81R12580 PAM/EAH-D
 
  By: Eissler H.B. No. 3
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to public school accountability, curriculum, and
  promotion requirements.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Sections 7.056(e) and (f), Education Code, are
  amended to read as follows:
         (e)  Except as provided by Subsection (f), a school campus or
  district may not receive an exemption or waiver under this section
  from:
               (1)  a prohibition on conduct that constitutes a
  criminal offense;
               (2)  a requirement imposed by federal law or rule,
  including a requirement for special education or bilingual
  education programs; or
               (3)  a requirement, restriction, or prohibition
  relating to:
                     (A)  curriculum essential knowledge or skills
  under Section 28.002 or high school [minimum] graduation
  requirements under Section 28.025;
                     (B)  public school accountability as provided by
  Subchapters B, C, D, E, and J [G], Chapter 39;
                     (C)  extracurricular activities under Section
  33.081 or participation in a University Interscholastic League
  area, regional, or state competition under Section 33.0812;
                     (D)  health and safety under Chapter 38;
                     (E)  purchasing under Subchapter B, Chapter 44;
                     (F)  elementary school class size limits, except
  as provided by Section 25.112;
                     (G)  removal of a disruptive student from the
  classroom under Subchapter A, Chapter 37;
                     (H)  at-risk programs under Subchapter C, Chapter
  29;
                     (I)  prekindergarten programs under Subchapter E,
  Chapter 29;
                     (J)  educator rights and benefits under
  Subchapters A, C, D, E, F, G, and I, Chapter 21, or under Subchapter
  A, Chapter 22;
                     (K)  special education programs under Subchapter
  A, Chapter 29;
                     (L)  bilingual education programs under
  Subchapter B, Chapter 29; or
                     (M)  the requirements for the first day of
  instruction under Section 25.0811.
         (f)  A school district or campus that is required to develop
  and implement a student achievement improvement plan under Section
  39.101 [39.131] or 39.102 [39.132] may receive an exemption or
  waiver under this section from any law or rule other than:
               (1)  a prohibition on conduct that constitutes a
  criminal offense;
               (2)  a requirement imposed by federal law or rule;
               (3)  a requirement, restriction, or prohibition
  imposed by state law or rule relating to:
                     (A)  public school accountability as provided by
  Subchapters B, C, D, E, and J [G], Chapter 39; or
                     (B)  educator rights and benefits under
  Subchapters A, C, D, E, F, G, and I, Chapter 21, or under Subchapter
  A, Chapter 22; or
               (4)  textbook selection under Chapter 31.
         SECTION 2.  Section 7.062(e), Education Code, is amended to
  read as follows:
         (e)  The rules must:
               (1)  limit the amount of assistance provided through a
  grant to not more than:
                     (A)  for a construction project, $200 per square
  foot of the science laboratory to be constructed; or
                     (B)  for a renovation project, $100 per square
  foot of the science laboratory to be renovated;
               (2)  require a school district to demonstrate, as a
  condition of eligibility for a grant, that the existing district
  science laboratories are insufficient in number to comply with the
  curriculum requirements imposed for the Texas Diploma
  [recommended] and advanced high school programs under Section
  28.025(b-1)(1); and
               (3)  provide for ranking school districts that apply
  for grants on the basis of wealth per student and giving priority in
  the award of grants to districts with low wealth per student.
         SECTION 3.  Section 12.104(b), Education Code, is amended to
  read as follows:
         (b)  An open-enrollment charter school 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)  reading instruments and accelerated reading
  instruction programs under Section 28.006;
                     (D)  [satisfactory performance on assessment
  instruments and to] accelerated instruction under Section 28.0211;
                     (E)  high school graduation requirements under
  Section 28.025;
                     (F)  special education programs under Subchapter
  A, Chapter 29;
                     (G)  bilingual education under Subchapter B,
  Chapter 29;
                     (H)  prekindergarten programs under Subchapter E,
  Chapter 29;
                     (I)  extracurricular activities under Section
  33.081;
                     (J)  discipline management practices or behavior
  management techniques under Section 37.0021;
                     (K)  health and safety under Chapter 38;
                     (L)  public school accountability under
  Subchapters B, C, D, E, and J [G], Chapter 39;
                     (M)  the requirement under Section 21.006 to
  report an educator's misconduct; and
                     (N)  intensive programs of instruction under
  Section 28.0213.
         SECTION 4.  Section 28.002, Education Code, is amended by
  adding Subsections (c-1) and (c-2) to read as follows:
         (c-1)  The State Board of Education shall adopt rules to
  allow courses offered in the foundation curriculum or the
  enrichment curriculum to simultaneously satisfy, to the extent
  practicable, more than one required credit for the standard, Texas
  Diploma, or advanced high school program in which the student is
  participating.
         (c-2)  The State Board of Education shall adopt rules to
  authorize each school district to implement a program under which
  students in middle or junior high school may earn credits toward
  high school graduation in middle or junior high school for any
  course determined by board rule to qualify as a high school
  equivalent course.
         SECTION 5.  Section 28.014(b), Education Code, is amended to
  read as follows:
         (b)  A student who successfully completes a course developed
  under this section may use the credit earned in the course toward
  satisfying the applicable mathematics or science curriculum
  requirement for the Texas Diploma [recommended] or advanced high
  school program under Section 28.025.
         SECTION 6.  The heading to Section 28.0211, Education Code,
  is amended to read as follows:
         Sec. 28.0211.  STUDENT ADVANCEMENT DETERMINATION;
  [SATISFACTORY] PERFORMANCE ON ASSESSMENT INSTRUMENTS [REQUIRED];
  ACCELERATED INSTRUCTION.
         SECTION 7.  Section 28.0211, Education Code, is amended by
  amending Subsections (a), (b), (c), (d), (e), (f), (g), and (i) and
  adding Subsections (c-1), (d-1), (d-2), and (d-3) to read as
  follows:
         (a)  Not later than the first day of the school year, a school
  district shall determine the requirements for student advancement
  from one grade level to the next.  In determining whether a student
  may be promoted to the next grade level, the district shall
  consider:
               (1)  the student's score on an assessment instrument
  administered under Section 39.023(a), (b), or (l);
               (2)  the recommendation of the student's teacher;
               (3)  the student's grade in each subject or course; and
               (4)  any other necessary information, as determined by
  the district.  [Except as provided by Subsection (b) or (e), a
  student may not be promoted to:
               [(1)     the fourth grade program to which the student
  would otherwise be assigned if the student does not perform
  satisfactorily on the third grade reading assessment instrument
  under Section 39.023;
               [(2)     the sixth grade program to which the student
  would otherwise be assigned if the student does not perform
  satisfactorily on the fifth grade mathematics and reading
  assessment instruments under Section 39.023; or
               [(3)     the ninth grade program to which the student
  would otherwise be assigned if the student does not perform
  satisfactorily on the eighth grade mathematics and reading
  assessment instruments under Section 39.023.]
         (b)  A school district shall provide to a student who
  initially fails to perform satisfactorily on the third grade
  reading assessment instrument, the fifth grade mathematics and
  reading assessment instruments, or the eighth grade mathematics and
  reading assessment instruments under Section 39.023 an [assessment
  instrument specified under Subsection (a) at least two] additional
  opportunity [opportunities] to take the assessment instrument. [A
  school district may administer an alternate assessment instrument
  to a student who has failed an assessment instrument specified
  under Subsection (a) on the previous two opportunities.
  Notwithstanding any other provision of this section, a student may
  be promoted if the student performs at grade level on an alternate
  assessment instrument under this subsection that is appropriate for
  the student's grade level and approved by the commissioner.]
         (c)  If [Each time] a student fails to perform satisfactorily
  on a mathematics or reading [an] assessment instrument administered
  [specified] under Section 39.023(a), (b), or (l) [Subsection (a)],
  the school district [in which the student attends school] shall
  establish [provide to the student accelerated instruction in the
  applicable subject area, including reading instruction for a
  student who fails to perform satisfactorily on a reading assessment
  instrument. After a student fails to perform satisfactorily on an
  assessment instrument a second time,] a grade placement committee
  [shall be established] to prescribe the accelerated instruction the
  district shall provide to the student [before the student is
  administered the assessment instrument the third time]. The grade
  placement committee shall be composed of the principal or the
  principal's designee, the student's parent or guardian, and the
  teacher of the subject of an assessment instrument on which the
  student failed to perform satisfactorily. The district shall
  notify the parent or guardian of the time and place for convening
  the grade placement committee and the purpose of the committee.  The
  accelerated instruction program provided under this subsection
  must be systematic and may not be based solely on assessment
  instrument practice skills and:
               (1)  for a student in a third, fifth, or eighth grade
  program:
                     (A)  must provide for instruction in the
  applicable subject area;
                     (B)  must be approved by the student's parent or
  guardian and the district; and
                     (C)  [An accelerated instruction group
  administered by a school district under this section] may not have a
  ratio of more than 10 students for each teacher in an accelerated
  instruction group; or
               (2)  for a student in a program other than a third,
  fifth, or eighth grade program, be made available to the student's
  parent or guardian and the student's teacher in the next grade
  level.
         (c-1)  A school district shall implement an accelerated
  instruction program under Subsection (c) not later than the 30th
  day after the first day of school of the next school year.  
  Accelerated instruction may occur outside of regular school hours,
  including during summer school.
         (d)  In addition to providing accelerated instruction to a
  student under Subsection (c), the district shall notify the
  student's parent or guardian of:
               (1)  the student's failure to perform satisfactorily on
  the assessment instrument;
               (2)  the accelerated instruction program to which the
  student is assigned; [and]
               (3)  the possibility that the student might be retained
  at the same grade level for the next school year;
               (4)  the information collected under Subsection (a);
               (5)  the areas requiring improvement to perform
  satisfactorily on a mathematics or reading assessment instrument
  specified under Section 39.023(a), (b), or (l); and
               (6)  any other applicable information as determined by
  the district.
         (d-1)  A school district shall make information provided to a
  parent or guardian under Subsections (d)(4), (5), and (6) available
  to the student's current teacher and the student's teacher in the
  next grade level.
         (d-2)  After considering the information specified under
  Subsection (a), the grade placement committee shall make a
  determination that the student who failed a mathematics or reading
  assessment instrument administered under Section 39.023(a), (b),
  or (l) be:
               (1)  retained at the same grade level for the next
  school year; or
               (2)  placed in the next grade level with accelerated
  instruction as provided under Subsection (c).
         (d-3)  A student who fails to participate in an accelerated
  instruction program developed under Subsection (c)(1) may not be
  promoted to the next grade level program to which the student would
  otherwise be assigned if the student does not perform
  satisfactorily on the applicable assessment instrument specified
  under Subsection (b).
         (e)  A [student who, after at least three attempts, fails to
  perform satisfactorily on an assessment instrument specified under
  Subsection (a) shall be retained at the same grade level for the
  next school year in accordance with Subsection (a). The] student's
  parent or guardian may [appeal the student's retention by
  submitting a] request that [to] the grade placement committee
  reconsider the committee's decision under Subsection (d-2) to
  retain the student [established under Subsection (c)]. The school
  district shall give the parent or guardian written notice of the
  opportunity to request reconsideration [appeal. The grade
  placement committee may decide in favor of a student's promotion
  only if the committee concludes, using standards adopted by the
  board of trustees, that if promoted and given accelerated
  instruction, the student is likely to perform at grade level]. A
  student may not be promoted on the basis of the grade placement
  committee's decision under this subsection unless that decision is
  unanimous. The commissioner by rule shall establish a time line for
  making the placement determination. This subsection does not
  create a property interest in promotion. The decision of the grade
  placement committee under this subsection is final and may not be
  appealed.
         (f)  An accelerated instruction program under Subsection (c) 
  [A school district shall provide to a student who, after three
  attempts, has failed to perform satisfactorily on an assessment
  instrument specified under Subsection (a) accelerated instruction
  during the next school year as prescribed by an educational plan
  developed for the student by the student's grade placement
  committee established under Subsection (c). The district shall
  provide that accelerated instruction regardless of whether the
  student has been promoted or retained. The educational plan] must
  be designed to enable the student to perform at the appropriate
  grade level by the conclusion of the school year. During the school
  year, the student shall be monitored to ensure that the student is
  progressing in accordance with the program [plan]. The district
  shall administer to the student the assessment instrument for the
  grade level in which the student is placed at the time the district
  regularly administers the assessment instruments for that school
  year.
         (g)  This section does not preclude the retention at a grade
  level, in accordance with state law or school district policy, of a
  student who performs satisfactorily on an assessment instrument
  administered [specified] under Section 39.023 [Subsection (a)].
         (i)  The admission, review, and dismissal committee of a
  student who participates in a district's special education program
  under Subchapter B, Chapter 29, and who does not perform
  satisfactorily on a mathematics or reading [an] assessment
  instrument [specified under Subsection (a) and] administered under
  Section 39.023(a) or (b) shall determine:
               (1)  the manner in which the student will participate
  in an accelerated instruction program under this section; and
               (2)  whether the student will be promoted or retained
  under this section.
         SECTION 8.  Section 28.025, Education Code, is amended by
  amending Subsections (a), (b), (b-1), (e), and (g) and adding
  Subsections (b-3) and (e-1) to read as follows:
         (a)  The State Board of Education by rule shall determine
  curriculum requirements for the standard, Texas Diploma [minimum,
  recommended], and advanced high school programs that are consistent
  with the required curriculum under Section 28.002. Subject to
  Subsection (b-1), the State Board of Education shall designate the
  specific courses in the foundation curriculum required for a
  student participating in the standard, Texas Diploma, or advanced
  high school program. Except as provided by Subsection (b-1)(1)(B),
  the State Board of Education may not designate a specific course or
  a specific number of credits required for a subject in the
  enrichment curriculum. This subsection does not prohibit the State
  Board of Education from designating the total number of credits
  required under the enrichment curriculum for a student
  participating in the standard, Texas Diploma, or advanced high
  school program.
         (b)  A school district shall ensure that each student enrolls
  in the courses necessary to complete the curriculum requirements
  identified by the State Board of Education under Subsection (a) for
  the Texas Diploma [recommended] or advanced high school program
  unless the student, the student's parent or other person standing
  in parental relation to the student, and a school counselor or
  school administrator agree that the student should be permitted to
  take courses under the standard [minimum] high school program.
         (b-1)  The State Board of Education by rule shall require
  that:
               (1)  except as provided by Subsection (b-2), the
  curriculum requirements for the Texas Diploma [recommended] and
  advanced high school programs under Subsection (a) include a
  requirement that students successfully complete:
                     (A)  four courses in each subject of the
  foundation curriculum under Section 28.002(a)(1);
                     (B)  two courses in a language other than English
  under Section 28.002(a)(2)(A); and
                     (C)  eight elective courses; [and]
               (2)  one or more courses offered in the required
  curriculum for the Texas Diploma [recommended] and advanced high
  school programs include a research writing component; and
               (3)  the curriculum requirements for the standard high
  school program under Subsection (a) include a requirement that
  students successfully complete:
                     (A)  four courses in English language arts;
                     (B)  three courses in mathematics;
                     (C)  two courses in science;
                     (D)  three courses in social studies;
                     (E)  one additional course in either science or
  social studies; and
                     (F)  nine elective courses.
         (b-3)  Notwithstanding Section 5.09, Chapter 5 (H.B. 1),
  79th Legislature, 3rd Called Session, 2006, the curriculum
  requirements for the Texas Diploma and advanced high school
  programs under Section 28.025(b-1) apply to students entering the
  ninth grade beginning with the 2011-2012 school year. This
  subsection expires September 1, 2015.
         (e)  Each school district shall report the academic
  achievement record of students who have completed a standard, Texas
  Diploma [minimum, recommended], or advanced high school program on
  transcript forms adopted by the State Board of Education. The
  transcript forms adopted by the board must be designed to clearly
  differentiate between each of the high school programs and identify
  whether a student received a diploma or a certificate of coursework
  completion.
         (e-1)  A school district shall provide an endorsement of
  college readiness on the transcript of a student who has completed a
  Texas Diploma or advanced high school program and has demonstrated
  the performance standard for college readiness as provided by
  Section 39.024 on the Algebra II and English III end-of-course
  assessment instruments.  A district shall provide an endorsement of
  postsecondary readiness on the transcript of a student who has
  completed a Texas Diploma or advanced high school program and has
  demonstrated the alternate performance standard as provided under
  Section 39.0243.  The State Board of Education shall adopt rules as
  necessary to administer this subsection.
