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  84R25686 PAM-D
 
  By: Aycock H.B. No. 2804
 
  Substitute the following for H.B. No. 2804:
 
  By:  Aycock C.S.H.B. No. 2804
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to evaluation of public school performance.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  The heading to Section 39.053, Education Code,
  is amended to read as follows:
         Sec. 39.053.  PERFORMANCE INDICATORS: [STUDENT]
  ACHIEVEMENT.
         SECTION 2.  Section 39.053, Education Code, is amended by
  amending Subsections (a), (b), (c), (f), (g), and (g-1) and adding
  Subsection (a-1) to read as follows:
         (a)  The commissioner shall adopt a set of indicators of the
  quality of learning and [student] achievement.  The commissioner
  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 [student] achievement indicators
  adopted under Subsections (c)(1)-(4) [this section] 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
  five domains of indicators [Indicators] of [student] achievement
  adopted under this section that [must] include:
               (1)  in the first domain, the results of:
                     (A)  assessment instruments required under
  Sections 39.023(a), (c), and (l), including the results of
  assessment instruments required for graduation retaken by a
  student, aggregated across grade levels by subject area, including:
                           (i)  [(A)]  for the performance standard
  determined by the commissioner under Section 39.0241(a),[:
                           [(i)]  the percentage of students who
  performed satisfactorily on the assessment instruments, aggregated
  across grade levels by subject area; and
                           (ii)  [for students who did not perform
  satisfactorily, the percentage of students who met the standard for
  annual improvement, as determined by the agency under Section
  39.034, on the assessment instruments, aggregated across grade
  levels by subject area; and
                     [(B)]  for the college readiness performance
  standard as determined under Section 39.0241,[:
                           [(i)] the percentage of students who
  performed satisfactorily on the assessment instruments, aggregated
  across grade levels by subject area; and
                     (B)  assessment instruments required under
  Section 39.023(b), 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;
               (2)  in the second domain:
                     (A)  for assessment instruments 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 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)  [(ii) for students who did not perform
  satisfactorily, the percentage of students who met the standard for
  annual improvement, as determined by the agency under Section
  39.034, on the assessment instruments, aggregated across grade
  levels by subject area;
               [(2)]  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) [(3)]  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) [(4)]  the percentage of students who
  successfully completed the curriculum requirements for the
  distinguished level of achievement under the foundation high school
  program;
                           (iv) [(5)]  the percentage of students who
  successfully completed the curriculum requirements for an
  endorsement under Section 28.025(c-1); [and]
                           (v)  the percentage of students who
  completed a coherent sequence of career and technical courses;
                           (vi) [(6)     at least three additional
  indicators of student achievement to evaluate district and campus
  performance, which must include either:
                     [(A)]  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); [or]
                           (vii) [(B)]  the percentage [number] of
  students who earn[:
                           [(i)]  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 are
  enrolled in advanced placement courses;
                           (ix)  the percentage of students who enlist
  in the armed forces of the United States; and
                           (x)  the percentage of students who earn 
  [(ii)     at least 30 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);
                           [(iii)  an associate's degree; or
                           [(iv)]  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, dropout rates, computed in the manner described by
  Paragraph (A)(i); or
                     (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
               (5)  in the fifth domain, three programs or specific
  categories of performance related to community and student
  engagement locally selected and evaluated as provided by Section
  39.0546.
         (f)  Annually, the commissioner shall define the state
  standard for the current school year for each [student] achievement
  indicator described by Subsections (c)(1)-(4) [Subsection (c)] 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 [student]
  achievement indicator described by Subsection (c)(1)(A)(ii)
  [(c)(1)(B)(i)] 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 defining the required state standard for the dropout
  rate indicator described by Subsections (c)(4)(A)(i) and (B)(ii)
  [Subsection (c)(2)], 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 under
  Subsections (c)(4)(A)(i) and (B)(ii) [Subsection (c)(2)], 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 unschooled refugees
  or 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.
