H.B. No. 1842
 
 
 
 
AN ACT
  relating to public school accountability, including the
  intervention in and sanction of a public school that has received an
  academically unsuccessful performance rating for at least two
  consecutive school years and the designation of a school district
  as a district of innovation.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 7.028(a), Education Code, is amended to
  read as follows:
         (a)  Except as provided by Section 29.001(5), 29.010(a),
  [39.056,] or 39.057, the agency may monitor compliance with
  requirements applicable to a process or program provided by a
  school district, campus, program, or school granted charters under
  Chapter 12, including the process described by Subchapter F,
  Chapter 11, or a program described by Subchapter B, C, D, E, F, H, or
  I, Chapter 29, Subchapter A, Chapter 37, or Section 38.003, and the
  use of funds provided for such a program under Subchapter C, Chapter
  42, only as necessary to ensure:
               (1)  compliance with federal law and regulations;
               (2)  financial accountability, including compliance
  with grant requirements; and
               (3)  data integrity for purposes of:
                     (A)  the Public Education Information Management
  System (PEIMS); and
                     (B)  accountability under Chapter 39.
         SECTION 2.  Subchapter C, Chapter 11, Education Code, is
  amended by adding Section 11.0511 to read as follows:
         Sec. 11.0511.  STUDENT TRUSTEE FOR CERTAIN DISTRICTS. (a)
  This section applies only to a school district described by Section
  11.065(a) in which a school in the district is operating under a
  campus turnaround plan.
         (b)  Notwithstanding Section 11.051(b), the board of
  trustees of a school district may adopt a resolution establishing
  as a nonvoting member a student trustee position as provided by this
  section.
         (c)  For a student trustee position under this section, the
  board shall adopt a policy that establishes:
               (1)  the term of the student trustee position;
               (2)  the procedures for selecting a student trustee,
  including the method for filling a vacancy; and
               (3)  the procedures for removal of a student trustee.
         (d)  A student is eligible to serve as a student trustee if
  the student is enrolled in the student's junior or senior year of
  high school and is considered in good standing academically and
  under the district code of conduct.
         (e)  The board shall adopt a policy regarding student
  trustee:
               (1)  participation, other than voting, in board
  deliberations, subject to Subsection (f); and
               (2)  access to information, documents, and records,
  consistent with the Family Educational Rights and Privacy Act of
  1974 (20 U.S.C. Section 1232g).
         (f)  A student trustee may not participate in a closed
  session of a board meeting in which any issue related to a personnel
  matter is considered.
         (g)  A student trustee is not entitled to receive
  compensation or reimbursement of the student trustee's expenses for
  services on the board.
         (h)  A school district may grant to a student who fulfills
  the requirements of service of a student trustee not more than one
  academic course credit in a subject area determined appropriate by
  the district.
         SECTION 3.  (a) Section 12.101(b-4), Education Code, is
  amended to read as follows:
         (b-4)  Notwithstanding Section 12.114, approval of the
  commissioner under that section is not required for establishment
  of a new open-enrollment charter school campus if the requirements
  of this subsection[, including the absence of commissioner
  disapproval under Subdivision (3),] are satisfied. A charter
  holder having an accreditation status of accredited and at least 50
  percent of its student population in grades assessed under
  Subchapter B, Chapter 39, or at least 50 percent of the students in
  the grades assessed having been enrolled in the school for at least
  three school years may establish one or more new campuses under an
  existing charter held by the charter holder if:
               (1)  the charter holder is currently evaluated under
  the standard accountability procedures for evaluation under
  Chapter 39 and received a district rating in the highest or second
  highest performance rating category under Subchapter C, Chapter 39,
  for three of the last five years with at least 75 percent of the
  campuses rated under the charter also receiving a rating in the
  highest or second highest performance rating category and with no
  campus with a rating in the lowest performance rating category in
  the most recent ratings;
               (2)  the charter holder provides written notice to the
  commissioner of the establishment of any campus under this
  subsection in the time, manner, and form provided by rule of the
  commissioner; and
               (3)  not later than the 60th day after the date the
  charter holder provides written notice under Subdivision (2), the
  commissioner does not provide written notice to the charter holder
  that the commissioner has determined that the charter holder does
  not satisfy the requirements of this section [of disapproval of a
  new campus under this section].
         (b)  The heading to Section 12.116, Education Code, is
  amended to read as follows:
         Sec. 12.116.  PROCEDURE FOR REVOCATION, [OR] MODIFICATION OF
  GOVERNANCE, OR DENIAL OF RENEWAL.
         (c)  Section 12.116, Education Code, is amended by amending
  Subsection (a) and adding Subsection (a-1) to read as follows:
         (a)  The commissioner shall adopt an informal procedure to be
  used for:
               (1)  revoking the charter of an open-enrollment charter
  school or for reconstituting the governing body of the charter
  holder as authorized by Section 12.115; and
               (2)  denying the renewal of a charter of an
  open-enrollment charter school as authorized by Section
  12.1141(c).
         (a-1)  The procedure adopted under Subsection (a) for the
  denial of renewal of a charter under Section 12.1141(c) or the
  revocation of a charter or reconstitution of a governing body of a
  charter holder under Section 12.115(a) must allow representatives
  of the charter holder to meet with the commissioner to discuss the
  commissioner's decision and must allow the charter holder to submit
  additional information to the commissioner relating to the
  commissioner's decision. In a final decision issued by the
  commissioner, the commissioner shall provide a written response to
  any information the charter holder submits under this subsection.
         (d)  This section applies beginning with the 2015-2016
  school year.
         SECTION 4.  Subtitle C, Title 2, Education Code, is amended
  by adding Chapter 12A to read as follows:
  CHAPTER 12A.  DISTRICTS OF INNOVATION
         Sec. 12A.001.  AUTHORIZATION. (a)  Subject to Subsection
  (b), a school district may be designated as a district of innovation
  in accordance with this chapter.
         (b)  A school district is eligible for designation as a
  district of innovation only if the district's most recent
  performance rating under Section 39.054 reflects at least
  acceptable performance.
         (c)  Consideration of designation as a district of
  innovation may be initiated by:
               (1)  a resolution adopted by the board of trustees of
  the district; or
               (2)  a petition signed by a majority of the members of
  the district-level committee established under Section 11.251.
         Sec. 12A.002.  PUBLIC HEARING. (a)  Promptly after adopting
  a resolution under Section 12A.001(c)(1) or receiving a petition
  under Section 12A.001(c)(2), the board of trustees shall hold a
  public hearing to consider whether the district should develop a
  local innovation plan for the designation of the district as a
  district of innovation.
         (b)  At the conclusion of the public hearing or as soon as
  possible after conclusion of the public hearing, the board of
  trustees may:
               (1)  decline to pursue designation of the district as a
  district of innovation; or
               (2)  appoint a committee to develop a local innovation
  plan in accordance with Section 12A.003.
         Sec. 12A.003.  LOCAL INNOVATION PLAN. (a)  A local
  innovation plan must be developed for a school district before the
  district may be designated as a district of innovation.
         (b)  A local innovation plan must:
               (1)  provide for a comprehensive educational program
  for the district, which program may include:
                     (A)  innovative curriculum, instructional
  methods, and provisions regarding community participation, campus
  governance, and parental involvement;
                     (B)  modifications to the school day or year;
                     (C)  provisions regarding the district budget and
  sustainable program funding;
                     (D)  accountability and assessment measures that
  exceed the requirements of state and federal law; and
                     (E)  any other innovations prescribed by the board
  of trustees; and
               (2)  identify requirements imposed by this code that
  inhibit the goals of the plan and from which the district should be
  exempted on adoption of the plan, subject to Section 12A.004.
         Sec. 12A.004.  LIMITATION OF PERMISSIBLE EXEMPTIONS. (a)  A
  local innovation plan may not provide for the exemption of a
  district designated as a district of innovation from the following
  provisions of this title:
               (1)  a state or federal requirement applicable to an
  open-enrollment charter school operating under Subchapter D,
  Chapter 12;
               (2)  Subchapters A, C, D, and E, Chapter 11, except that
  a district may be exempt from Sections 11.1511(b)(5) and (14) and
  Section 11.162;
               (3)  state curriculum and graduation requirements
  adopted under Chapter 28; and
               (4)  academic and financial accountability and
  sanctions under Chapter 39.
         (b)  The commissioner shall:
               (1)  maintain a list of provisions of this title from
  which school districts designated as districts of innovation are
  exempt under this chapter; and
               (2)  notify the legislature of each provision from
  which districts enrolling a majority of students in this state are
  exempt.
         Sec. 12A.005.  ADOPTION OF LOCAL INNOVATION PLAN;
  COMMISSIONER APPROVAL. (a)  The board of trustees may not vote on
  adoption of a proposed local innovation plan unless:
               (1)  the final version of the proposed plan has been
  available on the district's Internet website for at least 30 days;
               (2)  the board of trustees has notified the
  commissioner of the board's intention to vote on adoption of the
  proposed plan; and
               (3)  the district-level committee established under
  Section 11.251 has held a public meeting to consider the final
  version of the proposed plan and has approved the plan by a majority
  vote of the committee members, provided that the meeting required
  by this subdivision may occur immediately before and on the same
  date as the meeting at which the board intends to vote on adoption
  of the proposed plan.
         (b)  A board of trustees may adopt a proposed local
  innovation plan by an affirmative vote of two-thirds of the
  membership of the board.
         (c)  On adoption of a local innovation plan, the district:
               (1)  is designated as a district of innovation under
  this chapter for the term specified in the plan, subject to Section
  12A.006;
               (2)  shall begin operation in accordance with the plan;
  and
               (3)  is exempt from state requirements identified under
  Section 12A.003(b)(2).
