84R24796 MK-F

By: Deshotel, Villalba, Huberty, et al. H.B. No. 1798

Substitute the following for H.B. No. 1798:

By: Aycock C.S.H.B. No. 1798

A BILL TO BE ENTITLED

AN ACT

relating to local control school districts.

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

SECTION 1. The heading to Chapter 12, Education Code, is amended to read as follows:

CHAPTER 12. CHARTERS AND OTHER ALTERNATIVES

SECTION 2. Section 12.001(b), Education Code, is amended to read as follows:

(b) This chapter shall be applied in a manner that ensures the fiscal and academic accountability of persons operating [holding charters issued] under this chapter. This chapter may not be applied in a manner that unduly regulates the instructional methods or pedagogical innovations of [charter] schools operating under this chapter.

SECTION 3. Section 12.0011, Education Code, is amended to read as follows:

Sec. 12.0011. ALTERNATIVE METHOD OF OPERATION. As an alternative to operating in the manner generally provided by this title, an independent school district, a school campus, or an educational program may choose to operate [under a charter] in accordance with this chapter.

SECTION 4. Section 12.002, Education Code, is amended to read as follows:

Sec. 12.002. CLASSES OF ALTERNATIVES [CHARTER]. The classes of alternatives [charter] under this chapter are:

(1) a local control [home-rule] school district [charter] as provided by Subchapter B;

(2) a campus or campus program charter as provided by Subchapter C; or

(3) an open-enrollment charter as provided by Subchapter D.

SECTION 5. Subchapter B, Chapter 12, Education Code, is amended to read as follows:

SUBCHAPTER B. LOCAL CONTROL [HOME-RULE] SCHOOL DISTRICT [CHARTER]

Sec. 12.011. AUTHORIZATION AND STATUS. (a) In accordance with this subchapter, a school district may adopt a local control plan [home-rule school district charter] under which the district will operate.

(b) The adoption of a local control plan [home-rule school district charter] by a school district does not affect:

(1) the district's boundaries; or

(2) taxes or bonds of the district authorized before the effective date of the plan [charter].

Sec. 12.012. APPLICABILITY OF LAWS AND RULES TO LOCAL CONTROL [HOME-RULE] SCHOOL DISTRICT. (a) A local control [home-rule] school district is subject to federal and state laws and rules governing school districts, except that a local control [home-rule] school district is subject to:

(1) this code only to the extent that the applicability to a local control [home-rule] school district of a provision of this code is specifically provided;

(2) a rule adopted under this code by the State Board of Education or the commissioner only if the code provision authorizing the rule specifically applies to a local control [home-rule] school district; and

(3) all requirements of federal law and applicable court orders relating to eligibility for and the provision of special education and bilingual programs.

(b) An employee of a local control [home-rule] school district who qualifies for membership in the Teacher Retirement System of Texas shall be covered under the system in the same manner and to the same extent as a qualified employee employed by an independent school district is covered.

(c) This section does not permit a local control [home-rule] school district to discriminate against a student who has been diagnosed as having a learning disability, including dyslexia or attention deficit/hyperactivity disorder. Discrimination prohibited by this subsection includes denial of placement in a gifted and talented program if the student would otherwise be qualified for the program but for the student's learning disability. This section does not permit a local control [home-rule] school district to, on the basis of race, socioeconomic status, learning disability, or family support status, place a student in a program other than the highest-level program necessary to ensure the student's success.

Sec. 12.0121. IMMUNITY FROM LIABILITY. In matters related to the operation of a local control school district, a local control school district is immune from liability to the same extent as an independent school district, and its employees and volunteers are immune from liability to the same extent as independent school district employees and volunteers. A member of the governing body of a local control school district is immune from liability to the same extent as an independent school district trustee.

Sec. 12.013. APPLICABILITY OF TITLE. (a) A local control [home-rule] school district has the powers and entitlements granted to school districts and school district boards of trustees under this title, including taxing authority.

