2013S0302-1 02/18/13

By: Perry H.B. No. 3789

A BILL TO BE ENTITLED

AN ACT

relating to the establishment of the Texas Achievement School District for the education of students attending campuses removed from the jurisdiction of a school district or open-enrollment charter school.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Chapter 11, Education Code, is amended by adding Subchapter I to read as follows:

SUBCHAPTER I. TEXAS ACHIEVEMENT SCHOOL DISTRICT

Sec. 11.401. DEFINITIONS. In this subchapter:

(1) "District" means the Texas Achievement School District created under this subchapter.

(2) "Prior system" means a school district or open-enrollment charter school from which a campus is removed under Section 39.107.

Sec. 11.402. TEXAS ACHIEVEMENT SCHOOL DISTRICT ESTABLISHED. (a) The Texas Achievement School District is established as a school district under the laws of this state, and as an intermediate educational unit under 34 C.F.R. Section 222.50, for the education of students attending any campus removed from the jurisdiction of a school district or open-enrollment charter school under Section 39.107.

(b) The superintendent of the district shall report to the commissioner under a written contract for services.

(c) The district does not have authority to impose taxes, but may seek and expend federal funding and grant funding and may otherwise seek, obtain, and expend funding with the same authority as an independent school district.

(d) The district may provide for the supervision, management, and operation of each campus removed to its jurisdiction and may receive, control, and expend the local, state, and federal funding attributable to that campus with all the same power and authority as the prior system, subject to the requirements of this subchapter and Section 39.107, and with any other power or authority otherwise granted by law.

(e) The district is entitled to the same level of services from regional education service centers as that provided to other school districts and is entitled to participate in any state program available to school districts, including a purchasing program. In addition, using funds appropriated for the regional education service centers, the commissioner shall direct that appropriate administrative facilities and support be made available to serve as the central administrative offices of the district.

(f) The district shall reform and operate each campus under its jurisdiction in whatever manner is determined by the superintendent to be most likely to bring the school to an acceptable level of performance under Chapter 39. The district may contract with a public or private entity for educational services to the students attending campuses removed to the district and shall, in the sole discretion of the superintendent, reconstitute, repurpose, alternatively manage, convert to charter status, or otherwise reform each campus based on the unique circumstances presented by the campus.

(g) The district may employ such staff as the superintendent considers necessary.

Sec. 11.403. APPLICABILITY OF LAWS, RULES, AND ORDINANCES. (a) Except as expressly provided by law, the district is subject to federal and state laws and rules governing public schools and to municipal zoning ordinances governing public schools.

(b) Except as expressly provided by law, the district is subject to a provision of this title to the extent and in the manner that such provision applies to an open-enrollment charter school under Subchapter D, Chapter 12.

Sec. 11.404. IMMUNITY. The district is immune from liability to the same extent as any other school district, and its employees and volunteers are immune from liability to the same extent as other school district employees and volunteers.

Sec. 11.405. MEMBERSHIP IN TEACHER RETIREMENT SYSTEM OF TEXAS BY DISTRICT EMPLOYEES. (a) An employee of the district who qualifies for membership in the Teacher Retirement System of Texas is covered under the system to the same extent that a qualified employee of any other school district is covered.

(b) For each employee of the district covered under the Teacher Retirement System of Texas, the district and the state shall make their respective contributions to the same extent to which each would be legally responsible if the employee were the employee of another school district.

Sec. 11.406. FUNDING OF STUDENTS ENROLLED IN DISTRICT. (a) The district is entitled to receive for the education of students at each campus removed to the district funding under Chapter 42 equal to the amount of funding per student in weighted average daily attendance to which the prior system would be entitled under that chapter if it were a school district without a tier one local share for purposes of Section 42.253.

(b) In determining funding for the district under Subsection (a), adjustment under Section 42.102, 42.103, 42.104, or 42.105 is based on the actual adjustment for the prior system. In addition to the funding provided by Subsection (a), the district is entitled to receive enrichment funding under Section 42.302 based on the actual amount received by the prior system.

