82S10126 VOO-D
	By: Eissler	H.B. No. 8

	A BILL TO BE ENTITLED
	AN ACT
	relating to flexibility for public schools to administer primary
	and secondary education efficiently.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Sections 12.133(b), (b-1), (c), and (d-1),
	Education Code, are amended to read as follows:
	(b)  Each school year, using state funds received by the
	charter holder for that purpose under Subsection (d), a charter
	holder that participated in the program under Chapter 1579,
	Insurance Code, for the 2005-2006 school year shall provide
	employees of the charter holder, other than administrators,
	compensation in the form of annual salaries, incentives, or other
	compensation determined appropriate by the charter holder that
	results in an average compensation increase for classroom teachers,
	full-time librarians, full-time counselors, and full-time school
	nurses who are employed by the charter holder [and who would be
	entitled to a minimum salary under Section 21.402 if employed by a
	school district,] in an amount at least equal to $2,500.
	(b-1)  Using state funds received by the charter holder for
	that purpose under Subsection (d-1), a charter holder that
	participated in the program under Chapter 1579, Insurance Code, for
	the 2005-2006 school year shall provide employees of the charter
	holder, other than administrators, compensation in the form of
	annual salaries, incentives, or other compensation determined
	appropriate by the charter holder that results in average
	compensation increases as follows:
	(1)  for full-time employees other than full-time
	classroom teachers, full-time librarians, full-time counselors,
	and full-time nurses [employees who would be entitled to a minimum
	salary under Section 21.402 if employed by a school district], an
	average increase at least equal to $500; and
	(2)  for part-time employees, an average increase at
	least equal to $250.
	(c)  Each school year, using state funds received by the
	charter holder for that purpose under Subsection (e), a charter
	holder that did not participate in the program under Chapter 1579,
	Insurance Code, for the 2005-2006 school year shall provide
	employees of the charter holder, other than administrators,
	compensation in the form of annual salaries, incentives, or other
	compensation determined appropriate by the charter holder that
	results in an average compensation increase for classroom teachers,
	full-time librarians, full-time counselors, and full-time school
	nurses who are employed by the charter holder [and who would be
	entitled to a minimum salary under Section 21.402 if employed by a
	school district,] in an amount at least equal to $2,000.
	(d-1)  In addition to any amounts to which a charter holder
	is entitled under this chapter, a charter holder that participated
	in the program under Chapter 1579, Insurance Code, for the
	2005-2006 school year is entitled to state aid in an amount, as
	determined by the commissioner, equal to the sum of:
	(1)  the product of $500 multiplied by the number of
	full-time employees other than full-time classroom teachers,
	full-time librarians, full-time counselors, and full-time nurses
	[employees who would be entitled to a minimum salary under Section
	21.402 if employed by a school district]; and
	(2)  the product of $250 multiplied by the number of
	part-time employees.
	SECTION 2.  Section 19.007(f), Education Code, is amended to
	read as follows:
	(f)  In addition to other amounts received by the district
	under this section, the district is entitled to state aid in an
	amount equal to the product of $2,000 multiplied by the number of
	classroom teachers, full-time librarians, full-time counselors
	certified under Subchapter B, Chapter 21, and full-time school
	nurses who are employed by the district [and who would be entitled
	to a minimum salary under Section 21.402 if employed by a school
	district operating under Chapter 11].
	SECTION 3.  Section 19.009(d-1), Education Code, is amended
	to read as follows:
	(d-1)  Each school year, the district shall pay an amount at
	least equal to $2,000 to each classroom teacher, full-time
	librarian, full-time counselor certified under Subchapter B,
	Chapter 21, and full-time school nurse who is employed by the
	district [and who would be entitled to a minimum salary under
	Section 21.402 if employed by a school district operating under
	Chapter 11]. A payment under this section is in addition to wages
	the district would otherwise pay the employee during the school
	year.
	SECTION 4.  Section 21.0031(b), Education Code, is amended
	to read as follows:
	(b)  After an employee receives notice that the employee's
	contract is void under Subsection (a),[:
	[(1)]  a school district may:
	(1) [(A)]  terminate the employee;
	(2) [(B)]  suspend the employee with or without pay; or
	(3) [(C)]  retain the employee for the remainder of the
	school year on an at-will employment basis in a position other than
	classroom teacher at the employee's existing rate of pay or at a
	reduced rate[; and
	[(2)     the employee is not entitled to the minimum
	salary prescribed by Section 21.402].
