By: Patrick, Nichols S.B. No. 218

(In the Senate - Filed March 7, 2013; March 12, 2013, read first time and referred to Committee on Education; April 22, 2013, reported adversely, with favorable Committee Substitute by the following vote: Yeas 9, Nays 0; April 22, 2013, sent to printer.)

COMMITTEE SUBSTITUTE FOR S.B. No. 218 By: Patrick

A BILL TO BE ENTITLED

AN ACT

relating to the continuation and functions of the Texas Education Agency and to the abolition of the State Board for Educator Certification and the transfer of its functions to the Texas Education Agency; changing the amounts of certain fees and providing for the ad valorem tax rate to be imposed after annexation of an insolvent or inoperative school district.

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

SECTION 1. Section 7.004, Education Code, is amended to read as follows:

Sec. 7.004. SUNSET PROVISION. The Texas Education Agency is subject to Chapter 325, Government Code (Texas Sunset Act). Unless continued in existence as provided by that chapter, the agency is abolished September 1, 2025 [2013].

SECTION 2. Subsection (a), Section 7.021, Education Code, is amended to read as follows:

(a) The agency shall:

(1) distribute state and federal funding to public schools and ensure the proper use of those funds;

(2) monitor public schools for compliance with state and federal guidelines, subject to the limitations in Section 7.028;

(3) administer the statewide standardized testing program and accountability systems;

(4) provide assistance to and impose interventions and sanctions on public schools that consistently fail to meet state or federal accountability standards;

(5) provide support to the board in developing statewide curriculum standards, adopting instructional materials, managing the instructional materials allotment and distribution process, and carrying out duties related to the permanent school fund;

(6) collect, analyze, and make accessible a wide array of educational and financial data from public schools;

(7) ensure the quality of public school educators by certifying educators, regulating educator preparation programs, and taking enforcement action in cases of educator misconduct; and

(8) carry out any other duties imposed on the agency by the legislature consistent with the agency's appropriations and mission [perform the educational functions provided by Subsection (b)].

SECTION 3. Subchapter B, Chapter 7, Education Code, is amended by adding Section 7.0235 to read as follows:

Sec. 7.0235. RESTRICTIONS ON AGENCY EMPLOYMENT. (a) In this section, "Texas trade association" means a cooperative and voluntarily joined statewide association of business or professional competitors in this state designed to assist its members and its industry or profession in dealing with mutual business or professional problems and in promoting their common interest.

(b) A person may not be an agency employee employed in a "bona fide executive, administrative, or professional capacity," as that phrase is used for purposes of establishing an exemption to the overtime provisions of the federal Fair Labor Standards Act of 1938 (29 U.S.C. Section 201 et seq.), if:

(1) the person is an officer, employee, or paid consultant of a Texas trade association in the field of elementary or secondary education; or

(2) the person's spouse is an officer, manager, or paid consultant of a Texas trade association in the field of elementary or secondary education.

(c) A person may not act as the general counsel to the commissioner or the agency if the person is required to register as a lobbyist under Chapter 305, Government Code, because of the person's activities for compensation on behalf of a profession related to the operation of the agency.

SECTION 4. Subchapter B, Chapter 7, Education Code, is amended by adding Sections 7.034, 7.035, and 7.036 to read as follows:

Sec. 7.034. PUBLIC INVOLVEMENT POLICY. The agency shall develop and implement a policy regarding public involvement with the agency. The policy must:

(1) describe how the agency will proactively engage stakeholders;

(2) distinguish the purposes and appropriate uses of advisory committees and informal work groups, including by specifying that an informal work group:

(A) is not subject to Chapter 2110, Government Code; and

(B) must have a well-defined purpose and follow specific timelines for completing tasks;

(3) identify actions the agency will take that exceed the minimum open meetings requirements under Chapter 551, Government Code;

(4) include a strategy for providing updated information regarding advisory committees and issues of concern to stakeholders through the agency's Internet website; and

(5) describe how public input will affect agency decisions, including by providing information regarding the specific outcomes for all types of public input.

Sec. 7.035. COMPLAINTS. (a) The agency shall maintain a system to promptly and efficiently act on complaints filed with the agency. The agency shall maintain information about parties to the complaint, the subject matter of the complaint, a summary of the results of the review or investigation of the complaint, and its disposition.

(b) The agency shall make information available describing its procedures for complaint investigation and resolution.

(c) The agency shall periodically notify the complaint parties of the status of the complaint until final disposition.

Sec. 7.036. NEGOTIATED RULEMAKING; ALTERNATIVE DISPUTE RESOLUTION. (a) The agency shall develop and implement a policy to encourage the use of:

(1) negotiated rulemaking procedures under Chapter 2008, Government Code, for the adoption of agency rules; and

(2) appropriate alternative dispute resolution procedures under Chapter 2009, Government Code, to assist in the resolution of internal and external disputes under the agency's jurisdiction.

(b) The agency's procedures relating to alternative dispute resolution must conform, to the extent possible, to any model guidelines issued by the State Office of Administrative Hearings for the use of alternative dispute resolution by state agencies.

(c) The agency shall:

(1) coordinate the implementation of the policy adopted under Subsection (a);

(2) provide training as needed to implement the procedures for negotiated rulemaking or alternative dispute resolution; and

(3) collect data concerning the effectiveness of those procedures.

SECTION 5. Subsection (a), Section 7.055, Education Code, is amended to read as follows:

(a) The commissioner shall:

(1) serve as the educational leader of the state;

(2) serve as executive officer of the agency, with authority to:

(A) employ division heads and any other employees and clerks necessary to perform the duties of the agency;

(B) delegate ministerial and executive functions to agency staff;

(C) appoint advisory committees, in accordance with Chapter 2110, Government Code, as necessary to advise the commissioner in carrying out the duties and mission of the agency; and

(D) appoint an internal auditor for the agency; and

(3) carry out the duties imposed on the commissioner by the legislature [has the powers and duties provided by Subsection (b)].

SECTION 6. Subdivision (9), Subsection (b), Section 7.055, Education Code, is transferred to Subchapter A, Chapter 7, Education Code, redesignated as Section 7.011, Education Code, and amended to read as follows:

Sec. 7.011. TEXAS SCHOOL LAW BULLETIN. [(9)] The commissioner shall have a bulletin [manual] published at least once every two years that contains Title 1 and this title, any other provisions of this code relating specifically to public primary or secondary education, and an appendix of all other state laws relating to public primary or secondary education. The commissioner [and] shall provide for the distribution of the bulletin [manual] as determined by the board.

SECTION 7. Subdivision (40), Subsection (b), Section 7.055, Education Code, is transferred to Subchapter A, Chapter 21, Education Code, redesignated as Section 21.009, Education Code, and amended to read as follows:

Sec. 21.009. SUSPENSION RELATING TO COLLECTIVE BARGAINING OR STRIKES. [(40)] The commissioner shall suspend the certificate of an educator or permit of a teacher who violates Chapter 617, Government Code.

SECTION 8. Subchapter C, Chapter 7, Education Code, is amended by adding Section 7.064 to read as follows:

Sec. 7.064. ADVISORY COMMITTEE RULES. (a) The commissioner shall adopt rules, in compliance with Chapter 2110, Government Code, regarding an advisory committee that primarily functions to advise the commissioner or the agency, including rules governing an advisory committee's purpose, tasks, reporting requirements, and abolishment date.

(b) The commissioner may adopt rules under this section regarding an advisory committee's:

(1) size and quorum requirements;

(2) qualifications for membership, including experience requirements and geographic representation;

(3) appointment procedures;

(4) terms of service; and

(5) compliance with the requirements for open meetings under Chapter 551, Government Code.

SECTION 9. Section 12.102, Education Code, is amended to read as follows:

Sec. 12.102. AUTHORITY UNDER CHARTER. An open-enrollment charter school:

(1) shall provide instruction to students at one or more elementary or secondary grade levels as provided by the charter;

(2) is governed under the governing structure described by the charter;

(3) retains authority to operate under the charter:

(A) contingent on satisfactory student performance as provided by the charter in accordance with Section 12.111; and

(B) to the extent authorized under Section 12.1141; and

(4) does not have authority to impose taxes.

SECTION 10. Subsection (a), Section 12.111, Education Code, is amended to read as follows:

(a) Each charter granted under this subchapter must:

(1) describe the educational program to be offered, which must include the required curriculum as provided by Section 28.002;

(2) specify that the period for which the initial charter or any charter renewal is valid is eight years;

(3) provide that continuation or renewal of the charter is contingent on:

(A) acceptable student performance on assessment instruments adopted under Subchapter B, Chapter 39, and [on] compliance with any accountability provision specified by the charter, by a deadline or at intervals specified by the charter; and

(B) a determination by the commissioner under Section 12.1141;

(4) establish the level of student performance that is considered acceptable for purposes of Subdivision (3)(A) [(3)];

(5) specify any basis, in addition to a basis specified by this subchapter, on which the charter may be placed on probation or revoked or on which renewal of the charter may be denied;

(6) prohibit discrimination in admission policy on the basis of sex, national origin, ethnicity, religion, disability, academic, artistic, or athletic ability, or the district the child would otherwise attend in accordance with this code, although the charter may:

(A) provide for the exclusion of a student who has a documented history of a criminal offense, a juvenile court adjudication, or discipline problems under Subchapter A, Chapter 37; and

(B) provide for an admission policy that requires a student to demonstrate artistic ability if the school specializes in performing arts;

(7) specify the grade levels to be offered;

(8) describe the governing structure of the program, including:

(A) the officer positions designated;

(B) the manner in which officers are selected and removed from office;

(C) the manner in which members of the governing body of the school are selected and removed from office;

(D) the manner in which vacancies on that governing body are filled;

(E) the term for which members of that governing body serve; and

(F) whether the terms are to be staggered;

(9) specify the powers or duties of the governing body of the school that the governing body may delegate to an officer;

(10) specify the manner in which the school will distribute to parents information related to the qualifications of each professional employee of the program, including any professional or educational degree held by each employee, a statement of any certification under Subchapter B, Chapter 21, held by each employee, and any relevant experience of each employee;

(11) describe the process by which the person providing the program will adopt an annual budget;

(12) describe the manner in which an annual audit of the financial and programmatic operations of the program is to be conducted, including the manner in which the person providing the program will provide information necessary for the school district in which the program is located to participate, as required by this code or by State Board of Education rule, in the Public Education Information Management System (PEIMS);

(13) describe the facilities to be used;

(14) describe the geographical area served by the program; and

(15) specify any type of enrollment criteria to be used.

SECTION 11. Subsection (a), Section 12.1054, Education Code, is amended to read as follows:

(a) A member of the governing body of a charter holder, a member of the governing body of an open-enrollment charter school, or an officer of an open-enrollment charter school is considered to be a local public official for purposes of Chapter 171, Local Government Code. For purposes of that chapter:

(1) a member of the governing body of a charter holder or a member of the governing body or officer of an open-enrollment charter school is considered to have a substantial interest in a business entity if a person related to the member or officer in the third degree by consanguinity or in the second degree by affinity, as determined under Chapter 573, Government Code, has a substantial interest in the business entity under Section 171.002, Local Government Code; and

(2) notwithstanding any provision of Subdivision (1), employees [Section 12.1054(1), an employee] of an open-enrollment charter school rated as acceptable [or higher] under Section 39.054 for at least two of the preceding three school years may serve as members [a member] of the governing body of the charter holder or [of] the governing body of the school if the employees do not constitute a quorum of the governing body or any committee of the governing body; however, all members shall comply with the requirements of Sections 171.003-171.007, Local Government Code.

SECTION 12. Subchapter D, Chapter 12, Education Code, is amended by adding Section 12.1141 to read as follows:

Sec. 12.1141. RENEWAL OF CHARTER; REVIEW. (a) The charter of an open-enrollment charter school expires after eight years unless renewed by the commissioner.

(b) Under rules adopted by the commissioner, not later than the date on which a charter of an open-enrollment charter school expires under Subsection (a):

(1) a charter holder shall apply for a renewal of the charter; and

(2) the commissioner shall renew the charter for a term of eight years, deny renewal of the charter, or renew the charter on a probationary basis as provided by Subsection (e).

(c) The commissioner by rule shall establish a review process for the renewal of the charter of an open-enrollment charter school. In establishing a review process for renewal under this section, the commissioner shall:

(1) adopt clear standards for renewal, including academic, financial, and governance standards and other relevant standards as determined by the commissioner; and

(2) provide a streamlined review process for an open-enrollment charter school with a history of high academic and financial performance and no interventions or sanctions, including clear standards for eligibility for this process.

(d) In conducting a review for renewal under this section, the commissioner:

(1) shall consider the extent to which an open-enrollment charter school has:

(A) met the standards established under Subsection (c)(1); and

(B) operated in compliance with the terms of the school's charter; and

(2) may request from the school any information necessary, as determined by the commissioner, to make a determination under this section.

(e) The commissioner may renew the charter of an open-enrollment charter school on a probationary basis for a period of one year. The commissioner shall establish standards for improvement for a school renewed on a probationary basis. Following the probationary period under this subsection, the commissioner shall renew or deny renewal of the charter based on the school's performance on the standards for improvement, as determined by the commissioner.

(f) An open-enrollment charter school that intends to challenge a decision by the commissioner under this section must appeal the decision under the procedures provided under Section 12.116. An open-enrollment charter school may continue to operate pending an appeal under Section 12.116.

(g) Not later than September 1, 2014, the commissioner shall adopt rules for the implementation of this section. The rules may modify the expiration date of one or more charters as necessary to equalize the agency's annual renewal workload during the transition to the renewal system required by this section. This subsection expires October 1, 2014.

SECTION 13. Section 12.115, Education Code, is amended by adding Subsections (c) and (d) to read as follows:

(c) The commissioner shall establish separate performance standards for each of the actions authorized to be taken by the commissioner under Subsection (a).

(d) In making a determination under Subsection (a), the commissioner shall consider:

(1) the charter holder's history of violations of the charter or performance on accountability provisions prescribed by the charter;

(2) the number and severity of previous violations or unsatisfactory performance on accountability provisions;

(3) the charter holder's efforts to correct, and whether the charter holder corrected, previous violations or unsatisfactory performance on accountability provisions; and

(4) any other actions necessary to deter future violations or unsatisfactory performance on accountability provisions, as determined by the commissioner.

SECTION 14. The heading to Section 12.116, Education Code, is amended to read as follows:

Sec. 12.116. PROCEDURES [PROCEDURE] FOR MODIFICATION, PLACEMENT ON PROBATION, REVOCATION, OR DENIAL OF RENEWAL.

SECTION 15. Subsections (a) and (b), Section 12.116, Education Code, are amended to read as follows:

(a) The commissioner shall adopt procedures [a procedure] to be used for modifying, placing on probation, revoking, or denying renewal of the charter of an open-enrollment charter school.

(b) The procedures [procedure] adopted under Subsection (a) must provide an opportunity for a hearing to the charter holder and to parents and guardians of students in the school. A hearing under this subsection must be held at the facility at which the program is operated.

SECTION 16. Subsection (e), Section 12.1162, Education Code, is amended to read as follows:

(e) Immediately after a hearing under Subsection (d), the commissioner may [must] cease the action under Subsection (b) or impose additional sanctions as determined by the commissioner, including a sanction provision under Subchapter E, Chapter 39 [initiate action under Section 12.116].

SECTION 17. Subchapter D, Chapter 12, Education Code, is amended by adding Sections 12.1165, 12.1166, and 12.1167 to read as follows:

Sec. 12.1165. REVOCATION REQUIRED FOR FAILURE TO MEET ACADEMIC PERFORMANCE OR FINANCIAL ACCOUNTABILITY STANDARDS. (a) The commissioner shall revoke the charter of an open-enrollment charter school and order closure of all campuses and programs operated under the school's charter if the open-enrollment charter school:

(1) does not satisfy the academic performance standards under Section 39.053 or 39.054 for three consecutive years; or

(2) does not satisfy a financial accountability standard, as determined by the commissioner, for three consecutive years.

(b) Notwithstanding Section 12.116, a charter holder is not entitled to a hearing before the charter is revoked under this section. A revocation order under this section is final and may not be appealed.

(c) Before the commissioner orders revocation under Subsection (a), the charter holder may challenge under Section 39.151 an agency decision relating to an academic performance or financial accountability rating that affects the open-enrollment charter school.

(d) Not later than June 15 of each year, the agency shall provide to each open-enrollment charter school at risk of revocation of the school's charter under this section the school's academic performance and financial accountability ratings.

(e) The commissioner shall adopt rules to implement this section.

(e-1) The commissioner shall adopt initial rules under Subsection (e) not later than June 1, 2014. This subsection expires July 1, 2014.

Sec. 12.1166. REVOCATION FOR INSOLVENCY. (a) If the commissioner determines that an open-enrollment charter school does not have sufficient funding to complete the next school year, the commissioner may:

(1) before the beginning of the next school year or term, suspend the authority of all campuses under the school's charter to operate; and

(2) pursue revocation of the charter.

(b) Not later than the 10th day after the date the commissioner initiates action under Subsection (a), the commissioner shall provide the charter holder an opportunity for a hearing.

(c) If after a hearing under Subsection (b) the commissioner determines that the open-enrollment charter school does not have sufficient funding to complete the next school year, the commissioner must proceed with a revocation under this section. If after a hearing under Subsection (b) the commissioner determines that the open-enrollment charter school does have sufficient funding to complete the next school year, the commissioner must cease the action under Subsection (a), but may impose sanctions as determined by the commissioner, including a sanction under Subchapter E, Chapter 39.

(d) An open-enrollment charter school that intends to challenge a decision by the commissioner under this section must appeal the decision under the procedures provided under Section 12.116. The authority of an open-enrollment charter school to operate shall remain suspended under Subsection (a) pending an appeal under Section 12.116. The commissioner's decision following the appeal is final and may not be further appealed.

(e) The commissioner shall adopt rules for determining whether an open-enrollment charter school has sufficient funding to complete the next school year for purposes of this section.

(e-1) The commissioner shall adopt initial rules under Subsection (e) not later than March 1, 2014. This subsection expires April 1, 2014.

(f) Chapter 2001, Government Code, does not apply to a hearing under this section.

Sec. 12.1167. STUDENT'S BEST INTEREST STANDARD. In taking action under this subchapter, the commissioner may consider the best interest of an open-enrollment charter school's students.

SECTION 18. Section 12.118, Education Code, is amended to read as follows:

Sec. 12.118. EVALUATION OF OPEN-ENROLLMENT CHARTER SCHOOLS. (a) The commissioner shall designate an impartial organization with experience in evaluating school choice programs to conduct an [annual] evaluation of open-enrollment charter schools once every four years.

(b) An evaluation under this section must include an evaluation of cost, performance, or [consideration of the following items before implementing the charter and after implementing the charter:

[(1) students' scores on assessment instruments administered under Subchapter B, Chapter 39;

[(2) student attendance;

[(3) students' grades;

[(4) incidents involving student discipline;

[(5) socioeconomic data on students' families;

[(6) parents' satisfaction with their children's schools; and

[(7) students' satisfaction with their schools.

[(c) The evaluation of open-enrollment charter schools must also include an evaluation of:

[(1) the costs of instruction, administration, and transportation incurred by open-enrollment charter schools;

[(2) the effect of open-enrollment charter schools on school districts and on teachers, students, and parents in those districts; and

[(3)] other issues, as determined by the commissioner.

(c) Not later than December 1 of each year in which an evaluation is conducted under Subsection (a), the agency shall submit a report to the legislature regarding the findings of an evaluation conducted under this section. The report must include appropriate recommendations, as determined by the agency, to improve the performance and regulation of open-enrollment charter schools.

(c-1) The agency shall submit the first report required under Subsection (c) not later than December 1, 2016. This subsection expires January 1, 2017.

SECTION 19. Section 12.120, Education Code, is amended by adding Subsections (c), (c-1), and (c-2) to read as follows:

(c) A person may not serve as a member of the governing body of a charter holder if the person is related to another member of the same governing body in the third degree by consanguinity or in the second degree by affinity, as determined under Chapter 573, Government Code.

(c-1) Not later than September 1, 2015, a member of a governing board of a charter holder with a relationship described by Subsection (c) must be replaced to comply with the requirements of that subsection.

(c-2) This subsection and Subsection (c-1) expire October 1, 2015.

SECTION 20. Subchapter D, Chapter 12, Education Code, is amended by adding Section 12.1201 to read as follows:

Sec. 12.1201. MODIFICATION OF GOVERNANCE. (a) If the commissioner determines that the governing body of a charter holder is not providing adequate oversight of an open-enrollment charter school and other sanctions have not been effective, the commissioner may reconstitute the governing body.

(b) In reconstituting the governing body of a charter holder under this section, the commissioner shall appoint members to the governing body. In appointing members under this subsection the commissioner:

(1) shall consider:

(A) local input from community members and parents; and

(B) appropriate credentials and expertise for membership, including financial expertise, whether the person lives in the geographic area the charter holder serves, and whether the person is an educator; and

(2) may reappoint current members of the governing body.

(c) If a governing body of a charter holder subject to reconstitution under this section governs enterprises other than the open-enrollment charter school, the commissioner may require the charter holder to:

(1) create a new, single-purpose organization that is exempt from taxation under Section 501(c)(3), Internal Revenue Code of 1986, to govern the open-enrollment charter school; and

(2) surrender the charter to the commissioner for transfer to the organization created under Subdivision (1).

(d) The commissioner shall appoint the members of the governing body of an organization created under Subsection (c)(1).

(e) The authority granted to the commissioner under this section does not supersede the attorney general's authority over charitable organizations.

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

(f-1) The commissioner shall adopt initial rules under Subsection (f) not later than September 1, 2014. This subsection expires October 1, 2014.

SECTION 21. Subsection (a), Section 13.005, Education Code, is amended to read as follows:

(a) Except as provided by this section, Section 13.054, or [by] a local consolidation agreement under Section 13.158, the annexation of all or part of the territory of one district to another is effective on the first July 1 that is more than 30 days after the date of the order or ordinance accomplishing the annexation or of the declaration of the results of an election at which the transfer is approved.

SECTION 22. Subchapter B, Chapter 13, Education Code, is amended by adding Section 13.0521 to read as follows:

Sec. 13.0521. INSOLVENT OR INOPERATIVE DISTRICT. (a) The board of trustees of a school district may notify the commissioner that the district is unable to complete the current or subsequent school year for financial or other reasons. On notification, the commissioner shall investigate the finances and other circumstances of the district. If the commissioner determines that the district is unable to complete the current or subsequent school year, the commissioner shall report the district to the commissioners court of each county that contains district territory for annexation as provided by this section.

(b) If a district has failed to operate school for 10 or more days of its regular school year, the commissioner shall notify the district that it is subject to annexation under this section. The commissioner shall require the district to submit a plan not later than the 10th day after the date the commissioner provides notification describing how the district will complete the current school year and subsequent school year. If the district fails to submit a plan, or if the commissioner, after evaluating the district's plan, determines that the district cannot reasonably be expected to complete the current or subsequent school year, the commissioner shall report the district to the commissioners court of each county that contains district territory for annexation as provided by this section.

(c) Each commissioners court by order shall annex district territory within the county to one or more other districts in the county or to a contiguous district in an adjacent county, provided that the commissioners court of the adjacent county consents to the annexation. An annexation under this section must occur in an open meeting with opportunity for public comment.

(d) If a commissioners court fails to order annexation of district territory on or before the 60th day after the date the commissioner reports the district to the commissioners court, the commissioner shall order annexation of the territory to one or more other districts. The commissioner may annex the territory to a district in the same county or to a contiguous district in an adjacent county.