(c) In determining funding for the district under Subsection (a), the commissioner shall apply the same adjustment factor provided under Section 42.101 to calculate the regular program allotment as was applied for the prior system.

(d) The district is entitled to funds that are available to other school districts from the agency or the commissioner in the form of grants or other discretionary funding. The district is entitled to a pro rata share of all revenue disbursed to the prior system by the agency or the commissioner in the form of grants or other discretionary funding.

(e) The district is entitled to share in the available school fund apportionment and other privileges to the same extent and in the same manner as did the prior system. The district shall report its student attendance and receive funding in the same manner as any other district.

(f) The amount of funding the prior system is entitled to receive under Chapter 42 is reduced by an amount equal to the amount of funding received by the district under this section, including the tier one local share.

(g) Funds received by the district under this section shall be used for the operation and administration of campuses removed to the district under Section 39.107.

(h) The commissioner shall adopt rules as necessary to implement this section.

Sec. 11.407. USE OF FACILITIES. (a) The district has the unrestricted right to use any school building and all facilities and property otherwise part of a removed campus and recognized as part of the facilities or assets of the campus prior to its removal to the district. The district is responsible for and obligated to provide for routine maintenance and repair, and the facilities and property must be maintained in as good an order as when the right of use was acquired by the district. The district is not required to provide for extensive repair to buildings or facilities that would be considered a capital expense. Such repairs are the responsibility of the prior system.

(b) In addition to the buildings, facilities, and property described by Subsection (a), the district has access to such additional facilities as were typically available to the students, faculty, and staff of a campus prior to its removal to the district.

Sec. 11.408. SUPPORT BY PRIOR SYSTEM. The district may require the prior system to provide school support or student support services for a campus removed from its jurisdiction, including student transportation, school food service, and student assessment for special education eligibility, that are compliant with all laws and regulations governing such services. The district shall reimburse the actual cost of such services to the prior system. If the district and the prior system are unable to agree on the actual cost of services to be reimbursed, the commissioner or the commissioner's designee shall determine the cost to be reimbursed.

Sec. 11.409. ACHIEVEMENT CHARTER SCHOOLS. (a) The district may design and grant campus charters under Section 12.0521(a)(1) to new campuses created by the district for the purpose of applying its experience and expertise in turning around persistently low-performing campuses. The district shall develop a statewide plan under this section to be submitted in the manner provided by Section 39.332.

(b) A new charter under this section is eligible for funding under Section 11.406. Any administrative cost of authorizing charter activities under this section may be paid from funds appropriated to the agency.

SECTION 2. Subsection (f), Section 39.106, Education Code, is amended to read as follows:

(f) Notwithstanding any other provision of this subchapter, if the commissioner determines that a campus for which an intervention is ordered under Subsection (a) is not fully implementing the campus intervention team's recommendations or targeted improvement plan or updated plan, the commissioner may order the removal [reconstitution] of the campus as provided by Section 39.107.

SECTION 3. Section 39.107, Education Code, is amended to read as follows:

Sec. 39.107. REMOVAL OF CAMPUS TO TEXAS ACHIEVEMENT SCHOOL DISTRICT [RECONSTITUTION, REPURPOSING, ALTERNATIVE MANAGEMENT, AND CLOSURE]. (a) In this section:

(1) "District" means the Texas Achievement School District established under Subchapter I, Chapter 11.

(2) "Prior system" has the meaning assigned by Section 11.401.

(3) "Superintendent" means the superintendent of the district.

(b) After a campus has been identified as unacceptable for two consecutive school years, the commissioner, after consulting with the superintendent, shall order the removal [reconstitution] of the campus to the district. The removed campus shall be reorganized and reformed, as necessary, and operated by the district in whatever manner the superintendent determines to be most likely to bring the school to an acceptable level of performance under this chapter. The district shall retain jurisdiction over the removed campus until the campus is returned to the prior system under Subsection (f) or (g).