	SECTION 5.  Section 21.103(a), Education Code, is amended to
	read as follows:
	(a)  The board of trustees of a school district may terminate
	the employment of a teacher employed under a probationary contract
	at the end of the contract period if in the board's judgment the
	best interests of the district will be served by terminating the
	employment. The board of trustees must give notice of its decision
	to terminate the employment to the teacher not later than the 15th
	[45th] day before the last day of instruction required under the
	contract.  The notice must be delivered personally to the teacher or
	mailed by prepaid certified mail to the teacher's address of record
	with the district. Notice that is mailed in accordance with this
	subsection is considered given at the time of mailing.  The board's
	decision is final and may not be appealed.
	SECTION 6.  Subchapter C, Chapter 21, Education Code, is
	amended by adding Section 21.1041 to read as follows:
	Sec. 21.1041.  HEARING UNDER PROBATIONARY CONTRACT. A
	teacher is entitled to:
	(1)  a hearing as provided by Subchapter F, if the
	teacher is protesting proposed action under Section 21.104; or
	(2)  a hearing in a manner provided under Section
	21.207 for nonrenewal of a term contract or a hearing provided by
	Subchapter F, as determined by the board of trustees of the
	district, if the teacher is protesting proposed action to terminate
	a probationary contract before the end of the contract period on the
	basis of a financial exigency declared under Section 44.011 that
	requires a reduction in personnel.
	SECTION 7.  Section 21.157, Education Code, is amended to
	read as follows:
	Sec. 21.157.  NECESSARY REDUCTION OF PERSONNEL. A teacher
	employed under a continuing contract may be released at the end of a
	school year and the teacher's employment with the school district
	terminated at that time because of a necessary reduction of
	personnel by the school district[, with those reductions made in
	the reverse order of seniority in the specific teaching fields].
	SECTION 8.  Section 21.159(b), Education Code, is amended to
	read as follows:
	(b)  A teacher who notifies the board of trustees within the
	time prescribed by Subsection (a) is entitled to:
	(1)  a hearing as provided by Subchapter F, if the
	teacher is protesting proposed action under Section 21.156; or
	(2)  a hearing in a manner provided under Section
	21.207 for nonrenewal of a term contract or a hearing provided by
	Subchapter F, as determined by the board, if the teacher is
	protesting proposed action under Section 21.157 or proposed action
	to terminate a term contract at any time on the basis of a financial
	exigency declared under Section 44.011 that requires a reduction in
	personnel.
	SECTION 9.  Section 21.206(a), Education Code, is amended to
	read as follows:
	(a)  Not later than the 15th [45th] day before the last day of
	instruction in a school year, the board of trustees shall notify in
	writing each teacher whose contract is about to expire whether the
	board proposes to renew or not renew the contract.  The notice must
	be delivered personally to the teacher or mailed by prepaid
	certified mail to the teacher's address of record with the
	district. Notice that is mailed in accordance with this subsection
	is considered given at the time of mailing.
	SECTION 10.  Section 21.207, Education Code, is amended by
	adding Subsection (b-1) and amending Subsection (c) to read as
	follows:
	(b-1)  The board of trustees may designate an attorney
	licensed to practice law in this state to hold the hearing on behalf
	of the board, to create a hearing record for the board's
	consideration and action, and to recommend an action to the board.
	The attorney serving as the board's designee may not be employed by
	a school district and neither the designee nor a law firm with which
	the designee is associated may be serving as an agent or
	representative of a school district, of a teacher in a dispute
	between a district and a teacher, or of an organization of school
	employees, school administrators, or school boards of trustees.
	Not later than the 15th day after the completion of the hearing
	under this subsection, the board's designee shall provide to the
	board a record of the hearing and the designee's recommendation of
	whether the contract should be renewed or not renewed. The board
	shall consider the record of the hearing and the designee's
	recommendation at the first board meeting for which notice can be
	posted in compliance with Chapter 551, Government Code, following
	the receipt of the record and recommendation from the board's
	designee, unless the parties agree in writing to a different date.
	At the meeting, the board shall consider the hearing record and the
	designee's recommendation and allow each party to present an oral
	argument to the board. The board by written policy may limit the
	amount of time for oral argument. The policy must provide equal time
	for each party. The board may obtain advice concerning legal
	matters from an attorney who has not been involved in the
	proceedings. The board may accept, reject, or modify the designee's
	recommendation. The board shall notify the teacher in writing of
	the board's decision not later than the 15th day after the date of
	the meeting.
	(c)  At the hearing before the board or the board's designee,
	the teacher may:
	(1)  be represented by a representative of the
	teacher's choice;
	(2)  hear the evidence supporting the reason for
	nonrenewal;
	(3)  cross-examine adverse witnesses; and
	(4)  present evidence.
	SECTION 11.  Section 21.211, Education Code, is amended by
	adding Subsection (a-1) to read as follows:
	(a-1)  A teacher whose term contract is terminated under
	Subsection (a)(2) before the end of the contract period may request
	a hearing before the board of trustees or the board's designee as
	provided by Section 21.207 for a hearing on a proposed nonrenewal of
	a contract. A teacher who is aggrieved by a decision of the board or
	the board's designee at a hearing under this subsection may appeal
	to the commissioner for review of the decision in accordance with
	Subchapter G. The commissioner may not substitute the
	commissioner's judgment for that of the board of trustees or the
	board's designee unless the decision of the board or the board's
	designee was not supported by substantial evidence based on the
	record made at the hearing before the board or the board's designee.
	SECTION 12.  Section 21.251, Education Code, is amended to
	read as follows:
	Sec. 21.251.  APPLICABILITY. (a) This subchapter applies
	if a teacher requests a hearing after receiving notice of the
	proposed decision to:
	(1)  terminate the teacher's continuing contract at any
	time, except as provided by Subsection (b)(3);
	(2)  terminate the teacher's probationary or term
	contract before the end of the contract period, except as provided
	by Subsection (b)(3); or
	(3)  suspend the teacher without pay.
	(b)  This subchapter does not apply to:
	(1)  a decision to terminate a teacher's employment at
	the end of a probationary contract; [or]
	(2)  a decision not to renew a teacher's term contract,
	unless the board of trustees of the employing district has decided
	to use the process prescribed by this subchapter for that purpose;
	or
	(3)  a decision, on the basis of a financial exigency
	declared under Section 44.011 that requires a reduction in
	personnel, to terminate a probationary or term contract before the
	end of the contract period or to terminate a continuing contract at
	any time, unless the board of trustees has decided to use the
	process prescribed by this subchapter for that purpose.
	SECTION 13.  Section 21.4031, Education Code, is amended by
	amending Subsections (a) and (c) and adding Subsection (d) to read
	as follows:
	(a)  In this section, "service[:
	[(1)     "Salary schedule" means the minimum salary
	schedule under Section 21.402 or a comparable salary schedule used
	by a school district that specifies salary amounts based on an
	employee's level of experience.
	[(2)  "Service] record" means a school district
	document  that indicates the total years of service provided to the
	district by a classroom teacher, librarian, counselor, or nurse.
	(c)  If a school district fails to provide an individual's
	service record as required by Subsection (b), the agency shall, to
	the extent that information is available to the agency, provide the
	employing school district with the information [sufficient to
	enable the district to determine proper placement of the individual
	on the district's salary schedule].
	(d)  The commissioner shall adopt rules for determining the
	experience as a classroom teacher, librarian, counselor, or nurse
	for a school district for which an individual is to be given credit
	for years of service for purposes of a service record.  Each
	district shall maintain service records in accordance with
	commissioner rules adopted under this subsection.  A district is
	not required to use commissioner rules adopted under this
	subsection in creating a local compensation plan under Section
	21.4032.
	SECTION 14.  Subchapter I, Chapter 21, Education Code, is
	amended by adding Section 21.4032 to read as follows:
	Sec. 21.4032.  LOCAL COMPENSATION PLAN. (a)  Except as
	provided under Subsection (g), a school district shall adopt a
	strategic plan for determining the compensation of the district's
	classroom teachers, full-time librarians, full-time counselors
	certified under Subchapter B, and full-time school nurses.  A
	district's strategic compensation plan must be designed to recruit,
	reward, and retain effective classroom teachers, librarians,
	counselors, and nurses.
	(b)  In developing a plan under Subsection (a), a school
	district shall consider including provisions under which the
	district may analyze any of several factors when determining
	compensation, including, as applicable:
	(1)  demonstrated effectiveness in improving student
	achievement;
	(2)  service as a mentor for other classroom teachers;
	(3)  assumption of responsibilities in addition to
	regular duties;
	(4)  results of performance evaluations;
	(5)  whether a classroom teacher teaches in a subject
	area or position that is an acute shortage area as determined by the
	board of trustees of the district, if the classroom teacher meets
	state and federal qualifications to teach in that subject area or
	position;
	(6)  whether a classroom teacher teaches a greater
	number of students than the average teacher in the district;
	(7)  whether an employee teaches at or is assigned to a
	district school at which, as determined by the board of trustees of
	the district, the district has difficulty hiring or retaining
	classroom teachers or other professional employees; or
	(8)  other job-related duties, as determined by the
	district.
	(c)  A school district must adopt a process to consider input
	from classroom teachers, librarians, counselors, and nurses before
	adoption or revision of a plan under Subsection (a).