(e) The commissioners court or the commissioner, as applicable, shall specify the effective date for the annexation, which may not be later than the first anniversary of the date of the annexation order. The order shall identify the district or districts required to serve students residing in the district to be annexed through any school year that begins before the effective date of the annexation. A district required to serve students under this subsection shall provide services equivalent to those provided to the district's other students and shall be entitled to funding for the attendance and transportation of students served as required by the order.

(f) The annexation order shall define by legal boundary description the resulting territory of each district to which territory is annexed and shall be recorded in the minutes of the commissioners court.

(g) The governing board of a district to which territory is annexed is the governing board for the resulting district.

(h) Title to real property of the annexed district vests in the district to which the property is annexed. Each district to which territory is annexed assumes and is liable for any portion of the annexed district's indebtedness that is allocated to the receiving district under Section 13.004.

(i) A district to which territory is annexed under this section is entitled to incentive aid under Section 13.281, as determined by the commissioner, as if the district were created through consolidation.

(j) The annexation order shall provide for taxation of the territory annexed during the year in which the annexation takes place. Unless a different rate is required by Section 3-b, Article VII, Texas Constitution, the order shall provide for a levy of a tax at a rate equal to the maintenance and operations tax rate of the district to which the territory is annexed, plus any required interest and sinking fund tax.

(k) Except as otherwise provided by this subsection, this section does not affect the authority of the board of trustees of a district subject to annexation under this section to pursue consolidation under Subchapter D of this chapter or Subchapter B, Chapter 41. Actions authorized under this section may be taken pending the outcome of an election to consolidate districts under Subchapter D of this chapter or a decision to consolidate under Subchapter B, Chapter 41. An election to consolidate or a decision to consolidate under Subchapter B, Chapter 41, that occurs not later than the 60th day following the date an annexation order is entered under this section prevails over the annexation order if the proposition for consolidation is adopted in both districts, provided that a district required to serve students under Subsection (e) shall allow any student to attend school through the completion of the school year in which the effective date of a consolidation occurs. An election to consolidate or a decision to consolidate under Subchapter B, Chapter 41, that occurs later than the 60th day following the date an annexation order is entered under this section is void.

(l) Notwithstanding Section 13.009, a determination by the commissioner or a commissioners court under this section is final and may not be appealed.

(m) The commissioner may adopt rules to implement this section.

SECTION 23. Section 13.054, Education Code, is amended by amending Subsections (a), (b), and (d) and adding Subsection (h) to read as follows:

(a) The commissioner by order may annex to one or more [adjoining] districts a school district that has received an accreditation status of accredited-warned or accredited-probation, has failed to satisfy any standard under Section 39.054(e), or has failed to satisfy financial accountability standards as determined by commissioner rule [been rated as academically unacceptable] for a period of two consecutive years.

(b) The governing board of a district to which territory [of an academically unacceptable district] is annexed is the governing board for the new district.

(d) Title to the real property of the [academically unacceptable] district to be annexed vests in the district to which the property is annexed. Each district to which territory is annexed assumes and is liable for any portion of the [academically unacceptable district's] indebtedness of the district to be annexed that is allocated to the receiving district under Section 13.004.

(h) Notwithstanding Section 13.005, the commissioner may provide for an alternate effective date for an annexation under this section if the alternate date is in the best interest of students.

SECTION 24. Subsections (a), (b-1), and (f), Section 21.0031, Education Code, are amended 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 commissioner [State Board for Educator Certification];

(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-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 commissioner [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 commissioner [State Board for Educator Certification].

(f) For purposes of this section, a certificate or permit is not considered to have expired if:

(1) the employee has completed the requirements for renewal of the certificate or permit;

(2) the employee submitted the request for renewal prior to the expiration date; and

(3) the date the certificate or permit would have expired is before the date the commissioner [State Board for Educator Certification] takes action to approve the renewal of the certificate or permit.

SECTION 25. Subsections (a), (b), (c), (d), and (e), Section 21.004, Education Code, are amended to read as follows:

(a) To the extent that funds are available, the agency[, the State Board for Educator Certification,] and the Texas Higher Education Coordinating Board shall develop and implement programs to identify talented students and recruit those students and persons, including high school and undergraduate students, mid-career and retired professionals, honorably discharged and retired military personnel, and members of underrepresented gender and ethnic groups, into the teaching profession.

(b) From available funds, the agency[, the State Board for Educator Certification,] and the Texas Higher Education Coordinating Board shall develop and distribute materials that emphasize the importance of the teaching profession and inform individuals about state-funded loan forgiveness and tuition assistance programs.

(c) The commissioner, in cooperation with the commissioner of higher education [and the executive director of the State Board for Educator Certification], shall annually identify the need for teachers in specific subject areas and geographic regions and among underrepresented groups. The commissioner shall give priority to developing and implementing recruitment programs to address those needs from the agency's discretionary funds.

(d) The agency[, the State Board for Educator Certification,] and the Texas Higher Education Coordinating Board shall encourage the business community to cooperate with local schools to develop recruiting programs designed to attract and retain capable teachers, including programs to provide summer employment opportunities for teachers.

(e) The agency[, the State Board for Educator Certification,] and the Texas Higher Education Coordinating Board shall encourage major education associations to cooperate in developing a long-range program promoting teaching as a career and to assist in identifying local activities and resources that may be used to promote the teaching profession.

SECTION 26. Subsections (b), (b-1), (c), (d), (e), (f), and (g), Section 21.006, Education Code, are amended to read as follows:

(b) In addition to the reporting requirement under Section 261.101, Family Code, the superintendent or director of a school district, open-enrollment charter school, regional education service center, or shared services arrangement shall notify the commissioner [State Board for Educator Certification] if [the superintendent or director has reasonable cause to believe that]:

(1) an educator [employed by or] seeking employment by the district, school, service center, or shared services arrangement has a criminal record or the criminal record of an educator employed by the district, school, service center, or shared services arrangement changes, as determined by commissioner rule;

(2) an educator's employment at the district, school, service center, or shared services arrangement was terminated based on a determination that the educator:

(A) abused or otherwise committed an unlawful act with a student or minor;

(A-1) was involved in a romantic relationship with or solicited or engaged in sexual contact with a student or minor;

(B) possessed, transferred, sold, or distributed a controlled substance, as defined by Chapter 481, Health and Safety Code, or by 21 U.S.C. Section 801 et seq.[, and its subsequent amendments];

(C) illegally transferred, appropriated, or expended funds or other property of the district, school, service center, or shared services arrangement;

(D) attempted by fraudulent or unauthorized means to obtain or alter a professional certificate or license for the purpose of promotion or additional compensation; or

(E) committed a criminal offense or any part of a criminal offense on school property or at a school-sponsored event;

(3) the educator resigned and reasonable evidence supports a recommendation by the superintendent or director to terminate the educator based on a determination that the educator engaged in misconduct described by Subdivision (2); or

(4) the educator engaged in conduct that violated the assessment instrument security procedures established under Section 39.0301.

(b-1) A superintendent or director of a school district or open-enrollment charter school shall complete an investigation of an educator that is based on a reasonable suspicion [cause] to believe the educator may have engaged in misconduct described by Subsection (b)(2)(A) or (A-1), despite the educator's resignation from district or school employment before completion of the investigation. The agency shall establish procedures for an investigation under this subsection.

(c) The superintendent or director must notify the commissioner [State Board for Educator Certification] by filing a report with the commissioner [board] not later than the seventh day after the date the superintendent or director first learns about a change in an employee's criminal record under Subsection (b)(1) or a termination of employment or resignation following an alleged incident of misconduct described by Subsection (b). The report must be:

(1) in writing; and

(2) in a form prescribed by the commissioner [board].

(d) The superintendent or director shall notify the board of trustees or governing body of the school district, open-enrollment charter school, regional education service center, or shared services arrangement and the educator of the filing of the report required by Subsection (c).

(e) A superintendent or director who in good faith and while acting in an official capacity files a report with the commissioner [State Board for Educator Certification] under this section is immune from civil or criminal liability that might otherwise be incurred or imposed.

(f) The commissioner [State Board for Educator Certification] shall determine whether to impose sanctions against a superintendent or director who fails to file a report in violation of Subsection (c).

(g) The commissioner [State Board for Educator Certification] shall adopt [propose] rules as necessary to implement this section.

SECTION 27. Subsections (b), (c), (d), (e), and (f), Section 21.007, Education Code, are amended to read as follows:

(b) The commissioner [board] shall adopt a procedure for placing a notice of alleged misconduct on an educator's public certification records. The procedure adopted by the commissioner [board] must provide for immediate placement of a notice of alleged misconduct on an educator's public certification records if the alleged misconduct presents a risk to the health, safety, or welfare of a student or minor as determined by the commissioner [board].

(c) The commissioner [board] must notify an educator in writing when placing a notice of an alleged incident of misconduct on the public certification records of the educator.

(d) The commissioner [board] must provide an opportunity for an educator to show cause why the notice should not be placed on the educator's public certification records. The commissioner [board] shall adopt [propose] rules establishing the length of time that a notice may remain on the educator's public certification records before the commissioner [board] must:

(1) initiate a proceeding to impose a sanction on the educator on the basis of the alleged misconduct; or

(2) remove the notice from the educator's public certification records.

(e) If it is determined that the educator has not engaged in the alleged incident of misconduct, the commissioner [board] shall immediately remove the notice from the educator's public certification records.

(f) The commissioner [board] shall adopt [propose] rules necessary to administer this section.

SECTION 28. Section 21.031, Education Code, is amended to read as follows:

Sec. 21.031. COMMISSIONER ROLE IN CERTIFICATION OF EDUCATORS [PURPOSE]. (a) [The State Board for Educator Certification is established to recognize public school educators as professionals and to grant educators the authority to govern the standards of their profession.] The commissioner [board] shall regulate and oversee all aspects of the certification, continuing education, and standards of conduct of public school educators.

(b) In adopting [proposing] rules under this subchapter, the commissioner [board] shall ensure that all candidates for certification or renewal of certification demonstrate the knowledge and skills necessary to improve the performance of the diverse student population of this state.

SECTION 29. Section 21.040, Education Code, is amended to read as follows:

Sec. 21.040. ADVISORY COMMITTEE [GENERAL POWERS AND DUTIES OF BOARD]. (a) The commissioner [board] shall[:

[(1) supervise the executive director's performance;

[(2) approve an operating budget for the board and make a request for appropriations;

[(3) appoint the members of any advisory committee to the board;

[(4) for each class of educator certificate,] appoint an advisory committee [composed of members of that class] to recommend standards for educator certification and educator preparation programs [that class] to the commissioner [board;

[(5) provide to its members and employees, as often as necessary, information regarding their qualifications for office or employment under this chapter and their responsibilities under applicable laws relating to standards of conduct for state officers or employees;

[(6) develop and implement policies that clearly define the respective responsibilities of the board and the board's staff; and

[(7) execute interagency contracts to perform routine administrative functions].

(b) In appointing the members of the advisory committee established under this section, the commissioner shall ensure the committee has a balanced representation of teachers, administrators, school counselors, and representatives of both traditional and alternative certification educator preparation programs.

SECTION 30. Subsections (b), (c), and (d), Section 21.041, Education Code, are amended to read as follows:

(b) The commissioner [board] shall adopt [propose] rules that:

(1) provide for the regulation of educators and the general administration of this subchapter in a manner consistent with this subchapter;

(2) specify the classes of educator certificates to be issued, including emergency certificates;

(3) specify the period for which each class of educator certificate is valid;

(4) specify the requirements for the issuance and renewal of an educator certificate;

(5) provide for the issuance of an educator certificate to a person who holds a similar certificate issued by another state or foreign country, subject to Section 21.052;

(6) provide for special or restricted certification of educators, including certification of instructors of American Sign Language;

(7) provide for disciplinary proceedings, including the suspension or revocation of an educator certificate, as provided by Chapter 2001, Government Code;

(8) provide for the adoption, amendment, and enforcement of an educator's code of ethics;

(9) provide for continuing education requirements; and

(10) provide for certification of persons performing appraisals under Subchapter H.

(c) The commissioner [board] shall adopt [propose] a rule establishing [adopting] a fee for the issuance and maintenance of an educator certificate that, when combined with any fees imposed under Subsection (d), is adequate to cover the cost of administration of this subchapter.

(d) The commissioner [board] may adopt [propose] a rule establishing [adopting] a fee for the approval or renewal of approval of an educator preparation program, or for the addition of a certificate or field of certification to the scope of a program's approval. A fee imposed under this subsection may not exceed the amount necessary, as determined by the commissioner [board], to provide for the administrative cost of approving, renewing the approval of, and appropriately ensuring the accountability of educator preparation programs under this subchapter.

SECTION 31. Section 21.044, Education Code, as amended by Chapters 635 (S.B. 866) and 926 (S.B. 1620), Acts of the 82nd Legislature, Regular Session, 2011, is reenacted and amended to read as follows:

Sec. 21.044. EDUCATOR PREPARATION. (a) The commissioner [board] shall adopt [propose] rules establishing the training requirements a person must accomplish to obtain a certificate, enter an internship, or enter an induction-year program. The commissioner [board] shall specify the minimum academic qualifications required for a certificate.

(b) Any minimum academic qualifications for a certificate specified under Subsection (a) that require a person to possess a bachelor's degree must also require that the person receive, as part of the curriculum for that degree, instruction in detection and education of students with dyslexia. This subsection does not apply to a person who obtains a certificate through an alternative certification program adopted under Section 21.049.

(c) The instruction under Subsection (b) must:

(1) be developed by a panel of experts in the diagnosis and treatment of dyslexia who are:

(A) employed by institutions of higher education; and

(B) approved by the commissioner [board]; and

(2) include information on:

(A) characteristics of dyslexia;

(B) identification of dyslexia; and

(C) effective, multisensory strategies for teaching students with dyslexia.

(d) [(b)] In adopting [proposing] rules under this section, the commissioner [board] shall specify that to obtain a certificate to teach an "applied STEM course," as that term is defined by Section 28.027, at a secondary school, a person must:

(1) pass the certification test administered by the recognized national or international business and industry group that created the curriculum the applied STEM course is based on; and

(2) have at a minimum:

(A) an associate degree from an accredited institution of higher education; and

(B) three years of work experience in an occupation for which the applied STEM course is intended to prepare the student.

SECTION 32. Section 21.045, Education Code, is amended to read as follows:

Sec. 21.045. ACCOUNTABILITY SYSTEM FOR EDUCATOR PREPARATION PROGRAMS; PROGRAM APPROVAL AND RENEWAL. (a) The commissioner [board] shall adopt [propose] rules establishing standards to govern the approval and continuing accountability of all educator preparation programs based on the following information that is disaggregated with respect to sex and ethnicity:

(1) results of the certification examinations prescribed under Section 21.048(a);

(2) performance based on the appraisal system for beginning teachers adopted by the commissioner [board];

(3) achievement, including improvement in achievement, of students taught by beginning teachers for the first three years following certification, to the extent practicable; and

(4) compliance with commissioner [board] requirements regarding the frequency, duration, and quality of structural guidance and ongoing support provided by field supervisors to beginning teachers during their first year in the classroom.

(b) Each educator preparation program shall submit data elements as required by the commissioner [board] for an annual performance report to ensure access and equity. At a minimum, the annual report must contain the performance data from Subsection (a), other than the data required for purposes of Subsection (a)(3), and the following information, disaggregated by sex and ethnicity:

(1) the number of candidates who apply;

(2) the number of candidates admitted;

(3) the number of candidates retained;

(4) the number of candidates completing the program;

(5) the number of candidates employed in the profession after completing the program;

(6) the number of candidates retained in the profession; and

(7) any other information required by federal law.

(c) The commissioner [board] shall adopt [propose] rules establishing performance standards for the Accountability System for Educator Preparation for accrediting educator preparation programs. At a minimum, performance standards must be based on Subsection (a).

(d) The commissioner shall adopt [board may propose] rules establishing minimum standards for approval or renewal of approval of:

(1) educator preparation programs; or

(2) certification fields authorized to be offered by an educator preparation program.

(e) In adopting rules establishing minimum standards for renewal of approval of educator preparation programs under Subsection (d)(1), the commissioner shall require that each educator preparation program obtain renewal of approval every five years. The commissioner shall adopt an evaluation process to be used for purposes of educator preparation program renewal. To be eligible for renewal and continued accreditation, an educator preparation program must meet basic standards and requirements to adequately prepare candidates for educator certification, as determined by the commissioner.

SECTION 33. The heading to Section 21.0451, Education Code, is amended to read as follows:

Sec. 21.0451. SANCTIONS [UNDER ACCOUNTABILITY SYSTEM] FOR EDUCATOR PREPARATION PROGRAMS.

SECTION 34. Section 21.0451, Education Code, is amended by amending Subsection (a) and adding Subsections (e) and (f) to read as follows:

(a) The commissioner [board] shall adopt [propose] rules for the sanction of educator preparation programs that do not meet accountability standards or comply with state law or commissioner rules and shall annually review the accreditation status of each educator preparation program. The rules:

(1) shall provide for the assignment of the following accreditation statuses:

(A) not rated;

(B) accredited;

(C) accredited-warned;

(D) accredited-probation; and

(E) not accredited-revoked;

(2) may provide for the agency to take any necessary action, including one or more of the following actions:

(A) requiring the program to obtain technical assistance approved by the agency [or board];

(B) requiring the program to obtain professional services under contract with another person;

(C) appointing a monitor to participate in and report to the commissioner [board] on the activities of the program; and

(D) if a program has been rated as accredited-probation [under the Accountability System for Educator Preparation] for a period of at least one year, revoking the approval of the program and ordering the program to be closed, provided that the [board or] agency must provide the opportunity for a hearing before the effective date of the closure; and

(3) shall provide for the agency to revoke the approval of the program and order the program to be closed if the program has been rated as accredited-probation [under the Accountability System for Educator Preparation] for three consecutive years, provided that the [board or] agency must provide the opportunity for a hearing before the effective date of the closure.

(e) The commissioner shall adopt procedures to ensure that sanctions under this section are applied fairly.

(f) The commissioner shall:

(1) provide information regarding sanctions under this section to each educator preparation program; and

(2) provide information to at-risk educator preparation programs about sanctions the specific program could face, including the consequences of those sanctions, a timeline for the program to comply with rules and meet accreditation standards, and how to appeal a sanction under this section.

SECTION 35. Section 21.0452, Education Code, is amended to read as follows:

Sec. 21.0452. CONSUMER INFORMATION REGARDING EDUCATOR PREPARATION PROGRAMS. (a) To assist persons interested in obtaining teaching certification in selecting an educator preparation program and assist school districts in making staffing decisions, the commissioner [board] shall make information regarding educator programs in this state available to the public through the agency's [board's] Internet website.

(b) The commissioner [board] shall make available at least the following information regarding each educator preparation program:

(1) the information specified in Sections 21.045(a) and (b);

(2) in addition to any other appropriate information indicating the quality of persons admitted to the program, the average academic qualifications possessed by persons admitted to the program, including:

(A) average overall grade point average and average grade point average in specific subject areas; and

(B) average scores on the Scholastic Assessment Test (SAT), the American College Test (ACT), or the Graduate Record Examination (GRE), as applicable;

(3) the degree to which persons who complete the program are successful in obtaining teaching positions;

(4) the extent to which the program prepares teachers, including general education teachers and special education teachers, to effectively teach:

(A) students with disabilities; and

(B) students of limited English proficiency, as defined by Section 29.052;

(5) the activities offered by the program that are designed to prepare teachers to:

(A) integrate technology effectively into curricula and instruction, including activities consistent with the principles of universal design for learning; and

(B) use technology effectively to collect, manage, and analyze data to improve teaching and learning for the purpose of increasing student academic achievement;

(6) the perseverance of beginning teachers in the profession, as determined on the basis of the number of beginning teachers who maintain status as active contributing members in the Teacher Retirement System of Texas for at least three years after certification in comparison to similar programs;

(7) the results of exit surveys given to program participants on completion of the program that involve evaluation of the program's effectiveness in preparing participants to succeed in the classroom; and

(8) the results of surveys given to school principals that involve evaluation of the program's effectiveness in preparing participants to succeed in the classroom, based on experience with employed program participants.

(c) For purposes of Subsection (b)(7), the commissioner [board] shall require an educator preparation program to distribute an exit survey that a program participant must complete before the participant is eligible to receive a certificate under this subchapter.

(d) For purposes of Subsections (b)(7) and (8), the commissioner [board] shall develop surveys for distribution to program participants and school principals.

(e) The commissioner [board] may develop procedures under which each educator preparation program receives a designation or ranking based on the information required to be made available under Subsection (b). If the commissioner [board] develops procedures under this subsection, the designation or ranking received by each program must be included in the information made available under this section.

(f) In addition to other information required to be made available under this section, the commissioner [board] shall provide information identifying employment opportunities for teachers in the various regions of this state. The commissioner [board] shall specifically identify each region of this state in which a shortage of qualified teachers exists.

(g) The commissioner [board] may require any person to provide information to the commissioner [board] for purposes of this section.

SECTION 36. Subchapter B, Chapter 21, Education Code, is amended by adding Sections 21.0454 and 21.0455 to read as follows:

Sec. 21.0454. RISK FACTORS FOR EDUCATOR PREPARATION PROGRAMS; RISK-ASSESSMENT MODEL. (a) The commissioner shall develop a set of risk factors to use in assessing the overall risk level of each educator preparation program. The set of risk factors must include:

(1) a history of the program's compliance with state law and commissioner rules, standards, and procedures;

(2) the program's operational standards;

(3) whether the program meets the accountability standards under Section 21.045; and

(4) whether the program is accredited by other organizations.

(b) The agency shall use the set of risk factors developed under Subsection (a) to guide the agency in conducting monitoring, inspections, and compliance audits of educator preparation programs, including evaluations associated with renewals under Section 21.045(e).

Sec. 21.0455. COMPLAINTS REGARDING EDUCATOR PREPARATION PROGRAMS. (a) The commissioner shall adopt rules establishing a process for a candidate for teacher certification to direct a complaint against an educator preparation program to the agency.

(b) The commissioner by rule shall require an educator preparation program to notify candidates for teacher certification of the complaint process adopted under Subsection (a). The notice must include the name, mailing address, telephone number, and Internet website address of the agency for the purpose of directing complaints to the agency. The educator preparation program shall provide for that notification:

(1) on the Internet website of the educator preparation program, if the program maintains a website;

(2) on a sign prominently displayed in program facilities; and

(3) in any newsletter distributed by the educator preparation program, if the program distributes a newsletter.

(c) The commissioner shall post the complaint process adopted under Subsection (a) on the agency's Internet website.

(d) The agency has no authority to arbitrate or resolve contractual or commercial issues between an educator preparation program and a candidate for teacher certification.

SECTION 37. Subsections (c) and (d), Section 21.046, Education Code, are amended to read as follows:

(c) Because an effective principal is essential to school improvement, the commissioner [board] shall ensure that:

(1) each candidate for certification as a principal is of the highest caliber; and

(2) multi-level screening processes, validated comprehensive assessment programs, and flexible internships with successful mentors exist to determine whether a candidate for certification as a principal possesses the essential knowledge, skills, and leadership capabilities necessary for success.

(d) In creating the qualifications for certification as a principal, the commissioner [board] shall consider the knowledge, skills, and proficiencies for principals as developed by relevant national organizations and the State Board of Education.

