Texas 2009 - 81st Regular

Texas House Bill HB3 Latest Draft

Bill / Enrolled Version Filed 02/01/2025

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                            H.B. No. 3


 AN ACT
 relating to public school accountability, curriculum, and
 promotion requirements.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 SECTION 1. Section 7.009, Education Code, is amended to
 read as follows:
 Sec. 7.009. BEST PRACTICES; CLEARINGHOUSE. (a) In
 coordination with the Legislative Budget Board, the agency shall
 establish an online clearinghouse of information relating to best
 practices of campuses, [and] school districts, and open-enrollment
 charter schools.  The agency shall determine the appropriate topic
 categories for which a campus, district, or charter school may
 submit best [regarding instruction, dropout prevention, public
 school finance, resource allocation, and business] practices. To
 the extent practicable, the agency shall ensure that information
 provided through the online clearinghouse is specific, actionable
 information relating to the best practices of high-performing and
 highly efficient campuses, [and school] districts, and
 open-enrollment charter schools and of academically acceptable
 campuses, districts, and open-enrollment charter schools that have
 demonstrated significant improvement in student achievement rather
 than general guidelines relating to campus, [and school] district,
 and open-enrollment charter school operation. The information must
 be accessible by campuses, school districts, open-enrollment
 charter schools, and interested members of the public.
 (b) The agency shall solicit and collect from the
 Legislative Budget Board, centers for education research
 established under Section 1.005, and [exemplary or recognized]
 school districts, campuses, and open-enrollment charter schools[,
 as rated under Section 39.072,] examples of best practices as
 determined by the agency under Subsection (a) [relating to
 instruction, dropout prevention, public school finance, resource
 allocation, and business practices, including best practices
 relating to curriculum, scope and sequence, compensation and
 incentive systems, bilingual education and special language
 programs, compensatory education programs, and the effective use of
 instructional technology, including online courses].
 (c) The agency shall contract for the services of one or
 more third-party contractors to develop, implement, and maintain a
 system of collecting and evaluating the best practices of campuses,
 [and] school districts, and open-enrollment charter schools as
 provided by this section. In addition to any other considerations
 required by law, the agency must consider an applicant's
 demonstrated competence and qualifications in analyzing campus,
 [and] school district, and open-enrollment charter school
 practices in awarding a contract under this subsection.
 (d) The commissioner may purchase from available funds
 curriculum and other instructional tools identified under this
 section to provide for use by school districts and open-enrollment
 charter schools.
 SECTION 2. Section 7.028(a), Education Code, is amended to
 read as follows:
 (a) Except as provided by Section 29.001(5), 29.010(a),
 39.056 [39.074], or 39.057 [39.075], 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, Subchapter A, Chapter 37, or Section
 38.003, and the use of funds provided for such a program under
 Subchapter C, Chapter 42, only as necessary to ensure:
 (1) compliance with federal law and regulations;
 (2) financial accountability, including compliance
 with grant requirements; and
 (3) data integrity for purposes of:
 (A) the Public Education Information Management
 System (PEIMS); and
 (B) accountability under Chapter 39.
 SECTION 3. Sections 7.056(e) and (f), Education Code, are
 amended to read as follows:
 (e) Except as provided by Subsection (f), a school campus or
 district may not receive an exemption or waiver under this section
 from:
 (1) a prohibition on conduct that constitutes a
 criminal offense;
 (2) a requirement imposed by federal law or rule,
 including a requirement for special education or bilingual
 education programs; or
 (3) a requirement, restriction, or prohibition
 relating to:
 (A) essential knowledge or skills under Section
 28.002 or high school [minimum] graduation requirements under
 Section 28.025;
 (B) public school accountability as provided by
 Subchapters B, C, D, E, and J [G], Chapter 39;
 (C) extracurricular activities under Section
 33.081 or participation in a University Interscholastic League
 area, regional, or state competition under Section 33.0812;
 (D) health and safety under Chapter 38;
 (E) purchasing under Subchapter B, Chapter 44;
 (F) elementary school class size limits, except
 as provided by Section 25.112;
 (G) removal of a disruptive student from the
 classroom under Subchapter A, Chapter 37;
 (H) at-risk programs under Subchapter C, Chapter
 29;
 (I) prekindergarten programs under Subchapter E,
 Chapter 29;
 (J) educator rights and benefits under
 Subchapters A, C, D, E, F, G, and I, Chapter 21, or under Subchapter
 A, Chapter 22;
 (K) special education programs under Subchapter
 A, Chapter 29;
 (L) bilingual education programs under
 Subchapter B, Chapter 29; or
 (M) the requirements for the first day of
 instruction under Section 25.0811.
 (f) A school district or campus that is required to develop
 and implement a student achievement improvement plan under Section
 39.102 [39.131] or 39.103 [39.132] may receive an exemption or
 waiver under this section from any law or rule other than:
 (1) a prohibition on conduct that constitutes a
 criminal offense;
 (2) a requirement imposed by federal law or rule;
 (3) a requirement, restriction, or prohibition
 imposed by state law or rule relating to:
 (A) public school accountability as provided by
 Subchapters B, C, D, E, and J [G], Chapter 39; or
 (B) educator rights and benefits under
 Subchapters A, C, D, E, F, G, and I, Chapter 21, or under Subchapter
 A, Chapter 22; or
 (4) textbook selection under Chapter 31.
 SECTION 4. 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 an [identified as academically]
 unacceptable performance rating [based on the indicators adopted]
 under Section 39.054 [39.051];
 (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 teaching each subject
 area assessed under Section 39.023;
 (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 an [rated academically] unacceptable
 performance rating under Section 39.054 [39.072(a) or a campus
 whose performance is considered unacceptable based on the
 indicators adopted under Section 39.051];
 (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 5. Section 11.001, Education Code, is amended to
 read as follows:
 Sec. 11.001. ACCREDITATION. Each school district must be
 accredited by the agency as provided by Subchapter C [D], Chapter
 39.
 SECTION 6. Section 11.003(d), Education Code, is amended to
 read as follows:
 (d) The commissioner may require a district to enter into a
 cooperative shared services arrangement for administrative
 services if the commissioner determines:
 (1) that the district has failed to satisfy a
 financial accountability standard as determined by commissioner
 rule under Subchapter D [I], Chapter 39; and
 (2) that entering into a cooperative shared services
 arrangement would:
 (A) enable the district to enhance its
 performance on the financial accountability standard identified
 under Subdivision (1); and
 (B) promote the efficient operation of the
 district.
 SECTION 7. Section 11.1511(b), Education Code, is amended
 to read as follows:
 (b) The board shall:
 (1) seek to establish working relationships with other
 public entities to make effective use of community resources and to
 serve the needs of public school students in the community;
 (2) adopt a vision statement and comprehensive goals
 for the district and the superintendent and monitor progress toward
 those goals;
 (3) establish performance goals for the district
 concerning:
 (A) the academic and fiscal performance
 indicators under Subchapters C, D, and J [I], Chapter 39[,
 respectively]; and
 (B) any performance indicators adopted by the
 district;
 (4) ensure that the superintendent:
 (A) is accountable for achieving performance
 results;
 (B) recognizes performance accomplishments; and
 (C) takes action as necessary to meet performance
 goals;
 (5) adopt a policy to establish a district- and
 campus-level planning and decision-making process as required
 under Section 11.251;
 (6) publish an annual educational performance report
 as required under Section 39.306 [39.053];
 (7) adopt an annual budget for the district as
 required under Section 44.004;
 (8) adopt a tax rate each fiscal year as required under
 Section 26.05, Tax Code;
 (9) monitor district finances to ensure that the
 superintendent is properly maintaining the district's financial
 procedures and records;
 (10) ensure that district fiscal accounts are audited
 annually as required under Section 44.008;
 (11) publish an end-of-year financial report for
 distribution to the community;
 (12) conduct elections as required by law;
 (13) by rule, adopt a process through which district
 personnel, students or the parents or guardians of students, and
 members of the public may obtain a hearing from the district
 administrators and the board regarding a complaint;
 (14) make decisions relating to terminating the
 employment of district employees employed under a contract to which
 Chapter 21 applies, including terminating or not renewing an
 employment contract to which that chapter applies; and
 (15) carry out other powers and duties as provided by
 this code or other law.
 SECTION 8. Section 11.201(d), Education Code, is amended to
 read as follows:
 (d) The duties of the superintendent include:
 (1) assuming administrative responsibility and
 leadership for the planning, organization, operation, supervision,
 and evaluation of the education programs, services, and facilities
 of the district and for the annual performance appraisal of the
 district's staff;
 (2) except as provided by Section 11.202, assuming
 administrative authority and responsibility for the assignment,
 supervision, and evaluation of all personnel of the district other
 than the superintendent;
 (3) overseeing compliance with the standards for
 school facilities established by the commissioner under Section
 46.008;
 (4) initiating the termination or suspension of an
 employee or the nonrenewal of an employee's term contract;
 (5) managing the day-to-day operations of the district
 as its administrative manager, including implementing and
 monitoring plans, procedures, programs, and systems to achieve
 clearly defined and desired results in major areas of district
 operations;
 (6) preparing and submitting to the board of trustees
 a proposed budget as provided by Section 44.002 and rules adopted
 under that section, and administering the budget;
 (7) preparing recommendations for policies to be
 adopted by the board of trustees and overseeing the implementation
 of adopted policies;
 (8) developing or causing to be developed appropriate
 administrative regulations to implement policies established by
 the board of trustees;
 (9) providing leadership for the attainment and, if
 necessary, improvement of student performance in the district based
 on the indicators adopted under Sections 39.053 and 39.301 [Section
 39.051] and other indicators adopted by the commissioner [State
 Board of Education] or the district's board of trustees;
 (10) organizing the district's central
 administration;
 (11) consulting with the district-level committee as
 required under Section 11.252(f);
 (12) ensuring:
 (A) adoption of a student code of conduct as
 required under Section 37.001 and enforcement of that code of
 conduct; and
 (B) adoption and enforcement of other student
 disciplinary rules and procedures as necessary;
 (13) submitting reports as required by state or
 federal law, rule, or regulation;
 (14) providing joint leadership with the board of
 trustees to ensure that the responsibilities of the board and
 superintendent team are carried out; and
 (15) performing any other duties assigned by action of
 the board of trustees.
 SECTION 9. Section 11.203(d), Education Code, is amended to
 read as follows:
 (d) A principal who was employed as a principal at a campus
 that was [of a campus] rated academically unacceptable during the
 preceding school year [, as well as any person employed to replace
 that principal,] shall participate in the program and complete the
 program requirements not later than a date determined by the
 commissioner.
 SECTION 10. 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 [academic
 excellence] indicators adopted under Section 39.053 [39.051]. The
 district improvement plan must include provisions for:
 (1) a comprehensive needs assessment addressing
 district student performance on the student achievement [academic
 excellence] 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 [academic excellence]
 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, such as suicide prevention, conflict
 resolution, violence prevention, or 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
 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; and
 (8) formative evaluation criteria for determining
 periodically whether strategies are resulting in intended
 improvement of student performance.
 SECTION 11. 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 [academic
 excellence] indicators adopted under Section 39.053 [39.051] 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 [academic excellence]
 indicator system as described by Section 39.053 [39.051];
 (2) set the campus performance objectives based on the
 student achievement [academic excellence] 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; and
 (9) provide for a program to encourage parental
 involvement at the campus.
 SECTION 12. Section 11.255(a), Education Code, is amended
 to read as follows:
 (a) Each district-level planning and decision-making
 committee and each campus-level planning and decision-making
 committee for a junior, middle, or high school campus shall analyze
 information related to dropout prevention, including:
 (1) the results of the audit of dropout records
 required by Section 39.308 [39.055];
 (2) campus information related to graduation rates,
 dropout rates, high school equivalency certificate rates, and the
 percentage of students who remain in high school more than four
 years after entering grade level 9;
 (3) the number of students who enter a high school
 equivalency certificate program and:
 (A) do not complete the program;
 (B) complete the program but do not take the high
 school equivalency examination; or
 (C) complete the program and take the high school
 equivalency examination but do not obtain a high school equivalency
 certificate;
 (4) for students enrolled in grade levels 9 and 10,
 information related to academic credit hours earned, retention
 rates, and placements in alternative education programs and
 expulsions under Chapter 37; and
 (5) the results of an evaluation of each school-based
 dropout prevention program in the district.
 SECTION 13. Section 12.013(b), Education Code, is amended
 to read as follows:
 (b) A home-rule school district is subject to:
 (1) a provision of this title establishing a criminal
 offense;
 (2) a provision of this title relating to limitations
 on liability; and
 (3) a prohibition, restriction, or requirement, as
 applicable, imposed by this title or a rule adopted under this
 title, relating to:
 (A) the Public Education Information Management
 System (PEIMS) to the extent necessary to monitor compliance with
 this subchapter as determined by the commissioner;
 (B) educator certification under Chapter 21 and
 educator rights under Sections 21.407, 21.408, and 22.001;
 (C) criminal history records under Subchapter C,
 Chapter 22;
 (D) student admissions under Section 25.001;
 (E) school attendance under Sections 25.085,
 25.086, and 25.087;
 (F) inter-district or inter-county transfers of
 students under Subchapter B, Chapter 25;
 (G) elementary class size limits under Section
 25.112, in the case of any campus in the district that fails to
 satisfy any standard [is considered academically unacceptable]
 under Section 39.054(d) [39.132];
 (H) high school graduation under Section 28.025;
 (I) special education programs under Subchapter
 A, Chapter 29;
 (J) bilingual education under Subchapter B,
 Chapter 29;
 (K) prekindergarten programs under Subchapter E,
 Chapter 29;
 (L) safety provisions relating to the
 transportation of students under Sections 34.002, 34.003, 34.004,
 and 34.008;
 (M) computation and distribution of state aid
 under Chapters 31, 42, and 43;
 (N) extracurricular activities under Section
 33.081;
 (O) health and safety under Chapter 38;
 (P) public school accountability under
 Subchapters B, C, D, E, and J [G], Chapter 39;
 (Q) equalized wealth under Chapter 41;
 (R) a bond or other obligation or tax rate under
 Chapters 42, 43, and 45; and
 (S) purchasing under Chapter 44.
 SECTION 14. Section 12.056(b), Education Code, is amended
 to read as follows:
 (b) A campus or program for which a charter is granted under
 this subchapter is subject to:
 (1) a provision of this title establishing a criminal
 offense; and
 (2) a prohibition, restriction, or requirement, as
 applicable, imposed by this title or a rule adopted under this
 title, relating to:
 (A) the Public Education Information Management
 System (PEIMS) to the extent necessary to monitor compliance with
 this subchapter as determined by the commissioner;
 (B) criminal history records under Subchapter C,
 Chapter 22;
 (C) high school graduation under Section 28.025;
 (D) special education programs under Subchapter
 A, Chapter 29;
 (E) bilingual education under Subchapter B,
 Chapter 29;
 (F) prekindergarten programs under Subchapter E,
 Chapter 29;
 (G) extracurricular activities under Section
 33.081;
 (H) health and safety under Chapter 38; and
 (I) public school accountability under
 Subchapters B, C, E [D], and J [G], Chapter 39.
 SECTION 15. Section 12.1012(5), Education Code, is amended
 to read as follows:
 (5) "Management services" means services related to
 the management or operation of an open-enrollment charter school,
 including:
 (A) planning, operating, supervising, and
 evaluating the school's educational programs, services, and
 facilities;
 (B) making recommendations to the governing body
 of the school relating to the selection of school personnel;
 (C) managing the school's day-to-day operations
 as its administrative manager;
 (D) preparing and submitting to the governing
 body of the school a proposed budget;
 (E) recommending policies to be adopted by the
 governing body of the school, developing appropriate procedures to
 implement policies adopted by the governing body of the school, and
 overseeing the implementation of adopted policies; and
 (F) providing leadership for the attainment of
 student performance at the school based on the indicators adopted
 under Sections 39.053 and 39.301 [Section 39.051] or by the
 governing body of the school.
 SECTION 16. Section 12.104(b), Education Code, is amended
 to read as follows:
 (b) An open-enrollment charter school is subject to:
 (1) a provision of this title establishing a criminal
 offense; and
 (2) a prohibition, restriction, or requirement, as
 applicable, imposed by this title or a rule adopted under this
 title, relating to:
 (A) the Public Education Information Management
 System (PEIMS) to the extent necessary to monitor compliance with
 this subchapter as determined by the commissioner;
 (B) criminal history records under Subchapter C,
 Chapter 22;
 (C) reading instruments and accelerated reading
 instruction programs under Section 28.006;
 (D) [satisfactory performance on assessment
 instruments and to] accelerated instruction under Section 28.0211;
 (E) high school graduation requirements under
 Section 28.025;
 (F) special education programs under Subchapter
 A, Chapter 29;
 (G) bilingual education under Subchapter B,
 Chapter 29;
 (H) prekindergarten programs under Subchapter E,
 Chapter 29;
 (I) extracurricular activities under Section
 33.081;
 (J) discipline management practices or behavior
 management techniques under Section 37.0021;
 (K) health and safety under Chapter 38;
 (L) public school accountability under
 Subchapters B, C, D, E, and J [G], Chapter 39;
 (M) the requirement under Section 21.006 to
 report an educator's misconduct; and
 (N) intensive programs of instruction under
 Section 28.0213.
 SECTION 17. Section 12.1054(a), Education Code, is amended
 to read as follows:
 (a) A member of the governing body of a charter holder, a
 member of the governing body of an open-enrollment charter school,
 or an officer of an open-enrollment charter school is considered to
 be a local public official for purposes of Chapter 171, Local
 Government Code. For purposes of that chapter:
 (1) a member of the governing body of a charter holder
 or a member of the governing body or officer of an open-enrollment
 charter school is considered to have a substantial interest in a
 business entity if a person related to the member or officer in the
 third degree by consanguinity or affinity, as determined under
 Chapter 573, Government Code, has a substantial interest in the
 business entity under Section 171.002, Local Government Code;
 (2) notwithstanding any provision of Section
 12.1054(1), an employee of an open-enrollment charter school rated
 [as academically] acceptable or higher under Section 39.054
 [Chapter 39] for at least two of the preceding three school years
 may serve as a member of the governing body of the charter holder of
 the governing body of the school if the employees do not constitute
 a quorum of the governing body or any committee of the governing
 body; however, all members shall comply with the requirements of
 Sections 171.003-171.007, Local Government Code.
 SECTION 18. Section 12.1055(b), Education Code, is amended
 to read as follows:
 (b) Notwithstanding Subsection (a), if an open-enrollment
 charter school is rated [academically] acceptable or higher under
 Section 39.054 [Chapter 39] for at least two of the preceding three
 school years, then Chapter 573, Government Code, does not apply to
 that school; however, a member of the governing body of a charter
 holder or a member of the governing body or officer of an
 open-enrollment charter school shall comply with the requirements
 of Sections 171.003-171.007, Local Government Code, with respect to
 a personnel matter concerning a person related to the member or
 officer within the degree specified by Section 573.002, Government
 Code, as if the personnel matter were a transaction with a business
 entity subject to those sections, and persons defined under
 Sections 573.021-573.025, Government Code, shall not constitute a
 quorum of the governing body or any committee of the governing body.
 SECTION 19. 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 39.102(a) [39.131(a)], to the
 extent the commissioner determines necessary, if an
 open-enrollment charter school, as determined by a report issued
 under Section 39.058(b) [39.076(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 20. Section 18.006(a), Education Code, is amended
 to read as follows:
 (a) The commissioner shall develop and implement a system of
 accountability consistent with Chapter 39, where appropriate, to be
 used in assigning an annual performance rating to Job Corps diploma
 programs comparable to the ratings assigned to school districts
 under Section 39.054 [39.072]. The commissioner may develop and
 implement a system of distinction designations consistent with
 Subchapter G, Chapter 39, where appropriate, to be used in
 assigning distinction designations to Job Corps diploma programs
 comparable to the distinction designations assigned to campuses
 under Subchapter G, Chapter 39.
 SECTION 21. Section 21.354(e), Education Code, is amended
 to read as follows:
 (e) The appraisal of a principal shall include
 consideration of the performance of a principal's campus on the
 student achievement indicators established under Section 39.053
 [39.051] and the campus's objectives established under Section
 11.253, including performance gains of the campus and the
 maintenance of those gains.
 SECTION 22. Section 21.357(c), Education Code, is amended
 to read as follows:
 (c) A performance incentive awarded to a principal under
 this section must be distributed to the principal's school and used
 in the manner determined by the campus-level committee established
 under Section 11.253 in accordance with the requirements of Section
 39.264(a) [39.094(a)].
 SECTION 23. Section 21.4541(b), Education Code, is amended
 to read as follows:
 (b) A school district or campus is eligible to participate
 in the pilot program under this section if the district or campus
 meets the eligibility criteria established as provided by Section
 39.408 [39.358].
 SECTION 24. Section 21.4551(c), Education Code, is amended
 to read as follows:
 (c) The commissioner by rule shall require a teacher to
 attend a reading academy if the teacher provides instruction in
 reading, mathematics, science, or social studies to students at the
 sixth, seventh, or eighth grade level at a campus that fails to
 satisfy any standard [is considered academically unacceptable]
 under Section 39.054(d) [39.132] on the basis of student
 performance on the reading assessment instrument administered
 under Section 39.023(a) to students in any grade level at the
 campus.
 SECTION 25. Section 28.002, Education Code, is amended by
 adding Subsections (c-1), (d), and (q) to read as follows:
 (c-1)  The State Board of Education shall adopt rules
 requiring students enrolled in grade levels six, seven, and eight
 to complete at least one fine arts course during those grade levels
 as part of a district's fine arts curriculum.
 (d)  Each time the Texas Higher Education Coordinating Board
 revises the Internet database of the coordinating board's official
 statewide inventory of workforce education courses, the State Board
 of Education shall by rule revise the essential knowledge and
 skills of any corresponding career and technology education
 curriculum as provided by Subsection (c).
 (q)  Notwithstanding any other provision of this title, a
 school district may not vary the curriculum for a course in the
 required curriculum under Subsection (a) based on whether a student
 is enrolled in the minimum, recognized, or advanced high school
 program.
 SECTION 26. Section 28.006(j), Education Code, is amended
 to read as follows:
 (j) No more than 15 percent of the funds certified by the
 commissioner under Subsection (i) may be spent on indirect costs.
 The commissioner shall evaluate the programs that fail to meet the
 standard of performance under Section 39.301(c)(5) [39.051(b)(8)]
 and may implement interventions or sanctions under Subchapter E
 [G], Chapter 39. The commissioner may audit the expenditures of
 funds appropriated for purposes of this section. The use of the
 funds appropriated for purposes of this section shall be verified
 as part of the district audit under Section 44.008.
 SECTION 27. Section 28.014(d), Education Code, is amended
 to read as follows:
 (d) The agency, in coordination with the Texas Higher
 Education Coordinating Board, shall adopt a series of questions to
 be included in an end-of-course assessment instrument administered
 under Subsection (c) to be used for purposes of Section 51.3062.
 The questions must be developed in a manner consistent with any
 college readiness standards adopted under Sections 39.233 [39.113]
 and 51.3062. [A student's performance on a question adopted under
 this subsection may not be used to determine the student's
 performance on an end-of-course assessment instrument.]
 SECTION 28. Section 28.021, Education Code, is amended by
 adding Subsections (c), (d), and (e) to read as follows:
 (c)  In determining promotion under Subsection (a), a school
 district shall consider:
 (1) the recommendation of the student's teacher;
 (2) the student's grade in each subject or course;
 (3)  the student's score on an assessment instrument
 administered under Section 39.023(a), (b), or (l); and
 (4)  any other necessary academic information, as
 determined by the district.
 (d)  By the start of the school year, a district shall make
 public the requirements for student advancement under this section.
 (e)  The commissioner shall provide guidelines to districts
 based on best practices that a district may use when considering
 factors for promotion.