	(d)  A plan adopted under Subsection (a) may provide for
	nonfinancial compensation, including flexible scheduling or
	additional leave, and compensation for employees who meet
	campus-wide goals.
	(e)  A plan adopted under Subsection (a) may not consider
	athletic coaching or other athletic performance or achievement in
	determining compensation.  Payment for service as a coach or with
	regard to extracurricular activities must be determined separately
	from the plan.
	(f)  A plan adopted under Subsection (a) may not provide for
	an annual salary of a classroom teacher, full-time librarian,
	full-time counselor certified under Subchapter B, or full-time
	school nurse that is less than the minimum salary prescribed by
	Section 21.4033.
	(g)  A school district that, before the effective date of a
	law requiring adoption of such a plan, adopted a strategic
	compensation plan to recruit, reward, and retain effective
	classroom teachers, librarians, counselors, and nurses is not
	required to adopt a strategic compensation plan under this section.
	SECTION 15.  Subchapter I, Chapter 21, Education Code, is
	amended by adding Section 21.4033 to read as follows:
	Sec. 21.4033.  MINIMUM SALARY FOR CERTAIN PROFESSIONAL
	STAFF. A school district shall pay each district classroom
	teacher, full-time librarian, full-time counselor certified under
	Subchapter B, or full-time school nurse not less than an annual
	salary of $27,320.
	SECTION 16.  Section 21.4551(e), Education Code, is amended
	to read as follows:
	(e)  From funds appropriated for that purpose, a teacher who
	attends a reading academy is entitled to receive a stipend in the
	amount determined by the commissioner. [A stipend received under
	this subsection is not considered in determining whether a district
	is paying the teacher the minimum monthly salary under Section
	21.402.]
	SECTION 17.  Section 22.107(a), Education Code, is amended
	to read as follows:
	(a)  A school district shall pay each full-time district
	employee, other than an administrator or a classroom teacher,
	full-time librarian, full-time counselor certified under
	Subchapter B, Chapter 21, or full-time school nurse [an employee
	subject to the minimum salary schedule under Section 21.402], an
	amount at least equal to $500.
	SECTION 18.  Section 25.112, Education Code, is amended by
	amending Subsection (d) and adding Subsections (d-1) and (e-1) to
	read as follows:
	(d)  On application of a school district, the commissioner
	shall [may] except the district from the limit in Subsection (a),
	except as provided by Subsection (d-1) [if the commissioner finds
	the limit works an undue hardship on the district].  An exception
	expires at the end of the school year for which it is granted.
	(d-1)  The commissioner may not grant an exception to a
	school district under Subsection (d) if the exception would:
	(1)  allow the district to enroll more than 25 students
	in a class at a grade level subject to the limit in Subsection (a);
	(2)  result in the district exceeding a district-wide
	average enrollment of 22 students in classes at grade levels
	subject to the limit under Subsection (a); or
	(3)  negatively affect the education of students
	enrolled in the district or at a district campus, as applicable, as
	determined by the commissioner.
	(e-1)  The board of trustees of a school district may adopt a
	policy authorizing the superintendent of the district to apply on
	behalf of the district, as needed, for an exception under
	Subsection (d).
	SECTION 19.  Section 25.113(a), Education Code, is amended
	to read as follows:
	(a)  A campus or district that is granted an exception under
	Section 25.112(d) from class size limits shall provide written
	notice of the exception to the parent of or person standing in
	parental relation to each student affected by the exception or
	shall post notice of the exception on the district's Internet
	website.  The notice under this subsection must be in conspicuous
	bold or underlined print or type  and:
	(1)  specify the class for which an exception from the
	limit imposed by Section 25.112(a) was granted;
	(2)  state the number of children in the class for which
	the exception was granted; and
	(3)  unless posted on the district's Internet website,
	be included in a regular mailing or other communication from the
	campus or district, such as information sent home with students.
	SECTION 20.  Section 28.0211(c), Education Code, is amended
	to read as follows:
	(c)  Each time a student fails to perform satisfactorily on
	an assessment instrument specified under Subsection (a), the school
	district in which the student attends school shall 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. [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.]
	SECTION 21.  Section 30.022(f), Education Code, is amended
	to read as follows:
	(f)  Before the beginning of each fiscal year, the board
	shall adopt a calendar for the school's operation that provides for
	at least[:
	[(1)]  the minimum number of days of instruction
	required by Section 25.081[; and
	[(2)     the minimum number of days of service required by
	Section 21.401].
