84R9201 GCB-F

By: Dutton H.B. No. 1536

A BILL TO BE ENTITLED

AN ACT

relating to state interventions and sanctions against public school campuses with unacceptable performance and the establishment of the Texas Opportunity School District.

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

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

SUBCHAPTER I. TEXAS OPPORTUNITY SCHOOL DISTRICT

Sec. 11.401. TEXAS OPPORTUNITY SCHOOL DISTRICT ESTABLISHED. (a) The Texas Opportunity School District is established as a school district under this code and an intermediate educational unit under 34 C.F.R. Section 222.50 for the purpose of educating students attending a campus placed in the jurisdiction of the opportunity school district under Chapter 39.

(b) In this subchapter, "prior system" means the independent school district from which a campus is transferred to the jurisdiction of the opportunity school district.

(c) The commissioner shall select the superintendent of the opportunity school district. The superintendent shall report to the commissioner under a written contract for services.

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

(e) Subject to the requirements of this subchapter and Section 39.1071, the opportunity school district may provide for the supervision, management, and operation of each campus placed in the opportunity school district's jurisdiction and receive, control, and expend the local, state, and federal funding attributable to that campus, with all the same power and authority as the prior system and with any other power or authority otherwise granted by law.

(f) The opportunity school district is entitled to the same level of services provided to other school districts by regional education service centers, and to participate in any state program available to school districts, including a purchasing program.

(g) The opportunity school district may employ such staff as the superintendent deems necessary.

Sec. 11.402. APPLICABILITY OF LAWS, RULES, AND ORDINANCES TO OPPORTUNITY SCHOOL DISTRICT. (a) Except as expressly provided by law, the opportunity school district is subject to federal and state laws and rules and municipal zoning ordinances governing school districts.

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

(c) The performance of a campus under the jurisdiction of the opportunity school district may not be used for purposes of determining the prior system's performance rating under Section 39.054.

(d) Any requirement of Chapter 551 or 552, Government Code, or other law concerning open meetings requirements or public information requirements applies to the opportunity school district and the superintendent and students of the opportunity school district to the same extent those requirements apply to any other school district and the board of trustees and students of the other school district.

(e) The opportunity school district is not a special-purpose school district described by Subchapter H.

Sec. 11.403. IMMUNITY. The opportunity school district is immune from liability to the same extent as any other school district, and the opportunity school district's employees and volunteers are immune from liability to the same extent as other school district employees and volunteers.

Sec. 11.404. MEMBERSHIP IN TEACHER RETIREMENT SYSTEM OF TEXAS BY OPPORTUNITY SCHOOL DISTRICT EMPLOYEES. (a) An employee of the opportunity school district who qualifies for membership in the Teacher Retirement System of Texas is covered under the system to the same extent a qualified employee of any other school district is covered.

(b) For each employee of the opportunity school district covered under the system, the opportunity school district is responsible for making any contribution that otherwise would be the legal responsibility of the prior system, and the state is responsible for making contributions to the same extent it would be legally responsible if the employee were that of another school district.

Sec. 11.405. FUNDING OF STUDENTS ENROLLED IN OPPORTUNITY SCHOOL DISTRICT. (a) Each school year the opportunity school district is entitled to receive for the education of each student transferred to the opportunity school district funding under Chapter 42 in an amount equal to the amount of state and local funding per student in weighted average daily attendance, including enrichment funding under Section 42.302, to which the prior system would be entitled under Chapter 42 for that school year.

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

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

(d) For purposes of calculating for the prior system obligations under Chapter 41 and entitlements under Chapter 42, students transferred to the opportunity school district who would otherwise have attended the prior system are not included in calculating the average daily attendance of the prior system.

(e) For purposes of calculating for the prior system allotments under Chapter 46, students transferred to the opportunity school district who would otherwise have attended the prior system are included in calculating the average daily attendance of the prior system.

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

Sec. 11.406. FACILITIES SUPPORT FOR STUDENTS ENROLLED IN OPPORTUNITY SCHOOL DISTRICT. (a) The opportunity school district is entitled to use any school building and any other facility or property otherwise part of a campus placed in the opportunity school district that was recognized as part of the facilities or property of the campus before the campus was placed in the opportunity school district. The opportunity school district is also entitled to access to any additional facilities that are typically available to the campus, its students, and faculty and staff before the campus was placed in the opportunity school district. The opportunity school district's use of a school building, facility, or property may not be restricted, except that the opportunity school district is responsible for and obligated to provide for routine maintenance and repair necessary to ensure that the school building, facility, or property is maintained in as good an order as when the right of use was acquired by the opportunity school district.

(b) If a dispute arises between the opportunity school district and the prior system regarding the maintenance and repair required under this section, the commissioner or the commissioner's designee shall determine each entity's responsibilities concerning the maintenance and repair.

