85R5746 PAM-D
	By: González of El Paso	H.B. No. 843

	A BILL TO BE ENTITLED
	AN ACT
	relating to designations for rating the performance of public
	school districts and campuses for accountability purposes.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Sections 8.051(b) and (d), Education Code, are
	amended to read as follows:
	(b)  Each regional education service center shall annually
	develop and submit to the commissioner for approval a plan for
	improvement. Each plan must include the purposes and description
	of the services the center will provide to:
	(1)  campuses assigned a needs improvement [an
	unacceptable] performance rating under Section 39.054;
	(2)  the lowest-performing campuses in the region; and
	(3)  other campuses.
	(d)  Each regional education service center shall maintain
	core services for purchase by school districts and campuses. The
	core services are:
	(1)  training and assistance in:
	(A)  teaching each subject area assessed under
	Section 39.023; and
	(B)  providing instruction in personal financial
	literacy as required under Section 28.0021;
	(2)  training and assistance in providing each program
	that qualifies for a funding allotment under Section 42.151,
	42.152, 42.153, or 42.156;
	(3)  assistance specifically designed for a school
	district or campus assigned a needs improvement [an unacceptable]
	performance rating under Section 39.054;
	(4)  training and assistance to teachers,
	administrators, members of district boards of trustees, and members
	of site-based decision-making committees;
	(5)  assistance specifically designed for a school
	district that is considered out of compliance with state or federal
	special education requirements, based on the agency's most recent
	compliance review of the district's special education programs; and
	(6)  assistance in complying with state laws and rules.
	SECTION 2.  Section 12.110(e), Education Code, is amended to
	read as follows:
	(e)  The commissioner shall give priority to applications
	that propose an open-enrollment charter school campus to be located
	in the attendance zone of a school district campus assigned a needs
	improvement [an unacceptable] performance rating under Section
	39.054 for the two preceding school years.
	SECTION 3.  Section 12.115(c), Education Code, is amended to
	read as follows:
	(c)  The commissioner shall revoke the charter of an
	open-enrollment charter school if:
	(1)  the charter holder has been assigned a needs
	improvement [an unacceptable] performance rating under Subchapter
	C, Chapter 39, for the three preceding school years;
	(2)  the charter holder has been assigned a financial
	accountability performance rating under Subchapter D, Chapter 39,
	indicating financial performance lower than satisfactory for the
	three preceding school years; or
	(3)  the charter holder has been assigned any
	combination of the ratings described by Subdivision (1) or (2) for
	the three preceding school years.
	SECTION 4.  Sections 12A.008(a) and (c), Education Code, are
	amended to read as follows:
	(a)  The commissioner may terminate a district's designation
	as a district of innovation if the district receives for two
	consecutive school years:
	(1)  a needs improvement [an unacceptable academic]
	performance rating under Section 39.054;
	(2)  a [an unacceptable] financial accountability
	rating indicating financial performance lower than satisfactory
	under Section 39.082; or
	(3)  a needs improvement [an unacceptable academic]
	performance rating under Section 39.054 for one of the school years
	and a [an unacceptable] financial accountability rating indicating
	financial performance lower than satisfactory under Section 39.082
	for the other school year.
	(c)  The commissioner shall terminate a district's
	designation as a district of innovation if the district receives
	for three consecutive school years:
	(1)  a needs improvement [an unacceptable academic]
	performance rating under Section 39.054;
	(2)  a [an unacceptable] financial accountability
	rating indicating financial performance lower than satisfactory
	under Section 39.082; or
	(3)  any combination of one or more needs improvement
	[unacceptable] ratings under Subdivision (1) and one or more
	financial accountability [unacceptable] ratings indicating
	financial performance lower than satisfactory under Subdivision
	(2).
	SECTION 5.  The heading to Section 13.054, Education Code,
	is amended to read as follows:
	Sec. 13.054.  [ACADEMICALLY UNACCEPTABLE] SCHOOL DISTRICTS
	RATED AS NEEDS IMPROVEMENT.