(b) A local control [home-rule] school district is subject to:

(1) a provision of this title establishing a criminal offense;

(2) a provision of this title relating to limitations on liability; and

(3) a prohibition, restriction, or requirement, as applicable, imposed by this title or a rule adopted under this title, relating to:

(A) the Public Education Information Management System (PEIMS) to the extent necessary to monitor compliance with this subchapter as determined by the commissioner;

(B) educator certification under Chapter 21, confidentiality of performance evaluations under Section 21.355, and educator rights under Sections 21.407, 21.408, and 22.001;

(C) criminal history records under Subchapter C, Chapter 22;

(D) student admissions under Section 25.001;

(E) school attendance under Sections 25.085, 25.086, and 25.087;

(F) inter-district or inter-county transfers of students under Subchapter B, Chapter 25, and transfers of students under Sections 25.0341 and 25.0342;

(G) the required curriculum under Section 28.002 [elementary class size limits under Section 25.112, in the case of any campus in the district that fails to satisfy any standard under Section 39.054(e)];

(H) high school graduation under Section 28.025;

(I) special education programs under Subchapter A, Chapter 29;

(J) bilingual education under Subchapter B, Chapter 29;

(K) prekindergarten programs under Subchapter E, Chapter 29;

(L) safety provisions relating to the transportation of students under Sections 34.002, 34.003, 34.004, and 34.008;

(M) computation and distribution of state aid under Chapters 31, 42, [and] 43, and 46;

(N) extracurricular activities under Section 33.081;

(O) restrictions under Section 37.0021 on the use with students of confinement, restraint, seclusion, and time-out;

(P) health and safety under Chapter 38;

(Q) [(P)] public school accountability under Subchapters B, C, D, E, F, and J, Chapter 39;

(R) [(Q)] equalized wealth under Chapter 41;

(S) [(R)] a bond or other obligation or tax rate under Chapters 42, 43, and 45; and

(T) [(S)] purchasing under Chapter 44.

Sec. 12.0131. APPLICABILITY OF ELECTION CODE. The Election Code, including Title 15, Election Code, applies to:

(1) a petition submitted to the board of trustees of a school district under Section 12.014; and

(2) a local control plan election held under Section 12.019.

Sec. 12.014. APPOINTMENT OF LOCAL CONTROL [CHARTER] COMMISSION. (a) The board of trustees of a school district shall appoint a local control [charter] commission to frame a local control plan for the [home-rule] school district [charter] if:

(1) the board receives a petition requesting the appointment of a local control [charter] commission to frame a local control plan for the [home-rule] school district [charter] signed by at least five percent of the registered voters of the district; or

(2) at least two-thirds of the total membership of the board adopt a resolution ordering that a local control [charter] commission be appointed.

(b) A petition submitted under Subsection (a)(1) may designate one or more persons as lead petitioner.

Sec. 12.0141. REQUIRED STATEMENT FOR PETITION. For a petition under Section 12.014(a)(1) to be valid, the petition must include the following, or a substantially similar, statement on each page of the petition that precedes the space reserved for signatures: "This petition is to request that a local control commission be appointed for the purpose of proposing a local control plan under which (name of school district) will operate if the plan is approved at an election of voters of the district. The local control commission will be composed of 15 residents of the district."

Sec. 12.015. LOCAL CONTROL [CHARTER] COMMISSION. (a) Not later than the 30th day after the date of [receipt of a petition or] adoption of a resolution under Section 12.014(a)(2) [12.014], the board of trustees of the school district shall appoint 15 residents of the district to serve on the commission to frame a local control plan [charter] for the district, as provided by Subsection (b-1).

(a-1) Not later than the 30th day after the date the board of trustees of the school district receives a petition under Section 12.014(a)(1), the board shall appoint the following 15 residents of the district to serve on the commission to frame a local control plan for the district:

(1) seven residents who are selected by the board; and

(2) eight residents who are selected by the lead petitioner, provided that the petition designates one or more persons as lead petitioner.

(b) To the extent practicable, the [The] membership of the local control [charter] commission must reflect the racial and [,] ethnic[, socioeconomic, and geographic] diversity of the population of the district of voting age.

(b-1) If the local control commission is appointed in accordance with Subsection (a), the board shall appoint the following residents of the district to serve on the commission to frame a local control plan for the district:

(1) at least eight [A majority of the members appointed to the commission must be] parents of school-age children attending public school;

(2) at least two administrators employed by the district; and

(3) two [. At least 25 percent of the commission must be] classroom teachers employed by the district [selected by the representatives of the professional staff pursuant to Section 11.251(e)].

