87R8291 TSS-D
 
  By: Bettencourt S.B. No. 1365
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to public school organization, accountability, and fiscal
  management.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
  ARTICLE 1. STATE AND LOCAL ORGANIZATION AND GOVERNANCE
         SECTION 1.01.  Section 7.055, Education Code, is amended by
  adding Subsection (d) to read as follows:
         (d)  Notwithstanding any other law, the commissioner's power
  to delegate ministerial and executive functions under Subsection
  (b)(5) is a valid delegation of authority. 
         SECTION 1.02.  Section 11.151(b), Education Code, is amended
  to read as follows:
         (b)  Except as provided by Sections 39A.201 and 39A.202, the
  [The] trustees as a body corporate have the exclusive power and duty
  to govern and oversee the management of the public schools of the
  district. All powers and duties not specifically delegated by
  statute to the agency or to the State Board of Education are
  reserved for the trustees, and the agency may not substitute its
  judgment for the lawful exercise of those powers and duties by the
  trustees.
         SECTION 1.03.  Section 11.1511(a), Education Code, is
  amended to read as follows:
         (a)  In addition to powers and duties under Section 11.151 or
  other law, the board of trustees of an independent school district
  has the powers and duties provided by Subsection (b), except as
  otherwise provided by Sections 39A.201 and 39A.202.
  ARTICLE 2. PUBLIC SCHOOL SYSTEM ACCOUNTABILITY
         SECTION 2.01.  Chapter 5, Education Code, is amended by
  adding Section 5.003 to read as follows:
         Sec. 5.003.  FINAL AND UNAPPEALABLE. In this title, if an
  order, decision, or determination is described as final and
  unappealable, no interlocutory or intermediate order, decision, or
  determination made or reached before the final order, decision, or
  determination may be appealed. 
         SECTION 2.02.  Sections 39.057 and 39.058, Education Code,
  are transferred to Subchapter A, Chapter 39, Education Code,
  redesignated as Sections 39.003 and 39.004, Education Code, and
  amended to read as follows:
         Sec. 39.003 [39.057].  SPECIAL [ACCREDITATION]
  INVESTIGATIONS. (a) The commissioner may authorize special
  [accreditation] investigations to be conducted:
               (1)  to determine if an academic program offered by a
  school district is providing students the quality education to
  which students are entitled under Title 1 and this title, including
  an investigation regarding:
                     (A)  the proportion of students in each
  demographic group participating in the program;
                     (B)  whether an excessive number of students are
  participating in a particular program or are being exempted from
  state requirements; or
                     (C)  whether all students have equitable access to
  the program, including advanced learning options [when excessive
  numbers of absences of students eligible to be tested on state
  assessment instruments are determined];
               (2)  [when excessive numbers of allowable exemptions
  from the required state assessment instruments are determined;
               [(3)]  in response to complaints submitted to the
  agency with respect to alleged violations of civil rights or other
  requirements imposed on the state by federal law or court order;
               (3)  regarding a [(4) in response to established
  compliance reviews of the] district's financial accounting
  practices and fiscal management;
               (4)  to determine whether a district is complying with
  state and federal [program] requirements;
               (5)  when extraordinary numbers of student placements
  in disciplinary alternative education programs, other than
  placements under Sections 37.006 and 37.007, are determined;
               (6)  in response to an allegation involving a conflict
  between members of the board of trustees or between the board and
  the district administration if it appears that the conflict
  involves a violation of a role or duty of the board members or the
  administration clearly defined by this code;
               (7)  [when excessive numbers of students in] regarding
  educational [special education] programs provided under
  [Subchapter A,] Chapter 29[, are assessed through assessment
  instruments developed or adopted under Section 39.023(b)];
               (8)  in response to an allegation regarding or an
  analysis using a statistical method result indicating a possible
  violation of an assessment instrument security procedure
  established under Section 39.0301, including for the purpose of
  investigating or auditing a school district under that section;
               (9)  [when a significant pattern of decreased academic
  performance has developed as a result of the promotion in the
  preceding two school years of students who did not perform
  satisfactorily as determined by the commissioner under Section
  39.0241(a) on assessment instruments administered under Section
  39.023(a), (c), or (l);
               [(10)  when excessive numbers of students eligible to
  enroll fail to complete an Algebra II course or any other advanced