	SECTION 6.  Sections 13.054(a), (b), and (d), Education
	Code, are amended to read as follows:
	(a)  The commissioner by order may annex to one or more
	adjoining districts a school district that has been rated as needs
	improvement [academically unacceptable] for a period of two years.
	(b)  The governing board of a district to which territory of
	a [an academically unacceptable] district rated as needs
	improvement is annexed is the governing board for the new district.
	(d)  Title to the real property of the [academically
	unacceptable] district rated as needs improvement vests in the
	district to which the property is annexed. Each district to which
	territory is annexed assumes and is liable for any portion of the
	[academically unacceptable district's] indebtedness of the
	district rated as needs improvement that is allocated to the
	receiving district under Section 13.004.
	SECTION 7.  Section 21.453(b), Education Code, is amended to
	read as follows:
	(b)  The commissioner may allocate funds from the account to
	regional education service centers to provide staff development
	resources to school districts that:
	(1)  are rated as needs improvement [academically
	unacceptable];
	(2)  have one or more campuses rated as needs
	improvement [academically unacceptable]; or
	(3)  are otherwise in need of assistance as indicated
	by the academic performance of students, as determined by the
	commissioner.
	SECTION 8.  Section 39.054(a), Education Code, as effective
	September 1, 2017, is 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 exemplary, recognized,
	acceptable, or needs improvement [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
	exemplary, recognized, acceptable, or needs improvement [A, B, C,
	D, or F] for each domain under Sections 39.053(c)(1)-(4).  [An
	overall or domain performance rating of A reflects exemplary
	performance.   An overall or domain performance rating of B reflects
	recognized performance.   An overall or domain performance rating of
	C reflects acceptable performance.   An overall or domain
	performance rating of D or F reflects unacceptable performance.]  A
	district may not receive an overall or domain performance rating of
	exemplary [A] if the district includes any campus with a
	corresponding overall or domain performance rating of needs
	improvement [D or F].  A reference in law to an acceptable rating or
	acceptable performance includes an overall or domain performance
	rating of [A, B, or C or] exemplary, recognized, or acceptable
	performance.
	SECTION 9.  Sections 39.054(a-2) and (a-3), Education Code,
	are amended to read as follows:
	(a-2)  The commissioner by rule shall adopt procedures to
	ensure that a repeated performance rating of needs improvement [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 exemplary, recognized, or acceptable
	[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 needs improvement [D or F] for the preceding school year, the
	commissioner shall notify the district of a subsequent such
	designation on or before June 15.
	SECTION 10.  Section 39.0545(a), Education Code, is amended
	to read as follows:
	(a)  Each school district shall evaluate the district's
	performance and the performance of each campus in the district in
	community and student engagement and in compliance as provided by
	this section and assign the district and each campus a performance
	rating of exemplary, recognized, acceptable, or needs improvement
	[unacceptable] for both overall performance and each individual
	evaluation factor listed under Subsection (b).  Not later than
	August 8 of each year, the district shall report each performance
	rating to the agency and make the performance ratings publicly
	available as provided by commissioner rule.
	SECTION 11.  Section 39.0546(b), Education Code, is amended
	to read as follows:
	(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 exemplary, recognized, acceptable,
	or needs improvement [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.]
	SECTION 12.  Section 39.106(e), Education Code, is amended
	to read as follows:
	(e)  For each year a campus is assigned a needs improvement
	[an unacceptable] performance rating, a campus intervention team
	shall:
	(1)  continue to work with a campus until:
	(A)  the campus satisfies all performance
	standards under Section 39.054(e) for a two-year period; or
	(B)  the campus satisfies all performance
	standards under Section 39.054(e) for a one-year period and the
	commissioner determines that the campus is operating and will
	continue to operate in a manner that improves student achievement;
	(2)  assist in updating the targeted improvement plan
	to identify and analyze areas of growth and areas that require
	improvement; and
	(3)  submit each updated plan described by Subdivision
	(2) to the board of trustees of the school district.