         SECTION 3.  Effective September 1, 2015, Subchapter C,
  Chapter 39, Education Code, is amended by adding Section 39.0535 to
  read as follows:
         Sec. 39.0535.  TEMPORARY PROVISION: ASSIGNMENT OF
  PERFORMANCE RATINGS. (a) Notwithstanding any other law, the
  commissioner shall assign each district and campus a performance
  rating not later than August 15 of each year.
         (b)  This section expires September 1, 2016.
         SECTION 4.  Effective September 1, 2016, Section 39.054(a),
  Education Code, is amended to read as follows:
         (a)  The commissioner shall adopt rules to evaluate school
  district and campus performance and assign each district a
  performance rating of A, B, C, D, or F. In adopting rules under this
  subsection, the commissioner shall determine the criteria for each
  designated letter performance rating. A district performance
  rating of A, B, or C reflects acceptable performance and a district
  performance rating of D or F reflects unacceptable performance. The
  commissioner shall also assign each campus a performance rating of
  exemplary, recognized, acceptable, or unacceptable. A campus
  performance rating of exemplary, recognized, or acceptable
  reflects acceptable performance, and a campus performance rating of
  unacceptable reflects unacceptable performance.  A district may
  not receive a performance rating of A if the district includes any
  campus with a performance rating of unacceptable.  Not later than
  August 15 [8] of each year, the performance rating of each district
  and campus shall be made publicly available as provided by rules
  adopted under this subsection.  If a district or campus received a
  performance rating that reflected unacceptable performance for the
  preceding school year, the commissioner shall notify the district
  of a subsequent such designation on or before June 15.
         SECTION 5.  Effective September 1, 2017, Section 39.054,
  Education Code, is amended by amending Subsections (a), (c), (e),
  and (f) and adding Subsections (a-1) and (a-2) 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 [a] 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 Sections 39.053(c)(1)-(4).  An overall
  or domain [In adopting rules under this subsection, the
  commissioner shall determine the criteria for each designated
  letter performance rating.   A district] 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 [, B, or] C reflects acceptable performance.
  An overall or domain [and a district] performance rating of D or F
  reflects unacceptable performance. [The commissioner shall also
  assign each campus a performance rating of exemplary, recognized,
  acceptable, or unacceptable. A campus performance rating of
  exemplary, recognized, or acceptable reflects acceptable
  performance, and a campus performance rating of unacceptable
  reflects unacceptable performance.]  A district may not receive an
  overall or domain [a] performance rating of A if the district
  includes any campus with a corresponding overall or domain
  performance rating of D or F [unacceptable]. A reference in law to
  an acceptable rating or acceptable performance includes an overall
  or domain performance rating of A or B or exemplary or recognized
  performance.
         (a-1)  For purposes of assigning an overall performance
  rating under Subsection (a), the commissioner shall attribute 55
  percent of the performance evaluation to the achievement indicators
  for the first, second, and third domains under Sections
  39.053(c)(1)-(3), 35 percent of the performance evaluation to the
  achievement indicators for the fourth domain under Section
  39.053(c)(4), and 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). The
  commissioner by rule 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
  and is not compensated for by a performance rating of A, B, or C in
  another domain.
         (a-2)  Not later than August 15 [8] of each year, the
  performance ratings [rating] of each district and campus shall be
  made publicly available as provided by rules adopted under this
  section [subsection].  If a district or campus received an overall
  or domain [a] performance rating of D or F [that reflected
  unacceptable performance] for the preceding school year, the
  commissioner shall notify the district of a subsequent such
  designation on or before June 15.
         (c)  In evaluating school district and campus performance on
  the [student] achievement indicators for student performance on
  assessment instruments [indicators] adopted under Sections
  39.053(c)(1) and (2) and the dropout rate indicator adopted under
  Sections 39.053(c)(4)(A)(i) and (B)(ii), the commissioner shall
  define acceptable performance as meeting the state standard
  determined by the commissioner under Section 39.053(f) [39.053(e)]
  for the current school year based on:
               (1)  student performance in the current school year; or
               (2)  student performance as averaged over the current
  school year and the preceding two school years.