SECTION 38. Subsections (a) and (b), Section 21.047, Education Code, are amended to read as follows:

(a) The commissioner [board] may develop the process for the establishment of centers for professional development through institutions of higher education for the purpose of integrating technology and innovative teaching practices in the preservice and staff development training of public school teachers and administrators. An institution of higher education with a teacher education program may develop a center through a collaborative process involving public schools, regional education service centers, and other entities or businesses. A center may contract with other entities to develop materials and provide training.

(b) On application by a center, the commissioner [board] shall make grants to the center for its programs from funds derived from gifts, grants, and legislative appropriations for that purpose. The commissioner [board] shall award the grants on a competitive basis according to requirements established by commissioner [the board] rules.

SECTION 39. Subsections (a), (b), and (c), Section 21.048, Education Code, are amended to read as follows:

(a) The commissioner [board] shall adopt [propose] rules prescribing comprehensive examinations for each class of certificate issued by the commissioner [board].

(b) The commissioner [board] may not administer a written examination to determine the competence or level of performance of an educator who has a hearing impairment unless the examination has been field tested to determine its appropriateness, reliability, and validity as applied to, and minimum acceptable performance scores for, persons with hearing impairments.

(c) An educator who has a hearing impairment is exempt from taking a written examination for a period ending on the first anniversary of the date on which the commissioner [board] determines, on the basis of appropriate field tests, that the examination complies with the standards specified in Subsection (b). On application to the commissioner [board], the commissioner [board] shall issue a temporary exemption certificate to a person entitled to an exemption under this subsection.

SECTION 40. Section 21.0481, Education Code, is amended to read as follows:

Sec. 21.0481. MASTER READING TEACHER CERTIFICATION. (a) To ensure that there are teachers with special training to work with other teachers and with students in order to improve student reading performance, the commissioner [board] shall establish a master reading teacher certificate.

(b) The commissioner [board] shall issue a master reading teacher certificate to each eligible person.

(c) To be eligible for a master reading teacher certificate, a person must:

(1) hold a reading specialist certificate issued under this subchapter and satisfactorily complete a course of instruction as prescribed under Subdivision (2)(B); or

(2) hold a teaching certificate issued under this subchapter and:

(A) have at least three years of teaching experience;

(B) satisfactorily complete a knowledge-based and skills-based course of instruction on the science of teaching children to read that includes training in:

(i) effective reading instruction techniques, including effective techniques for students whose primary language is a language other than English;

(ii) identification of dyslexia and related reading disorders and effective reading instruction techniques for students with those disorders; and

(iii) effective professional peer mentoring techniques;

(C) perform satisfactorily on the master reading teacher certification examination prescribed by the commissioner [board]; and

(D) satisfy any other requirements prescribed by the commissioner [board].

SECTION 41. Section 21.0482, Education Code, is amended to read as follows:

Sec. 21.0482. MASTER MATHEMATICS TEACHER CERTIFICATION. (a) To ensure that there are teachers with special training to work with other teachers and with students in order to improve student mathematics performance, the commissioner [board] shall establish:

(1) a master mathematics teacher certificate to teach mathematics at elementary school grade levels;

(2) a master mathematics teacher certificate to teach mathematics at middle school grade levels; and

(3) a master mathematics teacher certificate to teach mathematics at high school grade levels.

(b) The commissioner [board] shall issue the appropriate master mathematics teacher certificate to each eligible person.

(c) To be eligible for a master mathematics teacher certificate, a person must:

(1) hold a teaching certificate issued under this subchapter;

(2) have at least three years of teaching experience;

(3) satisfactorily complete a knowledge-based course of instruction on the science of teaching children mathematics that includes training in mathematics instruction and professional peer mentoring techniques that, through scientific testing, have been proven effective;

(4) perform satisfactorily on the appropriate master mathematics teacher certification examination prescribed by the commissioner [board]; and

(5) satisfy any other requirements prescribed by the commissioner [board].

(d) The course of instruction prescribed under Subsection (c)(3) shall be developed by the commissioner [board] in consultation with mathematics and science faculty members at institutions of higher education.

SECTION 42. Section 21.0483, Education Code, is amended to read as follows:

Sec. 21.0483. MASTER TECHNOLOGY TEACHER CERTIFICATION. (a) To ensure that there are teachers with special training to work with other teachers and with students in order to increase the use of technology in each classroom, the commissioner [board] shall establish a master technology teacher certificate.

(b) The commissioner [board] shall issue a master technology teacher certificate to each eligible person.

(c) To be eligible for a master technology teacher certificate, a person must:

(1) hold a technology applications or Technology Education certificate issued under this subchapter, satisfactorily complete the course of instruction prescribed under Subdivision (2)(B), and satisfactorily perform on the examination prescribed under Subdivision (2)(C); or

(2) hold a teaching certificate issued under this subchapter and:

(A) have at least three years of teaching experience;

(B) satisfactorily complete a knowledge-based and skills-based course of instruction on interdisciplinary technology applications and the science of teaching technology that includes training in:

(i) effective technology instruction techniques, including applications designed to meet the educational needs of students with disabilities;

(ii) classroom teaching methodology that engages student learning through the integration of technology;

(iii) digital learning competencies, including Internet research, graphics, animation, website mastering, and video technologies;

(iv) curriculum models designed to prepare teachers to facilitate an active student learning environment; and

(v) effective professional peer mentoring techniques;

(C) satisfactorily perform on an examination administered at the conclusion of the course of instruction prescribed under Paragraph (B); and

(D) satisfy any other requirements prescribed by the commissioner [board].

(d) The commissioner [board] may provide technology applications training courses under Subsection (c)(2)(B) in cooperation with:

(1) regional education service centers; and

(2) other public or private entities, including any state council on technology.

SECTION 43. Section 21.0484, Education Code, is amended to read as follows:

Sec. 21.0484. MASTER SCIENCE TEACHER CERTIFICATION. (a) To ensure that there are teachers with special training to work with other teachers and with students in order to improve student science performance, the commissioner [board] shall establish:

(1) a master science teacher certificate to teach science at elementary school grade levels;

(2) a master science teacher certificate to teach science at middle school grade levels; and

(3) a master science teacher certificate to teach science at high school grade levels.

(b) The commissioner [board] shall issue the appropriate master science teacher certificate to each eligible person.

(c) To be eligible for a master science teacher certificate, a person must:

(1) hold a teaching certificate issued under this subchapter;

(2) have at least three years of teaching experience;

(3) satisfactorily complete a knowledge-based course of instruction on the science of teaching children science that includes training in science instruction and professional peer mentoring techniques that, through scientific testing, have been proven effective;

(4) perform satisfactorily on the appropriate master science teacher certification examination prescribed by the commissioner [board]; and

(5) satisfy any other requirements prescribed by the commissioner [board].

(d) The course of instruction prescribed under Subsection (c)(3) shall be developed by the commissioner [board] in consultation with science faculty members at institutions of higher education.

SECTION 44. Subsection (a), Section 21.0485, Education Code, is amended to read as follows:

(a) To be eligible to be issued a certificate to teach students with visual impairments, a person must:

(1) complete either:

(A) all course work required for that certification in an approved educator preparation program; or

(B) an alternative educator certification program approved for the purpose by the commissioner [board];

(2) perform satisfactorily on each examination prescribed under Section 21.048 for certification to teach students with visual impairments, after completing the course work or program described by Subdivision (1); and

(3) satisfy any other requirements prescribed by the commissioner [board].

SECTION 45. Section 21.049, Education Code, is amended to read as follows:

Sec. 21.049. ALTERNATIVE CERTIFICATION. (a) To provide a continuing additional source of qualified educators, the commissioner [board] shall adopt [propose] rules providing for educator certification programs as an alternative to traditional educator preparation programs. The rules may not provide that a person may be certified under this section only if there is a demonstrated shortage of educators in a school district or subject area.

(b) The commissioner [board] may not require a person employed as a teacher in an alternative education program under Section 37.008 or a juvenile justice alternative education program under Section 37.011 for at least three years to complete an alternative educator certification program adopted under this section before taking the appropriate certification examination.

SECTION 46. Subsections (a) and (b), Section 21.050, Education Code, are amended to read as follows:

(a) A person who applies for a teaching certificate for which commissioner [board] rules require a bachelor's degree must possess a bachelor's degree received with an academic major or interdisciplinary academic major, including reading, other than education, that is related to the curriculum as prescribed under Subchapter A, Chapter 28.

(b) The commissioner [board] may not require more than 18 semester credit hours of education courses at the baccalaureate level for the granting of a teaching certificate. The commissioner [board] shall provide for a minimum number of semester credit hours of internship to be included in the hours needed for certification. The commissioner [board] may adopt [propose] rules requiring additional credit hours for certification in bilingual education, English as a second language, early childhood education, or special education.

SECTION 47. Subsections (c), (d), (e), and (f), Section 21.051, Education Code, are amended to read as follows:

(c) Subsection (b) applies only to an initial certification issued on or after September 1, 2012. Subsection (b) does not affect:

(1) the validity of a certification issued before September 1, 2012; or

(2) the eligibility of a person who holds a certification issued before September 1, 2012, to obtain a subsequent renewal of the certification in accordance with commissioner [board] rule.

(d) Subsection (b) does not affect the period within which an individual must complete field-based experience hours as determined by commissioner [board] rule if the individual is not accepted into an educator preparation program before the deadline prescribed by commissioner [board] rule and is hired for a teaching assignment by a school district after the deadline prescribed by commissioner [board] rule.

(e) The commissioner [board] shall adopt [propose] rules relating to the field-based experience required by Subsection (b), including rules establishing[. The commissioner by rule shall adopt] procedures and standards for recognizing a private school under Subsection (b)(2).

(f) The commissioner [board] shall adopt [propose] rules providing flexible options for persons for any field-based experience or internship required for certification.

SECTION 48. Subsections (a), (c), (d), (e), (f), and (h), Section 21.052, Education Code, are amended to read as follows:

(a) The commissioner [board] may issue a certificate to an educator who applies for a certificate and:

(1) holds:

(A) a degree issued by an institution accredited by a regional accrediting agency or group that is recognized by a nationally recognized accreditation board; or

(B) a degree issued by an institution located in a foreign country, if the degree is equivalent to a degree described by Paragraph (A);

(2) holds an appropriate certificate or other credential issued by another state or country; and

(3) performs satisfactorily on:

(A) the examination prescribed under Section 21.048; or

(B) if the educator holds a certificate or other credential issued by another state or country, an examination similar to and at least as rigorous as that described by Paragraph (A) administered to the educator under the authority of that state.

(c) The commissioner [board] may issue a temporary certificate under this section to an educator who holds a degree required by Subsection (a)(1) and a certificate or other credential required by Subsection (a)(2) but who has not satisfied the requirements prescribed by Subsection (a)(3). Subject to Subsection (d), the commissioner [board] may specify the term of a temporary certificate issued under this subsection.

(d) A temporary certificate issued under Subsection (c) to an educator employed by a school district that has constructed or expanded at least one instructional facility as a result of increased student enrollment due to actions taken under the Defense Base Closure and Realignment Act of 1990 (10 U.S.C. Section 2687) may not expire before the first anniversary of the date on which the commissioner [board] completes the review of the educator's credentials and informs the educator of the examination or examinations under Section 21.048 on which the educator must perform successfully to receive a standard certificate.

(e) An educator who has submitted all documents required by the commissioner [board] for certification and who receives a certificate as provided by Subsection (a) must perform satisfactorily on the examination prescribed under Section 21.048 not later than the first anniversary of the date the commissioner [board] completes the review of the educator's credentials and informs the educator of the examination or examinations under Section 21.048 on which the educator must perform successfully to receive a standard certificate.

(f) The commissioner [board] shall post on the commissioner's [board's] Internet website the procedures for obtaining a certificate under Subsection (a).

(h) This subsection applies only to an applicant who holds a certificate or other credential issued by another state in mathematics, science, special education, or bilingual education, or another subject area that the commissioner determines has a shortage of teachers. In any state fiscal year, the commissioner [board] shall accept or reject, not later than the 14th day after the date the commissioner [board] receives the completed application, at least 90 percent of the applications the commissioner [board] receives for a certificate under this subsection, and shall accept or reject all completed applications the commissioner [board] receives under this subsection not later than the 30th day after the date the commissioner [board] receives the completed application. An applicant under this subsection must submit:

(1) a letter of good standing from the state in which the teacher is certified on a form determined by the commissioner [board];

(2) information necessary to complete a national criminal history record information review; and

(3) an application fee as required by the commissioner [board].

SECTION 49. Subsection (a), Section 21.054, Education Code, is amended to read as follows:

(a) The commissioner [board] shall adopt [propose] rules establishing a process for identifying continuing education courses and programs that fulfill educators' continuing education requirements.

SECTION 50. Subsection (a), Section 21.055, Education Code, is amended to read as follows:

(a) As provided by this section, a school district may issue a school district teaching permit and employ as a teacher a person who does not hold a teaching certificate issued by the commissioner [board].

SECTION 51. Section 21.056, Education Code, is amended to read as follows:

Sec. 21.056. ADDITIONAL CERTIFICATION. The commissioner [board] by rule shall provide for a certified educator to qualify for additional certification to teach at a grade level or in a subject area not covered by the educator's certificate upon satisfactory completion of an examination or other assessment of the educator's qualification.

SECTION 52. Subsection (d), Section 21.057, Education Code, is amended to read as follows:

(d) For purposes of this section, "inappropriately certified or uncertified teacher":

(1) includes:

(A) an individual serving on an emergency certificate issued under Section 21.041(b)(2); or

(B) an individual who does not hold any certificate or permit issued under this chapter and is not employed as specified by Subdivision (2)(E); and

(2) does not include an individual:

(A) who is a certified teacher assigned to teach a class or classes outside his or her area of certification, as determined by rules adopted [proposed] by the commissioner [board] in specifying the certificate required for each assignment;

(B) serving on a certificate issued due to a hearing impairment under Section 21.048;

(C) serving on a certificate issued pursuant to enrollment in an approved alternative certification program under Section 21.049;

(D) certified by another state or country and serving on a certificate issued under Section 21.052;

(E) serving on a school district teaching permit issued under Section 21.055; or

(F) employed under a waiver granted by the commissioner pursuant to Section 7.056.

SECTION 53. Subsections (b) and (d), Section 21.058, Education Code, are amended to read as follows:

(b) Notwithstanding Section 21.041(b)(7), not later than the fifth day after the date the commissioner [board] receives notice under Article 42.018, Code of Criminal Procedure, of the conviction of a person who holds a certificate under this subchapter, the commissioner [board] shall:

(1) revoke the certificate held by the person; and

(2) provide to the person and to any school district or open-enrollment charter school employing the person at the time of revocation written notice of:

(A) the revocation; and

(B) the basis for the revocation.

(d) A person whose certificate is revoked under Subsection (b) may reapply for a certificate in accordance with commissioner [board] rules.

SECTION 54. Section 21.060, Education Code, is amended to read as follows:

Sec. 21.060. ELIGIBILITY OF PERSONS CONVICTED OF CERTAIN OFFENSES. The commissioner [board] may suspend or revoke the certificate or permit held by a person under this subchapter, impose other sanctions against the person, or refuse to issue a certificate or permit to a person under this subchapter if the person has been convicted of a felony or misdemeanor offense relating to the duties and responsibilities of the education profession, including:

(1) an offense involving moral turpitude;

(2) an offense involving a form of sexual or physical abuse of a minor or student or other illegal conduct in which the victim is a minor or student;

(3) a felony offense involving the possession, transfer, sale, or distribution of or conspiracy to possess, transfer, sell, or distribute a controlled substance, as defined by Chapter 481, Health and Safety Code, or by 21 U.S.C. Section 801 et seq.;

(4) an offense involving the illegal transfer, appropriation, or use of school district funds or other district property; or

(5) an offense involving an attempt by fraudulent or unauthorized means to obtain or alter a professional certificate or license issued under this subchapter.

SECTION 55. Subchapter B, Chapter 21, Education Code, is amended by adding Sections 21.062 and 21.063 to read as follows:

Sec. 21.062. ISSUANCE OF SUBPOENAS. (a) During an investigation by the commissioner of an educator for an alleged incident of misconduct, the commissioner may issue a subpoena to compel the production, for inspection or copying, of relevant evidence that is located in this state.

(b) A subpoena may be served personally or by certified mail.

(c) If a person fails to comply with a subpoena, the commissioner, acting through the attorney general, may file suit to enforce the subpoena in a district court in this state. On finding that good cause exists for issuing the subpoena, the court shall order the person to comply with the subpoena. The court may punish a person who fails to obey the court order.

(d) All information and materials subpoenaed or compiled in connection with an investigation described by Subsection (a) are confidential and not subject to disclosure under Chapter 552, Government Code.

(e) Except as provided by a protective order, and notwithstanding Subsection (d), all information and materials subpoenaed or compiled in connection with an investigation described by Subsection (a) may be used in a disciplinary proceeding against an educator based on an alleged incident of misconduct.

Sec. 21.063. DISCIPLINARY MATRIX. (a) The commissioner shall create a matrix to provide guidelines for ensuring the fair and consistent application of disciplinary sanctions for educators certified under this chapter who commit violations of this chapter or a rule adopted under this chapter. In developing the matrix, the commissioner shall consider the range of appropriate sanctions available for a violation based on:

(1) the severity of the violation;

(2) the number of repeat violations;

(3) whether the sanction serves as a deterrent to subsequent violations; and

(4) any aggravating or mitigating factors.

(b) The matrix developed under Subsection (a) does not prevent the commissioner from exercising discretion based on the specific circumstances of an individual case.

(c) In developing the matrix under Subsection (a), the commissioner shall provide for public comment.

(d) The commissioner shall make the matrix developed under Subsection (a) available to the public through posting the matrix on the agency's Internet website and through other appropriate means.

SECTION 56. Subsection (c), Section 21.105, Education Code, is amended to read as follows:

(c) On written complaint by the employing district, the commissioner [State Board for Educator Certification] may impose sanctions against a teacher employed under a probationary contract who:

(1) resigns;

(2) fails without good cause to comply with Subsection (a) or (b); and

(3) fails to perform the contract.

SECTION 57. Subsection (c), Section 21.160, Education Code, is amended to read as follows:

(c) On written complaint by the employing district, the commissioner [State Board for Educator Certification] may impose sanctions against a teacher who is employed under a continuing contract that obligates the district to employ the person for the following school year and who:

(1) resigns;

(2) fails without good cause to comply with Subsection (a) or (b); and

(3) fails to perform the contract.

SECTION 58. Subsection (c), Section 21.210, Education Code, is amended to read as follows:

(c) On written complaint by the employing district, the commissioner [State Board for Educator Certification] may impose sanctions against a teacher who is employed under a term contract that obligates the district to employ the person for the following school year and who:

(1) resigns;

(2) fails without good cause to comply with Subsection (a) or (b); and

(3) fails to perform the contract.

SECTION 59. Subsection (a), Section 21.253, Education Code, is amended to read as follows:

(a) A teacher must file a written request for a hearing under this subchapter with the district [commissioner] not later than the 15th day after the date the teacher receives written notice of the proposed action. [The teacher must provide the district with a copy of the request and must provide the commissioner with a copy of the notice.]

SECTION 60. Subsections (b) and (e), Section 21.254, Education Code, are amended to read as follows:

(b) If a hearing examiner is not selected by the parties to a pending case under Subsection (e), the [The] commissioner shall immediately assign the hearing examiner for a particular case by selecting the next person named on the list who resides within reasonable proximity to the district as determined by the commissioner. The commissioner may not change the order of names once the order is established under this section, except that once each hearing examiner on the list has been assigned to a case, the names shall be randomly reordered. When a hearing examiner has been assigned to a case, the commissioner shall immediately notify the parties. An assignment under this section is final.

(e) After the teacher receives the notice of the proposed action, the parties by agreement may select a hearing examiner from the list maintained by the commissioner under Subsection (a) or a person who is not certified to serve as a hearing examiner. A person who is not a certified hearing examiner may be selected only if the person is licensed to practice law in this state. If the parties do not agree on a hearing examiner, the parties shall request an assignment from[, before the date the commissioner is permitted to assign a hearing examiner, notify] the commissioner under Subsection (b) not later than the 25th calendar day after the date the teacher receives the notice of the proposed action [in writing of the agreement, including the name of the hearing examiner selected].

SECTION 61. Subsection (d), Section 21.255, Education Code, is amended to read as follows:

(d) If the hearing examiner is unable to continue presiding over a case at any time before issuing a recommendation or decision, the parties shall select by agreement or request the assignment of another hearing examiner under Section 21.254 who, after a review of the record, shall perform any remaining functions without the necessity of repeating any previous proceedings.

SECTION 62. Subsection (g), Section 21.4021, Education Code, is amended to read as follows:

(g) 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 commissioner [State Board for Educator Certification] as otherwise authorized by those sections.

SECTION 63. Section 21.503, Education Code, is amended to read as follows:

Sec. 21.503. ELIGIBILITY. A person is eligible for the program if the person:

(1) has served in the armed forces of the United States;

(2) is honorably discharged, retired, or released from active duty on or after October 1, 1990, after at least six years of continuous active duty service immediately before the discharge, retirement, or release;

(3) has received a baccalaureate or advanced degree from a public or private institution of higher education accredited by a regional accrediting agency or group that is recognized by a nationally recognized accreditation board; and

(4) satisfies any other criteria for selection [jointly] prescribed by the agency [and the State Board for Educator Certification].

SECTION 64. Subsection (b), Section 21.504, Education Code, is amended to read as follows:

(b) The agency [and the State Board for Educator Certification] shall distribute the applications and information regarding the program.

SECTION 65. Subsection (c), Section 21.510, Education Code, is amended to read as follows:

(c) For purposes of this section, a participant in the program is not considered to be in violation of an agreement under Section 21.508 during any period in which the participant:

(1) is pursuing a full-time course of study related to the field of teaching at a public or private institution of higher education approved by the commissioner [State Board for Educator Certification];

(2) is serving on active duty as a member of the armed forces of the United States;

(3) is temporarily totally disabled for a period not to exceed three years as established by sworn affidavit of a qualified physician;

(4) is unable to secure employment for a period not to exceed one year because of care required by a disabled spouse;

(5) is seeking and unable to find full-time employment as a teacher in a public elementary or secondary school for a single period not to exceed 27 months; or

(6) satisfies the provisions of any additional reimbursement exception adopted by the agency.

SECTION 66. Sections 21.551 and 21.553, Education Code, are amended to read as follows:

Sec. 21.551. PURPOSES. The purposes of the alternative certification Teach for Texas Pilot Program are to:

(1) attract to the teaching profession persons who have expressed interest in teaching and to support the certification of those persons as teachers;

(2) recognize the importance of the certification process [governed by the State Board for Educator Certification] under Subchapter B, which requires verification of competence in subject area and professional knowledge and skills;

(3) encourage the creation and expansion of educator preparation programs that recognize the knowledge and skills gained through previous educational and work-related experiences and that are delivered in a manner that recognizes individual circumstances, including the need to remain employed full-time while enrolled in the Teach for Texas Pilot Program; and

(4) provide annual stipends to postbaccalaureate teacher certification candidates.

Sec. 21.553. FINANCIAL INCENTIVES. (a) The pilot program must offer to participants financial incentives, including tuition assistance and loan forgiveness. In offering a financial incentive, the commissioner [State Board for Educator Certification] shall:

(1) require a contract between each participant who accepts a financial incentive and the commissioner [State Board for Educator Certification] under which the participant is obligated to teach in a public school in this state for a stated period after certification;

(2) provide financial incentives in proportion to the length of the period the participant is obligated by contract to teach after certification; and

(3) give special financial incentives to a participant who agrees in the contract to teach in an underserved area.