         (d)  A district's exemption described by Subsection (c)(3)
  includes any subsequent amendment or redesignation of an identified
  state requirement, unless the subsequent amendment or
  redesignation specifically applies to a district of innovation.
         Sec. 12A.006.  TERM. The term of a district's designation as
  a district of innovation may not exceed five years.
         Sec. 12A.007.  AMENDMENT, RESCISSION, OR RENEWAL OF LOCAL
  INNOVATION PLAN. A local innovation plan may be amended,
  rescinded, or renewed if the action is approved by a vote of the
  district-level committee established under Section 11.251, or a
  comparable committee if the district is exempt from that section,
  and the board of trustees in the same manner as required for initial
  adoption of a local innovation plan under Section 12A.005.
         Sec. 12A.008.  TERMINATION BY COMMISSIONER. (a)  The
  commissioner may terminate a district's designation as a district
  of innovation if the district receives for two consecutive school
  years:
               (1)  an unacceptable academic performance rating under
  Section 39.054;
               (2)  an unacceptable financial accountability rating
  under Section 39.082; or
               (3)  an unacceptable academic performance rating under
  Section 39.054 for one of the school years and an unacceptable
  financial accountability rating under Section 39.082 for the other
  school year.
         (b)  Instead of terminating a district's designation as
  authorized by Subsection (a), the commissioner may permit the
  district to amend the district's local innovation plan to address
  concerns specified by the commissioner.
         (c)  The commissioner shall terminate a district's
  designation as a district of innovation if the district receives
  for three consecutive school years:
               (1)  an unacceptable academic performance rating under
  Section 39.054;
               (2)  an unacceptable financial accountability rating
  under Section 39.082; or
               (3)  any combination of one or more unacceptable
  ratings under Subdivision (1) and one or more unacceptable ratings
  under Subdivision (2).
         (d)  A decision by the commissioner under this section is
  final and may not be appealed.
         Sec. 12A.009.  COMMISSIONER RULEMAKING. The commissioner
  may adopt rules to implement this chapter.
         SECTION 5.  Section 29.315, Education Code, is amended to
  read as follows:
         Sec. 29.315.  TEXAS SCHOOL FOR THE DEAF MEMORANDUM OF
  UNDERSTANDING. The Texas Education Agency and the Texas School for
  the Deaf shall develop, agree to, and by commissioner rule adopt no
  later than September 1, 1998, a memorandum of understanding to
  establish:
               (1)  the method for developing and reevaluating a set
  of indicators of the quality of learning at the Texas School for the
  Deaf;
               (2)  the process for the agency to conduct and report on
  an annual evaluation of the school's performance on the indicators;
               (3)  the requirements for the school's board to
  publish, discuss, and disseminate an annual report describing the
  educational performance of the school;
               (4)  the process for the agency to assign an
  accreditation status to the school, to reevaluate the status on an
  annual basis, and, if necessary, to conduct monitoring reviews
  [make on-site accreditation investigations]; and
               (5)  the type of information the school shall be
  required to provide through the Public Education Information
  Management System (PEIMS).
         SECTION 6.  Section 30.005, Education Code, is amended to
  read as follows:
         Sec. 30.005.  TEXAS SCHOOL FOR THE BLIND AND VISUALLY
  IMPAIRED MEMORANDUM OF UNDERSTANDING. The Texas Education Agency
  and the Texas School for the Blind and Visually Impaired shall
  develop, agree to, and by commissioner rule adopt a memorandum of
  understanding to establish:
               (1)  the method for developing and reevaluating a set
  of indicators of the quality of learning at the Texas School for the
  Blind and Visually Impaired;
               (2)  the process for the agency to conduct and report on
  an annual evaluation of the school's performance on the indicators;
               (3)  the requirements for the school's board to
  publish, discuss, and disseminate an annual report describing the
  educational performance of the school;
               (4)  the process for the agency to:
                     (A)  assign an accreditation status to the school;
                     (B)  reevaluate the status on an annual basis; and
                     (C)  if necessary, conduct monitoring reviews
  [make on-site accreditation investigations]; and
               (5)  the type of information the school shall be
  required to provide through the Public Education Information
  Management System (PEIMS).
         SECTION 7.  Section 39.056, Education Code, is amended to
  read as follows:
         Sec. 39.056.  MONITORING REVIEWS [ON-SITE INVESTIGATIONS].
  (a) The commissioner may[:
               [(1)]  direct the agency to conduct monitoring reviews
  and random on-site visits [investigations] of a school district at
  any time as authorized by Section 7.028 [to answer any questions
  concerning a program, including special education, required by
  federal law or for which the district receives federal funds; and
               [(2)     as a result of the investigation, change the
  accreditation status of a district, change the accountability
  rating of a district or campus, or withdraw a distinction
  designation under Subchapter G].
         (b)  The commissioner shall determine the frequency of
  monitoring reviews [on-site investigations] by the agency
  according to:
               (1)  annual comprehensive analyses of student
  performance and equity in relation to the student achievement
  indicators adopted under Section 39.053;
               (2)  reviews of fiscal reports and other fiscal data as
  set forth in Section 44.010; or
               (3)  comprehensive analyses of financial
  accountability standards under Subchapter D.