Sec. 11.407. OTHER SUPPORT FOR STUDENTS ENROLLED IN OPPORTUNITY SCHOOL DISTRICT. (a) The opportunity school district may require the prior system to provide school support or student support services for a campus transferred from the prior system's jurisdiction, including:

(1) school food service;

(2) transportation of:

(A) students who attend the campus placed in the opportunity school district; and

(B) students who reside in the assigned attendance zone of the campus placed in the opportunity school district but who attend a different campus in the prior system; and

(3) student assessment services to determine special education eligibility that are compliant with all applicable laws and regulations.

(b) The opportunity school district shall reimburse the prior system in an amount equal to the actual cost of the services described in Subsection (a) to the prior system. If a dispute arises between the opportunity school district and the prior system regarding the actual cost of services, the commissioner or the commissioner's designee shall determine the cost to be reimbursed.

Sec. 11.408. EXPENDITURES FOR SUPPORT OF STUDENTS ENROLLED IN OPPORTUNITY SCHOOL DISTRICT. Funds received by the opportunity school district under Section 11.405 must be used for the operation and administration of campuses placed in the opportunity school district.

Sec. 11.409. OPPORTUNITY DISTRICT CHARTER. (a) The opportunity school district may grant a district charter under Section 12.0522 to a campus that has been placed in the opportunity school district.

(b) The grant of a district charter by the opportunity school district is not subject to the limitation imposed by Section 12.0522(b).

(c) A campus granted a district charter under this section is eligible for funding under Section 11.405. Any administrative costs related to authorizing a district charter under this section may be paid from funds appropriated to the opportunity school district, as approved by the superintendent of the opportunity school district.

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

(f) Notwithstanding any other provision of this subchapter, if the commissioner determines that a campus for which an intervention is ordered under Subsection (a) is not fully implementing the campus intervention team's recommendations or targeted improvement plan or updated plan, the commissioner may order the reconstitution of the campus as provided by Section 39.107 or the placement of the campus in the opportunity school district established by Subchapter I, Chapter 11.

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

Sec. 39.107. RECONSTITUTION, REPURPOSING, ALTERNATIVE MANAGEMENT, PLACEMENT IN OPPORTUNITY SCHOOL DISTRICT, AND CLOSURE.

SECTION 4. Section 39.107, Education Code, is amended by amending Subsections (a), (a-1), (c), and (e) and adding Subsection (a-2) to read as follows:

(a) After a campus has been identified as unacceptable for two consecutive school years, the commissioner shall determine whether the district or campus has instituted meaningful change for the campus, including reconstituting the staff or leadership at the campus. If the commissioner determines that the district or campus has instituted meaningful change for the campus, the commissioner may reevaluate the campus under this subsection following the conclusion of the subsequent school year. If the commissioner determines the district or campus has not instituted meaningful change for the campus, the superintendent of the district may operate the campus with the same powers and authority granted to the superintendent of the opportunity school district established under Subchapter I, Chapter 11, to operate a campus placed in the jurisdiction of the opportunity school district unless the commissioner orders one or more of the following:

(1) [order the] reconstitution of the campus under this section;

(2) repurposing of the campus under this section;

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

(4) placement of the campus in the opportunity school district, as provided by Section 39.1071.

(a-1) In making a determination regarding action to be taken under Subsection (a), the commissioner shall consider recommendations from parents of students enrolled at the campus and members of the community who reside in the attendance zone of the campus.

(a-2) In reconstituting a campus, a campus intervention team shall assist the campus in:

(1) developing an updated targeted improvement plan;

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

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

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

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

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

(1) repurposing of the campus under this section;

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

(3) closure of the campus; or

(4) placement of the campus in the opportunity school district as provided by Section 39.1071.

SECTION 5. Subchapter E, Chapter 39, Education Code, is amended by adding Sections 39.1071 and 39.1072 to read as follows:

Sec. 39.1071. PLACEMENT OF CAMPUS IN OPPORTUNITY SCHOOL DISTRICT. (a) In this section, "prior system" has the meaning assigned by Section 11.401(b).

(b) As provided by Section 39.107, the commissioner may order the placement of a campus of an independent school district in the opportunity school district established under Subchapter I, Chapter 11, except that the commissioner may not place a campus in the opportunity school district if:

(1) the commissioner is presented with a valid petition for alternative action under Section 39.107(e-2); or

(2) the superintendent of the opportunity school district advises the commissioner that placing the campus in the opportunity school district is not the best action to be taken at the campus.

(c) If the commissioner orders placement of a campus in the opportunity school district, the students assigned to attend the campus or the students who would have been eligible to attend the campus if the campus had remained in the prior system may choose to attend the campus under the jurisdiction of the opportunity school district or may exercise an option, made available by the prior system, to attend another campus remaining under the jurisdiction of the prior system.

(d) Only students who were eligible for enrollment at a campus under the prior system or who would have been eligible to enroll at the campus if the campus had remained in the prior system may attend that campus after the campus is placed in the opportunity school district.

(e) A campus placed in the opportunity school district is not required to accept enrollment of a student if enrolling the student would result in exceeding the capacity of campus facilities. The opportunity school district shall enroll students in the following order of priority:

(1) those students who would be eligible to attend the campus if the campus had remained in the prior system;

(2) if openings for enrollment remain after satisfying Subdivision (1), those students who would be eligible to attend a different campus in the prior system from which the campus was transferred; and

(3) if openings for enrollment remain after satisfying Subdivisions (1) and (2), those students who would be eligible to attend any other campus or school district by lottery.