(b) Financial incentives may be paid only from funds appropriated specifically for that purpose and from gifts, grants, and donations solicited or accepted by the commissioner [State Board for Educator Certification] for that purpose.

(c) The commissioner [State Board for Educator Certification] shall adopt [propose] rules establishing criteria for awarding financial incentives under this section, including criteria for awarding financial incentives if there are more participants than funds available to provide the financial incentives.

SECTION 67. Subsection (b), Section 21.604, Education Code, is amended to read as follows:

(b) The agency [and the State Board for Educator Certification] shall distribute the applications and information regarding the program.

SECTION 68. Subsection (c), Section 21.609, Education Code, is amended to read as follows:

(c) For purposes of this section, a participant in the program is not considered to be in violation of an agreement under Section 21.607 during any period in which the participant:

(1) is pursuing a full-time course of study related to the field of teaching at an institution of higher education approved by the commissioner [State Board for Educator Certification];

(2) is serving on active duty as a member of the armed forces of the United States;

(3) is temporarily totally disabled for a period not to exceed three years as established by affidavit of a qualified physician;

(4) is unable to secure employment for a period not to exceed one year because of care required by a disabled spouse;

(5) is seeking and unable to find full-time employment as a teacher in a public elementary or secondary school for a single period not to exceed 27 months; or

(6) satisfies the provisions of any additional reimbursement exception adopted by the agency.

SECTION 69. Subsection (b), Section 22.0512, Education Code, is amended to read as follows:

(b) In this section, "disciplinary proceeding" means:

(1) an action brought by the school district employing a professional employee of a school district to discharge or suspend the employee or terminate or not renew the employee's term contract; or

(2) an action brought by the commissioner [State Board for Educator Certification] to enforce the educator's code of ethics adopted under Section 21.041(b)(8).

SECTION 70. Section 22.082, Education Code, is amended to read as follows:

Sec. 22.082. ACCESS TO CRIMINAL HISTORY RECORDS BY COMMISSIONER [STATE BOARD FOR EDUCATOR CERTIFICATION]. The commissioner [State Board for Educator Certification] shall subscribe to the criminal history clearinghouse as provided by Section 411.0845, Government Code, and may obtain from any law enforcement or criminal justice agency all criminal history record information and all records contained in any closed criminal investigation file that relate to a specific applicant for or holder of a certificate issued under Subchapter B, Chapter 21.

SECTION 71. Subsections (c), (d), (e), and (f), Section 22.0831, Education Code, are amended to read as follows:

(c) The commissioner [board] shall review the national criminal history record information of a person who has not previously submitted fingerprints to the department or been subject to a national criminal history record information review.

(d) The commissioner [board] shall place an educator's certificate on inactive status for failure to comply with a deadline for submitting information required under this section.

(e) The commissioner [board] may allow a person who is applying for a certificate under Subchapter B, Chapter 21, and who currently resides in another state to submit the person's fingerprints and other required information in a manner that does not impose an undue hardship on the person.

(f) The commissioner [board] may adopt [propose] rules to implement this section, including rules establishing:

(1) deadlines for a person to submit fingerprints and photographs in compliance with this section; and

(2) sanctions for a person's failure to comply with the requirements of this section, including suspension or revocation of a certificate or refusal to issue a certificate.

SECTION 72. Subsection (a), Section 22.0832, Education Code, is amended to read as follows:

(a) The agency shall review the national criminal history record information of an employee of an open-enrollment charter school to whom Section 12.1059 applies in the same manner as the commissioner [State Board for Educator Certification] reviews certified educators under Section 22.0831. If the agency determines that, based on information contained in an employee's criminal history record information, the employee would not be eligible for educator certification under Subchapter B, Chapter 21, the agency shall notify the open-enrollment charter school in writing that the person may not be employed by the school or serve in a capacity described by Section 12.1059.

SECTION 73. Subsection (h), Section 22.0833, Education Code, is amended to read as follows:

(h) The agency, [the State Board for Educator Certification,] school districts, open-enrollment charter schools, and shared services arrangements may coordinate as necessary to ensure that criminal history reviews authorized or required under this subchapter are not unnecessarily duplicated.

SECTION 74. Subsections (d) and (e), Section 22.085, Education Code, are amended to read as follows:

(d) A school district, open-enrollment charter school, private school, regional education service center, or shared services arrangement may discharge an employee if the district or school obtains information of the employee's conviction of a felony or of a misdemeanor involving moral turpitude that the employee did not disclose to the commissioner [State Board for Educator Certification] or the district, school, service center, or shared services arrangement. An employee discharged under this section is considered to have been discharged for misconduct for purposes of Section 207.044, Labor Code. For purposes of this subsection, a disclosure to the State Board for Educator Certification before September 1, 2013, is considered a disclosure to the commissioner.

(e) The commissioner [State Board for Educator Certification] may impose a sanction on an educator who does not discharge an employee or refuse to hire an applicant if the educator knows or should have known, through a criminal history record information review, that the employee or applicant has been convicted of an offense described by Subsection (a).

SECTION 75. Sections 22.086 and 22.087, Education Code, are amended to read as follows:

Sec. 22.086. LIABILITY FOR REPORTING OFFENSES. The commissioner [State Board for Educator Certification], a school district, an open-enrollment charter school, a private school, a regional education service center, a shared services arrangement, or an employee of the agency [board], district, school, service center, or shared services arrangement is not civilly or criminally liable for making a report required under this subchapter.

Sec. 22.087. NOTIFICATION TO COMMISSIONER [STATE BOARD FOR EDUCATOR CERTIFICATION]. The superintendent of a school district or the director of an open-enrollment charter school, private school, regional education service center, or shared services arrangement shall promptly notify the commissioner [State Board for Educator Certification] in writing if the person obtains or has knowledge of information showing that an applicant for or holder of a certificate issued under Subchapter B, Chapter 21, has a reported criminal history.

SECTION 76. Subsection (b), Section 25.001, Education Code, is amended to read as follows:

(b) The board of trustees of a school district or its designee shall admit into the public schools of the district free of tuition a person who is over five and younger than 21 years of age on the first day of September of the school year in which admission is sought, and may admit a person who is at least 21 years of age and under 26 years of age for the purpose of completing the requirements for a high school diploma, if:

(1) the person and either parent of the person reside in the school district;

(2) the person does not reside in the school district but a parent of the person resides in the school district and that parent is a joint managing conservator or the sole managing conservator or possessory conservator of the person;

(3) the person and the person's guardian or other person having lawful control of the person under a court order reside within the school district;

(4) the person has established a separate residence under Subsection (d);

(5) the person is homeless, as defined by 42 U.S.C. Section 11302, regardless of the residence of the person, of either parent of the person, or of the person's guardian or other person having lawful control of the person;

(6) the person is a foreign exchange student placed with a host family that resides in the school district by a nationally recognized foreign exchange program[, unless the school district has applied for and been granted a waiver by the commissioner under Subsection (e)];

(7) the person resides at a residential facility located in the district;

(8) the person resides in the school district and is 18 years of age or older or the person's disabilities of minority have been removed; or

(9) the person does not reside in the school district but the grandparent of the person:

(A) resides in the school district; and

(B) provides a substantial amount of after-school care for the person as determined by the board.

SECTION 77. Subsection (d), Section 28.014, Education Code, is amended to read as follows:

(d) The agency, in coordination with the Texas Higher Education Coordinating Board, shall adopt a series of questions to be included in an end-of-course assessment instrument administered under Subsection (c) to be used for purposes of Section 51.3062. The questions must be developed in a manner consistent with any college readiness standards adopted under Section [Sections 39.233 and] 51.3062.

SECTION 78. Section 29.007, Education Code, is amended to read as follows:

Sec. 29.007. SHARED SERVICES ARRANGEMENTS. School districts may enter into a written contract to jointly operate their special education programs. [The contract must be approved by the commissioner.] Funds to which the cooperating districts are entitled may be allocated to the districts jointly as shared services arrangement units or shared services arrangement funds in accordance with the shared services arrangement districts' agreement.

SECTION 79. Subsections (a), (b), (c), and (e), Section 29.061, Education Code, are amended to read as follows:

(a) The commissioner [State Board for Educator Certification] shall provide for the issuance of teaching certificates appropriate for bilingual education instruction to teachers who possess a speaking, reading, and writing ability in a language other than English in which bilingual education programs are offered and who meet the general requirements of Chapter 21. The commissioner [board] shall also provide for the issuance of teaching certificates appropriate for teaching English as a second language. The commissioner [board] may issue emergency endorsements in bilingual education and in teaching English as a second language.

(b) A teacher assigned to a bilingual education program must be appropriately certified for bilingual education by the commissioner [board].

(c) A teacher assigned to an English as a second language or other special language program must be appropriately certified for English as a second language by the commissioner [board].

(e) The commissioner [State Board for Educator Certification] and the Texas Higher Education Coordinating Board shall develop a comprehensive plan for meeting the teacher supply needs created by the programs outlined in this subchapter.

SECTION 80. The heading to Subchapter H, Chapter 29, Education Code, is amended to read as follows:

SUBCHAPTER H. [ADULT AND] COMMUNITY EDUCATION PROGRAMS

SECTION 81. Subdivision (4), Section 29.251, Education Code, is amended to read as follows:

(4) "Community education" means the process by which the citizens in a school district, using the resources and facilities of the district, organize to support each other and to solve their mutual educational problems and meet their mutual lifelong needs. Community education may include:

(A) educational programs, including programs relating to [for occupational and technological skills training, retraining of displaced workers,] cultural awareness, parenting skills education and parental involvement in school programs, and multilevel adult education and personal growth;

(B) community involvement programs, including programs for community economic development, school volunteers, partnerships between schools and businesses, coordination with community agencies, school-age child care, family [and workplace] literacy, and community use of facilities; and

(C) programs for youth enrolled in schools, including programs for dropout prevention and recovery programs, drug-free school programs, school-age parenting programs, and academic enhancement.

SECTION 82. Section 29.252, Education Code, is amended to read as follows:

Sec. 29.252. AGENCY [STATE] ROLE IN [ADULT AND] COMMUNITY EDUCATION. (a) The agency shall:

(1) [provide adequate staffing to develop, administer, and support a comprehensive statewide adult education program and coordinate related federal and state programs for education and training of adults;

[(2)] develop, implement, and regulate a comprehensive statewide program for community [level] education services [to meet the special needs of adults];

(2) [(3) develop the mechanism and guidelines for coordination of comprehensive adult education and related skill training services for adults with other agencies, both public and private, in planning, developing, and implementing related programs, including community education programs;

[(4)] administer all state and federal funds for community [adult] education [and related skill training] in this state, other than funds that [except in programs for which] another entity is specifically authorized to administer [do so] under other law; and

(3) [(5) prescribe and administer standards and accrediting policies for adult education;

[(6) prescribe and administer rules for teacher certification for adult education;

[(7)] accept and administer grants, gifts, services, and funds from available sources for use in community [adult] education[;

[(8) adopt or develop and administer a standardized assessment mechanism for assessing all adult education program participants who need literacy instruction, adult basic education, or secondary education leading to an adult high school diploma or the equivalent;

[(9) collaborate with the Texas Workforce Commission to improve the coordination and implementation of adult education and literacy services in this state; and

[(10) monitor and evaluate educational and employment outcomes of students who participate in the agency's adult education and literacy programs].

(b) The commissioner may adopt rules for the administration of this subchapter [assessment mechanism prescribed under Subsection (a)(8) must include an initial basic skills screening instrument and must provide comprehensive information concerning baseline student skills before and student progress after participation in an adult education program].

SECTION 83. Section 29.255, Education Code, is amended to read as follows:

Sec. 29.255. STATE FUNDING. [(a)] Funds shall be appropriated to implement statewide community [adult basic] education[, adult bilingual education, high school equivalency, and high school credit] programs, including [to eliminate illiteracy in this state and to implement and support a statewide program to meet the total range of adult needs for adult education, related skill training, and] pilot programs to demonstrate the effectiveness of the community education concept. The agency shall ensure that public local education agencies, public nonprofit agencies, and community-based organizations have direct and equitable access to those funds. [An additional sum of money may be appropriated to the Texas Department of Commerce for the purpose of skill training in direct support of industrial expansion and start-up, and those locations, industries, and occupations designated by the Texas Department of Commerce, when such training is also in support of the basic purposes of this subchapter. To fulfill the basic purposes of this subchapter, an additional sum of money may be appropriated for skill training that is conducted to support the expansion of civilian employment opportunities on United States military reservations.

[(b) The agency, in conjunction with the Texas Department of Commerce, may adopt rules to administer skill training programs for which the agency is responsible, and the Texas Department of Commerce may adopt rules to administer skill training programs for which it is responsible.]

SECTION 84. Section 29.902, Education Code, is amended to read as follows:

Sec. 29.902. DRIVER EDUCATION. (a) The Texas Department of Licensing and Regulation [agency] shall develop a program of organized instruction in driver education and traffic safety for public school students. A student who will be 15 years of age or older before a driver education and traffic safety course ends may enroll in the course.

(b) The agency shall establish standards for the certification of professional and paraprofessional personnel who conduct the programs in the public schools.

(c) A school district shall consider offering a driver education and traffic safety course during each school year. If the district offers the course, the district may:

(1) conduct the course and charge a fee for the course in the amount determined by the agency to be comparable to the fee charged by a driver education school that holds a license under Chapter 1001; or

(2) contract with a driver education school that holds a license under Chapter 1001 to conduct the course.

SECTION 85. Subsections (b) and (c), Section 33.002, Education Code, are amended to read as follows:

(b) A school district with 500 or more students enrolled in elementary school grades shall employ a counselor certified under Subchapter B, Chapter 21, [the rules of the State Board for Educator Certification] for each elementary school in the district. A school district shall employ at least one counselor for every 500 elementary school students in the district.

(c) A school district with fewer than 500 students enrolled in elementary school grades shall provide guidance and counseling services to elementary school students by:

(1) employing a part-time counselor certified under Subchapter B, Chapter 21 [the rules of the State Board for Educator Certification];

(2) employing a part-time teacher certified as a counselor under Subchapter B, Chapter 21 [the rules of the State Board for Educator Certification]; or

(3) entering into a shared services arrangement agreement with one or more school districts to share a counselor certified under Subchapter B, Chapter 21 [the rules of the State Board for Educator Certification].

SECTION 86. Subsection (c), Section 33.007, Education Code, is amended to read as follows:

(c) At the beginning of grades 10 and 11, a school counselor certified under Subchapter B, Chapter 21, [the rules of the State Board for Educator Certification] shall explain the requirements of automatic admission to a general academic teaching institution under Section 51.803 to each student enrolled in a high school or at the high school level in an open-enrollment charter school who has a grade point average in the top 25 percent of the student's high school class.

SECTION 87. Subsection (d-1), Section 33.081, Education Code, is amended to read as follows:

(d-1) Subsections (c) and (d) do not apply to an advanced placement or international baccalaureate course, or to an honors or dual credit course in the subject areas of English language arts, mathematics, science, social studies, economics, or a language other than English. [The agency shall review on a biennial basis courses described by this subsection to determine if other courses should be excluded from the requirement that a student be suspended from participation in an extracurricular activity under Subsection (c). Not later than January 1 of each odd-numbered year, the agency shall report the findings under this subsection to the legislature.]

SECTION 88. Subsection (o), Section 37.006, Education Code, is amended to read as follows:

(o) In addition to any notice required under Article 15.27, Code of Criminal Procedure, a principal or a principal's designee shall inform each educator who has responsibility for, or is under the direction and supervision of an educator who has responsibility for, the instruction of a student who has engaged in any violation listed in this section of the student's misconduct. Each educator shall keep the information received under this subsection confidential from any person not entitled to the information under this subsection, except that the educator may share the information with the student's parent or guardian as provided for by state or federal law. The commissioner [State Board for Educator Certification] may revoke or suspend the certification of an educator who intentionally violates this subsection.

SECTION 89. Subsection (g), Section 37.007, Education Code, is amended to read as follows:

(g) In addition to any notice required under Article 15.27, Code of Criminal Procedure, a school district shall inform each educator who has responsibility for, or is under the direction and supervision of an educator who has responsibility for, the instruction of a student who has engaged in any violation listed in this section of the student's misconduct. Each educator shall keep the information received under this subsection confidential from any person not entitled to the information under this subsection, except that the educator may share the information with the student's parent or guardian as provided for by state or federal law. The commissioner [State Board for Educator Certification] may revoke or suspend the certification of an educator who intentionally violates this subsection.

SECTION 90. Subsection (e), Section 39.027, 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)(1) or (2) 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)(1) or (2) applies shall be included in the indicator systems under Section 39.301, as applicable, the local performance report under Section 39.306, and the comprehensive biennial [annual] report under Section 39.332. 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 91. Subsections (a) and (d), Section 39.0302, Education Code, are amended to read as follows:

(a) During an agency investigation or audit of a school district under Section 39.0301(e) or (f), an accreditation investigation under Section 39.057(a)(8) [39.075(a)(8)], or an investigation [by the State Board for Educator Certification] of an educator for an alleged violation of an assessment instrument security procedure established under Section 39.0301(a), the commissioner may issue a subpoena to compel the attendance of a relevant witness or the production, for inspection or copying, of relevant evidence that is located in this state.

(d) All information and materials subpoenaed or compiled in connection with an investigation or audit described by Subsection (a):

(1) are confidential and not subject to disclosure under Chapter 552, Government Code; and

(2) are not subject to disclosure, discovery, subpoena, or other means of legal compulsion for release to any person other than:

(A) the commissioner [or the State Board for Educator Certification, as applicable];

(B) agency employees or agents involved in the investigation, as applicable; and

(C) the office of the attorney general, the state auditor's office, and law enforcement agencies.

SECTION 92. Section 39.082, Education Code, is amended by amending Subsections (a) and (b) and adding Subsections (d), (e), (f), (g), and (g-1) to read as follows:

(a) The commissioner shall, in consultation with the comptroller, develop and implement separate financial accountability rating systems for school districts and open-enrollment charter schools in this state that:

(1) distinguish among school districts and distinguish among open-enrollment charter schools, as applicable, based on levels of financial performance; [and]

(2) include procedures to:

(A) provide additional transparency to public education finance; and

(B) enable the commissioner and school district and open-enrollment charter school administrators to provide meaningful financial oversight and improvement; and

(3) include processes for anticipating the future financial solvency of each school district and open-enrollment charter school, including analysis of district and school revenues and expenditures for preceding school years.

(b) The system must include uniform indicators adopted by [the] commissioner rule by which to measure the financial management performance and future financial solvency of a district or open-enrollment charter school. In adopting indicators under this subsection, the commissioner shall assign a point value to each indicator to be used in a scoring matrix developed by the commissioner.

(d) The commissioner shall evaluate indicators adopted under Subsection (b) at least once every three years.

(e) A district or open-enrollment charter school shall receive a failing rating under the system if the district or school fails to achieve a satisfactory rating on:

(1) an indicator adopted under Subsection (b) relating to financial management or solvency that the commissioner determines to be critical; or

(2) a category of indicators that suggest trends leading to financial distress as determined by the commissioner.

(f) Before assigning a final rating under the system, the commissioner shall assign each district or open-enrollment charter school a preliminary rating. A district or school may submit additional information to the commissioner relating to any indicator on which performance was considered unsatisfactory. The commissioner shall consider any additional information submitted by a district or school before assigning a final rating. If the commissioner determines that the additional information negates the concern raised by the indicator on which performance was considered unsatisfactory, the commissioner may not penalize the district or school on the basis of the indicator.

(g) The commissioner shall adopt rules for the implementation of this section.

(g-1) The commissioner shall adopt initial rules necessary to implement the changes to this section made by the 83rd Legislature, Regular Session, 2013, not later than March 1, 2015. This subsection expires April 1, 2015.

SECTION 93. Section 39.0823, Education Code, is amended by amending Subsection (a) and adding Subsection (d) to read as follows:

(a) If the commissioner, based on the indicators adopted under Section 39.082 or other relevant information, projects a [review process under Section 39.0822 indicates a projected] deficit for a school district or open-enrollment charter school general fund within the following three school years, the agency [district] shall provide the district or school [agency] interim financial reports, including projected revenues and expenditures [supplemented by staff and student count data, as needed], to evaluate the [district's] current budget status of the district or school.

(d) The agency may require a district or open-enrollment charter school to submit additional information needed to produce a financial report under Subsection (a). If a district or school fails to provide information requested under this subsection or if the commissioner determines that the information submitted by a district or school is unreliable, the commissioner may order the district or school to acquire professional services as provided by Section 39.109.

SECTION 94. Subchapter D, Chapter 39, Education Code, is amended by adding Section 39.0824 to read as follows:

Sec. 39.0824. CORRECTIVE ACTION PLAN. (a) A school district or open-enrollment charter school assigned a failing rating under Section 39.082 shall submit to the commissioner a corrective action plan to address the financial weaknesses of the district or school. A corrective action plan must identify problems and include strategies for improvement.

(b) The commissioner may impose appropriate sanctions under Subchapter E against a district or school failing to submit or implement a corrective action plan required under Subsection (a).

SECTION 95. Subsection (b), Section 39.083, 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) 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 electronic-based program developed under Section 39.0822; and

[(3)] any descriptive information required by the commissioner.

SECTION 96. Subsection (a), Section 39.102, Education Code, is amended to read as follows:

(a) If a school district does not satisfy the accreditation criteria under Section 39.052, the academic performance standards under Section 39.053 or 39.054, 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 performance, the improvements in performance expected by the agency, and the interventions and 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 indicator under Section 39.053(c) for which the district's performance is insufficient, 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 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(e), 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, a district has received an accreditation status of accredited-warned or accredited-probation, has failed to satisfy any standard under Section 39.054(e), 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(e) 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.

SECTION 97. Section 39.104, Education Code, is amended by adding Subsection (e) to read as follows:

(e) In addition to the interventions and sanctions authorized under this chapter, the commissioner may reconstitute the governing body of a charter holder as provided by Section 12.1201.

SECTION 98. Section 39.112, Education Code, is amended by adding Subsection (f) to read as follows:

(f) Subsection (e) does not apply if the district will be closed and its territory annexed to one or more other school districts in accordance with other law. In that circumstance, the board of managers may, as determined by the commissioner, continue to oversee the closure and annexation of the district until the effective date of the district's annexation.

SECTION 99. Section 39.233, Education Code, is amended to read as follows:

Sec. 39.233. [RECOGNITION OF] HIGH SCHOOL COMPLETION AND SUCCESS AND COLLEGE READINESS PROGRAMS; AGENCY GUIDANCE. [(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;

[(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[; 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.

[(b) The commissioner may adopt rules for the administration of this section].

SECTION 100. Subsection (a), Section 39.235, 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 middle, junior high, and high school campuses and school districts to support:

(1) the implementation of innovative improvement programs that are based on the best available research regarding middle, junior high, or high school reform, dropout prevention, and preparing students for postsecondary coursework or employment; and

(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].

SECTION 101. Section 39.301, Education Code, is amended by amending Subsections (a) and (c) and adding Subsection (c-1) to read as follows:

(a) In addition to the indicators adopted under Section 39.053, the commissioner may [shall] adopt indicators of the quality of learning for the purpose of preparing state performance reports under Section 39.305 [this chapter]. The commissioner biennially shall review the indicators for the consideration of appropriate revisions.

