION ____.  Section 30A.101, Education Code, is amended 
to read as follows:
	Sec. 30A.101.  ELIGIBILITY TO ACT AS PROVIDER SCHOOL 
DISTRICT OR SCHOOL.  (a)  A school district is eligible to act as a 
provider school district under this chapter only if the district is 
rated accredited [academically acceptable or higher] under Section 
39.052 [39.072].
	(b)  An open-enrollment charter school is eligible to act as 
a provider school under this chapter only if the school satisfies 
all performance standards [is rated recognized or higher] under 
Section 39.054(d) [39.072], and may serve as a provider school 
only:
		(1)  to a student within the school district in which 
the school is located or within its service area, whichever is 
smaller; or
		(2)  to another student in the state through an 
agreement with the administering authority under Section 30A.153.
	SECTION ____.  Section 32.157(a), Education Code, is amended 
to read as follows:
	(a)  After the expiration of the pilot project, the agency 
may review the pilot project based on the annual reports the agency 
receives from the board of trustees of participating school 
districts.  The agency may include the review of the pilot project 
in the comprehensive annual report required under Section 39.332
[39.182] that covers the 2010-2011 school year.
	(13)  In SECTION 21 of the bill, in proposed Section 
39.053(g-1)(2), Education Code (page 19, line 16), strike "and".
	(14)  In SECTION 21 of the bill, in proposed Section 
39.053(g-1)(4), Education Code (page 19, lines 19-21), strike 
"students who first enrolled in U.S. schools in grades 7 through 12 
as unschooled refugees or asylees per Section 39.027(a-2)" and 
substitute "students whose initial enrollment in a school in the 
United States in grades 7 through 12 was as unschooled refugees or 
asylees as defined by Section 39.027(a-2)".
	(15)  In SECTION 21 of the bill, in proposed Section 
39.053(g-1)(5), Education Code (page 19, line 24), strike 
"nonstudents" and substitute "not students".
	(16)  In SECTION 21 of the bill, in proposed Section 
39.054(e), Education Code (page 22, line 33), strike "the provision 
of this section" and substitute "this subsection".
	(17)  In SECTION 21 of the bill, in proposed Section 39.055, 
Education Code (page 22, line 41), strike "government entity" and 
substitute "governmental entity".
	(18)  Add the following appropriately numbered SECTION to 
the bill (page 52, between lines 54 and 55):
	SECTION ____.  Section 42.002(b), Education Code, is amended 
to read as follows:
	(b)  The Foundation School Program consists of:                                
		(1)  two tiers that in combination provide for:                               
			(A)  sufficient financing for all school 
districts to provide a basic program of education that is rated 
accredited [academically acceptable or higher] under Section 
39.052 [39.072] and meets other applicable legal standards; and
			(B)  substantially equal access to funds to 
provide an enriched program; and
		(2)  a facilities component as provided by Chapter 46.                        
	(19)  Add the following appropriately numbered SECTION to 
the bill (page 54, between lines 31 and 32):
	SECTION ____.  Section 302.006(c), Labor Code, is amended to 
read as follows:
	(c)  To be eligible to receive a scholarship awarded under 
this section, a person must:
		(1)  be employed in a child-care facility, as defined 
by Section 42.002, Human Resources Code;
		(2)  intend to obtain a credential, certificate, or 
degree specified in Subsection (b);
		(3)  agree to work for at least 18 additional months in 
a child-care facility, as defined by Section 42.002, Human 
Resources Code, that accepts federal Child Care Development Fund 
subsidies and that, at the time the person begins to fulfill the 
work requirement imposed by this subdivision, is located:
			(A)  within the attendance zone of a public school 
campus considered low-performing under Section 39.102 [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.              
	(20)  In SECTION 26 of the bill (page 54, between lines 67 and 
68) add the following:

	(d)  In conjunction with the transition plan prepared and 
delivered under this section, the commissioner of education shall 
provide for an equivalence of a performance rating, accreditation 
status, distinction designation, or performance indicator, as 
applicable, for each statutory performance rating or performance 
indicator that is superseded by this Act.
	(21)  Renumber SECTIONS of the bill accordingly.