H.B. No. 1500
 
 
 
 
AN ACT
  relating to the public school accountability system.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 39.053(b), Education Code, is amended to
  read as follows:
         (b)  Performance on the achievement indicators adopted under
  Subsections (c)(1)-(4) shall be compared to state-established
  standards. To the extent feasible, the [The] indicators should
  allow for disaggregation [must be based on information that is
  disaggregated] by race, ethnicity, and socioeconomic status.
         SECTION 2.  Section 39.053, Education Code, is amended by
  amending Subsection (c) and adding Subsections (c-4) and (g-3) to
  read as follows:
         (c)  School districts and campuses must be evaluated based on
  five domains of indicators of achievement adopted under this
  section that 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)  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
                           (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
                     (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)  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 Every Student Succeeds Act [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 or fine arts
  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 or international baccalaureate
  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;
                           (xi)  the percentage of students who
  successfully completed an OnRamps dual enrollment course;
                           (xii)  the percentage of students who have
  received credit by examination;
                           (xiii)  the percentage of students who have
  been promoted to higher grade levels than the grade levels to which
  the students would ordinarily be assigned;
                           (xiv)  the percentage of students who have
  earned a diploma after not more than three years of high school
  attendance; and
                           (xv)  the percentage of students who earn an
  associate degree;
                     (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)  the percentage of students in
  grades seven and eight who complete a pre-advanced placement course
  or pre-international baccalaureate course; and
                           (iii)  the percentage of students who
  participate in a University Interscholastic League A+ academic
  event; 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
               (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.
         (c-4)  For purposes of evaluating the performance of a
  district or campus under Subsection (c), the commissioner shall
  determine a method by which the performance of a student is
  attributed greater weight for each school year a student has been
  continuously enrolled in the school district or at the campus, as
  applicable.
         (g-3)  The commissioner shall adopt rules for computing the
  percentage of students participating in a University
  Interscholastic League A+ academic event under Subsection
  (c)(4)(B)(iii).
         SECTION 3.  Sections 39.054(a) and (a-1), Education Code, as
  effective September 1, 2017, are amended to read as follows:
         (a)  The commissioner shall adopt rules to evaluate school
  district and campus performance and assign each district and campus
  an overall performance rating of A, B, C, D, or F. In addition to the
  overall performance rating, the commissioner shall assign each
  district and campus a separate domain performance rating of A, B, C,
  D, or F for each applicable domain under Sections 39.053(c)(1)-(4).
  An overall or domain performance rating of A reflects exemplary
  performance. An overall or domain performance rating of B reflects
  recognized performance. An overall or domain performance rating of
  C reflects acceptable performance. An overall or domain
  performance rating of D reflects performance that needs
  improvement. An overall or domain performance rating of [or] F
  reflects unacceptable performance. A district may not receive an
  overall or domain performance rating of A if the district includes
  any campus with a corresponding overall or domain performance
  rating of [D or] F. A reference in law to an acceptable rating or
  acceptable performance includes an overall or domain performance
  rating of A, B, [or] C, or D or performance that is exemplary,
  recognized, or acceptable or needs improvement [performance].
         (a-1)  In [For purposes of] assigning [an overall]
  performance ratings [rating] under Subsection (a), the
  commissioner may adjust the overall performance rating of a
  district or campus if the performance of the district or campus
  under the indicators described by Section 39.053(c), based on
  information disaggregated by race, ethnicity, socioeconomic
  status, or other factors, does not meet standards established by
  the commissioner.  The commissioner shall [attribute]:
               (1)  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), provided that the
  commissioner shall consider either the district's or campus's
  performance rating under the first domain or the second domain,
  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 an overall
  performance rating higher than B;
               (2)  for middle and junior high school and elementary
  campuses and districts that include only those campuses, attribute
  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, attribute:
                     (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)  attribute 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).
         SECTION 4.  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 an overall or domain
  performance rating of F, including the assignment of a performance
  rating of F in the manner provided by Subsection (c) or (d). 
         (c)  If a school district or campus is assigned an overall
  performance rating of D for two consecutive school years after the
  district or campus is ordered to develop and implement a targeted
  improvement plan under Subsection (a), the commissioner shall
  assign that district or campus an overall performance rating of F
  for the following school year unless, based on the performance of
  the district or campus in that following school year, the
  commissioner determines that the district or campus should be
  assigned a performance rating of C or higher. 
         (d)  If a district or campus is assigned a domain performance
  rating of D for the same domain for two consecutive school years
  after the district or campus is ordered to develop and implement a
  targeted improvement plan under Subsection (a), the commissioner
  shall assign that district or campus a domain performance rating of
  F for that domain for the following school year unless, based on the
  performance of the district or campus in that following school
  year, the commissioner determines the district or campus should be
  assigned a performance rating of C or higher in that domain.
         (e)  The commissioner shall adopt rules as necessary to
  implement this section.
         SECTION 5.  Section 39.107, Education Code, is amended by
  adding Subsections (b-10) and (b-11) to read as follows:
         (b-10)  Not later than June 15 of each year, the commissioner
  shall, in writing, either approve or reject any campus turnaround
  plan prepared and submitted to the commissioner by a district.  If
  the commissioner rejects a campus turnaround plan, the commissioner
  must also send the district an outline of the specific concerns
  regarding the turnaround plan that resulted in the rejection.
         (b-11)  If the commissioner rejects a campus turnaround
  plan, the district must create a modified plan with assistance from
  agency staff and submit the modified plan to the commissioner for
  approval not later than the 60th day after the date the commissioner
  rejects the campus turnaround plan.  The commissioner shall notify
  the district in writing of the commissioner's decision regarding
  the modified plan not later than the 15th day after the date the
  commissioner receives the modified plan.
         SECTION 6.  Section 12A.001(b), Education Code, is amended
  to read as follows:
         (b)  A school district is eligible for designation as a
  district of innovation only if the district's most recent overall
  performance rating under Section 39.054 is exemplary, recognized,
  or acceptable as reflected by an overall [reflects at least
  acceptable] performance rating of A, B, or C.
         SECTION 7.  Section 12A.001(b), Education Code, as amended
  by this Act, applies only to a school district designated as a
  district of innovation on or after the effective date of this Act.
         SECTION 8.  This Act applies beginning with the 2017-2018
  school year.
         SECTION 9.  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. 1500 was passed by the House on May 3,
  2017, by the following vote:  Yeas 145, Nays 0, 2 present, not
  voting; and that the House concurred in Senate amendments to H.B.
  No. 1500 on May 26, 2017, by the following vote:  Yeas 143, Nays 0,
  2 present, not voting, and that the House adopted S.C.R. No. 62
  authorizing certain corrections in H.B. No. 1500 on May 29, 2017, by
  the following vote: Yeas 141, Nays 3, 2 present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.B. No. 1500 was passed by the Senate, with
  amendments, on May 24, 2017, by the following vote:  Yeas 31, Nays
  0, and that the Senate adopted S.C.R. No. 62 authorizing certain
  corrections in H.B. No. 1500 on May 29, 2017, by the following vote:
  Yeas 31, Nays 0.
 
  ______________________________
  Secretary of the Senate   
  APPROVED: __________________
                  Date       
   
           __________________
                Governor