(c) Indicators for reporting purposes may [must] include:

(1) the percentage of graduating students who meet the course requirements established by State Board of Education rule for the minimum high school program, the recommended high school program, and the advanced high school program;

(2) the results of the SAT, 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, under each performance standard under Section 39.0241, on an assessment instrument required under Section 39.023(a) or (c), the performance of those students on subsequent assessment instruments required under those sections, aggregated by grade level and subject area;

(4) for each campus, the number of students, disaggregated by major student subpopulations, that agree under Section 28.025(b) to take courses under the minimum high school program;

(5) 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 under each performance standard under Section 39.0241, and the performance of those students in the school year following that promotion on the assessment instruments required under Section 39.023;

(6) the percentage of students of limited English proficiency exempted from the administration of an assessment instrument under Sections 39.027(a)(1) and (2);

(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 percentage of students who satisfy the college readiness measure;

(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;

(10) the percentage of students who are not educationally disadvantaged;

(11) the percentage of students who enroll and begin instruction at an institution of higher education in the school year following high school graduation; [and]

(12) the percentage of students who successfully complete the first year of instruction at an institution of higher education without needing a developmental education course; and

(13) additional quality indicators, as determined by the commissioner.

(c-1) Notwithstanding Subsection (a) or (c), the commissioner shall adopt an indicator of the quality of learning that includes the information described by Subsection (c)(5) for purposes of evaluating programs under Section 28.006(j).

SECTION 102. Section 39.305, Education Code, is amended to read as follows:

Sec. 39.305. STATE PERFORMANCE REPORTS [CAMPUS REPORT CARD]. (a) Each school year, the agency shall prepare and distribute to each school district a state performance report [card] for each campus. The reports [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, and state established standards.

(b) 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 adopted under Section 39.301 [described by Sections 39.301(c)(1) through (5)];

(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.

(c) The commissioner shall adopt rules requiring dissemination of the information included in a state [required under Subsection (b)(4) and appropriate class size and student] performance [portions of campus] report under this section [cards] annually to the parent, guardian, conservator, or other person having lawful control of each student in [at] the district in a manner consistent with campus policy regarding providing notice to parents. On written request, the school district shall provide a copy of a [campus] report [card] to any other party.

(d) The agency shall promptly post the information included in reports on the agency's Internet website.

SECTION 103. The heading to Section 39.306, Education Code, is amended to read as follows:

Sec. 39.306. LOCAL PERFORMANCE REPORT.

SECTION 104. The heading to Section 39.307, Education Code, is amended to read as follows:

Sec. 39.307. USES OF LOCAL PERFORMANCE REPORT.

SECTION 105. The heading to Section 39.332, Education Code, is amended to read as follows:

Sec. 39.332. COMPREHENSIVE BIENNIAL [ANNUAL] REPORT.

SECTION 106. Subsection (a), Section 39.332, Education Code, is amended to read as follows:

(a) The [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 two school years [year] and containing the information described by Subsection (b).

SECTION 107. Subdivisions (2) and (20), Subsection (b), Section 39.332, Education Code, are amended to read as follows:

(2) The report must contain an evaluation of the status of education in the state as reflected by:

(A) the student achievement indicators described by Section 39.053; and

(B) the reporting indicators adopted under [described by] Section 39.301.

(20) The report must contain a comparison of the performance of open-enrollment charter schools and school districts on the student achievement indicators described by Section 39.053(c), the reporting indicators adopted under [described by] Section 39.301 [39.301(c)], and the accountability measures adopted under Section 39.053(i), 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 by Section 29.081(d), with the performance of school districts.

SECTION 108. Section 39.362, Education Code, is amended to read as follows:

Sec. 39.362. 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 state performance [campus] report [card] for each campus in the district under Section 39.305;

(2) the information contained in the most recent local performance report for the district under Section 39.306;

(3) the most recent accreditation status and performance rating of the district under Sections 39.052 and 39.054; and

(4) a definition and explanation of each accreditation status under Section 39.051, based on commissioner rule adopted under that section.

SECTION 109. Section 39.409, Education Code, is transferred to Subchapter Z, Chapter 29, Education Code, redesignated as Section 29.921, Education Code, and amended to read as follows:

Sec. 29.921 [39.409]. PRIVATE FOUNDATION PARTNERSHIPS. (a) The commissioner of education or the commissioner of higher education, as appropriate, [and the council] may coordinate with private foundations that have made a substantial investment in the improvement of high schools in this state to maximize the impact of public and private investments.

(b) A private foundation is not required to obtain the approval of the appropriate commissioner [or the council] under Subsection (a) before allocating resources to a school in this state.

SECTION 110. Section 39.413, Education Code, is transferred to Subchapter C, Chapter 61, Education Code, redesignated as Section 61.0767, Education Code, and amended to read as follows:

Sec. 61.0767 [39.413]. FUNDING FOR CERTAIN PROGRAMS. (a) From funds appropriated, the board [Texas Higher Education Coordinating Board] shall allocate $8.75 million each year to establish mathematics, science, and technology teacher preparation academies under Section 61.0766[, provide funding to the commissioner of education to implement and administer the program under Section 29.098,] and award grants under Section 61.0762(a)(3).

(b) The board [Texas Higher Education Coordinating Board] shall establish mathematics, science, and technology teacher preparation academies under Section 61.0766[, provide funding to the commissioner of education to implement and administer the program under Section 29.098,] and award grants under Section 61.0762(a)(3) in a manner consistent with [the goals of this subchapter and] the goals in "Closing the Gaps," the state's master plan for higher education.

SECTION 111. Subchapter A, Chapter 42, Education Code, is amended by adding Section 42.011 to read as follows:

Sec. 42.011. FUNDS AUDIT. (a) The agency shall develop and implement by rule an auditing system for expenditures of funds under the Foundation School Program by school districts and open-enrollment charter schools. An auditing system developed under this section must use a standard, risk-based approach.

(b) The agency shall provide guidance relating to an audit developed under this section through any training or reference material the agency provides to school districts or open-enrollment charter schools.

SECTION 112. Subsection (a), Section 45.208, Education Code, is amended to read as follows:

(a) The bank or banks selected as the depository or depositories and the school district shall enter into a depository contract or contracts, bond or bonds, or other necessary instruments setting forth the duties and agreements pertaining to the depository[, in a form and with the content prescribed by the State Board of Education]. The parties shall attach to the depository contract and incorporate by reference the bid or proposal of the depository.

SECTION 113. Section 51.308, Education Code, is amended to read as follows:

Sec. 51.308. DRIVER EDUCATION. A driver education course for the purpose of preparing students to obtain a driver's license may be offered by an institution of higher education, as defined by Section 61.003, with the approval of the Texas Department of Licensing and Regulation [Central Education Agency].

SECTION 114. Section 52.31, Education Code, is amended to read as follows:

Sec. 52.31. PARTICIPATING INSTITUTIONS. In this subchapter, "participating higher educational institution" means a public or private nonprofit institution of higher education, including a junior college, accredited by a recognized accrediting agency as defined by Section 61.003, or a regional education service center or other entity that offers an alternative educator certification program approved by the commissioner of education [State Board for Educator Certification], that:

(1) is located in this state; and

(2) complies with the provisions of this chapter and the rules of the board promulgated in accordance with this chapter.

SECTION 115. Subsection (b), Section 52.32, Education Code, is amended to read as follows:

(b) If a loan applicant is enrolled at a career school or college in a degree program that is approved by the board or at a regional education service center or other entity in an alternative educator certification program that is approved by the commissioner of education [State Board for Educator Certification], the applicant is not required to provide evidence that the applicant is unable to obtain a guaranteed student loan from a commercial lender under Subsection (a-1).

SECTION 116. Section 61.0514, Education Code, is amended to read as follows:

Sec. 61.0514. INTEGRATED COURSEWORK. The board, with the cooperation and advice of the commissioner of education [State Board for Educator Certification], shall adopt educator preparation coursework guidelines that promote, to the greatest extent practicable, the integration of subject matter knowledge with classroom teaching strategies and techniques in order to maximize the effectiveness and efficiency of coursework required for certification under Subchapter B, Chapter 21.

SECTION 117. Subsection (b), Section 61.076, Education Code, is amended to read as follows:

(b) The P-16 Council is composed of the commissioner of education, the commissioner of higher education, the executive director of the Texas Workforce Commission, [the executive director of the State Board for Educator Certification,] and the commissioner of assistive and rehabilitative services. The commissioner of higher education and the commissioner of education shall serve as co-chairs of the council.

SECTION 118. Subsection (a), Section 61.0761, Education Code, is amended to read as follows:

(a) The P-16 Council established under Section 61.076 shall recommend to the commissioner of education and the board a college readiness and success strategic action plan to increase student success and decrease the number of students enrolling in developmental course work in institutions of higher education. The plan must include:

(1) definitions, as determined by the P-16 Council in coordination with the State Board of Education, of the standards and expectations for college readiness that address the knowledge and skills expected of students to perform successfully in entry-level courses offered at institutions of higher education;

(2) a description of the components of a P-16 individualized graduation plan sufficient to prepare students for college success;

(3) the manner in which the Texas Education Agency should provide model curricula for use as a reference tool by school district employees;

(4) recommendations to the Texas Education Agency, the State Board of Education, and the board regarding strategies for decreasing the number of students enrolling in developmental course work at institutions of higher education;

(5) recommendations [to the State Board for Educator Certification] regarding changes to educator certification and professional development requirements that contribute to the ability of public school teachers to prepare students for higher education; and

(6) any other elements that the commissioner of education and the board suggest for inclusion in the plan.

SECTION 119. Subsection (b), Section 61.0766, Education Code, is amended to read as follows:

(b) Before an institution of higher education establishes an academy under this section, the institution must apply through a competitive process, as determined by the board, and meet any requirements established by the board for designation as an academy under this section and continued funding. The institution of higher education must have a teacher preparation program approved by the commissioner of education [State Board for Educator Certification] or be affiliated with a program approved by the commissioner [State Board for Educator Certification]. SECTION 120. Section 1001.001, Education Code, is amended by amending Subdivisions (2), (3), (4), and (5) and adding Subdivision (13-a) to read as follows:

(2) "Approved driving safety course" means a driving safety course approved by the department [commissioner].

(3) "Commission" ["Commissioner"] means the Texas Commission of Licensing and Regulation [commissioner of education].

(4) "Course provider" means an enterprise that:

(A) maintains a place of business or solicits business in this state;

(B) is operated by an individual, association, partnership, or corporation; and

(C) has received an approval for a driving safety course from the department [commissioner] or has been designated by a person who has received that approval to conduct business and represent the person in this state.

(5) "Department" means the Texas Department of Licensing and Regulation [Public Safety].

(13-a) "Executive director" means the executive director of the department.

SECTION 121. Subsection (c), Section 1001.002, Education Code, is amended to read as follows:

(c) A driver education course is exempt from this chapter, other than Section 1001.055, if the course is:

(1) conducted by a vocational driver training school operated to train or prepare a person for a field of endeavor in a business, trade, technical, or industrial occupation;

(2) conducted by a school or training program that offers only instruction of purely avocational or recreational subjects as determined by the department [commissioner];

(3) sponsored by an employer to train its own employees without charging tuition;

(4) sponsored by a recognized trade, business, or professional organization with a closed membership to instruct the members of the organization; or

(5) conducted by a school regulated and approved under another law of this state.

SECTION 122. Section 1001.003, Education Code, is amended to read as follows:

Sec. 1001.003. LEGISLATIVE INTENT REGARDING SMALL BUSINESSES. It is the intent of the legislature that commission [agency] rules that affect driver training schools that qualify as small businesses be adopted and administered so as to have the least possible adverse economic effect on the schools.

SECTION 123. Section 1001.004, Education Code, as amended by Chapters 1253 (H.B. 339) and 1413 (S.B. 1317), Acts of the 81st Legislature, Regular Session, 2009, is reenacted and amended to read as follows:

Sec. 1001.004. COST OF ADMINISTERING CHAPTER. (a) Except as provided by Subsection (b), the cost of administering this chapter shall be included in the state budget allowance for the department [agency].

(b) The department [commissioner] may charge a fee to each driver education school in an amount not to exceed the actual expense incurred in the regulation of driver education courses established under Section 1001.1015.

SECTION 124. Sections 1001.051, 1001.052, 1001.053, and 1001.054, Education Code, are amended to read as follows:

Sec. 1001.051. JURISDICTION OVER SCHOOLS. The department [agency] has jurisdiction over and control of driver training schools regulated under this chapter.

Sec. 1001.052. RULES. The commission [agency] shall adopt [and administer] comprehensive rules governing driving safety courses.

Sec. 1001.053. POWERS AND DUTIES OF DEPARTMENT, COMMISSION, AND EXECUTIVE DIRECTOR [COMMISSIONER]. (a) The department and executive director, as appropriate, [commissioner] shall:

(1) administer [the policies of] this chapter;

(2) enforce minimum standards for driver training schools under this chapter;

(3) [adopt and] enforce rules adopted by the commission that are necessary to administer this chapter; and

(4) visit a driver training school or course provider and reexamine the school or course provider for compliance with this chapter.

(b) The executive director [commissioner] may designate a person knowledgeable in the administration of regulating driver training schools to administer this chapter.

(c) The commission shall adopt rules necessary to administer this chapter. The commission [commissioner] may adopt rules to ensure the integrity of approved driving safety courses and to enhance program quality.

Sec. 1001.054. RULES RESTRICTING ADVERTISING OR COMPETITIVE BIDDING. (a) The commission [commissioner] may not adopt a rule restricting advertising or competitive bidding by a driver training school except to prohibit a false, misleading, or deceptive practice.

(b) The commission [commissioner] may not include in rules to prohibit false, misleading, or deceptive practices by a driver training school a rule that restricts:

(1) the use of an advertising medium;

(2) the outside dimensions of a printed advertisement or outdoor display;

(3) the duration of an advertisement; or

(4) advertisement under a trade name.

(c) The commission [commissioner] by rule may restrict advertising by a branch location of a driver training school so that the location adequately identifies the primary location of the school in a solicitation.

SECTION 125. Subsections (a), (a-1), (a-2), (b), and (c), Section 1001.055, Education Code, are amended to read as follows:

(a) The department [agency] shall provide to each licensed or exempt driver education school and to each parent-taught course provider approved by the Department of Public Safety under Section 521.205, Transportation Code, driver education certificates or certificate numbers to enable the school or [and each approved parent-taught] course provider [(approved by the Texas Department of Public Safety under Section 521.205 of the Transportation Code)] to print and issue department-approved [agency-approved] driver education certificates [with the certificate numbers] to certify [be used for certifying] completion of an approved driver education course and [to] satisfy the requirements of Sections 521.204(a)(2) and 521.1601, Transportation Code.

(a-1) A certificate printed and issued by a driver education school or Department of Public Safety approved course provider must:

(1)be in a form required by the department[agency]; and

(2) include an identifying certificate number provided by the department [agency] that may be used to verify the authenticity of the certificate with the driver education school or Department of Public Safety approved course provider.

(a-2) A driver education school or Department of Public Safety approved course provider that purchases driver education certificate numbers shall provide for the printing and issuance of original and duplicate certificates in a manner that, to the greatest extent possible, prevents the unauthorized production or the misuse of the certificates. The driver education school or Department of Public Safety approved course provider shall electronically submit to the department [agency] in the manner established by the department [agency] data identified by the department [agency] relating to issuance of department-approved [agency-approved] driver education certificates with the certificate numbers.

(b) The commission [agency] by rule shall provide for the design and distribution of the certificates and certificate numbers in a manner that, to the greatest extent possible, prevents the unauthorized reproduction or misuse of the certificates or certificate numbers.

(c) The commission by rule shall establish [agency may charge] a fee [of not more than $4] for each certificate or certificate number.

SECTION 126. Subsections (b), (c), (d), (e), and (g), Section 1001.056, Education Code, are amended to read as follows:

(b) The department [agency] shall provide each licensed course provider with course completion certificate numbers to enable the provider to print and issue department-approved [agency-approved] uniform certificates of course completion.

(c) The commission [agency] by rule shall provide for the design of the certificates and the distribution of certificate numbers in a manner that, to the greatest extent possible, prevents the unauthorized production or the misuse of the certificates or certificate numbers.

(d) A certificate under this section must:

(1) be in a form required by the department [agency]; and

(2) include an identifying number by which the department [agency], a court, or the Department of Public Safety [department] may verify its authenticity with the course provider.

(e) The commission by rule shall establish [agency may charge] a fee [of not more than $4] for each course completion certificate number. A course provider that supplies a certificate to an operator shall collect from the operator a fee equal to the amount of the fee paid to the department [agency] for the certificate number.

(g) A course provider shall issue a duplicate certificate by United States mail or commercial delivery. The commission [commissioner] by rule shall determine the amount of the fee for issuance of a duplicate certificate under this subsection.

SECTION 127. Section 1001.057, Education Code, is amended to read as follows:

Sec. 1001.057. ELECTRONIC TRANSMISSION OF DRIVING SAFETY COURSE INFORMATION. The department [agency] shall investigate options to develop and implement procedures to electronically transmit information relating to driving safety courses to municipal and justice courts.

SECTION 128. Subchapter B, Chapter 1001, Education Code, is amended by adding Sections 1001.058 and 1001.059 to read as follows:

Sec. 1001.058. ADVISORY COMMITTEE. (a) The commission shall establish an advisory committee to advise the commission and department on driver training rules and standards and driver education curriculum.

(b) The advisory committee consists of seven members appointed for staggered six-year terms by the presiding officer of the commission, with the approval of the commission, as follows:

(1) one member representing a driver education school;

(2) one member representing a driving safety school;

(3) one member representing a course provider;

(4) one instructor;

(5) one employee of the Department of Public Safety; and

(6) two members representing the public.

(c) The presiding officer of the commission shall appoint the presiding officer of the advisory committee.

Sec. 1001.059. COMPLAINTS. (a) The department shall maintain a system to promptly and efficiently act on complaints filed with the department regarding driver training. The department shall maintain information about parties to the complaint, the subject matter of the complaint, a summary of the results of the review or investigation of the complaint, and its disposition.

(b) The department shall make information available describing its procedures for complaint investigation and resolution.

(c) The department shall periodically notify the complaint parties of the status of the complaint until final disposition.

SECTION 129. Section 1001.101, Education Code, as amended by Chapters 1253 (H.B. 339) and 1413 (S.B. 1317), Acts of the 81st Legislature, Regular Session, 2009, is reenacted and amended to read as follows:

Sec. 1001.101. ADULT AND MINOR DRIVER EDUCATION COURSE CURRICULUM AND TEXTBOOKS. (a) The commission [commissioner] by rule shall establish or approve the curriculum and designate the textbooks to be used in a driver education course for minors and adults, including a driver education course conducted by a school district, driver education school, or parent or other individual under Section 521.205, Transportation Code.

(b) A driver education course must require the student to complete:

(1) 7 hours of behind-the-wheel instruction in the presence of a person who holds a driver education instructor license or who meets the requirements imposed under Section 521.205, Transportation Code;

(2) 7 hours of observation instruction in the presence of a person who holds a driver education instructor license or who meets the requirements imposed under Section 521.205, Transportation Code; and

(3) 20 hours of behind-the-wheel instruction, including at least 10 hours of instruction that takes place at night, in the presence of an adult who meets the requirements of Section 521.222(d)(2), Transportation Code.

SECTION 130. Subsection (a), Section 1001.1015, Education Code, is amended to read as follows:

(a) The commission [commissioner] by rule shall establish the curriculum and designate the educational materials to be used in a driver education course exclusively for adults.

SECTION 131. Section 1001.102, Education Code, is amended to read as follows:

Sec. 1001.102. ALCOHOL AWARENESS INFORMATION. (a) The commission [agency] by rule shall require that information relating to alcohol awareness and the effect of alcohol on the effective operation of a motor vehicle be included in the curriculum of any driver education course or driving safety course.

(b) In developing rules under this section, the commission [agency] shall consult with the Department of Public Safety [department].

SECTION 132. Section 1001.1025, Education Code, is amended to read as follows:

Sec. 1001.1025. MOTORCYCLE AWARENESS INFORMATION. (a) The commission [agency] by rule shall require that information relating to motorcycle awareness, the dangers of failing to yield the right-of-way to a motorcyclist, and the need to share the road with motorcyclists be included in the curriculum of any driver education course or driving safety course.

(b) In developing rules under this section, the commission [agency] shall consult with the Department of Public Safety [department].

SECTION 133. Subsections (b), (d), and (e), Section 1001.103, Education Code, are amended to read as follows:

(b) The department [agency] shall develop standards for a separate school certification and approve curricula for drug and alcohol driving awareness programs that include one or more courses. Except as provided by commission [agency] rule, a program must be offered in the same manner as a driving safety course.

(d) In accordance with Section 461.013(b), Health and Safety Code, the department [agency] and the Department of State Health Services [Texas Commission on Alcohol and Drug Abuse] shall enter into a memorandum of understanding for the interagency approval of the required curricula.

(e) The commission [Notwithstanding Section 1001.056, Subchapter D, and Sections 1001.213 and 1001.303, the commissioner] may establish fees in connection with the programs under this section. The fees must be in amounts reasonable and necessary to administer the department's [agency's] duties under this section.

SECTION 134. Sections 1001.104 and 1001.105, Education Code, are amended to read as follows:

Sec. 1001.104. HOSPITAL AND REHABILITATION FACILITIES. (a) The department [agency] shall enter into a memorandum of understanding with the Department of Assistive and Rehabilitative Services [Texas Rehabilitation Commission] and the Department of Public Safety [department] for the interagency development of curricula and licensing criteria for hospital and rehabilitation facilities that teach driver education.

(b) The department [agency] shall administer comprehensive rules governing driver education courses adopted by mutual agreement among the commission [agency], the Department of Assistive and Rehabilitative Services [Texas Rehabilitation Commission], and the Department of Public Safety [department].

Sec. 1001.105. TEXAS DEPARTMENT OF INSURANCE. The department [agency] shall enter into a memorandum of understanding with the Texas Department of Insurance for the interagency development of a curriculum for driving safety courses.

SECTION 135. Subsections (b), (c), and (d), Section 1001.106, Education Code, are amended to read as follows:

(b) The commission [commissioner] by rule shall provide minimum standards of curriculum relating to operation of vehicles at railroad and highway grade crossings.

(c) Subchapter F, Chapter 51, Occupations Code, Section 51.353, Occupations Code, and Sections [1001.454,] 1001.456[,] and 1001.553 of this code do not apply to a violation of this section or a rule adopted under this section.

(d) Section 51.352, Occupations Code, and Sections 1001.455(a)(6), 1001.501, [1001.551, 1001.552,] and 1001.554 of this code do not apply to a violation of this section.

SECTION 136. Section 1001.107, Education Code, is amended to read as follows:

Sec. 1001.107. INFORMATION RELATING TO LITTER PREVENTION. (a) The commission [commissioner] by rule shall require that information relating to litter prevention be included in the curriculum of each driver education and driving safety course.

(b) In developing rules under this section, the commission [commissioner] shall consult the Department of Public Safety [department].

SECTION 137. Subsections (a) and (c), Section 1001.108, Education Code, are amended to read as follows:

(a) The commission [commissioner] by rule shall require that information relating to anatomical gifts be included in the curriculum of each driver education course and driving safety course.

(c) In developing rules under this section, the commission [commissioner] shall consult with the Department of Public Safety [department] and the [Texas] Department of State Health Services.

SECTION 138. Section 1001.110, Education Code, is amended to read as follows:

Sec. 1001.110. INFORMATION RELATING TO DRIVING DISTRACTIONS. (a) The commission [commissioner] by rule shall require that information relating to the effect of using a wireless communication device or engaging in other actions that may distract a driver on the safe or effective operation of a motor vehicle be included in the curriculum of each driver education course or driving safety course.