         (g)  If a student, other than a student permitted to take
  courses under the standard [minimum] high school program as
  provided by Subsection (b), is unable to complete the Texas Diploma 
  [recommended] or advanced high school program solely because
  necessary courses were unavailable to the student at the
  appropriate times in the student's high school career as a result of
  course scheduling, lack of enrollment capacity, or another cause
  not within the student's control, the school district shall
  indicate that fact on the student's transcript form described by
  Subsection (e).
         SECTION 9.  Section 29.094(c), Education Code, is amended to
  read as follows:
         (c)  A campus may apply to the commissioner to participate in
  the pilot program.  The commissioner may select for participation
  in the pilot program only campuses that have failed to improve
  student performance in reading according to standards established
  by the commissioner.  The standards established by the commissioner
  for purposes of this subsection must be based on reading
  performance standards considered [required] for student promotion
  under Section 28.0211.
         SECTION 10.  Section 29.096(e), Education Code, is amended
  to read as follows:
         (e)  The commissioner shall establish minimum standards for
  a local collaborative agreement, including a requirement that the
  agreement must be signed by an authorized school district or
  open-enrollment charter school officer and an authorized
  representative of each of the other participating entities that is
  a partner in the collaboration. The program must:
               (1)  limit participation in the program to students
  authorized to participate by a parent or other person standing in
  parental relationship;
               (2)  have as a primary goal graduation from high school
  under at least the Texas Diploma [recommended] high school program;
               (3)  provide for local businesses or other employers to
  offer paid employment or internship opportunities and advanced
  career and vocational training;
               (4)  include an outreach component and a lead
  educational staff member to identify and involve eligible students
  and public and private entities in participating in the program;
               (5)  serve a population of students of which at least 50
  percent are identified as students at risk of dropping out of
  school, as described by Section 29.081(d);
               (6)  allocate not more than 15 percent of grant funds
  and matching funds, as determined by the commissioner, to
  administrative expenses;
               (7)  include matching funds from any of the
  participating entities; and
               (8)  include any other requirements as determined by
  the council.
         SECTION 11.  Section 29.904(d), Education Code, is amended
  to read as follows:
         (d)  A plan developed under this section:
               (1)  must establish clear, achievable goals for
  increasing the percentage of the school district's graduating
  seniors, particularly the graduating seniors attending a high
  school described by Subsection (a), who enroll in an institution of
  higher education for the academic year following graduation;
               (2)  must establish an accurate method of measuring
  progress toward the goals established under Subdivision (1) that
  may include the percentage of district high school students and the
  percentage of students attending a district high school described
  by Subsection (a) who:
                     (A)  are enrolled in a course for which a student
  may earn college credit, such as an advanced placement or
  international baccalaureate course or a course offered through
  concurrent enrollment in high school and at an institution of
  higher education;
                     (B)  are enrolled in courses that meet the
  curriculum requirements for the Texas Diploma [recommended] or
  advanced high school program as determined under Section 28.025;
                     (C)  have submitted a free application for federal
  student aid (FAFSA);
                     (D)  are exempt under Section 51.3062(p) or (q) 
  [51.306(l) or (m)] from administration of an assessment [a test]
  instrument under Section 51.3062 [51.306] or have performed
  successfully on an assessment [a test] instrument under Section
  51.3062 [51.306];
                     (E)  graduate from high school;
                     (F)  graduate from an institution of higher
  education; and
                     (G)  have taken college entrance examinations and
  the average score of those students on the examinations;
               (3)  must cover a period of at least five years; and
               (4)  may be directed at district students at any level
  of primary or secondary education.
         SECTION 12.  Section 32.252(b), Education Code, is amended
  to read as follows:
         (b)  The portal must serve as a single point of access to
  educational resources, access to general student assessment data,
  and secure access to individual student assessment data. In
  addition to any other purpose specified by this subchapter or any
  other educational purpose, the portal may be used to:
               (1)  alleviate inequities in access to educational
  resources by providing access to on-line courses;
               (2)  improve student academic performance by providing
  access to tutorial materials, instructional materials that have
  been shown to improve academic performance, and other interactive
  materials, including materials that assess an individual student's
  knowledge and prepare the student for the administration of a
  standardized assessment instrument, including an assessment
  instrument administered under Section 39.023;
               (3)  provide school districts with access to
  administrative software and other electronic tools designed to
  promote administrative efficiency and intra-district
  communication; or
               (4)  [provide secure access to student assessment data;
  or
               [(5)]  provide links to appropriate educational
  resources and experts available through the Internet.
         SECTION 13.  Section 32.258, Education Code, is amended to
  read as follows:
         Sec. 32.258.  STUDENT ASSESSMENT DATA. (a)  The agency shall
  [may] establish a secure, interoperable system to be implemented
  through the portal under which:
               (1)  a student or the student's parent or other person
  standing in parental relationship can easily access the student's
  individual assessment data; and
               (2)  an authorized employee of a school district,
  including a district teacher, [districts] can readily access
  individual [student] assessment data of district students for use
  in developing strategies for improving student performance.
         (b)  The system established under Subsection (a) shall
  provide a means for a student or the student's parent or other
  person standing in parental relationship to track the student's
  progress on assessment instrument requirements for graduation.
         (c)  The agency shall establish an interoperable system to be
  implemented through the portal under which general student
  assessment data is easily accessible to the public.
         (d)  Student assessment data provided under this section
  must include student performance data on assessment instruments
  over multiple years, beginning with the 2007-2008 school year,
  including any data indicating progress in student achievement.
         (e)  Each [(b)  In establishing the] system established
  under [required by] this section must permit comparisons of [, the
  agency shall seek to further the goal of providing school districts
  with access to] student performance information at the classroom,
  campus, district, and state levels [level].
         SECTION 14.  Section 33.007(b), Education Code, is amended
  to read as follows:
         (b)  During the first school year a student is enrolled in a
  high school or at the high school level in an open-enrollment
  charter school, and again during a student's senior year, a
  counselor shall provide information about higher education to the
  student and the student's parent or guardian.  The information must
  include information regarding:
               (1)  the importance of higher education;
               (2)  the advantages of completing the Texas Diploma
  [recommended] or advanced high school program adopted under Section
  28.025(a);
               (3)  the disadvantages of taking courses to prepare for
  a high school equivalency examination relative to the benefits of
  taking courses leading to a high school diploma;
               (4)  financial aid eligibility;
               (5)  instruction on how to apply for federal financial
  aid;
               (6)  the center for financial aid information
  established under Section 61.0776;
               (7)  the automatic admission of certain students to
  general academic teaching institutions as provided by Section
  51.803;
               (8)  the eligibility and academic performance
  requirements for the TEXAS Grant as provided by Subchapter M,
  Chapter 56; and
               (9)  the availability of programs in the district under
  which a student may earn college credit, including advanced
  placement programs, dual credit programs, joint high school and
  college credit programs, and international baccalaureate programs.
         SECTION 15.  Section 39.023, Education Code, is amended by
  adding Subsection (a-1) and amending Subsections (c-4), (e), and
  (l) to read as follows:
         (a-1)  The agency shall develop assessment instruments
  required under Subsection (a) in a manner that allows, to the extent
  practicable:
               (1)  the score a student receives to provide reliable
  information relating to a student's college readiness performance,
  as defined by Section 39.024(a); and
               (2)  an appropriate range of performances to serve as a
  valid indication of growth in student achievement.
         (c-4)  To the extent practicable and subject to Section
  39.024, the agency shall ensure that each end-of-course assessment
  instrument adopted under Subsection (c) is:
               (1)  developed in a manner that measures a student's
  performance under the college readiness standards established
  under Section 28.008; and
               (2)  validated by national postsecondary education
  experts for college readiness content and performance standards.
         (e)  Under rules adopted by the State Board of Education,
  every third year, the agency shall release the questions and answer
  keys to each assessment instrument administered under Subsection
  (a), (b), (c), (d), or (l), excluding any assessment instrument
  administered to a student for the purpose of retaking the
  assessment instrument, after the last time the instrument is
  administered for that school year.  To ensure a valid bank of
  questions for use each year, the agency is not required to release a
  question that is being field-tested and was not used to compute the
  student's score on the instrument.  The agency shall also release,
  under board rule, each question that is no longer being
  field-tested and that was not used to compute a student's score.
         (l)  The State Board of Education shall adopt rules for the
  administration of the assessment instruments adopted under
  Subsection (a) in Spanish to students in grades three through five
  [six] who are of limited English proficiency, as defined by Section
  29.052, whose primary language is Spanish, and who are not
  otherwise exempt from the administration of an assessment
  instrument under Section 39.027(a)(3) or (4). Each student of
  limited English proficiency whose primary language is Spanish,
  other than a student to whom Subsection (b) applies, may be assessed
  using assessment instruments in Spanish under this subsection for
  up to three years or assessment instruments in English under
  Subsection (a). The language proficiency assessment committee
  established under Section 29.063 shall determine which students are
  administered assessment instruments in Spanish under this
  subsection.
         SECTION 16.  Section 39.0233(d), Education Code, is amended
  to read as follows:
         (d)  The questions adopted under this section may not [must]
  be administered in a separate section of the end-of-course
  assessment instrument [in which the questions are included].
         SECTION 17.  Subchapter B, Chapter 39, Education Code, is
  amended by amending Section 39.024 and adding Sections 39.0241,
  39.0242, and 39.0243 to read as follows:
         Sec. 39.024.  MEASURES OF READINESS.  (a) In this section:
               (1)  "College readiness" means the level of preparation
  a student must attain in English language arts and mathematics
  courses to enroll and succeed, without remediation, in an
  entry-level general education course for credit in that same
  content area at:
                     (A)  a postsecondary educational institution that
  primarily offers baccalaureate degrees and primarily serves a
  limited geographic region; or
                     (B)  a postsecondary educational institution that
  primarily offers associate's degrees or certificates or
  credentials other than baccalaureate or advanced degrees.
               (2)  "Skilled workforce and technical readiness" means
  the level of preparation a student must attain in Algebra I and
  English III courses to enroll and succeed in a workforce training,
  certification, or other credential program at a postsecondary
  educational institution that primarily offers associate's degrees
  or certificates or credentials other than baccalaureate or advanced
  degrees.
         (b)  The agency shall ensure that the end-of-course
  assessment instruments required under Section 39.023(c) are
  developed to be capable of, beginning with the 2011-2012 school
  year, measuring:
               (1)  skilled workforce and technical readiness for
  Algebra I and English III end-of-course assessment instruments; and
               (2)  college readiness for Algebra II and English III
  end-of-course assessment instruments.
         (c)  Before the beginning of the 2011-2012 school year, the
  agency shall gather data and conduct research studies to
  substantiate:
               (1)  the correlation between a certain level of
  performance by students on the Algebra I and English III
  end-of-course assessment instruments and skilled workforce and
  technical readiness; and
               (2)  the correlation between a certain level of
  performance by students on the Algebra II and English III
  end-of-course assessment instruments and college readiness.
         (d)  Studies under Subsection (c) must include an evaluation
  of any need for remediation courses to facilitate skilled workforce
  and technical readiness or college readiness.
         (e)  Based on the results of the studies conducted under
  Subsection (c), the commissioner of education, in conjunction with
  the commissioner of higher education, shall establish student
  performance standards for:
               (1)  the Algebra I and English III end-of-course
  assessment instruments indicating that students have attained
  skilled workforce and technical readiness; and
               (2)  the Algebra II and English III end-of-course
  assessment instruments indicating that students have attained
  college readiness.
         (f)  To the extent practicable, the agency shall conduct
  research studies similar to the studies conducted under Subsection
  (c)(2) for the appropriate science and social studies end-of-course
  assessment instruments.
         (f-1)  Not later than December 1, 2010, the agency shall
  deliver to the lieutenant governor, the speaker of the house of
  representatives, and the clerks of the standing committees of the
  senate and the house of representatives with primary jurisdiction
  over public education a report that includes:
               (1)  an analysis of the feasibility of establishing
  college readiness performance standards for science and social
  studies end-of-course assessment instruments; and
               (2)  if feasible, recommendations for implementing
  each standard.
         (f-2)  Subsection (f-1) and this subsection expire January
  1, 2011.
         (g)  The agency shall continue to gather data to perform
  studies as provided under Subsections (c) and (f) at least once
  every two years.
         (h)  The agency shall periodically review the college
  readiness performance standards established under this section and
  compare the performance standards to performance standards
  established nationally and internationally for comparable
  assessment instruments. Following each review, the agency shall
  deliver to the lieutenant governor, the speaker of the house of
  representatives, and the clerks of the standing committees of the
  senate and the house of representatives with primary jurisdiction
  over public education a report on the results of the review
  indicating whether the college readiness performance standards
  established under this section are sufficiently rigorous to prepare
  students in this state to compete academically with students
  nationally and internationally. If the agency determines that the
  college readiness performance standards established under this
  section are not sufficiently rigorous, the agency shall recommend
  changes to the college readiness performance standards.
         Sec. 39.0241.  SATISFACTORY PERFORMANCE. (a)  Except as
  otherwise provided by Subsection (b) [this subsection], the State
  Board of Education shall determine the level of performance
  considered to be satisfactory on the assessment instruments.
         (a-1)  Beginning with the 2011-2012 school year,
  satisfactory performance on English language arts and mathematics
  assessment instruments for purposes of this chapter means the
  performance across grade levels necessary to indicate college
  readiness, as defined by Section 39.024(a), except as:
               (1)  modified by Section 39.0242(d); or
               (2)  provided by Subsection (a-2)(2) or Section
  39.0243.
         (a-2)  The State Board of Education shall establish:
               (1)  for the Texas Diploma and advanced high school
  programs, the performance standard for the Algebra II and English
  III end-of-course assessment instruments, as provided under
  Section 39.024(b)(2);
               (2)  for the standard high school program, the
  performance standard for the Algebra I and English III
  end-of-course assessment instruments, as provided under Section
  39.024(b)(1);
               (3)  except as provided by Subdivision (2), the
  performance standard for the Algebra I and English II end-of-course
  assessment instruments, as determined based on studies under
  Section 39.0242 that correlate student performance on the Algebra I
  and English II end-of-course assessment instruments with student
  performance on the Algebra II and English III assessment
  instruments;
               (4)  the performance standard for the English I
  end-of-course assessment instrument, as determined based on
  studies under Section 39.0242 that correlate student performance on
  the English I end-of-course assessment instrument with student
  performance on the English II assessment instrument;
               (5)  the performance standard for the grade eight
  assessment instruments, as determined based on studies under
  Section 39.0242 that correlate student performance on the grade
  eight assessment instruments with student performance on the
  Algebra I and English I end-of-course assessment instruments in the
  same content area;
               (6)  the performance standard for the grade seven
  assessment instruments, as determined based on studies under
  Section 39.0242 that correlate student performance on the grade
  seven assessment instruments with student performance on the grade
  eight assessment instruments in the same content area;
               (7)  the performance standard for the grade six
  assessment instruments, as determined based on studies under
  Section 39.0242 that correlate student performance on the grade six
  assessment instruments with student performance on the grade seven
  assessment instruments in the same content area;
               (8)  the performance standard for the grade five
  assessment instruments, as determined based on studies under
  Section 39.0242 that correlate student performance on the grade
  five assessment instruments with student performance on the grade
  six assessment instruments in the same content area;
               (9)  the performance standard for the grade four
  assessment instruments, as determined based on studies under
  Section 39.0242 that correlate student performance on the grade
  four assessment instruments with student performance on the grade
  five assessment instruments in the same content area; and
               (10)  the performance standard for the grade three
  assessment instruments, as determined based on studies under
  Section 39.0242 that correlate student performance on the grade
  three assessment instruments with student performance on the grade
  four assessment instruments in the same content area.
         (b)  The admission, review, and dismissal committee of a
  student being assessed under Section 39.023(b) shall determine the
  level of performance considered to be satisfactory on the
  assessment instruments administered to that student in accordance
  with criteria established by agency rule.
         (c)  The agency shall develop study guides for the assessment
  instruments administered under Sections 39.023(a) and (c). To
  assist parents in providing assistance during the period that
  school is recessed for summer, each school district shall
  distribute the study guides to parents of students who do not
  perform satisfactorily on one or more parts of an assessment
  instrument administered under this subchapter.
         (d)  The agency shall develop and make available teacher
  training materials and other teacher training resources to assist
  teachers in enabling students of limited English proficiency to
  meet state performance expectations. The teacher training
  resources shall be designed to support intensive, individualized,
  and accelerated instructional programs developed by school
  districts for students of limited English proficiency.
         (e)  The commissioner shall retain a portion of the total
  amount of funds allotted under Section 42.152(a) that the
  commissioner considers appropriate to finance activities under
  Subsection [Subsections] (c) and may retain a portion for
  activities under Subsection (d) and for intensive programs of
  instruction for students of limited English proficiency offered by
  school districts and shall reduce each district's allotment
  proportionately.