         (c)  In conducting a monitoring review [making an on-site
  accreditation investigation], the agency may [investigators shall]
  obtain information from administrators, other district employees
  [teachers], [and] parents of students enrolled in the school
  district, and other persons as necessary.  [The investigation may
  not be closed until information is obtained from each of those
  sources.]  The commissioner [State Board of Education] shall adopt
  rules for:
               (1)  obtaining information from parents and using that
  information in the monitoring review [investigator's] report; and
               (2)  obtaining information from other district
  employees [teachers] in a manner that prevents a district or campus
  from screening the information.
         (d)  The agency shall give written notice to the
  superintendent and the board of trustees of a school district of any
  impending monitoring review [investigation of the district's
  accreditation].
         (e)  The agency [investigators] shall report [orally and] in
  writing to the superintendent and president of the board of
  trustees of the school district [and, as appropriate, to campus
  administrators] and shall make recommendations concerning any
  necessary improvements or sources of aid such as regional education
  service centers.
         (f)  A district which takes action with regard to the
  recommendations provided by the agency [investigators] as
  prescribed by Subsection (e) shall make a reasonable effort to seek
  assistance from a third party in developing an action plan to
  improve district performance using improvement techniques that are
  goal oriented and research based.
         (g)  A monitoring review may include desk reviews and on-site
  visits, including random on-site visits.
         (h)  The commissioner may at any time convert a monitoring
  review to a special accreditation investigation under Section
  39.057, provided the commissioner promptly notifies the school
  district of the conversion.
         SECTION 8.  Section 39.058, Education Code, is amended to
  read as follows:
         Sec. 39.058.  CONDUCT OF SPECIAL ACCREDITATION
  INVESTIGATIONS. (a) The agency shall adopt written procedures for
  conducting special accreditation [on-site] investigations under
  this subchapter, including procedures that allow the agency to
  obtain information from district employees in a manner that
  prevents a district or campus from screening the information.  The
  agency shall make the procedures available on the agency Internet
  website [to the complainant, the alleged violator, and the public].  
  Agency staff must be trained in the procedures and must follow the
  procedures in conducting the special accreditation investigation.
         (b)  After completing a special accreditation [an]
  investigation, the agency shall present preliminary findings to any
  person or entity the agency finds has violated a law, rule, or
  policy.  Before issuing a report with its final findings, the agency
  must provide a person or entity the agency finds has violated a law,
  rule, or policy an opportunity for an informal review by the
  commissioner or a designated hearing examiner.
         SECTION 9.  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, or if considered
  appropriate by the commissioner on the basis of a special
  accreditation investigation under Section 39.057, 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 a monitoring review [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 10.  Section 39.106, Education Code, is amended by
  amending Subsection (a) and adding Subsection (a-1) to read as
  follows:
         (a)  If a campus performance is below any standard under
  Section 39.054(e), the commissioner shall assign a campus
  intervention team. A campus intervention team shall:
               (1)  conduct, with the involvement and advice of the
  school community partnership team, if applicable:
                     (A)  a targeted on-site needs assessment relevant
  to an area of insufficient performance of the campus as provided by
  Subsection (b); or
                     (B)  if the commissioner determines necessary, a
  comprehensive on-site needs assessment, using the procedures
  provided by Subsection (b);
               (2)  recommend appropriate actions as provided by
  Subsection (c);
               (3)  assist in the development of a targeted
  improvement plan;
               (4)  conduct a public meeting at the campus with the
  campus principal, the members of the campus-level planning and
  decision-making committee established under Section 11.251,
  parents of students attending the campus, and community members
  residing in the district to review the campus performance rating
  and solicit input for the development of the targeted improvement
  plan;
               (5)  assist the campus in submitting the targeted
  improvement plan to the board of trustees for approval and
  presenting the plan in a public hearing as provided by Subsection
  (e-1); and
               (6) [(5)]  assist the commissioner in monitoring the
  progress of the campus in implementing the targeted improvement
  plan.
         (a-1)  The campus intervention team must provide written
  notice of the public meeting required by Subsection (a)(4) to the
  parents of students attending the campus and post notice of the
  meeting on the Internet website of the campus. The notice must
  include the date, time, and place of the meeting.
         SECTION 11.  The heading to Section 39.107, Education Code,
  is amended to read as follows:
         Sec. 39.107.  CAMPUS TURNAROUND PLAN, BOARD OF MANAGERS
  [RECONSTITUTION, REPURPOSING], ALTERNATIVE MANAGEMENT, AND
  CLOSURE.
