By: Taylor of Galveston S.B. No. 1241
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to authority of school districts, home-rule school
  districts, and open-enrollment charter schools to establish
  innovation zones and the authority of school districts to obtain
  designation as districts of innovation.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Title 2, Education Code, is amended by adding
  Chapter 12A to read as follows:
  CHAPTER 12A.  INNOVATION ZONES AND DISTRICTS OF INNOVATION
  SUBCHAPTER A.  INNOVATION ZONES
         Sec. 12A.001.  DEFINITIONS. In this subchapter:
               (1)  "Governing body" means the board of trustees of a
  school district or the governing body of a home-rule school
  district under Subchapter B, Chapter 12, or an open-enrollment
  charter school under Subchapter D, Chapter 12.
               (2)  "School district" means an independent school
  district or a home-rule school district under Subchapter B, Chapter
  12.
         Sec. 12A.002.  AUTHORIZATION. (a)  Subject to approval by
  the commissioner, a governing body may establish a multiple-campus
  innovation zone in accordance with this subchapter to:
               (1)  encourage local community-based initiatives to
  improve educational outcomes with minimum state and local
  requirements;
               (2)  enable collaboration by multiple campuses,
  programs, and institutions of higher education; and
               (3)  encourage innovation through shared resources and
  facilities.
         (b)  Subject to Subsection (b-1), a governing body may:
               (1)  establish an innovation zone that includes only
  designated campuses under the authority of the governing body;
               (2)  establish, in cooperation with one or more other
  governing bodies, an innovation zone that includes one or more
  designated campuses under the authority of each governing body; or
               (3)  seek inclusion of one or more campuses under the
  authority of the governing body in an innovation zone established
  by one or more other governing bodies.
         (b-1)  A campus may be included in an innovation zone only if
  the most recent performance rating under Section 39.054 for the
  campus reflects at least acceptable performance.
         (c)  Establishment of an innovation zone or a request for
  inclusion of a campus in an existing zone may be initiated by:
               (1)  a resolution of a governing body; or
               (2)  a request submitted by the principal of a campus to
  the governing body with authority over the campus.
         Sec. 12A.003.  PARTICIPATION BY INSTITUTION OF HIGHER
  EDUCATION. An institution of higher education may participate in
  an innovation zone on terms acceptable to the governing board of the
  institution.
         Sec. 12A.004.  INNOVATION ZONE PLAN. (a)  The establishment
  of an innovation zone or a request for inclusion of a campus in an
  innovation zone must be based on a written innovation zone plan that
  includes:
               (1)  a detailed description of the budget, staffing,
  and financial resources necessary to implement the plan, including
  resources to be provided by each individual campus and resources to
  be provided collectively by all participating campuses; 
               (2)  a detailed description of the academic programs to
  be offered, including instructional methods, length of school day
  and year, credit and promotion criteria, and programs to serve
  special populations; 
               (3)  a statement of the facilities to be used;
               (4)  the proposed term of the innovation zone, which
  may not exceed five years;
               (5)  a statement of the reasons that the establishment
  of the innovation zone or inclusion of the campus in the zone will
  promote the ability of the campuses to achieve their academic
  goals; 
               (6)  a list of any local or state law, rule, or policy
  exemption necessary for successful operation of the innovation
  zone, subject to Section 12A.008;
               (7)  performance goals against which the success of the
  innovation zone may be measured; 
               (8)  written comments from the campus-level committee
  established under Section 11.251, if applicable, and parents and
  teachers at each campus proposed for inclusion in the innovation
  zone; and
               (9)  any other information required by local policy.
         (b)  As requested by a governing body, a regional education
  service center shall provide assistance in the development and
  implementation of an innovation plan.
         Sec. 12A.005.  CONSIDERATION OF REQUEST BY PRINCIPAL.
  (a)  A request by a principal for the establishment of an
  innovation zone or inclusion of a campus in an innovation zone must
  be considered at a public meeting by the governing body with
  authority over the principal's campus.
         (b)  Parents of students enrolled at the campus and teachers
  and other staff assigned to the campus must be provided the
  opportunity to make comments regarding the request at the public
  meeting.
         (c)  After conducting the public meeting, the governing body
  may:
               (1)  grant the request;
               (2)  grant the request subject to approval by another
  governing body, if the request also involves a campus under the
  authority of another governing body;
               (3)  delay a decision on the request, pending
  resolution of suggestions or comments regarding the request made by
  the governing body or parents, teachers, or other staff at the
  campus; or
               (4)  reject the request.
         (d)  If the governing body approves a principal's request,
  the governing body shall:
               (1)  seek approval by the commissioner in accordance
  with Section 12A.007;
               (2)  adopt performance goals for the principal's
  campus; and
               (3)  exempt the campus from any local requirement
  identified in the innovation plan under Section 12A.004(a)(6) for
  the term of the innovation zone.
         Sec. 12A.006.  FORM OF AGREEMENT. An innovation zone that
  involves more than one governing body or that involves an
  institution of higher education may be governed by an agreement
  between the affected school districts, schools, and institutions in
  the form of a contract.
         Sec. 12A.007.  APPROVAL BY COMMISSIONER. (a)  A governing
  body must obtain approval from the commissioner before the
  establishment or renewal of an innovation zone or the inclusion of a
  campus in an existing zone may become effective.