         Sec. 39.0242.  SATISFACTORY PERFORMANCE: RESEARCH STUDIES
  AND IMPLEMENTATION OF STANDARD. (a) During the 2010-2011 school
  year, the agency shall collect data through:
               (1)  the annual administration of assessment
  instruments required under Section 39.023(a) in grades three
  through eight; and
               (2)  the administration to appropriate students
  throughout the state of an end-of-course assessment instrument
  field test.
         (b)  Before the beginning of the 2011-2012 school year, the
  agency shall analyze the data collected under Subsection (a) to
  substantiate:
               (1)  the correlation between satisfactory student
  performance on the grade three, four, five, six, or seven
  assessment instruments with satisfactory performance on the
  assessment instruments in the same content area for the next grade
  level;
               (2)  the correlation between satisfactory student
  performance on the grade eight assessment instruments with
  satisfactory performance on the Algebra I and English I
  end-of-course assessment instruments in the same content area;
               (3)  the correlation between satisfactory student
  performance on the English I end-of-course assessment instrument
  with satisfactory performance on the English II end-of-course
  assessment instrument;
               (4)  for the standard high school program, the
  correlation between satisfactory student performance on the
  English II end-of-course assessment instrument with satisfactory
  performance as determined under Section 39.024 on the English III
  end-of-course assessment instrument; and
               (5)  for the Texas Diploma and advanced high school
  programs, the correlation between satisfactory student performance
  on the Algebra I and English II end-of-course assessment
  instruments with satisfactory performance as determined under
  Section 39.024 on the Algebra II and English III end-of-course
  assessment instruments.
         (c)  Studies under this section must include an evaluation of
  any need for remediation courses to facilitate skilled workforce
  and technical readiness or college readiness.
         (d)  Based on the results of the studies conducted under this
  section, the State Board of Education shall establish a level of
  satisfactory performance that is more rigorous than the standard of
  satisfactory performance established before the 2011-2012 school
  year, but less rigorous than the level of satisfactory performance
  identified under the studies conducted under this section as
  indicating that students have attained college readiness. The
  State Board of Education shall incrementally increase the level of
  satisfactory performance during the 2012-2013 through 2016-2017
  school years to the level identified under the studies conducted
  under this section as indicating that students have attained
  college readiness.
         (e)  Once the level of satisfactory performance has been
  established at the level indicating college readiness, the agency
  shall continue to gather data and perform studies as provided under
  this section at least once every two years. If the data does not
  support the correlation between student performance standards and
  college readiness, the State Board of Education shall revise the
  standard of performance considered to be satisfactory.
         Sec. 39.0243.  ALTERNATE PERFORMANCE STANDARD:
  POSTSECONDARY READINESS. (a) This section applies only to a
  student participating in a Texas Diploma or advanced high school
  program who is administered the Algebra II and English III
  end-of-course assessment instruments.
         (b)  Regardless of whether the student demonstrates the
  performance standard for college readiness as provided by Section
  39.024, the student demonstrates postsecondary readiness under
  this section if the student earns in a curriculum course in which
  the student is enrolled a certificate required for employment in a
  high-demand, high-wage, high-skill occupation, as determined under
  this section.
         (c)  The Texas Workforce Commission shall develop, in
  consultation with the Texas Workforce Investment Council, a list of
  high-demand, high-wage, high-skill occupations in this state that
  have industry certifications. The Texas Workforce Commission shall
  provide the research and technical support for developing the list
  under this subsection.
         (d)  The Texas Workforce Investment Council shall consider
  the list developed under Subsection (c) and approve a list for
  submission to the commissioner. On approval of the list, the Texas
  Workforce Investment Council shall deliver the list to the
  commissioner.
         (e)  The commissioner of education, after consultation with
  the commissioner of higher education, shall consider the list
  delivered under Subsection (d) and approve a final list of
  high-demand, high-wage, high-skill occupations in this state that
  have industry certifications.
         (f)  The list of high-demand, high-wage, high-skill
  occupations in this state that have industry certifications shall
  be reviewed and approved under the process provided by Subsections
  (c) through (e) every four years.
         (g)  Notwithstanding any other provision of this section, a
  student's score on the Algebra II or English III end-of-course
  assessment instrument constitutes 15 percent of the student's grade
  in the applicable course.
         SECTION 18.  Section 39.025, Education Code, is amended by
  amending Subsections (a), (a-1), (b), (b-1), (b-2), and (f) and
  adding Subsections (a-2) and (c-1) to read as follows:
         (a)  The commissioner shall adopt rules requiring a student
  participating in the Texas Diploma [recommended] or advanced high
  school program to be administered each end-of-course assessment
  instrument listed in Section 39.023(c) and requiring a student
  participating in the standard [minimum] high school program to be
  administered an end-of-course assessment instrument listed in
  Section 39.023(c) only for Algebra I and English III and any other 
  [a] course in which the student is enrolled and for which an
  end-of-course assessment instrument is administered.  Except as
  otherwise provided by this section, a [A] student is required to
  perform satisfactorily on two of the three end-of-course assessment
  instruments [achieve,] in each subject in which the student is
  required to take end-of-course assessment instruments [in the
  foundation curriculum under Section 28.002(a)(1), a cumulative
  score that is at least equal to the product of the number of
  end-of-course assessment instruments administered to the student
  in that subject and 70, with each end-of-course assessment
  instrument scored on a scale of 100.     A student must achieve a score
  of at least 60 on an end-of-course assessment instrument for the
  score to count towards the student's cumulative score].  Except as
  provided under Subsection (a-2), a student participating in the
  standard high school program must perform satisfactorily on the
  Algebra I and English III end-of-course assessment instruments and
  a student participating in the Texas Diploma or advanced high
  school program must perform satisfactorily on the Algebra II and
  English III end-of-course assessment instruments [For purposes of
  this subsection, a student's cumulative score is determined using
  the student's highest score on each end-of-course assessment
  instrument administered to the student].  A student may not receive
  a high school diploma until the student has performed
  satisfactorily on the end-of-course assessment instruments in the
  manner provided under this subsection.  [This subsection does not
  require a student to demonstrate readiness to enroll in an
  institution of higher education.]
         (a-1)  The student's score on an end-of-course assessment
  instrument constitutes 15 percent of the student's grade in the
  course for which the assessment instrument is administered.
         (a-2)  The commissioner by rule shall determine a method by
  which a student's satisfactory performance on an advanced placement
  test, international baccalaureate examination, a Scholastic
  Assessment Test (SAT) Subject Test, or another assessment
  instrument determined by the commissioner to be at least as
  rigorous as an end-of-course assessment instrument adopted under
  Section 39.023(c) may be used as a factor in determining whether the
  student satisfies the requirements of Subsection (a)[, including
  the cumulative score requirement of that subsection].
         (b)  Each time an end-of-course assessment instrument is
  administered, a student who failed to perform satisfactorily
  [achieve a score of at least 60] on the assessment instrument shall
  retake the assessment instrument.  Any other student may retake an
  end-of-course assessment instrument for any reason.  A student is
  not required to retake a course as a condition of retaking an
  end-of-course assessment instrument.
         (b-1)  A school district shall provide each student who fails
  to perform satisfactorily [achieve a score of at least 70] on an
  end-of-course assessment instrument with accelerated instruction
  in the subject assessed by the assessment instrument.
         (b-2)  The agency, in consultation with the Texas Higher
  Education Coordinating Board, shall develop senior-level English
  language arts and mathematics accelerated instruction courses for
  purposes of this section. If [a school district determines that] a
  student does not demonstrate the performance standard for college
  readiness as provided by Section 39.024 on the Algebra II or English
  III end-of-course assessment instrument [, on completion of grade
  11, is unlikely to achieve the cumulative score requirements for
  one or more subjects prescribed by Subsection (a) for receiving a
  high school diploma], the district shall offer [require] the
  student the opportunity to enroll in a [corresponding content-area
  college preparatory] course described by this subsection [for which
  an end-of-course assessment instrument has been adopted, if
  available]. A student who enrolls in a [college preparatory] course
  described by this subsection shall be administered an appropriate 
  end-of-course assessment instrument [for the course, with the
  end-of-course assessment instrument scored on a scale of 40. A
  student may use the student's score on the end-of-course assessment
  instrument for the college preparatory course towards satisfying
  the cumulative score requirements] prescribed by Subsection (a).
         (c-1)  A school district may not administer an assessment
  instrument required for graduation administered under this section
  as this section existed before September 1, 1999. A school district
  may administer to a student who failed to perform satisfactorily on
  an assessment instrument described by this subsection an alternate
  assessment instrument designated by the commissioner. The
  commissioner shall determine the level of performance considered to
  be satisfactory on an alternate assessment instrument. The
  district may not administer to the student an assessment instrument
  or a part of an assessment instrument that assesses a subject that
  was not assessed in an assessment instrument required for
  graduation administered under this section as this section existed
  before September 1, 1999. The commissioner shall make available to
  districts information necessary to administer the alternate
  assessment instrument authorized by this subsection. The
  commissioner's determination regarding designation of an
  appropriate alternate assessment instrument under this subsection
  and the performance required on the assessment instrument is final
  and may not be appealed.
         (f)  The commissioner shall by rule adopt a transition plan
  to implement the amendments made by Chapter 1312 (S.B. No. 1031),
  Acts of the 80th Legislature, Regular Session, 2007, replacing
  general subject assessment instruments administered at the high
  school level with end-of-course assessment instruments [to this
  section and Sections 39.023(a) and (c) and 39.051(b)(5)].  The
  rules must provide for the end-of-course assessment instruments
  adopted under Section 39.023(c) to be administered beginning with
  students entering the ninth grade during the 2011-2012 school
  year.  During the period under which the transition to
  end-of-course assessment instruments is made:
               (1)  for students entering a grade above the ninth
  grade during the 2011-2012 school year, the commissioner shall
  retain, administer, and use for purposes of accreditation and other
  campus and district accountability measures [ratings] under this
  chapter [Subchapter D] the assessment instruments required by
  Section 39.023(a) or (c), as that section existed before amendment
  by Chapter 1312 (S.B. No. 1031), Acts of the 80th Legislature,
  Regular Session, 2007; and
               (2)  the agency may defer releasing assessment
  instrument questions and answer keys as required by Section
  39.023(e) to the extent necessary to develop additional assessment
  instruments.
         SECTION 19.  Section 39.027(e), Education Code, is amended
  to read as follows:
         (e)  The commissioner shall develop an assessment system
  that shall be used for evaluating the academic progress, including
  reading proficiency in English, of all students of limited English
  proficiency, as defined by Section 29.052.  A student who is exempt
  from the administration of an assessment instrument under
  Subsection (a)(3) or (4) who achieves reading proficiency in
  English as determined by the assessment system developed under this
  subsection shall be administered the assessment instruments
  described by Sections 39.023(a) and (c).  The performance under the
  assessment system developed under this subsection of students to
  whom Subsection (a)(3) or (4) applies shall be included in the
  [academic excellence] indicator systems [system] under Sections
  39.053 and 39.301, as applicable [Section 39.051], the performance
  report under Section 39.306 [39.053], and the comprehensive annual
  report under Section 39.332 [39.182].  This information shall be
  provided in a manner that is disaggregated by the bilingual
  education or special language program, if any, in which the student
  is enrolled.
         SECTION 20.  Section 39.033(b), Education Code, is amended
  to read as follows:
         (b)  An agreement under this section must require the private
  school to:
               (1)  as determined appropriate by the commissioner,
  provide to the commissioner the information described by Sections
  39.053(c) and 39.301(c); [Section 39.051(b)] and
               (2)  [to] maintain confidentiality in compliance with
  Section 39.030.
         SECTION 21.  Section 39.034, Education Code, is amended by
  amending Subsection (d) and adding Subsection (d-1) to read as
  follows:
         (d)  The agency shall determine the necessary annual
  improvement required each year for a student to be prepared to
  perform satisfactorily on, as applicable:
               (1)  the grade five assessment instruments;
               (2)  the grade eight assessment instruments; and
               (3)  the end-of-course assessment instruments required
  under this subchapter for graduation.
         (d-1)  The agency shall report the necessary annual
  improvement required under Subsection (d) to the district.  Each
  year, the report must state whether the student fell below, met, or
  exceeded the necessary target for improvement.
         SECTION 22.  Subchapters C and D, Chapter 39, Education
  Code, as they existed on January 1, 2009, are repealed.
         SECTION 23.  Chapter 39, Education Code, is amended by
  adding Subchapter C to read as follows:
  SUBCHAPTER C.  ACCREDITATION
         Sec. 39.051.  ACCREDITATION STATUS.  Accreditation of a
  school district or campus is determined in accordance with this
  subchapter.  The commissioner by rule shall determine in accordance
  with this subchapter the criteria for the following accreditation
  statuses:
               (1)  accredited;
               (2)  accredited-warned; and
               (3)  accredited-probation.
         Sec. 39.052.  DETERMINATION OF ACCREDITATION STATUS. (a)  
  Following the end of each school year, the commissioner shall
  determine the accreditation status of each school district and
  campus.
         (b)  In determining the accreditation status of a district,
  the commissioner:
               (1)  shall evaluate and consider:
                     (A)  performance on student achievement
  indicators described by Section 39.053(c);
                     (B)  performance under the financial
  accountability rating system developed under Subchapter D; and
                     (C)  the district's current special education
  compliance status with the agency; and
               (2)  may evaluate and 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)  In determining the accreditation status of a campus, the
  commissioner:
               (1)  shall evaluate and consider performance on student
  achievement indicators described by Section 39.053(c); and
               (2)  may evaluate and consider other factors the
  commissioner considers appropriate.
         (d)  Based on a school district's performance under
  Subsection (b) or a campus's performance under Subsection (c), the
  commissioner shall:
               (1)  assign each district and campus an accreditation
  status; or
               (2)  revoke the accreditation of the district or campus
  and order closure of the district or campus under this subchapter.
         (e)  A school district's accreditation status may be raised
  or lowered based on the district's performance or may be lowered
  based on the performance of one or more campuses in the district
  that is below a standard required under this subchapter.
         (f)  The commissioner shall notify a school district or
  campus that receives an accreditation status of accredited-warned
  or accredited-probation that the performance of the district or
  campus is below a standard required under this subchapter.  The
  commissioner shall require the district to notify the parents of
  students enrolled in the district and property owners in the
  district of the accreditation status of the district or campus and
  the implications of that accreditation status.
         (g)  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.
         (h)  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. 39.053.  PERFORMANCE INDICATORS: STUDENT ACHIEVEMENT.
  (a)  The commissioner shall adopt a set of indicators of the quality
  of learning and student achievement on a campus. The commissioner
  biennially shall review the indicators for the consideration of
  appropriate revisions.
         (b)  Performance on the student achievement indicators
  adopted under this section shall be compared to state-established
  standards.  The degree of change from one school year to the next in
  performance on each indicator adopted under this section shall also
  be considered.  The indicators must be based on information that is
  disaggregated by race, ethnicity, and socioeconomic status.
         (c)  Indicators of student achievement adopted under this
  section must include:
               (1)  the results of assessment instruments required
  under Sections 39.023(a), (b), (c), and (l), aggregated by grade
  level and subject area, including:
                     (A)  the percentage of students who performed
  satisfactorily, as determined under the college readiness
  performance standards under Section 39.0241 or as determined under
  Section 39.0243, on the assessment instruments, aggregated by grade
  level and subject area; and
                     (B)  for students who did not perform
  satisfactorily as described by Paragraph (A), the percentage of
  students who met the standard for annual improvement, as determined
  by the agency under Section 39.034, on assessment instruments,
  aggregated by grade level and subject area;
               (2)  dropout rates, including dropout rates and
  district completion rates for grade levels 9 through 12, computed
  in accordance with standards and definitions adopted by the
  National Center for Education Statistics of the United States
  Department of Education; and
               (3)  high school graduation rates, computed in
  accordance with standards and definitions adopted in compliance
  with the No Child Left Behind Act of 2001 (20 U.S.C. Section 6301 et
  seq.).
         (d)  Performance on the student achievement indicators
  described by Subsection (c) must be based on longitudinal student
  data that is disaggregated by the bilingual education or special
  language program, if any, in which students of limited English
  proficiency, as defined by Section 29.052, are or former students
  of limited English proficiency were enrolled.  If a student
  described by this subsection is not or was not enrolled in
  specialized language instruction, the number and percentage of
  those students shall be provided.
         (e)  Performance on the student achievement indicator
  described by Subsection (c)(1) shall be compared to state
  standards, required improvement, and comparable improvement. The
  state standard shall be established by the commissioner. Required
  improvement is the progress necessary for the campus or district to
  meet state standards and for its students to meet college readiness
  performance standards as determined under Section 39.0241 or the
  alternate performance standard established under Section 39.0243.