	SECTION 13.  Sections 39.107(a), (a-2), (b-4), (e), (f),
	(g-1), and (k), Education Code, are amended to read as follows:
	(a)  After a campus has been identified as needs improvement
	[unacceptable] for two consecutive school years, the commissioner
	shall order the campus to prepare and submit a campus turnaround
	plan.  The commissioner shall by rule establish procedures
	governing the time and manner in which the campus must submit the
	campus turnaround plan.
	(a-2)  Before a campus turnaround plan is prepared and
	submitted for approval to the board of trustees of the school
	district, the district, in consultation with the campus
	intervention team, shall:
	(1)  provide notice to parents, the community, and
	stakeholders that the campus has received a needs improvement [an
	academically unacceptable] performance rating for two consecutive
	years and will be required to submit a campus turnaround plan; and
	(2)  request assistance from parents, the community,
	and stakeholders in developing the campus turnaround plan.
	(b-4)  A campus turnaround plan developed under this section
	must take effect not later than the school year following the third
	consecutive school year that the campus has received a needs
	improvement [an academically unacceptable] performance rating.
	(e)  If a campus is considered to have a needs improvement
	[an unacceptable] performance rating for three consecutive school
	years after the campus is ordered to submit a campus turnaround plan
	under Subsection (a), the commissioner, subject to Subsection
	(e-2), shall order:
	(1)  appointment of a board of managers to govern the
	district as provided by Section 39.112(b); or
	(2)  closure of the campus.
	(f)  Notwithstanding Section 39.112(e), the commissioner may
	remove a board of managers appointed to govern a district under this
	section only if the campus that was the basis for the appointment of
	the board of managers receives an academically acceptable
	performance rating for two consecutive school years.  If a campus
	that was the basis for the appointment of a board of managers
	receives a needs improvement [an academically unacceptable]
	performance rating for two additional consecutive years following
	the appointment of the board of managers, the commissioner may
	remove the board of managers and, in consultation with the local
	community, may appoint a new board of managers to govern the
	district.
	(g-1)  If the commissioner orders alternative management of
	a campus under Subsection (d)(2), the school district shall execute
	a contract with a managing entity for a term not to exceed five
	years.  The commissioner may require a district to extend the term
	of the contract if the commissioner determines that extending the
	contract on expiration of the initial term is in the best interest
	of the students attending the campus.  The terms of the contract
	must be approved by the commissioner.  If a campus receives a needs
	improvement [an academically unacceptable] performance rating for
	two consecutive school years after the managing entity assumes
	management of the campus, the commissioner shall cancel the
	contract with the managing entity.
	(k)  To qualify for consideration as a managing entity under
	this section, the entity must submit a proposal that provides
	information relating to the entity's management and leadership team
	that will participate in management of the campus under
	consideration, including information relating to individuals that
	have:
	(1)  documented success in whole school interventions
	that increased the educational and performance levels of students
	in campuses considered to have a needs improvement [an
	unacceptable] performance rating;
	(2)  a proven record of effectiveness with programs
	assisting low-performing students;
	(3)  a proven ability to apply research-based school
	intervention strategies;
	(4)  a proven record of financial ability to perform
	under the management contract; and
	(5)  any other experience or qualifications the
	commissioner determines necessary.
	SECTION 14.  Sections 39.1071(b) and (d), Education Code,
	are amended to read as follows:
	(b)  If a campus described under Subsection (a) receives an
	academically unacceptable performance rating for the 2016-2017
	school year and a needs improvement performance rating for the
	2017-2018 school year [years], the commissioner shall apply the
	interventions and sanctions authorized by Section 39.107(e) to the
	campus.
	(d)  If a campus described under Subsection (c) receives an
	academically unacceptable performance rating for the 2016-2017
	school year and a needs improvement performance rating for the[,]
	2017-2018[,] and 2018-2019 school years, the commissioner shall
	apply the interventions and sanctions authorized by Section
	39.107(e) to the campus.