	SECTION 22.  Section 30.052(f), Education Code, is amended
	to read as follows:
	(f)  Before the beginning of each fiscal year, the board
	shall adopt a calendar for the school's operation that:
	(1)  provides for at least[:
	[(1)]  the minimum number of days of instruction
	required by Section 25.081; and
	(2)  is consistent with the number of days of service in
	contracts between the school and classroom teachers [the minimum
	number of days of service required by Section 21.401].
	SECTION 23.  Section 42.2513(a), Education Code, is amended
	to read as follows:
	(a)  A school district, including a school district that is
	otherwise ineligible for state aid under this chapter, is entitled
	to state aid in an amount equal to the sum of:
	(1)  the product of $500 multiplied by the number of
	full-time district employees, other than administrators or
	classroom teachers, full-time librarians, full-time counselors
	certified under Subchapter B, Chapter 21, or full-time school
	nurses [employees subject to the minimum salary schedule under
	Section 21.402]; and
	(2)  the product of $250 multiplied by the number of
	part-time district employees, other than administrators.
	SECTION 24.  Subchapter A, Chapter 44, Education Code, is
	amended by adding Section 44.011 to read as follows:
	Sec. 44.011.  FINANCIAL EXIGENCY. (a)  The board of trustees
	of a school district may adopt a resolution declaring a financial
	exigency for the district. The declaration expires at the end of the
	fiscal year during which the declaration is made unless the board
	adopts a resolution before the end of the fiscal year declaring
	continuation of the financial exigency for the following fiscal
	year.
	(b)  The board is not limited in the number of times the board
	may adopt a resolution declaring continuation of the financial
	exigency.
	(c)  A board may terminate a financial exigency declaration
	at any time if the board considers it appropriate.
	(d)  Each time the board adopts a resolution under this
	section, the board must notify the commissioner. The commissioner
	by rule shall prescribe the time and manner in which notice must be
	given to the commissioner under this subsection.
	SECTION 25.  Section 825.405, Government Code, is amended by
	amending Subsections (a) and (b) and adding Subsection (j) to read
	as follows:
	(a)  For members in a personnel position that would have been
	entitled to the minimum salary for certain school personnel under
	Section 21.402, Education Code, as that section existed on January
	1, 2011, and for members who would have been entitled to the minimum
	salary for certain school personnel under former Section 16.056,
	Education Code, as that section existed on January 1, 1995, the
	employing district shall pay the state's contribution on the
	portion of the member's salary that exceeds the statutory minimum
	salary, based on the member's years of experience.
	(b)  For purposes of this section,[:
	[(1)]  the statutory minimum salary is the amount
	specified below [for certain school personnel under Section 21.402,
	Education Code, is the salary provided by that section] multiplied
	by the cost of education adjustment applicable under Section
	42.102, Education Code, to the district in which the member is
	employed:
	Years of Monthly
	Experience Salary
	0 2,732
	1 2,791
	2 2,849
	3 2,908
	4 3,032
	5 3,156
	6 3,280
	7 3,395
	8 3,504
	9 3,607
	10 3,704
	11 3,796
	12 3,884
	13 3,965
	14 4,043
	15 4,116
	16 4,186
	17 4,251
	18 4,313
	19 4,372
	20 & Over 4,427
	[; and
	[(2)     the statutory minimum salary for members who
	would have been entitled to the minimum salary for certain school
	personnel under former Section 16.056, Education Code, as that
	section existed on January 1, 1995, is a minimum salary computed in
	the same manner as the minimum salary for certain school personnel
	under Section 21.402, Education Code, multiplied by the cost of
	education adjustment applicable under Section 42.102, Education
	Code, to the district in which the member is employed.]
	(j)  At least once every four years, the Legislative Budget
	Board shall review and make recommendations regarding revision of
	the portion of the state's contribution for which school districts
	are responsible under this section.
	SECTION 26.  (a)  The following provisions of the Education
	Code are repealed:
	(1)  Section 21.401;
	(2)  Section 21.402;
	(3)  Section 21.403;
	(4)  Section 21.410(l);
	(5)  Section 21.411(l);
	(6)  Section 21.412(l);
	(7)  Section 21.413(l);
	(8)  Section 29.0821(c); and
	(9)  Section 30.102(b).
	(b)  Section 823.404, Government Code, is repealed.
	SECTION 27.  A plan adopted by a school district under
	Section 21.4032, Education Code, as added by this Act, may not be
	used by the district for determining employee compensation paid
	before the 2012-2013 school year.
	SECTION 28.  This Act applies beginning with the 2011-2012
	school year.
	SECTION 29.  The repeal by this Act of Section 823.404,
	Government Code, does not affect equivalent membership service
	credit established under that section before the effective date of
	this Act.
	SECTION 30.  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 on the 91st day after the last day of
	the legislative session.