82R22377 VOO/KKA-D
 
  By: Shapiro, et al. S.B. No. 12
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the flexibility of the board of trustees of a school
  district in the management and operation of public schools in the
  district.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 21.0031, Education Code, is amended by
  amending Subsections (a) and (b) and adding Subsection (b-1) to
  read as follows:
         (a)  An employee's probationary, continuing, or term
  contract under this chapter is void if the employee:
               (1)  does not hold a valid certificate or permit issued
  by the State Board for Educator Certification; [or]
               (2)  fails to fulfill the requirements necessary to
  renew or extend the employee's temporary, probationary, or
  emergency certificate or any other certificate or permit issued
  under Subchapter B; or
               (3)  fails to comply with any requirement under
  Subchapter C, Chapter 22, if the failure results in suspension or
  revocation of the employee's certificate under Section
  22.0831(f)(2).
         (b)  If a school district has knowledge that an [After an
  employee receives notice that the] employee's contract is void
  under Subsection (a):
               (1)  the [a school] district may, except as provided by
  Subsection (b-1):
                     (A)  terminate the employee;
                     (B)  suspend the employee with or without pay; or
                     (C)  retain the employee for the remainder of the
  school year on an at-will employment basis in a position other than
  a position required to be held by an employee under a contract under
  Section 21.002 [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.
         (b-1)  A school district may not terminate or suspend under
  Subsection (b) an employee whose contract is void under Subsection
  (a)(1) or (2) because the employee failed to renew or extend the
  employee's certificate or permit if the employee:
               (1)  requests an extension from the State Board for
  Educator Certification to renew, extend, or otherwise validate the
  employee's certificate or permit; and
               (2)  not later than the 10th day after the date the
  contract is void, takes necessary measures to renew, extend, or
  otherwise validate the employee's certificate or permit, as
  determined by the State Board for Educator Certification.
         SECTION 2.  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 10th
  [45th] day before the last day of instruction required under the
  contract.  The board's decision is final and may not be appealed.
         SECTION 3.  Section 21.105(a), Education Code, is amended to
  read as follows:
         (a)  A teacher employed under a probationary contract for the
  following school year may relinquish the position and leave the
  employment of the district at the end of a school year without
  penalty by filing with the board of trustees or its designee a
  written resignation not later than the 30th [45th] day before the
  first day of instruction of the following school year. A written
  resignation mailed by prepaid certified or registered mail to the
  president of the board of trustees or the board's designee at the
  post office address of the district is considered filed at the time
  of mailing.
  SECTION 4.  Section 21.157, Education Code, is amended to
  read as follows:
         Sec. 21.157.  NECESSARY REDUCTION OF PERSONNEL. (a) 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:
               (1)  a necessary reduction of personnel by the school
  district; or
               (2)  a program change that requires a reduction in
  personnel[, with those reductions made in the reverse order of
  seniority in the specific teaching fields].
         (b)  Notwithstanding Subsection (a)(1), a teacher employed
  under a continuing contract may not be released as described by that
  subdivision for a school year in which the district is authorized to
  implement a furlough program under Section 21.4021 or reduce
  salaries under Section 21.4022 unless the district has taken action
  under either or both of those sections to achieve the greatest
  savings in salary costs permitted by Section 21.4022.
         SECTION 5.  Section 21.160(a), Education Code, is amended to
  read as follows:
         (a)  A teacher employed under a continuing contract may
  relinquish the position and leave the employment of the district at
  the end of a school year without penalty by filing with the board of
  trustees or its designee a written resignation not later than the
  30th [45th] day before the first day of instruction of the following
  school year. A written resignation mailed by prepaid certified or
  registered mail to the president of the board of trustees or the
  board's designee at the post office address of the district is
  considered filed at time of mailing.
         SECTION 6.  Section 21.206(a), Education Code, is amended to
  read as follows:
         (a)  Not later than the 10th [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.
         SECTION 7.  Section 21.210(a), Education Code, is amended to
  read as follows:
         (a)  A teacher employed under a term contract with a school
  district may relinquish the teaching position and leave the
  employment of the district at the end of a school year without
  penalty by filing a written resignation with the board of trustees
  or the board's designee not later than the 30th [45th] day before
  the first day of instruction of the following school year. A
  written resignation mailed by prepaid certified or registered mail
  to the president of the board of trustees or the board's designee at
  the post office address of the district is considered filed at the
  time of mailing.
         SECTION 8.  Section 21.211, Education Code, is amended by
  amending Subsection (a) and adding Subsection (a-1) to read as
  follows:
         (a)  The board of trustees may terminate a term contract and
  discharge a teacher at any time for:
               (1)  good cause as determined by the board; [or]
               (2)  a financial exigency that requires a reduction in
  personnel; or
               (3)  a program change that requires a reduction in
  personnel.
         (a-1)  Notwithstanding Subsection (a)(2), the board of
  trustees may not terminate a term contract as described by that
  subdivision for a school year in which the district is authorized to
  implement a furlough program under Section 21.4021 or reduce
  salaries under Section 21.4022 unless the district has taken action
  under either or both of those sections to achieve the greatest
  savings in salary costs permitted by Section 21.4022.