 SECTION 29. Section 28.0211, Education Code, is amended by
 amending Subsection (a) and adding Subsections (a-1), (a-2), (a-3),
 and (n) to read as follows:
 (a) Except as provided by Subsection (b) or (e), a student
 may not be promoted to:
 (1) [the fourth grade program to which the student
 would otherwise be assigned if the student does not perform
 satisfactorily on the third grade reading assessment instrument
 under Section 39.023;
 [(2)] the sixth grade program to which the student
 would otherwise be assigned if the student does not perform
 satisfactorily on the fifth grade mathematics and reading
 assessment instruments under Section 39.023; or
 (2) [(3)] the ninth grade program to which the student
 would otherwise be assigned if the student does not perform
 satisfactorily on the eighth grade mathematics and reading
 assessment instruments under Section 39.023.
 (a-1)  Each time a student fails to perform satisfactorily on
 an assessment instrument administered under Section 39.023(a) in
 the third, fourth, fifth, sixth, seventh, or eighth grade, the
 school district in which the student attends school shall provide
 to the student accelerated instruction in the applicable subject
 area. Accelerated instruction may require participation of the
 student before or after normal school hours and may include
 participation at times of the year outside normal school
 operations.
 (a-2)  A student who fails to perform satisfactorily on an
 assessment instrument specified under Subsection (a) and who is
 promoted to the next grade level must complete accelerated
 instruction required under Subsection (a-1) before placement in the
 next grade level. A student who fails to complete required
 accelerated instruction may not be promoted.
 (a-3)  The commissioner shall provide guidelines to
 districts on research-based best practices and effective
 strategies that a district may use in developing an accelerated
 instruction program.
 (n)  A student who is promoted by a grade placement committee
 under this section must be assigned in each subject in which the
 student failed to perform satisfactorily on an assessment
 instrument specified under Subsection (a) to a teacher who meets
 all state and federal qualifications to teach that subject and
 grade.
 SECTION 30. Section 28.025, Education Code, is amended by
 amending Subsections (a), (b), and (b-1) and adding Subsections
 (b-3) through (b-10) to read as follows:
 (a) The State Board of Education by rule shall determine
 curriculum requirements for the minimum, recommended, and advanced
 high school programs that are consistent with the required
 curriculum under Section 28.002. Subject to Subsection (b-1), the
 State Board of Education shall designate the specific courses in
 the foundation curriculum required for a student participating in
 the minimum, recommended, or advanced high school program. Except
 as provided by Subsection (b-1), the State Board of Education may
 not designate a specific course or a specific number of credits in
 the enrichment curriculum as requirements for the recommended
 program.
 (b) A school district shall ensure that each student enrolls
 in the courses necessary to complete the curriculum requirements
 identified by the State Board of Education under Subsection (a) for
 the recommended or advanced high school program unless the student,
 the student's parent or other person standing in parental relation
 to the student, and a school counselor or school administrator
 agree in writing signed by each party that the student should be
 permitted to take courses under the minimum high school program and
 the student:
 (1) is at least 16 years of age;
 (2)  has completed two credits required for graduation
 in each subject of the foundation curriculum under Section
 28.002(a)(1); or
 (3)  has failed to be promoted to the tenth grade one or
 more times as determined by the school district.
 (b-1) The State Board of Education by rule shall require
 that:
 (1) except as provided by Subsection (b-2), the
 curriculum requirements for the recommended and advanced high
 school programs under Subsection (a) include a requirement that
 students successfully complete:
 (A) four credits [courses] in each subject of the
 foundation curriculum under Section 28.002(a)(1), including at
 least one-half credit in government and at least one-half credit in
 economics to meet the social studies requirement;
 (B)  for the recommended high school program, two
 credits in the same language in a language other than English under
 Section 28.002(a)(2)(A) and, for the advanced high school program,
 three credits in the same language in a language other than English
 under Section 28.002(a)(2)(A); and
 (C)  for the recommended high school program, six
 elective credits and, for the advanced high school program, five
 elective credits; [and]
 (2) one or more credits [courses] offered in the
 required curriculum for the recommended and advanced high school
 programs include a research writing component; and
 (3)  the curriculum requirements for the minimum,
 recommended, and advanced high school programs under Subsection (a)
 include a requirement that students successfully complete:
 (A)  one credit in fine arts under Section
 28.002(a)(2)(D); and
 (B)  one credit in physical education under
 Section 28.002(a)(2)(C).
 (b-3)  In adopting rules to provide students with the option
 described by Subsection (b-1)(1)(A), the State Board of Education
 must approve a variety of mathematics and science courses that may
 be taken after the completion of Algebra II and physics to comply
 with the recommended program requirements.
 (b-4)  A school district may offer the curriculum described
 in Subsection (b-1)(1)(A) in an applied manner. Courses delivered
 in an applied manner must cover the essential knowledge and skills,
 and the student shall be administered the applicable end-of-course
 assessment instrument as provided by Sections 39.023(c) and 39.025.
 (b-5)  A school district may offer a mathematics or science
 course to be taken by a student after completion of Algebra II and
 physics to comply with the recommended program requirements in
 Subsection (b-1)(1)(A). A course approved under this subsection
 must be endorsed by an institution of higher education as a course
 for which the institution would award course credit or as a
 prerequisite for a course for which the institution would award
 course credit.
 (b-6)  Before a student's parent or other person standing in
 parental relation to the student may agree that the student be
 permitted to take courses under the minimum high school program as
 provided by Subsection (b), a school district must provide written
 notice to the parent or person standing in parental relation
 explaining the benefits of the recommended high school program.
 The notice shall be developed by the agency and must:
 (1) be printed in English and Spanish; and
 (2)  require that the student's parent or person
 standing in parental relation to the student sign a confirmation of
 receipt and return the confirmation to the student's campus.
 (b-7)  The State Board of Education, in coordination with the
 Texas Higher Education Coordinating Board, shall adopt rules to
 ensure that a student may comply with the curriculum requirements
 under the minimum, recommended, or advanced high school program for
 each subject of the foundation curriculum under Section
 28.002(a)(1) and for languages other than English under Section
 28.002(a)(2)(A) by successfully completing appropriate courses in
 the core curriculum of an institution of higher education under
 Section 61.822.
 (b-8)  A student agreeing to take courses under the minimum
 high school program as provided by Subsection (b) may, upon
 request, resume taking courses under the recommended high school
 program.
 (b-9)  The agency shall establish a pilot program allowing a
 student attending school in a county with a population of more than
 one million and in which more than 80 percent of the population
 resides in a single municipality to satisfy the fine arts credit
 required under Subsection (b-1)(3)(A) by participating in a fine
 arts program not provided by the school district in which the
 student is enrolled.  The fine arts program may be provided on or
 off a school campus and outside the regular school day. Not later
 than December 1, 2010, the agency shall provide to the legislature a
 report regarding the pilot program, including the feasibility of
 expanding the pilot program statewide.
 (b-10)  A school district, with the approval of the
 commissioner, may allow a student to comply with the curriculum
 requirements for the physical education credit required under
 Subsection (b-1)(3)(B) by participating in a private or
 commercially sponsored physical activity program provided on or off
 a school campus and outside the regular school day.
 SECTION 31. Section 28.0252(b), Education Code, is amended
 to read as follows:
 (b) If the commissioner develops a standard method under
 this section, a school district shall use the standard method to
 compute a student's high school grade point average[, except that
 to the extent of a conflict between that method and the method
 adopted under Section 51.807, the student's grade point average
 computed in accordance with the method established under Section
 51.807 shall be used in determining the student's eligibility for
 university admission under Subchapter U, Chapter 51].
 SECTION 32. Subchapter B, Chapter 28, Education Code, is
 amended by adding Section 28.0253 to read as follows:
 Sec. 28.0253.  PILOT PROGRAM: HIGH SCHOOL DIPLOMAS FOR
 STUDENTS WHO DEMONSTRATE EARLY READINESS FOR COLLEGE. (a) In this
 section:
 (1)  "Institution of higher education" has the meaning
 assigned by Section 61.003.
 (2)  "Research university" means an institution of
 higher education that is designated as a research university under
 the Texas Higher Education Coordinating Board's accountability
 system.
 (b)  A research university that chooses to participate in the
 pilot program shall:
 (1)  not later than September 1 of each year, make
 available on the university's Internet website detailed standards
 for use in the program regarding:
 (A)  the specific competencies that demonstrate a
 student's mastery of each subject area for which the Texas Higher
 Education Coordinating Board and the commissioner have adopted
 college readiness standards;
 (B)  the specific competencies that demonstrate a
 student's mastery of a language other than English; and
 (C)  acceptable assessments or other means by
 which a student may demonstrate the student's early readiness for
 college with respect to each subject area and the language
 described by this subdivision, subject to Subsection (c);
 (2)  partner with at least 10 school districts that
 reflect the geographic diversity of this state and the student
 compositions of which reflect the socioeconomic diversity of this
 state; and
 (3)  assist school administrators, school counselors,
 and other educators in each of those school districts in designing
 the specific requirements of and implementing the program in the
 district.
 (c)  The assessments or other means filed by a research
 university under Subsection (b)(1)(C) must be equivalent to the
 assessments or other means the university uses to place students at
 the university in courses that may be credited toward a degree
 requirement.
 (d)  A research university that partners with a school
 district under this section shall enter into an agreement with the
 district under which the university and district agree that the
 district will assess a student's mastery of the subject areas
 described by Subsection (b)(1) and a language other than English in
 accordance with the standards the university filed under Subsection
 (b)(1). The district may issue a high school diploma to a student
 under the program if, using the standards, the student demonstrates
 mastery of and early readiness for college in each of those subject
 areas and in a language other than English, notwithstanding any
 other local or state requirements.
 (e)  A student who receives a high school diploma through the
 pilot program is considered to have completed the recommended high
 school program adopted under Section 28.025(a). The student is not
 guaranteed admission to any institution of higher education or to
 any academic program at an institution of higher education solely
 on the basis of having received the diploma through the program.
 (f)  A research university that participates in the pilot
 program shall enter into an agreement with an education research
 center established under Section 1.005 to conduct an evaluation of
 the program with respect to that university and the school
 districts with which the university partners. Not later than
 January 1, 2013, the education research center shall provide a
 written report of the evaluation to the commissioner and the
 commissioner of higher education and make the report available on
 the center's Internet website. The report may include an analysis
 of the effects of the program on the university's admissions review
 process.
 SECTION 33. 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 [academic excellence] indicators adopted under
 Section 39.053 [39.051(a)], 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 34. Section 29.094(c), Education Code, is amended
 to read as follows:
 (c) A campus may apply to the commissioner to participate in
 the pilot program. The commissioner may select for participation
 in the pilot program only campuses that have failed to improve
 student performance in reading according to standards established
 by the commissioner. The standards established by the commissioner
 for purposes of this subsection must be based on reading
 performance standards considered [required] for student promotion
 under Section 28.021 [28.0211].
 SECTION 35. Section 29.095(a)(1), Education Code, as added
 by Chapter 1058 (H.B. 2237), Acts of the 80th Legislature, Regular
 Session, 2007, is amended to read as follows:
 (1) "Council" means the High School Completion and
 Success Initiative Council established under Subchapter M [L],
 Chapter 39.
 SECTION 36. Section 29.095(c), Education Code, as added by
 Chapter 1058 (H.B. 2237), Acts of the 80th Legislature, Regular
 Session, 2007, is amended to read as follows:
 (c) The commissioner may award a grant in an amount not to
 exceed $5,000 in a school year to a school district on behalf of a
 student club at a district high school campus that is eligible under
 the criteria established under Section 39.408 [39.358]. To be
 eligible for a grant, the student club and the club's sponsor must
 be sanctioned by the campus and district. A grant awarded under this
 program must be matched by other federal, state, or local funds,
 including donations, in an amount equal to the amount of the grant.
 A district shall seek donations or sponsorships from local
 businesses or community organizations to raise the matching
 funds. The commissioner may award a grant on behalf of more than
 one student club at a campus in the same school year.
 SECTION 37. Sections 29.096(a) and (c), Education Code, are
 amended to read as follows:
 (a) In this section, "council" means the High School
 Completion and Success Initiative Council established under
 Subchapter M [L], Chapter 39.
 (c) A school district or open-enrollment charter school is
 eligible to participate and receive a grant under this section
 under the eligibility criteria established under Section 39.408
 [39.358].
 SECTION 38. Section 29.097(a)(1), Education Code, is
 amended to read as follows:
 (1) "Council" means the High School Completion and
 Success Initiative Council established under Subchapter M [L],
 Chapter 39.
 SECTION 39. Section 29.097(c), Education Code, is amended
 to read as follows:
 (c) The commissioner may select for participation in the
 pilot program only a campus that is eligible under the criteria
 established under Section 39.408 [39.358].
 SECTION 40. Section 29.098(c), Education Code, is amended
 to read as follows:
 (c) The commissioner of education may select for
 participation in the pilot program only a campus that is eligible
 under the criteria established under Section 39.408 [39.358].
 SECTION 41. Section 29.182(b), Education Code, is amended
 to read as follows:
 (b) The state plan must include procedures designed to
 ensure that:
 (1) all secondary and postsecondary students have the
 opportunity to participate in career and technology education
 programs;
 (2) the state complies with requirements for
 supplemental federal career and technology education funding; and
 (3) career and technology education is established as
 a part of the total education system of this state and constitutes
 an option for student learning that provides a rigorous course of
 study consistent with the required curriculum under Section 28.002
 and under which a student may receive specific education in a career
 and technology program that:
 (A)  incorporates competencies leading to
 academic and technical skill attainment;
 (B) leads to:
 (i)  an industry-recognized license,
 credential, or certificate; or
 (ii)  at the postsecondary level, an
 associate or baccalaureate degree;
 (C)  includes opportunities for students to earn
 college credit for coursework; and
 (D)  includes, as an integral part of the program,
 participation by students and teachers in activities of career and
 technical student organizations supported by the agency and the
 State Board of Education.
 SECTION 42. Section 29.202(a), Education Code, is amended
 to read as follows:
 (a) A student is eligible to receive a public education
 grant or to attend another public school in the district in which
 the student resides under this subchapter if the student is
 assigned to attend a public school campus:
 (1) at which 50 percent or more of the students did not
 perform satisfactorily on an assessment instrument administered
 under Section 39.023(a) or (c) in any two of the preceding three
 years; or
 (2) that [was], at any time in the preceding three
 years, failed to satisfy any standard [considered academically
 unacceptable] under Section 39.054(d) [39.132].
 SECTION 43. Section 29.904(d), Education Code, is amended
 to read as follows:
 (d) A plan developed under this section:
 (1) must establish clear, achievable goals for
 increasing the percentage of the school district's graduating
 seniors, particularly the graduating seniors attending a high
 school described by Subsection (a), who enroll in an institution of
 higher education for the academic year following graduation;
 (2) must establish an accurate method of measuring
 progress toward the goals established under Subdivision (1) that
 may include the percentage of district high school students and the
 percentage of students attending a district high school described
 by Subsection (a) who:
 (A) are enrolled in a course for which a student
 may earn college credit, such as an advanced placement or
 international baccalaureate course or a course offered through
 concurrent enrollment in high school and at an institution of
 higher education;
 (B) are enrolled in courses that meet the
 curriculum requirements for the recommended or advanced high school
 program as determined under Section 28.025;
 (C) have submitted a free application for federal
 student aid (FAFSA);
 (D) are exempt under Section 51.3062(p) or (q)
 [51.306(l) or (m)] from administration of an assessment [a test]
 instrument under Section 51.3062 [51.306] or have performed
 successfully on an assessment [a test] instrument under Section
 51.3062 [51.306];
 (E) graduate from high school;
 (F) graduate from an institution of higher
 education; and
 (G) have taken college entrance examinations and
 the average score of those students on the examinations;
 (3) must cover a period of at least five years; and
 (4) may be directed at district students at any level
 of primary or secondary education.
 SECTION 44. Section 29.906(e), Education Code, is amended
 to read as follows:
 (e) The agency shall:
 (1) maintain a list of character education programs
 that school districts have implemented that meet the criteria under
 Subsection (b);
 (2) based on data reported by districts, annually
 designate as a Character Plus School each school that provides a
 character education program that:
 (A) meets the criteria prescribed by Subsection
 (b); and
 (B) is approved by the committee selected under
 Subsection (c); and
 (3) include in the report required under Section
 39.332 [39.182]:
 (A) based on data reported by districts, the
 impact of character education programs on student discipline and
 academic achievement; and
 (B) other reported data relating to character
 education programs the agency considers appropriate for inclusion.
 SECTION 45. Sections 29.918(a) and (c), Education Code, are
 amended to read as follows:
 (a) Notwithstanding Section 39.234 [39.114] or 42.152, a
 school district or open-enrollment charter school with a high
 dropout rate, as determined by the commissioner, must submit a plan
 to the commissioner describing the manner in which the district or
 charter school intends to use the compensatory education allotment
 under Section 42.152 and the high school allotment under Section
 42.2516(b)(3) for developing and implementing research-based
 strategies for dropout prevention. The district or charter school
 shall submit the plan not later than December 1 of each school year
 preceding the school year in which the district or charter school
 will receive the compensatory education allotment or high school
 allotment to which the plan applies.
 (c) The commissioner shall adopt rules to administer this
 section. The commissioner may impose interventions or sanctions
 under Section 39.102 [39.131] or 39.104 [39.1321] if a school
 district or open-enrollment charter school fails to timely comply
 with this section.
 SECTION 46. Section 30A.101, Education Code, is amended to
 read as follows:
 Sec. 30A.101. ELIGIBILITY TO ACT AS PROVIDER SCHOOL
 DISTRICT OR SCHOOL. (a) A school district is eligible to act as a
 provider school district under this chapter only if the district is
 rated [academically] acceptable or higher under Section 39.054
 [39.072].
 (b) An open-enrollment charter school is eligible to act as
 a provider school under this chapter only if the school is rated
 acceptable [recognized] or higher under Section 39.054 [39.072],
 and may serve as a provider school only:
 (1) to a student within the school district in which
 the school is located or within its service area, whichever is
 smaller; or
 (2) to another student in the state through an
 agreement with the administering authority under Section 30A.153.
 SECTION 47. Section 32.157(a), Education Code, is amended
 to read as follows:
 (a) After the expiration of the pilot project, the agency
 may review the pilot project based on the annual reports the agency
 receives from the board of trustees of participating school
 districts. The agency may include the review of the pilot project
 in the comprehensive annual report required under Section 39.332
 [39.182] that covers the 2010-2011 school year.
 SECTION 48. Section 32.252(b), Education Code, is amended
 to read as follows:
 (b) The portal must serve as a single point of access to
 educational resources other than student assessment data
 accessible through the student assessment data portal under Section
 32.258. In addition to any other purpose specified by this
 subchapter or any other educational purpose, the portal may be used
 to:
 (1) alleviate inequities in access to educational
 resources by providing access to on-line courses;
 (2) improve student academic performance by providing
 access to tutorial materials, instructional materials that have
 been shown to improve academic performance, and other interactive
 materials, including materials that assess an individual student's
 knowledge and prepare the student for the administration of a
 standardized assessment instrument, including an assessment
 instrument administered under Section 39.023;
 (3) provide school districts with access to
 administrative software and other electronic tools designed to
 promote administrative efficiency and intra-district
 communication; or
 (4) [provide secure access to student assessment data;
 or
 [(5)] provide links to appropriate educational
 resources and experts available through the Internet.
 SECTION 49. Section 32.258, Education Code, is amended to
 read as follows:
 Sec. 32.258. STUDENT ASSESSMENT DATA; DATA PORTAL.
 (a) The agency shall establish and maintain a student assessment
 data portal for use by school districts, teachers, parents,
 students, and public institutions of higher education. The
 agency shall [may] establish a secure, interoperable system to be
 implemented through the portal under which:
 (1)  a student or the student's parent or other person
 standing in parental relationship can easily access the student's
 individual assessment data;
 (2) an authorized employee of a school district,
 including a district teacher, [districts] can readily access
 individual [student] assessment data of district students for use
 in developing strategies for improving student performance; and
 (3)  an authorized employee of a public institution of
 higher education can readily access individual assessment data of
 students applying for admission for use in developing strategies
 for improving student performance.
 (b)  The system established under Subsection (a) shall
 provide a means for a student or the student's parent or other
 person standing in parental relationship to track the student's
 progress on assessment instrument requirements for graduation.
 (c)  The agency shall establish an interoperable system to be
 implemented through the portal under which general student
 assessment data is easily accessible to the public.
 (d)  Student assessment data provided under this section
 must:
 (1)  be available on or before the first instructional
 day of the school year following the year in which the data is
 collected; and
 (2)  include student performance data on assessment
 instruments over multiple years, beginning with the 2007-2008
 school year, including any data indicating progress in student
 achievement.
 (e) Each [(b) In establishing the] system established
 under [required by] this section must permit comparisons of[, the
 agency shall seek to further the goal of providing school districts
 with access to] student performance information at the classroom,
 campus, district, and state levels [level].
 SECTION 50. Section 39.023, Education Code, is amended by
 adding Subsections (a-1), (o), and (p) and amending Subsections
 (b), (c), (c-4), (d), (e), (l), and (m) to read as follows:
 (a-1)  The agency shall develop assessment instruments
 required under Subsection (a) in a manner that allows, to the extent
 practicable:
 (1)  the score a student receives to provide reliable
 information relating to a student's satisfactory performance for
 each performance standard under Section 39.0241; and
 (2)  an appropriate range of performances to serve as a
 valid indication of growth in student achievement.
 (b) The agency shall develop or adopt appropriate
 criterion-referenced alternative assessment instruments to be
 administered to each student in a special education program under
 Subchapter A, Chapter 29, [who receives modified instruction in the
 essential knowledge and skills identified under Section 28.002 for
 the assessed subject but] for whom an assessment instrument adopted
 under Subsection (a), even with allowable accommodations
 [modifications], would not provide an appropriate measure of
 student achievement, as determined by the student's admission,
 review, and dismissal committee. [The assessment instruments
 required under this subsection must assess essential knowledge and
 skills and growth in the subjects of reading, mathematics, and
 writing. A student's admission, review, and dismissal committee
 shall determine whether any allowable modification is necessary in
 administering to the student an assessment instrument required
 under this subsection. The assessment instruments required under
 this subsection shall be administered on the same schedule as the
 assessment instruments administered under Subsection (a).]
 (c) The agency shall also adopt end-of-course assessment
 instruments for secondary-level courses in Algebra I, Algebra II,
 geometry, biology, chemistry, physics, English I, English II,
 English III, world geography, world history, and United States
 history. The Algebra I, Algebra II, and geometry end-of-course
 assessment instruments must be administered with the aid of
 technology. A school district shall comply with State Board of
 Education rules regarding administration of the assessment
 instruments listed in this subsection and shall adopt a policy that
 requires a student's performance on an end-of-course assessment
 instrument for a course listed in this subsection in which the
 student is enrolled to account for 15 percent of the student's final
 grade for the course. If a student retakes an end-of-course
 assessment instrument for a course listed in this subsection, as
 provided by Section 39.025, a school district is not required to use
 the student's performance on the subsequent administration or
 administrations of the assessment instrument to determine the
 student's final grade for the course. If a student is in a special
 education program under Subchapter A, Chapter 29, the student's
 admission, review, and dismissal committee shall determine whether
 any allowable modification is necessary in administering to the
 student an assessment instrument required under this subsection [or
 whether the student should be exempted under Section 39.027(a)(2)].
 The State Board of Education shall administer the assessment
 instruments. The State Board of Education shall adopt a schedule
 for the administration of end-of-course assessment instruments
 that complies with the requirements of Subsection (c-3).
 (c-4) To the extent practicable and subject to Section
 39.024, the agency shall ensure that each end-of-course assessment
 instrument adopted under Subsection (c) is:
 (1) developed in a manner that measures a student's
 performance under the college readiness standards established
 under Section 28.008; and
 (2) validated by national postsecondary education
 experts for college readiness content and performance standards.
