Amend CSSB 3 as follows:                                                     
	(1)  In SECTION 21 of the bill, in proposed Section 
39.106(e), Education Code (page 32, line 49), strike "or".
	(2)  In SECTION 21 of the bill, in proposed Section 
39.106(e), Education Code (page 32, line 50), between "(3)" and 
"closure" insert the following:

the authority of the campus transferred to the recovery school 
district established under Section 39.1061; or
		(4)                                                                    
	(3)  In Section 21 of the bill, in proposed Subchapter E, 
Chapter 39, Education Code (page 34, between lines 53 and 54) add 
the following:
	Sec. 39.1061.  RECOVERY SCHOOL DISTRICT.  (a)  The recovery 
school district is created for the purpose of direct state 
oversight of failing campuses, excluding open-enrollment charter 
schools.  The recovery school district has the powers of school 
districts generally, except as provided by this section.
	(b)  The commissioner shall appoint a board of trustees for 
the recovery school district.  The board serves without 
compensation and at the pleasure of the commissioner.  The board is 
responsible for employing a superintendent and other central office 
staff for the recovery school district.  The commissioner may 
assign agency staff to act on behalf of the recovery school 
district.
	(c)  Immediately on the determination that a campus is 
subject to Section 39.106(e), the commissioner may transfer 
authority of the campus to the recovery school district.  On the 
transfer to the recovery school district, the superintendent shall 
determine which employees at the campus are to be retained and 
notify the school district on or before the 90th day after the date 
the determination is made.  Employees previously assigned to the 
campus remain employees of the school district subject to the terms 
of their employment contracts.
	(d)  The superintendent may employ staff to operate a campus 
transferred to the recovery school district or may contract with a 
school district, regional education service center, or other 
governmental entity or a qualified entity as determined by Section 
39.106(k) for any services necessary at the campus.
	(e)  Employees of the recovery school district who are not 
agency employees and who qualify for membership in the Teacher 
Retirement System of Texas are covered under that system to the same 
extent a qualified employee of a school district is covered.  For 
each employee of the recovery school district covered under the 
Teacher Retirement System of Texas, the recovery school district is 
responsible for making any contribution that otherwise would be the 
legal responsibility of a school district, and the state is 
responsible for making contributions to the same extent the state 
would be legally responsible if the employee were a school district 
employee.
	(f)  The recovery school district and the board of trustees 
of the recovery school district are entitled to immunity in the same 
manner as the agency and school district board members.  Employees 
and volunteers of the recovery school district are immune from 
liability to the same extent as school district board members, 
employees, and volunteers.

	(g)  The recovery school district is entitled to state 
funding for students enrolled at a campus transferred to the 
recovery school district in the same manner as the school district 
in which the campus is located.  A school district may be required 
to transfer to the recovery school district state, local, and 
federal funds that would otherwise be expended for the benefit of 
the campus or to hold such funds in a separate account for the 
benefit of the campus and make payments as directed by the 
superintendent.  The commissioner may require a school district to 
continue to provide transportation, payroll, accounting, 
recordkeeping, or any other service to the campus in the same manner 
as a service was provided before transfer to the recovery school 
district.  The commissioner shall pay a reasonable fee for the 
services.  A determination of the amount attributable to a campus, 
of services required, or of a fee for services made by the 
commissioner under this subsection is final and may not be 
appealed.  The commissioner may appoint a conservator or management 
team or take any other action necessary to ensure cooperation with 
the school district for the benefit of a campus transferred to the 
recovery school district.
	(h)  A campus transferred to the recovery school district 
shall be evaluated and assigned a rating under this chapter in the 
same manner as any other campus.  The campus shall be returned to 
the control of the school district following the second year in 
which the campus meets all academic standards generally applicable 
to school district campuses.
	(i)  Nothing in this section shall be construed to require 
the commissioner to transfer a campus to the recovery school 
district or limit the authority of the commissioner to order 
reconstitution, repurposing, alternative management, or closure of 
a campus, including a campus transferred to the recovery school 
district.
	(j)  The recovery school district may not levy a tax or 
exercise any power of eminent domain.  The transfer of a campus to 
the recovery school district does not change the boundaries of the 
school district in which the campus is located or affect the 
validity of any tax levy by the school district.