         SECTION 12.  Section 39.107, Education Code, is amended by
  amending Subsections (a), (a-1), (b), (b-1), (b-2), (d), (e),
  (e-1), (e-2), (f), and (g) and adding Subsections (a-2), (b-3),
  (b-4), (b-5), (b-6), (b-7), (b-8), (b-9), (e-4), (e-5), (e-6),
  (g-1), and (g-2) to read as follows:
         (a)  After a campus has been identified as unacceptable for
  two consecutive school years, the commissioner shall order the
  campus to prepare and submit a campus turnaround plan [the
  reconstitution of the campus]. The commissioner shall by rule
  establish procedures governing the time and manner in which the
  campus must submit the campus turnaround plan.
         (a-1)  A [In reconstituting a campus, a] campus intervention
  team shall assist the campus in:
               (1)  developing an updated targeted improvement plan,
  including a campus turnaround plan to be implemented by the campus;
               (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.
         (a-2)  Before a campus turnaround plan is prepared and
  submitted for approval to the board of trustees of the school
  district, the district, in consultation with the campus
  intervention team, shall:
               (1)  provide notice to parents, the community, and
  stakeholders that the campus has received an academically
  unacceptable performance rating for two consecutive years and will
  be required to submit a campus turnaround plan; and
               (2)  request assistance from parents, the community,
  and stakeholders in developing the campus turnaround plan.
         (b)  The school district, in consultation with the campus
  intervention team, shall prepare the campus turnaround plan and
  allow parents, the community, and stakeholders an opportunity to
  review the plan before it is submitted for approval to the board of
  trustees of the school district. The plan must include details on
  the method for restructuring, reforming, or reconstituting the
  campus. If the district determines that granting a district
  charter under Section 12.0522 is appropriate for the campus, the
  campus turnaround plan must provide information on the
  implementation of the district charter. The plan must assist the
  campus in implementing procedures to satisfy all performance
  standards required under Section 39.054(e) [decide which educators
  may be retained at that campus.   A principal who has been employed
  by the campus in that capacity during the full period described by
  Subsection (a) may not be retained at that campus unless the campus
  intervention team determines that retention of the principal would
  be more beneficial to the student achievement and campus stability
  than removal].
         (b-1)  A campus turnaround plan must include:
               (1)  a detailed description of the academic programs to
  be offered at the campus, including instructional methods, length
  of school day and school year, academic credit and promotion
  criteria, and programs to serve special student populations;
               (2)  the term of the charter, if a district charter is
  to be granted for the campus under Section 12.0522;
               (3)  written comments from the campus-level committee
  established under Section 11.251, if applicable, parents, and
  teachers at the campus; and
               (4)  a detailed description of the budget, staffing,
  and financial resources required to implement the plan, including
  any supplemental resources to be provided by the district or other
  identified sources [A teacher of a subject assessed by an
  assessment instrument under Section 39.023 may be retained only if
  the campus intervention team determines that a pattern exists of
  significant academic improvement by students taught by the teacher.
  If an educator is not retained, the educator may be assigned to
  another position in the district].
         (b-2)  A school district may:
               (1)  request that a regional education service center
  provide assistance in the development and implementation of a
  campus turnaround plan; or
               (2)  partner with an institution of higher education to
  develop and implement a campus turnaround plan. [For each year that
  a campus is considered to have an unacceptable performance rating,
  a campus intervention team shall:
               [(1)     assist in updating the targeted improvement plan
  to identify and analyze areas of growth and areas that require
  improvement;
               [(2)  submit the updated plan to:
                     [(A)     the board of trustees of the school
  district; and
                     [(B)  the parents of campus students; and
               [(3)     assist in submitting the updated plan to the
  commissioner for approval.]
         (b-3)  The updated targeted improvement plan submitted to
  the board of trustees of a school district under Subsection (a-1)
  must include all plans and details that are required to execute the
  campus turnaround plan without any additional action or approval by
  the board of trustees.
         (b-4)  A campus turnaround plan developed under this section
  must take effect not later than the school year following the third
  consecutive school year that the campus has received an
  academically unacceptable performance rating.
         (b-5)  Following approval of a campus turnaround plan by the
  commissioner, the school district, in consultation with the campus
  intervention team, may take any actions needed to prepare for the
  implementation of the plan. 
         (b-6)  If a campus for which a campus turnaround plan has
  been ordered under Subsection (a) receives an academically
  acceptable performance rating for the school year following the
  order, the board of trustees may:
               (1)  implement the campus turnaround plan;
               (2)  implement a modified version of the campus
  turnaround plan; or
               (3)  withdraw the campus turnaround plan.
         (b-7)  A school district required to implement a campus
  turnaround plan may modify the plan if the campus receives an
  academically acceptable performance rating for two consecutive
  school years following the implementation of the plan.
         (b-8)  Section 12.0522(b) does not apply to a district
  charter approved by the commissioner under this section. A
  district charter approved under this section may be renewed or
  continue in effect after the campus is no longer subject to an order
  under Subsection (a).
         (b-9)  The commissioner shall adopt rules governing the
  procedures for an open-enrollment charter school campus that is
  subject to an order issued under Subsection (a). An
  open-enrollment charter school must revise the school's charter in
  accordance with Section 12.114 in the campus turnaround plan.