(b-2) If the local control commission is appointed under Subsection (a-1), and the petition designates one or more persons as lead petitioner, the board and the lead petitioner shall each select for the commission:

(1) at least four parents of school-age children attending public school;

(2) at least one administrator employed by the district; and

(3) one classroom teacher employed by the district.

(b-3) The board may not refuse to appoint a member of a commission who is selected by the lead petitioner if the member is otherwise eligible to serve on the commission.

(b-4) If the local control commission is appointed under Subsection (a-1), and the petition does not designate one or more persons as lead petitioner, the board shall appoint the members of the local control commission in accordance with Subsection (b-1).

(c) The local control [charter] commission must complete a proposed local control plan [charter] not later than the first anniversary of the date of its appointment. After that date, the commission expires and the appointment under Section 12.014 is void.

(d) A local control [charter] commission appointed under this section is considered a governmental body for purposes of Chapters 551 and 552, Government Code.

(e) A local control commission shall hold at least three public hearings to allow interested persons to present comments related to the proposed local control plan developed by the commission. The commission shall provide notice of each public hearing to the public.

Sec. 12.016. CONTENT. (a) Each local control plan [home-rule school district charter] must:

(1) describe the educational program to be offered;

(2) provide that continuation of the local control [home-rule] school district [charter] is contingent on:

(A) acceptable student performance on assessment instruments adopted under Subchapter B, Chapter 39; and

(B) compliance with other applicable accountability provisions under Chapter 39;

(3) specify any basis, in addition to a basis specified by this subchapter, on which the local control school district [charter] may be placed on probation or the local control plan may be revoked;

(4) describe the governing structure of the district and campuses;

(5) specify any procedure or requirement, in addition to those under Chapter 38, that the district will follow to ensure the health and safety of students and employees;

(6) describe the process by which the district will adopt an annual budget, including a description of the use of program-weight funds;

(7) describe the manner in which an annual audit of financial and programmatic operations of the district is to be conducted, including the manner in which the district will provide information necessary for the district to participate in the Public Education Information Management System (PEIMS) to the extent required by this subchapter; and

(8) include any other provision the charter commission considers necessary.

(b) A local control plan may include provisions that impose requirements on the district that are similar or identical to federal or state laws that a local control school district is not otherwise subject to under Section 12.012. A requirement imposed under this subsection is not a school law of this state for purposes of Section 7.057 and does not create an entitlement to a hearing under Subchapter F or G, Chapter 21.

[Sec. 12.017. DETERMINATION OF COMPLIANCE WITH VOTING RIGHTS ACT. (a) The charter commission shall submit the proposed charter to the secretary of state. The secretary of state shall determine whether a proposed charter contains a change in the governance of the school district.

[(b) If the secretary of state determines that a proposed charter contains a change in the governance of the school district, the secretary of state shall, not later than the second working day after the date the secretary of state makes that determination, notify the board of trustees of the school district. The board shall submit the proposed change to the United States Department of Justice or the United States District Court for the District of Columbia for preclearance under the Voting Rights Act (42 U.S.C. Section 1973c et seq.).]

Sec. 12.018. LEGAL REVIEW. The local control [charter] commission shall submit the proposed local control plan [charter] to the commissioner. As soon as practicable, but not later than the 30th day after the date the commissioner receives the proposed local control plan [charter], the commissioner shall review the proposed local control plan [charter] to ensure that the proposed local control plan [charter] complies with any applicable laws and shall recommend to the local control [charter] commission any modifications necessary. If the commissioner does not act within the prescribed time, the proposed local control plan [charter] is approved.

Sec. 12.019. LOCAL CONTROL PLAN [CHARTER] ELECTION. (a) As soon as practicable after approval of a proposed local control plan [home-rule school district charter] under Section 12.018, the board of trustees of the district shall order an election on the proposed local control plan [charter].

(b) The proposed local control plan [charter] shall be submitted to the voters of the district at an election to be held on the first uniform election date in November of an even-numbered year that occurs at least 78 [45] days after the date on which the board of trustees orders the election.