  course as determined by the commissioner;
               [(11)]  when resource allocation practices as
  evaluated under Section 39.0821 indicate a potential for
  significant improvement in resource allocation;
               (10)  regarding [(12) when a disproportionate number of
  students of a particular demographic group is graduating with a
  particular endorsement under Section 28.025(c-1);
               [(13)  when an excessive number of students is
  graduating with a particular endorsement under Section
  28.025(c-1);
               [(14)  in response to a complaint submitted to the
  agency with respect to] alleged inaccurate data [that is] reported:
                     (A)  through the Public Education Information
  Management System (PEIMS);
                     (B)  [or] through other reports required by state
  or federal law or rule or court order and that is used by the agency
  to make a determination relating to public school accountability,
  including accreditation, under this chapter; or
                     (C)  to the agency, including a material
  misrepresentation made in the course of a special investigation
  under this section;
               (11) [(15)]  when a school district for any reason
  fails to produce, at the request of the agency, evidence or an
  investigation report, including an investigation report relating
  to an educator who is under investigation by the State Board for
  Educator Certification;
               (12)  regarding whether an improper use of public funds
  has occurred; or
               (13) [(16)]  as the commissioner otherwise determines
  necessary.
         (b)  If the agency's findings in an investigation under
  Subsection (a)(6) indicate that the board of trustees has observed
  a lawfully adopted policy that does not otherwise violate a law or
  rule, the agency may not substitute its judgment for that of the
  board.
         (c)  The commissioner may authorize special [accreditation]
  investigations to be conducted in response to repeated complaints
  submitted to the agency concerning imposition of excessive
  paperwork requirements on classroom teachers.
         (d)  Based on the results of a special [accreditation]
  investigation, the commissioner may:
               (1)  take any [appropriate] action under Chapter 39A,
  regardless of any requirements applicable to the action that are
  provided by that chapter;
               (2)  lower the school district's accreditation status
  or a district's or campus's accountability rating; or
               (3)  take action under both Subdivisions (1) and (2).
         (e)  At any time before issuing a report with the agency's
  final findings, the commissioner may defer taking an action under
  Subsection (d) until: 
               (1)  a person who is a third party, selected by the
  commissioner, has reviewed programs or other subjects of an
  investigation under this section and submitted a report identifying
  problems and proposing solutions;
               (2)  a district completes a corrective action plan
  developed by the commissioner; or 
               (3)  the completion of actions under both Subdivisions
  (1) and (2).
         (f)  Based on the results of an action taken under Subsection
  (e), the commissioner may decline to take the deferred action under
  Subsection (d) [Regardless of whether the commissioner lowers the
  school district's accreditation status or a district's or campus's
  performance rating under Subsection (d), the commissioner may take
  action under Section 39A.002 or 39A.051 if the commissioner
  determines that the action is necessary to improve any area of a
  district's or campus's performance, including the district's
  financial accounting practices].
         Sec. 39.004 [39.058].  CONDUCT OF SPECIAL [ACCREDITATION]
  INVESTIGATIONS. (a) The agency shall adopt written procedures for
  conducting special [accreditation] 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.
  Agency staff must be trained in the procedures and must follow the
  procedures in conducting the special [accreditation]
  investigation.
         (a-1)  If the agency determines that it is necessary to
  protect the welfare of the witness, the agency may classify the
  identity of a witness as confidential and not subject to disclosure
  to the district or under Chapter 552, Government Code.
         (b)  After completing a special [accreditation]
  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 the commissioner's designee [a designated hearing
  examiner].
         (c)  An informal review under this section is not a contested
  case for purposes of Chapter 2001, Government Code, and a
  determination or decision made by the agency under this section is
  final and unappealable.
         SECTION 2.03.  Section 39.054, Education Code, is amended by
  amending Subsections (a) and (b-1) and adding Subsections (a-4) and
  (a-5) to read as follows:
         (a)  Except as provided by Subsection (a-4), the [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). 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 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, C, or D or performance
  that is exemplary, recognized, or acceptable performance or
  performance that needs improvement.
         (a-4)  Notwithstanding any other law, the commissioner may
  assign a school district or campus an overall performance rating of
  "Not Rated" if the commissioner determines that the assignment of a
  performance rating of A, B, C, D, or F would be inappropriate
  because: 
               (1)  the district or campus is located in an area that
  is subject to a declaration of a state of disaster under Chapter
  418, Government Code, and due to the disaster, performance
  indicators for the district or school are difficult to measure or
  evaluate and would not accurately reflect quality of learning and
  achievement for the district or campus; or
               (2)  the district or campus has experienced breaches or
  other failures in data integrity to the extent that accurate
  analysis of data regarding performance indicators is not possible.
         (a-5)  Notwithstanding any other law, an overall performance
  rating of "Not Rated" is not included in calculating consecutive
  school years and is not considered a break in consecutive school
  years for purposes of Chapter 39A.
         (b-1)  Consideration of the effectiveness of district
  programs under Section 39.052(b)(2)(B) or (C):
               (1)  must:
                     (A)  be based on data collected through the Public
  Education Information Management System (PEIMS) for purposes of
  accountability under this chapter; and
                     (B)  include the results of assessments required
  under Section 39.023; and
               (2)  may be based on the results of a special
  [accreditation] investigation conducted under Section 39.003 
  [39.057].
         SECTION 2.04.  Sections 39A.006(a) and (b), Education Code,
  are amended to read as follows:
         (a)  This section applies:
               (1)  regardless of whether a school district has
  satisfied the accreditation criteria; and
               (2)  to a conservator or management team appointed
  under any provision of this title, regardless of the scope or any
  changes to the scope of the conservator's or team's oversight.
         (b)  If for two consecutive school years, including the
  current school year, a school district has had a conservator or
  management team assigned to the district or a district campus for
  any reason under this title, the commissioner may appoint a board of
  managers to exercise the powers and duties of the board of trustees
  of the district.
         SECTION 2.05.  Section 39A.102, Education Code, is amended
  by amending Subsection (b) and adding Subsection (b-1) to read as
  follows:
         (b)  Subject to Subsection (b-1), the [The] commissioner may
  appoint a monitor, conservator, management team, or board of
  managers to the school district to ensure and oversee
  district-level support to low-performing campuses and the
  implementation of the updated targeted improvement plan.
         (b-1)  The commissioner shall appoint a conservator to a
  school district under Subsection (b) unless and until:
               (1)  each campus in the district for which a campus
  turnaround plan has been ordered under Section 39A.101 receives an
  acceptable performance rating for the school year; or
               (2)  the commissioner determines a conservator is not
  necessary.
         SECTION 2.06.  The heading to Section 39A.110, Education
  Code, is amended to read as follows:
         Sec. 39A.110.  MODIFICATION OF [CHANGE IN] CAMPUS TURNAROUND
  PLAN [PERFORMANCE RATING].
         SECTION 2.07.  Section 39A.110, Education Code, is amended
  by adding Subsection (c) to read as follows:
         (c)  The commissioner may authorize modification of an
  approved campus turnaround plan if the commissioner determines that
  due to a change in circumstances occurring after the plan's
  approval under Section 39A.107, a modification of the plan is
  necessary to achieve the plan's objectives.
         SECTION 2.08.  Section 39A.111, Education Code, is amended
  to read as follows:
         Sec. 39A.111.  CONTINUED UNACCEPTABLE PERFORMANCE RATING.
  If a campus is considered to have an unacceptable performance
  rating for five [three] consecutive school years [after the campus
  is ordered to submit a campus turnaround plan under Section
  39A.101], the commissioner, subject to Section 39A.112, shall
  order:
               (1)  appointment of a board of managers to govern the
  school district as provided by Section 39A.202; or
               (2)  closure of the campus.
         SECTION 2.09.  Section 39A.201(a), Education Code, is
  amended to read as follows:
         (a)  Notwithstanding Section 11.151(b) or 11.1511(a) or any
  other provision of this code, a [A] board of managers may exercise
  all of the powers and duties assigned to a board of trustees of a
  school district by law, rule, or regulation.
         SECTION 2.10.  Section 39A.202(a), Education Code, is
  amended to read as follows:
         (a)  Notwithstanding Section 11.151(b) or 11.1511(a) or any
  other provision of this code, if [If] the commissioner appoints a
  board of managers to govern a school district:
               (1)  the powers of the board of trustees of the district
  are suspended for the period of the appointment; and
               (2)  the commissioner shall appoint a district
  superintendent.
         SECTION 2.11.  Section 39A.116, Education Code, is
  transferred to Subchapter Z, Chapter 39A, Education Code,
  redesignated as Section 39A.906, Education Code, and amended to
  read as follows:
         Sec. 39A.906 [39A.116].  COMMISSIONER AUTHORITY. A
  decision by the commissioner under Chapter 39 or this chapter
  [subchapter] is final and may not be appealed.
         SECTION 2.12.  (a) This section applies to a school district
  or open-enrollment charter school for which a board of managers has
  not been appointed under Section 39A.006, Education Code, and
  includes a campus that:
               (1)  has not received an acceptable performance rating
  since the 2010-2011 school year;
               (2)  has received more than five unacceptable
  performance ratings since the 2010-2011 school year; and
               (3)  has not been closed by the commissioner of
  education.
         (b)  Notwithstanding any other law, as soon as practicable
  after the effective date of this Act, the commissioner of education
  shall appoint:
               (1)  a conservator to oversee the operations of a
  school district or open-enrollment charter school described by
  Subsection (a) of this section; and
               (2)  a board of managers to exercise the powers and
  duties of the board of trustees or governing body of a district or
  school described by Subsection (a) of this section.
         (c)  On the effective date of the appointment made under
  Subsection (b)(1) of this section, the board of trustees or
  governing body of a school district or open-enrollment charter
  school described by Subsection (a) of this section may no longer
  exercise the power and duties of the board or body under Chapter 11
  or 12, Education Code.
         (d)  Once appointed under Subsection (b) of this section, the
  conservator and board of managers shall be subject to the
  provisions of Chapter 39A, Education Code.
         SECTION 2.13.  (a) Sections 39.003 and 39.004, Education
  Code, as redesignated and amended by this Act, apply to a special
  investigation authorized or initiated before, on, or after the
  effective date of this Act.
         (b)  Section 39.054, Education Code, as amended by this Act,
  applies to an overall performance rating of "Not Rated" assigned
  before, on, or after the effective date of this Act.
         (c)  Section 39A.006, Education Code, as amended by this Act,
  applies to a conservator or management team assigned to a school
  district before, on, or after the effective date of this Act.
         (d)  Section 39A.111, Education Code, as amended by this Act,
  applies to a school campus that has been assigned an unacceptable
  performance rating before, on, or after the effective date of this
  Act.
         (e)  Section 39A.906, Education Code, as redesignated and
  amended by this Act, applies to a decision made by the commissioner
  of education before, on, or after the effective date of this Act.
  ARTICLE 3. PUBLIC SCHOOL FISCAL MANAGEMENT
         SECTION 3.01.  Section 44.052(c), Education Code, is amended
  to read as follows:
         (c)  A trustee of a school district who votes to approve any
  expenditure of school funds in violation of a provision of this
  code, for a purpose for which those funds may not be spent, or in
  excess of the item or items appropriated in the adopted budget or a
  supplementary or amended budget commits an offense. An offense
  under this subsection is a Class C misdemeanor.
         SECTION 3.02.  Section 45.105, Education Code, is amended by
  amending Subsection (c) and adding Subsection (c-1) to read as
  follows:
         (c)  Local school funds from district taxes, tuition fees of
  students not entitled to a free education, other local sources, and
  state funds not designated for a specific purpose may be used for
  the purposes listed for state and county available funds and for
  purchasing appliances and supplies, paying insurance premiums,
  paying janitors and other employees, buying school sites, buying,
  building, repairing, and renting school buildings, including
  acquiring school buildings and sites by leasing through annual
  payments with an ultimate option to purchase, and, except as
  provided by Subsection (c-1), for other purposes necessary in the
  conduct of the public schools determined by the board of trustees.
  The accounts and vouchers for county districts must be approved by
  the county superintendent. If the state available school fund in
  any municipality or district is sufficient to maintain the schools
  in any year for at least eight months and leave a surplus, the
  surplus may be spent for the purposes listed in this subsection.
         (c-1)  Funds described by Subsection (c) may not be used to
  initiate or maintain any action or proceeding against the state or
  an agency or officer of the state arising out of a decision or
  determination that is final and unappealable under a provision of
  this code. 
         SECTION 3.03.  Section 48.201, Education Code, is amended to
  read as follows:
         Sec. 48.201.  PURPOSE. The purpose of the tier two component
  of the Foundation School Program is to provide each school district
  with the opportunity to provide the basic program and to supplement
  that program at a level of its own choice. An allotment under this
  subchapter may be used for any legal purpose other than:
               (1)  capital outlay or debt service; or
               (2)  a purpose prohibited by Section 45.105(c-1) or
  another provision of this code.
         SECTION 3.04.  Section 44.052(c), Education Code, as amended
  by this Act, applies only to an offense committed on or after the
  effective date of this Act. An offense committed before the
  effective date of this Act is governed by the law in effect when the
  offense was committed, and the former law is continued in effect for
  that purpose. For purposes of this section, an offense was
  committed before the effective date of this Act if any element of
  the offense occurred before that date.
  ARTICLE 4. CONFORMING AMENDMENTS
         SECTION 4.01.  Section 7.028(a), Education Code, is amended
  to read as follows:
         (a)  Except as provided by Section 21.006(k), 22.093(l),
  22.096, 28.006, 29.001(5), 29.010(a), 38.003, or 39.003 [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, or Subchapter A,
  Chapter 37, only as necessary to ensure:
               (1)  compliance with federal law and regulations;
               (2)  financial accountability, including compliance
  with grant requirements;
               (3)  data integrity for purposes of:
                     (A)  the Public Education Information Management
  System (PEIMS); and
                     (B)  accountability under Chapters 39 and 39A; and
               (4)  qualification for funding under Chapter 48.
         SECTION 4.02.  Section 12.1162(a), Education Code, is
  amended to read as follows:
         (a)  The commissioner shall take any of the actions described
  by Subsection (b) or by Section 39A.001, 39A.002, 39A.004, 39A.005,
  or 39A.007, to the extent the commissioner determines necessary, if
  an open-enrollment charter school, as determined by a report issued
  under Section 39.004(b) [39.058(b)]:
               (1)  commits a material violation of the school's
  charter;
               (2)  fails to satisfy generally accepted accounting
  standards of fiscal management; or
               (3)  fails to comply with this subchapter or another
  applicable rule or law.
         SECTION 4.03.  Section 39.0302(a), Education Code, is
  amended to read as follows:
         (a)  During an agency investigation or audit of a school
  district under Section 39.0301(e) or (f), a special [an
  accreditation] investigation under Section 39.003(a)(8)
  [39.057(a)(8)] or (10) [(14)], a compliance review under Section
  21.006(k), 22.093(l), or 22.096, or an investigation by the State
  Board for Educator Certification of an educator for an alleged
  violation of an assessment instrument security procedure
  established under Section 39.0301(a), the commissioner may issue a
  subpoena to compel the attendance of a relevant witness or the
  production, for inspection or copying, of relevant evidence that is
  located in this state.
         SECTION 4.04.  Section 39.056(h), Education Code, is amended
  to read as follows:
         (h)  The commissioner may at any time convert a monitoring
  review to a special [accreditation] investigation under Section
  39.003 [39.057], provided the commissioner promptly notifies the
  school district of the conversion.
         SECTION 4.05.  Section 39A.001, Education Code, is amended
  to read as follows:
         Sec. 39A.001.  GROUNDS FOR COMMISSIONER ACTION. The
  commissioner shall take any of the actions authorized by this
  subchapter to the extent the commissioner determines necessary if:
               (1)  a school district does not satisfy:
                     (A)  the accreditation criteria under Section
  39.052;
                     (B)  the academic performance standards under
  Section 39.053 or 39.054; or
                     (C)  any financial accountability standard as
  determined by commissioner rule; or
               (2)  the commissioner considers the action to be
  appropriate on the basis of a special [accreditation] investigation
  under Section 39.003 [39.057].
  ARTICLE 5. APPLICABILITY; EFFECTIVE DATE
         SECTION 5.01.  This Act applies beginning with the 2021-2022
  school year.
         SECTION 5.02.  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, 2021.