 (d) The commissioner may participate in multistate efforts
 to develop voluntary standardized end-of-course assessment
 instruments. The commissioner by rule may require a school
 district to administer an end-of-course assessment instrument
 developed through the multistate efforts. The admission, review,
 and dismissal committee of a student in a special education program
 under Subchapter A, Chapter 29, shall determine whether any
 allowable modification is necessary in administering to the student
 an end-of-course assessment instrument [or whether the student
 should be exempted under Section 39.027(a)(2)].
 (e) Under rules adopted by the State Board of Education,
 every third year, the agency shall release the questions and answer
 keys to each assessment instrument administered under Subsection
 (a), (b), (c), (d), or (l), excluding any assessment instrument
 administered to a student for the purpose of retaking the
 assessment instrument, after the last time the instrument is
 administered for that school year. To ensure a valid bank of
 questions for use each year, the agency is not required to release a
 question that is being field-tested and was not used to compute the
 student's score on the instrument. The agency shall also release,
 under board rule, each question that is no longer being
 field-tested and that was not used to compute a student's score.
 (l) The State Board of Education shall adopt rules for the
 administration of the assessment instruments adopted under
 Subsection (a) in Spanish to students in grades three through five
 [six] who are of limited English proficiency, as defined by Section
 29.052, whose primary language is Spanish, and who are not
 otherwise exempt from the administration of an assessment
 instrument under Section 39.027(a)(1) or (2) [39.027(a)(3) or (4)].
 Each student of limited English proficiency whose primary language
 is Spanish, other than a student to whom Subsection (b) applies, may
 be assessed using assessment instruments in Spanish under this
 subsection for up to three years or assessment instruments in
 English under Subsection (a). The language proficiency assessment
 committee established under Section 29.063 shall determine which
 students are administered assessment instruments in Spanish under
 this subsection.
 (m) The commissioner by rule shall develop procedures under
 which the language proficiency assessment committee established
 under Section 29.063 shall determine which students are exempt from
 the administration of the assessment instruments under Section
 39.027(a)(1) or (2) [39.027(a)(3) and (4)]. The rules adopted
 under this subsection shall ensure that the language proficiency
 assessment committee provides that the exempted students are
 administered the assessment instruments under Subsections (a) and
 (c) at the earliest practical date.
 (o)  The commissioner of education and the commissioner of
 higher education shall study the feasibility of allowing students
 to satisfy end-of-course requirements under Subsection (c) by
 successfully completing a dual credit course through an institution
 of higher education. Not later than December 1, 2010, the
 commissioner of education and the commissioner of higher education
 shall make recommendations to the legislature based on the study
 conducted under this subsection.
 (p)  On or before September 1 of each year, the commissioner
 shall make the following information available on the agency's
 Internet website for each assessment instrument administered under
 Subsection (a), (c), or (l):
 (1)  the number of questions on the assessment
 instrument;
 (2)  the number of questions that must be answered
 correctly to achieve satisfactory performance as determined by the
 commissioner under Section 39.0241(a);
 (3)  the number of questions that must be answered
 correctly to achieve satisfactory performance under the college
 readiness performance standard as provided by Section 39.0241; and
 (4) the corresponding scale scores.
 SECTION 51. Section 39.0233(d), Education Code, is amended
 to read as follows:
 (d) The questions adopted under this section may not [must]
 be administered in a separate section of the end-of-course
 assessment instrument [in which the questions are included].
 SECTION 52. Section 39.0234(a), Education Code, is amended
 to read as follows:
 (a) The agency shall ensure that assessment instruments
 required under Section 39.023 are capable of being administered by
 computer. The commissioner may not require a school district or
 open-enrollment charter school to administer an assessment
 instrument by computer.
 SECTION 53. Subchapter B, Chapter 39, Education Code, is
 amended by amending Section 39.024 and adding Sections 39.0241 and
 39.0242 to read as follows:
 Sec. 39.024. MEASURE OF COLLEGE READINESS.  (a) In this
 section, "college readiness" means the level of preparation a
 student must attain in English language arts and mathematics
 courses to enroll and succeed, without remediation, in an
 entry-level general education course for credit in that same
 content area for a baccalaureate degree or associate degree program
 at:
 (1)  a general academic teaching institution, as
 defined by Section 61.003, other than a research institution, as
 categorized under the Texas Higher Education Coordinating Board's
 accountability system; or
 (2)  a postsecondary educational institution that
 primarily offers associate degrees or certificates or credentials
 other than baccalaureate or advanced degrees.
 (b)  The agency and the Texas Higher Education Coordinating
 Board shall ensure that the Algebra II and English III
 end-of-course assessment instruments required under Section
 39.023(c) are developed to be capable of, beginning with the
 2011-2012 school year, measuring college readiness.
 (c)  Before the beginning of the 2011-2012 school year, the
 agency, in collaboration with the Texas Higher Education
 Coordinating Board, shall gather data and conduct research studies
 to substantiate the correlation between a certain level of
 performance by students on the Algebra II and English III
 end-of-course assessment instruments and college readiness.
 (d)  Studies under Subsection (c) must include an evaluation
 of any need for remediation courses to facilitate college
 readiness.
 (e)  Based on the results of the studies conducted under
 Subsection (c), the commissioner of education and the commissioner
 of higher education shall establish student performance standards
 for the Algebra II and English III end-of-course assessment
 instruments indicating that students have attained college
 readiness.
 (f)  The agency, in collaboration with the Texas Higher
 Education Coordinating Board, shall conduct research studies
 similar to the studies conducted under Subsection (c) for the
 appropriate science and social studies end-of-course assessment
 instruments.  If the commissioner of education, in collaboration
 with the commissioner of higher education, determines that the
 research studies conducted under this subsection substantiate a
 correlation between a certain level of performance by students on
 science and social studies end-of-course assessment instruments
 and college readiness, the commissioner of education, in
 collaboration with the commissioner of higher education, as soon as
 practicable, may establish student performance standards for the
 science and social studies end-of-course assessment instruments
 indicating that students have attained college readiness.
 (f-1)  Not later than December 1, 2012, the agency and the
 Texas Higher Education Coordinating Board shall deliver to the
 lieutenant governor, the speaker of the house of representatives,
 and the clerks of the standing committees of the senate and the
 house of representatives with primary jurisdiction over public
 education and higher education a report that includes:
 (1)  an analysis of the feasibility of establishing
 college readiness performance standards for science and social
 studies end-of-course assessment instruments; and
 (2)  a summary of any implementation procedures adopted
 for each standard.
 (f-2)  Subsection (f-1) and this subsection expire January
 1, 2013.
 (g)  The agency, in collaboration with the Texas Higher
 Education Coordinating Board, shall continue to gather data to
 perform studies as provided under Subsections (c) and (f) at least
 once every three years.
 (h)  The agency and the Texas Higher Education Coordinating
 Board shall periodically review the college readiness performance
 standards established under this section and compare the
 performance standards to performance standards established
 nationally and internationally for comparable assessment
 instruments. Following each review, the agency and the Texas
 Higher Education Coordinating Board shall deliver to the lieutenant
 governor, the speaker of the house of representatives, and the
 clerks of the standing committees of the senate and the house of
 representatives with primary jurisdiction over public education
 and higher education a report on the results of the review
 indicating whether the college readiness performance standards
 established under this section are sufficiently rigorous to prepare
 students in this state to compete academically with students
 nationally and internationally. If the agency and the Texas Higher
 Education Coordinating Board determine that the college readiness
 performance standards established under this section are not
 sufficiently rigorous, the agency and the Texas Higher Education
 Coordinating Board shall recommend changes to the college readiness
 performance standards.
 (i)  The agency shall gather data and conduct research to
 substantiate any correlation between a certain level of performance
 by students on end-of-course assessment instruments and success in:
 (1) military service; or
 (2)  a workforce training, certification, or other
 credential program at a postsecondary educational institution that
 primarily offers associate degrees or certificates or credentials
 other than baccalaureate or advanced degrees.
 Sec. 39.0241. [SATISFACTORY] PERFORMANCE STANDARDS.
 (a) The commissioner [Except as otherwise provided by this
 subsection, the State Board of Education] shall determine the level
 of performance considered to be satisfactory on the assessment
 instruments.
 (a-1)  The commissioner of education, in collaboration with
 the commissioner of higher education, shall determine the level of
 performance necessary to indicate college readiness, as defined by
 Section 39.024(a).
 (a-2)  For the purpose of establishing performance across
 grade levels, the commissioner shall establish:
 (1)  the performance standards for the Algebra II and
 English III end-of-course assessment instruments, as provided
 under Section 39.024(b) and under Subsection (a);
 (2)  the performance standards for the Algebra I and
 English II end-of-course assessment instruments, as determined
 based on studies under Section 39.0242 that correlate student
 performance on the Algebra I and English II end-of-course
 assessment instruments with student performance on the Algebra II
 and English III assessment instruments;
 (3)  the performance standards for the English I
 end-of-course assessment instrument, as determined based on
 studies under Section 39.0242 that correlate student performance on
 the English I end-of-course assessment instrument with student
 performance on the English II assessment instrument;
 (4)  the performance standards for the grade eight
 assessment instruments, as determined based on studies under
 Section 39.0242 that correlate student performance on the grade
 eight assessment instruments with student performance on the
 Algebra I and English I end-of-course assessment instruments in the
 same content area; and
 (5)  the performance standards on the assessment
 instruments in each of grades three through seven, as determined
 based on studies under Section 39.0242 that correlate student
 performance in the same content area on the assessment instrument
 for each grade with student performance on the assessment
 instrument in the succeeding grade.
 [The admission, review, and dismissal committee of a student
 being assessed under Section 39.023(b) shall determine the level of
 performance considered to be satisfactory on the assessment
 instruments administered to that student in accordance with
 criteria established by agency rule.]
 (c) The agency may [shall] develop study guides for the
 assessment instruments administered under Sections 39.023(a) and
 (c). To assist parents in providing assistance during the period
 that school is recessed for summer, each school district shall make
 [distribute] the study guides available to parents of students who
 do not perform satisfactorily as determined by the commissioner
 under Subsection (a) on one or more parts of an assessment
 instrument administered under this subchapter.
 (d) The agency shall develop and make available teacher
 training materials and other teacher training resources to assist
 teachers in enabling students of limited English proficiency to
 meet state performance expectations. The teacher training
 resources shall be designed to support intensive, individualized,
 and accelerated instructional programs developed by school
 districts for students of limited English proficiency.
 (e) The commissioner shall retain a portion of the total
 amount of funds allotted under Section 42.152(a) that the
 commissioner considers appropriate to finance activities under
 Subsection [Subsections] (c) and may retain a portion for
 activities under Subsection (d) and for intensive programs of
 instruction for students of limited English proficiency offered by
 school districts and shall reduce each district's allotment
 proportionately.
 Sec. 39.0242.  PERFORMANCE STANDARDS: RESEARCH STUDIES AND
 IMPLEMENTATION OF STANDARDS. (a)  During the 2009-2010 and
 2010-2011 school years, the agency shall collect data through:
 (1)  the annual administration of assessment
 instruments required under Section 39.023(a) in grades three
 through eight; and
 (2)  the administration to a sufficiently large sample
 of students throughout the state of end-of-course assessment
 instruments required under Section 39.023(c) for the purpose of
 setting performance standards.
 (b)  Before the beginning of the 2011-2012 school year, the
 agency shall analyze the data collected under Subsection (a) to
 substantiate:
 (1)  the correlation between satisfactory student
 performance for each performance standard under Section 39.0241 on
 the grade three, four, five, six, or seven assessment instruments
 with satisfactory performance under the same performance standard
 on the assessment instruments in the same content area for the next
 grade level;
 (2)  the correlation between satisfactory student
 performance for each performance standard under Section 39.0241 on
 the grade eight assessment instruments with satisfactory
 performance under the same performance standard on the Algebra I
 and English I end-of-course assessment instruments in the same
 content area;
 (3)  the correlation between satisfactory student
 performance for each performance standard under Section 39.0241 on
 the English I end-of-course assessment instrument with
 satisfactory performance under the same performance standard on the
 English II end-of-course assessment instrument;
 (4)  the correlation between satisfactory student
 performance for each performance standard under Section 39.0241 on
 the English II end-of-course assessment instrument with
 satisfactory performance under the same performance standard on the
 English III end-of-course assessment instrument; and
 (5)  the correlation between satisfactory student
 performance for each performance standard under Section 39.0241 on
 the Algebra I end-of-course assessment instrument with
 satisfactory performance under the same performance standard on the
 Algebra II end-of-course assessment instrument.
 (c)  Studies under this section must include an evaluation of
 any need for remediation courses to facilitate college readiness.
 (d)  The agency shall continue to gather data and perform
 studies as provided under this section at least once every three
 years. If the data do not support the correlation between student
 performance standards and college readiness, the commissioner of
 education, in collaboration with the commissioner of higher
 education, shall revise the standard of performance considered to
 be satisfactory.
 (e)  Based on the data collected and studies performed
 periodically under Subsection (d), the commissioner shall increase
 the rigor of the performance standard established under Section
 39.0241(a) as the commissioner determines necessary.
 SECTION 54. Section 39.025, Education Code, is amended by
 amending Subsections (a), (a-1), (b), (b-1), (b-2), and (f) and
 adding Subsections (a-2), (a-3), and (c-1) to read as follows:
 (a) The commissioner shall adopt rules requiring a student
 participating in the recommended or advanced high school program to
 be administered each end-of-course assessment instrument listed in
 Section 39.023(c) and requiring a student participating in the
 minimum high school program to be administered an end-of-course
 assessment instrument listed in Section 39.023(c) only for a course
 in which the student is enrolled and for which an end-of-course
 assessment instrument is administered. A student is required to
 achieve, in each subject in the foundation curriculum under Section
 28.002(a)(1), a cumulative score that is at least equal to the
 product of the number of end-of-course assessment instruments
 administered to the student in that subject and a scale score that
 indicates satisfactory performance, as determined by the
 commissioner under Section 39.0241(a) [70, with each end-of-course
 assessment instrument scored on a scale of 100]. A student must
 achieve a minimum score as determined by the commissioner to be
 within a reasonable range of the scale score under Section
 39.0241(a) [of at least 60] on an end-of-course assessment
 instrument for the score to count towards the student's cumulative
 score. For purposes of this subsection, a student's cumulative
 score is determined using the student's highest score on each
 end-of-course assessment instrument administered to the
 student. A student may not receive a high school diploma until the
 student has performed satisfactorily on the end-of-course
 assessment instruments in the manner provided under this
 subsection. This subsection does not require a student to
 demonstrate readiness to enroll in an institution of higher
 education.
 (a-1) The commissioner by rule shall determine a method by
 which a student's satisfactory performance on an advanced placement
 test, international baccalaureate examination, an SAT [a
 Scholastic Assessment Test (SAT)] Subject Test, or another
 assessment instrument determined by the commissioner to be at least
 as rigorous as an end-of-course assessment instrument adopted under
 Section 39.023(c) may be used as a factor in determining whether the
 student satisfies the requirements of Subsection (a), including the
 cumulative score requirement of that subsection. The commissioner
 by rule may determine a method by which a student's satisfactory
 performance on a Preliminary Scholastic Assessment Test (PSAT)
 assessment or a preliminary American College Test (ACT) assessment
 may be used as a factor in determining whether the student satisfies
 the requirements of Subsection (a).
 (a-2)  In addition to the cumulative score requirements
 under Subsection (a), a student must achieve a score that meets or
 exceeds the score determined by the commissioner under Section
 39.0241(a) for English III and Algebra II end-of-course assessment
 instruments to graduate under the recommended high school program.
 (a-3)  In addition to the cumulative score requirements
 under Subsection (a), a student must achieve a score that meets or
 exceeds the score determined by the commissioner under Section
 39.0241(a-1) on English III and Algebra II end-of-course assessment
 instruments in order to graduate under the advanced high school
 program.
 (b) Each time an end-of-course assessment instrument is
 administered, a student who failed to achieve a minimum score under
 Subsection (a) [of at least 60 on the assessment instrument] shall
 retake the assessment instrument. A student who fails to perform
 satisfactorily on an Algebra II or English III end-of-course
 assessment instrument under the college readiness performance
 standard, as provided under Section 39.024(b), may retake the
 assessment instrument. Any other student may retake an
 end-of-course assessment instrument for any reason. A student is
 not required to retake a course as a condition of retaking an
 end-of-course assessment instrument.
 (b-1) A school district shall provide each student who fails
 to perform satisfactorily as determined by the commissioner under
 Section 39.0241(a) [achieve a score of at least 70] on an
 end-of-course assessment instrument with accelerated instruction
 in the subject assessed by the assessment instrument.
 (b-2) If a school district determines that a student, on
 completion of grade 11, is unlikely to achieve the cumulative score
 requirements for one or more subjects prescribed by Subsection (a)
 for receiving a high school diploma, the district shall require the
 student to enroll in a corresponding content-area college
 preparatory course for which an end-of-course assessment
 instrument has been adopted, if available. A student who enrolls
 in a college preparatory course described by this subsection shall
 be administered an end-of-course assessment instrument for the
 course, with the end-of-course assessment instrument scored on a
 scale as determined by the commissioner not to exceed 20 percent of
 the cumulative score requirements required to graduate as
 determined under Subsection (a) [of 40]. A student may use the
 student's score on the end-of-course assessment instrument for the
 college preparatory course towards satisfying the cumulative score
 requirements prescribed by Subsection (a).
 (c-1)  A school district may not administer an assessment
 instrument required for graduation administered under this section
 as this section existed before September 1, 1999. A school district
 may administer to a student who failed to perform satisfactorily on
 an assessment instrument described by this subsection an alternate
 assessment instrument designated by the commissioner. The
 commissioner shall determine the level of performance considered to
 be satisfactory on an alternate assessment instrument. The
 district may not administer to the student an assessment instrument
 or a part of an assessment instrument that assesses a subject that
 was not assessed in an assessment instrument required for
 graduation administered under this section as this section existed
 before September 1, 1999. The commissioner shall make available to
 districts information necessary to administer the alternate
 assessment instrument authorized by this subsection. The
 commissioner's determination regarding designation of an
 appropriate alternate assessment instrument under this subsection
 and the performance required on the assessment instrument is final
 and may not be appealed.
 (f) The commissioner shall by rule adopt a transition plan
 to implement the amendments made by Chapter 1312 (S.B. No. 1031),
 Acts of the 80th Legislature, Regular Session, 2007, replacing
 general subject assessment instruments administered at the high
 school level with end-of-course assessment instruments [to this
 section and Sections 39.023(a) and (c) and 39.051(b)(5)]. The
 rules must provide for the end-of-course assessment instruments
 adopted under Section 39.023(c) to be administered beginning with
 students entering the ninth grade during the 2011-2012 school year.
 During the period under which the transition to end-of-course
 assessment instruments is made:
 (1) for students entering a grade above the ninth
 grade during the 2011-2012 school year, the commissioner shall
 retain, administer, and use for purposes of accreditation and other
 campus and district accountability measures [ratings] under this
 chapter [Subchapter D] the assessment instruments required by
 Section 39.023(a) or (c), as that section existed before amendment
 by Chapter 1312 (S.B. No. 1031), Acts of the 80th Legislature,
 Regular Session, 2007;
 (2)  a student subject to Subdivision (1) may not
 receive a high school diploma unless the student has performed
 satisfactorily on each required assessment instrument administered
 under Section 39.023(c) as that section existed before amendment by
 Chapter 1312 (S.B. No. 1031), Acts of the 80th Legislature, Regular
 Session, 2007; and
 (3) [(2)] the agency may defer releasing assessment
 instrument questions and answer keys as required by Section
 39.023(e) to the extent necessary to develop additional assessment
 instruments.
 SECTION 55. Section 39.0262(a), Education Code, is amended
 to read as follows:
 (a) In a subject area for which assessment instruments are
 administered under Section 39.023, a school district may not
 administer locally required [district-required] assessment
 instruments designed to prepare students for state-administered
 assessment instruments to any student on more than 10 percent of the
 instructional days in any school year. A campus-level planning and
 decision-making committee established under Section 11.251 may
 limit the administration of locally required assessment
 instruments under this subsection to 10 percent or a lower
 percentage of the instructional days in any school year.
 SECTION 56. Section 39.027, Education Code, is amended by
 amending Subsections (a) and (e) and adding Subsection (a-1) to
 read as follows:
 (a) A student may be administered an accommodated or
 alternative assessment instrument or may be granted an exemption
 [exempted] from or a postponement of the administration of an
 assessment instrument under:
 (1) [Section 39.023(a) or (b) if the student is
 eligible for a special education program under Section 29.003 and
 the student's individualized education program does not include
 instruction in the essential knowledge and skills under Section
 28.002 at any grade level;
 [(2)     Section 39.023(c) or (d) if the student is
 eligible for a special education program under Section 29.003 and:
 [(A)     the student's individualized education
 program does not include instruction in the essential knowledge and
 skills under Section 28.002 at any grade level; or
 [(B)     the assessment instrument, even with
 allowable modifications, would not provide an appropriate measure
 of the student's achievement as determined by the student's
 admission, review, and dismissal committee;
 [(3)] Section 39.023(a), (b), (c), or (l) for a period
 of up to one year after initial enrollment in a school in the United
 States if the student is of limited English proficiency, as defined
 by Section 29.052, and has not demonstrated proficiency in English
 as determined by the assessment system under Subsection (e); [or]
 (2) [(4)] Section 39.023(a), (b), (c), or (l) for a
 period of up to two years in addition to the exemption period
 authorized by Subdivision (1) [(3)] if the student has received an
 exemption under Subdivision (1) [(3)] and:
 (A) is a recent unschooled immigrant; or
 (B) is in a grade for which no assessment
 instrument in the primary language of the student is available; or
 (3)  Section 39.023(a), (b), (c), or (l) for a period of
 up to four years, in addition to the exemption period authorized
 under Subdivision (1), if the student's initial enrollment in a
 school in the United States was as an unschooled asylee or refugee.
 (a-1)  For purposes of this section, "unschooled asylee or
 refugee" means a student who:
 (1)  initially enrolled in a school in the United
 States as:
 (A)  an asylee as defined by 45 C.F.R. Section
 400.41; or
 (B)  a refugee as defined by 8 U.S.C. Section
 1101;
 (2)  has a visa issued by the United States Department
 of State with a Form I-94 Arrival/Departure record, or a successor
 document, issued by the United States Citizenship and Immigration
 Services that is stamped with "Asylee," "Refugee," or "Asylum"; and
 (3)  as a result of inadequate schooling outside of the
 United States, lacks the necessary foundation in the essential
 knowledge and skills of the curriculum prescribed under Section
 28.002, as determined by the language proficiency assessment
 committee established under Section 29.063.
 (e) The commissioner shall develop an assessment system
 that shall be used for evaluating the academic progress, including
 reading proficiency in English, of all students of limited English
 proficiency, as defined by Section 29.052. A student who is exempt
 from the administration of an assessment instrument under
 Subsection (a)(1) or (2) [(a)(3) or (4)] who achieves reading
 proficiency in English as determined by the assessment system
 developed under this subsection shall be administered the
 assessment instruments described by Sections 39.023(a) and (c).
 The performance under the assessment system developed under this
 subsection of students to whom Subsection (a)(1) or (2) [(a)(3) or
 (4)] applies shall be included in the [academic excellence]
 indicator systems [system] under Section 39.301, as applicable
 [Section 39.051], the performance report under Section 39.306
 [39.053], and the comprehensive annual report under Section 39.332
 [39.182]. This information shall be provided in a manner that is
 disaggregated by the bilingual education or special language
 program, if any, in which the student is enrolled.
 SECTION 57. Section 39.033(b), Education Code, is amended
 to read as follows:
 (b) An agreement under this section must require the private
 school to:
 (1) as determined appropriate by the commissioner,
 provide to the commissioner the information described by Sections
 39.053(c) and 39.301(c); [Section 39.051(b)] and
 (2) [to] maintain confidentiality in compliance with
 Section 39.030.