  Comparable improvement is derived by measuring campuses and
  districts against a profile developed from a total state student
  performance database that exhibits substantial equivalence to the
  characteristics of students served by the campus or district,
  including past academic performance, socioeconomic status,
  ethnicity, and limited English proficiency.
         (f)  Annually, the commissioner shall define the state
  standard for the current school year for each student achievement
  indicator described by Subsection (c) for accreditation and shall
  project the state standards for each indicator for accreditation
  for the following two school years.  The commissioner shall
  periodically raise the state standards for the student achievement
  indicator described by Subsection (c)(1)(A) for accreditation as
  necessary to reach the goal of achieving, by not later than the
  2019-2020 school year, student performance in this state,
  disaggregated by race, ethnicity, and socioeconomic status, that
  ranks nationally in the top 10 states in terms of college readiness.
         (g)  In defining the required state standard for
  accreditation for the indicator described by Subsection (c)(2), the
  commissioner may not consider as a dropout a student whose failure
  to attend school results from:
               (1)  the student's expulsion under Section 37.007; and
               (2)  as applicable:
                     (A)  adjudication as having engaged in delinquent
  conduct or conduct indicating a need for supervision, as defined by
  Section 51.03, Family Code; or
                     (B)  conviction of and sentencing for an offense
  under the Penal Code.
         (h)  Each school district shall cooperate with the agency in
  determining whether a student is a dropout for purposes of
  accreditation and evaluating performance by school districts and
  campuses under this chapter.
         (i)  The commissioner by rule shall adopt accountability
  measures to be used in assessing the progress of students who have
  failed to perform satisfactorily as described by Subsection
  (c)(1)(A) in the preceding school year on an assessment instrument
  required under Section 39.023(a), (c), or (l).
         Sec. 39.054.  METHODS AND STANDARDS FOR EVALUATING
  PERFORMANCE. (a)  The commissioner shall adopt rules to evaluate
  school district and campus performance.
         (b)  In evaluating performance, the commissioner shall
  evaluate against state standards and consider the performance of
  each campus in a school district and each open-enrollment charter
  school on the basis of the campus's or school's performance on the
  student achievement indicators adopted under Section 39.053(c).  
  Any consideration of the effectiveness of district programs under
  Section 39.052(b)(2)(B) or (C) must be based on data collected
  through the Public Education Information Management System (PEIMS)
  for purposes of accountability under this chapter and include the
  results of assessment instruments required under Section 39.023.
         (c)  In evaluating school district and campus performance on
  the student achievement indicator adopted under Section
  39.053(c)(1), the commissioner shall identify satisfactory
  performance as meeting the state standard determined by the
  commissioner under Section 39.053(f) for the current school year
  based on:
               (1)  student performance in the current school year; or
               (2)  student performance as averaged over the current
  school year and the preceding two school years.
         (d)  Each annual accreditation review under Section 39.052
  shall include an analysis of the student achievement indicators
  adopted under Section 39.053(c) to determine school district and
  campus performance in relation to:
               (1)  standards established for each indicator;
               (2)  required improvement as defined under Section
  39.053(e); and
               (3)  comparable improvement as defined by Section
  39.053(e).
         (e)  In the computation of dropout rates under Section
  39.053(c)(2), a student who is released from a juvenile
  pre-adjudication secure detention facility or juvenile
  post-adjudication secure correctional facility and fails to enroll
  in school or a student who leaves a residential treatment center
  after receiving treatment for fewer than 85 days and fails to enroll
  in school may not be considered to have dropped out from the school
  district or campus serving the facility or center unless that
  district or campus is the one to which the student is regularly
  assigned.
         Sec. 39.055.  STUDENT CONFINED BY COURT ORDER NOT CONSIDERED
  FOR ACCOUNTABILITY PURPOSES. Notwithstanding any other provision
  of this code, for purposes of determining the performance of a
  school district or campus under this chapter, including the
  accreditation status of a district or campus, a student confined by
  court order in a residential program or facility operated by or
  under contract with the Texas Youth Commission, the Texas Juvenile
  Probation Commission, a juvenile board, or any other governmental
  entity is not considered to be a student of the school district in
  which the program or facility is physically located. The
  performance of such a student on an assessment instrument or other
  student achievement indicator adopted under Section 39.053 or
  reporting indicator adopted under Section 39.301 shall be
  determined, reported, and considered separately from the
  performance of students attending a school of the district in which
  the program or facility is physically located.
         Sec. 39.056.  ON-SITE INVESTIGATIONS. (a)  The commissioner
  may:
               (1)  direct the agency to conduct on-site
  investigations of a school district at any time to answer any
  questions concerning a program, including special education,
  required by federal law or for which the district receives federal
  funds; and
               (2)  as a result of the investigation, change the
  accreditation status of a district or campus or withdraw a
  distinction designation under Subchapter G.
         (b)  The commissioner shall determine the frequency of
  on-site investigations by the agency according to annual
  comprehensive analyses of student performance and equity in
  relation to the student achievement indicators adopted under
  Section 39.053.
         (c)  In making an on-site accreditation investigation, the
  investigators shall obtain information from administrators,
  teachers, and parents of students enrolled in the school district.
  The investigation may not be closed until information is obtained
  from each of those sources. The State Board of Education 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 district or campus from screening the information.
         (d)  The agency shall give written notice to the
  superintendent and the board of trustees of a school district of any
  impending investigation of the district's or campus's
  accreditation.
         (e)  If an annual accreditation review under Section 39.052
  indicates low performance on one or more of the indicators adopted
  under Section 39.053(c) of one or more campuses in a school
  district, the agency may conduct an on-site evaluation of those
  campuses only.
         (f)  The investigators shall report orally and in writing to
  the board of trustees of the school 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.
         Sec. 39.057.  SPECIAL ACCREDITATION INVESTIGATIONS. (a)  
  The commissioner 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 instruments 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 compliance reviews of
  the district's financial accounting practices and state and federal
  program requirements;
               (5)  when extraordinary numbers of student placements
  in disciplinary 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);
               (8)  in response to an allegation regarding or an
  analysis using a statistical method result indicating a possible
  violation of an assessment instrument security procedure
  established under Section 39.0301, including for the purpose of
  investigating or auditing a school district under that section;
               (9)  when a significant pattern of increased student
  dropout rates or decreased academic performance develops as the
  result of the promotion of students who did not perform
  satisfactorily on assessment instruments administered under
  Section 39.023(a), (c), or (l); or
               (10)  as the commissioner otherwise determines
  necessary.
         (b)  If the agency's findings in an investigation under
  Subsection (a)(6) indicate that the board of trustees has observed
  a lawfully adopted policy, the agency may not substitute its
  judgment for that of the board.
         (c)  The commissioner may authorize special accreditation
  investigations to be conducted in response to repeated complaints
  submitted to the agency concerning imposition of excessive
  paperwork requirements on classroom teachers.
         (d)  Based on the results of a special accreditation
  investigation, the commissioner may:
               (1)  take appropriate action under Subchapter E;
               (2)  lower the school district's or campus's
  accreditation status; or
               (3)  take action under both Subdivisions (1) and (2).
         (e)  Regardless of whether the commissioner lowers the
  school district's or campus's accreditation status under Subsection
  (d), the commissioner may take action under Sections 39.101(a)(1)
  through (8) or 39.102(1) through (7) if the commissioner determines
  that the action is necessary to improve any area of a district's or
  campus's performance, including the district's financial
  accounting practices.
         Sec. 39.058.  CONDUCT OF INVESTIGATIONS. (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.
         (b)  After completing an investigation, the agency shall
  present preliminary findings to any person the agency finds has
  violated a law, rule, or policy. Before issuing a report with its
  final findings, the agency must provide a person the agency finds
  has violated a law, rule, or policy an opportunity for an informal
  review by the commissioner or a designated hearing examiner.
         SECTION 24.  Subchapter I, Chapter 39, Education Code, is
  redesignated as Subchapter D, Chapter 39, Education Code, and the
  sections in the redesignated subchapter, Sections 39.201, 39.202,
  39.203, and 39.204, are redesignated as Sections 39.081, 39.082,
  39.083, and 39.084, Education Code, respectively.
         SECTION 25.  Subchapter I, Chapter 39, Education Code,
  redesignated by this Act as Subchapter D, Chapter 39, Education
  Code, is amended by adding Sections 39.0821, 39.0822, and 39.0823
  to read as follows:
         Sec. 39.0821.  COMPTROLLER REVIEW OF RESOURCE ALLOCATION
  PRACTICES. The comptroller shall identify school districts and
  campuses that use resource allocation practices that contribute to
  high academic achievement and cost-effective operations. In
  identifying districts and campuses under this section, the
  comptroller shall:
               (1)  evaluate existing academic accountability and
  financial data by integrating the data;
               (2)  rank the results of the evaluation under
  Subdivision (1) to identify the relative performance of districts
  and campuses; and
               (3)  identify potential areas for district and campus
  improvement.
         Sec. 39.0822.  FINANCIAL SOLVENCY REVIEW REQUIRED. (a) The  
  agency shall develop a review process to anticipate the future
  financial solvency of each school district. The review process
  shall analyze:
               (1)  district revenues and expenditures for the
  preceding school year; and
               (2)  projected district revenues and expenditures for
  the current school year and the following five school years.
         (b)  In analyzing the information under Subsection (a), the
  review process developed must consider, for the preceding school
  year, the current school year, and the following five years, as
  appropriate:
               (1)  student-to-staff ratios relative to expenditures,
  including average staff salaries;
               (2)  the rate of depletion of the district general fund
  balance;
               (3)  the number of students enrolled in the district;
               (4)  the adopted tax rate of the district;
               (5)  any independent audit report prepared for the
  district; and
               (6)  actual financial data for the district for the
  month of September.
         (c)  The agency shall consult school district financial
  officers in developing the review process under this section.
         (d)  The agency shall develop a computer software template
  for school districts to use in submitting information to the agency
  for purposes of this section. Each district shall update
  information to the template within the period prescribed by the
  commissioner. The commissioner shall adopt rules under this
  subsection to allow a district to enter estimates of critical data
  into the template before the district adopts its budget. The
  template must:
               (1)  be capable of importing, to the extent
  practicable, data a district has previously submitted to the
  agency;
               (2)  include an entry space that allows a district to
  enter information explaining any irregularity in data submitted;
  and
               (3)  provide alerts for:
                     (A)  a student-to-staff ratio that is
  significantly outside the norm;
                     (B)  a rapid depletion of the district general
  fund balance; and
                     (C)  a significant discrepancy between actual
  budget figures and projected revenues and expenditures.
         (e)  An alert in the template developed under Subsection (d)
  must be developed to notify the agency immediately on the
  occurrence of a condition described by Subsection (d)(3). After
  the agency is alerted, the agency shall immediately notify the
  affected school district regarding the condition triggering the
  alert.
         Sec. 39.0823.  PROJECTED DEFICIT.  (a)  If the review process
  under Section 39.0822 indicates a projected deficit for a school
  district general fund within the following five school years, the
  district shall provide the agency interim financial reports,
  supplemented by staff and student count data, as needed, to
  evaluate the district's current budget status.
         (b)  If the interim financial data provided under Subsection
  (a) substantiates the projected deficit, the school district shall
  develop a financial plan and submit the plan to the agency for
  approval.  The agency may approve the plan only if the agency
  determines the plan will permit the district to avoid the projected
  insolvency.
         (c)  The commissioner shall assign a school district an
  accredited-warned status if:
               (1)  the district fails to submit a plan as provided by
  Subsection (b);
               (2)  the district fails to obtain approval from the
  agency for a plan as provided by Subsection (b);
               (3)  the district fails to comply with a plan approved
  by the agency under Subsection (b); or
               (4)  the agency determines in a subsequent school year,
  based on financial data submitted by the district, that the
  approved plan for the district is no longer sufficient or is not
  appropriately implemented.
         SECTION 26.  Section 39.203(b), Education Code,
  redesignated by this Act as Section 39.083(b), Education Code, is
  amended to read as follows:
         (b)  The annual financial management report must include:
               (1)  a description of the district's financial
  management performance based on a comparison, provided by the
  agency, of the district's performance on the indicators adopted
  under Section 39.082(b) [39.202(b)] to:
                     (A)  state-established standards; and
                     (B)  the district's previous performance on the
  indicators; [and]
               (2)  a description of the data submitted using the
  computer software template developed under Section 39.0822; and
               (3)  any descriptive information required by the
  commissioner.
         SECTION 27.  Subchapter G, Chapter 39, Education Code, is
  redesignated as Subchapter E, Chapter 39, Education Code, and the
  sections in the redesignated subchapter, Sections 39.131, 39.132,
  39.1321, 39.1322, 39.1323, 39.1324, 39.1327, 39.133, 39.1331,
  39.134, 39.135, 39.136, 39.137, and 39.138, Education Code, are
  redesignated as Sections 39.101, 39.102, 39.103, 39.104, 39.105,
  39.106, 39.107, 39.108, 39.109, 39.110, 39.111, 39.112, 39.113, and
  39.114, Education Code, respectively.
         SECTION 28.  The heading to Subchapter G, Chapter 39,
  Education Code, redesignated by this Act as Subchapter E, Chapter
  39, Education Code, is amended to read as follows:
  SUBCHAPTER E [G]. ACCREDITATION INTERVENTIONS AND SANCTIONS
         SECTION 29.  Section 39.131, Education Code, redesignated by
  this Act as Section 39.101, Education Code, is amended to read as
  follows:
         Sec. 39.101 [39.131].  INTERVENTIONS AND SANCTIONS FOR
  DISTRICTS. (a)  If a school district does not satisfy the
  accreditation criteria under Section 39.052 [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 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
  insufficient [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 student achievement [academic
  excellence] indicator under Section 39.053(c) for which the
  district's performance is insufficient [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 insufficient [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, fails to satisfy any
  standard under Section 39.054(d) [is rated academically
  unacceptable], or fails to satisfy financial accountability
  standards as determined by commissioner rule, 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 for which performance is currently
  determined, a district has received an accreditation status of
  accredited-warned or accredited-probation, has failed to satisfy
  any standard under Section 39.054(d) [been rated academically
  unacceptable], or has failed to satisfy financial accountability
  standards as determined by commissioner rule, revoke the district's
  accreditation and:
                     (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 failed to satisfy any standard
  under Section 39.054(d) [been rated academically unacceptable] for
  two consecutive school years, including the [current] school year
  for which performance is currently determined, 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 for
  which the accreditation status is currently determined, 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.
         SECTION 30.  Section 39.132, Education Code, redesignated by
  this Act as Section 39.102, Education Code, is amended to read as
  follows:
         Sec. 39.102 [39.132].  INTERVENTIONS AND SANCTIONS FOR
  LOW-PERFORMING [ACADEMICALLY UNACCEPTABLE] CAMPUSES. If a campus
  performance is below any standard under Section 39.054(d)
  [39.073(b)], the campus is considered a low-performing [an
  academically unacceptable] campus.  The commissioner may permit
  the campus to participate in an innovative redesign of the campus to
  improve campus performance or shall take any of the other following
  actions, 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 insufficient
  [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 improvement
  plan that addresses each student achievement [academic excellence]
  indicator under Section 39.053(c) for which the campus's
  performance is insufficient [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; or
               (7)  appoint a campus intervention team under Section
  39.104 [39.1322].
         SECTION 31.  The heading to Section 39.1321, Education Code,
  redesignated by this Act as Section 39.103, Education Code, is
  amended to read as follows:
         Sec. 39.103 [39.1321]. INTERVENTIONS AND SANCTIONS FOR
  CHARTER SCHOOLS.
         SECTION 32.  Sections 39.1321(a), (b), and (d), Education
  Code, redesignated by this Act as Section 39.103(a), (b), and (d),
  Education Code, are amended to read as follows:
         (a)  Interventions and sanctions [Sanctions] authorized
  under this chapter for a school district or campus apply in the same
  manner to an open-enrollment charter school.
         (b)  The commissioner shall adopt rules to implement
  procedures to impose any intervention or sanction provision under
  this chapter as those provisions relate to open-enrollment charter
  schools.
         (d)  If interventions or sanctions are imposed on an
  open-enrollment charter school under the procedures provided by
  this chapter, a charter school is not entitled to an additional
  hearing relating to the modification, placement on probation,
  revocation, or denial of renewal of a charter as provided by
  Subchapter D, Chapter 12.