         SECTION 9.  Subchapter I, Chapter 21, Education Code, is
  amended by adding Sections 21.4021, 21.4022, and 21.4023 to read as
  follows:
         Sec. 21.4021.  FURLOUGHS. (a) Notwithstanding Section
  21.401 and subject to Sections 21.4022 and 21.4023, the board of
  trustees of a school district may, in accordance with district
  policy, implement a furlough program and reduce the number of days
  of service otherwise required under Section 21.401 by not more than
  six days of service during a school year if the commissioner
  certifies in accordance with Section 42.009 that the district will
  be provided with less state and local funding for that year than was
  provided to the district for the 2010-2011 school year.
         (b)  Notwithstanding Section 21.402 but subject to Section
  21.4022, the board of trustees may reduce the salary of an employee
  who is furloughed in proportion to the number of days by which
  service is reduced, provided that the furlough program is
  implemented in compliance with this section.
         (c)  A furlough program must subject all contract personnel
  to the same number of furlough days, except that, for purposes of
  providing professional development, the board of trustees may
  exempt from furloughs or subject to a lesser number of required
  furlough days contract personnel assigned to a campus that:
               (1)  does not satisfy performance standards under
  Section 39.054(e); or
               (2)  satisfies performance standards under Section
  39.054(e) for the current school year but would not satisfy
  performance standards under Section 39.054(e) if the standards to
  be used for the following year were applied to the current year.
         (d)  An educator may not be furloughed on a day that is
  included in the number of days of instruction required under
  Section 25.081.
         (e)  An educator may not use personal, sick, or any other
  paid leave while the educator is on a furlough.
         (f)  A furlough imposed under this section does not
  constitute a break in service for purposes of the Teacher
  Retirement System of Texas.
         (g)  Implementation of a furlough program may not result in
  an increase in the number of required teacher workdays.
         (h)  If a board of trustees adopts a furlough program after
  the date by which a teacher must give notice of resignation under
  Section 21.105, 21.160, or 21.210, as applicable, a teacher who
  subsequently resigns is not subject to sanctions imposed by the
  State Board for Educator Certification as otherwise authorized by
  those sections.
         (i)  A decision by the board of trustees to implement a
  furlough program:
               (1)  is final and may not be appealed; and
               (2)  does not create a cause of action or require
  collective bargaining.
         Sec. 21.4022.  SALARY REDUCTION. (a) Notwithstanding
  Section 21.402 or any other law, but subject to Section 21.4023, a
  school district may, if authorized by the board of trustees, reduce
  for a school year the monthly salary of contract personnel employed
  by the district during the 2010-2011 school year if the
  commissioner certifies in accordance with Section 42.009 that the
  district will be provided with less state and local funding for that
  year than was provided to the district for the 2010-2011 school
  year.
         (b)  A salary reduction may be achieved through a reduction
  associated with a furlough as provided by Section 21.4021, through
  a reduction not associated with a furlough, or through a
  combination of those reductions.
         (c)  A school district may not, through the cumulative effect
  of actions described by Subsection (b), reduce an employee's salary
  received for the 2010-2011 school year by more than the percentage
  by which the district's state and local funding is reduced for the
  applicable school year, as certified by the commissioner under
  Section 42.009.
         (d)  For purposes of this section, an employee's salary does
  not include any stipends provided by the district to the employee.
         (e)  A decision by the board of trustees to authorize a
  salary reduction:
               (1)  is final and may not be appealed; and
               (2)  does not create a cause of action or require
  collective bargaining.
         Sec. 21.4023.  REQUIRED PROCESS FOR DEVELOPMENT OF FURLOUGH
  PROGRAM OR OTHER SALARY REDUCTION PROPOSAL. (a) The board of
  trustees of a school district may not implement a furlough program
  under Section 21.4021 or reduce salaries in accordance with Section
  21.4022 until the district has complied with this section.
         (b)  A school district must use a process to develop a
  furlough program or other salary reduction proposal, as applicable,
  that:
               (1)  includes the involvement of the district's
  professional staff; and
               (2)  provides district employees with the opportunity
  to express opinions regarding the furlough program or salary
  reduction proposal, as applicable, at the public meeting required
  by Subsection (c).
         (c)  The board of trustees must hold a public meeting at
  which the board and school district administration present:
               (1)  information regarding the options considered for
  managing the district's available resources, including
  consideration of a tax rate increase and use of the district's
  available fund balance; and
               (2)  an explanation of how the district intends,
  through implementation of a furlough program under Section 21.4021
  or through other salary reductions authorized under Section
  21.4022, as applicable, to limit the number of district employees
  who will be discharged or whose contracts will not be renewed.
         (d)  Any explanation of a furlough program under Subsection
  (c)(2) must state the specific number of furlough days proposed to
  be required.
         (e)  The public and school district employees must be
  provided with an opportunity to comment at the public meeting
  required under Subsection (c).
         SECTION 10.  Section 38.101(a), Education Code, is amended
  to read as follows:
         (a)  Except as provided by Subsection (b), a school district
  annually shall assess the physical fitness of students enrolled in
  grade three or higher in a course that satisfies the curriculum
  requirements for physical education under Section 28.002(a)(2)(C) 
  [grades 3 through 12].