 SECTION 58. Section 39.034, Education Code, is amended by
 amending Subsection (d) and adding Subsection (d-1) to read as
 follows:
 (d) The agency shall determine the necessary annual
 improvement required each year for a student to be prepared to
 perform satisfactorily on, as applicable:
 (1) the grade five assessment instruments;
 (2) the grade eight assessment instruments; and
 (3) the end-of-course assessment instruments required
 under this subchapter for graduation.
 (d-1) The agency shall report the necessary annual
 improvement required under Subsection (d) to the district. Each
 year, the report must state whether the student fell below, met, or
 exceeded the necessary target for improvement.
 SECTION 59. Subchapters C through L, Chapter 39, Education
 Code, as amended by Section 2.25, Chapter 396 (S.B. 4), and Section
 4, Chapter 931 (H.B. 2307), Acts of the 76th Legislature, Regular
 Session, 1999, are amended to read as follows:
 SUBCHAPTER C. ACCREDITATION [PERFORMANCE INDICATORS
 [SUBCHAPTER D. ACCREDITATION STATUS]
 Sec. 39.051 [39.071]. ACCREDITATION STATUS. [(a)]
 Accreditation of a school district is determined in accordance with
 this subchapter [section]. The commissioner by rule shall
 determine in accordance with this subchapter the criteria for
 [define] the following accreditation statuses:
 (1) accredited;
 (2) accredited-warned; and
 (3) accredited-probation.
 Sec. 39.052.  DETERMINATION OF ACCREDITATION STATUS OR
 PERFORMANCE RATING.  (a) [(b)] Each year, the commissioner shall
 determine the accreditation status of each school district.
 (b) In determining the accreditation status of a school
 district, the commissioner:
 (1) shall evaluate and consider:
 (A) [the] performance on student achievement
 indicators described by Section 39.053(c) [of the district under:
 [(A)     the academic accountability system under
 Section 39.072]; and
 (B) performance under the financial
 accountability rating system developed under Subchapter D [I]; 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.
 (c) Based on a school district's performance under
 Subsection (b), the commissioner shall:
 (1) assign each [a] district an accreditation status;
 or
 (2) revoke the accreditation of the district and order
 closure of the district [under this subchapter].
 (d)  A school district's accreditation status may be raised
 or lowered based on the district's performance or may be lowered
 based on the performance of one or more campuses in the district
 that is below a standard required under this subchapter.
 (e) [(d)] The commissioner shall notify a school district
 that receives an accreditation status of accredited-warned or
 accredited-probation or a campus that performs below a standard
 required under this subchapter that the performance of the district
 or campus is below a standard required under this subchapter
 [section]. The commissioner shall require the district to notify
 the parents of students enrolled in the district and property
 owners in the district of the district's accreditation status and
 the implications of that accreditation status.
 (f) [(e)] A school district that is not accredited may not
 receive funds from the agency or hold itself out as operating a
 public school of this state.
 (g) [(f)] This chapter may not be construed to invalidate a
 diploma awarded, course credit earned, or grade promotion granted
 by a school district before the commissioner revoked the district's
 accreditation.
 Sec. 39.053.  PERFORMANCE INDICATORS: STUDENT ACHIEVEMENT.
 (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.
 [Sec.   39.051.     ACADEMIC EXCELLENCE INDICATORS.    (a)     The
 State Board of Education shall adopt a set of indicators of the
 quality of learning on a campus. The State Board of Education
 biennially shall review the indicators for the consideration of
 appropriate revisions.]
 (b) Performance on the student achievement indicators
 adopted under this section shall be compared to state-established
 standards. [The degree of change from one school year to the next
 in performance on each indicator adopted under this section shall
 also be considered.] The indicators must be based on information
 that is disaggregated by race, ethnicity, [gender,] and
 socioeconomic status.
 (c)  Indicators of student achievement adopted under this
 section [and] must include:
 (1) the results of 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 [by] grade levels by [level and] subject
 area, including:
 (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
 (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; and
 (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.).
 (d)  For purposes of Subsection (c), the commissioner by rule
 shall determine the period within which a student must retake an
 assessment instrument for that assessment instrument to be
 considered in determining the performance rating of the district
 under Section 39.054.
 (e) [(Pub. L. No. 107-110);
 [(4) student attendance rates;
 [(5)     the percentage of graduating students who attain
 scores on the questions developed for end-of-course assessment
 instruments under Section 39.0233(a) that are equivalent to a
 passing score on the assessment instrument required under Section
 51.3062;
 [(6)     the percentage of graduating students who meet
 the course requirements established for the recommended high school
 program by State Board of Education rule;
 [(7)     the results of the Scholastic Assessment Test
 (SAT), the American College Test (ACT), articulated postsecondary
 degree programs described by Section 61.852, and certified
 workforce training programs described by Chapter 311, Labor Code;
 [(8)     the percentage of students, aggregated by grade
 level, provided accelerated instruction under Section 28.0211(c),
 the results of assessments administered under that section, the
 percentage of students promoted through the grade placement
 committee process under Section 28.0211, the subject of the
 assessment instrument on which each student failed to perform
 satisfactorily, and the performance of those students in the school
 year following that promotion on the assessment instruments
 required under Section 39.023;
 [(9)     for students who have failed to perform
 satisfactorily on an assessment instrument required under Section
 39.023(a) or (c), the numerical progress of those students grouped
 by percentage on subsequent assessment instruments required under
 those sections, aggregated by grade level and subject area;
 [(10)     the percentage of students exempted, by
 exemption category, from the assessment program generally
 applicable under this chapter;
 [(11)     the percentage of students of limited English
 proficiency exempted from the administration of an assessment
 instrument under Sections 39.027(a)(3) and (4);
 [(12)     the percentage of students in a special
 education program under Subchapter A, Chapter 29, assessed through
 assessment instruments developed or adopted under Section
 39.023(b);
 [(13)     the measure of progress toward preparation for
 postsecondary success; and
 [(14)     the measure of progress toward dual language
 proficiency under Section 39.034(b), for students of limited
 English proficiency, as defined by Section 29.052.
 [(b-1)     Performance on the indicators described by
 Subsections (b)(1), (2), (3), (8), (9), and (14) must be based on
 longitudinal student data that is disaggregated by the bilingual
 education or special language program, if any, in which students of
 limited English proficiency, as defined by Section 29.052, are or
 former students of limited English proficiency were enrolled.    If a
 student described by this subsection is not or was not enrolled in
 specialized language instruction, the number and percentage of
 those students shall be provided.
 [(c)] Performance on the student achievement indicators
 [indicator] under Subsections (c)(1) and (2) [Subsection (b)(1)]
 shall be compared to state standards and[,] required improvement[,
 and comparable improvement]. The state standard shall be
 established by the commissioner. Required improvement is [defined
 as] the progress necessary for the campus or district to meet state
 standards and, for the student achievement indicator under
 Subsection (c)(1), for its students to meet each of the performance
 standards as determined under Section 39.0241.
 (f) [exit requirements as defined by the commissioner.
 Comparable improvement is derived by measuring campuses and
 districts against a profile developed from a total state student
 performance database which exhibits substantial equivalence to the
 characteristics of students served by the campus or district,
 including past academic performance, socioeconomic status,
 ethnicity, and limited English proficiency.
 [(d)] Annually, the commissioner shall define the state
 standard for the current school year for each student achievement
 [exemplary, recognized, and unacceptable performance for each
 academic excellence] indicator described by Subsection (c)
 [included under Subsections (b)(1) through (7)] and shall project
 the state standards for each [of those levels of performance for
 succeeding years.    For the] indicator for the following two school
 [under Subsection (b)(8), the commissioner shall define exemplary,
 recognized, and unacceptable performance based on student
 performance for the period covering both the current and preceding
 academic] years. The commissioner shall periodically raise the
 state standards for the student achievement indicator described by
 Subsection (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, including the percentage of
 students graduating under the recommended or advanced high school
 program, with no significant achievement gaps by race, ethnicity,
 and socioeconomic status.
 (g) In defining the required state standard [exemplary,
 recognized, and unacceptable performance] for the indicator
 described by Subsection (c)(2) [indicators under Subsections
 (b)(2) and (4)], the commissioner may not consider as a dropout [or
 as] a student [who has failed to attend school 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
 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;
 (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.
 (h) [(e)] Each school district shall cooperate with the
 agency in determining whether a student is a dropout for purposes of
 accreditation and evaluating performance by school districts and
 campuses under this chapter [section].
 (i) [(f)     The indicator under Subsection (b)(1) must include
 the results of assessment instruments required under Section
 39.023(b).
 [(g)] The commissioner by rule shall adopt accountability
 measures to be used in assessing the progress of students who have
 failed to perform satisfactorily as determined by the commissioner
 under Section 39.0241(a) or under the college readiness standard as
 determined under Section 39.0241 in the preceding school year on an
 assessment instrument required under Section 39.023(a), (c), or
 (l).
 Sec. 39.054.  METHODS AND STANDARDS FOR EVALUATING
 PERFORMANCE. (a) The commissioner shall adopt rules to evaluate
 school district and campus performance and, not later than August 8
 of each year, assign each district and campus a performance rating
 that reflects acceptable performance or unacceptable performance.
 If a district or campus received a performance rating of
 unacceptable performance for the preceding school year, the
 commissioner shall notify the district of a subsequent such
 designation on or before June 15.
 (b)  In evaluating performance, the commissioner shall
 evaluate against state standards and consider the performance of
 each campus in a school district and each open-enrollment charter
 school on the basis of the campus's or school's performance on the
 student achievement indicators adopted under Section 39.053(c).
 (b-1) [39.072.     ACCREDITATION STANDARDS.    (a)    The State
 Board of Education shall adopt rules to evaluate the performance of
 school districts and to assign to each district a performance
 rating as follows:
 [(1)     exemplary (meets or exceeds state exemplary
 standards);
 [(2)     recognized (meets or exceeds required
 improvement and within 10 percent of state exemplary standards);
 [(3)     academically acceptable (below the exemplary and
 recognized standards but exceeds the academically unacceptable
 standards); or
 [(4)     academically unacceptable (below the state
 clearly unacceptable performance standard and does not meet
 required improvement).
 [(b)     The academic excellence indicators adopted under
 Sections 39.051(b)(1) through (8) and the district's current
 special education compliance status with the agency shall be the
 main considerations of the agency in the rating of the district
 under this section.    Additional criteria in the rules may include
 consideration of:
 [(1)     compliance with statutory requirements and
 requirements imposed by rule of the State Board of Education under
 specific statutory authority that relate to:
 [(A)     reporting data through the Public Education
 Information Management System (PEIMS);
 [(B)     the high school graduation requirements
 under Section 28.025; or
 [(C)     an item listed in Sections
 7.056(e)(3)(C)-(I) that applies to the district;
 [(2)     the effectiveness of the district's programs for
 special populations; and
 [(3)     the effectiveness of the district's career and
 technology programs.
 [(c)     The agency shall evaluate against state standards and
 shall, not later than August 1 of each year, report the performance
 of each campus in a district and each open-enrollment charter
 school on the basis of the campus's performance on the indicators
 adopted under Sections 39.051(b)(1) through (8).] Consideration of
 the effectiveness of district programs under Section
 39.052(b)(2)(B) or (C):
 (1) [Subsection (b)(2) or (3)] 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 39.057.
 (c)  In evaluating school district and campus performance on
 the student achievement indicators adopted under Sections
 39.053(c)(1) and (2), the commissioner shall define acceptable
 performance as meeting the state standard determined by the
 commissioner under Section 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.
 (d) In evaluating performance under Subsection (c), the
 commissioner:
 (1)  may assign an acceptable performance rating if the
 campus or district:
 (A)  performs satisfactorily on 85 percent of the
 measures the commissioner determines appropriate with respect to
 the student achievement indicators adopted under Sections
 39.053(c)(1) and (2); and
 (B)  does not fail to perform satisfactorily on
 the same measure described by Paragraph (A) for two consecutive
 school years;
 (2)  may grant an exception under this subsection to a
 district or campus only if the performance of the district or campus
 is within a certain percentage, as determined by the commissioner,
 of the minimum performance standard established by the commissioner
 for the measure of evaluation; or
 (3)  may establish other performance criteria for a
 district or campus to obtain an exception under this subsection.
 (d-1)  The commissioner may consider alternative performance
 criteria to Subsection (d)(1)(A) only in special circumstances,
 including campus or district performance on the same measure for
 student groups that are substantially similar in composition to all
 students on the same campus or district.
 (e) [Notwithstanding any other provision of this code, for
 purposes of determining the performance of a school district under
 this chapter, including the accreditation status of the district, a
 student confined by court order in a residential program or
 facility operated by or under contract with the Texas Youth
 Commission, Texas Juvenile Probation Commission, or any other
 governmental entity, including a juvenile board, is not considered
 to be a student of the school district in which the program or
 facility is physically located.    The performance of such a student
 on an assessment instrument or other academic excellence indicator
 adopted under Section 39.051 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.
 [Sec.   39.0721.     GOLD PERFORMANCE RATING PROGRAM.    (a)    In
 addition to district and campus performance ratings reported under
 Section 39.072, the commissioner shall develop a gold performance
 rating program based on enhanced performance. The agency shall
 administer the program.
 [(b)     Under the gold performance rating program, a district
 or campus rated exemplary under Section 39.072 is eligible for an
 exemplary gold rating, a district or campus rated recognized is
 eligible for a recognized gold rating, and a district or campus
 rated academically acceptable is eligible for an academically
 acceptable gold rating.
 [(c)     The performance standards on which a gold performance
 rating is based should include:
 [(1) student proficiency on:
 [(A)     assessment instruments administered under
 Sections 39.023(a), (c), and (l); and
 [(B)     other measures of proficiency determined by
 the commissioner;
 [(2)     student performance on one or more nationally
 recognized norm-referenced assessment instruments;
 [(3) improvement in student performance;
 [(4)     in the case of middle or junior high school
 campuses, student proficiency in mathematics, including algebra;
 and
 [(5) in the case of high school campuses:
 [(A)     the extent to which graduating students are
 academically prepared to attend institutions of higher education;
 [(B)     the percentage of students who take advanced
 placement tests and student performance on those tests; and
 [(C)     the percentage of students who take and
 successfully complete advanced academic courses or college-level
 course work offered through dual credit programs provided under
 agreements between high schools and institutions of higher
 education.
 [(d)     The commissioner may adopt rules as necessary to
 implement and administer this section.
 [Sec.   39.073.     DETERMINING ACCREDITATION STATUS. (a)    The
 agency shall annually review the performance of each district and
 campus on the indicators adopted under Sections 39.051(b)(1)
 through (8) and determine if a change in the accreditation status of
 the district is warranted.    The commissioner may determine how all
 indicators adopted under Section 39.051(b) may be used to determine
 accountability ratings and to select districts and campuses for
 acknowledgment.
 [(b)] Each annual performance review under this section
 shall include an analysis of the student achievement indicators
 adopted under Section 39.053(c) [Sections 39.051(b)(1) through
 (8)] 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) [39.051(c); and
 [(3)     comparable improvement as defined by Section
 39.051(c)].
 [(c)     A district's accreditation rating may be raised or
 lowered based on the district's performance or may be lowered based
 on the unacceptable performance of one or more campuses in the
 district.
 [(d)     The commissioner shall notify a district that is rated
 academically unacceptable that the performance of the district or a
 campus in the district is below each standard under Subsection (b)
 and shall require the district to notify property owners and
 parents in the district of the lowered accreditation rating and its
 implication.
 [(e)     In determining a district's accreditation rating, the
 agency shall consider:
 [(1)     the district's current special education
 compliance status with the agency; and
 [(2)     the progress of students who have failed to
 perform satisfactorily in the preceding school year on an
 assessment instrument required under Section 39.023(a), (c), or
 (l).]
 (f) In the computation of dropout rates under Section
 39.053(c)(2) [39.051(b)(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 [campus
 or] school district or campus serving the facility or center unless
 that district or campus [or district] is the one to which the
 student is regularly assigned. The agency may not limit an appeal
 relating to dropout computations under this subsection.
 Sec. 39.055.  STUDENT ORDERED BY A JUVENILE COURT NOT
 CONSIDERED FOR ACCOUNTABILITY PURPOSES. Notwithstanding any other
 provision of this code, for purposes of determining the performance
 of a school district or campus under this chapter, a student ordered
 by a juvenile court into a residential program or facility operated
 by or under contract with the Texas Youth Commission, the Texas
 Juvenile Probation Commission, a juvenile board, or any other
 governmental entity is not considered to be a student of the school
 district in which the program or facility is physically located.
 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.
 Sec. 39.056 [39.074]. ON-SITE INVESTIGATIONS. (a) The
 commissioner may:
 (1) direct the agency to conduct on-site
 investigations of a school district at any time to answer any
 questions concerning a program, including special education,
 required by federal law or for which the district receives federal
 funds; and
 (2) [raise or lower the performance rating] as a
 result of the investigation, change the accreditation status of a
 district, change the accountability rating of a district or campus,
 or withdraw a distinction designation under Subchapter G.
 (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 [academic excellence]
 indicators adopted under Section 39.053 [39.051].
 (c) In making an on-site accreditation investigation, the
 investigators shall obtain information from administrators,
 teachers, and parents of students enrolled in the school district.
 The investigation may not be closed until information is obtained
 from each of those sources. The State Board of Education shall
 adopt rules for:
 (1) obtaining information from parents and using that
 information in the investigator's report; and
 (2) obtaining information from teachers in a manner
 that prevents a [campus or] district or campus from screening the
 information.
 (d) The agency shall give written notice to the
 superintendent and the board of trustees of a school district of any
 impending investigation of the district's accreditation.
 (e) [If an annual review    indicates low performance on one
 or more of the indicators under Sections 39.051(b)(1) through (8)
 of one or more campuses in a district, the agency may conduct an
 on-site evaluation of those campuses only.
 [(f)] The investigators shall report orally and in writing
 to the board of trustees of the school district and, as appropriate,
 to campus administrators and shall make recommendations concerning
 any necessary improvements or sources of aid such as regional
 education service centers.
 Sec. 39.057 [39.075]. SPECIAL ACCREDITATION INVESTIGATIONS.
 (a) The commissioner shall authorize special accreditation
 investigations to be conducted:
 (1) 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;
 (4) in response to established compliance reviews of
 the district's financial accounting practices and 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 special
 education programs 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;
 [or]
 (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 graduate under
 the minimum high school program;
 (11)  when excessive numbers of students eligible to
 enroll fail to complete an Algebra II course or any other course
 determined by the commissioner as distinguishing between students
 participating in the recommended high school program from students
 participating in the minimum high school program;
 (12)  when resource allocation practices as evaluated
 under Section 39.0821 indicate a potential for significant
 improvement in resource allocation; or
 (13) 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, the agency may not substitute its
 judgment for that of the board.
 (c) [(b-1)] 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) [(c)] Based on the results of a special accreditation
 investigation, the commissioner may:
 (1) take appropriate action under Subchapter E [G];
 (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) [(c)     Based on the results of a special accreditation
 investigation, the commissioner may lower the district's
 accreditation rating and may take appropriate action under
 Subchapter G.] Regardless of whether the commissioner lowers the
 school district's accreditation status or a district's or campus's
 performance rating under Subsection (d) [rating], the commissioner
 may take action under Sections 39.102(a)(1) through (8) or Section
 39.103 [39.131(a)(1) through (8)] 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. 39.058 [39.076]. CONDUCT OF INVESTIGATIONS. (a) The
 agency shall adopt written procedures for conducting on-site
 investigations under this subchapter. The agency shall make the
 procedures available to the complainant, the alleged violator, and
 the public. Agency staff must be trained in the procedures and must
 follow the procedures in conducting the investigation.
 (b) After completing an investigation, the agency shall
 present preliminary findings to any person the agency finds has
 violated a law, rule, or policy. Before issuing a report with its
 final findings, the agency must provide a person the agency finds
 has violated a law, rule, or policy an opportunity for an informal
 review by the commissioner or a designated hearing examiner.
 SUBCHAPTER D [I]. FINANCIAL ACCOUNTABILITY
 Sec. 39.081 [39.201]. DEFINITIONS. In this subchapter:
 (1) "Parent" includes a guardian or other person
 having lawful control of a student.
 (2) "System" means a [the] financial accountability
 rating system developed under this subchapter.
 Sec. 39.082 [39.202]. DEVELOPMENT AND IMPLEMENTATION. (a)
 The commissioner shall, in consultation with the comptroller,
 develop and implement separate [a] financial accountability rating
 systems [system] for school districts and open-enrollment charter
 schools in this state that:
 (1) distinguish [distinguishes] among school
 districts and distinguish among open-enrollment charter schools,
 as applicable, based on levels of financial performance; and
 (2) include [includes] procedures to:
 (A) provide additional transparency to public
 education finance; and
 (B) enable the commissioner and school district
 and open-enrollment charter school administrators to provide
 meaningful financial oversight and improvement.
 (b) The system must include uniform indicators adopted by
 the commissioner by which to measure the [a district's] financial
 management performance of a district or open-enrollment charter
 school.
 (c)  The system may not include an indicator under Subsection
 (b) or any other performance measure that:
 (1)  requires a school district to spend at least 65
 percent or any other specified percentage of district operating
 funds for instructional purposes; or
 (2)  lowers the financial management performance
 rating of a school district for failure to spend at least 65 percent
 or any other specified percentage of district operating funds for
 instructional purposes.
 Sec. 39.0821.  COMPTROLLER REVIEW OF RESOURCE ALLOCATION
 PRACTICES. (a)  The comptroller shall identify school districts
 and campuses that use resource allocation practices that contribute
 to high academic achievement and cost-effective operations. In
 identifying districts and campuses under this section, the
 comptroller shall:
 (1)  evaluate existing academic accountability and
 financial data by integrating the data;
 (2)  rank the results of the evaluation under
 Subdivision (1) to identify the relative performance of districts
 and campuses; and
 (3)  identify potential areas for district and campus
 improvement.
 (b)  In reviewing resources allocation practices of
 districts and campuses under this section, the comptroller shall
 ensure resources are being used for the instruction of students by
 evaluating:
 (1) the operating cost for each student;
 (2) the operating cost for each program; and
 (3) the staffing cost for each student.
 Sec. 39.0822.  FINANCIAL SOLVENCY REVIEW REQUIRED. (a)  The
 agency shall develop a review process to anticipate the future
 financial solvency of each school district. The review process
 shall analyze:
 (1)  district revenues and expenditures for the
 preceding school year; and
 (2)  projected district revenues and expenditures for
 the current school year and the following two school years.
 (b)  In analyzing the information under Subsection (a), the
 review process developed must consider, for the preceding school
 year, the current school year, and the following two school years,
 as appropriate:
 (1)  student-to-staff ratios relative to expenditures,
 including average staff salaries;
 (2)  the rate of change in the district unreserved
 general fund balance;
 (3) the number of students enrolled in the district;
 (4) the adopted tax rate of the district;
 (5)  any independent audit report prepared for the
 district; and
 (6)  actual district financial information for the
 first quarter.
 (c)  The agency shall consult school district financial
 officers and public finance experts in developing the review
 process under this section.
 (d)  The agency shall develop an electronic-based program
 for school districts to use in submitting information to the agency
 for purposes of this section. Each district shall update
 information for purposes of the program within the period
 prescribed by the commissioner. The commissioner shall adopt rules
 under this subsection to allow a district to enter estimates of
 critical data into the program before the district adopts its
 budget. The program must:
 (1)  be capable of importing, to the extent
 practicable, data a district has previously submitted to the
 agency;
 (2)  include an entry space that allows a district to
 enter information explaining any irregularity in data submitted;
 and
 (3) provide alerts for:
 (A)  a student-to-staff ratio that is
 significantly outside the norm;
 (B)  a rapid depletion of the district general
 fund balance; and
 (C)  a significant discrepancy between actual
 budget figures and projected revenues and expenditures.
 (e)  An alert in the program developed under Subsection (d)
 must be developed to notify the agency immediately on the
 occurrence of a condition described by Subsection (d)(3). After
 the agency is alerted, the agency shall immediately notify the
 affected school district regarding the condition triggering the
 alert.