(c) At least three copies of the proposed local control plan [charter] must be available in the office of each school campus in the district and at the district's central administrative office between the date of the election order and election day. Notice of the election must include a statement of where and how copies may be obtained or viewed. A summary of the content of the proposed local control plan [charter] shall be attached to each copy. The summary also shall be made available to school district employees, parents, community members, and members of the media.

(d) The ballot shall be printed to permit voting for or against the proposition "Whether the (name of school district) School District shall be governed under the local control plan [home-rule school district charter], which is proposed by a local control [charter] commission appointed by the board of trustees and under which only certain laws and rules apply to the district."

Sec. 12.020. LOCAL CONTROL PLAN [CHARTER] AMENDMENT. (a) At any time after the fourth year that a school district has operated under a local control plan, the [The] governing body of the local control [a home-rule] school district on its own motion may submit a proposed [charter] amendment to the local control plan that complies with this subchapter to the commissioner for legal review.

(b) A petition to amend a local control plan may be submitted to the governing body of the district at any time after the fourth year that the district has operated under the local control plan. On receipt of a petition, the [The] governing body shall submit a proposed [charter] amendment that complies with this subchapter to the commissioner for legal review if the [a] petition [submitted to the governing body proposing the charter amendment] is signed by at least five percent of the registered voters of the district. The petition must designate one or more persons as lead petitioner.

(c) As soon as practicable, but not later than the 30th day after the date on which the requirements [for an election] under Subsection (a) or (b) are satisfied, the commissioner shall review the proposed amendment to ensure that the proposed amendment complies with any applicable laws and shall recommend any modifications necessary. If the commissioner does not act within the prescribed time, the proposed [charter] amendment is approved.

(d) As soon as practicable after commissioner review under Subsection (c), the governing body of the district shall order an election on the proposed amendment.

(e) An election under this section shall be held on the first uniform election date in November of an even-numbered year that occurs at least 78 [45] days after the date the election is ordered.

(f) Notice of the election must include a substantial copy of the proposed [charter] amendment to the local control plan.

(g) An [A charter] amendment to a local control plan may not contain more than one subject.

(h) The ballot shall be prepared so that a voter may approve or disapprove any one or more [charter] amendments to a local control plan without having to approve or disapprove all of the [charter] amendments to a local control plan.

(i) The governing body may not order an election on a proposed [charter] amendment to a local control plan earlier than the first anniversary of the date of any previous election to amend the plan [charter].

[(j) Section 12.017 applies to a proposed charter amendment, except that the governing body shall submit the proposed charter amendment to the secretary of state.]

Sec. 12.021. ADOPTION OF LOCAL CONTROL PLAN [CHARTER] OR [CHARTER] AMENDMENT. (a) A [Subject to Section 12.022, a] proposed local control plan [home-rule school district charter] or a proposed [charter] amendment to a local control plan is adopted if approved by a majority of the qualified voters of the district voting at an election held for that purpose.

(b) A local control plan [charter] or [charter] amendment to a local control plan shall specify an effective date, which may not be earlier than the end of the school year during which the election to adopt a local control plan or amendment to a local control plan occurs. A local control plan or amendment to a local control plan [and] takes effect according to its terms when the board of trustees or governing body of the school district enters an order declaring that the plan [charter] or [charter] amendment is adopted. The board of trustees or governing body shall enter an order not later than the 10th day after the date the canvass of the election returns is completed.

(c) As soon as practicable after a school district adopts a local control plan or amendment to a local control plan [home-rule school district charter or charter amendment], the board of trustees or governing body shall notify the commissioner of the outcome of the election.

Sec. 12.022. [MINIMUM VOTER TURNOUT REQUIRED. (a) An election on the adoption of a proposed home-rule school district charter has no effect unless at least 25 percent of the registered voters of the district vote in the election in which the adoption of the charter is on the ballot.

[(b) An election on the adoption of a proposed amendment to a home-rule school district charter has no effect unless at least 20 percent of the registered voters of the district vote in the election in which the adoption of the amendment is on the ballot.

[(c) If the required number of voters prescribed by Subsection (a) or (b) do not vote in the election, the board of trustees shall order an election on the issue to be held on the first uniform election date:

[(1) that occurs at least 45 days after the date the election is ordered; and

[(2) on which one or more elections are to be held, the combination of which covers all of the territory of the school district.