(b) In developing rules under this section, the commission [commissioner] shall consult with the Department of Public Safety [department].

SECTION 139. Subsection (a), 1001.111, Education Code, is amended to read as follows:

(a) The commission [commissioner] by rule shall provide minimum standards of curriculum for and designate the educational materials to be used in a driving safety course designed for drivers younger than 25 years of age.

SECTION 140. Sections 1001.151, 1001.152, and 1001.153, Education Code, are amended to read as follows:

Sec. 1001.151. APPLICATION, LICENSE, AND REGISTRATION FEES. (a) The commission by rule [commissioner] shall establish [collect] application, license, and registration fees. The fees must be in amounts sufficient to cover administrative costs and are nonrefundable. The department shall collect the application, license, and registration fees.

(b) The commission by rule shall establish a fee for:

(1) an initial driver education school license and [is $1,000 plus $850] for each branch location;

(2) [.

[(c) The fee for] an initial driving safety school license;

(3) [is an appropriate amount established by the commissioner not to exceed $200.

[(d) The fee for] an initial course provider license [is an appropriate amount established by the commissioner not to exceed $2,000], except that the commission [agency] may waive the fee if revenue received from the course provider is sufficient to cover the cost of licensing the course provider;

(4) the [.

[(e) The] annual renewal [fee] for a course provider, driving safety school, driver education school, or branch location [is an appropriate amount established by the commissioner not to exceed $200], except that the commission [agency] may waive the fee if revenue generated by the issuance of course completion certificate numbers and driver education certificates is sufficient to cover the cost of administering this chapter and Article 45.0511, Code of Criminal Procedure;

(5) [.

[(f) The fee for] a change of address of[:

[(1)] a driver education school, [is $180; and

[(2) a] driving safety school, or course provider;

(6) [is $50.

[(g) The fee for] a change of name of:

(A) [(1)] a driver education school or course provider or an owner of a driver education school or course provider [is $100]; or

(B) [and

[(2)] a driving safety school or owner of a driving safety school;

(7) [is $50.

[(h) The application fee for] each additional driver education or driving safety course at a driver training school; and

(8) an [is $25.

[(i) The application fee for:

[(1) each director is $30; and

[(2) each assistant director or administrative staff member is $15.

[(j) Each] application for approval of a driving safety course that has not been evaluated by the department [commissioner must be accompanied by a nonrefundable fee of $9,000].

(c) [(k)] An application for an original driver education or driving safety instructor license must be accompanied by a processing fee [of $50] and an annual license fee [of $25], except that the department [commissioner] may not collect the processing fee from an applicant for a driver education instructor license who is currently teaching a driver education course in a public school in this state.

(d) [(l)] The commission [commissioner] shall establish the amount of the fee for a duplicate license.

(e) [(m)] The commission [commissioner] may establish a fee for an application for approval to offer a driver education course by an alternative method of instruction under Section 1001.3541 in an amount the commission [commissioner] considers appropriate, not to exceed the amount sufficient to cover the costs of considering the application.

Sec. 1001.152. DUTY TO REVIEW AND RECOMMEND ADJUSTMENTS IN FEE AMOUNTS. The commission [commissioner] shall periodically review the amounts of fees and recommend to the legislature adjustments to those amounts.

Sec. 1001.153. COMPLAINT INVESTIGATION FEE. (a) The commission [commissioner] shall establish the amount of the fee to investigate a driver training school or course provider to resolve a complaint against the school or course provider.

(b) The fee may be charged only if:

(1) the complaint could not have been resolved solely by telephone or in writing;

(2) a representative of the department [agency] visited the school or course provider as a part of the complaint resolution process; and

(3) the school or course provider was found to be at fault.

SECTION 141. Subsection (b), Section 1001.202, Education Code, is amended to read as follows:

(b) A driving safety school may use multiple classroom locations to teach a driving safety course if each location:

(1) is approved by the parent school and the department [agency];

(2) has the same name as the parent school; and

(3) has the same ownership as the parent school.

SECTION 142. Sections 1001.203, 1001.204, 1001.205, and 1001.206, Education Code, are amended to read as follows:

Sec. 1001.203. APPLICATION. To operate or do business in this state, a driver training school must apply to the department [commissioner] for the appropriate license. The application must:

(1) be in writing;

(2) be in the form prescribed by the department [commissioner];

(3) include all required information; and

(4) be verified.

Sec. 1001.204. REQUIREMENTS FOR DRIVER EDUCATION SCHOOL LICENSE. The department [commissioner] shall approve an application for a driver education school license if, on investigation of the premises of the school, it is determined that the school:

(1) has courses, curricula, and instruction of a quality, content, and length that reasonably and adequately achieve the stated objective for which the courses, curricula, and instruction are offered;

(2) has adequate space, equipment, instructional material, and instructors to provide training of good quality in the classroom and behind the wheel;

(3) has [directors,] instructors[, and administrators] who have adequate educational qualifications and experience;

(4) provides to each student before enrollment:

(A) a copy of:

(i) the refund policy;

(ii) the schedule of tuition, fees, and other charges; and

(iii) the regulations relating to absence, grading policy, and rules of operation and conduct; and

(B) the department's name, mailing address, [and] telephone number, and Internet website address [of the agency] for the purpose of directing complaints to the department [agency];

(5) maintains adequate records as prescribed by the department [commissioner] to show attendance and progress or grades and enforces satisfactory standards relating to attendance, progress, and conduct;

(6) on completion of training, issues each student a certificate indicating the course name and satisfactory completion;

(7) complies with all county, municipal, state, and federal regulations, including fire, building, and sanitation codes and assumed name registration;

(8) is financially sound and capable of fulfilling its commitments for training;

(9) has [administrators, directors,] owners[,] and instructors who are of good reputation and character;

(10) maintains and publishes as part of its student enrollment contract the proper policy for the refund of the unused portion of tuition, fees, and other charges if a student fails to take the course or withdraws or is discontinued from the school at any time before completion;

(11) does not use erroneous or misleading advertising, either by actual statement, omission, or intimation, as determined by the department [commissioner];

(12) does not use a name similar to the name of another existing school or tax-supported educational institution in this state, unless specifically approved in writing by the executive director [commissioner];

(13) submits to the department [agency] for approval the applicable course hour lengths and curriculum content for each course offered by the school;

(14) does not owe an administrative penalty for a violation of [under] this chapter; and

(15) meets any additional criteria required by the department [agency].

Sec. 1001.205. REQUIREMENTS FOR DRIVING SAFETY SCHOOL LICENSE. The department [commissioner] shall approve an application for a driving safety school license if on investigation the department [agency] determines that the school:

(1) has driving safety courses, curricula, and instruction of a quality, content, and length that reasonably and adequately achieve the stated objective for which the course, curricula, and instruction are developed by the course provider;

(2) has adequate space, equipment, instructional material, and instructors to provide training of good quality;

(3) has instructors [and administrators] who have adequate educational qualifications and experience;

(4) maintains adequate records as prescribed by the department [commissioner] to show attendance and progress or grades and enforces satisfactory standards relating to attendance, progress, and conduct;

(5) complies with all county, municipal, state, and federal laws, including fire, building, and sanitation codes and assumed name registration;

(6) has [administrators,] owners[,] and instructors who are of good reputation and character;

(7) does not use erroneous or misleading advertising, either by actual statement, omission, or intimation, as determined by the department [commissioner];

(8) does not use a name similar to the name of another existing school or tax-supported educational establishment in this state, unless specifically approved in writing by the executive director [commissioner];

(9) maintains and uses the approved contract and policies developed by the course provider;

(10) does not owe an administrative penalty for a violation of [under] this chapter;

(11) will not provide a driving safety course to a person for less than $25; and

(12) meets additional criteria required by the department [commissioner].

Sec. 1001.206. REQUIREMENTS FOR COURSE PROVIDER LICENSE. The department [commissioner] shall approve an application for a course provider license if on investigation the department [agency] determines that:

(1) the course provider has an approved course that at least one licensed driving safety school is willing to offer;

(2) the course provider has adequate educational qualifications and experience;

(3) the course provider will:

(A) develop and provide to each driving safety school that offers the approved course a copy of:

(i) the refund policy; and

(ii) the regulations relating to absence, grading policy, and rules of operation and conduct; and

(B) provide to the driving safety school the department's name, mailing address, [and] telephone number, and Internet website address [of the agency] for the purpose of directing complaints to the department [agency];

(4) a copy of the information provided to each driving safety school under Subdivision (3) will be provided to each student by the school before enrollment;

(5) not later than the 15th working day after the date a [the] person successfully completes the course, the course provider will issue and deliver to the person by United States mail or commercial delivery [mail] a uniform certificate of course completion [to the person] indicating the course name and successful completion;

(6) the course provider maintains adequate records as prescribed by the department [commissioner] to show attendance and progress or grades and enforces satisfactory standards relating to attendance, progress, and conduct;

(7) the course provider complies with all county, municipal, state, and federal laws, including assumed name registration and other applicable requirements;

(8) the course provider is financially sound and capable of fulfilling its commitments for training;

(9) the course provider is of good reputation and character;

(10) the course provider maintains and publishes as a part of its student enrollment contract the proper policy for the refund of the unused portion of tuition, fees, and other charges if a student fails to take the course or withdraws or is discontinued from the school at any time before completion;

(11) the course provider does not use erroneous or misleading advertising, either by actual statement, omission, or intimation, as determined by the department [commissioner];

(12) the course provider does not use a name similar to the name of another existing school or tax-supported educational institution in this state, unless specifically approved in writing by the executive director [commissioner];

(13) the course provider does not owe an administrative penalty for a violation of [under] this chapter; and

(14) the course provider meets additional criteria required by the department [commissioner].

SECTION 143. Subsections (a) and (b), Section 1001.207, Education Code, are amended to read as follows:

(a) Before a driver education school may be issued a license, the school must file a corporate surety bond with the department [commissioner] in the amount of:

(1) $10,000 for the primary location of the school; and

(2) $5,000 for each branch location.

(b) A bond issued under Subsection (a) must be:

(1) issued in a form approved by the department [commissioner];

(2) issued by a company authorized to do business in this state;

(3) payable to the state to be used only for payment of a refund due to a student or potential student;

(4) conditioned on the compliance of the school and its officers, agents, and employees with this chapter and rules adopted under this chapter; and

(5) issued for a period corresponding to the term of the license.

SECTION 144. Subsection (b), Section 1001.209, Education Code, is amended to read as follows:

(b) A bond issued under Subsection (a) must be:

(1) issued by a company authorized to do business in this state;

(2) payable to the state to be used:

(A) for payment of a refund due a student of the course provider's approved course;

(B) to cover the payment of unpaid fees or penalties assessed by the executive director [agency]; or

(C) to recover any cost associated with providing course completion certificate numbers, including the cancellation of certificate numbers;

(3) conditioned on the compliance of the course provider and its officers, agents, and employees with this chapter and rules adopted under this chapter; and

(4) issued for a period corresponding to the term of the license.

SECTION 145. Section 1001.210, Education Code, is amended to read as follows:

Sec. 1001.210. ALTERNATE FORM OF SECURITY. Instead of the bond required by Section 1001.207 or 1001.209, a driver education school or course provider may provide another form of security that is:

(1) [(A)] approved by the department [commissioner]; and

(2) [(B)] in the amount required for a comparable bond under Section 1001.207 or 1001.209.

SECTION 146. Subsections (a) and (b), Section 1001.211, Education Code, are amended to read as follows:

(a) The executive director [commissioner] shall issue a license to an applicant for a license under this subchapter if:

(1) the application is submitted in accordance with this subchapter; and

(2) the applicant meets the requirements of this chapter.

(b) A license must be in a form determined by the department [commissioner] and must show in a clear and conspicuous manner:

(1) the date of issuance, effective date, and term of the license;

(2) the name and address of the driver training school or course provider;

(3) the authority for and conditions of approval;

(4) the executive director's [commissioner's] signature; and

(5) any other fair and reasonable representation that is consistent with this chapter and that the department [commissioner] considers necessary.

SECTION 147. Section 1001.212, Education Code, is amended to read as follows:

Sec. 1001.212. NOTICE OF DENIAL OF LICENSE. The department [commissioner] shall provide a person whose application for a license under this subchapter is denied a written statement of the reasons for the denial.

SECTION 148. Subsections (c) and (d), Section 1001.213, Education Code, are amended to read as follows:

(c) The commission may establish [Instead of the] fees in amounts that are different from the amounts established under [required by] Section 1001.151[, the fee] for a new driver education school or course provider license under Subsection (b) and [is $500, plus $200] for each branch location[,] if:

(1) the new owner is substantially similar to the previous owner; and

(2) there is no significant change in the management or control of the driver education school or course provider.

(d) The department [commissioner] is not required to reinspect a school or a branch location after a change of ownership.

SECTION 149. Section 1001.214, Education Code, is amended to read as follows:

Sec. 1001.214. DUPLICATE LICENSE. A duplicate license may be issued to a driver training school or course provider if:

(1) the original license is lost or destroyed; and

(2) an affidavit of that fact is filed with the department [agency].

SECTION 150. Section 1001.251, Education Code, is amended to read as follows:

Sec. 1001.251. LICENSE REQUIRED FOR INSTRUCTOR. (a) A person may not teach or provide driver education, either as an individual or in a driver education school, or conduct any phase of driver education, unless the person holds a driver education instructor license issued by the executive director [agency].

(b) A person may not teach or provide driving safety training, either as an individual or in a driving safety school, or conduct any phase of driving safety education, unless the person holds a driving safety instructor license issued by the executive director [agency]. This subsection does not apply to an instructor of a driving safety course that does not provide a uniform certificate of course completion to its graduates.

SECTION 151. Subsections (b), (c), (d), (e), and (f), Section 1001.2511, Education Code, are amended to read as follows:

(b) The department [agency] shall review the national criminal history record information of a person who holds a license described by Subsection (a).

(c) The executive director [agency] shall place a license described by Subsection (a) on inactive status for the license holder's failure to comply with a deadline for submitting information required under this section.

(d) The department [agency] may allow a person who is applying for a license described by Subsection (a) and who currently resides in another state to submit the person's fingerprints and other required information in a manner that does not impose an undue hardship on the person.

(e) The commission [commissioner] may adopt rules to administer this section, including rules establishing:

(1) deadlines for a person to submit fingerprints and photographs in compliance with this section;

(2) sanctions for a person's failure to comply with the requirements of this section, including suspension or revocation of or refusal to issue a license described by Subsection (a); and

(3) notification to a driver education school of relevant information obtained by the department [agency] under this section.

(f) The department [agency] is not civilly or criminally liable for an action taken in compliance with this section.

SECTION 152. Section 1001.2512, Education Code, is amended to read as follows:

Sec. 1001.2512. FEES FOR CRIMINAL HISTORY RECORD INFORMATION REVIEW. The commission [commissioner] by rule shall require a person submitting to a national criminal history record information review under Section 1001.2511 or the driver education school employing the person, as determined by the department [agency], to pay a fee for the review in an amount not to exceed the amount of any fee imposed on an application for certification under Subchapter B, Chapter 21, for a national criminal history record information review under Section 22.0837.

SECTION 153. Subsections (a), (b), and (d), Section 1001.2514, Education Code, are amended to read as follows:

(a) A driver education school shall discharge or refuse to hire as an instructor an employee or applicant for employment if the department [agency] obtains information through a criminal history record information review that:

(1) the employee or applicant has been convicted of:

(A) a felony offense under Title 5, Penal Code;

(B) an offense on conviction of which a defendant is required to register as a sex offender under Chapter 62, Code of Criminal Procedure; or

(C) an offense under the laws of another state or federal law that is equivalent to an offense under Paragraph (A) or (B); and

(2) at the time the offense occurred, the victim of the offense described by Subdivision (1) was under 18 years of age or was enrolled in a public school.

(b) The executive director [agency] shall suspend or revoke a license described by Section 1001.2511(a) held by a person under this subchapter and shall refuse to issue or renew a license described by Section 1001.2511(a) to a person under this subchapter if the person has been convicted of an offense described by Subsection (a) of this section.

(d) A driver education school may discharge an employee who serves as an instructor if the school obtains information of the employee's conviction of a felony or of a misdemeanor involving moral turpitude that the employee did not disclose to the school or the department [agency]. An employee discharged under this subsection is considered to have been discharged for misconduct for purposes of Section 207.044, Labor Code.

SECTION 154. Section 1001.252, Education Code, is amended to read as follows:

Sec. 1001.252. SIGNATURE AND SEAL ON LICENSE REQUIRED. A license under this subchapter must be signed by the executive director [commissioner].

SECTION 155. Subsections (a), (b), (c), (d), (e), and (f), Section 1001.253, Education Code, are amended to read as follows:

(a) The department [commissioner] shall establish standards for certification of professional and paraprofessional personnel who conduct driver education programs in driver education schools.

(b) A driver education instructor license authorizing a person to teach or provide behind-the-wheel training may not be issued unless the person has successfully completed six semester hours of driver and traffic safety education or a program of study in driver education approved by the department [commissioner] from an approved driver education school.

(c) A person who holds a driver education instructor license authorizing behind-the-wheel training may not be approved to assist a classroom instructor in the classroom phase of driver education unless the person has successfully completed the three additional semester hours of training required for a classroom instructor or a program of study in driver education approved by the department [commissioner].

(d) Except as provided by Subsection (g) or Section 1001.254, a driver education instructor license authorizing a person to teach or provide classroom training may not be issued unless the person:

(1) has completed nine semester hours of driver and traffic safety education or a program of study in driver education approved by the department [commissioner] from an approved driver education school; and

(2) holds a teaching certificate and any additional certification required to teach driver education.

(e) A driver education instructor who has completed the educational requirements prescribed by Subsection (d)(1) may not teach instructor training classes unless the instructor has successfully completed a supervising instructor development program consisting of at least six additional semester hours or a program of study in driver education approved by the department [commissioner] that includes administering driver education programs and supervising and administering traffic safety education.

(f) A driver education school may submit for department [agency] approval a curriculum for an instructor development program for driver education instructors. The program must:

(1) be taught by a person who has completed a supervising instructor development program under Subsection (e); and

(2) satisfy the requirements of this section for the particular program or type of training to be provided.

SECTION 156. Subsection (a), Section 1001.254, Education Code, is amended to read as follows:

(a) A temporary driver education instructor license may be issued authorizing a person to teach or provide classroom driver education training if the person:

(1) has completed the educational requirements prescribed by Section 1001.253(d)(1);

(2) holds a Texas teaching certificate with an effective date before February 1, 1986;

(3) meets all license requirements, other than successful completion of the examination required under rules adopted by the commissioner of education [State Board for Educator Certification] to revalidate the teaching certificate; and

(4) demonstrates, in a manner prescribed by the department [commissioner], the intention to comply with the examination requirement at the first available opportunity.

SECTION 157. Subsections (a), (b), and (c), Section 1001.255, Education Code, are amended to read as follows:

(a) The department [agency] shall regulate as a driver education school a driver education instructor who:

(1) teaches driver education courses in a county having a population of 50,000 or less; and

(2) does not teach more than 200 students annually.

(b) An instructor described by Subsection (a) must submit to the department [agency] an application for an initial or renewal driver education school license, together with all required documentation and information.

(c) The department [commissioner] may waive initial or renewal driver education school license fees or the fee for a director or administrative staff member.

SECTION 158. Section 1001.256, Education Code, is amended to read as follows:

Sec. 1001.256. DUPLICATE LICENSE. A duplicate license may be issued to a driver education instructor or driving safety instructor if:

(1) the original license is lost or destroyed; and

(2) an affidavit of that fact is filed with the department [agency].

SECTION 159. Section 1001.257, Education Code, is amended to read as follows:

Sec. 1001.257. DENIAL OF LICENSE. The executive director [commissioner] may not issue or renew a driver education instructor license, including a temporary license, to a person who has six or more points assigned to the person's driver's license under Subchapter B, Chapter 708, Transportation Code.

SECTION 160. Section 1001.303, Education Code, is amended to read as follows:

Sec. 1001.303. RENEWAL OF SCHOOL OR COURSE PROVIDER LICENSE. (a) To renew the license of a driver education school, driving safety school, or course provider, the school or course provider must submit to the department [commissioner] a complete application for renewal at least 30 days before the expiration date of the license.

(b) A school or course provider that does not comply with Subsection (a) must, as a condition of renewal of the person's license, pay a late renewal fee. The late renewal fee is in addition to the annual renewal fee. The commission by rule shall establish a late renewal fee [must be in the amount established by board rule of at least $100, subject to Subchapter D].

(c) The department [commissioner] may reexamine a driver education school's premises.

(d) The executive director [commissioner] shall renew or cancel the driver education school, driving safety school, or course provider license.

SECTION 161. Subsections (b) and (c), Section 1001.304, Education Code, are amended to read as follows:

(b) The continuing education must be:

(1) in courses approved by the department [commissioner]; and

(2) for the number of hours established by the commission [commissioner].

(c) An applicant who does not comply with Subsection (a) must pay a late renewal fee in the amount established by commission rule [of $25].

SECTION 162. Subsections (a) and (b), Section 1001.351, Education Code, are amended to read as follows:

(a) Not later than the 15th working day after the course completion date, a course provider or a person at the course provider's facilities shall issue and deliver by United States mail or commercial delivery a uniform certificate of course completion [by mail or commercial delivery] to a person who successfully completes an approved driving safety course.

(b) A course provider shall electronically submit to the department [agency] in the manner established by the department [agency] data identified by the department [agency] relating to uniform certificates of course completion issued by the course provider.

SECTION 163. Subsections (a) and (b), Section 1001.354, Education Code, are amended to read as follows:

(a) A driving safety course may be taught at a driving safety school if the school is approved by the department [agency].

(b) A driving safety school may teach an approved driving safety course by an alternative method that does not require students to be present in a classroom if the department [commissioner] approves the alternative method. The department [commissioner] may approve the alternative method if:

(1) the department [commissioner] determines that the approved driving safety course can be taught by the alternative method; and

(2) the alternative method includes testing and security measures that are at least as secure as the measures available in the usual classroom setting.

SECTION 164. Section 1001.3541, Education Code, is amended to read as follows:

Sec. 1001.3541. ALTERNATIVE METHOD OF INSTRUCTION FOR DRIVER EDUCATION COURSE. (a) A driver education school may teach all or part of the classroom portion of an approved driver education course by an alternative method of instruction that does not require students to be present in a classroom if the department [commissioner] approves the alternative method.

(b) The department [commissioner] may approve the alternative method only if:

(1) the alternative method includes testing and security measures that the department [commissioner] determines are at least as secure as the measures available in the usual classroom setting; and

(2) the course, with the use of the alternative method, satisfies any other requirement applicable to a course in which the classroom portion is taught to students in the usual classroom setting.

SECTION 165. Subsections (b) and (c), Section 1001.404, Education Code, are amended to read as follows:

(b) The department [commissioner] shall establish annually the rate of interest for a refund at a rate sufficient to provide a deterrent to the retention of student money.

(c) The department [agency] may except a driver education school or course provider from the payment of interest if the school or course provider makes a good-faith effort to refund tuition, fees, and other charges but is unable to locate the student to whom the refund is owed. On request of the department [agency], the school or course provider shall document the effort to locate a student.