 Sec. 39.0823.  PROJECTED DEFICIT.  (a)  If the review process
 under Section 39.0822 indicates a projected deficit for a school
 district general fund within the following three school years, the
 district shall provide the agency interim financial reports,
 supplemented by staff and student count data, as needed, to
 evaluate the district's current budget status.
 (b)  If the interim financial data provided under Subsection
 (a) substantiates the projected deficit, the school district shall
 develop a financial plan and submit the plan to the agency for
 approval.  The agency may approve the plan only if the agency
 determines the plan will permit the district to avoid the projected
 insolvency.
 (c)  The commissioner shall assign a school district an
 accredited-warned status if:
 (1)  the district fails to submit a plan as provided by
 Subsection (b);
 (2)  the district fails to obtain approval from the
 agency for a plan as provided by Subsection (b);
 (3)  the district fails to comply with a plan approved
 by the agency under Subsection (b); or
 (4)  the agency determines in a subsequent school year,
 based on financial data submitted by the district, that the
 approved plan for the district is no longer sufficient or is not
 appropriately implemented.
 Sec. 39.083 [39.203]. REPORTING. (a) The commissioner
 shall develop, as part of the system, a reporting procedure under
 which:
 (1) each school district is required to prepare and
 distribute an annual financial management report; and
 (2) the public is provided an opportunity to comment
 on the report at a hearing.
 (b) The annual financial management report must include:
 (1) a description of the district's financial
 management performance based on a comparison, provided by the
 agency, of the district's performance on the indicators adopted
 under Section 39.082(b) [39.202(b)] to:
 (A) state-established standards; and
 (B) the district's previous performance on the
 indicators; [and]
 (2) a description of the data submitted using the
 electronic-based program developed under Section 39.0822; and
 (3) any descriptive information required by the
 commissioner.
 (c) The report may include:
 (1) information concerning the district's:
 (A) financial allocations;
 (B) tax collections;
 (C) financial strength;
 (D) operating cost management;
 (E) personnel management;
 (F) debt management;
 (G) facility acquisition and construction
 management;
 (H) cash management;
 (I) budgetary planning;
 (J) overall business management;
 (K) compliance with rules; and
 (L) data quality; and
 (2) any other information the board of trustees
 determines to be necessary or useful.
 (d) The board of trustees of each school district shall hold
 a public hearing on the report. The board shall give notice of the
 hearing to owners of real property in the district and to parents of
 district students. In addition to other notice required by law,
 notice of the hearing must be provided:
 (1) to a newspaper of general circulation in the
 district; and
 (2) through electronic mail to media serving the
 district.
 (e) After the hearing, the report shall be disseminated in
 the district in the manner prescribed by the commissioner.
 Sec. 39.084.  POSTING OF ADOPTED BUDGET. (a) On final
 approval of the budget by the board of trustees, the school district
 shall post on the district's Internet website a copy of the budget
 adopted by the board of trustees. The district's Internet website
 must prominently display the electronic link to the adopted budget.
 (b)  The district shall maintain the adopted budget on the
 district's Internet website until the third anniversary of the date
 the budget was adopted.
 Sec. 39.085 [39.204]. RULES. The commissioner shall adopt
 rules as necessary for the implementation and administration of
 this subchapter.
 SUBCHAPTER E [G]. ACCREDITATION INTERVENTIONS AND SANCTIONS
 Sec. 39.102 [39.131]. INTERVENTIONS AND SANCTIONS FOR
 DISTRICTS. (a) If a school district does not satisfy the
 accreditation criteria under Section 39.052 [39.071], the academic
 performance standards under Section 39.053 or 39.054 [39.072], 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 [unacceptable] 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 student achievement [academic
 excellence] indicator under Section 39.053(c) for which the
 district's performance is insufficient [unacceptable], 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 [unacceptable] 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) [is rated academically
 unacceptable], 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) [been rated
 academically unacceptable], 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) [been rated academically unacceptable for
 two consecutive school years, including the current school year,]
 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.
 (b) This subsection applies regardless of whether a
 district has satisfied the accreditation criteria. If for two
 consecutive school years, including the current school year, a
 district has had a conservator or management team assigned, the
 commissioner may appoint a board of managers, a majority of whom
 must be residents of the district, to exercise the powers and duties
 of the board of trustees.
 Sec. 39.103 [39.132]. INTERVENTIONS AND SANCTIONS FOR
 [ACADEMICALLY UNACCEPTABLE] CAMPUSES. (a) If a campus performance
 is below any standard under Section 39.054(e), the commissioner
 [39.073(b), the campus is considered an academically unacceptable
 campus. The commissioner may permit the campus to participate in an
 innovative redesign of the campus to improve campus performance or]
 shall take [any of the other following] actions, to the extent the
 commissioner determines necessary, as provided by this subchapter.
 (b)  For a campus described by Subsection (a), the
 commissioner, to the extent the commissioner determines necessary,
 may:
 (1) [issue public notice of the deficiency to the
 board of trustees;
 [(2)     order a hearing conducted by the board of
 trustees at the campus for the purpose of:
 [(A)     notifying the public of the unacceptable
 performance, the improvements in performance expected by the
 agency, and the sanctions that may be imposed under this section if
 the performance does not improve within a designated period of
 time; and
 [(B)     soliciting public comment on the initial
 steps being taken to improve performance;
 [(3)     order the preparation of a report regarding the
 parental involvement program at the campus and a plan describing
 strategies for improving parental involvement at the campus;
 [(4)     order the preparation of a report regarding the
 effectiveness of the district- and campus-level planning and
 decision-making committees established under Subchapter F, Chapter
 11, and a plan describing strategies for improving the
 effectiveness of those committees;
 [(5)     order the preparation of a student improvement
 plan that addresses each academic excellence indicator for which
 the campus's performance is unacceptable, the submission of the
 plan to the commissioner for approval, and implementation of the
 plan;
 [(6)] order a hearing to be held before the
 commissioner or the commissioner's designee at which the president
 of the board of trustees, the superintendent, and the campus
 principal shall appear and explain the campus's low performance,
 lack of improvement, and plans for improvement; or
 (2)  establish a school community partnership team
 composed of members of the campus-level planning and
 decision-making committee established under Section 11.251 and
 additional community representatives as determined appropriate by
 the commissioner
 [(7)     appoint a campus intervention team under Section
 39.1322].
 (c)  Notwithstanding the provisions of this subchapter, if
 the commissioner determines that a campus subject to interventions
 or sanctions under this subchapter has implemented substantially
 similar intervention measures under federal accountability
 requirements, the commissioner may accept the substantially
 similar intervention measures as measures in compliance with this
 subchapter.
 Sec. 39.104 [39.1321]. INTERVENTIONS AND SANCTIONS FOR
 CHARTER SCHOOLS. (a) Interventions and sanctions [Sanctions]
 authorized under this chapter for a school district or campus apply
 in the same manner to an open-enrollment charter school.
 (b) The commissioner shall adopt rules to implement
 procedures to impose any intervention or sanction provision under
 this chapter as those provisions relate to open-enrollment charter
 schools.
 (c) In adopting rules under this section, the commissioner
 shall require that the charter of an open-enrollment charter
 school:
 (1) be automatically revoked if the charter school is
 ordered closed under this chapter; and
 (2) be automatically modified to remove authorization
 for an individual campus if the campus is ordered closed under this
 chapter.
 (d) If interventions or sanctions are imposed on an
 open-enrollment charter school under the procedures provided by
 this chapter, a charter school is not entitled to an additional
 hearing relating to the modification, placement on probation,
 revocation, or denial of renewal of a charter as provided by
 Subchapter D, Chapter 12.
 Sec. 39.105 [39.1322]. [TECHNICAL ASSISTANCE AND] CAMPUS
 IMPROVEMENT PLAN [INTERVENTION TEAMS]. (a) This section applies
 if [If] a campus performance satisfies performance standards under
 Section 39.054(e) [is rated academically acceptable] for the
 current school year but would not satisfy performance standards
 under Section 39.054(e) [be rated as academically unacceptable] if
 the [performance] standards to be used for the following school
 year were applied to the current school year. On request of[,] the
 commissioner, the campus-level committee established under Section
 11.251 shall revise and submit to the commissioner in an electronic
 format the portions of the campus improvement plan developed under
 Section 11.253 that are relevant to those areas for which the campus
 would not satisfy performance standards [select and assign a
 technical assistance team to assist the campus in executing a
 school improvement plan and any other school improvement strategies
 the commissioner determines appropriate.    The commissioner may
 waive the requirement to assign a technical assistance team under
 this subsection if the improvement in performance standards among
 all student groups, including special populations, over the
 preceding three years indicates that the campus is likely to be
 rated academically acceptable in the following school year].
 (b) If the [a] campus to which this section applies is an
 open-enrollment charter school, the school shall establish a
 campus-level planning and decision-making committee as provided
 for through procedures as much as practicable the same as those
 provided by Sections 11.251(b)-(e) and develop a campus improvement
 plan as provided by Section 11.253. On request of the commissioner,
 the school shall submit to the commissioner in an electronic format
 the portions of the campus improvement plan that are relevant to
 those areas for which the campus would not satisfy performance
 standards [has been identified as academically unacceptable under
 Section 39.132, the commissioner shall appoint a campus
 intervention team.
 [(c)     To the extent practicable, the commissioner shall
 select and assign the technical assistance team under Subsection
 (a) or the campus intervention team under Subsection (b) before the
 first day of instruction for the school year.
 [(d)     The commissioner may determine when the services of a
 technical assistance team or campus intervention team are no longer
 needed at a campus under this section].
 Sec. 39.106 [39.1323]. CAMPUS INTERVENTION TEAM
 [PROCEDURES]. (a) If a campus performance is below any standard
 under Section 39.054(e), the commissioner shall assign a campus
 intervention team. A campus intervention team shall:
 (1) conduct, with the involvement and advice of the
 school community partnership team, if applicable:
 (A) a targeted [comprehensive] on-site needs
 assessment relevant to an area of insufficient performance
 [evaluation] of the campus as provided by Subsection (b) [to
 determine the cause for the campus's low performance and lack of
 progress]; or
 (B)  if the commissioner determines necessary, a
 comprehensive on-site needs assessment, using the procedures
 provided by Subsection (b);
 (2) recommend appropriate actions as provided by
 Subsection (c)[, including reallocation of resources and technical
 assistance, changes in school procedures or operations, staff
 development for instructional and administrative staff,
 intervention for individual administrators or teachers, waivers
 from state statute or rule, or other actions the team considers
 appropriate];
 (3) assist in the development of a targeted [school]
 improvement plan [for student achievement]; [and]
 (4) assist the campus in submitting the targeted
 improvement plan to the board of trustees for approval and
 presenting the plan in a public hearing as provided by Subsection
 (e-1); and
 (5) assist the commissioner in monitoring the progress
 of the campus in implementing the targeted [school] improvement
 plan [for improvement of student achievement].
 (b) An [A campus intervention team assigned under Section
 39.1322 to a campus shall conduct a comprehensive] on-site needs
 assessment of the campus under Subsection (a) must [to] determine
 the contributing education-related and other [causal] factors
 resulting in the campus's low performance and lack of progress. The
 team shall use all of the following guidelines and procedures
 relevant to each area of insufficient performance in conducting a
 targeted on-site needs assessment and shall use each of the
 following guidelines and procedures in conducting a [the]
 comprehensive on-site needs assessment [of the campus]:
 (1) an assessment of the staff to determine the
 percentage of certified teachers who are teaching in their field,
 the percentage of teachers who are fully certified, the number of
 teachers with more [less] than three years of experience, and
 teacher retention [turnover] rates;
 (2) compliance with the appropriate class-size rules
 and number of class-size waivers received;
 (3) an assessment of the quality, quantity, and
 appropriateness of instructional materials, including the
 availability of technology-based instructional materials;
 (4) a report on the parental involvement strategies
 and the effectiveness of the strategies;
 (5) an assessment of the extent and quality of the
 mentoring program provided for new teachers on the campus and
 provided for experienced teachers on the campus who have less than
 two years of teaching experience in the subject or grade level to
 which the teacher is assigned;
 (6) an assessment of the type and quality of the
 professional development provided to the staff;
 (7) a demographic analysis of the student population,
 including student demographics, at-risk populations, and special
 education percentages;
 (8) a report of disciplinary incidents and school
 safety information;
 (9) financial and accounting practices;
 (10) an assessment of the appropriateness of the
 curriculum and teaching strategies; [and]
 (11) a comparison of the findings from Subdivisions
 (1) through (10) to other campuses serving the same grade levels
 within the district or to other campuses within the campus's
 comparison group if there are no other campuses within the district
 serving the same grade levels as the campus; and
 (12) any other research-based data or information
 obtained from a data collection process that would assist the
 campus intervention team in:
 (A) recommending an action under Subsection (c);
 and
 (B) executing a targeted [school] improvement
 plan under Subsection (d-3) [(d)].
 (c) On completing the on-site needs assessment [evaluation]
 under this section, the campus intervention team shall, with the
 involvement and advice of the school community partnership team, if
 applicable, recommend actions relating to any area of insufficient
 performance, including:
 (1) reallocation of resources;
 (2) technical assistance;
 (3) changes in school procedures or operations;
 (4) staff development for instructional and
 administrative staff;
 (5) intervention for individual administrators or
 teachers;
 (6) waivers from state statutes or rules; [or]
 (7) teacher recruitment or retention strategies and
 incentives provided by the district to attract and retain teachers
 with the characteristics included in Subsection (b)(1); or
 (8) other actions the campus intervention team
 considers appropriate.
 (d) The campus intervention team shall assist the campus in
 submitting the targeted improvement plan to the commissioner for
 approval.
 (d-1)  The commissioner may authorize a school community
 partnership team established under this subchapter to supersede the
 authority of and satisfy the requirements of establishing and
 maintaining a campus-level planning and decision-making committee
 under Subchapter F, Chapter 11.
 (d-2)  The commissioner may authorize a targeted improvement
 plan or updated plan developed under this subchapter to supersede
 the provisions of and satisfy the requirements of developing,
 reviewing, and revising a campus improvement plan under Subchapter
 F, Chapter 11.
 (d-3) In executing the targeted [a school] improvement plan
 [developed under Subsection (a)(3)], the campus intervention team
 shall, if appropriate:
 (1) assist the campus in implementing research-based
 practices for curriculum development and classroom instruction,
 including bilingual education and special education programs[, if
 appropriate,] and financial management;
 (2) provide research-based technical assistance,
 including data analysis, academic deficiency identification,
 intervention implementation, and budget analysis, to strengthen
 and improve the instructional programs at the campus; and
 (3) require the district to develop a teacher
 recruitment and retention plan to address the qualifications and
 retention of the teachers at the campus [submit the school
 improvement plan to the commissioner for approval].
 (e) For each year a campus is assigned an unacceptable
 performance rating, a [A] campus intervention team shall [appointed
 under Section 39.1322(b)]:
 (1) [shall] continue to work with a campus until:
 (A) the campus satisfies all performance
 standards under Section 39.054(e) [is rated academically
 acceptable] for a two-year period; or
 (B) the campus satisfies all performance
 standards under Section 39.054(e) [is rated academically
 acceptable] 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; [and]
 (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 [may continually
 update the school improvement plan, with approval from the
 commissioner, to meet the needs of the campus].
 (e-1)  After a targeted improvement plan or updated plan is
 submitted to the board of trustees of the school district, the
 board:
 (1) shall conduct a hearing for the purpose of:
 (A)  notifying the public of the insufficient
 performance, the improvements in performance expected by the
 agency, and the intervention measures or sanctions that may be
 imposed under this subchapter if the performance does not improve
 within a designated period; and
 (B)  soliciting public comment on the targeted
 improvement plan or any updated plan;
 (2)  must post the targeted improvement plan on the
 district's Internet website before the hearing;
 (3)  may conduct one hearing relating to one or more
 campuses subject to a targeted improvement plan or an updated plan;
 and
 (4)  shall submit the targeted improvement plan or any
 updated plan to the commissioner for approval.
 (f) Notwithstanding any other provision of this subchapter,
 if the commissioner determines that a campus for which an
 intervention is ordered under Subsection (a) [Section 39.1322(b)]
 is not fully implementing the campus intervention team's
 recommendations or targeted [school] improvement plan or updated
 plan, the commissioner may order the reconstitution of the campus
 as provided by Section 39.107.
 Sec. 39.107 [39.1324]. RECONSTITUTION, REPURPOSING,
 ALTERNATIVE MANAGEMENT, AND CLOSURE [MANDATORY SANCTIONS]. (a)
 After [If] a campus has been identified as [academically]
 unacceptable for two consecutive school years, [including the
 current school year,] the commissioner shall order the
 reconstitution of the campus [and assign a campus intervention
 team].
 (a-1) In reconstituting a [the] campus, a campus
 intervention team shall assist the campus in:
 (1) developing an updated targeted [a school]
 improvement plan;
 (2)  submitting the updated targeted improvement plan
 to the board of trustees of the school district for approval and
 presenting the plan in a public hearing as provided by Section
 39.106(e-1);
 (3) [(2)] obtaining approval of the updated plan from
 the commissioner; and
 (4) [(3)] executing the plan on approval by the
 commissioner.
 (b) The campus intervention team shall decide which
 educators may be retained at that campus. A principal who has been
 employed by the campus in that capacity during the full [two-year]
 period described by Subsection (a) may not be retained at that
 campus unless the campus intervention team determines that
 retention of the principal would be more beneficial to the student
 achievement and campus stability than removal.
 (b-1) A teacher of a subject assessed by an assessment
 instrument under Section 39.023 may be retained only if the campus
 intervention team determines that a pattern exists of significant
 academic improvement by students taught by the teacher. If an
 educator is not retained, the educator may be assigned to another
 position in the district.
 (b-2)  For each year that a campus is considered to have an
 unacceptable performance rating, a campus intervention team shall:
 (1)  assist in updating the targeted improvement plan
 to identify and analyze areas of growth and areas that require
 improvement;
 (2) submit the updated plan to:
 (A)  the board of trustees of the school district;
 and
 (B) the parents of campus students; and
 (3)  assist in submitting the updated plan to the
 commissioner for approval.
 (c) A campus subject to Subsection (a) shall implement the
 updated targeted [school] improvement plan as approved by the
 commissioner. The commissioner may appoint a monitor, conservator,
 management team, or [a] board of managers to the district to ensure
 and oversee district-level support to low-performing campuses and
 the implementation of the updated targeted [school] improvement
 plan. In making appointments under this subsection, the
 commissioner shall consider individuals who have demonstrated
 success in managing campuses with student populations similar to
 the campus at which the individual appointed will serve.
 (d) If [Notwithstanding any other provision of this
 subchapter, if] the commissioner determines that the [a] campus
 [subject to Subsection (a)] is not fully implementing the updated
 targeted [school] improvement plan or if the students enrolled at
 the campus fail to demonstrate substantial improvement in the areas
 targeted by the updated plan, the commissioner may order:
 (1) repurposing of the campus under this section;
 (2) [pursue] alternative management of the campus
 under this section; [Section 39.1327] or
 (3) [may order] closure of the campus.
 (e) [If a campus is considered an academically unacceptable
 campus for the subsequent school year after the campus is
 reconstituted under this section, the commissioner shall review the
 progress of the campus and may order closure of the campus or pursue
 alternative management under Section 39.1327.
 [(f)] If a campus is considered to have an unacceptable
 performance rating [considered academically unacceptable] for
 three [two] consecutive school years after the campus is
 reconstituted under Subsection (a), the commissioner shall order:
 (1) repurposing of the campus under this section;
 (2)  alternative management of the campus under this
 section; or
 (3) closure of the campus [or pursue alternative
 management under Section 39.1327].
 (e-1)  The commissioner may waive the requirement to enter an
 order under Subsection (e) for not more than one school year if the
 commissioner determines that, on the basis of significant
 improvement in student performance over the preceding two school
 years, the campus is likely to be assigned an acceptable
 performance rating for the following school year.
 (f)  If the commissioner orders repurposing of a campus, the
 school district shall develop a comprehensive plan for repurposing
 the campus and submit the plan to the board of trustees for
 approval, using the procedures described by Section 39.106(e-1),
 and to the commissioner for approval. The plan must include a
 description of a rigorous and relevant academic program for the
 campus. The plan may include various instructional models. The
 commissioner may not approve the repurposing of a campus unless:
 (1)  all students in the assigned attendance zone of
 the campus in the school year immediately preceding the repurposing
 of the campus are provided with the opportunity to enroll in and are
 provided transportation on request to another campus, unless the
 commissioner grants an exception because there is no other campus
 in the district in which the students may enroll;
 (2)  the principal is not retained at the campus,
 unless the commissioner determines that students enrolled at the
 campus have demonstrated significant academic improvement; and
 (3)  teachers employed at the campus in the school year
 immediately preceding the repurposing of the campus are not
 retained at the campus, unless the commissioner or the
 commissioner's designee grants an exception, at the request of a
 school district, for:
 (A)  a teacher who provides instruction in a
 subject other than a subject for which an assessment instrument is
 administered under Section 39.023(a) or (c) who demonstrates to the
 commissioner satisfactory performance; or
 (B)  a teacher who provides instruction in a
 subject for which an assessment instrument is administered under
 Section 39.023(a) or (c) if the district demonstrates that the
 students of the teacher demonstrated satisfactory performance or
 improved academic growth on that assessment instrument.
 (g)  If an educator is not retained under Subsection (f), the
 educator may be assigned to another position in the district.
 (h)  If the commissioner orders alternative management under
 this section, the [Sec.   39.1327.     MANAGEMENT OF CERTAIN
 ACADEMICALLY UNACCEPTABLE CAMPUSES.    (a)     A campus may be subject
 to this section if the campus has been identified as academically
 unacceptable under Section 39.132 and the commissioner orders
 alternative management under Section 39.1324(d), (e), or (f).
 [(b) The] commissioner shall solicit proposals from
 qualified nonprofit entities to assume management of a campus
 subject to this section or may appoint to assume management of a
 campus subject to this section a school district other than the
 district in which the campus is located that is located in the
 boundaries of the same regional education service center as the
 campus is located. The commissioner may solicit proposals from
 qualified for-profit entities to assume management of a campus
 subject to this section if a nonprofit entity has not responded to
 the commissioner's request for proposals. A district appointed
 under this section shall assume management of a campus subject to
 this section in the same manner provided by this section for a
 qualified [nonprofit] entity or in accordance with commissioner
 rule.
 (i) [(c)] If the commissioner determines that the basis for
 the unsatisfactory performance of [identifying] a campus for more
 than two consecutive school years [as academically unacceptable] is
 limited to a specific condition that may be remedied with targeted
 technical assistance, the commissioner may[:
 [(1)     provide the campus a one-year waiver under this
 section; and
 [(2)] require the district to contract for the
 appropriate technical assistance.
 (j) [(d)] The commissioner may annually solicit proposals
 under this section for the management of a campus subject to this
 section. The commissioner shall notify a qualified [nonprofit]
 entity that has been approved as a provider under this section. The
 district must execute a contract with an approved provider and
 relinquish control of the campus before January 1 of the school
 year.
 (k) [(e)] 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 [academically unacceptable] campuses considered to have 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.
 (l) [(f)] In selecting a managing entity under this
 section, the commissioner shall give preference to a qualified
 [nonprofit] entity that:
 (1) meets any qualifications under this section; and
 (2) has documented success in educating students from
 similar demographic groups and with similar educational needs as
 the students who attend the campus that is to be operated by a
 managing entity under this section.
 (m) [(g)] The school district may negotiate the term of a
 management contract for not more than five years with an option to
 renew the contract. The management contract must include a
 provision describing the district's responsibilities in supporting
 the operation of the campus. The commissioner shall approve the
 contract before the contract is executed and, as appropriate, may
 require the district, as a term of the contract, to support the
 campus in the same manner as the district was required to support
 the campus before the execution of the management contract.