         (e)  Each annual performance review under this section shall
  include an analysis of the [student] achievement indicators adopted
  under Sections 39.053(c)(1)-(4) [Section 39.053(c)] to determine
  school district and campus performance in relation to[:
               [(1)]  standards established for each indicator[; and
               [(2)     required improvement as defined under Section
  39.053(e)].
         (f)  In the computation of dropout rates under Sections
  39.053(c)(4)(A)(i) and (B)(ii) [Section 39.053(c)(2)], 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 6.  Sections 39.0545(b) and (c), Education Code, as
  added by Chapter 167 (S.B. 1538), Acts of the 83rd Legislature,
  Regular Session, 2013, are amended to read as follows:
         (b)  Notwithstanding Section 39.053(c)(4)(A)(i) 
  [39.053(c)(2)], the commissioner shall use the alternative
  completion rate under this subsection to determine the dropout rate 
  [student achievement] indicator under Section 39.053(c)(4)(A)(i) 
  [39.053(c)(2)] 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)(4)(A)(i) 
  [39.053(c)(2)], 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.
         SECTION 7.  Subchapter C, Chapter 39, Education Code, is
  amended by adding Section 39.0546 to read as follows:
         Sec. 39.0546.  PERFORMANCE IN COMMUNITY AND STUDENT
  ENGAGEMENT AS COMPONENT OF OVERALL DISTRICT AND CAMPUS RATING. (a)
  For purposes of including the local evaluation of districts and
  campuses under Section 39.053(c)(5) and assigning an overall rating
  under Section 39.054, before the beginning of each school year:
               (1)  each school district shall:
                     (A)  select and report to the agency three
  programs or categories under Section 39.0545(b)(1), as added by
  Chapter 211 (H.B. 5), Acts of the 83rd Legislature, Regular
  Session, 2013, under which the district will evaluate district
  performance;
                     (B)  submit to the agency the criteria the
  district will use to evaluate district performance and assign the
  district a performance rating; and
                     (C)  make the information described by Paragraphs
  (A) and (B) available on the district's Internet website; and
               (2)  each campus shall:
                     (A)  select and report to the agency three
  programs or categories under Section 39.0545(b)(1), as added by
  Chapter 211 (H.B. 5), Acts of the 83rd Legislature, Regular
  Session, 2013, under which the campus will evaluate campus
  performance;
                     (B)  submit to the agency the criteria the campus
  will use to evaluate campus performance and assign the campus a
  performance rating; and
                     (C)  make the information described by Paragraphs
  (A) and (B) available on the Internet website of the campus.
         (b)  Based on the evaluation under this section, each school
  district shall assign the district and each campus shall assign the
  campus a performance rating of A, B, C, D, or F, for both overall
  performance and for each program or category evaluated.  An overall
  or a program or category performance rating of A reflects exemplary
  performance. An overall or a program or category performance rating
  of B reflects recognized performance. An overall or a program or
  category performance rating of C reflects acceptable performance.
  An overall or a program or category performance rating of D or F
  reflects unacceptable performance.
         (c)  On or before the date determined by the commissioner by
  rule, each school district and campus shall report each performance
  rating to the agency for the purpose of including the rating in
  evaluating school district and campus performance and assigning an
  overall rating under Section 39.054.
         SECTION 8.  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 [student] achievement indicators
  adopted under Sections 39.053(c)(1)-(4) [Section 39.053].  The
  district improvement plan must include provisions for:
               (1)  a comprehensive needs assessment addressing
  district student performance on the [student] 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 [student] 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 9.  Sections 11.253(c) and (d), Education Code, are
  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 [student] achievement indicators
  adopted under Sections 39.053(c)(1)-(4) [Section 39.053] and any
  other appropriate performance measures for special needs
  populations.