[(d) If the required number of voters prescribed by Subsection (a) or (b) do not vote at an election ordered as required by Subsection (c), the board of trustees may continue to order elections on the issue in accordance with Subsection (c) until the required minimum voter turnout is achieved.

[Sec. 12.023. CERTIFICATION OF CHARTER OR CHARTER AMENDMENT. (a) As soon as practicable after a school district adopts a home-rule school district charter or charter amendment, the president of the board of trustees shall certify to the secretary of state a copy of the charter or amendment showing the approval by the voters of the district.

[(b) The secretary of state shall file and record the certification in the secretary of state's office.

[Sec. 12.024. EFFECT OF RECORDING CHARTER OR CHARTER AMENDMENT. A recorded charter or charter amendment is a public act. A court shall take judicial notice of a recorded charter or charter amendment and proof is not required of its provisions.

[Sec. 12.025.] GOVERNANCE. (a) A local control [home-rule] school district may adopt and operate under any governing structure.

(b) In conformity with the local control plan, the governing body of the [The] district may:

(1) create offices;

(2) determine the time and method for selecting officers; [and]

(3) prescribe the qualifications and duties of officers; and

(4) prescribe procedures to recall or remove members or officers.

(c) Subject to Subsection (b)(4), the [The] term of any member of the governing body [officer] of the district is determined under Section 11.059.

Sec. 12.023 [12.026]. CHANGE IN GOVERNING BODY. If the adoption, amendment, or revocation of a local control plan [home-rule school district charter] changes the structure of the governing body of the school district, the members of the governing body serving on the date the adoption, amendment, or revocation takes effect continue in office until their successors are chosen and have qualified for office.

Sec. 12.024 [12.027]. BASIS FOR PLACEMENT ON PROBATION OR REVOCATION OF LOCAL CONTROL PLAN [CHARTER]. (a) The commissioner [State Board of Education] may place a local control school district on probation or revoke the local control plan [a home-rule school district charter] of a school district if the commissioner [board] determines that the district:

(1) committed a material violation of the local control plan [charter];

(2) failed to satisfy generally accepted accounting standards of fiscal management; or

(3) failed to comply with this subchapter or other applicable federal or state law or rule.

(b) The action the commissioner [board] takes under Subsection (a) shall be based on the best interest of district students, the severity of the violation, and any previous violation the district has committed.

(c) A district whose local control plan [home-rule school district charter] is revoked or rescinded under this subchapter shall operate under the other provisions of Title 1 and this title that apply to school districts.

Sec. 12.025 [12.028]. PROCEDURE FOR PLACEMENT ON PROBATION OR REVOCATION. (a) The commissioner [State Board of Education] by rule shall adopt a procedure to be used for placing a local control school district on probation or revoking a local control plan [home-rule school district charter].

(b) The procedure adopted under Subsection (a) must provide an opportunity for a hearing to the district and to parents of district students. A hearing under this subsection must be held in the district.

Sec. 12.026 [12.029]. STATUS OF DISTRICT IN CASE OF ANNEXATION OR CONSOLIDATION. (a) If a school district is annexed to another district under Chapter 13, and only one of the districts has a local control [home-rule] school district status, the status[, as a home-rule or other type of school district,] of the receiving district is the status for both districts following annexation.

(b) Except as provided by Subchapter H, Chapter 41, if two or more school districts having different status, one of which is local control [home-rule] school district status, consolidate into a single district, the petition under Section 13.003 initiating the consolidation must state the status for the consolidated district. The ballot shall be printed to permit voting for or against the proposition: "Consolidation of (names of school districts) into a single school district governed as (status of school district specified in the petition)."

Sec. 12.027 [12.030]. RESCISSION OF LOCAL CONTROL PLAN [CHARTER]. (a) A local control plan [home-rule school district charter] may be rescinded as provided by this section.

(b) The governing body of the district shall order an election on the question of rescinding a local control plan [home-rule school district charter] if:

(1) the governing body receives a petition requesting a rescission election signed by at least five percent of the registered voters of the district; or

(2) at least two-thirds of the total membership of the governing body adopt a resolution ordering that a rescission election be held.