         (b)  If the commissioner approves the establishment or
  renewal of an innovation zone or the inclusion of a campus in an
  existing zone, the commissioner shall identify each requirement of
  state law, rule, or policy from which the campuses included in the
  zone are exempt.
         (c)  A decision by the commissioner under this section is
  final and may not be appealed.
         Sec. 12A.008.  APPLICABILITY OF CERTAIN LAWS. (a)  An
  open-enrollment charter school campus included in an innovation
  zone continues to be subject to the requirements of Subchapter D,
  Chapter 12.
         (b)  A campus included in an innovation zone other than an
  open-enrollment charter school campus is subject only to
  requirements imposed under this title that apply to an
  open-enrollment charter school.
         (c)  An innovation zone plan or other agreement governing an
  innovation zone may not conflict with the provisions of a home-rule
  school district charter under Subchapter B, Chapter 12.
         Sec. 12A.009.  ACCOUNTABILITY. The commissioner shall
  ensure that each campus included in an innovation zone is evaluated
  for academic and financial performance and that performance of each
  campus is attributed to the school district or open-enrollment
  charter school of which the campus is a part.
         Sec. 12A.010.  TERMINATION OR RENEWAL. (a)  A governing
  body may terminate an innovation zone that contains only campuses
  under the governing body's authority or withdraw campuses from
  participation in an innovation zone that also contains campuses
  under the authority of another governing body if:
               (1)  the innovation zone fails to meet performance
  goals established for the zone under this subchapter; or
               (2)  one or more campuses included in the innovation
  zone receives an unacceptable performance rating under Section
  39.054 for two consecutive school years.
         (b)  The commissioner may terminate an innovation zone if:
               (1)  the innovation zone fails to meet performance
  goals established for the zone under this subchapter; or
               (2)  one or more of the campuses included in the
  innovation zone receives an unacceptable performance rating under
  Section 39.054 for two consecutive school years.
         (c)  Unless the innovation zone is terminated by the
  governing body or bodies before the commissioner takes action under
  this subsection, the commissioner shall terminate an innovation
  zone if one or more of the campuses included in the innovation zone
  receives an unacceptable performance rating under Section 39.054
  for three consecutive school years.
         (d)  Subject to the approval of the participating governing
  bodies and the commissioner, an innovation zone may be renewed
  automatically for successive terms not to exceed five years each
  if:
               (1)  the zone meets performance goals established for
  the zone under this subchapter; and
               (2)  each campus included in the zone meets the
  requirement imposed by Section 12A.002(b-1) at the time of renewal.
         (e)  A decision by the commissioner under this section is
  final and may not be appealed.
         Sec. 12A.011.  FISCAL AGENT. If an innovation zone includes
  campuses under the authority of more than one governing body, the
  governing bodies may jointly designate the participating school
  district, school, or institution of higher education that will
  serve as the zone's fiscal agent for matters relating to
  employment, compliance, or reporting.
         Sec. 12A.012.  COMMISSIONER RULEMAKING. (a)  Subject to
  Subsection (b), the commissioner may adopt rules implementing this
  subchapter.
         (b)  The commissioner's rulemaking authority under this
  subchapter is limited to rules addressing reporting, federal
  program compliance, state and federal accountability, and funding.
  Except as authorized by this subsection, the rules may not govern
  the local operations of an innovation zone.
         Sec. 12A.013.  COMMISSIONER'S AUTHORITY REGARDING
  ACCOUNTABILITY AND FEDERAL REQUIREMENTS. Notwithstanding any
  other provision of this subchapter, this subchapter does not limit
  the commissioner's authority under Chapter 39 or federal law.
  SUBCHAPTER B.  DISTRICTS OF INNOVATION
         Sec. 12A.051.  AUTHORIZATION. (a)  Subject to Subsection
  (a-1), a school district may be designated as a district of
  innovation in accordance with this subchapter.
         (a-1)  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.
         (b)  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.052.  PUBLIC HEARING. (a)  Promptly after adopting
  a resolution under Section 12A.051(b)(1) or receiving a petition
  under Section 12A.051(b)(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.053.
         Sec. 12A.053.  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.054.
         Sec. 12A.054.  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 subchapter; and
               (2)  notify the legislature of each provision from
  which districts enrolling a majority of students in this state are
  exempt. 
         Sec. 12A.055.  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 proposed local innovation plan, the
  board of trustees shall submit the plan to the commissioner for
  approval.
         (d)  On approval by the commissioner of a local innovation
  plan submitted under Subsection (c):
               (1)  the district is designated as a district of
  innovation under this subchapter for the term specified in the
  plan, subject to Section 12A.056;
               (2)  the district shall begin operation in accordance
  with the plan; and
               (3)  the district is exempt from state requirements
  identified under Section 12A.053(b)(2).
         (e)  A district's exemption described by Subsection (d)(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.
         (f)  A decision by the commissioner under this section is
  final and may not be appealed.
         Sec. 12A.056.  TERM. The term of a district's designation as
  a district of innovation may not exceed five years.
         Sec. 12A.057.  AMENDMENT, RESCISSION, OR RENEWAL OF LOCAL
  INNOVATION PLAN. (a)  Subject to approval by the commissioner, 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.055.
         (b)  A decision by the commissioner under this section is
  final and may not be appealed.
         Sec. 12A.058.  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.059.  COMMISSIONER RULEMAKING. The commissioner
  may adopt rules to implement this subchapter.
         SECTION 2.  This Act takes effect September 1, 2015.