  Nothing in this section may be construed to modify any provision of
  Subchapter D, Chapter 12, relating to the expiration, nonrenewal,
  revocation, or modification of the governance of an open-enrollment
  charter school.  The governing board of the open-enrollment charter
  school shall perform the duties of a board of trustees of a school
  district under this section. 
         (d)  The commissioner may approve a campus turnaround plan
  only if the commissioner determines that the campus will satisfy
  all student performance standards required under Section 39.054(e)
  not later than the second year the campus receives a performance
  rating following the implementation of the campus turnaround plan.
  If the commissioner does not make this determination [determines
  that the campus is not fully implementing the updated targeted
  improvement plan or if the students enrolled at the campus fail to
  demonstrate substantial improvement in the areas targeted by the
  updated plan], the commissioner shall [may] order:
               (1)  appointment of a board of managers to govern the
  district as provided by Section 39.112(b) [repurposing of the
  campus under this section];
               (2)  alternative management of the campus under this
  section; or
               (3)  closure of the campus.
         (e)  If a campus is considered to have an unacceptable
  performance rating for three consecutive school years after the
  campus is ordered to submit a campus turnaround plan
  [reconstituted] under Subsection (a), the commissioner, subject to
  Subsection [(e-1) or] (e-2), shall order:
               (1)  appointment of a board of managers to govern the
  district as provided by Section 39.112(b) [repurposing of the
  campus under this section]; or
               (2)  [alternative management of the campus under this
  section; or
               [(3)]  closure of the campus.
         (e-1)  If the commissioner orders the closure of a campus
  under this section, that campus may be repurposed to serve students
  at that campus location only if the commissioner finds that the
  repurposed campus offers a distinctly different academic program
  and serves a majority of grade levels at the repurposed campus not
  served at the original campus and approves a new campus
  identification number for the campus. The majority of students
  assigned to a campus that has been closed and repurposed may not
  have attended that campus in the previous school year. Any student
  assigned to a campus that has been closed must be allowed to
  transfer to any other campus in the district that serves that
  student's grade level and on request must be provided
  transportation to the other campus.  The commissioner may grant an
  exemption allowing students assigned to a closed campus to attend
  the repurposed campus if there is no other campus in the district at
  which the students may enroll [The commissioner may waive the
  requirement to enter an order under Subsection (e) for not more than
  one school year if the commissioner determines that, on the basis of
  significant improvement in student performance over the preceding
  two school years, the campus is likely to be assigned an acceptable
  performance rating for the following school year].
         (e-2)  For purposes of this subsection, "parent" has the
  meaning assigned by Section 12.051. If the commissioner is
  presented, in the time and manner specified by commissioner rule, a
  written petition signed by the parents of a majority of the students
  enrolled at a campus to which Subsection (e) applies, specifying
  the action described by Subsection (e)(1) or [,] (2)[, or (3)] that
  the parents request the commissioner to order, the commissioner
  shall, except as otherwise authorized by this subsection, order the
  specific action requested. If the board of trustees of the school
  district in which the campus is located presents to the
  commissioner, in the time and manner specified by commissioner
  rule, a written request that the commissioner order specific action
  authorized under Subsection (e) other than the specific action
  requested in the parents' petition and a written explanation of the
  basis for the board's request, the commissioner may order the
  action requested by the board of trustees.
         (e-4)  A board of managers appointed by the commissioner
  under this section is required to take appropriate actions to
  resolve the conditions that caused a campus to be subject to an
  order under Subsection (a), including amending the district's
  budget, reassigning staff, or relocating academic programs.
         (e-5)  The commissioner may authorize payment of a board of
  managers appointed under this section from agency funds.
         (e-6)  The commissioner may at any time replace a member of a
  board of managers appointed under this section.
         (f)  Notwithstanding Section 39.112(e), the commissioner may
  remove a board of managers appointed to govern a district under this
  section only if the campus that was the basis for the appointment of
  the board of managers receives an academically acceptable
  performance rating for two consecutive school years. If a campus
  that was the basis for the appointment of a board of managers
  receives an academically unacceptable performance rating for two
  additional consecutive years following the appointment of the board
  of managers, the commissioner may remove the board of managers and,
  in consultation with the local community, may appoint a new board of
  managers to govern the district. [If the commissioner orders
  repurposing of a campus, the school district shall develop a
  comprehensive plan for repurposing the campus and submit the plan
  to the board of trustees for approval, using the procedures
  described by Section 39.106(e-1), and to the commissioner for
  approval. The plan must include a description of a rigorous and
  relevant academic program for the campus. The plan may include
  various instructional models. The commissioner may not approve the
  repurposing of a campus unless:
               [(1)     all students in the assigned attendance zone of
  the campus in the school year immediately preceding the repurposing
  of the campus are provided with the opportunity to enroll in and are
  provided transportation on request to another campus, unless the
  commissioner grants an exception because there is no other campus
  in the district in which the students may enroll;
               [(2)     the principal is not retained at the campus,
  unless the commissioner determines that students enrolled at the
  campus have demonstrated significant academic improvement; and
               [(3)     teachers employed at the campus in the school
  year immediately preceding the repurposing of the campus are not
  retained at the campus, unless the commissioner or the
  commissioner's designee grants an exception, at the request of a
  school district, for:
                     [(A)     a teacher who provides instruction in a
  subject other than a subject for which an assessment instrument is
  administered under Section 39.023(a) or (c) who demonstrates to the
  commissioner satisfactory performance; or
                     [(B)     a teacher who provides instruction in a
  subject for which an assessment instrument is administered under
  Section 39.023(a) or (c) if the district demonstrates that the
  students of the teacher demonstrated satisfactory performance or
  improved academic growth on that assessment instrument.]
         (g)  Following the removal of a board of managers under
  Subsection (f), or at the request of a managing entity appointed
  under Subsection (d) to oversee the implementation of alternative
  management, the commissioner may appoint a conservator or monitor
  for the district to ensure district-level support for
  low-performing campuses and to oversee the implementation of the
  updated targeted improvement plan [If an educator is not retained
  under Subsection (f), the educator may be assigned to another
  position in the district].
         (g-1)  If the commissioner orders alternative management of
  a campus under Subsection (d)(2), the school district shall execute
  a contract with a managing entity for a term not to exceed five
  years.  The commissioner may require a district to extend the term
  of the contract if the commissioner determines that extending the
  contract on expiration of the initial term is in the best interest
  of the students attending the campus. The terms of the contract must
  be approved by the commissioner.  If a campus receives an
  academically unacceptable performance rating for two consecutive
  school years after the managing entity assumes management of the
  campus, the commissioner shall cancel the contract with the
  managing entity.
         (g-2)  Subject to Subsection (e), at the end of the contract
  term with a managing entity or the cancellation of a contract with a
  managing entity under Subsection (g-1), the board of trustees of
  the school district shall resume management of the campus.
         SECTION 13.  Subchapter E, Chapter 39, Education Code, is
  amended by adding Section 39.1071 to read as follows:
         Sec. 39.1071.  TRANSITIONAL INTERVENTIONS AND SANCTIONS.
  (a) For a campus that received an academically unacceptable
  performance rating for the 2013-2014, 2014-2015, and 2015-2016
  school years, the commissioner may apply the interventions and
  sanctions authorized by this chapter as this chapter existed on
  January 1, 2015, to the campus.
         (b)  If a campus described under Subsection (a) receives an
  academically unacceptable performance rating for the 2016-2017 and
  2017-2018 school years, the commissioner shall apply the
  interventions and sanctions authorized by Section 39.107(e) to the
  campus.
         (c)  For a campus that received an academically acceptable
  performance rating for the 2013-2014 school year and an
  academically unacceptable performance rating for the 2014-2015 and
  2015-2016 school years, the commissioner shall apply the
  interventions and sanctions authorized by Section 39.107(a) to the
  campus.
         (d)  If a campus described under Subsection (c) receives an
  academically unacceptable performance rating for the 2016-2017,
  2017-2018, and 2018-2019 school years, the commissioner shall apply
  the interventions and sanctions authorized by Section 39.107(e) to
  the campus.
         (e)  The commissioner may adopt rules as necessary to
  implement this section.
         (f)  This section expires September 1, 2020.
         SECTION 14.  Section 39.112, Education Code, is amended by
  adding Subsections (d-1), (d-2), and (g) and amending Subsection
  (e) to read as follows:
         (d-1)  The board of managers appointed by the commissioner
  must, if possible, include community leaders, business
  representatives who have expertise in leadership, and individuals
  who have knowledge or expertise in the field of education.
         (d-2)  The commissioner must provide each individual
  appointed to a board of managers with training in effective
  leadership strategies.
         (e)  A board of managers shall, during the period of the
  appointment, order the election of members of the board of trustees
  of the district in accordance with applicable provisions of law.  
  Except as provided by this subsection, the members of the board of
  trustees do not assume any powers or duties after the election until
  the appointment of the board of managers expires. Not [At the
  direction of the commissioner but not] later than the second
  anniversary of the date the board of managers of a district was
  appointed, the commissioner shall notify the board of managers and
  the board of trustees of the date on which the appointment of the
  board of managers will expire [shall order an election of members
  of the district board of trustees.   The election must be held on a
  uniform election date on which an election of district trustees may
  be held under Section 41.001, Election Code, that is at least 180
  days after the date the election was ordered].  Following each of
  the last three years of the period of the appointment, one-third of
  the members of the board of managers shall be replaced by the number
  of members of the school district board of trustees who were elected
  at an election ordered under this subsection that constitutes, as
  closely as possible, one-third of the membership of the board of
  trustees. On the expiration of the appointment of the board of
  managers [qualification of members for office], the board of
  trustees assumes all of the powers and duties assigned to a board of
  trustees by law, rule, or regulation.
