Amend CSHB 1500 (senate committee printing) by adding the following appropriately numbered SECTIONS to the bill and renumbering SECTIONS of the bill accordingly:

SECTION ____.  Sections 39.053(b), Education Code, is amended to read as follows:

(b)  Performance on the achievement indicators adopted under Subsections (c)(1)-(4) shall be compared to state-established standards. To the extent feasible, the [The] indicators should allow for disaggregation [must be based on information that is disaggregated] by race, ethnicity, and socioeconomic status.

SECTION ____.  Sections 39.054(a), (a-1), and (a-3), Education Code, as effective September 1, 2017, are amended to read as follows:

(a)  The commissioner shall adopt rules to evaluate school district and campus performance and assign each district and campus an overall performance rating of A, B, C, D, or F. In addition to the overall performance rating, the commissioner shall assign each district and campus a separate domain performance rating of A, B, C, D, or F for each applicable domain under Sections 39.053(c)(1)-(4). An overall or domain performance rating of A reflects exemplary performance. An overall or domain performance rating of B reflects recognized performance. An overall or domain performance rating of C reflects acceptable performance. An overall or domain performance rating of D reflects performance that needs improvement. An overall or domain performance rating of [or] F reflects unacceptable performance. A district may not receive an overall or domain performance rating of A if the district includes any campus with a corresponding overall or domain performance rating of [D or] F. A reference in law to an acceptable rating or acceptable performance includes an overall or domain performance rating of A, B, [or] C, or D or performance that is exemplary, recognized, or acceptable or needs improvement [performance].

(a-1)  In [For purposes of] assigning [an overall] performance ratings [rating] under Subsection (a), the commissioner may adjust the overall performance rating of a district or campus if the performance of the district or campus under the indicators described by Section 39.053(c), based on information disaggregated by race, ethnicity, socioeconomic status, or other factors, does not meet standards established by the commissioner. The commissioner shall attribute:

[(1)  55 percent of the performance evaluation to the achievement indicators for the first, second, and third domains under Sections 39.053(c)(1)-(3);

[(2)  for middle and junior high school and elementary campuses and districts that include only those campuses, 35 percent of the performance evaluation to the applicable achievement indicators for the fourth domain under Section 39.053(c)(4);

[(3)  for high school campuses and districts that include those campuses:

[(A)  10 percent of the performance evaluation to the high school graduation rate achievement indicator described by Section 39.053(c)(4)(A)(ii); and

[(B)  25 percent to the remaining applicable achievement indicators for the fourth domain under Section 39.053(c)(4); and

[(4)  10 percent of the performance evaluation to the locally selected and evaluated achievement indicators provided for under the fifth domain under Section 39.053(c)(5)].

(a-3)  Not later than August 15 of each year, the performance ratings of each district and campus shall be made publicly available as provided by rules adopted under this section. [If a district or campus received an overall or domain performance rating of D or F for the preceding school year, the commissioner shall notify the district of a subsequent such designation on or before June 15.]

(2)  SECTION ____. Section 39.054(a-1)(1), Education Code, is amended to read as follows:

(3)  Add the following appropriately numbered SECTIONS to the bill and renumber subsequent SECTIONS of the bill accordingly:

SECTION ____.  Section 12A.001(b), Education Code, is amended to read as follows:

(b)  A school district is eligible for designation as a district of innovation only if the district's most recent overall performance rating under Section 39.054 is exemplary, recognized, or acceptable as reflected by an overall [reflects at least acceptable] performance rating of A, B, or C.

SECTION ____.  Section 12A.001(b), Education Code, as amended by this Act, applies only to a school district designated as a district of innovation on or after the effective date of this Act.

SECTION ____.  Subchapter E, Chapter 39, Education Code, is amended by adding Section 39.101 to read as follows: