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  H.B. No. 22
 
 
 
 
AN ACT
  relating to public school accountability.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 11.252(a), Education Code, is amended to
  read as follows:
         (a)  Each school district shall have a district improvement
  plan that is developed, evaluated, and revised annually, in
  accordance with district policy, by the superintendent with the
  assistance of the district-level committee established under
  Section 11.251. The purpose of the district improvement plan is to
  guide district and campus staff in the improvement of student
  performance for all student groups in order to attain state
  standards in respect to the achievement indicators adopted under
  Section 39.053(c) [Sections 39.053(c)(1)-(4)]. The district
  improvement plan must include provisions for:
               (1)  a comprehensive needs assessment addressing
  district student performance on the achievement indicators, and
  other appropriate measures of performance, that are disaggregated
  by all student groups served by the district, including categories
  of ethnicity, socioeconomic status, sex, and populations served by
  special programs, including students in special education programs
  under Subchapter A, Chapter 29;
               (2)  measurable district performance objectives for
  all appropriate achievement indicators for all student
  populations, including students in special education programs
  under Subchapter A, Chapter 29, and other measures of student
  performance that may be identified through the comprehensive needs
  assessment;
               (3)  strategies for improvement of student performance
  that include:
                     (A)  instructional methods for addressing the
  needs of student groups not achieving their full potential;
                     (B)  methods for addressing the needs of students
  for special programs, including:
                           (i)  suicide prevention programs, in
  accordance with Subchapter O-1, Chapter 161, Health and Safety
  Code, which includes a parental or guardian notification procedure;
                           (ii)  conflict resolution programs;
                           (iii)  violence prevention programs; and
                           (iv)  dyslexia treatment programs;
                     (C)  dropout reduction;
                     (D)  integration of technology in instructional
  and administrative programs;
                     (E)  discipline management;
                     (F)  staff development for professional staff of
  the district;
                     (G)  career education to assist students in
  developing the knowledge, skills, and competencies necessary for a
  broad range of career opportunities; and
                     (H)  accelerated education;
               (4)  strategies for providing to middle school, junior
  high school, and high school students, those students' teachers and
  school counselors, and those students' parents information about:
                     (A)  higher education admissions and financial
  aid opportunities;
                     (B)  the TEXAS grant program and the Teach for
  Texas grant program established under Chapter 56;
                     (C)  the need for students to make informed
  curriculum choices to be prepared for success beyond high school;
  and
                     (D)  sources of information on higher education
  admissions and financial aid;
               (5)  resources needed to implement identified
  strategies;
               (6)  staff responsible for ensuring the accomplishment
  of each strategy;
               (7)  timelines for ongoing monitoring of the
  implementation of each improvement strategy;
               (8)  formative evaluation criteria for determining
  periodically whether strategies are resulting in intended
  improvement of student performance; and
               (9)  the policy under Section 38.0041 addressing sexual
  abuse and other maltreatment of children.
         SECTION 2.  Section 11.253(c), Education Code, is amended to
  read as follows:
         (c)  Each school year, the principal of each school campus,
  with the assistance of the campus-level committee, shall develop,
  review, and revise the campus improvement plan for the purpose of
  improving student performance for all student populations,
  including students in special education programs under Subchapter
  A, Chapter 29, with respect to the achievement indicators adopted
  under Section 39.053(c) [Sections 39.053(c)(1)-(4)] and any other
  appropriate performance measures for special needs populations.
         SECTION 3.  Section 12.1013(c), Education Code, is amended
  to read as follows:
         (c)  The report must include the performance of each public
  school in each class described by Subsection (b) as measured by the
  achievement indicators adopted under Section 39.053(c) [Sections
  39.053(c)(1)-(4)] and student attrition rates.
         SECTION 4.  Section 29.062(a), Education Code, is amended to
  read as follows:
         (a)  The legislature recognizes that compliance with this
  subchapter is an imperative public necessity. Therefore, in
  accordance with the policy of the state, the agency shall evaluate
  the effectiveness of programs under this subchapter based on the
  achievement indicators adopted under Section 39.053(c) [Sections
  39.053(c)(1)-(4)], including the results of assessment
  instruments. The agency may combine evaluations under this section
  with federal accountability measures concerning students of
  limited English proficiency.
         SECTION 5.  Section 29.202(a), Education Code, is amended to
  read as follows:
         (a)  A student is eligible to receive a public education
  grant or to attend another public school in the district in which
  the student resides under this subchapter if the student is
  assigned to attend a public school campus assigned an unacceptable
  performance rating that is made publicly available under Section
  39.054 for:
               (1)  the student achievement domain under Section
  39.053(c)(1) [at which 50 percent or more of the students did not
  perform satisfactorily on an assessment instrument administered
  under Section 39.023(a) or (c) in any two of the preceding three
  years]; and [or]
               (2)  the school progress domain under Section
  39.053(c)(2) [that, at any time in the preceding three years,
  failed to satisfy any standard under Section 39.054(e)].
         SECTION 6.  Chapter 39, Education Code, is amended by adding
  Subchapter A to read as follows:
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 39.001.  RULES. (a) The commissioner shall adopt rules
  as necessary to administer this chapter.
         (b)  In adopting a rule under this chapter, the commissioner
  shall solicit input statewide from persons who would likely be
  affected by the proposed rule, including school district boards of
  trustees, administrators and teachers employed by school
  districts, parents of students enrolled in school districts, and
  other interested stakeholders.
         Sec. 39.002.  ADVISORY COMMITTEE. An advisory committee
  appointed under this chapter is not subject to Chapter 2110,
  Government Code.
         SECTION 7.  Section 39.052(b), Education Code, is amended to
  read as follows:
         (b)  In determining the accreditation status of a school
  district, the commissioner:
               (1)  shall evaluate and consider:
                     (A)  performance on achievement indicators
  described by Section 39.053 [39.053(c)]; and
                     (B)  performance under the financial
  accountability rating system developed under Subchapter D; and
               (2)  may evaluate and consider:
                     (A)  the district's compliance with statutory
  requirements and requirements imposed by rule of the commissioner
  or State Board of Education under specific statutory authority that
  relate to:
                           (i)  reporting data through the Public
  Education Information Management System (PEIMS) or other reports
  required by state or federal law or court order;
                           (ii)  the high school graduation
  requirements under Section 28.025; or
                           (iii)  an item listed under Sections
  7.056(e)(3)(C)-(I) that applies to the district;
                     (B)  the effectiveness of the district's programs
  for special populations; and
                     (C)  the effectiveness of the district's career
  and technology program.
         SECTION 8.  Section 39.053, Education Code, is amended by
  amending Subsections (a), (a-1), (b), (c), (d-1), (f), (g), (g-1),
  (g-2), and (i) and adding Subsections (c-3) and (e) to read as
  follows:
         (a)  The commissioner shall adopt a set of indicators of the
  quality of learning and achievement, including the indicators under
  Subsection (c). The commissioner periodically [biennially] shall
  review the indicators for the consideration of appropriate
  revisions.
         (a-1)  The indicators adopted by the commissioner under
  Subsection (a)[, including the indicators identified under
  Subsection (c),] must measure and evaluate school districts and
  campuses with respect to:
               (1)  improving student preparedness for success in:
                     (A)  subsequent grade levels; and
                     (B)  entering the workforce, the military, or
  postsecondary education;
               (2)  reducing, with the goal of eliminating, student
  academic achievement differentials among students from different
  racial and ethnic groups and socioeconomic backgrounds; and
               (3)  informing parents and the community regarding
  campus and district performance [in the domains described by
  Subsection (c) and, for the domain described by Subsection (c)(5),
  in accordance with local priorities and preferences].
         (b)  Performance on the achievement indicators adopted under
  Subsection (c) [Subsections (c)(1)-(4)] shall be compared to
  state-established standards. The indicators must be based on
  information that is disaggregated by race, ethnicity, and
  socioeconomic status.
         (c)  School districts and campuses must be evaluated based on
  three [five] domains of indicators of achievement adopted under
  this section that include:
               (1)  in the student achievement [first] domain,
  indicators of student achievement that must include [the results
  of]:
                     (A)  for evaluating the performance of districts
  and campuses generally:
                           (i)  an indicator that accounts for the
  results of assessment instruments required under Sections
  39.023(a), (c), and (l), as applicable for the district and campus,
  including the results of assessment instruments required for
  graduation retaken by a student, aggregated across grade levels by
  subject area, including:
                                 (a) [(i)]  for the performance
  standard determined by the commissioner under Section 39.0241(a),
  the percentage of students who performed satisfactorily on the
  assessment instruments, aggregated across grade levels by subject
  area; and
                                 (b) [(ii)]  for the college readiness
  performance standard as determined under Section 39.0241, the
  percentage of students who performed satisfactorily on the
  assessment instruments, aggregated across grade levels by subject
  area; and
                           (ii) [(B)]  an indicator that accounts for
  the results of assessment instruments required under Section
  39.023(b), as applicable for the district and campus, [aggregated
  across grade levels by subject area,] including the percentage of
  students who performed satisfactorily on the assessment
  instruments, as determined by the performance standard adopted by
  the agency, aggregated across grade levels by subject area; and
                     (B)  for evaluating the performance of high school
  campuses and districts that include high school campuses,
  indicators that account for:
                           (i)  students who satisfy the Texas Success
  Initiative (TSI) college readiness benchmarks prescribed by the
  Texas Higher Education Coordinating Board under Section 51.3062(f)
  on an assessment instrument in reading or mathematics designated by
  the Texas Higher Education Coordinating Board under Section
  51.3062(c);
                           (ii)  students who satisfy relevant
  performance standards on advanced placement tests or similar
  assessments;
                           (iii)  students who earn dual course credits
  in the dual credit courses;
                           (iv)  students who enlist in the armed
  forces of the United States;
                           (v)  students who earn industry
  certifications;
                           (vi)  students admitted into postsecondary
  industry certification programs that require as a prerequisite for
  entrance successful performance at the secondary level;
                           (vii)  students whose successful completion
  of a course or courses under Section 28.014 indicates the student's
  preparation to enroll and succeed, without remediation, in an
  entry-level general education course for a baccalaureate degree or
  associate degree;
                           (viii)  students who successfully met
  standards on a composite of indicators that through research
  indicates the student's preparation to enroll and succeed, without
  remediation, in an entry-level general education course for a
  baccalaureate degree or associate degree;
                           (ix)  high school graduation rates, computed
  in accordance with standards and definitions adopted in compliance
  with the Every Student Succeeds Act (20 U.S.C. Section 6301 et seq.)
  subject to the exclusions provided by Subsections (g), (g-1),
  (g-2), and (g-3);
                           (x)  students who successfully completed an
  OnRamps dual enrollment course; and
                           (xi)  students who are awarded an
  associate's degree;
               (2)  in the school progress [second] domain, indicators
  for effectiveness in promoting student learning, which must
  include:
                     (A)  for assessment instruments, including
  assessment instruments under Subdivisions (1)(A)(i) and (ii)
  [under Subdivision (1)(A):
                           [(i)     for the performance standard
  determined by the commissioner under Section 39.0241(a)], the
  percentage of students who met the standard for [annual]
  improvement [on the assessment instruments], as determined by the
  commissioner [by rule or by the method for measuring annual
  improvement under Section 39.034, aggregated across grade levels by
  subject area; and
                           [(ii)     for the college readiness performance
  standard as determined under Section 39.0241, the percentage of
  students who met the standard for annual improvement on the
  assessment instruments, as determined by the commissioner by rule
  or by the method for measuring annual improvement under Section
  39.034, aggregated across grade levels by subject area]; and
                     (B)  for evaluating relative performance, the
  performance of districts and campuses compared to similar districts
  or campuses [for assessment instruments under Subdivision (1)(B),
  the percentage of students who met the standard for annual
  improvement on the assessment instruments, as determined by the
  commissioner by rule or by the method for measuring annual
  improvement under Section 39.034, aggregated across grade levels by
  subject area;
               [(3)     in the third domain, the student academic
  achievement differentials among students from different racial and
  ethnic groups and socioeconomic backgrounds;
               [(4)  in the fourth domain:
                     [(A)     for evaluating the performance of high
  school campuses and districts that include high school campuses:
                           [(i)     dropout rates, including dropout rates
  and district completion rates for grade levels 9 through 12,
  computed in accordance with standards and definitions adopted by
  the National Center for Education Statistics of the United States
  Department of Education;
                           [(ii)     high school graduation rates,
  computed in accordance with standards and definitions adopted in
  compliance with the No Child Left Behind Act of 2001 (20 U.S.C.
  Section 6301 et seq.);
                           [(iii)     the percentage of students who
  successfully completed the curriculum requirements for the
  distinguished level of achievement under the foundation high school
  program;
                           [(iv)     the percentage of students who
  successfully completed the curriculum requirements for an
  endorsement under Section 28.025(c-1);
                           [(v)     the percentage of students who
  completed a coherent sequence of career and technical courses;
                           [(vi)     the percentage of students who
  satisfy the Texas Success Initiative (TSI) college readiness
  benchmarks prescribed by the Texas Higher Education Coordinating
  Board under Section 51.3062(f) on an assessment instrument in
  reading, writing, or mathematics designated by the Texas Higher
  Education Coordinating Board under Section 51.3062(c);
                           [(vii)     the percentage of students who earn
  at least 12 hours of postsecondary credit required for the
  foundation high school program under Section 28.025 or to earn an
  endorsement under Section 28.025(c-1);
                           [(viii)     the percentage of students who have
  completed an advanced placement course;
                           [(ix)     the percentage of students who enlist
  in the armed forces of the United States; and
                           [(x)     the percentage of students who earn an
  industry certification;
                     [(B)     for evaluating the performance of middle and
  junior high school and elementary school campuses and districts
  that include those campuses:
                           [(i)  student attendance; and
                           [(ii)     for middle and junior high school
  campuses:
                                 [(a)     dropout rates, computed in the
  manner described by Paragraph (A)(i); and
                                 
                                 [(b)     the percentage of students in
  grades seven and eight who receive instruction in preparing for
  high school, college, and a career that includes information
  regarding the creation of a high school personal graduation plan
  under Section 28.02121, the distinguished level of achievement
  described by Section 28.025(b-15), each endorsement described by
  Section 28.025(c-1), college readiness standards, and potential
  career choices and the education needed to enter those careers; and
                     [(C)     any additional indicators of student
  achievement not associated with performance on standardized
  assessment instruments determined appropriate for consideration by
  the commissioner in consultation with educators, parents, business
  and industry representatives, and employers]; and
               (3) [(5)]  in the closing the gaps [fifth] domain, the
  use of disaggregated data to demonstrate the differentials among
  students from different racial and ethnic groups, socioeconomic
  backgrounds, and other factors, including:
                     (A)  students formerly receiving special
  education services;
                     (B)  students continuously enrolled; and
                     (C)  students who are mobile [three programs or
  specific categories of performance related to community and student
  engagement locally selected and evaluated as provided by Section
  39.0546].
         (c-3)  Any standard for improvement determined by the
  commissioner as described by Subsection (c)(2)(A) must allow for
  appropriately crediting a student for growth if the student
  performs at the highest achievement standard in the previous and
  current school year.
         (d-1)  In aggregating results of assessment instruments
  across grade levels by subject in accordance with Subsection
  (c)(1)(A)(i) [Subsection (c)(1)], the performance of a student
  enrolled below the high school level on an assessment instrument
  required under Section 39.023(c) is included with results relating
  to other students enrolled at the same grade level.
         (e)  For purposes of Subsection (c)(3)(A), a student
  formerly receiving special education services means a student whose
  enrollment information:
               (1)  for the preceding school year, as reported through
  the Public Education Information Management System (PEIMS),
  indicates the student was enrolled at the campus and was
  participating in a special education program; and
               (2)  for the current school year, as reported through
  the Public Education Information Management System (PEIMS) and as
  reported on assessment instruments administered to the student
  under Section 39.023, indicates the student is enrolled at the
  campus and is not participating in a special education program.
         (f)  Annually, the commissioner shall define the state
  standard for the current school year for each achievement indicator
  adopted under this section. In consultation with educators,
  parents, and business and industry representatives, as necessary,
  the commissioner shall establish and modify standards to
  continuously improve student performance to achieve the goals of
  eliminating achievement gaps based on race, ethnicity, and
  socioeconomic status and to ensure this state is a national leader
  in preparing students for postsecondary success [described by
  Subsections (c)(1)-(4) and shall project the state standards for
  each indicator for the following two school years. The
  commissioner shall periodically raise the state standards for the
  college readiness achievement indicator described by Subsection
  (c)(1)(A)(ii) for accreditation as necessary to reach the goals of
  achieving, by not later than the 2019-2020 school year:
               [(1)     student performance in this state, disaggregated
  by race, ethnicity, and socioeconomic status, that ranks nationally
  in the top 10 states in terms of college readiness; and
               [(2)     student performance with no significant
  achievement gaps by race, ethnicity, and socioeconomic status].
         (g)  In computing [defining the required state standard for
  the] dropout and completion rates such as high school graduation
  rates under Subsection (c)(1)(B)(ix) [rate indicator described by
  Subsections (c)(4)(A)(i) and (B)(ii)(a)], the commissioner may not
  consider as a dropout a student whose failure to attend school
  results from:
               (1)  the student's expulsion under Section 37.007; and
               (2)  as applicable:
                     (A)  adjudication as having engaged in delinquent
  conduct or conduct indicating a need for supervision, as defined by
  Section 51.03, Family Code; or
                     (B)  conviction of and sentencing for an offense
  under the Penal Code.
         (g-1)  In computing dropout and completion rates such as high
  school graduation rates under Subsection (c)(1)(B)(ix)
  [Subsections (c)(4)(A)(i) and (B)(ii)(a)], the commissioner shall
  exclude:
               (1)  students who are ordered by a court to attend a
  high school equivalency certificate program but who have not yet
  earned a high school equivalency certificate;
               (2)  students who were previously reported to the state
  as dropouts, including a student who is reported as a dropout,
  reenrolls, and drops out again, regardless of the number of times of
  reenrollment and dropping out;
               (3)  students in attendance who are not in membership
  for purposes of average daily attendance;
               (4)  students whose initial enrollment in a school in
  the United States in grades 7 through 12 was as an unschooled asylee
  [refugees] or refugee [asylees] as defined by Section 39.027(a-1);
               (5)  students who are in the district exclusively as a
  function of having been detained at a county detention facility but
  are otherwise not students of the district in which the facility is
  located; and
               (6)  students who are incarcerated in state jails and
  federal penitentiaries as adults and as persons certified to stand
  trial as adults.
         (g-2)  In computing completion rates such as high school
  graduation rates under Subsection (c)(1)(B)(ix) [(c)(2)], the
  commissioner shall exclude students who:
               (1)  are at least 18 years of age as of September 1 of
  the school year as reported for the fall semester Public Education
  Information Management System (PEIMS) submission and have
  satisfied the credit requirements for high school graduation;
               (2)  have not completed their individualized education
  program under 19 T.A.C. Section 89.1070(b)(2) and the Individuals
  with Disabilities Education Act (20 U.S.C. Section 1400 et seq.);
  and
               (3)  are enrolled and receiving individualized
  education program services.
         (i)  Each school district shall submit the data required for
  the indicators adopted under this section to the [The] commissioner
  [by rule shall adopt accountability measures to be used in
  assessing the progress of students who have failed to perform
  satisfactorily as determined by the commissioner under Section
  39.0241(a) or under the college readiness standard as determined
  under Section 39.0241 in the preceding school year on an assessment
  instrument required under Section 39.023(a), (c), or (l)].
         SECTION 9.  Subchapter C, Chapter 39, Education Code, is
  amended by adding Section 39.0533 to read as follows:
         Sec. 39.0533.  EXTRACURRICULAR AND COCURRICULAR STUDENT
  ACTIVITY INDICATOR. (a) The commissioner shall study the
  feasibility of incorporating for evaluating school district and
  campus performance under this subchapter an indicator that accounts
  for extracurricular and cocurricular student activity. If the
  commissioner determines that an extracurricular and cocurricular
  student activity indicator is appropriate, the commissioner may
  adopt the indicator.
         (b)  To determine the feasibility of adopting an indicator
  under this section, the commissioner may require a school district
  or campus to report requested information relating to
  extracurricular and cocurricular student activity.
         (c)  The commissioner may establish an advisory committee to
  assist in determining the feasibility of incorporating an
  extracurricular and cocurricular student activity indicator for
  evaluating school district and campus performance.
         (d)  Not later than December 1, 2022, the commissioner shall
  report to the legislature on the feasibility of incorporating an
  extracurricular and cocurricular student activity indicator,
  unless the commissioner adopts an indicator under this section
  before that date.
         (e)  This section expires September 1, 2023.
         SECTION 10.  Sections 39.054(a), (a-1), (a-2), (a-3), and
  (e), Education Code, as effective on 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 domain under Section 39.053(c) [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. If a school district has been approved under
  Section 39.0544 to assign campus performance ratings and the
  commissioner has not assigned a campus an overall performance
  rating of D or F, the commissioner shall assign the campus an
  overall performance rating based on the school district assigned
  performance rating under Section 39.0544. 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 performance or performance
  that needs improvement.
         (a-1)  For purposes of assigning an overall performance
  rating for a district or campus under Subsection (a), the
  commissioner shall:
               (1)  consider either the district's or campus's
  performance rating under the student achievement domain under
  Section 39.053(c)(1) or the school progress domain under Section
  39.053(c)(2), whichever performance rating is higher, unless the
  district or campus received a performance rating of F in either
  domain, in which case the district or campus may not be assigned a
  performance rating higher than a B for the composite for the two
  domains; and
               (2)  attribute not less than 30 percent of the
  performance rating to the closing the gaps domain under Section
  39.053(c)(3) [an overall performance rating under Subsection (a),
  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-2)  The commissioner by rule may [shall] adopt procedures
  to ensure that a repeated performance rating of D or F or
  unacceptable in one domain, particularly performance that is not
  significantly improving, is reflected in the overall performance
  rating of a district or campus under this section or a campus under
  Section 39.0544 and is not compensated for by a performance rating
  of A, B, or C in another domain.
         (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.]
         (e)  Each annual performance review under this section shall
  include an analysis of the achievement indicators adopted under
  Section 39.053, including Subsection (c) of that section, [Sections
  39.053(c)(1)-(4)] to determine school district and campus
  performance in relation to standards established for each
  indicator.
         SECTION 11.  Section 39.054, Education Code, is amended by
  adding Subsections (a-4) and (b) to read as follows:
         (a-4)  For performance ratings issued in August 2018 for the
  2017-2018 school year for campus performance, the commissioner
  shall issue only a rating of improvement required or met standard,
  as applicable, to a campus. This subsection expires January 1,
  2019.
         (b)  For purposes of assigning school districts and campuses
  an overall and a domain performance rating under Subsection (a),
  the commissioner shall ensure that the method used to evaluate
  performance is implemented in a manner that provides the
  mathematical possibility that all districts and campuses receive an
  A rating.
         SECTION 12.  Section 39.054(f), Education Code, as effective
  September 1, 2017, is transferred to Section 39.053, Education
  Code, redesignated as Section 39.053(g-3), Education Code, and
  amended to read as follows:
         (g-3) [(f)]  In the computation of dropout and completion
  rates such as high school graduation rates under Subsection
  (c)(1)(B)(ix) [Sections 39.053(c)(4)(A)(i) and (B)(ii)(a)], a
  student who is released from a juvenile pre-adjudication secure
  detention facility or juvenile post-adjudication secure
  correctional facility and fails to enroll in school or a student who
  leaves a residential treatment center after receiving treatment for
  fewer than 85 days and fails to enroll in school may not be
  considered to have dropped out from the school district or campus
  serving the facility or center unless that district or campus is the
  one to which the student is regularly assigned. The agency may not
  limit an appeal relating to dropout computations under this
  subsection.
         SECTION 13.  Subchapter C, Chapter 39, Education Code, is
  amended by adding Section 39.0541 to read as follows:
         Sec. 39.0541.  ADOPTION OF INDICATORS AND STANDARDS. The
  commissioner may adopt indicators and standards under this
  subchapter at any time during a school year before the evaluation of
  a school district or campus.
         SECTION 14.  Subchapter C, Chapter 39, Education Code, is
  amended by adding Sections 39.0542 and 39.0544 to read as follows:
         Sec. 39.0542.  EXPLANATORY MATERIALS FOR ACCOUNTABILITY
  RATING SYSTEM. (a) Each school year, the commissioner shall
  provide each school district a document in a simple, accessible
  format that explains the accountability performance measures,
  methods, and procedures that will be applied for that school year in
  assigning each school district and campus a performance rating
  under Section 39.054.
         (b)  The document provided under Subsection (a) must be
  provided in a format that a school district is able to easily
  distribute to parents of students enrolled in the district and
  other interested members of the public.
         (c)  The commissioner, in collaboration with interested
  stakeholders, shall develop standardized language for each domain
  that does not exceed 250 words and that clearly describes the annual
  status of a district and campus relating to district and campus
  performance on the indicators used for that domain to determine the
  letter performance rating assigned to a district and campus.
         Sec. 39.0544.  LOCAL ACCOUNTABILITY SYSTEM. (a) The
  commissioner shall adopt rules regarding the assignment of campus
  performance ratings by school districts and open-enrollment
  charter schools. The rules:
               (1)  must require a district or school, in assigning an
  overall performance rating for a campus, to incorporate:
                     (A)  domain performance ratings assigned by the
  commissioner under Section 39.054; and
                     (B)  performance ratings based on locally
  developed domains or sets of accountability measures;
               (2)  may permit a district or school to assign weights
  to each domain or set of accountability measures described in
  Subdivision (1), as determined by the district or school, provided
  that the domains specified in Subdivision (1)(A) must in the
  aggregate account for at least 50 percent of the overall
  performance rating;
               (3)  must require that each locally developed domain or
  set of accountability measures:
                     (A)  contains levels of performance that allow for
  differentiation, with assigned standards for achieving the
  differentiated levels;
                     (B)  provides for the assignment of a letter grade
  of A, B, C, D, or F; and
                     (C)  meets standards for reliability and
  validity;  
               (4)  must require that calculations for overall
  performance ratings and each locally developed domain or set of
  accountability measures be capable of being audited by a third
  party;
               (5)  must require that a district or school produce a
  campus score card that may be displayed on the agency's website; and
               (6)  must require that a district or school develop and
  make available to the public an explanation of the methodology used
  to assign performance ratings under this section.
         (b)  The commissioner shall develop a process to approve a
  request by a school district or open-enrollment charter school to
  assign campus performance ratings in accordance with this section.
  Under that process, a district or school must obtain approval of a
  local accountability plan submitted by the district or school to
  the agency. A plan may be approved only if:
               (1)  after review, the agency determines the plan meets
  the minimum requirements under this section and agency rule;
               (2)  at the commissioner's discretion, an audit
  conducted by the agency verifies the calculations included in the
  plan; and
               (3)  subject to Subsection (d), a review panel
  appointed under Subsection (c) approves the plan.
         (c)  The commissioner shall appoint a review panel for
  purposes of Subsection (b)(3) that includes a majority of members
  who are superintendents or members of the board of trustees or
  governing body of school districts or open-enrollment charter
  schools with approved local accountability plans.
         (d)  The requirement under Subsection (b)(3) applies only
  after performance ratings are issued in August 2019 and only if at
  least 10 school districts or open-enrollment charter schools have
  obtained approval of locally developed accountability plans. 
         (e)  A school district or open-enrollment charter school
  authorized under this section to assign campus performance ratings
  shall evaluate the performance of each campus as provided by this
  section and assign each campus a performance rating of A, B, C, D,
  or F for overall performance and for each locally developed domain
  or set of accountability measures. Not later than a date
  established by the commissioner, the district or school shall:
               (1)  report the performance ratings to the agency; and
               (2)  make the performance ratings available to the
  public as provided by commissioner rule.
         SECTION 15.  Sections 39.0548(b), (c), and (d), Education
  Code, are amended to read as follows:
         (b)  Notwithstanding Section 39.053(c)(1)(B)(ix)
  [39.053(c)(4)(A)(i)], the commissioner shall use the alternative
  completion rate under this subsection to determine the graduation
  [dropout] rate indicator under Section 39.053(c)(1)(B)(ix)
  [39.053(c)(4)(A)(i)] for a dropout recovery school. The
  alternative completion rate shall be the ratio of the total number
  of students who graduate, continue attending school into the next
  academic year, or receive a high school equivalency certificate to
  the total number of students in the longitudinal cohort of
  students.
         (c)  Notwithstanding Section 39.053(c)(1)(B)(ix)
  [39.053(c)(4)(A)(i)], in determining the performance rating under
  Section 39.054 of a dropout recovery school, the commissioner shall
  include any student described by Section 39.053(g-1) who graduates
  or receives a high school equivalency certificate.
         (d)  Notwithstanding Section 39.053(c), for purposes of
  evaluating a dropout recovery school under the accountability
  procedures adopted by the commissioner to determine the performance
  rating of the school under Section 39.054,[:
               [(1)]  only the best result from the primary
  administration or any retake of an assessment instrument
  administered to a student in the school year evaluated may be
  considered[; and
               [(2)     only a student enrolled continuously for at least
  90 days during the school year evaluated may be considered].
         SECTION 16.  Section 39.055, Education Code, is amended to
  read as follows:
         Sec. 39.055.  STUDENT ORDERED BY A JUVENILE COURT OR STUDENT
  IN RESIDENTIAL FACILITY NOT CONSIDERED FOR ACCOUNTABILITY
  PURPOSES. Notwithstanding any other provision of this code except
  to the extent otherwise provided under Section 39.053(g-3)
  [39.054(f)], for purposes of determining the performance of a
  school district, campus, or open-enrollment charter school under
  this chapter, a student ordered by a juvenile court into a
  residential program or facility operated by or under contract with
  the Texas Juvenile Justice Department, a juvenile board, or any
  other governmental entity or any student who is receiving treatment
  in a residential facility is not considered to be a student of the
  school district in which the program or facility is physically
  located or of an open-enrollment charter school, as
  applicable.  The performance of such a student on an assessment
  instrument or other achievement indicator adopted under Section
  39.053 or reporting indicator adopted under Section 39.301 shall be
  determined, reported, and considered separately from the
  performance of students attending a school of the district in which
  the program or facility is physically located or an open-enrollment
  charter school, as applicable.