 (n) [(h)] A management contract under this section shall
 include provisions approved by the commissioner that require the
 managing entity to demonstrate improvement in campus performance,
 including negotiated performance measures. The performance
 measures must be consistent with the priorities of this chapter.
 The commissioner shall evaluate a managing entity's performance on
 the first and second anniversaries of the date of the management
 contract. If the evaluation fails to demonstrate improvement as
 negotiated under the contract by the first anniversary of the date
 of the management contract, the district may terminate the
 management contract, with the commissioner's consent, for
 nonperformance or breach of contract and select another provider
 from an approved list provided by the commissioner. If the
 evaluation fails to demonstrate significant improvement, as
 determined by the commissioner, by the second anniversary of the
 date of the management contract, the district shall terminate the
 management contract and select another provider from an approved
 list provided by the commissioner or resume operation of the campus
 if approved by the commissioner. If the commissioner approves the
 district's operation of the campus, the commissioner shall assign a
 technical assistance team to assist the campus.
 (o) [(i)] Notwithstanding any other provision of this code,
 the funding for a campus operated by a managing entity must be not
 less than the funding of the other campuses in the district on a per
 student basis so that the managing entity receives at least the same
 funding the campus would otherwise have received.
 (p) [(j)] Each campus operated by a managing entity under
 this section is subject to this chapter in the same manner as any
 other campus in the district.
 (q) [(k)] The commissioner may adopt rules necessary to
 implement this section.
 (r) [(l)] With respect to the management of a campus under
 this section:
 (1) a managing entity is considered to be a
 governmental body for purposes of Chapters 551 and 552, Government
 Code; and
 (2) any requirement in Chapter 551 or 552, Government
 Code, that applies to a school district or the board of trustees of
 a school district applies to a managing entity.
 Sec. 39.108 [39.133]. ANNUAL REVIEW. The commissioner
 shall review annually the performance of a district or campus
 subject to this subchapter to determine the appropriate actions to
 be implemented under this subchapter. The commissioner must review
 at least annually the performance of a district for which the
 accreditation status or rating has been lowered due to insufficient
 [unacceptable] student performance and may not raise the
 accreditation status or rating until the district has demonstrated
 improved student performance. If the review reveals a lack of
 improvement, the commissioner shall increase the level of state
 intervention and sanction unless the commissioner finds good cause
 for maintaining the current status.
 Sec. 39.109 [39.1331]. ACQUISITION OF PROFESSIONAL
 SERVICES. In addition to other interventions and sanctions
 authorized under this subchapter [Sections 39.131 and 39.132], the
 commissioner may order a school district or campus to acquire
 professional services at the expense of the district or campus to
 address the applicable financial, assessment, data quality,
 program, performance, or governance deficiency. The
 commissioner's order may require the district or campus to:
 (1) select or be assigned an external auditor, data
 quality expert, professional authorized to monitor district
 assessment instrument administration, or curriculum or program
 expert; or
 (2) provide for or participate in the appropriate
 training of district staff or board of trustees members in the case
 of a district, or campus staff, in the case of a campus.
 Sec. 39.110 [39.134]. COSTS PAID BY DISTRICT. The costs of
 providing a monitor, conservator, management team, campus
 intervention team, technical assistance team, managing entity, or
 service provider under this subchapter [Section 39.1327, or service
 provider under Section 39.1331] shall be paid by the district. If
 the district fails or refuses to pay the costs in a timely manner,
 the commissioner may:
 (1) pay the costs using amounts withheld from any
 funds to which the district is otherwise entitled; or
 (2) recover the amount of the costs in the manner
 provided for recovery of an overallocation of state funds under
 Section 42.258.
 Sec. 39.111 [39.135]. CONSERVATOR OR MANAGEMENT TEAM. (a)
 The commissioner shall clearly define the powers and duties of a
 conservator or management team appointed to oversee the operations
 of the district.
 (b) At least every 90 days, the commissioner shall review
 the need for the conservator or management team and shall remove the
 conservator or management team unless the commissioner determines
 that continued appointment is necessary for effective governance of
 the district or delivery of instructional services.
 (c) A conservator or management team, if directed by the
 commissioner, shall prepare a plan for the implementation of action
 under Section 39.102(a)(9) [39.131(a)(9)] or (10). The conservator
 or management team:
 (1) may direct an action to be taken by the principal
 of a campus, the superintendent of the district, or the board of
 trustees of the district;
 (2) may approve or disapprove any action of the
 principal of a campus, the superintendent of the district, or the
 board of trustees of the district;
 (3) may not take any action concerning a district
 election, including ordering or canceling an election or altering
 the date of or the polling places for an election;
 (4) may not change the number of or method of selecting
 the board of trustees;
 (5) may not set a tax rate for the district; and
 (6) may not adopt a budget for the district that
 provides for spending a different amount, exclusive of required
 debt service, from that previously adopted by the board of
 trustees.
 Sec. 39.112 [39.136]. BOARD OF MANAGERS. (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.
 This subchapter applies to a district governed by a board of
 managers in the same manner that this subchapter applies to any
 other district.
 (b) If the commissioner appoints a board of managers to
 govern a district, the powers of the board of trustees of the
 district are suspended for the period of the appointment and the
 commissioner shall appoint a district superintendent.
 Notwithstanding any other provision of this code, the board of
 managers may amend the budget of the district.
 (c) If the commissioner appoints a board of managers to
 govern a campus, the powers of the board of trustees of the district
 in relation to the campus are suspended for the period of the
 appointment and the commissioner shall appoint a campus principal.
 Notwithstanding any other provision of this code, the board of
 managers may submit to the commissioner for approval amendments to
 the budget of the district for the benefit of the campus. If the
 commissioner approves the amendments, the board of trustees of the
 district shall adopt the amendments.
 (d) A conservator or a member of a management team appointed
 to serve on a board of managers may continue to be compensated as
 determined by the commissioner.
 (e) At the direction of the commissioner but not later than
 the second anniversary of the date the board of managers of a
 district was appointed, the board of managers shall order an
 election of members of the district board of trustees. The election
 must be held on a uniform election date on which an election of
 district trustees may be held under Section 41.001, Election Code,
 that is at least 180 days after the date the election was ordered.
 On qualification of members for office, the board of trustees
 assumes all of the powers and duties assigned to a board of trustees
 by law, rule, or regulation.
 Sec. 39.113 [39.137]. [SPECIAL] CAMPUS INTERVENTION TEAM.
 A [special] campus intervention team appointed under this
 subchapter may consist of teachers, principals, other educational
 professionals, and superintendents recognized for excellence in
 their roles and appointed by the commissioner to serve as members of
 a team.
 Sec. 39.114 [39.138]. IMMUNITY FROM CIVIL LIABILITY. An
 employee, volunteer, or contractor acting on behalf of the
 commissioner under this subchapter is immune from civil liability
 to the same extent as a professional employee of a school district
 under Section 22.051.
 Sec. 39.115.  CAMPUS NAME CHANGE PROHIBITED. In
 reconstituting, repurposing, or imposing any other intervention or
 sanction on a campus under this subchapter, the commissioner may
 not require that the name of the campus be changed.
 Sec. 39.116.  TRANSITIONAL INTERVENTIONS AND SANCTIONS. (a)
 During the period of transition to the accreditation system
 established under H.B. No. 3, Acts of the 81st Legislature, Regular
 Session, 2009, to be implemented in August 2013, the commissioner
 may suspend assignment of accreditation statuses and performance
 ratings for the 2011-2012 school year.
 (b)  As soon as practicable following the 2011-2012 school
 year, the commissioner shall report district and campus performance
 under the student achievement indicators under Sections
 39.053(c)(1)(A) and (B).
 (c) For the 2012-2013 school year, the commissioner shall:
 (1)  report district and campus performance under the
 student achievement indicator under Section 39.053(c)(1)(B); and
 (2)  evaluate district and campus performance under the
 student achievement indicator under Section 39.053(c)(1)(A) and
 assign district accreditation statuses and district and campus
 performance ratings based on that evaluation.
 (d)  Beginning with the 2013-2014 school year, the
 commissioner shall evaluate district and campus performance under
 the student achievement indicators under Sections 39.053(c)(1)(A)
 and (B) and assign district accreditation statuses and district and
 campus performance ratings based on that evaluation.
 (e)  During the 2011-2012 and 2012-2013 school years, the
 commissioner shall continue to implement interventions and
 sanctions for districts and campuses identified as having
 unacceptable performance in the 2010-2011 school year in accordance
 with the performance standards applicable during the 2010-2011
 school year and may increase or decrease the level of interventions
 and sanctions based on an evaluation of the district's or campus's
 performance.
 (f)  For purposes of determining multiple years of
 unacceptable performance and required district and campus
 interventions and sanctions under this subchapter, the performance
 ratings and accreditation statuses issued in the 2010-2011 and
 2012-2013 school years shall be considered consecutive.
 (g) This section expires September 1, 2014.
 SUBCHAPTER F [K]. PROCEDURES FOR CHALLENGE OF ACCOUNTABILITY
 DETERMINATION, INTERVENTION, [RATING] OR SANCTION
 Sec. 39.151 [39.301]. REVIEW BY COMMISSIONER:
 ACCOUNTABILITY DETERMINATION [RATINGS]. (a) The commissioner by
 rule shall provide a process for a school district or
 open-enrollment charter school to challenge an agency decision made
 under this chapter relating to an academic or financial
 accountability rating that affects the district or school.
 (b) The rules under Subsection (a) must provide for the
 commissioner to appoint a committee to make recommendations to the
 commissioner on a challenge made to an agency decision relating to
 an academic performance rating or determination or financial
 accountability rating. The commissioner may not appoint an agency
 employee as a member of the committee.
 (c) The commissioner may limit a challenge under this
 section to a written submission of any issue identified by the
 school district or open-enrollment charter school challenging the
 agency decision.
 (d) The commissioner shall make a final decision under this
 section after considering the recommendation of the committee
 described by Subsection (b). The commissioner's decision may not
 be appealed under Section 7.057 or other law.
 (e) A school district or open-enrollment charter school may
 not challenge an agency decision relating to an academic or
 financial accountability rating under this chapter in another
 proceeding if the district or school has had an opportunity to
 challenge the decision under this section.
 Sec. 39.152 [39.302]. REVIEW BY STATE OFFICE OF
 ADMINISTRATIVE HEARINGS: SANCTIONS. (a) A school district or
 open-enrollment charter school that intends to challenge a decision
 by the commissioner under this chapter to close the district or a
 district campus or the charter school or to pursue alternative
 management of a district campus or the charter school must appeal
 the decision under the procedures provided for a contested case
 under Chapter 2001, Government Code.
 (b) A challenge to a decision under this section is under
 the substantial evidence rule as provided by Subchapter G, Chapter
 2001, Government Code.
 (c) Notwithstanding other law:
 (1) the State Office of Administrative Hearings shall
 provide an expedited review of a challenge under this section;
 (2) the administrative law judge shall issue a final
 order not later than the 30th day after the date on which the
 hearing is finally closed; and
 (3) the decision of the administrative law judge is
 final and may not be appealed.
 SUBCHAPTER G.  DISTINCTION DESIGNATIONS
 Sec. 39.201.  DISTINCTION DESIGNATIONS.  Not later than
 August 8 of each year, the commissioner shall award distinction
 designations under this subchapter.  A district or campus may not be
 awarded a distinction designation under this subchapter unless the
 district or campus has acceptable performance under Section 39.054.
 Sec. 39.202.  ACADEMIC EXCELLENCE DISTINCTION DESIGNATION
 FOR DISTRICTS AND CAMPUSES. The commissioner by rule shall
 establish a recognized and exemplary rating for awarding districts
 and campuses an academic distinction designation under this
 subchapter. In establishing the recognized and exemplary ratings,
 the commissioner shall adopt criteria for the ratings, including:
 (1) percentages of students who:
 (A)  performed satisfactorily, as determined
 under the college readiness performance standard under Section
 39.0241, on assessment instruments required under Section
 39.023(a), (b), (c), or (l), aggregated across grade levels by
 subject area; or
 (B)  met the standard for annual improvement, as
 determined by the agency under Section 39.034, on assessment
 instruments required under Section 39.023(a), (b), (c), or (l),
 aggregated across grade levels by subject area, for students who
 did not perform satisfactorily as described by Paragraph (A); and
 (2)  other factors for determining sufficient student
 attainment of postsecondary readiness.
 Sec. 39.203.  CAMPUS DISTINCTION DESIGNATIONS.  (a)  The
 commissioner shall award a campus a distinction designation if the
 campus is ranked in the top 25 percent of campuses in the state in
 annual improvement in student achievement as determined under
 Section 39.034.
 (b)  In addition to the distinction designation described by
 Subsection (a), the commissioner shall award a campus a distinction
 designation if the campus demonstrates an ability to significantly
 diminish or eliminate performance differentials between student
 subpopulations and is ranked in the top 25 percent of campuses in
 this state under the performance criteria described by this
 subsection.  The commissioner shall adopt rules related to the
 distinction designation under this subsection to ensure that a
 campus does not artificially diminish or eliminate performance
 differentials through inhibiting the achievement of the highest
 achieving student subpopulation.
 (c)  In addition to the distinction designations described
 by Subsections (a) and (b), a campus that satisfies the criteria
 developed under Section 39.204 shall be awarded a distinction
 designation by the commissioner for the following programs or the
 following specific categories of performance:
 (1)  academic achievement in English language arts,
 mathematics, science, or social studies;
 (2) fine arts;
 (3) physical education;
 (4) 21st Century Workforce Development program; and
 (5) second language acquisition program.
 Sec. 39.204.  CAMPUS DISTINCTION DESIGNATION CRITERIA;
 COMMITTEES. (a) The commissioner by rule shall establish:
 (1)  standards for considering campuses for
 distinction designations under Section 39.203(c); and
 (2)  methods for awarding distinction designations to
 campuses.
 (b)  In adopting rules under this section, the commissioner
 shall establish a separate committee to develop criteria for each
 distinction designation under Section 39.203(c).
 (c)  Each committee established under this section must
 include:
 (1)  individuals who practice as professionals in the
 content area relevant to the distinction designation, as
 applicable;
 (2)  individuals with subject matter expertise in the
 content area relevant to the distinction designation;
 (3)  educators with subject matter expertise in the
 content area relevant to the distinction designation; and
 (4)  community leaders, including leaders from the
 business community.
 (d)  For each committee, the governor, lieutenant governor,
 and speaker of the house of representatives may each appoint a
 person described by each subdivision of Subsection (c).
 (e)  In developing criteria for distinction designations
 under this section, each committee shall:
 (1)  identify a variety of indicators for measuring
 excellence; and
 (2)  consider categories for distinction designations,
 with criteria relevant to each category, based on:
 (A)  the level of a program, whether elementary
 school, middle or junior high school, or  high school; and
 (B) the student enrollment of a campus.
 SUBCHAPTER H [F]. ADDITIONAL REWARDS
 [Sec.   39.111.     RECOGNITION AND REWARDS. The State Board of
 Education shall develop a plan for recognizing and rewarding school
 districts and campuses that are rated as exemplary or recognized
 and for developing a network for sharing proven successful
 practices statewide and regionally. The reward may be used to
 provide educators with summer stipends to develop curricula based
 on the cited successful strategies. The educators may copyright
 the curricula they develop.]
 Sec. 39.232 [39.112]. EXCELLENCE EXEMPTIONS. (a) Except
 as provided by Subsection (b), a school campus or district that is
 rated exemplary under Subchapter G is exempt from requirements and
 prohibitions imposed under this code including rules adopted under
 this code.
 (b) A school campus or district is not exempt under this
 section from:
 (1) a prohibition on conduct that constitutes a
 criminal offense;
 (2) requirements imposed by federal law or rule,
 including requirements for special education or bilingual
 education programs; or
 (3) a requirement, restriction, or prohibition
 relating to:
 (A) curriculum essential knowledge and skills
 under Section 28.002 or high school [minimum] graduation
 requirements under Section 28.025;
 (B) public school accountability as provided by
 Subchapters B, C, D, E, and J [G];
 (C) extracurricular activities under Section
 33.081;
 (D) health and safety under Chapter 38;
 (E) purchasing [competitive bidding] under
 Subchapter B, Chapter 44;
 (F) elementary school class size limits, except
 as provided by Subsection (d) or Section 25.112;
 (G) removal of a disruptive student from the
 classroom under Subchapter A, Chapter 37;
 (H) at risk programs under Subchapter C, Chapter
 29;
 (I) prekindergarten programs under Subchapter E,
 Chapter 29;
 (J) rights and benefits of school employees;
 (K) special education programs under Subchapter
 A, Chapter 29; or
 (L) bilingual education programs under
 Subchapter B, Chapter 29.
 (c) The agency shall monitor and evaluate deregulation of a
 school campus or district under this section and Section 7.056.
 (d) The commissioner may exempt an exemplary school campus
 under Subchapter G from elementary class size limits under this
 section if the school campus submits to the commissioner a written
 plan showing steps that will be taken to ensure that the exemption
 from the class size limits will not be harmful to the academic
 achievement of the students on the school campus. The commissioner
 shall review achievement levels annually. The exemption remains in
 effect until the commissioner determines that achievement levels of
 the campus have declined.
 Sec. 39.233 [39.113]. RECOGNITION OF HIGH SCHOOL
 COMPLETION AND SUCCESS AND COLLEGE READINESS PROGRAMS. (a) The
 agency shall:
 (1) develop standards for evaluating the success and
 cost-effectiveness of high school completion and success and
 college readiness programs implemented under Section 39.234
 [39.114];
 (2) provide guidance for school districts and campuses
 in establishing and improving high school completion and success
 and college readiness programs implemented under Section 39.234
 [39.114]; and
 (3) develop standards for selecting and methods for
 recognizing school districts and campuses that offer exceptional
 high school completion and success and college readiness programs
 under Section 39.234 [39.114].
 (b) The commissioner may adopt rules for the administration
 of this section.
 Sec. 39.234 [39.114]. HIGH SCHOOL ALLOTMENT. (a) Except
 as provided by Subsection (b), a school district or campus must use
 funds allocated under Section 42.2516(b)(3) to:
 (1) implement or administer a college readiness
 program that provides academic support and instruction to prepare
 underachieving students for entrance into an institution of higher
 education;
 (2) implement or administer a program that encourages
 students to pursue advanced academic opportunities, including
 early college high school programs and dual credit, advanced
 placement, and international baccalaureate courses;
 (3) implement or administer a program that provides
 opportunities for students to take academically rigorous course
 work, including four years of mathematics and four years of science
 at the high school level;
 (4) implement or administer a program, including
 online course support and professional development, that aligns the
 curriculum for grades six through 12 with postsecondary curriculum
 and expectations; or
 (5) implement or administer other high school
 completion and success initiatives in grades six through 12
 approved by the commissioner.
 (b) A school district may use funds allocated under Section
 42.2516(b)(3) on any instructional program in grades six through 12
 other than an athletic program if:
 (1) the district's measure of progress toward college
 readiness is determined exceptional by a standard set [district is
 recognized as exceptional] by the commissioner [under the academic
 accountability indicator adopted under Section 39.051(b)(13)]; and
 (2) the district's completion rates for grades nine
 through 12 [meet or] exceed completion rate standards required by
 the commissioner to achieve a status of accredited under Section
 39.051 [rating of exemplary under Section 39.072].
 (b-1) Subsection (b) applies beginning with the 2008-2009
 school year. This subsection expires September 1, 2009.
 (c) An open-enrollment charter school is entitled to an
 allotment under this section in the same manner as a school
 district.
 (d) The commissioner shall adopt rules to administer this
 section, including rules related to the permissible use of funds
 allocated under this section to an open-enrollment charter school.
 Sec. 39.235 [39.115]. HIGH SCHOOL INNOVATION GRANT
 INITIATIVE. (a) From funds appropriated for that purpose, the
 commissioner may establish a grant program under which grants are
 awarded to secondary campuses and school districts to support:
 (1) the implementation of innovative high school
 improvement programs that are based on the best available research
 regarding high school reform, dropout prevention, and preparing
 students for postsecondary coursework or employment;
 (2) enhancing education practices that have been
 demonstrated by significant evidence of effectiveness; and
 (3) the alignment of grants and programs to the
 strategic plan adopted under Section 39.407 [39.357].
 (b) Before awarding a grant under this section, the
 commissioner may require a campus or school district to:
 (1) obtain local matching funds; or
 (2) meet other conditions, including developing a
 personal graduation plan under Section 28.0212 for each student
 enrolled at the campus or in a district high school.
 (c) The commissioner may:
 (1) accept gifts, grants, or donations from a private
 foundation to implement a grant program under this section; and
 (2) coordinate gifts, grants, or donations with other
 available funding to implement a grant program under this section.
 (d) The commissioner may use funds appropriated under this
 section to support technical assistance services for school
 districts and open-enrollment charter schools to implement a high
 school improvement program under this section.
 Sec. 39.236.  GIFTED AND TALENTED STANDARDS.  The
 commissioner shall adopt standards to evaluate school district
 programs for gifted and talented students to determine whether a
 district operates a program for gifted and talented students in
 accordance with:
 (1) the Texas Performance Standards Project; or
 (2)  another program approved by the commissioner that
 meets the requirements of the state plan for the education of gifted
 and talented students under Section 29.123.
 [Sec.   39.116.     INITIATIVE FOR RETAINING QUALITY EDUCATORS.
 Notwithstanding Section 39.1324(b), a school district, to assist in
 preventing dropouts and disruptions that may result from certain
 mandatory sanctions, may retain at a campus a principal who has been
 employed at the campus as a principal during the two-year period
 described by Section 39.1324(a) if the students enrolled at the
 campus have demonstrated a pattern of significant academic
 improvement.]
 SUBCHAPTER I [E]. SUCCESSFUL SCHOOL AWARDS
 Sec. 39.261 [39.091]. CREATION OF SYSTEM. The Texas
 Successful Schools Awards System is created to recognize and reward
 those schools and school districts that demonstrate progress or
 success in achieving the education goals of the state.
 Sec. 39.262 [39.092]. TYPES OF AWARDS. (a) The governor
 may present a financial award to the schools or districts that the
 commissioner determines have demonstrated the highest levels of
 sustained success or the greatest improvement in achieving the
 education goals. For each student in average daily attendance,
 each of those schools or districts is entitled to an amount set for
 the award for which the school or district is selected by the
 commissioner, subject to any limitation set by the commissioner on
 the total amount that may be awarded to a school or district.
 (b) The governor may present proclamations or certificates
 to additional schools and districts determined to have met or
 exceeded the education goals.
 (c) The commissioner may establish additional categories of
 awards and award amounts for a school or district determined to be
 successful under Subsection (a) or (b) that are contingent on the
 school's or district's involvement with paired, lower-performing
 schools.
 Sec. 39.263 [39.093]. AWARDS. (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 [academic
 excellence] indicators adopted under Section 39.053(c) and
 consideration of the distinction designation criteria prescribed
 by or developed under Subchapter G [39.051].
 (b) For purposes of selecting schools and districts under
 Section 39.262(a) [39.092(a)], each school's performance shall be
 compared to state standards and to its previous performance.
 (c) [(b)] The commissioner shall select annually schools
 and districts qualified to receive successful school awards for
 their performance and report the selections to the governor and the
 State Board of Education.
 (d) [(c)] The agency shall notify each school district of
 the manner in which the district or a school in the district may
 qualify for a successful school award.
 Sec. 39.264 [39.094]. USE OF AWARDS. (a) In determining
 the use of a monetary award received under this subchapter, a school
 or district shall give priority to academic enhancement purposes.
 The award may not be used for any purpose related to athletics, and
 it may not be used to substitute for or replace funds already in the
 regular budget for a school or district.
 (b) The campus-level committee established under Section
 11.253 shall determine the use of the funds awarded to a school
 under this subchapter. The professional staff of the district
 shall determine the use of the funds awarded to the school district
 under this subchapter.