(c) As soon as practicable after the date of receipt or adoption of a resolution under Subsection (b), the governing body shall order an election.

(d) The proposition to rescind the local control plan [home-rule school district charter] shall be submitted to the voters of the district at an election to be held on the first uniform election date in November of an even-numbered year that occurs at least 78 [45] days after the date on which the governing body orders the election.

(e) The ballot shall be printed to permit voting for or against the proposition: "Whether the local control plan [home-rule school district charter] of (name of school district) shall be rescinded so that the school district becomes an independent school district."

(f) A local control plan [home-rule school district charter] is rescinded if the rescission is approved by a majority of the qualified voters of the district voting at an election held for that purpose [at which at least 25 percent of the registered voters of the district vote].

(g) The rescission takes effect on a date established by resolution of the governing body but not earlier than the end of the school year during which the election to rescind the local control plan occurs [later than the 90th day after the date of an election held under this section at which rescission of the charter is approved and at which the number of registered voters required under Subsection (f) vote]. As soon as practicable after that election, the governing body shall notify the commissioner and the secretary of state of the results of the election and of the effective date of the rescission.

(h) The rescission of a local control plan [home-rule school district charter] under this section does not affect:

(1) the district's boundaries; or

(2) taxes or bonds of the district authorized before the effective date of the rescission.

SECTION 6. Section 12.051(2), Education Code, is amended to read as follows:

(2) "Board" and "board of trustees" mean the board of trustees of a school district or the governing body of a local control [home-rule] school district.

SECTION 7. Section 12.052(a), Education Code, is amended to read as follows:

(a) In accordance with this subchapter, the board of trustees of a school district or the governing body of a local control [home-rule] school district shall grant or deny, through a public vote of the board of trustees or governing body, a charter to parents and teachers for a campus or a program on a campus if the board is presented with a petition signed by:

(1) the parents of a majority of the students at that school campus; and

(2) a majority of the classroom teachers at that school campus.

SECTION 8. Section 12.0521(a), Education Code, is amended to read as follows:

(a) Notwithstanding Section 12.052, in accordance with this subchapter and in the manner provided by this section, the board of trustees of a school district or the governing body of a local control [home-rule] school district may grant a charter for:

(1) a new district campus; or

(2) a program that is operated:

(A) by an entity that has entered into a contract with the district under Section 11.157 to provide educational services to the district through the campus or program; and

(B) at a facility located in the boundaries of the district.

SECTION 9. Section 12.0522(a), Education Code, is amended to read as follows:

(a) Notwithstanding Section 12.052, in the manner provided by this section, the board of trustees of a school district or the governing body of a local control [home-rule] school district may grant a district charter to a campus to the extent authorized under this section.

SECTION 10. Section 12.101(a), Education Code, is amended to read as follows:

(a) In accordance with this subchapter, the commissioner may grant a charter on the application of an eligible entity for an open-enrollment charter school to operate in a facility of a commercial or nonprofit entity, an eligible entity, or a school district, including a local control [home-rule] school district. In this subsection, "eligible entity" means:

(1) an institution of higher education as defined under Section 61.003;

(2) a private or independent institution of higher education as defined under Section 61.003;

(3) an organization that is exempt from taxation under Section 501(c)(3), Internal Revenue Code of 1986 (26 U.S.C. Section 501(c)(3)); or

(4) a governmental entity.

SECTION 11. Sections 22.003(d) and (e), Education Code, are amended to read as follows:

(d) A school district employee with available personal leave under this section is entitled to use the leave for compensation during a term of active military service. This subsection applies to any personal or sick leave available under former law or provided by local policy of a school district, including a local control [home-rule] school district.

(e) A school district, including a local control [home-rule] school district, may adopt a policy providing for the paid leave of absence of employees taking leave for active military service as part of the consideration of employment by the district.