         (d)  Each campus improvement plan must:
               (1)  assess the academic achievement for each student
  in the school using the [student] achievement indicator system as
  described by Section 39.053;
               (2)  set the campus performance objectives based on the
  [student] achievement indicator system, including objectives for
  special needs populations, including students in special education
  programs under Subchapter A, Chapter 29;
               (3)  identify how the campus goals will be met for each
  student;
               (4)  determine the resources needed to implement the
  plan;
               (5)  identify staff needed to implement the plan;
               (6)  set timelines for reaching the goals;
               (7)  measure progress toward the performance
  objectives periodically to ensure that the plan is resulting in
  academic improvement;
               (8)  include goals and methods for violence prevention
  and intervention on campus;
               (9)  provide for a program to encourage parental
  involvement at the campus; and
               (10)  if the campus is an elementary, middle, or junior
  high school, set goals and objectives for the coordinated health
  program at the campus based on:
                     (A)  student fitness assessment data, including
  any data from research-based assessments such as the school health
  index assessment and planning tool created by the federal Centers
  for Disease Control and Prevention;
                     (B)  student academic performance data;
                     (C)  student attendance rates;
                     (D)  the percentage of students who are
  educationally disadvantaged;
                     (E)  the use and success of any method to ensure
  that students participate in moderate to vigorous physical activity
  as required by Section 28.002(l); and
                     (F)  any other indicator recommended by the local
  school health advisory council.
         SECTION 10.  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
  [student] achievement indicators adopted under Sections
  39.053(c)(1)-(4) [Section 39.053] and student attrition rates.
         SECTION 11.  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
  [student] achievement indicators adopted under Sections
  39.053(c)(1)-(4) [Section 39.053], 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 12.  Section 39.023(a-8), Education Code, as
  effective on or before September 1, 2015, is amended to read as
  follows:
         (a-8)  A school district or open-enrollment charter school
  may, for its own use in determining whether students are performing
  at a satisfactory level, administer to a student at the appropriate
  grade level, other than a student required to be assessed, an
  assessment instrument developed for purposes of Subsection (a-4),
  (a-5), or (a-6).  At the request of a district or open-enrollment
  charter school, the agency shall provide, allow for the
  administration of, and score each assessment instrument
  administered under this subsection in the same manner and at the
  same cost as for assessment instruments required to be administered
  under the applicable subsection.  The results of an assessment
  instrument administered under this subsection may not be included
  as an indicator of [student] achievement under Section 39.053 or
  any other provision.
         SECTION 13.  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 [student] achievement
  indicators described by Section 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 14.  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 39.054(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 [student]
  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 15.  Section 39.056(b), Education Code, is amended
  to read as follows:
         (b)  The commissioner shall determine the frequency of
  on-site investigations by the agency according to annual
  comprehensive analyses of student performance and equity in
  relation to the [student] achievement indicators adopted under
  Section 39.053.
         SECTION 16.  Section 39.102(a), Education Code, is amended
  to read as follows:
         (a)  If a school district does not satisfy the accreditation
  criteria under Section 39.052, the academic performance standards
  under Section 39.053 or 39.054, or any financial accountability
  standard as determined by commissioner rule, the commissioner shall
  take any of the following actions to the extent the commissioner
  determines necessary:
               (1)  issue public notice of the deficiency to the board
  of trustees;
               (2)  order a hearing conducted by the board of trustees
  of the district for the purpose of notifying the public of the
  insufficient performance, the improvements in performance expected
  by the agency, and the interventions and sanctions that may be
  imposed under this section if the performance does not improve;
               (3)  order the preparation of a student achievement
  improvement plan that addresses each academic [student]
  achievement indicator under Section 39.053(c) for which the
  district's performance is insufficient, the submission of the plan
  to the commissioner for approval, and implementation of the plan;
               (4)  order a hearing to be held before the commissioner
  or the commissioner's designee at which the president of the board
  of trustees of the district and the superintendent shall appear and
  explain the district's low performance, lack of improvement, and
  plans for improvement;