 Sec. 39.265 [39.095]. FUNDING. The award system may be
 funded by donations, grants, or legislative appropriations. The
 commissioner may solicit and receive grants and donations for the
 purpose of making awards under this subchapter. A small portion of
 the award funds may be used by the commissioner to pay for the costs
 associated with sponsoring a ceremony to recognize or present
 awards to schools or districts under this subchapter. The
 donations, grants, or legislative appropriations shall be
 accounted for and distributed by the agency. The awards are subject
 to audit requirements established by the State Board of Education.
 Sec. 39.266 [39.096]. CONFIDENTIALITY. All information
 and reports received by the commissioner under this subchapter from
 schools or school districts deemed confidential under Chapter 552,
 Government Code, are confidential and may not be disclosed in any
 public or private proceeding.
 SUBCHAPTER J.  PARENT AND EDUCATOR REPORTS
 Sec. 39.301.  ADDITIONAL PERFORMANCE INDICATORS:
 REPORTING. (a)  In addition to the indicators adopted under
 Section 39.053, the commissioner shall adopt indicators of the
 quality of learning for the purpose of preparing reports under this
 chapter. The commissioner biennially shall review the indicators
 for the consideration of appropriate revisions.
 (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 Section
 39.053(c).
 (c) Indicators for reporting purposes must include:
 (1)  the percentage of graduating students who meet the
 course requirements established by State Board of Education rule
 for the minimum high school program, the recommended high school
 program, and the advanced high school program;
 (2)  the results of the SAT, ACT, articulated
 postsecondary degree programs described by Section 61.852, and
 certified workforce training programs described by Chapter 311,
 Labor Code;
 (3)  for students who have failed to perform
 satisfactorily, under each performance standard under Section
 39.0241, on an assessment instrument required under Section
 39.023(a) or (c), the performance of those students on subsequent
 assessment instruments required under those sections, aggregated
 by grade level and subject area;
 (4)  for each campus, the number of students,
 disaggregated by major student subpopulations, that agree under
 Section 28.025(b) to take courses under the minimum high school
 program;
 (5)  the percentage of students, aggregated by grade
 level, provided accelerated instruction under Section 28.0211(c),
 the results of assessment instruments administered under that
 section, the percentage of students promoted through the grade
 placement committee process under Section 28.0211, the subject of
 the assessment instrument on which each student failed to perform
 satisfactorily under each performance standard under Section
 39.0241, and the performance of those students in the school year
 following that promotion on the assessment instruments required
 under Section 39.023;
 (6)  the percentage of students of limited English
 proficiency exempted from the administration of an assessment
 instrument under Sections 39.027(a)(1) and (2);
 (7)  the percentage of students in a special education
 program under Subchapter A, Chapter 29, assessed through assessment
 instruments developed or adopted under Section 39.023(b);
 (8)  the percentage of students who satisfy the college
 readiness measure;
 (9)  the measure of progress toward dual language
 proficiency under Section 39.034(b), for students of limited
 English proficiency, as defined by Section 29.052;
 (10)  the percentage of students who are not
 educationally disadvantaged;
 (11)  the percentage of students who enroll and begin
 instruction at an institution of higher education in the school
 year following high school graduation; and
 (12)  the percentage of students who successfully
 complete the first year of instruction at an institution of higher
 education without needing a developmental education course.
 (d)  Performance on the indicators described by Section
 39.053(c) and Subsections (c)(3), (4), and (9) must be based on
 longitudinal student data that is disaggregated by the bilingual
 education or special language program, if any, in which students of
 limited English proficiency, as defined by Section 29.052, are or
 former students of limited English proficiency were enrolled.  If a
 student described by this subsection is not or was not enrolled in
 specialized language instruction, the number and percentage of
 those students shall be provided.
 (e)  Section 39.055 applies in evaluating indicators
 described by Subsection (c).
 Sec. 39.302.  REPORT TO DISTRICT: COMPARISONS FOR ANNUAL
 PERFORMANCE ASSESSMENT. (a) The agency shall report to each school
 district the comparisons of student performance made under Section
 39.034.
 (b)  To the extent practicable, the agency shall combine the
 report of comparisons with the report of the student's performance
 on assessment instruments under Section 39.023.
 Sec. 39.303.  REPORT TO PARENTS. (a) The school district a
 student attends shall provide a record of the comparisons made
 under Section 39.034 and provided to the district under Section
 39.302 in a written notice to the student's parent or other person
 standing in parental relationship.
 (b)  For a student who failed to perform satisfactorily as
 determined under either performance standard under Section 39.0241
 on an assessment instrument administered under Section 39.023(a),
 (c), or (l), the school district shall include in the notice
 specific information relating to access to online educational
 resources at the appropriate assessment instrument content level,
 including educational resources described by Section 32.252(b)(2)
 and assessment instrument questions and answers released under
 Section 39.023(e).
 Sec. 39.304.  TEACHER REPORT CARD.  (a)  Each school district
 shall prepare a report of the comparisons made under Section 39.034
 and provided to the district under Section 39.302 and provide the
 report at the beginning of the school year to:
 (1)  each teacher for all students, including incoming
 students, who were assessed on an assessment instrument under
 Section 39.023; and
 (2)  all students under Subdivision (1) who were
 provided instruction by that teacher in the subject for which the
 assessment instrument was administered under Section 39.023.
 (b)  The report shall indicate whether the student performed
 satisfactorily or, if the student did not perform satisfactorily,
 whether the student met the standard for annual improvement under
 Section 39.034.
 Sec. 39.305 [39.052]. CAMPUS REPORT CARD. (a) Each school
 year, the agency shall prepare and distribute to each school
 district a report card for each campus. The campus report cards
 must be based on the most current data available disaggregated by
 student groups. Campus performance must be compared to previous
 campus and district performance, current district performance, and
 state established standards[, and comparable campus group
 performance].
 (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)
 [academic excellence indicators adopted under Sections
 39.051(b)(1) through (10)];
 (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.
 (c) The commissioner shall adopt rules requiring
 dissemination of the information required under Subsection (b)(4)
 and appropriate class size and student performance portions of
 campus report cards annually to the parent, guardian, conservator,
 or other person having lawful control of each student at the campus.
 On written request, the school district shall provide a copy of a
 campus report card to any other party.
 Sec. 39.306 [39.053]. PERFORMANCE REPORT. (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 an
 unacceptable campus under Subchapter E [the performance rating for
 the district as provided under Section 39.072(a) and the
 performance rating of each campus in the district as provided under
 Section 39.072(c)];
 (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; [and]
 (6) the findings that result from evaluations
 conducted under the Safe and Drug-Free Schools and Communities Act
 of 1994 (20 U.S.C. Section 7101 et seq.) [and its subsequent
 amendments]; 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.
 (b) Supplemental information to be included in the reports
 shall be determined by the board of trustees. Performance
 information in the annual reports on the indicators described by
 Sections 39.053 and 39.301 [established under Section 39.051] and
 descriptive information required by this section shall be provided
 by the agency.
 (c) The board of trustees shall hold a hearing for public
 discussion of the report. The board of trustees shall give notice
 of the hearing to property owners in the district and parents of and
 other persons standing in parental relation to[, guardians,
 conservators, and other persons having lawful control of] a
 district student. The notification must include notice to a
 newspaper of general circulation in the district and notice to
 electronic media serving the district. After the hearing the
 report shall be widely disseminated within the district in a manner
 to be determined under rules adopted by the commissioner.
 (d) The report must also include a comparison provided by
 the agency of:
 (1) the performance of each campus to its previous
 performance and to state-established standards; and
 (2) the performance of each district to its previous
 performance and to state-established standards[; and
 [(3)     the performance of each campus or district to
 comparable improvement].
 (e) The report may include the following information:
 (1) student information, including total enrollment,
 enrollment by ethnicity, socioeconomic status, and grade groupings
 and retention rates;
 (2) financial information, including revenues and
 expenditures;
 (3) staff information, including number and type of
 staff by sex [gender], ethnicity, years of experience, and highest
 degree held, teacher and administrator salaries, and teacher
 turnover;
 (4) program information, including student enrollment
 by program, teachers by program, and instructional operating
 expenditures by program; and
 (5) the number of students placed in a disciplinary
 alternative education program under Chapter 37.
 (f) The commissioner [State Board of Education] by rule
 shall authorize the combination of this report with other reports
 and financial statements and shall restrict the number and length
 of reports that school districts, school district employees, and
 school campuses are required to prepare.
 (g) The report must include a statement of the amount, if
 any, of the school district's unencumbered surplus fund balance as
 of the last day of the preceding fiscal year and the percentage of
 the preceding year's budget that the surplus represents.
 Sec. 39.307 [39.054]. USES OF PERFORMANCE REPORT. The
 information required to be reported under Section 39.306 [39.053]
 shall be:
 (1) the subject of public hearings or meetings
 required under Sections 11.252, 11.253, and 39.306 [39.053];
 (2) a primary consideration in school district and
 campus planning; and
 (3) a primary consideration of:
 (A) the State Board of Education in the
 evaluation of the performance of the commissioner;
 (B) the commissioner in the evaluation of the
 performance of the directors of the regional education service
 centers;
 (C) the board of trustees of a school district in
 the evaluation of the performance of the superintendent of the
 district; and
 (D) the superintendent in the evaluation of the
 performance of the district's campus principals.
 Sec. 39.308 [39.055]. ANNUAL AUDIT OF DROPOUT RECORDS;
 REPORT. (a) The commissioner shall develop a process for auditing
 school district dropout records electronically. The commissioner
 shall also develop a system and standards for review of the audit or
 use systems already available at the agency. The system must be
 designed to identify districts that are at high risk of having
 inaccurate dropout records and that, as a result, require on-site
 monitoring of dropout records.
 (b) If the electronic audit of a school district's dropout
 records indicates that a district is not at high risk of having
 inaccurate dropout records, the district may not be subject to
 on-site monitoring under this subsection.
 (c) If the risk-based system indicates that a school
 district is at high risk of having inaccurate dropout records, the
 district is entitled to an opportunity to respond to the
 commissioner's determination before on-site monitoring may be
 conducted. The district must respond not later than the 30th day
 after the date the commissioner notifies the district of the
 commissioner's determination. If the district's response does not
 change the commissioner's determination that the district is at
 high risk of having inaccurate dropout records or if the district
 does not respond in a timely manner, the commissioner shall order
 agency staff to conduct on-site monitoring of the district's
 dropout records.
 (d) [(e)] The commissioner shall notify the board of
 trustees of a school district of any objection the commissioner has
 to the district's dropout data, any violation of sound accounting
 practices or of a law or rule revealed by the data, or any
 recommendation by the commissioner concerning the data. If the data
 reflect that a penal law has been violated, the commissioner shall
 notify the county attorney, district attorney, or criminal district
 attorney, as appropriate, and the attorney general.
 (e) The commissioner is entitled to access to all district
 records the commissioner considers necessary or appropriate for the
 review, analysis, or approval of district dropout data.
 SUBCHAPTER K [H]. REPORTS BY TEXAS EDUCATION AGENCY
 Sec. 39.331 [39.181]. GENERAL REQUIREMENTS. (a) Each
 report required by this subchapter must:
 (1) unless otherwise specified, contain summary
 information and analysis only, with an indication that the agency
 will provide the data underlying the report on request;
 (2) specify a person at the agency who may be contacted
 for additional information regarding the report and provide the
 person's telephone number; and
 (3) identify other sources of related information,
 indicating the level of detail and format of information that may be
 obtained, including the availability of any information on the
 Texas Education Network.
 (b) Each component of a report required by this subchapter
 must:
 (1) identify the substantive goal underlying the
 information required to be reported;
 (2) analyze the progress made and longitudinal trends
 in achieving the underlying substantive goal;
 (3) offer recommendations for improved progress in
 achieving the underlying substantive goal; and
 (4) identify the relationship of the information
 required to be reported to state education goals.
 (c) Unless otherwise provided, each report required by this
 subchapter is due not later than December 1 of each even-numbered
 year.
 (d) Subsections (a) and (b) apply to any report required by
 statute that the agency or the State Board of Education must prepare
 and deliver to the governor, lieutenant governor, speaker of the
 house of representatives, or legislature.
 (e) Unless otherwise provided by law, any report required by
 statute that the agency or the State Board of Education must prepare
 and deliver to the governor, lieutenant governor, speaker of the
 house of representatives, or legislature may be combined, at the
 discretion of the commissioner, with a report required by this
 subchapter.
 Sec. 39.332 [39.182]. COMPREHENSIVE ANNUAL REPORT. (a)
 Not later than December 1 of each year, the agency shall prepare and
 deliver to the governor, the lieutenant governor, the speaker of
 the house of representatives, each member of the legislature, the
 Legislative Budget Board, and the clerks of the standing committees
 of the senate and house of representatives with primary
 jurisdiction over the public school system a comprehensive report
 covering the preceding school year and containing the information
 described by Subsection (b).
 (b) [:] (1) The report must contain an evaluation of the
 achievements of the state educational program in relation to the
 statutory goals for the public education system under Section
 4.002.[;]
 (2) The report must contain an evaluation of the
 status of education in the state as reflected by:
 (A) the student achievement [academic
 excellence] indicators described by [adopted under] Section 39.053
 [39.051]; and
 (B)  the reporting indicators described by
 Section 39.301.
 (3) The report must contain a summary compilation of
 overall student performance on academic skills assessment
 instruments required by Section 39.023 with the number and
 percentage of students exempted from the administration of those
 instruments and the basis of the exemptions, aggregated by grade
 level, subject area, campus, and district, with appropriate
 interpretations and analysis, and disaggregated by race,
 ethnicity, gender, and socioeconomic status.[;]
 (4) The report must contain a summary compilation of
 overall performance of students placed in a disciplinary
 alternative education program established under Section 37.008 on
 academic skills assessment instruments required by Section 39.023
 with the number of those students exempted from the administration
 of those instruments and the basis of the exemptions, aggregated by
 district, grade level, and subject area, with appropriate
 interpretations and analysis, and disaggregated by race,
 ethnicity, gender, and socioeconomic status.[;]
 (5) The report must contain a summary compilation of
 overall performance of students at risk of dropping out of school,
 as defined by Section 29.081(d), on academic skills assessment
 instruments required by Section 39.023 with the number of those
 students exempted from the administration of those instruments and
 the basis of the exemptions, aggregated by district, grade level,
 and subject area, with appropriate interpretations and analysis,
 and disaggregated by race, ethnicity, gender, and socioeconomic
 status.[;]
 (6) The report must contain an evaluation of the
 correlation between student grades and student performance on
 academic skills assessment instruments required by Section
 39.023.[;]
 (7) The report must contain a statement of the dropout
 rate of students in grade levels 7 through 12, expressed in the
 aggregate and by grade level, and a statement of the completion
 rates of students for grade levels 9 through 12.[;]
 (8) The report must contain a statement of:
 (A) the completion rate of students who enter
 grade level 9 and graduate not more than four years later;
 (B) the completion rate of students who enter
 grade level 9 and graduate, including students who require more
 than four years to graduate;
 (C) the completion rate of students who enter
 grade level 9 and not more than four years later receive a high
 school equivalency certificate;
 (D) the completion rate of students who enter
 grade level 9 and receive a high school equivalency certificate,
 including students who require more than four years to receive a
 certificate; and
 (E) the number and percentage of all students who
 have not been accounted for under Paragraph (A), (B), (C), or
 (D).[;]
 (9) The report must contain a statement of the
 projected cross-sectional and longitudinal dropout rates for grade
 levels 9 through 12 for the next five years, assuming no state
 action is taken to reduce the dropout rate.[;]
 (10) The report must contain a description of a
 systematic, measurable plan for reducing the projected
 cross-sectional and longitudinal dropout rates to five percent or
 less. [for the 1997-1998 school year;]
 (11) The report must contain a summary of the
 information required by Section 29.083 regarding grade level
 retention of students and information concerning:
 (A) the number and percentage of students
 retained; and
 (B) the performance of retained students on
 assessment instruments required under Section 39.023(a).[;]
 (12) The report must contain information, aggregated
 by district type and disaggregated by race, ethnicity, gender, and
 socioeconomic status, on:
 (A) the number of students placed in a
 disciplinary alternative education program established under
 Section 37.008;
 (B) the average length of a student's placement
 in a disciplinary alternative education program established under
 Section 37.008;
 (C) the academic performance of students on
 assessment instruments required under Section 39.023(a) during the
 year preceding and during the year following placement in a
 disciplinary alternative education program; and
 (D) the dropout rates of students who have been
 placed in a disciplinary alternative education program established
 under Section 37.008.[;]
 (13) The report must contain a list of each school
 district or campus that does not satisfy performance standards,
 with an explanation of the actions taken by the commissioner to
 improve student performance in the district or campus and an
 evaluation of the results of those actions.[;]
 (14) The report must contain an evaluation of the
 status of the curriculum taught in public schools, with
 recommendations for legislative changes necessary to improve or
 modify the curriculum required by Section 28.002.[;]
 (15) The report must contain a description of all
 funds received by and each activity and expenditure of the
 agency.[;]
 (16) The report must contain a summary and analysis of
 the instructional expenditures ratios and instructional employees
 ratios of school districts computed under Section 44.0071.[;]
 (17) The report must contain a summary of the effect of
 deregulation, including exemptions and waivers granted under
 Section 7.056 or 39.232. [39.112;]
 (18) The report must contain a statement of the total
 number and length of reports that school districts and school
 district employees must submit to the agency, identifying which
 reports are required by federal statute or rule, state statute, or
 agency rule, and a summary of the agency's efforts to reduce overall
 reporting requirements.[;]
 (19) The report must contain a list of each school
 district that is not in compliance with state special education
 requirements, including:
 (A) the period for which the district has not
 been in compliance;
 (B) the manner in which the agency considered the
 district's failure to comply in determining the district's
 accreditation status; and
 (C) an explanation of the actions taken by the
 commissioner to ensure compliance and an evaluation of the results
 of those actions.[;]
 (20) The report must contain a comparison of the
 performance of open-enrollment charter schools and school
 districts on the student achievement [academic excellence]
 indicators described by Section 39.053(c), the reporting
 indicators described by Section 39.301(c), [specified in Section
 39.051(b)] and the accountability measures adopted under Section
 39.053(i) [39.051(g)], 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
 [defined] by Section 29.081(d), with the performance of school
 districts.[;]
 (21) The report must contain a summary of the
 information required by Section 38.0141 regarding student health
 and physical activity from each school district.[;]
 (22) The report must contain a summary compilation of
 overall student performance under the assessment system developed
 to evaluate the longitudinal academic progress as required by
 Section 39.027(e), disaggregated by bilingual education or special
 language program instructional model, if any.[; and]
 (23) The report must contain any additional
 information considered important by the commissioner or the State
 Board of Education.
 (c) [(b)] In reporting the information required by
 Subsection (b)(3) or (4) [(a)(3) or (4)], the agency may separately
 aggregate the performance data of students enrolled in a special
 education program under Subchapter A, Chapter 29.
 (d) [(b-1)] In reporting the information required by
 Subsections (b)(3), (5), and (7) [(a)(3), (5), and (7)], the agency
 shall separately aggregate the longitudinal performance data of all
 students identified as students of limited English proficiency, as
 defined by Section 29.052, or former students of limited English
 proficiency, disaggregated by bilingual education or special
 language program instructional model, if any, in which the students
 are or were enrolled.
 (e) [(c)] Each report must contain the most recent data
 available.
 Sec. 39.333 [39.183]. REGIONAL AND DISTRICT LEVEL REPORT.
 The agency shall prepare and deliver to the governor, the
 lieutenant governor, the speaker of the house of representatives,
 each member of the legislature, the Legislative Budget Board, and
 the clerks of the standing committees of the senate and house of
 representatives with primary jurisdiction over the public school
 system 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 [the performance rating under Subchapter
 D of] 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 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
 [39.112] 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.
 Sec. 39.334 [39.184]. TECHNOLOGY REPORT. The agency shall
 prepare and deliver to the governor, the lieutenant governor, the
 speaker of the house of representatives, each member of the
 legislature, the Legislative Budget Board, and the clerks of the
 standing committees of the senate and house of representatives with
 primary jurisdiction over the public school system a technology
 report covering the preceding two school years and containing
 information on the status of the implementation of and revisions to
 the long-range technology plan required by Section 32.001,
 including the equity of the distribution and use of technology in
 public schools.
 Sec. 39.335 [39.185]. INTERIM REPORT. Not later than
 December 1 of each odd-numbered year, the agency shall prepare and
 deliver to the governor, the lieutenant governor, the speaker of
 the house of representatives, each member of the legislature, the
 Legislative Budget Board, and the clerks of the standing committees
 of the senate and house of representatives with primary
 jurisdiction over the public school system an interim report
 containing, for the previous school year, the information required
 by Section 39.333(2) [39.183(2)].
 SUBCHAPTER L [J]. NOTICE OF PERFORMANCE
 Sec. 39.361 [39.251]. 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 [the following information]:
 (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 an unacceptable campus
 under Subchapter E [the most recent performance rating of the
 campus at which the student is enrolled, as determined under
 Section 39.072]; and
 (2) an explanation of the significance of the
 information provided under Subdivision (1) [a definition and
 explanation of each performance rating described by Section
 39.072(a)].
 Sec. 39.362 [39.252]. NOTICE ON DISTRICT WEBSITE. Not
 later than the 10th day after the first day of instruction of each
 school year, a school district that maintains an Internet website
 shall make the following information available to the public on the
 website:
 (1) the information contained in the most recent
 campus report card for each campus in the district[, as determined]
 under Section 39.305 [39.052];
 (2) the information contained in the most recent
 performance report for the district[, as determined] under Section
 39.306 [39.053];
 (3) the most recent accreditation status and
 performance rating of the district[, as determined] under Sections
 39.052 and 39.054 [Section 39.072]; and
 (4) a definition and explanation of each accreditation
 status under [performance rating described by] Section 39.051,
 based on commissioner rule adopted under that section [39.072(a)].
 SUBCHAPTER M [L]. HIGH SCHOOL COMPLETION AND SUCCESS INITIATIVE
 Sec. 39.401 [39.351]. DEFINITION. In this subchapter,
 "council" means the High School Completion and Success Initiative
 Council.
 Sec. 39.402 [39.352]. HIGH SCHOOL COMPLETION AND SUCCESS
 INITIATIVE COUNCIL. (a) The High School Completion and Success
 Initiative Council is established to identify strategic priorities
 for and make recommendations to improve the effectiveness,
 coordination, and alignment of high school completion and college
 and workforce readiness efforts.
 (b) The council is composed of:
 (1) the commissioner of education;
 (2) the commissioner of higher education; and
 (3) seven members appointed by the commissioner of
 education.
 (c) In making appointments required by Subsection (b)(3),
 the commissioner of education shall appoint:
 (1) three members from a list of nominations provided
 by the governor;
 (2) two members from a list of nominations provided by
 the lieutenant governor; and
 (3) two members from a list of nominations provided by
 the speaker of the house of representatives.
 (d) In making nominations under Subsection (c), the
 governor, lieutenant governor, and speaker of the house of
 representatives shall nominate persons who have distinguished
 experience in:
 (1) developing and implementing high school reform
 strategies; and
 (2) promoting college and workforce readiness.
 Sec. 39.403 [39.353]. TERMS. Members of the council
 appointed under Section 39.402(b)(3) [39.352(b)(3)] serve terms of
 two years and may be reappointed for additional terms.
 Sec. 39.404 [39.354]. PRESIDING OFFICER. The commissioner
 of education serves as the presiding officer of the council.
 Sec. 39.405 [39.355]. COMPENSATION AND REIMBURSEMENT. A
 member of the council is not entitled to compensation for service on
 the council but is entitled to reimbursement for actual and
 necessary expenses incurred in performing council duties.
 Sec. 39.406 [39.356]. COUNCIL STAFF AND FUNDING. (a)
 Except as otherwise provided, staff members of the agency, with the
 assistance of the Texas Higher Education Coordinating Board, shall
 provide administrative support for the council.
 (b) Funding for the administrative and operational expenses
 of the council shall be provided by appropriation to the agency for
 that purpose and by gifts, grants, and donations solicited and
 accepted by the agency for that purpose.