SECTION 12. Section 37.007(e), Education Code, is amended to read as follows:

(e) In accordance with 20 U.S.C. Section 7151, a local educational agency, including a school district, local control [home-rule] school district, or open-enrollment charter school, shall expel a student who brings a firearm, as defined by 18 U.S.C. Section 921, to school. The student must be expelled from the student's regular campus for a period of at least one year, except that:

(1) the superintendent or other chief administrative officer of the school district or of the other local educational agency, as defined by 20 U.S.C. Section 7801, may modify the length of the expulsion in the case of an individual student;

(2) the district or other local educational agency shall provide educational services to an expelled student in a disciplinary alternative education program as provided by Section 37.008 if the student is younger than 10 years of age on the date of expulsion; and

(3) the district or other local educational agency may provide educational services to an expelled student who is 10 years of age or older in a disciplinary alternative education program as provided in Section 37.008.

SECTION 13. Section 37.022(a)(2), Education Code, is amended to read as follows:

(2) "District or school" includes an independent school district, a local control [home-rule] school district, a campus or campus program charter holder, or an open-enrollment charter school.

SECTION 14. Section 38.152, Education Code, is amended to read as follows:

Sec. 38.152. APPLICABILITY. This subchapter applies to an interscholastic athletic activity, including practice and competition, sponsored or sanctioned by:

(1) a school district, including a local control [home-rule] school district, or a public school, including any school for which a charter has been granted under Chapter 12; or

(2) the University Interscholastic League.

SECTION 15. Section 38.157(c), Education Code, is amended to read as follows:

(c) The school district superintendent or the superintendent's designee or, in the case of a local control [home-rule] school district or open-enrollment charter school, the person who serves the function of superintendent or that person's designee shall supervise an athletic trainer or other person responsible for compliance with the return-to-play protocol. The person who has supervisory responsibilities under this subsection may not be a coach of an interscholastic athletics team.

SECTION 16. Section 38.158(f), Education Code, is amended to read as follows:

(f) Each person described by Subsection (c) must submit proof of timely completion of an approved course in compliance with Subsection (e) to the school district superintendent or the superintendent's designee or, in the case of a local control [home-rule] school district or open-enrollment charter school, a person who serves the function of a superintendent or that person's designee.

SECTION 17. Section 39.102(a), 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 local control [home-rule] school district or open-enrollment charter school, order closure of all programs operated under the district's local control plan 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 18. Section 42.152(c), Education Code, is amended to read as follows:

(c) Funds allocated under this section shall be used to fund supplemental programs and services designed to eliminate any disparity in performance on assessment instruments administered under Subchapter B, Chapter 39, or disparity in the rates of high school completion between students at risk of dropping out of school, as defined by Section 29.081, and all other students. Specifically, the funds, other than an indirect cost allotment established under State Board of Education rule, which may not exceed 45 percent, may be used to meet the costs of providing a compensatory, intensive, or accelerated instruction program under Section 29.081 or a disciplinary alternative education program established under Section 37.008, to pay the costs associated with placing students in a juvenile justice alternative education program established under Section 37.011, or to support a program eligible under Title I of the Elementary and Secondary Education Act of 1965, as provided by Pub. L. No. 103-382 and its subsequent amendments, and by federal regulations implementing that Act, at a campus at which at least 40 percent of the students are educationally disadvantaged. In meeting the costs of providing a compensatory, intensive, or accelerated instruction program under Section 29.081, a district's compensatory education allotment shall be used for costs supplementary to the regular education program, such as costs for program and student evaluation, instructional materials and equipment and other supplies required for quality instruction, supplemental staff expenses, salary for teachers of at-risk students, smaller class size, and individualized instruction. A local control [home-rule] school district or an open-enrollment charter school must use funds allocated under Subsection (a) for a purpose authorized in this subsection but is not otherwise subject to Subchapter C, Chapter 29. For purposes of this subsection, a program specifically designed to serve students at risk of dropping out of school, as defined by Section 29.081, is considered to be a program supplemental to the regular education program, and a district may use its compensatory education allotment for such a program.

SECTION 19. Section 41.0052, Election Code, is amended by adding Subsection (a-1) to read as follows:

(a-1) A school district or local control school district that holds its general election for officers on a date other than the November uniform election date of an even-numbered year may change the date on which it holds its general election for officers to the November uniform election date by adopting a local control plan or an amendment to a local control plan under Subchapter B, Chapter 12, Education Code.

SECTION 20. Section 7.102(c)(8), Education Code, is repealed.

SECTION 21. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2015.