SECTION 166. Sections 1001.451 and 1001.452, Education Code, are amended to read as follows:

Sec. 1001.451. PROHIBITED PRACTICES. A person may not:

(1) use advertising designed to mislead or deceive a prospective student;

(2) fail to notify the department [commissioner] of the discontinuance of the operation of a driver training school before the fourth working day after the date of cessation of classes and make available accurate records as required by this chapter;

(3) issue, sell, trade, or transfer:

(A) a uniform certificate of course completion or driver education certificate to a person or driver training school not authorized to possess the certificate;

(B) a uniform certificate of course completion to a person who has not successfully completed an approved, six-hour driving safety course; or

(C) a driver education certificate to a person who has not successfully completed a department-approved [commissioner-approved] driver education course;

(4) negotiate a promissory instrument received as payment of tuition or another charge before the student completes 75 percent of the course, except that before that time the instrument may be assigned to a purchaser who becomes subject to any defense available against the school named as payee; or

(5) conduct any part of an approved driver education course or driving safety course without having an instructor physically present in appropriate proximity to the student for the type of instruction being given.

Sec. 1001.452. COURSE OF INSTRUCTION. A driver training school may not maintain, advertise, solicit for, or conduct a course of instruction in this state before the later of:

(1) the 30th day after the date the school applies for a driver training school license; or

(2) the date the school receives a driver training school license from the department [commissioner].

SECTION 167. Subsections (d) and (e), Section 1001.453, Education Code, are amended to read as follows:

(d) Subchapter F, Chapter 51, Occupations Code, Section 51.353, Occupations Code, and Sections [1001.454,] 1001.456(a)[,] and 1001.553 of this code do not apply to a violation of this section or a rule adopted under this section.

(e) Section 51.352, Occupations Code, and Sections 1001.455(a)(6), 1001.501, [1001.551, 1001.552,] and 1001.554 of this code do not apply to a violation of this section.

SECTION 168. Section 1001.455, Education Code, is amended to read as follows:

Sec. 1001.455. DENIAL, SUSPENSION, OR REVOCATION OF INSTRUCTOR LICENSE. (a) The executive director [agency] may deny an application for an instructor license or suspend or revoke the license of an instructor if the instructor:

(1) fails to meet a requirement for issuance of or holding a license under this chapter;

(2) permits fraud or engages in fraudulent practices relating to the application;

(3) induces or countenances fraud or fraudulent practices on the part of an applicant for a driver's license or permit;

(4) permits or engages in any other fraudulent practice in an action between the applicant or license holder and the public;

(5) fails to comply with commission [agency] rules relating to driver instruction; or

(6) fails to comply with this chapter.

(b) Not later than the 10th day after the date of a denial, suspension, or revocation under this section, the department [agency] shall notify the applicant or license holder of that action by certified mail.

SECTION 169. Section 1001.456, Education Code, is amended to read as follows:

Sec. 1001.456. OTHER DISCIPLINARY ACTIONS. (a) If the executive director [agency] believes that a driver education school or instructor has violated this chapter or a rule adopted under this chapter, the executive director [agency] may, without notice:

(1) order a peer review;

(2) suspend the enrollment of students in the school or the offering of instruction by the instructor; or

(3) suspend the right to purchase driver education certificates.

(b) If the executive director [agency] believes that a course provider, driving safety school, or driving safety instructor has violated this chapter or a rule adopted under this chapter, the executive director [agency] may, without notice:

(1) order a peer review of the course provider, driving safety school, or driving safety instructor;

(2) suspend the enrollment of students in the school or the offering of instruction by the instructor; or

(3) suspend the right to purchase course completion certificate numbers.

(c) A peer review ordered under this section must be conducted by a team of knowledgeable persons selected by the department [agency]. The team shall provide the department [agency] with an objective assessment of the content of the school's or course provider's curriculum and its application. The school or course provider shall pay the costs of the peer review.

(d) A suspension of enrollment under Subsection (a)(2) or (b)(2) means a ruling by the executive director [commissioner] that restricts a school from:

(1) accepting enrollments or reenrollments;

(2) advertising;

(3) soliciting; or

(4) directly or indirectly advising prospective students of its program or course offerings.

SECTION 170. Section 1001.458, Education Code, is amended to read as follows:

Sec. 1001.458. SURRENDER OF LICENSE. (a) A license holder whose license is suspended or revoked shall surrender the license to the department [agency] not later than the fifth day after the date of suspension or revocation.

(b) The department [agency] may reinstate a suspended license on full compliance by the license holder with this chapter.

SECTION 171. Section 1001.459, Education Code, is amended to read as follows:

Sec. 1001.459. APPEAL AND REQUEST FOR HEARING. (a) A person aggrieved by a denial, suspension, or revocation of a license may appeal the action and request a hearing before the State Office of Administrative Hearings, which shall promptly set a hearing date and give written notice of the time and place of the hearing to the person. An administrative law judge of the State Office of Administrative Hearings shall conduct the hearing [commissioner].

(b) The administrative law judge shall make findings of fact and conclusions of law and promptly issue to the commission a proposal for a decision about the appealed action [request must be submitted not later than the 15th day after the date the person receives notice under Section 1001.455. On receipt of a request for a hearing, the commissioner shall set a time and place for the hearing and send notice of the time and place to the aggrieved person].

SECTION 172. Subsections (a), (b), and (c), Section 1001.553, Education Code, are amended to read as follows:

(a) After an opportunity for a hearing, the executive director or commission [commissioner] may impose an administrative penalty on a person who violates this chapter or a rule adopted under this chapter.

(b) The amount of the penalty may not exceed $5,000 [$1,000] a day for each violation.

(c) An administrative penalty under this section shall be imposed and collected as provided by Subchapter F, Chapter 51, Occupations Code. [The attorney general, at the request of the agency, may bring an action to collect the penalty.]

SECTION 173. Subsection (b), Section 1001.555, Education Code, is amended to read as follows:

(b) The department [agency] shall contract with the Department of Public Safety [department] to provide undercover and investigative assistance in the enforcement of Subsection (a).

SECTION 174. Subsections (a) and (l), Article 15.27, Code of Criminal Procedure, are amended to read as follows:

(a) A law enforcement agency that arrests any person or refers a child to the office or official designated by the juvenile board who the agency believes is enrolled as a student in a public primary or secondary school, for an offense listed in Subsection (h), shall attempt to ascertain whether the person is so enrolled. If the law enforcement agency ascertains that the individual is enrolled as a student in a public primary or secondary school, the head of the agency or a person designated by the head of the agency shall orally notify the superintendent or a person designated by the superintendent in the school district in which the student is enrolled of that arrest or referral within 24 hours after the arrest or referral is made, or before the next school day, whichever is earlier. If the law enforcement agency cannot ascertain whether the individual is enrolled as a student, the head of the agency or a person designated by the head of the agency shall orally notify the superintendent or a person designated by the superintendent in the school district in which the student is believed to be enrolled of that arrest or detention within 24 hours after the arrest or detention, or before the next school day, whichever is earlier. If the individual is a student, the superintendent or the superintendent's designee shall immediately notify all instructional and support personnel who have responsibility for supervision of the student. All personnel shall keep the information received in this subsection confidential. The commissioner of education [State Board for Educator Certification] may revoke or suspend the certification of personnel who intentionally violate this subsection. Within seven days after the date the oral notice is given, the head of the law enforcement agency or the person designated by the head of the agency shall mail written notification, marked "PERSONAL and CONFIDENTIAL" on the mailing envelope, to the superintendent or the person designated by the superintendent. The written notification must include the facts contained in the oral notification, the name of the person who was orally notified, and the date and time of the oral notification. Both the oral and written notice shall contain sufficient details of the arrest or referral and the acts allegedly committed by the student to enable the superintendent or the superintendent's designee to determine whether there is a reasonable belief that the student has engaged in conduct defined as a felony offense by the Penal Code. The information contained in the notice shall be considered by the superintendent or the superintendent's designee in making such a determination.

(l) If a school district board of trustees learns of a failure by the superintendent of the district or a district principal to provide a notice required under Subsection (a), (a-1), or (b), the board of trustees shall report the failure to the commissioner of education [State Board for Educator Certification]. If the governing body of a private primary or secondary school learns of a failure by the principal of the school to provide a notice required under Subsection (e), and the principal holds a certificate issued under Subchapter B, Chapter 21, Education Code, the governing body shall report the failure to the commissioner of education [State Board for Educator Certification].

SECTION 175. Subsection (b), Article 42.018, Code of Criminal Procedure, is amended to read as follows:

(b) Not later than the fifth day after the date a person who holds a certificate issued under Subchapter B, Chapter 21, Education Code, is convicted or granted deferred adjudication on the basis of an offense, the clerk of the court in which the conviction or deferred adjudication is entered shall provide to the commissioner of education [State Board for Educator Certification] written notice of the person's conviction or deferred adjudication, including the offense on which the conviction or deferred adjudication was based.

SECTION 176. Subsection (b), Article 45.0511, Code of Criminal Procedure, is amended to read as follows:

(b) The judge shall require the defendant to successfully complete a driving safety course approved by the Texas Department of Licensing and Regulation [Education Agency] or a course under the motorcycle operator training and safety program approved by the designated state agency under Chapter 662, Transportation Code, if:

(1) the defendant elects driving safety course or motorcycle operator training course dismissal under this article;

(2) the defendant:

(A) has not completed an approved driving safety course or motorcycle operator training course, as appropriate, within the 12 months preceding the date of the offense; or

(B) does not have a valid Texas driver's license or permit, is a member, or the spouse or dependent child of a member, of the United States military forces serving on active duty, and has not completed a driving safety course or motorcycle operator training course, as appropriate, in another state within the 12 months preceding the date of the offense;

(3) the defendant enters a plea under Article 45.021 in person or in writing of no contest or guilty on or before the answer date on the notice to appear and:

(A) presents in person or by counsel to the court a request to take a course; or

(B) sends to the court by certified mail, return receipt requested, postmarked on or before the answer date on the notice to appear, a written request to take a course;

(4) the defendant:

(A) has a valid Texas driver's license or permit; or

(B) is a member, or the spouse or dependent child of a member, of the United States military forces serving on active duty;

(5) the defendant is charged with an offense to which this article applies, other than speeding at a speed of:

(A) 95 miles per hour or more; or

(B) 25 miles per hour or more over the posted speed limit; and

(6) the defendant provides evidence of financial responsibility as required by Chapter 601, Transportation Code.

SECTION 177. Subsections (d) and (e), Section 261.308, Family Code, are amended to read as follows:

(d) The department shall release information regarding a person alleged to have committed abuse or neglect to persons who have control over the person's access to children, including, as appropriate, the Texas Education Agency, [the State Board for Educator Certification,] the local school board or the school's governing body, the superintendent of the school district, or the school principal or director if the department determines that:

(1) the person alleged to have committed abuse or neglect poses a substantial and immediate risk of harm to one or more children outside the family of a child who is the subject of the investigation; and

(2) the release of the information is necessary to assist in protecting one or more children from the person alleged to have committed abuse or neglect.

(e) On request, the department shall release information about a person alleged to have committed abuse or neglect to the commissioner of education [State Board for Educator Certification] if the commissioner [board] has a reasonable basis for believing that the information is necessary to assist the commissioner [board] in protecting children from the person alleged to have committed abuse or neglect.

SECTION 178. Subsection (b), Section 261.406, Family Code, is amended to read as follows:

(b) The department shall send a copy of the completed report of the department's investigation to the Texas Education Agency, [the State Board for Educator Certification,] the local school board or the school's governing body, the superintendent of the school district, and the school principal or director, unless the principal or director is alleged to have committed the abuse or neglect, for appropriate action. On request, the department shall provide a copy of the report of investigation to the parent, managing conservator, or legal guardian of a child who is the subject of the investigation and to the person alleged to have committed the abuse or neglect. The report of investigation shall be edited to protect the identity of the persons who made the report of abuse or neglect. Other than the persons authorized by the section to receive a copy of the report, Section 261.201(b) applies to the release of the report relating to the investigation of abuse or neglect under this section and to the identity of the person who made the report of abuse or neglect.

SECTION 179. Subsection (i), Section 411.081, Government Code, is amended to read as follows:

(i) A criminal justice agency may disclose criminal history record information that is the subject of an order of nondisclosure under Subsection (d) to the following noncriminal justice agencies or entities only:

(1) [the State Board for Educator Certification;

[(2)] a school district, charter school, private school, regional education service center, commercial transportation company, or education shared service arrangement;

(2) [(3)] the Texas Medical Board;

(3) [(4)] the Texas School for the Blind and Visually Impaired;

(4) [(5)] the Board of Law Examiners;

(5) [(6)] the State Bar of Texas;

(6) [(7)] a district court regarding a petition for name change under Subchapter B, Chapter 45, Family Code;

(7) [(8)] the Texas School for the Deaf;

(8) [(9)] the Department of Family and Protective Services;

(9) [(10)] the Texas Juvenile Justice Department [Youth Commission];

(10) [(11)] the Department of Assistive and Rehabilitative Services;

(11) [(12)] the Department of State Health Services, a local mental health service, a local mental retardation authority, or a community center providing services to persons with mental illness or retardation;

(12) [(13)] the Texas Private Security Board;

(13) [(14)] a municipal or volunteer fire department;

(14) [(15)] the Texas Board of Nursing;

(15) [(16)] a safe house providing shelter to children in harmful situations;

(16) [(17)] a public or nonprofit hospital or hospital district;

(17) [(18) the Texas Juvenile Probation Commission;

[(19)] the securities commissioner, the banking commissioner, the savings and mortgage lending commissioner, the consumer credit commissioner, or the credit union commissioner;

(18) [(20)] the Texas State Board of Public Accountancy;

(19) [(21)] the Texas Department of Licensing and Regulation;

(20) [(22)] the Health and Human Services Commission;

(21) [(23)] the Department of Aging and Disability Services;

(22) [(24)] the Texas Education Agency;

(23) [(25)] the Guardianship Certification Board;

(24) [(26)] a county clerk's office in relation to a proceeding for the appointment of a guardian under Chapter XIII, Texas Probate Code;

(25) [(27)] the Department of Information Resources but only regarding an employee, applicant for employment, contractor, subcontractor, intern, or volunteer who provides network security services under Chapter 2059 to:

(A) the Department of Information Resources; or

(B) a contractor or subcontractor of the Department of Information Resources;

(26) [(28)] the Court Reporters Certification Board;

(27) [(29)] the Texas Department of Insurance; and

(28) [(30)] the Teacher Retirement System of Texas.

SECTION 180. Section 411.0901, Government Code, is amended to read as follows:

Sec. 411.0901. ACCESS TO CRIMINAL HISTORY RECORD INFORMATION: TEXAS EDUCATION AGENCY. (a) The Texas Education Agency is entitled to obtain criminal history record information maintained by the department about a person who:

(1) has applied to the commissioner of education for a certificate under Subchapter B, Chapter 21, Education Code;

(2) is employed or is an applicant for employment by a school district or open-enrollment charter school;

(3) [(2)] is employed or is an applicant for employment by a shared services arrangement, if the employee's or applicant's duties are or will be performed on school property or at another location where students are regularly present; or

(4) [(3)] is employed or is an applicant for employment by an entity that contracts with a school district, open-enrollment charter school, or shared services arrangement if:

(A) the employee or applicant has or will have continuing duties relating to the contracted services; and

(B) the employee or applicant has or will have direct contact with students.

(b) Criminal history record information obtained by the agency in the original form or any subsequent form:

(1) may be used only for a purpose authorized by the Education Code;

(2) may not be released to any person except:

(A) the person who is the subject of the information;

(B) [the State Board for Educator Certification;

[(C)] a local or regional educational entity as provided by Section 411.097; or

(C) [(D)] by court order;

(3) is not subject to disclosure as provided by Chapter 552; and

(4) shall be destroyed by the agency after the information is used for the authorized purposes.

(c) The department shall notify the agency of the arrest of any educator, as defined by Section 5.001, Education Code, who has fingerprints on file with the department. Any record of the notification and any information contained in the notification are not subject to disclosure as provided by Chapter 552.

SECTION 181. Subsection (d), Section 411.097, Government Code, is amended to read as follows:

(d) Criminal history record information obtained by a school district, charter school, private school, service center, commercial transportation company, or shared services arrangement in the original form or any subsequent form:

(1) may not be released to any person except:

(A) the individual who is the subject of the information;

(B) the Texas Education Agency;

(C) [the State Board for Educator Certification;

[(D)] the chief personnel officer of the transportation company, if the information is obtained under Subsection (a)(2); or

(D) [(E)] by court order;

(2) is not subject to disclosure as provided by Chapter 552; and

(3) shall be destroyed by the school district, charter school, private school, service center, commercial transportation company, or shared services arrangement on the earlier of:

(A) the first anniversary of the date the information was originally obtained; or

(B) the date the information is used for the authorized purpose.

SECTION 182. Subsection (a), Section 654.011, Government Code, is amended to read as follows:

(a) The position classification plan and the salary rates and provisions in the General Appropriations Act apply to all hourly, part-time, temporary, and regular, full-time salaried employments in the state departments, agencies, or judicial entities specified in the articles of the General Appropriations Act that appropriate money to:

(1) general government agencies;

(2) health and human services agencies;

(3) the judiciary, except for judges, district attorneys, and assistant district attorneys;

(4) public safety and criminal justice agencies;

(5) natural resources agencies;

(6) business and economic development agencies;

(7) regulatory agencies; and

(8) agencies of public education, but only the Texas Education Agency, the Texas School for the Blind and Visually Impaired, [the State Board for Educator Certification,] and the Texas School for the Deaf.

SECTION 183. Subdivision (7), Section 821.001, Government Code, is amended to read as follows:

(7) "Employer" means any agents or agencies in the state responsible for public education, including the governing board of any school district created under the laws of this state, any county school board, the board of trustees, the board of regents of any college or university, or any other legally constituted board or agency of any public school, but excluding the State Board of Education and[,] the Texas Education Agency[, and the State Board for Educator Certification].

SECTION 184. Section 821.103, Government Code, is amended to read as follows:

Sec. 821.103. CANCELLATION OF TEACHER CERTIFICATE. (a) After receiving notice from the board of trustees of an offense under Section 821.101 and after complying with Chapter 2001 and rules adopted by the commissioner of education [State Board for Educator Certification], the commissioner [State Board for Educator Certification] may cancel the teacher certificate of a person if the commissioner [State Board for Educator Certification] determines that the person committed the offense.

(b) The commissioner of education [executive director of the State Board for Educator Certification] may enter into an agreed sanction.

(c) A criminal prosecution of an offender under Section 821.101 is not a prerequisite to action by the Texas Education Agency [State Board for Educator Certification] or the commissioner of education [its executive director].

SECTION 185. Subsection (a), Section 2054.352, Government Code, is amended to read as follows:

(a) The following licensing entities shall participate in the system established under Section 2054.353:

(1) Texas Board of Chiropractic Examiners;

(2) Court Reporters Certification Board;

(3) State Board of Dental Examiners;

(4) Texas Funeral Service Commission;

(5) Texas Board of Professional Land Surveying;

(6) Texas Medical Board;

(7) Texas Board of Nursing;

(8) Texas Optometry Board;

(9) Department of Agriculture, for licenses issued under Chapter 1951, Occupations Code;

(10) Texas State Board of Pharmacy;

(11) Executive Council of Physical Therapy and Occupational Therapy Examiners;

(12) Texas State Board of Plumbing Examiners;

(13) Texas State Board of Podiatric Medical Examiners;

(14) Texas State Board of Examiners of Psychologists;

(15) State Board of Veterinary Medical Examiners;

(16) Texas Real Estate Commission;

(17) Texas Appraiser Licensing and Certification Board;

(18) Texas Department of Licensing and Regulation;

(19) Texas State Board of Public Accountancy;

(20) commissioner of education, for certificates issued under Subchapter B, Chapter 21, Education Code [State Board for Educator Certification];

(21) Texas Board of Professional Engineers;

(22) Department of State Health Services;

(23) Texas Board of Architectural Examiners;

(24) Texas Racing Commission;

(25) Commission on Law Enforcement Officer Standards and Education; and

(26) Texas Private Security Board.

SECTION 186. Subsection (a), Section 48.102, Human Resources Code, is amended to read as follows:

(a) The department shall send a written report of the department's investigation of alleged abuse, neglect, or exploitation of a disabled adult at a school, as appropriate, to the Texas Education Agency, [the agency responsible for teacher certification,] the local school board or the school's governing body, and the school principal or director, unless the principal or director is alleged to have committed the abuse, neglect, or exploitation. The entity to which the report is sent shall take appropriate action.

SECTION 187. Subtitle B, Title 4, Labor Code, is amended by adding Chapter 315 to read as follows:

CHAPTER 315. ADULT EDUCATION PROGRAMS

Sec. 315.001. DEFINITIONS. In this chapter:

(1) "Adult" means any individual who is over the age of compulsory school attendance prescribed by Section 25.085, Education Code.

(2) "Adult education" means services and instruction provided below the college level for adults by public local education agencies, public nonprofit agencies, or community-based organizations.

(3) "Community-based organization" has the meaning assigned by 20 U.S.C. Section 7801.

Sec. 315.002. COMMISSION DUTIES. (a) The commission shall:

(1) provide adequate staffing to develop, administer, and support a comprehensive statewide adult education program and coordinate related federal and state programs for the education and training of adults;

(2) develop the mechanism and guidelines for the coordination of comprehensive adult education and related skill training services for adults with other entities, including public agencies and private organizations, in planning, developing, and implementing related programs;

(3) administer all state and federal funds for adult education and related skill training services in this state, other than funds that another entity is specifically authorized to administer under other law;

(4) prescribe and administer standards and accrediting policies for adult education;

(5) prescribe and administer rules for teacher certification for adult education;

(6) accept and administer grants, gifts, services, and funds from available sources for use in adult education;

(7) adopt or develop and administer a standardized assessment mechanism for assessing all adult education program participants who need literacy instruction, adult basic education, or secondary education leading to an adult high school diploma or the equivalent;

(8) monitor and evaluate educational and employment outcomes of students who participate in the commission's adult education and literacy programs; and

(9) collaborate with the Texas Education Agency to improve the coordination and implementation of adult education and literacy services in this state.

(b) The assessment mechanism prescribed by Subsection (a)(7) must include an initial basic skills screening instrument and must provide comprehensive information concerning baseline student skills before and student progress after participation in an adult education program.

(c) The commission may adopt rules for the administration of this chapter.

Sec. 315.003. PROVISION OF ADULT EDUCATION PROGRAMS. Adult education programs must be provided by public school districts, public junior colleges, public universities, public nonprofit agencies, and community-based organizations approved in accordance with state statutes and rules adopted by the commission. The programs must be designed to meet the education and training needs of adults to the extent possible using available public and private resources. Bilingual education may be used to instruct students who do not function satisfactorily in English whenever it is appropriate for those students' optimum development.

Sec. 315.004. ADULT EDUCATION ASSESSMENT. The commission shall, in consultation with the Texas Higher Education Coordinating Board, review the standardized assessment mechanism required under Section 315.002(a)(7) and recommend any changes necessary to align the assessment with the assessments designated under Section 51.3062, Education Code, to allow for the proper placement of a student in an adult basic education course or to provide the student with the proper developmental or English as a second language course work, as appropriate.

Sec. 315.005. ADULT EDUCATION ADVISORY COMMITTEE. (a) In this section, "advisory committee" means the adult education advisory committee created under this section.

(b) The commission shall establish an adult education advisory committee composed of not more than seven members appointed by the commission. Members of the advisory committee must have expertise in the field of adult education and may include adult educators, providers, advocates, and current or former adult education program students.

(c) The advisory committee shall advise the commission on:

(1) the development of policies and program priorities that support the development of an educated and skilled workforce in this state; and

(2) any other issue the commission considers appropriate.