(c) Notwithstanding any other provision of law, a student in the assigned attendance zone of a campus that is removed under this section may attend the campus after its removal to the district or may exercise an option, to be made available by the prior system, to attend another campus remaining under the jurisdiction of the prior system. Only a student eligible to attend the campus under the prior system may attend the campus after its removal to the district. However, a student eligible to participate in a school choice program established by the prior system may attend a campus after its removal if the campus has the capacity to add the student in the appropriate grade. The superintendent shall determine the maximum capacity of each district campus by grade level.

(d) [(a-1) In reconstituting a campus, a campus intervention team shall assist the campus in:

[(1) developing an updated targeted improvement plan;

[(2) submitting the updated targeted improvement plan to the board of trustees of the school district for approval and presenting the plan in a public hearing as provided by Section 39.106(e-1);

[(3) obtaining approval of the updated plan from the commissioner; and

[(4) executing the plan on approval by the commissioner.

[(b)] The superintendent has sole discretion to determine [campus intervention team shall decide] which educators may be retained at a removed [that] campus. A certified teacher with regular and direct responsibility for providing classroom instruction to students must be given priority consideration for employment in a comparable position at the removed campus. A person who is not retained by the district or who chooses to remain employed by the prior system may be reassigned by the prior system consistent with the prior system's contractual obligations or policies regarding the retention and reassignment of employees. [A principal who has been employed by the campus in that capacity during the full period described by Subsection (a) may not be retained at that campus unless the campus intervention team determines that retention of the principal would be more beneficial to the student achievement and campus stability than removal.

[(b-1) A teacher of a subject assessed by an assessment instrument under Section 39.023 may be retained only if the campus intervention team determines that a pattern exists of significant academic improvement by students taught by the teacher. If an educator is not retained, the educator may be assigned to another position in the district.

[(b-2) For each year that a campus is considered to have an unacceptable performance rating, a campus intervention team shall:

[(1) assist in updating the targeted improvement plan to identify and analyze areas of growth and areas that require improvement;

[(2) submit the updated plan to:

[(A) the board of trustees of the school district; and

[(B) the parents of campus students; and

[(3) assist in submitting the updated plan to the commissioner for approval.

[(c) A campus subject to Subsection (a) shall implement the updated targeted improvement plan as approved by the commissioner. The commissioner may appoint a monitor, conservator, management team, or board of managers to the district to ensure and oversee district-level support to low-performing campuses and the implementation of the updated targeted improvement plan. In making appointments under this subsection, the commissioner shall consider individuals who have demonstrated success in managing campuses with student populations similar to the campus at which the individual appointed will serve.

[(d) If the commissioner determines that the campus is not fully implementing the updated targeted improvement plan or if the students enrolled at the campus fail to demonstrate substantial improvement in the areas targeted by the updated plan, the commissioner may order:

[(1) repurposing of the campus under this section;

[(2) alternative management of the campus under this section; or

[(3) closure of the campus.]

(e) For the purposes of any benefit or right requiring continuous service or based on years of service, the prior system must grant a leave of absence to any person who is employed at a campus when the campus is removed under this section and who is subsequently retained by the district. The prior system is not required to provide benefits during such leave of absence. If the employee subsequently returns to the prior system's employment, the employee's period of employment at the removed campus qualifies as service time. The benefits and privileges of any person employed at a removed campus, or employed by an operator of a removed campus under contract with the district, who was not employed by the prior system when the campus was removed to the district shall be determined by the district or operator, in compliance with applicable law, at the time of employment.

(f) When a removed campus achieves an acceptable level of performance under this chapter, the commissioner, upon the recommendation of the superintendent, shall direct the district and the prior system to enter into an agreement to return the campus to the prior system. The agreement must include provisions:

(1) detailing the operation of the campus after its return to the prior system, including provisions for the continuation of the programs that have provided the basis for improved academic achievement by students;

(2) describing the employment status of all persons employed at the campus who were not employed by the prior system at the time the campus was removed to the district; and

(3) detailing the means and timetable for the transition and return of the campus to the prior system.