(f) A campus placed in the opportunity school district may adopt a policy that provides for the exclusion or removal of a student enrolled at the campus:

(1) who does not reside in the assigned attendance zone of the campus; and

(2) who engages in or has been subjected to disciplinary action for conduct described by Section 37.006 or 37.007.

(g) Effective on a date determined by the commissioner after consulting with the superintendent of the opportunity school district, a campus that the commissioner has decided to place in the opportunity school district shall be transferred from the jurisdiction of the school district to the jurisdiction of the opportunity school district. On that date, the school district from which the campus was transferred becomes the prior system.

(h) The campus shall be:

(1) reorganized and reformed, as determined necessary by the superintendent of the opportunity school district; and

(2) operated by the opportunity school district.

(i) The superintendent of the opportunity school district or the superintendent's designee has sole discretion to decide which educators may be retained at a campus placed in the opportunity school district. If the opportunity school district does not retain an educator, that educator may be assigned to another position by the prior system.

(j) For the purposes of any benefit or right requiring continuous service or based on years of service, the prior system shall consider the period during which an employee works at the opportunity school district to be service time with the prior system if the employee returns to the prior system's employment.

(k) The benefits and privileges of any person employed at a campus by the opportunity school district who was not employed by the prior system at the time the campus was placed in the opportunity school district shall be determined in compliance with applicable law by the opportunity school district at the time of the employment.

(l) The opportunity school district shall retain jurisdiction over any campus placed in the opportunity school district until the commissioner returns the campus to the prior system in accordance with Section 39.1072.

(m) On request, the commissioner and the superintendent of the opportunity school district shall provide information concerning the new operations and performance of a campus to the prior system.

(n) A campus operated by the opportunity school district may change its name only on agreement of the prior system and the opportunity school district.

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

Sec. 39.1072. RETURN OF CAMPUS TO PRIOR SYSTEM. (a) In this section, "prior system" has the meaning assigned by Section 11.401(b).

(b) The superintendent of the opportunity school district established under Subchapter I, Chapter 11, or the superintendent's designee may develop a transition plan for returning a campus placed in the opportunity school district to the prior system at any time after the campus has achieved an acceptable or higher performance rating. The superintendent or the superintendent's designee shall develop a transition plan for returning a campus placed in the opportunity school district to the prior system if:

(1) the campus has been identified as acceptable or higher for three consecutive school years; or

(2) the commissioner orders the superintendent to develop a transition plan.

(c) The superintendent or the superintendent's designee shall develop a transition plan for returning a campus placed in the opportunity school district to the prior system during the eighth consecutive school year that the campus has operated under the jurisdiction of the opportunity school district.

(d) The superintendent or the superintendent's designee must consider the input of parents and other affected stakeholders in developing a transition plan under Subsection (b) or (c). The transition plan must include:

(1) details for the operation of the campus by the prior system, including provisions for the continuation of the programs that have provided the basis for improved academic performance by the students, including any charter granted under Section 11.409;

(2) provisions for the employment status of all persons employed by the opportunity school district who were not employed by the prior system at the time the campus was placed in the opportunity school district; and

(3) provisions for the means and timetable for the campus's transition and return to the prior system.

(e) The commissioner may order the return of a campus to the prior system in accordance with the transition plan developed under Subsection (b) on the recommendation of the opportunity school district superintendent.

(f) The commissioner shall order the return of a campus to the prior system not later than the campus's eighth consecutive school year under the jurisdiction of the opportunity school district. The commissioner may order the return of the campus to the prior system under this subsection in accordance with the transition plan developed under Subsection (c) or may order the return of the campus in accordance with an improvement plan submitted by the board of trustees of the prior system.

(g) On request, the commissioner and the superintendent of the opportunity school district shall provide information concerning the operations and performance of a campus to the prior system.

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

SECTION 6. Section 39.108, Education Code, is amended to read as follows:

Sec. 39.108. ANNUAL REVIEW. (a) The commissioner shall review annually the performance of a district or campus subject to this subchapter to determine the appropriate actions to be implemented under this subchapter. The commissioner must review at least annually the performance of a district for which the accreditation status or rating has been lowered due to insufficient student performance and may not raise the accreditation status or rating until the district has demonstrated improved student performance. If the review reveals a lack of improvement, the commissioner shall increase the level of state intervention and sanction unless the commissioner finds good cause for maintaining the current status.

(b) The review required by Subsection (a) shall form the basis of the reporting required by Section 39.332(b)(25).

SECTION 7. Section 39.332(b), Education Code, is amended by adding Subdivision (25) to read as follows:

(25) The report must contain a listing and description of the status of each campus under the jurisdiction of the opportunity school district and a summary of the reforms implemented and progress of the campus.

SECTION 8. Sections 39.107(d) and (e-1), Education Code, are repealed.

SECTION 9. This Act applies beginning with the 2015-2016 school year.

SECTION 10. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2015.