 Sec. 39.407 [39.357]. STRATEGIC PLAN. (a) The council
 shall adopt a strategic plan under this subchapter to:
 (1) specify strategies to identify, support, and
 expand programs to improve high school completion rates and college
 and workforce readiness;
 (2) establish specific goals with which to measure the
 success of the strategies identified under Subdivision (1) in
 improving high school completion rates and college and workforce
 readiness;
 (3) identify strategies for alignment and
 coordination of federal and other funding sources that may be
 pursued for high school reform, dropout prevention, and preparation
 of students for postsecondary coursework or employment; and
 (4) identify key objectives for appropriate research
 and program evaluation conducted as provided by this subchapter.
 (b) The commissioner of education and the commissioner of
 higher education shall adopt rules as necessary to administer the
 strategic plan adopted by the council under this section.
 (c) The commissioner of education or the commissioner of
 higher education may not, in a manner inconsistent with the
 strategic plan, spend money, award a grant, or enter into a contract
 in connection with a program relating to high school success and
 completion.
 Sec. 39.408 [39.358]. ELIGIBILITY CRITERIA FOR CERTAIN
 GRANT PROGRAMS. A school district or campus is eligible to
 participate in programs under Sections 21.4541, 29.095, 29.096,
 29.097, and 29.098 if the district or campus exhibited during each
 of the three preceding school years characteristics that strongly
 correlate with high dropout rates.
 Sec. 39.409 [39.359]. PRIVATE FOUNDATION PARTNERSHIPS.
 (a) The commissioner of education or the commissioner of higher
 education, as appropriate, and the council may coordinate with
 private foundations that have made a substantial investment in the
 improvement of high schools in this state to maximize the impact of
 public and private investments.
 (b) A private foundation is not required to obtain the
 approval of the appropriate commissioner or the council under
 Subsection (a) before allocating resources to a school in this
 state.
 Sec. 39.410 [39.360]. GRANT PROGRAM EVALUATION. (a) The
 commissioner of education shall annually set aside not more than
 five percent of the funds appropriated for high school completion
 and success to contract for the evaluation of programs supported by
 grants approved under this subchapter. In awarding a contract
 under this subsection, the commissioner shall consider centers for
 education research established under Section 1.005.
 (b) A person who receives a grant approved under this
 subchapter must consent to an evaluation under this section as a
 condition of receiving the grant.
 (c) The commissioner shall ensure that an evaluation
 conducted under this section includes an assessment of whether
 student achievement has improved. Results of the evaluation shall
 be provided through the online clearinghouse of information
 relating to the best practices of campuses and school districts
 established under Section 7.009.
 Sec. 39.411 [39.361]. COUNCIL RECOMMENDATIONS. (a) Based
 on the strategic plan adopted under this subchapter [section], the
 council shall make recommendations to the commissioner of education
 or the commissioner of higher education, as applicable, for the use
 of federal and state funds appropriated or received for high school
 reform, college readiness, and dropout prevention, including
 grants awarded under Sections 21.4511, 21.4541, 29.095-29.098,
 29.917, 29.919, and 39.235 [39.115].
 (b) The council shall include recommendations under this
 section for:
 (1) key elements of program design;
 (2) criteria for awarding grants and evaluating
 programs;
 (3) program funding priorities; and
 (4) program evaluation as provided by this subchapter.
 (c) The commissioner of education or the commissioner of
 higher education, as applicable, shall consider the council's
 recommendations and based on those recommendations may award grants
 to school districts, open-enrollment charter schools, institutions
 of higher education, regional education service centers, and
 nonprofit organizations to meet the goals of the council's
 strategic plan.
 (d) The commissioner of education or the commissioner of
 higher education, as applicable:
 (1) is not required under this section to allocate
 funds to a program or initiative recommended by the council; and
 (2) may not initiate a program funded under this
 section that does not conform to the recommended use of funds as
 provided under Subsections (a) and (b).
 Sec. 39.412 [39.362]. FUNDING PROVIDED TO SCHOOL
 DISTRICTS. From funds appropriated, the commissioner of education
 may provide funding to school districts to permit a school district
 to obtain technical assistance in preparing a grant proposal for a
 grant program administered under this subchapter.
 Sec. 39.413 [39.363]. FUNDING FOR CERTAIN PROGRAMS. (a)
 From funds appropriated, the Texas Higher Education Coordinating
 Board shall allocate $8.75 million each year to establish
 mathematics, science, and technology teacher preparation academies
 under Section 21.462 and implement and administer the program under
 Section 29.098.
 (b) The Texas Higher Education Coordinating Board shall
 establish mathematics, science, and technology teacher preparation
 academies under Section 21.462 and implement and administer the
 program under Section 29.098 in a manner consistent with the goals
 of this subchapter and the goals in "Closing the Gaps," the state's
 master plan for higher education.
 Sec. 39.414 [39.364]. PRIVATE FUNDING. The commissioner of
 education or the commissioner of higher education, as appropriate,
 may accept gifts, grants, or donations to fund a grant administered
 under this subchapter.
 Sec. 39.415 [39.365]. REPORTS. (a) Not later than
 December 1 of each even-numbered year, the agency shall prepare and
 deliver a report to the legislature that recommends any statutory
 changes the council considers appropriate to promote high school
 completion and college and workforce readiness.
 (b) Not later than March 1 and September 1 of each year, the
 commissioner of education shall prepare and deliver a progress
 report to the presiding officers of the standing committees of each
 house of the legislature with primary jurisdiction over public
 education, the Legislative Budget Board, and the Governor's Office
 of Policy and Planning on:
 (1) the implementation of Sections 7.031, 21.4511,
 21.4541, 21.462, 28.008(d-1), 28.0212(d), 29.095-29.098, 29.911,
 29.917-29.919, and 39.235 [39.115] and this subchapter;
 (2) the programs supported by grants approved under
 this subchapter; and
 (3) the alignment of grants and programs to the
 strategic plan adopted under Section 39.407 [39.357].
 Sec. 39.416 [39.366]. RULES. The commissioner of education
 and the commissioner of higher education shall adopt rules as
 necessary to administer this subchapter and any programs under the
 authority of the commissioner of education or the commissioner of
 higher education and the council under this subchapter.
 SECTION 60. Section 42.002(b), Education Code, is amended
 to read as follows:
 (b) The Foundation School Program consists of:
 (1) two tiers that in combination provide for:
 (A) sufficient financing for all school
 districts to provide a basic program of education that is rated
 [academically] acceptable or higher under Section 39.054 [39.072]
 and meets other applicable legal standards; and
 (B) substantially equal access to funds to
 provide an enriched program; and
 (2) a facilities component as provided by Chapter 46.
 SECTION 61. Section 51.3062, Education Code, is amended by
 adding Subsections (i-1) and (q-1) to read as follows:
 (i-1)  The commissioner of higher education may by rule
 require an institution of higher education to adopt uniform
 standards for the placement of a student under this section.
 (q-1)  A student who has completed a recommended or advanced
 high school program as determined under Section 28.025 and
 demonstrated the performance standard for college readiness as
 provided by Section 39.024 on the Algebra II and English III
 end-of-course assessment instruments is exempt from the
 requirements of this section with respect to those content areas.
 The commissioner of higher education by rule shall establish the
 period for which an exemption under this subsection is valid.
 SECTION 62. Section 51.807, Education Code, as amended by
 Chapters 941 (H.B. 3826) and 1369 (H.B. 3851), Acts of the 80th
 Legislature, Regular Session, 2007, is reenacted to read as
 follows:
 Sec. 51.807. RULEMAKING. (a) The Texas Higher Education
 Coordinating Board may adopt rules relating to the operation of
 admissions programs under this subchapter, including rules
 relating to the identification of eligible students.
 (b) The Texas Higher Education Coordinating Board, after
 consulting with the Texas Education Agency, by rule shall establish
 standards for determining for purposes of this subchapter:
 (1) whether a private high school is accredited by a
 generally recognized accrediting organization; and
 (2) whether a person completed a high school
 curriculum that is equivalent in content and rigor to the
 curriculum requirements established under Section 28.025 for the
 recommended or advanced high school program.
 SECTION 63. Chapter 61, Education Code, is amended by
 adding Subchapter T-1 to read as follows:
 SUBCHAPTER T-1. CAREER AND TECHNICAL EDUCATION
 Sec. 61.861.  DEVELOPMENT OF MATHEMATICS AND SCIENCE COURSES
 FOR HIGH-DEMAND OCCUPATIONS. (a)  The commissioner of higher
 education and the commissioner of education, in consultation with
 the comptroller and the Texas Workforce Commission, may award a
 grant in an amount not to exceed $1 million to an institution of
 higher education to develop advanced mathematics and science
 courses to prepare high school students for employment in a
 high-demand occupation.  The commissioner of higher education, the
 commissioner of education, the comptroller, and the Texas Workforce
 Commission shall jointly determine what is considered a high-demand
 occupation for purposes of this subchapter.
 (b)  An institution of higher education shall work in
 partnership with at least one independent school district and a
 business entity in developing a course for purposes of this
 section.
 (c) A course developed for purposes of this section must:
 (1)  provide content that enables a student to develop
 the relevant and critical skills needed to be prepared for
 employment or additional training in a high-demand occupation;
 (2)  incorporate college and career readiness skills as
 part of the curriculum;
 (3) be offered for dual credit; and
 (4)  satisfy a mathematics or science requirement under
 the recommended or advanced high school program as determined under
 Section 28.025.
 (d)  An institution of higher education shall periodically
 review and revise the curriculum for a course developed for
 purposes of this section to accommodate changes in industry
 standards for the high-demand occupation.
 Sec. 61.862.  GRANT APPLICATION CRITERIA.  The commissioner
 of higher education and the commissioner of education, in
 consultation with the comptroller and the Texas Workforce
 Commission, shall establish application criteria for a grant under
 this subchapter and in making an award shall give priority to
 courses that:
 (1)  will prepare students for high-demand, high-wage,
 and high-skill occupations and further postsecondary study;
 (2)  may be transferred as college credit to multiple
 institutions of higher education; and
 (3)  are developed as part of a sequence of courses that
 includes statewide availability of the instructional materials and
 training for the courses at a nominal cost to public educational
 institutions in this state.
 Sec. 61.863.  USE OF FUNDS.  An institution of higher
 education may use funds awarded under this section to develop, in
 connection with a course described by Section 61.861:
 (1) curriculum;
 (2) assessments;
 (3)  instructional materials, including
 technology-based supplemental materials; or
 (4)  professional development programs for secondary
 grade-level teachers teaching a course described by Section 61.861.
 Sec. 61.864.  REVIEW OF COURSES.  Courses for which a grant
 is awarded under this subchapter shall be reviewed by the
 commissioner of higher education and the commissioner of education,
 in consultation with the comptroller and the Texas Workforce
 Commission, once every four years to determine whether the course:
 (1)  is being used by public educational institutions
 in this state;
 (2)  prepares high school students with the skills
 necessary for employment in the high-demand occupation and further
 postsecondary study; and
 (3)  satisfies a mathematics or science requirement for
 the recommended or advanced high school program as determined under
 Section 28.025.
 Sec. 61.865.  MATCHING CONTRIBUTION REQUIRED.  An
 institution of higher education awarded a grant under this
 subchapter must obtain from one or more business entities in the
 industry for which students taking courses developed under Section
 61.861 are training, in a total amount equal to the amount of the
 state grant:
 (1) gifts, grants, or donations of funds; or
 (2)  contributions of property that may be used in
 providing the courses.
 Sec. 61.866.  LIMITATION ON TOTAL AMOUNT OF GRANTS.  In any
 state fiscal biennium, the total amount of grants awarded under
 this subchapter may not exceed $10 million.
 Sec. 61.867.  FUNDING OF GRANTS.  The commissioner of higher
 education shall administer this section using available
 appropriations and gifts, grants, and donations made for the
 purposes of this subchapter.
 SECTION 64. Subtitle G, Title 3, Education Code, is amended
 by adding Chapter 134 to read as follows:
 CHAPTER 134. JOBS AND EDUCATION FOR TEXANS (JET) GRANT PROGRAM
 Sec. 134.001. DEFINITIONS. In this chapter:
 (1)  "Nonprofit organization" means an organization
 exempt from federal income taxation under Section 501(a), Internal
 Revenue Code of 1986, as an organization described by Section
 501(c)(3) of that code.
 (2)  "Public junior college" and "public technical
 institute" have the meanings assigned by Section 61.003.
 Sec. 134.002.  JOBS AND EDUCATION FOR TEXANS (JET) FUND. (a)
 The comptroller shall establish and administer the Jobs and
 Education for Texans (JET) fund as a dedicated account in the
 general revenue fund.
 (b) The following amounts shall be deposited in the fund:
 (1)  any amounts appropriated by the legislature for
 the fund for purposes of this chapter;
 (2)  interest earned on the investment of money in the
 fund; and
 (3)  gifts, grants, and other donations received for
 the fund.
 Sec. 134.003.  ADVISORY BOARD. (a) An advisory board of
 education and workforce stakeholders is created to assist the
 comptroller in administering this chapter.
 (b)  The advisory board is composed of seven members who
 serve two-year terms and are appointed as follows:
 (1) one member appointed by the governor;
 (2) one member appointed by the lieutenant governor;
 (3)  one member appointed by the speaker of the house of
 representatives;
 (4)  one member appointed by the Texas Higher Education
 Coordinating Board;
 (5)  one member appointed by the Texas Workforce
 Commission;
 (6)  one member of the public appointed by the
 comptroller; and
 (7)  the comptroller, who serves as the presiding
 officer.
 (c)  The advisory board shall meet at least once each quarter
 to review received applications and recommend awarding grants under
 this chapter.
 Sec. 134.004.  JOBS AND EDUCATION FOR TEXANS (JET) GRANT
 PROGRAM. The comptroller shall establish and administer the Jobs
 and Education for Texans (JET) Grant Program to provide grants to
 public junior colleges, public technical institutes, and eligible
 nonprofit organizations that apply to the advisory board in the
 manner prescribed by the advisory board. The comptroller shall
 award the grants on the advice and recommendations of the advisory
 board. Grants may be awarded under this chapter from the Jobs and
 Education for Texans (JET) fund for the following purposes:
 (1)  to develop, support, or expand programs of
 nonprofit organizations that meet the requirements of Section
 134.005 and that prepare low-income students for careers in
 high-demand occupations;
 (2)  to defray the start-up costs associated with the
 development of new career and technical education programs at
 public junior colleges and public technical institutes that meet
 the requirements of Section 134.006; and
 (3)  to provide scholarships for students in career and
 technical education programs who meet the requirements of Section
 134.007.
 Sec. 134.005.  GRANTS TO NONPROFIT ORGANIZATIONS FOR
 INNOVATIVE AND SUCCESSFUL PROGRAMS. (a) The comptroller may award
 a grant to a nonprofit organization eligible under Subsection (b)
 for the development, support, or expansion of programs to prepare
 low-income students for careers in high-demand occupations.
 (b)  To be eligible to receive a grant under this section, a
 nonprofit organization must:
 (1)  provide a program to offer assistance to
 low-income students in preparing for, applying to, and enrolling in
 a public junior college or public technical institute;
 (2)  be governed by a board or other governing
 structure that includes recognized leaders of broad-based
 community organizations and members of the local business
 community;
 (3)  demonstrate to the satisfaction of the advisory
 board that the organization's program has achieved or will achieve
 the following measures of success among program participants, to
 the extent applicable to the type of program the organization
 provides:
 (A)  above average completion of developmental
 education among participating public junior college or public
 technical institute students;
 (B)  above average persistence rates among
 participating public junior college or public technical institute
 students;
 (C)  above average certificate or degree
 completion rates by participating students within a three-year
 period compared to demographically comparable public junior
 college and public technical institute students; and
 (D)  employment of participating students at an
 average full-time starting wage that is equal to or greater than
 the prevailing wage for the occupation entered; and
 (4)  provide matching funds in accordance with rules
 adopted under Section 134.008.
 (c)  The matching funds required under Subsection (b)(4) may
 be obtained from any source available to the nonprofit
 organization, including in-kind contributions, community or
 foundation grants, individual contributions, and local
 governmental agency operating funds.
 (d)  Grants awarded under this section must be awarded in a
 manner that takes a balanced geographical distribution into
 consideration.
 Sec. 134.006.  GRANTS TO EDUCATIONAL INSTITUTIONS FOR CAREER
 AND TECHNICAL EDUCATION PROGRAMS. (a) The comptroller may award a
 grant for the development of new career and technical education
 courses or programs at public junior colleges and public technical
 institutes.
 (b) A grant received under this section may be used only:
 (1)  to support courses or programs that prepare
 students for career employment in occupations that are identified
 by local businesses as being in high demand, including courses
 offered for dual credit;
 (2)  to finance initial costs of career and technical
 education course or program development, including the costs of
 constructing or renovating facilities, purchasing equipment, and
 other expenses associated with the development of a new course; and
 (3)  to finance a career and technical education course
 or program that leads to a license, certificate, or postsecondary
 degree.
 (c)  In awarding a grant under this section, the comptroller
 shall primarily consider the potential economic returns to the
 state from the development of the career and technical education
 course or program. The comptroller may also consider whether the
 course or program:
 (1)  is part of a new, emerging industry or high-demand
 occupation;
 (2)  offers new or expanded dual credit career and
 technical educational opportunities in public high schools; or
 (3)  is provided in cooperation with other public
 junior colleges or public technical institutes across existing
 service areas.
 (d)  To be eligible to receive a grant under this section, a
 public junior college or public technical institute must provide
 matching funds in accordance with rules adopted under Section
 134.008. The matching funds may be obtained from any source
 available to the junior college or technical institute, including
 in-kind contributions, industry consortia, community or foundation
 grants, individual contributions, and local governmental agency
 operating funds.
 Sec. 134.007.  SCHOLARSHIPS. (a) The comptroller may award
 a scholarship to a public junior college or public technical
 institute student.
 (b)  To be eligible to receive a scholarship under this
 section, a student must:
 (1) demonstrate financial need; and
 (2)  be enrolled in a training program for a
 high-demand occupation, as determined by the comptroller on the
 recommendation of the advisory board.
 Sec. 134.008.  RULES. The comptroller shall adopt rules as
 necessary for the administration of this chapter.
 SECTION 65. Section 302.006(c), Labor Code, is amended to
 read as follows:
 (c) To be eligible to receive a scholarship awarded under
 this section, a person must:
 (1) be employed in a child-care facility, as defined
 by Section 42.002, Human Resources Code;
 (2) intend to obtain a credential, certificate, or
 degree specified in Subsection (b);
 (3) agree to work for at least 18 additional months in
 a child-care facility, as defined by Section 42.002, Human
 Resources Code, that accepts federal Child Care Development Fund
 subsidies and that, at the time the person begins to fulfill the
 work requirement imposed by this subdivision, is located:
 (A) within the attendance zone of a public school
 campus considered low-performing under Subchapter E, Chapter 39
 [Section 39.132], Education Code; or
 (B) in an economically disadvantaged community,
 as determined by the commission; and
 (4) satisfy any other requirements adopted by the
 commission.
 SECTION 66. The following sections of the Education Code
 are repealed:
 (1) Sections 39.034(e), (f), and (g); and
 (2) Section 44.011.
 SECTION 67. (a) Section 21.054(b), Education Code, is
 repealed.
 (b) This repeal applies beginning with the 2009-2010 school
 year.
 SECTION 68. (a) Not later than December 1, 2010, the Texas
 Education Agency shall prepare and deliver to the governor, the
 lieutenant governor, the speaker of the house of representatives,
 each member of the legislature, the clerks of the standing
 committees of the senate and the house of representatives with
 primary jurisdiction over public education, and the Legislative
 Budget Board a transition plan containing the information described
 by Subsections (b) and (c) of this section.
 (b) The transition plan referred to in Subsection (a) of
 this section must contain a detailed description of the process the
 commissioner of education will use to develop and implement this
 Act, including:
 (1) the timeline;
 (2) the means by which public school educators who are
 representative of this state and other stakeholders, including
 parents of public primary and secondary school students, and
 business and community leaders, will be included in the process to
 develop and implement this Act, in accordance with Section
 7.055(b)(11), Education Code;
 (3) the resources required to implement this Act,
 including resources that may be required by districts and campuses;
 (4) the scope and sequence of tasks that must be
 accomplished to implement this Act; and
 (5) the use of the standard rulemaking process to
 adopt any procedures necessary to implement this Act.
 (c) Except as provided by this subsection, the transition
 plan referred to in Subsection (a) of this section must provide for
 the implementation during the 2011-2012 school year of changes made
 by this Act to the accreditation and academic accountability
 system. The assignment of accreditation statuses and any other
 academic accountability designations under this Act must be
 implemented beginning with the 2012-2013 school year.
 (d) In conjunction with the transition plan prepared and
 delivered under this section, the commissioner of education shall
 provide for an equivalence of a performance rating, accreditation
 status, distinction designation, or performance indicator, as
 applicable, for each statutory performance rating or performance
 indicator that is superseded by this Act.
 SECTION 69. To the extent of any conflict, the reenactment
 by this Act of Section 51.807, Education Code, prevails over
 another Act of the 81st Legislature, Regular Session, 2009,
 relating to nonsubstantive additions to and corrections in enacted
 codes.
 SECTION 70. Section 11.203(d), Education Code, as amended
 by this Act, applies only to a principal employed at a school that
 is rated academically unacceptable during the 2008-2009 school
 year.
 SECTION 71. (a) Except as provided by this section, this
 Act applies beginning with the 2009-2010 school year.
 (a-1) Section 28.002(c-1), Education Code, as added by this
 Act, applies beginning with the 2010-2011 school year.
 (b) Sections 39.023(e), Education Code, as amended by this
 Act, and 39.053(g), Education Code, as added by this Act, apply
 immediately.
 (c) Except as provided by Subsection (b) of this section,
 Subchapter C, Chapter 39, Education Code, as amended by this Act,
 applies beginning with the 2011-2012 school year.
 (d) Except as provided by Subsection (e) of this section,
 Subchapter E, Chapter 39, Education Code, as amended by this Act,
 applies as provided by the transition plan adopted by the
 commissioner of education under Section 39.116, Education Code, as
 added by this Act.
 (e) Notwithstanding any other provision of this Act, the
 commissioner of education may immediately apply any exceptions to
 interventions and sanctions under Subchapter E, Chapter 39,
 Education Code, as amended by this Act, to interventions and
 sanctions under Subchapter G, Chapter 39, Education Code, as that
 law existed prior to amendment by this Act.
 SECTION 72. 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, 2009.
 ______________________________ ______________________________
 President of the Senate Speaker of the House
 I certify that H.B. No. 3 was passed by the House on April 29,
 2009, by the following vote: Yeas 146, Nays 0, 1 present, not
 voting; that the House refused to concur in Senate amendments to
 H.B. No. 3 on May 18, 2009, and requested the appointment of a
 conference committee to consider the differences between the two
 houses; that the House adopted the conference committee report on
 H.B. No. 3 on May 31, 2009, by the following vote: Yeas 143, Nays
 0, 2 present, not voting; and that the House adopted H.C.R. No. 283
 authorizing certain corrections in H.B. No. 3 on June 1, 2009, by
 the following vote: Yeas 146, Nays 0, 1 present, not voting.
 ______________________________
 Chief Clerk of the House
 I certify that H.B. No. 3 was passed by the Senate, with
 amendments, on May 13, 2009, by the following vote: Yeas 31, Nays
 0; at the request of the House, the Senate appointed a conference
 committee to consider the differences between the two houses; that
 the Senate adopted the conference committee report on H.B. No. 3 on
 May 31, 2009, by the following vote: Yeas 31, Nays 0; and that the
 Senate adopted H.C.R. No. 283 authorizing certain corrections in
 H.B. No. 3 on June 1, 2009, by the following vote: Yeas 31, Nays 0.
 ______________________________
 Secretary of the Senate
 APPROVED: __________________
 Date
 __________________
 Governor