         (g)  Following the expiration of the period of appointment of
  a board of managers for a district, the commissioner shall provide
  training in effective leadership strategies to the board of
  trustees of the school district.
         SECTION 15.  Subchapter E, Chapter 39, Education Code, is
  amended by adding Sections 39.1121 and 39.1122 to read as follows:
         Sec. 39.1121.  APPOINTMENT OF BOARD OF MANAGERS FOR
  OPEN-ENROLLMENT CHARTER SCHOOL; SUPERINTENDENT. (a) A board of
  managers appointed for an open-enrollment charter school or a
  campus of an open-enrollment charter school under this chapter or
  Chapter 12 has the powers and duties prescribed by Section
  39.107(e-4), if applicable, and Sections 39.112(a), (b), (c), and
  (d).
         (b)  If the commissioner appoints a board of managers for an
  open-enrollment charter school or a campus of an open-enrollment
  charter school, the commissioner may also appoint a superintendent.
         (c)  Except as otherwise provided by this subsection, a board
  of managers for an open-enrollment charter school or a campus of an
  open-enrollment charter school may not serve for a period that
  exceeds the period authorized by law for a board of managers
  appointed for a school district. A board of managers appointed to
  wind up the affairs of a former open-enrollment charter school or
  campus serves until dissolved by the commissioner.
         (d)  Any person appointed by the commissioner to serve on the
  board of managers for an open-enrollment charter school or a campus
  of an open-enrollment charter school or as superintendent acts on
  behalf of the commissioner and is entitled to:
               (1)  sovereign immunity; and
               (2)  representation by the attorney general for any act
  or omission taken while acting in the person's official capacity.
         (e)  Any person appointed to serve on the board of managers
  for an open-enrollment charter school or a campus of an
  open-enrollment charter school or as superintendent serves at the
  discretion of the commissioner and may be replaced by the
  commissioner at any time.
         Sec. 39.1122.  COMPENSATION OF BOARD OF MANAGERS FOR
  OPEN-ENROLLMENT CHARTER SCHOOL AND SUPERINTENDENT. (a) The
  commissioner may authorize compensation for a member of a board of
  managers for an open-enrollment charter school or a campus of an
  open-enrollment charter school or a superintendent appointed by the
  commissioner.
         (b)  The commissioner shall establish the terms of
  compensation provided under Subsection (a).
         (c)  The commissioner shall use funds received by or due to
  the former charter holder under Section 12.106 or funds returned to
  the state from liquidation of state property held by a former
  charter holder for compensation of a member of a board of managers
  for an open-enrollment charter school or a campus of an
  open-enrollment charter school or a superintendent.
         (d)  If funds described by Subsection (c) are not available
  or the commissioner determines that the circumstances require, the
  commissioner may use available agency funds, provided that the use
  of the available funds for that purpose is not prohibited by other
  law.
         (e)  To the extent this section conflicts with Section
  39.107(e-5), this section prevails.
         SECTION 16.  Section 39.114, Education Code, is amended to
  read as follows:
         Sec. 39.114.  IMMUNITY FROM CIVIL LIABILITY. An employee,
  volunteer, or contractor acting on behalf of the commissioner under
  this subchapter, or a member of a board of managers appointed by the
  commissioner under this subchapter, is immune from civil liability
  to the same extent as a professional employee of a school district
  under Section 22.051.
         SECTION 17.  Section 39.106(f), Education Code, is repealed.
         SECTION 18.  Not later than December 1, 2018, the
  Legislative Budget Board shall publish a report evaluating the
  implementation of Section 39.107, Education Code, as amended by
  this Act, including an analysis of whether the changes in law made
  by this Act result in improvements to school performance and
  student performance. The Legislative Budget Board may contract with
  another entity for the purpose of producing the evaluation required
  by this section.
         SECTION 19.  This Act applies to the academic performance
  ratings issued to public school campuses beginning with the
  2015-2016 school year.
         SECTION 20.  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.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 1842 was passed by the House on May
  13, 2015, by the following vote:  Yeas 143, Nays 1, 2 present, not
  voting; that the House refused to concur in Senate amendments to
  H.B. No. 1842 on May 29, 2015, and requested the appointment of a
  conference committee to consider the differences between the two
  houses; and that the House adopted the conference committee report
  on H.B. No. 1842 on May 31, 2015, by the following vote:  Yeas 125,
  Nays 18, 2 present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.B. No. 1842 was passed by the Senate, with
  amendments, on May 26, 2015, by the following vote:  Yeas 21, Nays
  10; at the request of the House, the Senate appointed a conference
  committee to consider the differences between the two houses; and
  that the Senate adopted the conference committee report on H.B. No.
  1842 on May 31, 2015, by the following vote:  Yeas 26, Nays 5.
 
  ______________________________
  Secretary of the Senate   
  APPROVED: __________________
                  Date       
   
           __________________
                Governor