         SECTION 11.  Section 39.082, Education Code, is amended by
  adding Subsection (d) to read as follows:
         (d)  The commissioner may not use the system developed under
  this section to evaluate:
               (1)  a district during a school year for which the
  commissioner certifies in accordance with Section 42.009 that the
  district will be provided with less state and local funding than was
  provided to the district for the 2010-2011 school year; or
               (2)  an open-enrollment charter school during a school
  year for which the commissioner determines in a manner comparable
  to the process described in Section 42.009 that the school will be
  provided with less state and local funding than was provided to the
  school for the 2010-2011 school year.
         SECTION 12.  Section 39.0822, Education Code, is amended by
  adding Subsection (f) to read as follows:
         (f)  The agency may not review a district using the process
  developed under this section during a school year for which the
  commissioner certifies in accordance with Section 42.009 that the
  district will be provided with less state and local funding than was
  provided to the district for the 2010-2011 school year.
         SECTION 13.  Subchapter A, Chapter 42, Education Code, is
  amended by adding Section 42.009 to read as follows:
         Sec. 42.009.  DETERMINATION OF FUNDING LEVELS. (a) Not
  later than July 1 of each year, the commissioner shall determine for
  each school district whether the estimated amount of state and
  local funding per student in weighted average daily attendance to
  be provided to the district under the Foundation School Program for
  maintenance and operations for the following school year is less
  than the amount provided to the district for the 2010-2011 school
  year. If the amount estimated to be provided is less, the
  commissioner shall certify the percentage decrease in funding to be
  provided to the district.
         (b)  In making the determinations regarding funding levels
  required by Subsection (a), the commissioner shall:
               (1)  make adjustments as necessary to reflect changes
  in a school district's maintenance and operations tax rate;
               (2)  for a district required to take action under
  Chapter 41 to reduce its wealth per student to the equalized wealth
  level, base the determinations on the district's net funding levels
  after deducting any amounts required to be expended by the district
  to comply with Chapter 41; and
               (3)  determine a district's weighted average daily
  attendance in accordance with this chapter as it existed on January
  1, 2011.
         SECTION 14.  Section 44.004, Education Code, is amended by
  adding Subsection (g-1) to read as follows:
         (g-1)  If the rate calculated under Section
  44.004(c)(5)(A)(ii)(b) decreases after the publication of the
  notice required by this section, the president is not required to
  publish another notice or call another meeting to discuss and adopt
  the budget and the proposed lower tax rate.
         SECTION 15.  Section 26.05(a), Tax Code, is amended to read
  as follows:
         (a)  The governing body of each taxing unit, before the later
  of September 30 or the 60th day after the date the certified
  appraisal roll is received by the taxing unit, shall adopt a tax
  rate for the current tax year and shall notify the assessor for the
  unit of the rate adopted.  The tax rate consists of two components,
  each of which must be approved separately.  The components are:
               (1)  for a taxing unit other than a school district, the
  rate that, if applied to the total taxable value, will impose the
  total amount published under Section 26.04(e)(3)(C), less any
  amount of additional sales and use tax revenue that will be used to
  pay debt service, or, for a school district, the rate calculated
  [published] under Section 44.004(c)(5)(A)(ii)(b), Education Code;
  and
               (2)  the rate that, if applied to the total taxable
  value, will impose the amount of taxes needed to fund maintenance
  and operation expenditures of the unit for the next year.
         SECTION 16.  Section 58.258(a), Utilities Code, is amended
  to read as follows:
         (a)  Notwithstanding the pricing flexibility authorized by
  this subtitle, an electing company's rates for private network
  services may not be increased before January 1, 2014 [2012].  
  However, an electing company may increase a rate in accordance with
  the provisions of a customer specific contract.
         SECTION 17.  Section 58.268, Utilities Code, is amended to
  read as follows:
         Sec. 58.268.  CONTINUATION OF OBLIGATION. Notwithstanding
  any other provision of this title, an electing company shall
  continue to comply with this subchapter until January 1, 2014 
  [2012], regardless of:
               (1)  the date the company elected under this chapter;
  or
               (2)  any action taken in relation to that company under
  Chapter 65.
         SECTION 18.  Section 59.077(a), Utilities Code, is amended
  to read as follows:
         (a)  Notwithstanding the pricing flexibility authorized by
  this subtitle, an electing company's rates for private network
  services may not be increased before January 1, 2014 [2012].
         SECTION 19.  Section 59.083, Utilities Code, is amended to
  read as follows:
         Sec. 59.083.  CONTINUATION OF OBLIGATION. Notwithstanding
  any other provision of this title, an electing company shall
  continue to comply with this subchapter until January 1, 2014
  [2012], regardless of:
               (1)  the date the company elected under this chapter;
  or
               (2)  any action taken in relation to that company under
  Chapter 65.
         SECTION 20.  The change in law made by Section 44.004(g-1),
  Education Code, as added by this Act, applies beginning with
  adoption of a tax rate for the 2011 tax year.
         SECTION 21.  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, 2011.