Sec. 315.006. STATE FUNDING. (a) Funds shall be appropriated to implement statewide adult basic education, adult bilingual education, high school equivalency, and high school credit programs to eliminate illiteracy in this state and to implement and support a statewide program to meet the total range of adult needs for adult education and related skill training. The commission shall ensure that public local education agencies, public nonprofit agencies, and community-based organizations have direct and equitable access to those funds.

(b) In addition to any amount appropriated under Subsection (a), the legislature may appropriate an additional amount to the commission for the purpose of skill training in direct support of industrial expansion and new business development in locations, industries, and occupations designated by the commission, if the training supports the basic purposes of this chapter. To support the basic purposes of this chapter, the legislature may also appropriate an additional amount to the commission for skill training that is conducted to support the expansion of civilian employment opportunities on United States military reservations.

Sec. 315.007. SERVICE PROVIDER CONTRACTS: COMPETITIVE PROCUREMENT REQUIREMENT. (a) The commission shall use a competitive procurement process to award a contract to a service provider of an adult education program.

(b) The commission shall adopt rules to administer this section.

SECTION 188. Subsection (g), Section 302.062, Labor Code, is amended to read as follows:

(g) Block grant funding under this section does not apply to:

(1) the work and family policies program under Chapter 81;

(2) a program under the skills development fund created under Chapter 303;

(3) the job counseling program for displaced homemakers under Chapter 304;

(4) the Communities In Schools program under Subchapter E, Chapter 33, Education Code, to the extent that funds are available to the commission for that program;

(5) the reintegration of offenders program under Chapter 306;

(6) apprenticeship programs under Chapter 133, Education Code;

(7) the continuity of care program under Section 501.095, Government Code;

(8) employment programs under Chapter 31, Human Resources Code;

(9) the senior citizens employment program under Chapter 101, Human Resources Code;

(10) the programs described by Section 302.021(b)(2);

(11) the community service program under the National and Community Service Act of 1990 (42 U.S.C. Section 12501 et seq.);

(12) the trade adjustment assistance program under Part 2, Subchapter II, Trade Act of 1974 (19 U.S.C. Section 2271 et seq.);

(13) the programs to enhance the employment opportunities of veterans; [and]

(14) the functions of the State Occupational Information Coordinating Committee; and

(15) the adult education program under Chapter 315.

SECTION 189. Subsection (b), Section 504.002, Occupations Code, is amended to read as follows:

(b) This chapter does not apply to an activity or service of a person who:

(1) is employed as a counselor by a federal institution and is providing chemical dependency counseling within the scope of the person's employment;

(2) except as provided by Section 504.1515, is a student, intern, or trainee pursuing a supervised course of study in counseling at a regionally accredited institution of higher education or training institution, if the person:

(A) is designated as a "counselor intern"; and

(B) is engaging in the activity or providing the service as part of the course of study;

(3) is not a resident of this state, if the person:

(A) engages in the activity or provides the service in this state for not more than 30 days during any year; and

(B) is authorized to engage in the activity or provide the service under the law of the state of the person's residence;

(4) is a licensed physician, psychologist, professional counselor, or social worker;

(5) is a religious leader of a congregation providing pastoral chemical dependency counseling within the scope of the person's duties;

(6) is working for or providing counseling with a program exempt under Subchapter C, Chapter 464, Health and Safety Code;

(7) is a school counselor certified by the commissioner of education [State Board for Educator Certification]; or

(8) provides chemical dependency counseling through a program or in a facility that receives funding from the Texas Department of Criminal Justice and who is credentialed as:

(A) a certified criminal justice addictions professional by the International Certification and Reciprocity Consortium; or

(B) having certified criminal justice professional applicant status issued by the Texas Certification Board of Addiction Professionals.

SECTION 190. Subsection (b), Section 501.004, Transportation Code, is amended to read as follows:

(b) This chapter does not apply to:

(1) a trailer or semitrailer used only for the transportation of farm products if the products are not transported for hire;

(2) the filing or recording of a lien that is created only on an automobile accessory, including a tire, radio, or heater;

(3) a motor vehicle while it is owned or operated by the United States; or

(4) a new motor vehicle on loan to a political subdivision of the state for use only in a driver education course approved by the Texas Department of Licensing and Regulation [Central Education Agency].

SECTION 191. Section 521.1601, Transportation Code, as added by Chapter 1253 (H.B. 339), Acts of the 81st Legislature, Regular Session, 2009, is amended to read as follows:

Sec. 521.1601. DRIVER EDUCATION REQUIRED. The department may not issue a driver's license to a person who is younger than 21 years of age unless the person submits to the department a driver education certificate issued under Chapter 1001, Education Code, that states that the person has completed and passed:

(1) a driver education and traffic safety course approved by the Texas Department of Licensing and Regulation [Education Agency] under Section 29.902, Education Code, or a driver education course approved by the Texas Department of Licensing and Regulation [that agency] under Section 1001.101 of that code or approved by the department under Section 521.205; or

(2) if the person is 18 years of age or older, a driver education course approved by the Texas Department of Licensing and Regulation [Education Agency] under Section 1001.101 or 1001.1015, Education Code.

SECTION 192. Section 521.1601, Transportation Code, as added by Chapter 1413 (S.B. 1317), Acts of the 81st Legislature, Regular Session, 2009, is amended to read as follows:

Sec. 521.1601. DRIVER EDUCATION REQUIRED. The department may not issue a driver's license to a person who is younger than 25 years of age unless the person submits to the department a driver education certificate issued under Chapter 1001, Education Code, that states that the person has completed and passed:

(1) a driver education and traffic safety course approved by the Texas Department of Licensing and Regulation [Education Agency] under Section 29.902, Education Code, or a driver education course approved by the Texas Department of Licensing and Regulation [that agency] under Section 1001.101 [1001.101(a)(1)] of that code or approved by the department under Section 521.205; or

(2) if the person is 18 years of age or older, a driver education course approved by the Texas Department of Licensing and Regulation [Education Agency] under Section 1001.101 or 1001.1015 [Section 1001.101(a)(1) or (2)], Education Code.

SECTION 193. Subsection (a), Section 521.1655, Transportation Code, is amended to read as follows:

(a) A driver education school licensed under Chapter 1001, Education Code, [the Texas Driver and Traffic Safety Education Act (Article 4413(29c), Vernon's Texas Civil Statutes)] may administer to a student of that school the vision, highway sign, and traffic law parts of the examination required by Section 521.161.

SECTION 194. Section 521.167, Transportation Code, as added by Chapter 1253 (H.B. 339), Acts of the 81st Legislature, Regular Session, 2009, is amended to read as follows:

Sec. 521.167. WAIVER OF CERTAIN EDUCATION AND EXAMINATION REQUIREMENTS. A person who has completed and passed a driver education course approved by the Texas Department of Licensing and Regulation [Education Agency] under Section 1001.1015, Education Code, is not required to take the highway sign and traffic law parts of the examination required under Section 521.161 if those parts have been successfully completed as determined by a licensed driver education instructor.

SECTION 195. Section 521.203, Transportation Code, is amended to read as follows:

Sec. 521.203. RESTRICTIONS ON CLASS A AND B LICENSES. The department may not issue a Class A or Class B driver's license to a person who:

(1) is under 17 years of age;

(2) is under 18 years of age unless the person has completed a driver training course approved by the Texas Department of Licensing and Regulation [Central Education Agency]; or

(3) has not provided the department with an affidavit, on a form prescribed by the department, that states that no vehicle that the person will drive that requires a Class A or Class B license is a commercial motor vehicle as defined by Section 522.003.

SECTION 196. Subsection (a), Section 521.204, Transportation Code, is amended to read as follows:

(a) The department may issue a Class C driver's license to an applicant under 18 years of age only if the applicant:

(1) is 16 years of age or older;

(2) has submitted to the department a driver education certificate issued under Section 1001.055, Education Code, that states that the person has completed and passed a driver education course approved by the department under Section 521.205 or by the Texas Department of Licensing and Regulation [Education Agency];

(3) has obtained a high school diploma or its equivalent or is a student:

(A) enrolled in a public school, home school, or private school who attended school for at least 80 days in the fall or spring semester preceding the date of the driver's license application; or

(B) who has been enrolled for at least 45 days, and is enrolled as of the date of the application, in a program to prepare persons to pass the high school equivalency exam;

(4) has submitted to the department written parental or guardian permission:

(A) for the department to access the applicant's school enrollment records maintained by the Texas Education Agency; and

(B) for a school administrator or law enforcement officer to notify the department in the event that the person has been absent from school for at least 20 consecutive instructional days; and

(5) has passed the examination required by Section 521.161.

SECTION 197. Subsections (b) and (d), Section 521.205, Transportation Code, are amended to read as follows:

(b) The department may not approve a course unless it determines that the course materials are at least equal to those required in a course approved by the Texas Department of Licensing and Regulation [Education Agency], except that the department may not require that:

(1) the classroom instruction be provided in a room with particular characteristics or equipment; or

(2) the vehicle used for the behind-the-wheel instruction have equipment other than the equipment otherwise required by law for operation of the vehicle on a highway while the vehicle is not being used for driver training.

(d) Completion of a driver education course approved under this section has the same effect under this chapter as completion of a driver education course approved by the Texas Department of Licensing and Regulation [Education Agency].

SECTION 198. Subsections (a) and (c), Section 521.222, Transportation Code, are amended to read as follows:

(a) The department or a driver education school licensed under Chapter 1001, Education Code, [the Texas Driver and Traffic Safety Education Act (Article 4413(29c), Vernon's Texas Civil Statutes)] may issue an instruction permit, including a Class A or Class B driver's license instruction permit, to a person who:

(1) is 15 years of age or older but under 18 years of age;

(2) has satisfactorily completed and passed the classroom phase of an approved driver education course, which may be a course approved under Section 521.205;

(3) meets the requirements imposed under Section 521.204(a)(3) [521.204(3)]; and

(4) has passed each examination required under Section 521.161 other than the driving test.

(c) A driver education school may issue an instruction permit to a person 18 years of age or older who has successfully passed:

(1) a six-hour adult classroom driver education course approved by the Texas Department of Licensing and Regulation [Education Agency]; and

(2) each part of the driver's examination required by Section 521.161 other than the driving test.

SECTION 199. Sections 543.111 and 543.112, Transportation Code, are amended to read as follows:

Sec. 543.111. REGULATION BY CERTAIN STATE AGENCIES. (a) The Texas Commission of Licensing and Regulation [State Board of Education] shall enter into a memorandum of understanding with the Texas Department of Insurance for the interagency development of a curriculum for driving safety courses.

(b) The Texas Commission of Licensing and Regulation and Texas Department of Licensing and Regulation, as appropriate, [Education Agency] shall:

(1) adopt and administer comprehensive rules governing driving safety courses; and

(2) investigate options to develop and implement procedures to electronically transmit information pertaining to driving safety courses to municipal and justice courts.

Sec. 543.112. STANDARDS FOR UNIFORM CERTIFICATE OF COURSE COMPLETION. (a) The Texas Commission of Licensing and Regulation [Education Agency] by rule shall provide for the design and distribution of uniform certificates of course completion so as to prevent to the greatest extent possible the unauthorized production or misuse of the certificates.

(b) The uniform certificate of course completion must include an identifying number by which the Texas Department of Licensing and Regulation [Education Agency], the court, or the department may verify its authenticity with the course provider and must be in a form adopted by the Texas Department of Licensing and Regulation [Education Agency].

(c) The Texas Department of Licensing and Regulation [Education Agency] shall issue duplicate uniform certificates of course completion. The Texas Commission of Licensing and Regulation [State Board of Education] by rule shall determine the amount of the fee to be charged for issuance of a duplicate certificate.

(d) A driving safety course provider shall electronically submit data identified by the Texas Department of Licensing and Regulation [Education Agency] pertaining to issued uniform certificates of course completion to the Texas Department of Licensing and Regulation [agency] as directed by the Texas Department of Licensing and Regulation [agency].

SECTION 200. Subsections (a) and (c), Section 543.113, Transportation Code, are amended to read as follows:

(a) The Texas Department of Licensing and Regulation [Education Agency] shall print the uniform certificates and supply them to persons who are licensed providers of courses approved under Chapter 1001, Education Code [the Texas Driver and Traffic Safety Education Act (Article 4413(29c), Vernon's Texas Civil Statutes)]. The Texas Commission of Licensing and Regulation by rule shall establish [Agency may charge] a fee for each certificate. [The fee may not exceed $4.]

(c) Money collected by the Texas Department of Licensing and Regulation [Education Agency] under this section may be used only to pay monetary awards for information relating to abuse of uniform certificates that leads to the conviction or removal of an approval, license, or authorization.

SECTION 201. Subsection (a), Section 543.114, Transportation Code, is amended to read as follows:

(a) A person may not distribute written information to advertise a provider of a driving safety course within 500 feet of a court having jurisdiction over an offense to which this subchapter applies. A violation of this section by a provider or a provider's agent, employee, or representative results in loss of the provider's status as a provider of a course approved under Chapter 1001, Education Code [the Texas Driver and Safety Education Act (Article 4413(29c), Vernon's Texas Civil Statutes)].

SECTION 202. Subsection (g), Section 545.412, Transportation Code, is amended to read as follows:

(g) A judge, acting under Article 45.0511, Code of Criminal Procedure, who elects to defer further proceedings and to place a defendant accused of a violation of this section on probation under that article, in lieu of requiring the defendant to complete a driving safety course approved by the Texas Department of Licensing and Regulation [Education Agency], shall require the defendant to attend and present proof that the defendant has successfully completed a specialized driving safety course approved by the Texas Department of Licensing and Regulation [Education Agency] under Chapter 1001, Education Code, [the Texas Driver and Traffic Safety Education Act (Article 4413(29c), Vernon's Texas Civil Statutes)] that includes four hours of instruction that encourages the use of child passenger safety seat systems and the wearing of seat belts and emphasizes:

(1) the effectiveness of child passenger safety seat systems and seat belts in reducing the harm to children being transported in motor vehicles; and

(2) the requirements of this section and the penalty for noncompliance.

SECTION 203. Subsection (i), Section 545.413, Transportation Code, is amended to read as follows:

(i) A judge, acting under Article 45.0511, Code of Criminal Procedure, who elects to defer further proceedings and to place a defendant accused of a violation of Subsection (b) on probation under that article, in lieu of requiring the defendant to complete a driving safety course approved by the Texas Department of Licensing and Regulation [Education Agency], shall require the defendant to attend and present proof that the defendant has successfully completed a specialized driving safety course approved by the Texas Department of Licensing and Regulation [Education Agency] under Chapter 1001, Education Code, [the Texas Driver and Traffic Safety Education Act (Article 4413(29c), Vernon's Texas Civil Statutes)] that includes four hours of instruction that encourages the use of child passenger safety seat systems and the wearing of seat belts and emphasizes:

(1) the effectiveness of child passenger safety seat systems and seat belts in reducing the harm to children being transported in motor vehicles; and

(2) the requirements of this section and the penalty for noncompliance.

SECTION 204. (a) The following provisions of the Education Code are repealed:

(1) Section 7.009;

(2) Subsections (b) and (c), Section 7.021;

(3) Subdivisions (1), (2), (3), (4), (5), (6), (7), (10), (11), (12), (13), (14), (15), (16), (17), (18), (19), (20), (21), (22), (23), (24), (25), (26), (27), (28), (29), (30), (31), (32), (34), (35), (36), (37), (38), (39), and (41), Subsection (b), Section 7.055;

(4) Subsection (c), Section 7.055;

(5) Subdivision (16), Subsection (c), Section 7.102;

(6) Subsection (c), Section 11.201;

(7) Section 11.254;

(8) Subsection (b), Section 12.1055;

(9) Subsection (b), Section 12.107;

(10) Subsection (b), Section 12.115;

(11) Section 13.052;

(12) Subsection (a), Section 21.007;

(13) Sections 21.032, 21.033, 21.034, 21.035, 21.036, 21.037, and 21.038;

(14) Subsection (a), Section 21.041;

(15) Sections 21.042 and 21.043;

(16) Subsections (c) and (d), Section 21.254;

(17) Section 21.4541;

(18) Subsection (a), Section 22.0831;

(19) Subsection (e), Section 25.001;

(20) Sections 29.095, 29.096, 29.097, 29.098, and 29.099;

(21) Subdivisions (1), (2), and (3), Section 29.251;

(22) Sections 29.253, 29.2531, 29.2535, and 29.254;

(23) Section 29.917;

(24) Section 34.015;

(25) Section 38.104;

(26) Subsection (g), Section 39.037;

(27) Section 39.0822;

(28) Subsection (b) and (c), Section 39.0823;

(29) Subsection (c), Section 39.203;

(30) Section 39.204;

(31) the heading to Subchapter M, Chapter 39;

(32) Sections 39.401, 39.402, 39.403, 39.404, 39.405, 39.406, 39.407, 39.408, 39.410, 39.411, 39.412, 39.414, 39.415, and 39.416;

(33) Subsections (q), (q-1), (q-2), (q-3), (q-4), and (r), Section 42.152;

(34) Subsection (e), Section 45.208;

(35) Subdivision (1), Section 1001.001;

(36) Section 1001.006;

(37) Section 1001.454;

(38) Sections 1001.460 and 1001.461; and

(39) Sections 1001.551 and 1001.552.

(b) Section 411.090, Government Code, is repealed.

(c) Section 521.167, Transportation Code, as added by Chapter 1413 (Senate Bill No. 1317), Acts of the 81st Legislature, Regular Session, 2009, is repealed.

SECTION 205. The changes in law made by this Act to Subchapter D, Chapter 12, Education Code, relating to enforcement actions against an open-enrollment charter school apply beginning June 1, 2014, based on school performance during preceding school years.

SECTION 206. The change in law made by this Act to Subsection (b), Section 1001.553, Education Code, applies only to the imposition of an administrative penalty for a violation that occurs on or after the effective date of this Act. The imposition of an administrative penalty for a violation that occurs before the effective date of this Act is governed by the law in effect on the date the violation occurred, and that law is continued in effect for that purpose.

SECTION 207. (a) The State Board for Educator Certification is abolished September 1, 2013. On that date, all powers, duties, obligations, rights, contracts, leases, records, personnel, property, and unspent and unobligated appropriations and other funds of the State Board for Educator Certification are transferred to the Texas Education Agency. Before that date, the Texas Education Agency, with the agreement of the State Board for Educator Certification, may transfer any records, personnel, or property of the State Board for Educator Certification to the Texas Education Agency in preparation for the transfer provided for in this Act.

(b) The abolishment of the State Board for Educator Certification does not affect the validity of a right, privilege, or obligation accrued, a contract or acquisition made, any liability incurred, a certificate issued, a penalty, forfeiture, or punishment assessed, a rule adopted, a proceeding, investigation, or remedy begun, a decision made, or other action taken by or in connection with the State Board for Educator Certification. A certificate issued by the State Board for Educator Certification under Subchapter B, Chapter 21, Education Code, before September 1, 2013, is considered a certificate issued by the Texas Education Agency.

(c) All rules, policies, procedures, and decisions of the State Board for Educator Certification are continued in effect as rules, policies, procedures, and decisions of the commissioner of education and the Texas Education Agency until superseded by a rule or other appropriate action of the Texas Education Agency.

(d) After the effective date of this Act, the commissioner of education may adopt a rule proposed by the State Board for Educator Certification before the effective date of this Act.

(e) Any action or proceeding before the State Board for Educator Certification is transferred without change in status to the commissioner of education and the Texas Education Agency, and the commissioner and the agency assume, without a change in status, the position of the State Board for Educator Certification in any action or proceeding to which the State Board for Educator Certification is a party.

SECTION 208. (a) On September 1, 2013:

(1) all functions and activities relating to adult education programs are transferred from the Texas Education Agency to the Texas Workforce Commission;

(2) all rules, policies, procedures, decisions, and forms of the Texas Education Agency, the commissioner of education, or the State Board of Education relating to the administration of adult education programs are continued in effect as rules, policies, procedures, decisions, and forms of the Texas Workforce Commission until superseded by a rule or other appropriate action by the Texas Workforce Commission;

(3) a reference in law or administrative rule to the Texas Education Agency, the commissioner of education, or the State Board of Education relating to the administration of adult education programs means the Texas Workforce Commission;

(4) a complaint, investigation, or other proceeding before the Texas Education Agency that is related to adult education programs is transferred without change in status to the Texas Workforce Commission, and the Texas Workforce Commission assumes, as appropriate and without a change in status, the position of the Texas Education Agency in an action or proceeding to which the Texas Education Agency is a party;

(5) all money, contracts, leases, property, and obligations of the Texas Education Agency related to the administration of adult education programs are transferred to the Texas Workforce Commission;

(6) all property in the custody of the Texas Education Agency related to the administration of adult education programs is transferred to the Texas Workforce Commission; and

(7) the unexpended and unobligated balance of any money appropriated by the legislature for the Texas Education Agency related to the administration of adult education programs is transferred to the Texas Workforce Commission.

(b) Before September 1, 2013, the Texas Education Agency may agree with the Texas Workforce Commission to transfer any property of the Texas Education Agency to the Texas Workforce Commission to implement the transfer required by this Act.

(c) The Texas Workforce Commission shall hold public hearings to develop rules to establish a new allocation formula for adult education provider grants under Chapter 315, Labor Code, as added by this Act.

(d) The Texas Workforce Commission shall adopt and implement the new allocation formula for adult education provider grants beginning with the 2014-2015 school year.

SECTION 209. (a) On September 1, 2013:

(1) all functions and activities relating to Chapter 1001, Education Code, performed by the Texas Education Agency immediately before that date are transferred to the Texas Department of Licensing and Regulation;

(2) all rules, policies, procedures, decisions, and forms adopted by the commissioner of education that relate to Chapter 1001, Education Code, are continued in effect as rules, policies, procedures, decisions, and forms of the Texas Commission of Licensing and Regulation or the Texas Department of Licensing and Regulation, as applicable, and remain in effect until amended or replaced by that commission or department;

(3) a reference to the Texas Education Agency in a law or administrative rule that relates to Chapter 1001, Education Code, means the Texas Commission of Licensing and Regulation or the Texas Department of Licensing and Regulation, as applicable;

(4) a complaint, investigation, or other proceeding before the Texas Education Agency that is related to Chapter 1001, Education Code, is transferred without change in status to the Texas Department of Licensing and Regulation, and the Texas Department of Licensing and Regulation assumes, as appropriate and without a change in status, the position of the Texas Education Agency in an action or proceeding to which the Texas Education Agency is a party;

(5) all money, contracts, leases, property, and obligations of the Texas Education Agency related to Chapter 1001, Education Code, are transferred to the Texas Department of Licensing and Regulation;

(6) all property in the custody of the Texas Education Agency related to Chapter 1001, Education Code, is transferred to the Texas Department of Licensing and Regulation; and

(7) the unexpended and unobligated balance of any money appropriated by the legislature for the Texas Education Agency related to Chapter 1001, Education Code, is transferred to the Texas Department of Licensing and Regulation.

(b) Before September 1, 2013, the Texas Education Agency may agree with the Texas Department of Licensing and Regulation to transfer any property of the Texas Education Agency to the Texas Department of Licensing and Regulation to implement the transfer required by this Act.

SECTION 210. The changes in law made by this Act to Chapter 1001, Education Code, apply only to a fee charged on or after September 1, 2013. A fee charged before September 1, 2013, is governed by the law in effect immediately before that date, and the former law is continued in effect for that purpose.

SECTION 211. To the extent of any conflict, this Act prevails over another Act of the 83rd Legislature, Regular Session, 2013, relating to nonsubstantive additions to and corrections in enacted codes.

SECTION 212. This Act takes effect September 1, 2013.

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