         SECTION 33.  Sections 39.1322(a) and (b), Education Code,
  redesignated by this Act as Sections 39.104(a) and (b), Education
  Code, are amended to read as follows:
         (a)  If a campus performance satisfies performance standards
  under Section 39.054(d) [is rated academically acceptable] for the
  current school year but would not satisfy performance standards
  under Section 39.054(d) [be rated as academically unacceptable] if
  the [performance] standards to be used for the following school
  year were applied to the current school year, the commissioner
  shall select and assign a technical assistance team to assist the
  campus in executing a school improvement plan and any other school
  improvement strategies the commissioner determines
  appropriate.  The commissioner may waive the requirement to assign
  a technical assistance team under this subsection if the
  improvement in performance standards among all student groups,
  including special populations, over the preceding three years
  indicates that the campus is likely to satisfy performance
  standards under Section 39.054(d) [be rated academically
  acceptable] in the following school year.
         (b)  If a campus has been identified as a low-performing
  campus [academically unacceptable] under Section 39.102 [39.132],
  the commissioner shall appoint a campus intervention team.
         SECTION 34.  Sections 39.1323(a), (b), (e), and (f),
  Education Code, redesignated by this Act as Sections 39.105(a),
  (b), (e), and (f), Education Code, are amended to read as follows:
         (a)  A campus intervention team shall:
               (1)  conduct a comprehensive on-site needs assessment
  [evaluation] of the campus as provided by Subsection (b) [to
  determine the cause for the campus's low performance and lack of
  progress];
               (2)  recommend appropriate actions as provided by
  Subsection (c)[, 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];
               (3)  assist in the development of a school improvement
  plan for student achievement; and
               (4)  assist the commissioner in monitoring the progress
  of the campus in implementing the school improvement plan for
  improvement of student achievement.
         (b)  A [campus intervention team assigned under Section
  39.1322 to a campus shall conduct a] comprehensive on-site needs
  assessment of the campus under Subsection (a) must [to] determine
  the causal factors resulting in the campus's low performance and
  lack of progress.  The team shall use the following guidelines and
  procedures in conducting the comprehensive needs assessment of the
  campus:
               (1)  an assessment of the staff to determine the
  percentage of certified teachers who are teaching in their field,
  the number of teachers with less than three years of experience, and
  teacher turnover rates;
               (2)  compliance with the appropriate class-size rules
  and number of class-size waivers received;
               (3)  an assessment of the quality, quantity, and
  appropriateness of instructional materials, including the
  availability of technology-based instructional materials;
               (4)  a report on the parental involvement strategies
  and the effectiveness of the strategies;
               (5)  an assessment of the extent and quality of the
  mentoring program provided for new teachers on the campus;
               (6)  an assessment of the type and quality of the
  professional development provided to the staff;
               (7)  a demographic analysis of the student population,
  including student demographics, at-risk populations, and special
  education percentages;
               (8)  a report of disciplinary incidents and school
  safety information;
               (9)  financial and accounting practices;
               (10)  an assessment of the appropriateness of the
  curriculum and teaching strategies; and
               (11)  any other research-based data or information
  obtained from a data collection process that would assist the
  campus intervention team in:
                     (A)  recommending an action under Subsection (c);
  and
                     (B)  executing a school improvement plan under
  Subsection (d).
         (e)  A campus intervention team [appointed under Section
  39.1322(b)]:
               (1)  shall continue to work with a campus until:
                     (A)  the campus satisfies all performance
  standards under Section 39.054(d) [is rated academically
  acceptable] for a two-year period; or
                     (B)  the campus satisfies all performance
  standards under Section 39.054(d) [is rated academically
  acceptable] for a one-year period and the commissioner determines
  that the campus is operating and will continue to operate in a
  manner that improves student achievement; and
               (2)  may continually update the school improvement
  plan, with approval from the commissioner, to meet the needs of the
  campus.
         (f)  Notwithstanding any other provision of this subchapter,
  if the commissioner determines that a campus for which an
  intervention is ordered under Section 39.104(b) [39.1322(b)] is not
  fully implementing the campus intervention team's recommendations
  or school improvement plan, the commissioner may order the
  reconstitution of the campus.
         SECTION 35.  The heading to Section 39.1324, Education Code,
  redesignated by this Act as Section 39.106, Education Code, is
  amended to read as follows:
         Sec. 39.106 [39.1324].  MANDATORY INTERVENTIONS AND
  SANCTIONS.
         SECTION 36.  Sections 39.1324(a), (d), (e), and (f),
  Education Code, redesignated by this Act as Sections 39.106(a),
  (d), (e), and (f), Education Code, are amended to read as follows:
         (a)  If a campus has been identified as a low-performing
  campus under Section 39.102 [academically unacceptable] for two
  consecutive school years, including the [current] school year for
  which the performance is currently determined, the commissioner
  shall order the reconstitution of the campus and assign a campus
  intervention team.  In reconstituting the campus, a campus
  intervention team shall assist the campus in:
               (1)  developing a school improvement plan;
               (2)  obtaining approval of the plan from the
  commissioner; and
               (3)  executing the plan on approval by the
  commissioner.
         (d)  Notwithstanding any other provision of this subchapter,
  if the commissioner determines that a campus subject to Subsection
  (a) is not fully implementing the school improvement plan, the
  commissioner may pursue alternative management of the campus under
  Section 39.107 [39.1327] or may order closure of the campus.
         (e)  If a campus is identified as a low-performing campus
  under Section 39.102 [considered an academically unacceptable
  campus] for the subsequent school year after the campus is
  reconstituted under this section, the commissioner shall review the
  progress of the campus and may order closure of the campus or pursue
  alternative management under Section 39.107 [39.1327].
         (f)  If a campus is identified as a low-performing campus
  under Section 39.102 [considered academically unacceptable] for
  two consecutive school years after the campus is reconstituted
  under Subsection (a), the commissioner shall order closure of the
  campus or pursue alternative management under Section 39.107
  [39.1327].
         SECTION 37.  The heading to Section 39.1327, Education Code,
  redesignated by this Act as Section 39.107, Education Code, is
  amended to read as follows:
         Sec. 39.107 [39.1327]. MANAGEMENT OF CERTAIN LOW-PERFORMING
  [ACADEMICALLY UNACCEPTABLE] CAMPUSES.
         SECTION 38.  Sections 39.1327(a), (b), (c), (d), (e), and
  (f), Education Code, redesignated by this Act as Sections
  39.107(a), (b), (c), (d), (e), and (f), Education Code, are amended
  to read as follows:
         (a)  A campus may be subject to this section if the campus has
  been identified as a low-performing campus under Section 39.102
  [academically unacceptable under Section 39.132] and the
  commissioner orders alternative management under Section 39.106(d)
  [39.1324(d)], (e), or (f).
         (b)  The commissioner shall solicit proposals from qualified
  nonprofit or for profit entities to assume management of a campus
  subject to this section or may appoint to assume management of a
  campus subject to this section a school district other than the
  district in which the campus is located that is located in the
  boundaries of the same regional education service center as the
  campus is located.  A district appointed under this section shall
  assume management of a campus subject to this section in the same
  manner provided by this section for a qualified [nonprofit] entity
  or in accordance with commissioner rule.
         (c)  If the commissioner determines that the basis for
  identifying a campus as a low-performing campus [academically
  unacceptable] is limited to a specific condition that may be
  remedied with targeted technical assistance, the commissioner may:
               (1)  provide the campus a one-year waiver under this
  section; and
               (2)  require the district to contract for the
  appropriate technical assistance.
         (d)  The commissioner may annually solicit proposals under
  this section for the management of a campus subject to this
  section.  The commissioner shall notify a qualified [nonprofit]
  entity that has been approved as a provider under this
  section.  The district must execute a contract with an approved
  provider and relinquish control of the campus before January 1 of
  the school year.
         (e)  To qualify for consideration as a managing entity under
  this section, the entity must submit a proposal that provides
  information relating to the entity's management and leadership team
  that will participate in management of the campus under
  consideration, including information relating to individuals that
  have:
               (1)  documented success in whole school interventions
  that increased the educational and performance levels of students
  in low-performing [academically unacceptable] campuses;
               (2)  a proven record of effectiveness with programs
  assisting low-performing students;
               (3)  a proven ability to apply research-based school
  intervention strategies;
               (4)  a proven record of financial ability to perform
  under the management contract; and
               (5)  any other experience or qualifications the
  commissioner determines necessary.
         (f)  In selecting a managing entity under this section, the
  commissioner shall give preference to a qualified [nonprofit]
  entity that:
               (1)  meets any qualifications under this section; and
               (2)  has documented success in educating students from
  similar demographic groups and with similar educational needs as
  the students who attend the campus that is to be operated by a
  managing entity under this section.
         SECTION 39.  Section 39.133, Education Code, redesignated by
  this Act as Section 39.108, Education Code, is amended to read as
  follows:
         Sec. 39.108 [39.133].  ANNUAL REVIEW. The commissioner
  shall review annually the performance of a district or campus
  subject to this subchapter to determine the appropriate actions to
  be implemented under this subchapter.  The commissioner must review
  at least annually the performance of a district for which the
  accreditation status [rating] has been lowered due to insufficient
  [unacceptable] student performance and may not raise the
  accreditation status [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.
         SECTION 40.  Section 39.1331, Education Code, redesignated
  by this Act as Section 39.109, Education Code, is amended to read as
  follows:
         Sec. 39.109 [39.1331].  ACQUISITION OF PROFESSIONAL
  SERVICES. In addition to other interventions and sanctions
  authorized under Sections 39.101 [39.131] and 39.102 [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.
         SECTION 41.  Section 39.134, Education Code, redesignated by
  this Act as Section 39.110, Education Code, is amended to read as
  follows:
         Sec. 39.110 [39.134].  COSTS PAID BY DISTRICT. The costs of
  providing a monitor, conservator, management team, campus
  intervention team, technical assistance team, managing entity
  under Section 39.107 [39.1327], or service provider under Section
  39.109 [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 42.  Section 39.135(c), Education Code,
  redesignated by this Act as Section 39.111(c), Education Code, is
  amended to read as follows:
         (c)  A conservator or management team, if directed by the
  commissioner, shall prepare a plan for the implementation of action
  under Section 39.101(a)(9) or (10) [39.131(a)(9) or (10)]. The
  conservator or management team:
               (1)  may direct an action to be taken by the principal
  of a campus, the superintendent of the district, or the board of
  trustees of the district;
               (2)  may approve or disapprove any action of the
  principal of a campus, the superintendent of the district, or the
  board of trustees of the district;
               (3)  may not take any action concerning a district
  election, including ordering or canceling an election or altering
  the date of or the polling places for an election;
               (4)  may not change the number of or method of selecting
  the board of trustees;
               (5)  may not set a tax rate for the district; and
               (6)  may not adopt a budget for the district that
  provides for spending a different amount, exclusive of required
  debt service, from that previously adopted by the board of
  trustees.
         SECTION 43.  Subchapter K, Chapter 39, Education Code, is
  redesignated as Subchapter F, Chapter 39, Education Code, and the
  sections in the redesignated subchapter, Sections 39.301 and
  39.302, are redesignated as Sections 39.151 and 39.152, Education
  Code.
         SECTION 44.  The heading to Subchapter K, Chapter 39,
  Education Code, redesignated by this Act as Subchapter F, Chapter
  39, Education Code, is amended to read as follows:
  SUBCHAPTER F [K].  PROCEDURES FOR CHALLENGE OF ACCREDITATION
  STATUS, ACCOUNTABILITY DETERMINATION, INTERVENTION, [RATING] OR
  SANCTION
         SECTION 45.  The heading to Section 39.301, Chapter 39,
  Education Code, redesignated by this Act as Section 39.151,
  Education Code, is amended to read as follows:
         Sec. 39.151 [39.301].  REVIEW BY COMMISSIONER:  
  ACCREDITATION STATUS OR ACCOUNTABILITY DETERMINATION [RATINGS].
         SECTION 46.  Sections 39.301(a), (b), and (e), Chapter 39,
  Education Code, redesignated by this Act as Sections 39.151(a),
  (b), and (e), Education Code, are amended to read as follows:
         (a)  The commissioner by rule shall provide a process for a
  school district or open-enrollment charter school to challenge an
  agency decision made under this chapter relating to an
  accreditation status determination or other determination made
  under this chapter regarding the academic or financial performance
  of [accountability rating that affects] the district or school.
         (b)  The rules under Subsection (a) must provide for the
  commissioner to appoint a committee to make recommendations to the
  commissioner on a challenge made to an agency decision relating to
  an accreditation status determination, academic performance
  determination, or financial accountability rating.  The
  commissioner may not appoint an agency employee as a member of the
  committee.
         (e)  A school district or open-enrollment charter school may
  not challenge an agency decision relating to an accreditation
  status determination or other determination made under this chapter
  regarding the academic or financial performance of the district or
  school [accountability rating under this chapter] in another
  proceeding if the district or school has had an opportunity to
  challenge the decision under this section.
         SECTION 47.  Chapter 39, Education Code, is amended by
  adding Subchapter G to read as follows:
  SUBCHAPTER G.  DISTINCTION DESIGNATIONS
         Sec. 39.201.  CAMPUS DISTINCTION DESIGNATIONS. (a) The
  commissioner shall award a campus a distinction designation if the
  campus is ranked in the top 25 percent of campuses in the state in
  annual improvement in student achievement as determined under
  Section 39.034.
         (b)  In addition to the distinction designation described by
  Subsection (a), the commissioner shall award a campus a distinction
  designation if the campus demonstrates an ability to significantly
  diminish or eliminate performance differentials between student
  subpopulations.  The commissioner shall adopt rules related to the
  distinction designation under this subsection to ensure that a
  campus does not artificially diminish or eliminate performance
  differentials through inhibiting the achievement of the highest
  achieving student subpopulation.
         (c)  In addition to the distinction designations described
  by Subsections (a) and (b), a campus that satisfies the criteria
  developed under Section 39.202 shall be awarded a distinction
  designation by the commissioner for the following programs or the
  following specific categories of performance:
               (1)  academic achievement;
               (2)  fine arts;
               (3)  physical education;
               (4)  21st Century Workforce Development program; and
               (5)  second language acquisition program.
         (d)  A campus may not be awarded a distinction designation
  under this subchapter unless the campus is assigned an
  accreditation status of accredited under Section 39.052.
         Sec. 39.202.  CAMPUS DISTINCTION DESIGNATION CRITERIA;
  COMMITTEES. (a) The commissioner by rule shall establish:
               (1)  standards for considering campuses for
  distinction designations under Section 39.201(c); and
               (2)  methods for awarding distinction designations to
  campuses.
         (b)  In adopting rules under this section, the commissioner
  shall establish a separate committee to develop criteria for each
  distinction designation under Section 39.201(c).
         (c)  Each committee established under this section must
  include:
               (1)  individuals who practice as professionals in the
  content area relevant to the distinction designation, as
  applicable;
               (2)  individuals with subject matter expertise in the
  content area relevant to the distinction designation;
               (3)  educators with subject matter expertise in the
  content area relevant to the distinction designation; and
               (4)  community leaders, including leaders from the
  business community.
         (d)  For each committee, the governor, lieutenant governor,
  and speaker of the house of representatives may each appoint a
  person described by each subdivision of Subsection (c).
         (e)  In developing criteria for distinction designations
  under this section, each committee shall:
               (1)  identify a variety of indicators for measuring
  excellence;  and
               (2)  consider categories for distinction designations,
  with criteria relevant to each category, based on:
                     (A)  the level of a program, whether elementary
  school, middle or junior high school, or  high school; and
                     (B)  the student enrollment of a campus.
         SECTION 48.  Subchapter F, Chapter 39, Education Code, is
  redesignated as Subchapter H, Chapter 39, Education Code, and the
  sections in the redesignated subchapter, Sections 39.111, 39.112,
  39.113, 39.114, 39.115, and 39.116, are redesignated as Sections
  39.231, 39.232, 39.233, 39.234, 39.235, and 39.236, Education Code,
  respectively.
         SECTION 49.  Section 39.111, Education Code, redesignated by
  this Act as Section 39.231, Education Code, is amended to read as
  follows:
         Sec. 39.231 [39.111].  RECOGNITION AND REWARDS. The State
  Board of Education shall develop a plan for recognizing and
  rewarding school [districts and] campuses that receive a
  distinction designation under Subchapter G and develop [are rated
  as exemplary or recognized and for developing] a network for
  sharing proven successful practices statewide and regionally. The
  reward may be used to provide educators with summer stipends to
  develop curricula based on the cited successful strategies. The
  educators may copyright the curricula they develop.
         SECTION 50.  Section 39.112, Education Code, redesignated by
  this Act as Section 39.232, Education Code, is amended to read as
  follows:
         Sec. 39.232 [39.112]. DISTINCTION [EXCELLENCE] EXEMPTIONS.