(g) If a removed campus fails to achieve an acceptable level of performance under this chapter within three years following removal of the campus, the superintendent shall:

(1) organize a new campus under district jurisdiction for the education of students eligible to attend the campus initially removed from the prior system;

(2) grant the new campus a charter under Section 12.0521(a)(1);

(3) reform and operate the new campus charter in whatever manner is determined by the superintendent to be most likely to bring the school to an acceptable level of performance under this chapter;

(4) seek agreement to return the campus charter to the prior system when eligibility is established under Subsection (f);

(5) in the next statewide plan required under Section 11.409, address the failure of the campus to achieve an acceptable level of performance within three years; and

(6) record, for annual reporting in accordance with Section 39.332(b)(22-a), the actions taken under Subdivisions (1)-(5).

(h) [If a campus is considered to have an unacceptable performance rating for three consecutive school years after the campus is reconstituted under Subsection (a), the commissioner, subject to Subsection (e-1) or (e-2), shall order:

[(1) repurposing of the campus under this section;

[(2) alternative management of the campus under this section; or

[(3) closure of the campus.

[(e-1) The commissioner may waive the requirement to enter an order under Subsection (e) for not more than one school year if the commissioner determines that, on the basis of significant improvement in student performance over the preceding two school years, the campus is likely to be assigned an acceptable performance rating for the following school year.

[(e-2)] For purposes of this subsection, "parent" has the meaning assigned by Section 12.051. The provisions of Subsections (a)-(e-1) and (f)-(r), as in effect on May 31, 2013, governing repurposing, alternative management, and closure of a campus shall continue in full force and effect and shall be implemented by order of the commissioner if [If] the commissioner is presented, in the time and manner specified by commissioner rule:

(1) [,] a written petition signed by the parents of a majority of the students enrolled at a campus described by [to which] Subsection (g) [(e) applies], specifying [the action described by Subsection (e)(1), (2), or (3)] that the parents request that the commissioner make such [to] order; or

(2) a written request by a campus governing body established by the district under this section, including [the commissioner shall, except as otherwise authorized by this subsection, order the specific action requested. If the board of trustees of the school district in which the campus is located presents to the commissioner, in the time and manner specified by commissioner rule, a written request that the commissioner order specific action authorized under Subsection (e) other than the specific action requested in the parents' petition and] a written explanation of the basis for the body's [board's] request, specifying that the body requests that the commissioner make such [may] order [the action requested by the board of trustees].

(i) [(e-3)] For purposes of Subsection (h)(1) [(e-2)], the signature of only one parent of a student is required.

(j) [(f) If the commissioner orders repurposing of a campus, the school district shall develop a comprehensive plan for repurposing the campus and submit the plan to the board of trustees for approval, using the procedures described by Section 39.106(e-1), and to the commissioner for approval. The plan must include a description of a rigorous and relevant academic program for the campus. The plan may include various instructional models. The commissioner may not approve the repurposing of a campus unless:

[(1) all students in the assigned attendance zone of the campus in the school year immediately preceding the repurposing of the campus are provided with the opportunity to enroll in and are provided transportation on request to another campus, unless the commissioner grants an exception because there is no other campus in the district in which the students may enroll;

[(2) the principal is not retained at the campus, unless the commissioner determines that students enrolled at the campus have demonstrated significant academic improvement; and

[(3) teachers employed at the campus in the school year immediately preceding the repurposing of the campus are not retained at the campus, unless the commissioner or the commissioner's designee grants an exception, at the request of a school district, for:

[(A) a teacher who provides instruction in a subject other than a subject for which an assessment instrument is administered under Section 39.023(a) or (c) who demonstrates to the commissioner satisfactory performance; or

[(B) a teacher who provides instruction in a subject for which an assessment instrument is administered under Section 39.023(a) or (c) if the district demonstrates that the students of the teacher demonstrated satisfactory performance or improved academic growth on that assessment instrument.

