Amend CSHB 5 (house committee printing) as follows:

(1)  On page 1, line 17, between "the" and "foundation", insert "distinguished level of achievement under the".

(2)  On page 2, between lines 19 and 20, add the following appropriately numbered SECTION to the bill:

SECTION ____.  (a) Section 28.006(j), Education Code, is amended to read as follows:

(j)  No more than 15 percent of the funds certified by the commissioner under Subsection (i) may be spent on indirect costs. The commissioner shall evaluate the programs that fail to meet the standard of performance under Section 39.301(c)(4) [39.301(c)(5)] and may implement interventions or sanctions under Subchapter E, Chapter 39. The commissioner may audit the expenditures of funds appropriated for purposes of this section. The use of the funds appropriated for purposes of this section shall be verified as part of the district audit under Section 44.008.

(b)  This section applies beginning with the 2014-2015 school year.

(3)  On page 4, line 24, between "(b-14)," and "(c-1),", insert "(b-15),".

(4)  On page 11, between lines 25 and 26, insert the following:

(5)  On page 12, line 26, after the period, add the following:

(6)  On page 23, line 25, between "Section 39.025" and the period, insert "and may not be used as a condition for graduation".

(7)  On page 30, line 1, strike "[adopted under Section 39.023(c)] may" and substitute "shall [adopted under Section 39.023(c) may]".

(8)  On page 30, lines 8-9, strike "[a preliminary American College Test (ACT) assessment] may" and substitute "shall [a preliminary American College Test (ACT) assessment may]".

(9)  On page 28, line 13, between "(a-1)," and "(b),", insert "(a-2),".

(10)  On page 30, between lines 21 and 22, insert the following:

(a-2)  This subsection applies only to a student who, before entering the ninth grade in the 2011-2012 or 2012-2013 school year, completed a course before the 2011-2012 school year in a subject for which the student received high school credit and for which an end-of-course assessment instrument under Section 39.023 is required during the 2013-2014 school year or a later school year, such as Algebra I. The commissioner shall determine a method by which a student's satisfactory performance on an end-of-course assessment instrument for a course in the same general subject area in which the student is enrolled during or after the ninth grade, such as geometry, shall be used to satisfy the requirements for the end-of-course assessment instrument for the course completed before entering the ninth grade and before the 2011-2012 school year. The commissioner shall adopt rules as necessary for the administration of this section. This subsection expires September 1, 2016 [In addition to the cumulative score requirements under Subsection (a), a student must achieve a score that meets or exceeds the score determined by the commissioner under Section 39.0241(a) for English III and Algebra II end-of-course assessment instruments to graduate under the recommended high school program].

(11)  On page 34, lines 12 and 13, strike "Section 39.053(c), Education Code, is amended" and substitute "Section 39.053, Education Code, is amended by amending Subsection (c) and adding Subsection (d-2)".

(12)  On page 35, between lines 23 and 24, insert the following:

(13)  On page 43, line 18, strike "2013-2014" and substitute "2014-2015".

(14)  On page 44, line 14, strike "2013-2014" and substitute "2014-2015".

(15)  On page 44, line 27, strike "2013-2014" and substitute "2014-2015".

(16)  On page 45, line 16, strike "2013-2014" and substitute "2014-2015".

(17)  Strike page 68, line 24, through page 69, line 5, and substitute the following appropriately numbered SECTION:

SECTION ____.  (a) Effective September 1, 2013, Section 39.025(a-3), Education Code, is repealed.

(b)  Effective September 1, 2014, the following provisions of the Education Code are repealed:

(1)  Section 28.002(q);

(2)  Sections 28.025(b-6), (b-8), and (g);

(3)  Section 39.0822; and

(4)  Sections 39.0823(b) and (c).

(18)  On page 69, between lines 21 and 22, add the following appropriately numbered SECTION to the bill:

SECTION ____.  Not later than October 1, 2013, the commissioner of education shall adopt rules to administer Sections 39.025(a-1) and (a-2), Education Code, as amended by this Act.

(19)  Renumber SECTIONS of the bill appropriately.