	SECTION 15.  Section 39.306(a), Education Code, is amended
	to read as follows:
	(a)  Each board of trustees shall publish an annual report
	describing the educational performance of the district and of each
	campus in the district that includes uniform student performance
	and descriptive information as determined under rules adopted by
	the commissioner.  The annual report must also include:
	(1)  campus performance objectives established under
	Section 11.253 and the progress of each campus toward those
	objectives, which shall be available to the public;
	(2)  information indicating the district's
	accreditation status and identifying each district campus awarded a
	distinction designation under Subchapter G or considered a needs
	improvement [an unacceptable] campus under Subchapter E;
	(3)  the district's current special education
	compliance status with the agency;
	(4)  a statement of the number, rate, and type of
	violent or criminal incidents that occurred on each district
	campus, to the extent permitted under the Family Educational Rights
	and Privacy Act of 1974 (20 U.S.C. Section 1232g);
	(5)  information concerning school violence prevention
	and violence intervention policies and procedures that the district
	is using to protect students;
	(6)  the findings that result from evaluations
	conducted under programs or activities to support safe and healthy
	students authorized under 20 U.S.C. Section 7118 [the Safe and
	Drug-Free Schools and Communities Act of 1994 (20 U.S.C. Section
	7101 et seq.)]; and
	(7)  information received under Section 51.403(e) for
	each high school campus in the district, presented in a form
	determined by the commissioner.
	SECTION 16.  Section 39.333, Education Code, is amended to
	read as follows:
	Sec. 39.333.  REGIONAL AND DISTRICT LEVEL REPORT.  As part of
	the comprehensive biennial report under Section 39.332, the agency
	shall submit a regional and district level report covering the
	preceding two school years and containing:
	(1)  a summary of school district compliance with the
	student/teacher ratios and class-size limitations prescribed by
	Sections 25.111 and 25.112, including:
	(A)  the number of campuses and classes at each
	campus granted an exception from Section 25.112; and
	(B)  for each campus granted an exception from
	Section 25.112, a statement of whether the campus has been awarded a
	distinction designation under Subchapter G or has been identified
	as a needs improvement [an unacceptable] campus under Subchapter E;
	(2)  a summary of the exemptions and waivers granted to
	campuses and school districts under Section 7.056 or 39.232 and a
	review of the effectiveness of each campus or district following
	deregulation;
	(3)  an evaluation of the performance of the system of
	regional education service centers based on the indicators adopted
	under Section 8.101 and client satisfaction with services provided
	under Subchapter B, Chapter 8;
	(4)  an evaluation of accelerated instruction programs
	offered under Section 28.006, including an assessment of the
	quality of such programs and the performance of students enrolled
	in such programs; and
	(5)  the number of classes at each campus that are
	currently being taught by individuals who are not certified in the
	content areas of their respective classes.
	SECTION 17.  Section 39.361, Education Code, is amended to
	read as follows:
	Sec. 39.361.  NOTICE IN STUDENT GRADE REPORT. The first
	written notice of a student's performance that a school district
	gives during a school year as required by Section 28.022(a)(2) must
	include:
	(1)  a statement of whether the campus at which the
	student is enrolled has been awarded a distinction designation
	under Subchapter G or has been identified as a needs improvement [an
	unacceptable] campus under Subchapter E; and
	(2)  an explanation of the significance of the
	information provided under Subdivision (1).
	SECTION 18.  Section 39.363, Education Code, is amended to
	read as follows:
	Sec. 39.363.  NOTICE ON AGENCY WEBSITE.  Not later than
	October 1 of each year, the agency shall make the following
	information available to the public on the agency's Internet
	website:
	(1)  the [letter] performance rating assigned to each
	school district and campus under Section 39.054 and each
	distinction designation awarded to a school district or campus
	under Subchapter G;
	(2)  the performance rating assigned to a school
	district and each campus in the district by the district under
	Section 39.0545; and
	(3)  the financial accountability rating assigned to
	each school district and open-enrollment charter school under
	Section 39.082.
	SECTION 19.  This Act takes effect September 1, 2017.