[(g) If an educator is not retained under Subsection (f), the educator may be assigned to another position in the district.

[(h) If the commissioner orders alternative management under this section, the commissioner shall solicit proposals from qualified nonprofit 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. The commissioner may solicit proposals from qualified for-profit entities to assume management of a campus subject to this section if a nonprofit entity has not responded to the commissioner's request for proposals. 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 entity or in accordance with commissioner rule.

[(i)] If the commissioner determines that the basis for the unsatisfactory performance of a campus for more than two consecutive school years is limited to a specific condition that may be remedied with targeted technical assistance, the commissioner may require the school district to contract for the appropriate technical assistance in lieu of removal under this section.

[(j) 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 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.]

(k) [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 campuses considered to have an unacceptable performance rating;

[(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.

[(l) In selecting a managing entity under this section, the commissioner shall give preference to a qualified 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.

[(m) The school district may negotiate the term of a management contract for not more than five years with an option to renew the contract. The management contract must include a provision describing the district's responsibilities in supporting the operation of the campus. The commissioner shall approve the contract before the contract is executed and, as appropriate, may require the district, as a term of the contract, to support the campus in the same manner as the district was required to support the campus before the execution of the management contract.

[(n) A management contract under this section shall include provisions approved by the commissioner that require the managing entity to demonstrate improvement in campus performance, including negotiated performance measures. The performance measures must be consistent with the priorities of this chapter. The commissioner shall evaluate a managing entity's performance on the first and second anniversaries of the date of the management contract. If the evaluation fails to demonstrate improvement as negotiated under the contract by the first anniversary of the date of the management contract, the district may terminate the management contract, with the commissioner's consent, for nonperformance or breach of contract and select another provider from an approved list provided by the commissioner. If the evaluation fails to demonstrate significant improvement, as determined by the commissioner, by the second anniversary of the date of the management contract, the district shall terminate the management contract and select another provider from an approved list provided by the commissioner or resume operation of the campus if approved by the commissioner. If the commissioner approves the district's operation of the campus, the commissioner shall assign a technical assistance team to assist the campus.

[(o)] Notwithstanding any other provision of this code, the funding for a campus removed to the district [operated by a managing entity] must be not less than the funding of the other campuses in the prior system [district] on a per student basis so that the district [managing entity] receives at least the same funding the campus would otherwise have received.

(l) [(p) Each campus operated by a managing entity under this section is subject to this chapter in the same manner as any other campus in the district.

[(q)] The commissioner may adopt rules necessary to implement this section.

[(r) With respect to the management of a campus under this section:

[(1) a managing entity is considered to be a governmental body for purposes of Chapters 551 and 552, Government Code; and

[(2) any requirement in Chapter 551 or 552, Government Code, that applies to a school district or the board of trustees of a school district applies to a managing entity.]

SECTION 4. Section 39.108, Education Code, is amended to read as follows:

Sec. 39.108. ANNUAL REVIEW. The commissioner shall review annually the performance of a district or campus subject to this subchapter, including the Texas Achievement School District, 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 or rating has been lowered due to insufficient student performance and may not raise the accreditation status or 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 5. Subsection (b), Section 39.332, Education Code, is amended by adding Subdivision (22-a) to read as follows:

(22-a) Based on the annual review required under Section 39.108, the report must contain a listing and description of the status of each campus under the jurisdiction of the Texas Achievement School District and a summary of the reforms implemented and progress achieved by each campus.

SECTION 6. Section 39.115, Education Code, is repealed.

SECTION 7. This Act applies beginning with the 2013-2014 school year.

SECTION 8. This Act takes effect August 1, 2013, 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 effect on that date, this Act takes effect September 1, 2013.