         SECTION 17.  Subchapter E, Chapter 39, Education Code, is
  amended by adding Section 39.101 to read as follows:
         Sec. 39.101.  NEEDS IMPROVEMENT RATING. (a)
  Notwithstanding any other law, if a school district or campus is
  assigned an overall or domain performance rating of D:
               (1)  the commissioner shall order the district or
  campus to develop and implement a targeted improvement plan
  approved by the board of trustees of the district; and
               (2)  the interventions and sanctions provided by this
  subchapter based on failure to satisfy performance standards under
  Section 39.054(e) apply to the district or campus only as provided
  by this section.
         (b)  The interventions and sanctions provided by this
  subchapter based on failure to satisfy performance standards under
  Section 39.054(e) apply to a district or campus ordered to develop
  and implement a targeted improvement plan under Subsection (a) only
  if the district or campus is assigned:
               (1)  an overall or domain performance rating of F; or
               (2)  an overall performance rating of D as provided by
  Subsection (c).
         (c)  If a school district or campus is assigned an overall
  performance rating of D for a school year after the district or
  campus is ordered to develop and implement a targeted improvement
  plan under Subsection (a), the commissioner shall implement
  interventions and sanctions that apply to an unacceptable campus
  and those interventions and sanctions shall continue for each
  consecutive school year thereafter in which the campus is assigned
  an overall performance rating of D. 
         (d)  The commissioner shall adopt rules as necessary to
  implement this section.
         SECTION 18.  Section 39.301(b), Education Code, is amended
  to read as follows:
         (b)  Performance on the indicators adopted under this
  section shall be evaluated in the same manner provided for
  evaluation of the achievement indicators under Section 39.053(c)
  [Sections 39.053(c)(1)-(4)].
         SECTION 19.  The following provisions of the Education Code
  are repealed:
               (1)  Section 39.054(c), as effective September 1, 2017;
  and
               (2)  Sections 39.0545 and 39.0546.
         SECTION 20.  If H.B. 1500, 85th Legislature, Regular
  Session, 2017, becomes law, that law has no effect.
         SECTION 21.  Not later than January 1, 2019, the
  commissioner of education shall submit a report to the standing
  committees of the legislature having primary jurisdiction over
  primary and secondary education that provides for a preliminary
  evaluation of campuses under Section 39.054, Education Code, as
  amended by this Act. The report must include:
               (1)  the overall and domain performance rating each
  campus would have received under Section 39.054, Education Code, as
  amended by this Act, for the 2017-2018 school year if the indicators
  adopted by the commissioner of education under Section 39.053,
  Education Code, as amended by this Act, existed during the
  2017-2018 school year; and
               (2)  the correlation between each designated letter
  performance rating the campus would have received and the
  percentage of students at each campus:
                     (A)  qualifying for the free or reduced-price
  breakfast under the national school breakfast programs provided for
  by the Child Nutrition Act of 1966 (42 U.S.C. Section 1773);
                     (B)  that are students of limited English
  proficiency as defined by Section 29.052, Education Code; and
                     (C)  disaggregated by race, ethnicity, and
  socioeconomic status used to assign ratings in the system.
         SECTION 22.  This Act applies beginning with the 2017-2018
  school year.
         SECTION 23.  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, 2017.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 22 was passed by the House on May 4,
  2017, by the following vote:  Yeas 146, Nays 0, 2 present, not
  voting; that the House refused to concur in Senate amendments to
  H.B. No. 22 on May 26, 2017, 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. 22 on May 28, 2017, by the following vote:  Yeas 140,
  Nays 0, 1 present, not voting, and that the House adopted H.C.R. No.
  165 authorizing certain corrections in H.B. No. 22 on May 29, 2017,
  by the following vote: Yeas 147, Nays 0, 1 present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.B. No. 22 was passed by the Senate, with
  amendments, on May 24, 2017, by the following vote:  Yeas 28, Nays
  3; 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.
  22 on May 28, 2017, by the following vote:  Yeas 31, Nays 0, and
  that the Senate adopted H.C.R. No. 165 authorizing certain
  corrections in H.B. No. 22 on May 29, 2017, by the following vote:
  Yeas 31, Nays 0.
 
  ______________________________
  Secretary of the Senate   
  APPROVED: __________________
                  Date       
   
           __________________
                Governor