  (a)  Except as provided by Subsection (b), a school campus [or
  district] that holds a distinction designation under Section
  39.201(a) or (c)(1) [is rated exemplary] is exempt from
  requirements and prohibitions imposed under this code including
  rules adopted under this code.
         (b)  A school campus [or district] is not exempt under this
  section from:
               (1)  a prohibition on conduct that constitutes a
  criminal offense;
               (2)  requirements imposed by federal law or rule,
  including requirements for special education or bilingual
  education programs; or
               (3)  a requirement, restriction, or prohibition
  relating to:
                     (A)  curriculum essential knowledge and skills
  under Section 28.002 or high school [minimum] graduation
  requirements under Section 28.025;
                     (B)  public school accountability as provided by
  Subchapters B, C, E [D], and J [G];
                     (C)  extracurricular activities under Section
  33.081;
                     (D)  health and safety under Chapter 38;
                     (E)  purchasing [competitive bidding] under
  Subchapter B, Chapter 44;
                     (F)  elementary school class size limits, except
  as provided by Subsection (d) or Section 25.112;
                     (G)  removal of a disruptive student from the
  classroom under Subchapter A, Chapter 37;
                     (H)  at risk programs under Subchapter C, Chapter
  29;
                     (I)  prekindergarten programs under Subchapter E,
  Chapter 29;
                     (J)  rights and benefits of school employees;
                     (K)  special education programs under Subchapter
  A, Chapter 29; or
                     (L)  bilingual education programs under
  Subchapter B, Chapter 29.
         (c)  The agency shall monitor and evaluate deregulation of a
  school campus [or district] under this section and Section 7.056.
         (d)  The commissioner may exempt a [an exemplary] school
  campus that receives a distinction designation under Section
  39.201(a) or (c)(1) from elementary class size limits under this
  section if the school campus submits to the commissioner a written
  plan showing steps that will be taken to ensure that the exemption
  from the class size limits will not be harmful to the academic
  achievement of the students on the school campus. The commissioner
  shall review achievement levels annually. The exemption remains in
  effect until the commissioner determines that achievement levels of
  the campus have declined.
         SECTION 51.  Section 39.113(a), Education Code,
  redesignated by this Act as Section 39.233(a), Education Code, is
  amended to read as follows:
         (a)  The agency shall:
               (1)  develop standards for evaluating the success and
  cost-effectiveness of high school completion and success and
  college readiness programs implemented under Section 39.234
  [39.114];
               (2)  provide guidance for school districts and campuses
  in establishing and improving high school completion and success
  and college readiness programs implemented under Section 39.234
  [39.114]; and
               (3)  develop standards for selecting and methods for
  recognizing school districts and campuses that offer exceptional
  high school completion and success and college readiness programs
  under Section 39.234 [39.114].
         SECTION 52.  Section 39.114(b), Education Code,
  redesignated by this Act as Section 39.234(b), Education Code, is
  amended to read as follows:
         (b)  A school district may use funds allocated under Section
  42.2516(b)(3) on any instructional program in grades six through 12
  other than an athletic program if:
               (1)  the district's measure of progress toward college
  readiness is determined exceptional by a standard set [district is
  recognized as exceptional] by the commissioner [under the academic
  accountability indicator adopted under Section 39.051(b)(13)]; and
               (2)  the district's completion rates for grades nine
  through 12 [meet or] exceed completion rate standards required by
  the commissioner to achieve a status of accredited under Section
  39.051 [rating of exemplary under Section 39.072].
         SECTION 53.  Section 39.115(a), Education Code,
  redesignated by this Act as Section 39.235(a), Education Code, is
  amended to read as follows:
         (a)  From funds appropriated for that purpose, the
  commissioner may establish a grant program under which grants are
  awarded to secondary campuses and school districts to support:
               (1)  the implementation of innovative high school
  improvement programs that are based on the best available research
  regarding high school reform, dropout prevention, and preparing
  students for postsecondary coursework or employment;
               (2)  enhancing education practices that have been
  demonstrated by significant evidence of effectiveness; and
               (3)  the alignment of grants and programs to the
  strategic plan adopted under Section 39.407 [39.357].
         SECTION 54.  Section 39.116, Education Code, redesignated by
  this Act as Section 39.236, Education Code, is amended to read as
  follows:
         Sec. 39.236 [39.116].  INITIATIVE FOR RETAINING QUALITY
  EDUCATORS.  Notwithstanding Section 39.106(b) [39.1324(b)], a
  school district, to assist in preventing dropouts and disruptions
  that may result from certain mandatory sanctions, may retain at a
  campus a principal who has been employed at the campus as a
  principal during the two-year period described by Section 39.106(a)
  [39.1324(a)] if the students enrolled at the campus have
  demonstrated a pattern of significant academic improvement.
         SECTION 55.  Subchapter E, Chapter 39, Education Code, is
  redesignated as Subchapter I, Chapter 39, Education Code, and the
  sections in the redesignated subchapter, Sections 39.091, 39.092,
  39.093, 39.094, 39.095, and 39.096, are redesignated as Sections
  39.261, 39.262, 39.263, 39.264, 39.265, and 39.266, Education Code,
  respectively.
         SECTION 56.  Section 39.093, Education Code, redesignated by
  this Act as Section 39.263, Education Code, is amended by amending
  Subsection (a) and adding Subsection (a-1) to read as follows:
         (a)  The criteria that the commissioner shall use to select
  successful schools and districts must be related to the goals in
  Section 4.002 and must include:
               (1)  for districts and campuses, consideration of
  performance on the student achievement [academic excellence]
  indicators adopted under Section 39.053(c); and
               (2)  for campuses, consideration of the distinction
  designation criteria prescribed by or developed under Subchapter G
  [39.051].
         (a-1)  For purposes of selecting schools and districts under
  Section 39.262(a) [39.092(a)], each school's performance shall be
  compared to state standards and to its previous performance.
         SECTION 57.  Chapter 39, Education Code, is amended by
  adding Subchapter J to read as follows:
  SUBCHAPTER J.  PARENT AND EDUCATOR REPORTS
         Sec. 39.301.  ADDITIONAL PERFORMANCE INDICATORS: REPORTING.
  (a)  In addition to the indicators adopted under Section 39.053, the
  commissioner shall adopt indicators of the quality of learning on a
  campus for the purpose of preparing reports under this chapter. The
  commissioner biennially shall review the indicators for the
  consideration of appropriate revisions.
         (b)  Performance on the indicators adopted under this
  section shall be evaluated in the same manner provided for
  evaluation of the student achievement indicators under Section
  39.053(b).
         (c)  Indicators for reporting purposes must include:
               (1)  the percentage of graduating students who meet the
  course requirements established for the Texas Diploma high school
  program by State Board of Education rule;
               (2)  the results of the Scholastic Assessment Test
  (SAT), the American College Test (ACT), articulated postsecondary
  degree programs described by Section 61.852, and certified
  workforce training programs described by Chapter 311, Labor Code;
               (3)  for students who have failed to perform
  satisfactorily, as determined under the college readiness
  performance standard under Section 39.0241, on an assessment
  instrument required under Section 39.023(a) or (c), the numerical
  progress of those students grouped by percentage on subsequent
  assessment instruments required under those sections, aggregated
  by grade level and subject area;
               (4)  the percentage of students, aggregated by grade
  level, provided accelerated instruction under Section 28.0211(c),
  the results of assessment instruments administered under that
  section, the percentage of students promoted through the grade
  placement committee process under Section 28.0211, the subject of
  the assessment instrument on which each student failed to perform
  satisfactorily, and the performance of those students in the school
  year following that promotion on the assessment instruments
  required under Section 39.023;
               (5)  the percentage of students exempted, by exemption
  category, from the assessment program generally applicable under
  this chapter;
               (6)  the percentage of students of limited English
  proficiency exempted from the administration of an assessment
  instrument under Sections 39.027(a)(3) and (4);
               (7)  the percentage of students in a special education
  program under Subchapter A, Chapter 29, assessed through assessment
  instruments developed or adopted under Section 39.023(b);
               (8)  the measure of progress toward college readiness;
  and
               (9)  the measure of progress toward dual language
  proficiency under Section 39.034(b), for students of limited
  English proficiency, as defined by Section 29.052.
         (d)  Performance on the indicators described by Subsections
  (c)(3), (4), and (9) must be based on longitudinal student data that
  is disaggregated by the bilingual education or special language
  program, if any, in which students of limited English proficiency,
  as defined by Section 29.052, are or former students of limited
  English proficiency were enrolled.  If a student described by this
  subsection is not or was not enrolled in specialized language
  instruction, the number and percentage of those students shall be
  provided.
         (e)  Section 39.055 applies in determining the performance
  of a school district or campus on an indicator described by
  Subsection (c).
         Sec. 39.302.  REPORT TO DISTRICT: COMPARISONS FOR ANNUAL
  PERFORMANCE ASSESSMENT. (a) The agency shall report to each school
  district the comparisons of student performance made under Section
  39.034.
         (b)  To the extent practicable, the agency shall combine the
  report of comparisons with the report of the student's performance
  on assessment instruments under Section 39.023.
         Sec. 39.303.  REPORT TO PARENTS. (a) The school district a
  student attends shall provide a record of the comparisons made
  under Section 39.034 and provided to the district under Section
  39.302 in a written notice to the student's parent or other person
  standing in parental relationship.
         (b)  For a student who failed to perform satisfactorily as
  determined under the college readiness performance standard under
  Section 39.0241 on an assessment instrument administered under
  Section 39.023(a), (c), or (l), the school district shall include
  in the notice specific information relating to access to online
  educational resources at the appropriate assessment instrument
  content level, including educational resources described by
  Section 32.252(b)(2) and assessment instruments questions and
  answers released under Section 39.023(e).
         Sec. 39.304.  TEACHER REPORT CARD.  Each school district
  shall prepare a report of the comparisons made under Section 39.034
  and provided to the district under 39.302 and provide the report to
  each teacher for all students who:
               (1)  were assessed on an assessment instrument under
  Section 39.023; and
               (2)  were provided instruction by that teacher in the
  subject for which the assessment instrument was administered under
  Section 39.023.
         Sec. 39.305.  CAMPUS REPORT CARD. (a)  The agency shall, not
  later than August 1 of each year, report the performance of each
  campus in a school district on the basis of the campus's performance
  on the indicators described by Section 39.053(c).
         (b)  Each school year, the agency shall prepare and
  distribute to each school district a report card for each campus.
  The campus report cards must be based on the most current data
  available disaggregated by student groups. Campus performance must
  be compared to previous campus and district performance, current
  district performance, state-established standards, and comparable
  campus group performance.
         (c)  The report card shall include the following
  information:
               (1)  where applicable, the student achievement
  indicators described by Section 39.053(c) and the reporting
  indicators described by Sections 39.301(c)(1) through (4);
               (2)  average class size by grade level and subject;
               (3)  the administrative and instructional costs per
  student, computed in a manner consistent with Section 44.0071; and
               (4)  the district's instructional expenditures ratio
  and instructional employees ratio computed under Section 44.0071,
  and the statewide average of those ratios, as determined by the
  commissioner.
         (d)  The commissioner shall adopt rules requiring
  dissemination of the information required under Subsection (c)(4)
  and appropriate class size and student performance portions of
  campus report cards annually to the parent of or other person
  standing in parental relationship to each student at the campus. On
  written request, the school district shall provide a copy of a
  campus report card to any other party.
         Sec. 39.306.  PERFORMANCE REPORT. (a)  Each board of
  trustees shall publish an annual report describing the educational
  performance of the school 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)  information indicating the district's
  accreditation status and identifying each district campus awarded a
  distinction designation under Subchapter G or considered a
  low-performing campus under Section 39.102;
               (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;
               (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
               (7)  information received under Section 51.403(e) for
  each high school campus in the district, presented in a form
  determined by the commissioner.
         (b)  Supplemental information to be included in the report
  shall be determined by the board of trustees. Performance
  information in the annual report on the indicators described by
  Sections 39.053 and 39.301 and descriptive information required by
  this section shall be provided by the agency.
         (c)  The board of trustees shall hold a hearing for public
  discussion of the report. The board of trustees shall give notice
  of the hearing to property owners in the school district and parents
  of and other persons standing in parental relation to a district
  student. The notification must include notice to a newspaper of
  general circulation in the district and notice to electronic media
  serving the district. After the hearing the report shall be widely
  disseminated within the district in a manner to be determined under
  rules adopted by the commissioner.
         (d)  The report must also include a comparison provided by
  the agency of:
               (1)  the performance of each campus to its previous
  performance and to state-established standards;
               (2)  the performance of each school district to its
  previous performance and to state-established standards; and
               (3)  the performance of each campus or district to
  comparable campus group or district performance.
         (e)  The report may include the following information:
               (1)  student information, including total enrollment,
  enrollment by ethnicity, socioeconomic status, and grade groupings
  and retention rates;
               (2)  financial information, including revenues and
  expenditures;
               (3)  staff information, including number and type of
  staff by sex, ethnicity, years of experience, and highest degree
  held, teacher and administrator salaries, and teacher turnover;
               (4)  program information, including student enrollment
  by program, teachers by program, and instructional operating
  expenditures by program; and
               (5)  the number of students placed in a disciplinary
  alternative education program under Chapter 37.
         (f)  The State Board of Education by rule shall authorize the
  combination of this report with other reports and financial
  statements and shall restrict the number and length of reports that
  school districts, district employees, and school campuses are
  required to prepare.
         (g)  The report must include a statement of the amount, if
  any, of the school district's unencumbered surplus fund balance as
  of the last day of the preceding fiscal year and the percentage of
  the preceding year's budget that the surplus represents.
         Sec. 39.307.  USES OF PERFORMANCE REPORT. The information
  required to be reported under Section 39.306 shall be:
               (1)  the subject of public hearings or meetings
  required under Sections 11.252, 11.253, and 39.306;
               (2)  a primary consideration in school district and
  campus planning; and
               (3)  a primary consideration of:
                     (A)  the State Board of Education in the
  evaluation of the performance of the commissioner;
                     (B)  the commissioner in the evaluation of the
  performance of the directors of the regional education service
  centers;
                     (C)  the board of trustees of a school district in
  the evaluation of the performance of the superintendent of the
  district; and
                     (D)  the superintendent in the evaluation of the
  performance of the district's campus principals.
         Sec. 39.308.  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, require on-site
  monitoring of dropout records.
         (b)  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 section.
         (c)  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.
         (d)  The commissioner shall notify the 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.
         (e)  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 58.  Subchapter H, Chapter 39, Education Code, is
  redesignated as Subchapter K, Chapter 39, Education Code, and the
  sections in the redesignated subchapter, Sections 39.181, 39.182,
  39.183, 39.184, and 39.185, are redesignated as Sections 39.331,
  39.332, 39.333, 39.334, and 39.335, Education Code, respectively.
         SECTION 59.  Section 39.182, Education Code, redesignated by
  this Act as Section 39.332, Education Code, is amended to read as
  follows:
         Sec. 39.332 [39.182].  COMPREHENSIVE ANNUAL REPORT.
  (a)  Not later than December 1 of each year, the agency shall
  prepare and deliver to the governor, the lieutenant governor, the
  speaker of the house of representatives, each member of the
  legislature, the Legislative Budget Board, and the clerks of the
  standing committees of the senate and house of representatives with
  primary jurisdiction over the public school system a comprehensive
  report covering the preceding school year and containing the
  information described by Subsection (b).
         (b)  [:] (1)  The report must contain an evaluation of the
  achievements of the state educational program in relation to the
  statutory goals for the public education system under Section
  4.002.[;]
               (2)  The report must contain an evaluation of the
  status of education in the state as reflected by:
                     (A)  the student achievement [academic
  excellence] indicators described by [adopted under] Section 39.053
  [39.051]; and
                     (B)  the reporting indicators described by
  Section 39.301.
               (3)  The report must contain a summary compilation of
  overall student performance on academic skills assessment
  instruments required by Section 39.023 with the number and
  percentage of students exempted from the administration of those
  instruments and the basis of the exemptions, aggregated by grade
  level, subject area, campus, and district, with appropriate
  interpretations and analysis, and disaggregated by race,
  ethnicity, gender, and socioeconomic status.[;]
               (4)  The report must contain a summary compilation of
  overall performance of students placed in a disciplinary
  alternative education program established under Section 37.008 on
  academic skills assessment instruments required by Section 39.023
  with the number of those students exempted from the administration
  of those instruments and the basis of the exemptions, aggregated by
  district, grade level, and subject area, with appropriate
  interpretations and analysis, and disaggregated by race,
  ethnicity, gender, and socioeconomic status.[;]
               (5)  The report must contain a summary compilation of
  overall performance of students at risk of dropping out of school,
  as defined by Section 29.081(d), on academic skills assessment
  instruments required by Section 39.023 with the number of those
  students exempted from the administration of those instruments and
  the basis of the exemptions, aggregated by district, grade level,
  and subject area, with appropriate interpretations and analysis,
  and disaggregated by race, ethnicity, gender, and socioeconomic
  status.[;]
               (6)  The report must contain an evaluation of the
  correlation between student grades and student performance on
  academic skills assessment instruments required by Section
  39.023.[;]
               (7)  The report must contain a statement of the dropout
  rate of students in grade levels 7 through 12, expressed in the
  aggregate and by grade level, and a statement of the completion
  rates of students for grade levels 9 through 12.[;]
               (8)  The report must contain a statement of:
                     (A)  the completion rate of students who enter
  grade level 9 and graduate not more than four years later;
                     (B)  the completion rate of students who enter
  grade level 9 and graduate, including students who require more
  than four years to graduate;
                     (C)  the completion rate of students who enter
  grade level 9 and not more than four years later receive a high
  school equivalency certificate;
                     (D)  the completion rate of students who enter
  grade level 9 and receive a high school equivalency certificate,
  including students who require more than four years to receive a
  certificate; and
                     (E)  the number and percentage of all students who
  have not been accounted for under Paragraph (A), (B), (C), or
  (D).[;]
               (9)  The report must contain a statement of the
  projected cross-sectional and longitudinal dropout rates for grade
  levels 9 through 12 for the next five years, assuming no state
  action is taken to reduce the dropout rate.[;]
               (10)  The report must contain a description of a
  systematic, measurable plan for reducing the projected
  cross-sectional and longitudinal dropout rates to five percent or
  less for the 1997-1998 school year.[;]
               (11)  The report must contain a summary of the
  information required by Section 29.083 regarding grade level
  retention of students and information concerning:
                     (A)  the number and percentage of students
  retained; and
                     (B)  the performance of retained students on
  assessment instruments required under Section 39.023(a).[;]
               (12)  The report must contain information, aggregated
  by district type and disaggregated by race, ethnicity, gender, and
  socioeconomic status, on:
                     (A)  the number of students placed in a
  disciplinary alternative education program established under
  Section 37.008;
                     (B)  the average length of a student's placement
  in a disciplinary alternative education program established under
  Section 37.008;
                     (C)  the academic performance of students on
  assessment instruments required under Section 39.023(a) during the
  year preceding and during the year following placement in a
  disciplinary alternative education program; and
                     (D)  the dropout rates of students who have been
  placed in a disciplinary alternative education program established
  under Section 37.008.[;]
               (13)  The report must contain a list of each school
  district or campus that does not satisfy performance standards,
  with an explanation of the actions taken by the commissioner to
  improve student performance in the district or campus and an
  evaluation of the results of those actions.[;]
               (14)  The report must contain an evaluation of the
  status of the curriculum taught in public schools, with
  recommendations for legislative changes necessary to improve or
  modify the curriculum required by Section 28.002.[;]
               (15)  The report must contain a description of all
  funds received by and each activity and expenditure of the
  agency.[;]
               (16)  The report must contain a summary and analysis of
  the instructional expenditures ratios and instructional employees
  ratios of school districts computed under Section 44.0071.[;]
               (17)  The report must contain a summary of the effect
  of deregulation, including exemptions and waivers granted under
  Section 7.056 or 39.232. [39.112;]
               (18)  The report must contain a statement of the total
  number and length of reports that school districts and school
  district employees must submit to the agency, identifying which
  reports are required by federal statute or rule, state statute, or
  agency rule, and a summary of the agency's efforts to reduce overall
  reporting requirements.[;]
               (19)  The report must contain a list of each school
  district that is not in compliance with state special education
  requirements, including:
                     (A)  the period for which the district has not
  been in compliance;
                     (B)  the manner in which the agency considered the
  district's failure to comply in determining the district's
  accreditation status; and
                     (C)  an explanation of the actions taken by the
  commissioner to ensure compliance and an evaluation of the results
  of those actions.[;]
               (20)  The report must contain a comparison of the
  performance of open-enrollment charter schools and school
  districts on the student achievement [academic excellence]
  indicators described by Section 39.053(c), the reporting
  indicators described by Section 39.301(c), [specified in Section
  39.051(b)] and the accountability measures adopted under Section
  39.053(i) [39.051(g)], with a separately aggregated comparison of
  the performance of open-enrollment charter schools predominantly
  serving students at risk of dropping out of school, as described 
  [defined] by Section 29.081(d), with the performance of school
  districts.[;]
               (21)  The report must contain a summary of the
  information required by Section 38.0141 regarding student health
  and physical activity from each school district.[;]
               (22)  The report must contain a summary compilation of
  overall student performance under the assessment system developed
  to evaluate the longitudinal academic progress as required by
  Section 39.027(e), disaggregated by bilingual education or special
  language program instructional model, if any.[; and]
               (23)  The report must contain any additional
  information considered important by the commissioner or the State
  Board of Education.
         (c) [(b)]  In reporting the information required by
  Subsection (b)(3) or (4) [(a)(3) or (4)], the agency may separately
  aggregate the performance data of students enrolled in a special
  education program under Subchapter A, Chapter 29.
         (d) [(b-1)]  In reporting the information required by
  Subsections (b)(3), (5), and (7) [(a)(3), (5), and (7)], the agency
  shall separately aggregate the longitudinal performance data of all
  students identified as students of limited English proficiency, as
  defined by Section 29.052, or former students of limited English
  proficiency, disaggregated by bilingual education or special
  language program instructional model, if any, in which the students
  are or were enrolled.
         (e) [(c)]  Each report must contain the most recent data
  available.
         SECTION 60.  Section 39.183, Education Code, redesignated by
  this Act as Section 39.333, Education Code, is amended to read as
  follows:
         Sec. 39.333 [39.183]. REGIONAL AND DISTRICT LEVEL REPORT.
  The agency shall prepare and deliver to the governor, the
  lieutenant governor, the speaker of the house of representatives,
  each member of the legislature, the Legislative Budget Board, and
  the clerks of the standing committees of the senate and house of
  representatives with primary jurisdiction over the public school
  system a regional and district level report covering the preceding
  two school years and containing:
               (1)  a summary of school district compliance with the
  student/teacher ratios and class-size limitations prescribed by
  Sections 25.111 and 25.112, including:
                     (A)  the number of campuses and classes at each
  campus granted an exception from Section 25.112; and
                     (B)  for [the performance rating under Subchapter
  D of] each campus granted an exception from Section 25.112, a
  statement of whether the campus has been awarded a distinction
  designation under Subchapter G or has been identified as a
  low-performing campus under Section 39.102;
               (2)  a summary of the exemptions and waivers granted to
  campuses and school districts under Section 7.056 or 39.232
  [39.112] and a review of the effectiveness of each campus or
  district following deregulation;
               (3)  an evaluation of the performance of the system of
  regional education service centers based on the indicators adopted
  under Section 8.101 and client satisfaction with services provided
  under Subchapter B, Chapter 8;
               (4)  an evaluation of accelerated instruction programs
  offered under Section 28.006, including an assessment of the
  quality of such programs and the performance of students enrolled
  in such programs; and
               (5)  the number of classes at each campus that are
  currently being taught by individuals who are not certified in the
  content areas of their respective classes.
         SECTION 61.  Section 39.185, Education Code, redesignated by
  this Act as Section 39.335, Education Code, is amended to read as
  follows:
         Sec. 39.335 [39.185].  INTERIM REPORT. Not later than
  December 1 of each odd-numbered year, the agency shall prepare and
  deliver to the governor, the lieutenant governor, the speaker of
  the house of representatives, each member of the legislature, the
  Legislative Budget Board, and the clerks of the standing committees
  of the senate and house of representatives with primary
  jurisdiction over the public school system an interim report
  containing, for the previous school year, the information required
  by Section 39.333(2) [39.183(2)].
         SECTION 62.  Subchapter J, Chapter 39, Education Code, is
  redesignated as Subchapter L, Chapter 39, Education Code, and
  amended to read as follows:
  SUBCHAPTER L [J]. NOTICE OF PERFORMANCE
         Sec. 39.361 [39.251].  NOTICE IN STUDENT GRADE REPORT. The
  first written notice of a student's performance that a school
  district gives during a school year as required by Section
  28.022(a)(2) must include [the following information]:
               (1)  a statement of whether the campus at which the
  student is enrolled has been awarded a distinction designation
  under Subchapter G or has been identified as a low-performing
  campus under Section 39.102 [the most recent performance rating of
  the campus at which the student is enrolled, as determined under
  Section 39.072]; and
               (2)  an explanation of the significance of the
  information provided under Subdivision (1) [a definition and
  explanation of each performance rating described by Section
  39.072(a)].
         Sec. 39.362 [39.252].  NOTICE ON DISTRICT WEBSITE. Not
  later than the 10th day after the first day of instruction of each
  school year, a school district that maintains an Internet website
  shall make the following information available to the public on the
  website:
               (1)  the information contained in the most recent
  campus report card for each campus in the district[, as determined]
  under Section 39.305 [39.052];
               (2)  the information contained in the most recent
  performance report for the district[, as determined] under Section
  39.306 [39.053];
               (3)  the most recent accreditation status [performance
  rating] of the district[, as determined] under Section 39.052
  [39.072]; and
               (4)  a definition and explanation of each accreditation
  status under [performance rating described by] Section 39.051,
  based on commissioner rule adopted under that section [39.072(a)].
         SECTION 63.  Subchapter L, Chapter 39, Education Code, is
  redesignated as Subchapter M, Chapter 39, Education Code, and the
  sections in the redesignated subchapter, Sections 39.351, 39.352,
  39.353, 39.354, 39.355, 39.356, 39.357, 39.358, 39.359, 39.360,
  39.361, 39.362, 39.363, 39.364, 39.365, and 39.366, are
  redesignated as Sections 39.401, 39.402, 39.403, 39.404, 39.405,
  39.406, 39.407, 39.408, 39.409, 39.410, 39.411, 39.412, 39.413,
  39.414, 39.415, and 39.416, Education Code, respectively.
         SECTION 64.  Section 39.353, Education Code, redesignated by
  this Act as Section 39.403, Education Code, is amended to read as
  follows:
         Sec. 39.403 [39.353].  TERMS.  Members of the council
  appointed under Section 39.402(b)(3) [39.352(b)(3)] serve terms of
  two years and may be reappointed for additional terms.
         SECTION 65.  Section 39.365(b), Education Code,
  redesignated by this Act as Section 39.415(b), Education Code, is
  amended to read as follows:
         (b)  Not later than March 1 and September 1 of each year, the
  commissioner of education shall prepare and deliver a progress
  report to the presiding officers of the standing committees of each
  house of the legislature with primary jurisdiction over public
  education, the Legislative Budget Board, and the Governor's Office
  of Policy and Planning on:
               (1)  the implementation of Sections 7.031, 21.4511,
  21.4541, 21.462, 28.008(d-1), 28.0212(d), 29.095-29.098, 29.911,
  29.917-29.919, and 39.235 [39.115] and this subchapter;
               (2)  the programs supported by grants approved under
  this subchapter; and
               (3)  the alignment of grants and programs to the
  strategic plan adopted under Section 39.407 [39.357].
         SECTION 66.  Section 51.3062, Education Code, is amended by
  adding Subsection (q-1) to read as follows:
         (q-1)  A student who has completed a Texas Diploma or
  advanced high school program as determined under Section 28.025 and
  demonstrated the performance standard for college readiness as
  provided by Section 39.024 on the Algebra II and English III
  end-of-course assessment instruments is exempt from the
  requirements of this section with respect to those content areas.
  The commissioner of higher education by rule shall establish the
  period for which an exemption under this subsection is valid.
         SECTION 67.  Sections 51.803(a), (b), and (d), Education
  Code, are amended to read as follows:
         (a)  Each general academic teaching institution shall admit
  an applicant for admission to the institution as an undergraduate
  student if the applicant graduated with a grade point average in the
  top 10 percent of the student's high school graduating class in one
  of the two school years preceding the academic year for which the
  applicant is applying for admission and:
               (1)  the applicant graduated from a public or private
  high school in this state accredited by a generally recognized
  accrediting organization or from a high school operated by the
  United States Department of Defense;
               (2)  the applicant:
                     (A)  successfully completed:
                           (i)  at a public high school, the curriculum
  requirements established under Section 28.025 for the Texas Diploma
  [recommended] or advanced high school program; or
                           (ii)  at a high school to which Section
  28.025 does not apply, a curriculum that is equivalent in content
  and rigor to the Texas Diploma [recommended] or advanced high
  school program; or
                     (B)  satisfied ACT's College Readiness Benchmarks
  on the ACT assessment applicable to the applicant or earned on the
  SAT assessment a score of at least 1,500 out of 2,400 or the
  equivalent; and
               (3)  if the applicant graduated from a high school
  operated by the United States Department of Defense, the applicant
  is a Texas resident under Section 54.052 or is entitled to pay
  tuition fees at the rate provided for Texas residents under Section
  54.058(d) for the term or semester to which admitted.
         (b)  An applicant who does not satisfy the curriculum
  requirements prescribed by Subsection (a)(2)(A)(i) or (ii) is
  considered to have satisfied those requirements if the student
  completed the portion of the Texas Diploma [recommended] or
  advanced curriculum or of the curriculum equivalent in content and
  rigor, as applicable, that was available to the student but was
  unable to complete the remainder of the curriculum solely because
  courses necessary to complete the remainder were unavailable to the
  student at the appropriate times in the student's high school
  career as a result of course scheduling, lack of enrollment
  capacity, or another cause not within the student's control.
         (d)  For purposes of Subsection (c)(2), a student's official
  transcript or diploma must, not later than the end of the student's
  junior year, indicate:
               (1)  whether the student has satisfied or is on
  schedule to satisfy the requirements of Subsection (a)(2)(A)(i) or
  (ii), as applicable; or
               (2)  if Subsection (b) applies to the student, whether
  the student has completed the portion of the Texas Diploma
  [recommended] or advanced curriculum or of the curriculum
  equivalent in content and rigor, as applicable, that was available
  to the student.
         SECTION 68.  Section 51.807, Education Code, as amended by
  Chapters 941 (H.B. 3826) and 1369 (H.B. 3851), Acts of the 80th
  Legislature, Regular Session, 2007, is reenacted and amended to
  read as follows:
         Sec. 51.807.  RULEMAKING.  (a)  To ensure a uniform standard
  for admissions under this subchapter, the Texas Higher Education
  Coordinating Board shall adopt rules establishing a standard method
  for computing a student's high school grade point average. The
  method established under this subsection:
               (1)  must:
                     (A)  be based on a four-point scale; and
                     (B)  assign additional weight for each honors
  course, advanced placement course, international baccalaureate
  course, or dual credit course completed by the student as the board
  considers appropriate, taking into consideration the academic
  rigor of each course completed by the student; and
               (2)  may result in a student having a grade point
  average higher than 4.0 on a four-point scale as a result of the
  assignment of additional weight for one or more courses completed
  by a student under Subdivision (1)(B).
         (b)  The Texas Higher Education Coordinating Board, after
  consulting with the Texas Education Agency, by rule shall establish
  standards for determining for purposes of this subchapter:
               (1)  whether a private high school is accredited by a
  generally recognized accrediting organization; and
               (2)  whether a person completed a high school
  curriculum that is equivalent in content and rigor to the
  curriculum requirements established under Section 28.025 for the
  Texas Diploma [recommended] or advanced high school program.
         (c)  The board may adopt other rules relating to the
  operation of admissions programs under this subchapter, including
  rules relating to the identification of eligible students.
         (d)  The standard method established under Subsection (a)
  for computing a student's high school grade point average applies
  to computing the grade point average of a student applying as a
  first-time freshman for admission to a general academic teaching
  institution beginning with admissions for the 2009 fall semester.
  This subsection expires January 1, 2010.
         SECTION 69.  Sections 56.203(a) and (d), Education Code, are
  amended to read as follows:
         (a)  To be eligible for an award through the Early High
  School Graduation Scholarship program, a person must:
               (1)  have graduated from a public high school in this
  state:
                     (A)  in not more than 41 consecutive months and
  successfully completed the Texas Diploma [recommended] or advanced
  high school program established under Section 28.025, if the person
  graduated on or after September 1, 2005;
                     (B)  in not more than 46 consecutive months, with
  at least 30 hours of college credit, and successfully completed the
  Texas Diploma [recommended] or advanced high school program
  established under Section 28.025, if the person graduated on or
  after September 1, 2005; or
                     (C)  in not more than 36 consecutive months after
  successfully completing the requirements for a high school diploma,
  if the person graduated before September 1, 2005, regardless of
  whether the person successfully completed the Texas Diploma
  [recommended] or advanced high school program established under
  Section 28.025;
               (2)  have attended one or more public high schools in
  this state for the majority of time the person attended high school;
  and
               (3)  be a citizen of the United States or otherwise
  lawfully authorized to be present in the United States.