               (5)  arrange an on-site investigation of the district;
               (6)  appoint an agency monitor to participate in and
  report to the agency on the activities of the board of trustees or
  the superintendent;
               (7)  appoint a conservator to oversee the operations of
  the district;
               (8)  appoint a management team to direct the operations
  of the district in areas of insufficient performance or require the
  district to obtain certain services under a contract with another
  person;
               (9)  if a district has a current accreditation status
  of accredited-warned or accredited-probation, fails to satisfy any
  standard under Section 39.054(e), or fails to satisfy financial
  accountability standards as determined by commissioner rule,
  appoint a board of managers to exercise the powers and duties of the
  board of trustees;
               (10)  if for two consecutive school years, including
  the current school year, a district has received an accreditation
  status of accredited-warned or accredited-probation, has failed to
  satisfy any standard under Section 39.054(e), or has failed to
  satisfy financial accountability standards as determined by
  commissioner rule, revoke the district's accreditation and:
                     (A)  order closure of the district and annex the
  district to one or more adjoining districts under Section 13.054;
  or
                     (B)  in the case of a home-rule school district or
  open-enrollment charter school, order closure of all programs
  operated under the district's or school's charter; or
               (11)  if a district has failed to satisfy any standard
  under Section 39.054(e) due to the district's dropout rates, impose
  sanctions designed to improve high school completion rates,
  including:
                     (A)  ordering the development of a dropout
  prevention plan for approval by the commissioner;
                     (B)  restructuring the district or appropriate
  school campuses to improve identification of and service to
  students who are at risk of dropping out of school, as defined by
  Section 29.081;
                     (C)  ordering lower student-to-counselor ratios
  on school campuses with high dropout rates; and
                     (D)  ordering the use of any other intervention
  strategy effective in reducing dropout rates, including mentor
  programs and flexible class scheduling.
         SECTION 17.  Section 39.263(a), Education Code, is amended
  to read as follows:
         (a)  The criteria that the commissioner shall use to select
  successful schools and districts must be related to the goals in
  Section 4.002 and must include consideration of performance on the
  [student] achievement indicators adopted under Section 39.053(c)
  and consideration of the distinction designation criteria
  prescribed by or developed under Subchapter G.
         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 [student] achievement indicators under Sections
  39.053(c)(1)-(4) [Section 39.053(c)].
         SECTION 19.  Section 39.305(b), Education Code, is amended
  to read as follows:
         (b)  The report card shall include the following
  information:
               (1)  where applicable, the [student] achievement
  indicators described by Section 39.053(c) and the reporting
  indicators described by Sections 39.301(c)(1) through (5);
               (2)  average class size by grade level and subject;
               (3)  the administrative and instructional costs per
  student, computed in a manner consistent with Section 44.0071; and
               (4)  the district's instructional expenditures ratio
  and instructional employees ratio computed under Section 44.0071,
  and the statewide average of those ratios, as determined by the
  commissioner.
         SECTION 20.  Sections 39.332(b)(2) and (20), Education Code,
  are amended to read as follows:
               (2)  The report must contain an evaluation of the
  status of education in the state as reflected by:
                     (A)  the [student] achievement indicators
  described by Section 39.053; and
                     (B)  the reporting indicators described by
  Section 39.301.
               (20)  The report must contain a comparison of the
  performance of open-enrollment charter schools and school
  districts on the [student] achievement indicators described by
  Section 39.053(c), the reporting indicators described by Section
  39.301(c), and the accountability measures adopted under Section
  39.053(i), with a separately aggregated comparison of the
  performance of open-enrollment charter schools predominantly
  serving students at risk of dropping out of school, as described by
  Section 29.081(d), with the performance of school districts.
         SECTION 21.  Sections 39.053(e) and 39.054(b), (d), and
  (d-1), Education Code, are repealed.
         SECTION 22.  (a)  Except as provided by Subsections (b) and
  (c) of this section, this Act applies beginning with the 2017-2018
  school year.
         (b)  Section 3 of this Act applies beginning with the
  2015-2016 school year.
         (c)  Section 4 of this Act applies beginning with the
  2016-2017 school year.
         SECTION 23.  Except as otherwise provided by this Act, this
  Act takes effect immediately if it receives a vote of two-thirds of
  all the members elected to each house, as provided by Section 39,
  Article III, Texas Constitution.  If this Act does not receive the
  vote necessary for immediate effect, this Act takes effect
  September 1, 2015.