         (d)  A person who does not satisfy the curriculum
  requirements for the Texas Diploma [recommended] or advanced high
  school program as required to establish eligibility under
  Subsection (a)(1)(A) or (B) is considered to have satisfied those
  requirements if the high school from which the person graduated
  indicates on the person's transcript that the person was unable to
  complete the appropriate curriculum within the time prescribed by
  that subsection solely because of a reason beyond the person's
  control, such as lack of enrollment capacity or a shortage of
  qualified teachers.
         SECTION 70.  Section 56.204(a), Education Code, is amended
  to read as follows:
         (a)  An eligible person under the Early High School
  Graduation Scholarship program is entitled to a state credit to
  apply toward tuition or tuition and mandatory fees, as applicable,
  at a public or private institution of higher education in this state
  in the following amounts:
               (1)  $2,000 to apply toward tuition and mandatory fees
  if the person successfully completed the Texas Diploma
  [recommended] or advanced high school program established under
  Section 28.025 and graduated from high school on or after September
  1, 2005, in 36 consecutive months or less and an additional $1,000
  to apply toward tuition and mandatory fees if the person graduated
  with at least 15 hours of college credit;
               (2)  $500 to apply toward tuition and mandatory fees if
  the person successfully completed the Texas Diploma [recommended]
  or advanced high school program established under Section 28.025
  and graduated from high school on or after September 1, 2005, in
  more than 36 consecutive months but not more than 41 consecutive
  months and an additional $1,000 to apply toward tuition and
  mandatory fees if the person graduated with at least 30 hours of
  college credit;
               (3)  $1,000 to apply toward tuition and mandatory fees
  if the person successfully completed the Texas Diploma
  [recommended] or advanced high school program established under
  Section 28.025 and graduated from high school on or after September
  1, 2005, in more than 41 consecutive months but not more than 45
  consecutive months with at least 30 hours of college credit; or
               (4)  $1,000 to apply only toward tuition if the person
  graduated before September 1, 2005, after successfully completing
  the requirements for a high school diploma in not more than 36
  consecutive months.
         SECTION 71.  Section 56.210(b), Education Code, is amended
  to read as follows:
         (b)  The information provided under Subsection (a) must
  include:
               (1)  the number and type of high school course credits
  necessary to satisfy the eligibility requirements for the Early
  High School Graduation Scholarship program; and
               (2)  the appropriate order in which those high school
  course credits must be earned to satisfy the eligibility
  requirements, including course credits related to the curriculum
  for the Texas Diploma [recommended] or advanced high school
  program.
         SECTION 72.  Sections 56.304(a), (f), and (g), Education
  Code, are amended to read as follows:
         (a)  To be eligible initially for a TEXAS grant, a person
  must:
               (1)  be a resident of this state as determined by
  coordinating board rules;
               (2)  meet either of the following academic
  requirements:
                     (A)  be a graduate of a public or accredited
  private high school in this state who graduated not earlier than the
  1998-1999 school year and who completed the Texas Diploma
  [recommended] or advanced high school program [curriculum]
  established under Section [28.002 or] 28.025 or its equivalent; or
                     (B)  have received an associate degree from a
  public or private institution of higher education not earlier than
  May 1, 2001;
               (3)  meet financial need requirements as defined by the
  coordinating board;
               (4)  be enrolled in an undergraduate degree or
  certificate program at an eligible institution;
               (5)  be enrolled as:
                     (A)  an entering undergraduate student for at
  least three-fourths of a full course load for an entering
  undergraduate student, as determined by the coordinating board, not
  later than the 16th month after the date of the person's graduation
  from high school; or
                     (B)  an entering student for at least
  three-fourths of a full course load for an undergraduate student as
  determined by the coordinating board, not later than the 12th month
  after the month the person receives an associate degree from a
  public or private institution of higher education;
               (6)  have applied for any available financial aid or
  assistance; and
               (7)  comply with any additional nonacademic
  requirement adopted by the coordinating board under this
  subchapter.
         (f)  The requirement in Subsection (a)(2) that a person must
  have completed the Texas Diploma [recommended] or advanced high
  school program [curriculum] does not apply to a person who:
               (1)  attended a public high school in a school district
  if that district certifies to the commissioner of education that
  the high school did not offer all the necessary courses for a person
  to complete all parts of the Texas Diploma [recommended] or
  advanced high school program [curriculum]; and
               (2)  completed all courses at the high school offered
  toward the completion of the Texas Diploma [recommended] or
  advanced high school program [curriculum].
         (g)  Not later than March 1 of each year, the commissioner of
  education shall provide to the coordinating board a list of all the
  public high schools that do not offer all the courses necessary to
  complete all parts of the Texas Diploma [recommended] or advanced
  high school program [curriculum] as described by Subsection (f)(1).
         SECTION 73.  The heading to Section 56.3041, Education Code,
  is amended to read as follows:
         Sec. 56.3041.  INITIAL ELIGIBILITY OF PERSON ON TRACK TO
  COMPLETE TEXAS DIPLOMA [RECOMMENDED] OR ADVANCED PROGRAM 
  [CURRICULUM].
         SECTION 74.  Sections 56.3041(a) and (b), Education Code,
  are amended to read as follows:
         (a)  If at the time an eligible institution awards TEXAS
  grants to initial recipients for an academic year an applicant has
  not completed high school or the applicant's final high school
  transcript is not yet available to the institution, the student is
  considered to have satisfied the requirements of Section
  56.304(a)(2)(A) if the student's available high school transcript
  indicates that at the time the transcript was prepared the student
  was on schedule to graduate from high school and to complete the
  Texas Diploma [recommended] or advanced high school program 
  [curriculum] or its equivalent, as applicable to the student, in
  time to be eligible for a TEXAS grant for the academic year.
         (b)  The coordinating board or the eligible institution may
  require the student to forgo or repay the amount of an initial TEXAS
  grant awarded to the student as described by Subsection (a) if the
  student fails to complete the Texas Diploma [recommended] or
  advanced high school program [curriculum] or its equivalent after
  the issuance of the available high school transcript.
         SECTION 75.  Section 56.308(b), Education Code, is amended
  to read as follows:
         (b)  Each school district shall:
               (1)  notify its middle school students, junior high
  school students, and high school students, those students' teachers
  and counselors, and those students' parents of the TEXAS grant and
  Teach for Texas grant programs, the eligibility requirements of
  each program, the need for students to make informed curriculum
  choices to be prepared for success beyond high school, and sources
  of information on higher education admissions and financial aid in
  a manner that assists the district in implementing a strategy
  adopted by the district under Section 11.252(a)(4); and
               (2)  ensure that each student's official transcript or
  diploma indicates whether the student has completed or is on
  schedule to complete:
                     (A)  the Texas Diploma [recommended] or advanced
  high school program [curriculum] required for grant eligibility
  under Section [28.002 or] 28.025; or
                     (B)  for a school district covered by Section
  56.304(f)(1), the required portion of the Texas Diploma
  [recommended] or advanced high school program [curriculum] in the
  manner described by Section 56.304(f)(2).
         SECTION 76.  Section 56.455, Education Code, is amended to
  read as follows:
         Sec. 56.455.  INITIAL ELIGIBILITY FOR LOAN.  To be eligible
  initially for a Texas B-On-time loan, a person must:
               (1)  be a resident of this state under Section 54.052 or
  be entitled, as a child of a member of the armed forces of the United
  States, to pay tuition at the rate provided for residents of this
  state under Section 54.058;
               (2)  meet one of the following academic requirements:
                     (A)  be a graduate of a public or private high
  school in this state who graduated not earlier than the 2002-2003
  school year under the Texas Diploma [recommended] or advanced high
  school program established under Section 28.025(a) or its
  equivalent;
                     (B)  be a graduate of a high school operated by the
  United States Department of Defense who:
                           (i)  graduated from that school not earlier
  than the 2002-2003 school year; and
                           (ii)  at the time of graduation from that
  school was a dependent child of a member of the armed forces of the
  United States; or
                     (C)  have received an associate degree from an
  eligible institution not earlier than May 1, 2005;
               (3)  be enrolled for a full course load for an
  undergraduate student, as determined by the coordinating board, in
  an undergraduate degree or certificate program at an eligible
  institution;
               (4)  be eligible for federal financial aid, except that
  a person is not required to meet any financial need requirement
  applicable to a particular federal financial aid program; and
               (5)  comply with any additional nonacademic
  requirement adopted by the coordinating board under this
  subchapter.
         SECTION 77.  Section 61.792(b), Education Code, is amended
  to read as follows:
         (b)  To qualify for a scholarship under this section, a
  student must:
               (1)  have graduated with a grade point average in the
  top 20 percent of the student's high school graduating class;
               (2)  have graduated from high school with a grade point
  average of at least 3.5 on a four-point scale or the equivalent in
  mathematics and science courses offered under the Texas Diploma
  [recommended] or advanced high school program under Section
  28.025(a); and
               (3)  maintain an overall grade point average of at
  least 3.0 on a four-point scale at the general academic teaching
  institution in which the student is enrolled.
         SECTION 78.  Section 61.852(a), Education Code, is amended
  to read as follows:
         (a)  A tech-prep program is a program of study that:
               (1)  combines at least two years of secondary education
  with at least two years of postsecondary education in a
  nonduplicative, sequential course of study based on the Texas
  Diploma [recommended] high school program adopted by the State
  Board of Education under Section 28.025(a);
               (2)  integrates academic instruction and vocational
  and technical instruction;
               (3)  uses work-based and worksite learning where
  available and appropriate;
               (4)  provides technical preparation in a career field
  such as engineering technology, applied science, a mechanical,
  industrial, or practical art or trade, agriculture, health
  occupations, business, or applied economics;
               (5)  builds student competence in mathematics,
  science, reading, writing, communications, economics, and
  workplace skills through applied, contextual academics and
  integrated instruction in a coherent sequence of courses;
               (6)  leads to an associate degree, two-year
  postsecondary certificate, or postsecondary two-year
  apprenticeship with provisions, to the extent applicable, for
  students to continue toward completion of a baccalaureate degree;
  and
               (7)  leads to placement in appropriate employment or to
  further education.
         SECTION 79.  Section 61.855(d), Education Code, is amended
  to read as follows:
         (d)  A tech-prep program must:
               (1)  be implemented under an articulation agreement
  between the participants in the consortium;
               (2)  consist of two to four years of secondary school
  preceding graduation and:
                     (A)  two or more years of higher education; or
                     (B)  two or more years of apprenticeship following
  secondary instruction;
               (3)  have a common core of required proficiency based
  on the Texas Diploma [recommended] high school program adopted by
  the State Board of Education under Section 28.025(a), with
  proficiencies in mathematics, science, reading, writing,
  communications, and technologies designed to lead to an associate's
  degree or postsecondary certificate in a specific career field;
               (4)  include the development of tech-prep program
  curricula for both secondary and postsecondary participants in the
  consortium that:
                     (A)  meets academic standards developed by the
  state;
                     (B)  links secondary schools and two-year
  postsecondary institutions, and, if practicable, four-year
  institutions of higher education through nonduplicative sequences
  of courses in career fields, including the investigation of
  opportunities for tech-prep students to enroll concurrently in
  secondary and postsecondary course work;
                     (C)  uses, if appropriate and available,
  work-based or worksite learning in conjunction with business and
  all aspects of an industry; and
                     (D)  uses educational technology and distance
  learning, as appropriate, to involve each consortium participant
  more fully in the development and operation of programs;
               (5)  include in-service training for teachers that:
                     (A)  is designed to train vocational and technical
  teachers to effectively implement tech-prep programs;
                     (B)  provides for joint training for teachers in
  the tech-prep consortium;
                     (C)  is designed to ensure that teachers and
  administrators stay current with the needs, expectations, and
  methods of business and of all aspects of an industry;
                     (D)  focuses on training postsecondary education
  faculty in the use of contextual and applied curricula and
  instruction; and
                     (E)  provides training in the use and application
  of technology;
               (6)  include training programs for counselors designed
  to enable counselors to more effectively:
                     (A)  provide information to students regarding
  tech-prep programs;
                     (B)  support student progress in completing
  tech-prep programs;
                     (C)  provide information on related employment
  opportunities;
                     (D)  ensure that tech-prep students are placed in
  appropriate employment; and
                     (E)  stay current with the needs, expectations,
  and methods of business and of all aspects of an industry;
               (7)  provide equal access to the full range of
  tech-prep programs for individuals who are members of special
  populations, including by the development of tech-prep program
  services appropriate to the needs of special populations; and
               (8)  provide for preparatory services that assist
  participants in tech-prep programs.
         SECTION 80.  Chapter 61, Education Code, is amended by
  adding Subchapter T-1 to read as follows:
  SUBCHAPTER T-1. CAREER AND TECHNICAL EDUCATION
         Sec. 61.861.  DEVELOPMENT OF MATHEMATICS AND SCIENCE COURSES
  FOR HIGH-DEMAND OCCUPATIONS. (a) The commissioner of higher
  education, in consultation with the comptroller and the Texas
  Workforce Commission, may award a grant in an amount not to exceed
  $1 million to an institution of higher education to develop
  advanced mathematics and science courses to prepare high school
  students for employment in a high-demand occupation.  The
  commissioner of higher education, the comptroller, and the Texas
  Workforce Commission shall jointly determine what is considered a
  high-demand occupation for purposes of this subchapter.
         (b)  An institution of higher education shall work in
  partnership with at least one independent school district and a
  business entity in developing a course for purposes of this
  section.
         (c)  A course developed for purposes of this section must:
               (1)  provide content that enables a student to develop
  the relevant and critical skills needed to be prepared for
  employment or additional training in a high-demand occupation;
               (2)  incorporate college and career readiness skills as
  part of the curriculum;
               (3)  be offered for dual credit; and
               (4)  satisfy a mathematics or science requirement under
  the Texas Diploma or advanced high school program as determined
  under Section 28.025.
         (d)  An institution of higher education shall periodically
  review and revise the curriculum for a course developed for
  purposes of this section to accommodate changes in industry
  standards for the high-demand occupation.
         Sec. 61.862.  GRANT APPLICATION CRITERIA.  The commissioner
  of higher education, in consultation with the comptroller and the
  Texas Workforce Commission, shall establish application criteria
  for a grant under this subchapter and in making an award, shall give
  priority to courses that:
               (1)  will prepare students for high-demand, high-wage,
  and high-skill occupations;
               (2)  may be transferred as college credit to multiple
  institutions of higher education; and
               (3)  are developed as part of a sequence of courses that
  includes statewide availability of the instructional materials and
  training for the courses at a nominal cost to public educational
  institutions in this state.
         Sec. 61.863.  USE OF FUNDS.  An institution of higher
  education may use funds awarded under this section to develop, in
  connection with a course described by Subsection (a):
               (1)  curriculum;
               (2)  assessments; or
               (3)  instructional materials, including
  technology-based supplemental materials.
         Sec. 61.864.  REVIEW OF COURSES.  Courses developed for
  which a grant is awarded under this subchapter shall be reviewed by
  the commissioner of higher education, in consultation with the
  comptroller and the Texas Workforce Commission, once every four
  years to determine whether the course:
               (1)  is being used by public educational institutions
  in this state; and
               (2)  prepares high school students with the skills
  necessary for employment in the high-demand occupation.
         Sec. 61.865.  MATCHING CONTRIBUTION REQUIRED.  An
  institution of higher education awarded a grant under this
  subchapter must obtain from one or more business entities in the
  industry for which students taking courses developed under Section
  61.861 are training, in a total amount equal to the amount of the
  state grant:
               (1)  gifts, grants, or donations of funds; or
               (2)  contributions of property that may be used in
  providing the courses.
         Sec. 61.866.  LIMITATION ON TOTAL AMOUNT OF GRANTS.  In any
  state fiscal biennium, the total amount of grants awarded under
  this subchapter may not exceed $10 million.
         Sec. 61.867.  FUNDING OF GRANTS.  The commissioner of higher
  education shall administer this section using available
  appropriations and gifts, grants, and donations made for the
  purposes of this subchapter.
         SECTION 81.  Sections 39.034(e), (f), and (g), Education
  Code, are repealed.
         SECTION 82.  A reference in law to the minimum high school
  program means the basic high school program.  A reference in law to
  the recommended high school program means the Texas Diploma high
  school program.
         SECTION 83.  This Act applies beginning with the 2009-2010
  school year.
         SECTION 84.  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, 2009.