Texas 2009 81st Regular

Texas Senate Bill SB3 Introduced / Bill

Filed 02/01/2025

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                    81R12580 PAM/EAH-D
 By: Shapiro S.B. No. 3


 A BILL TO BE ENTITLED
 AN ACT
 relating to public school accountability, curriculum, and
 promotion requirements.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 SECTION 1. 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) curriculum 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
 39.101 [39.131] or 39.102 [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 2. Section 7.062(e), Education Code, is amended to
 read as follows:
 (e) The rules must:
 (1) limit the amount of assistance provided through a
 grant to not more than:
 (A) for a construction project, $200 per square
 foot of the science laboratory to be constructed; or
 (B) for a renovation project, $100 per square
 foot of the science laboratory to be renovated;
 (2) require a school district to demonstrate, as a
 condition of eligibility for a grant, that the existing district
 science laboratories are insufficient in number to comply with the
 curriculum requirements imposed for the Texas Diploma
 [recommended] and advanced high school programs under Section
 28.025(b-1)(1); and
 (3) provide for ranking school districts that apply
 for grants on the basis of wealth per student and giving priority in
 the award of grants to districts with low wealth per student.
 SECTION 3. 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 4. Section 28.002, Education Code, is amended by
 adding Subsections (c-1) and (c-2) to read as follows:
 (c-1)  The State Board of Education shall adopt rules to
 allow courses offered in the foundation curriculum or the
 enrichment curriculum to simultaneously satisfy, to the extent
 practicable, more than one required credit for the standard, Texas
 Diploma, or advanced high school program in which the student is
 participating.
 (c-2)  The State Board of Education shall adopt rules to
 authorize each school district to implement a program under which
 students in middle or junior high school may earn credits toward
 high school graduation in middle or junior high school for any
 course determined by board rule to qualify as a high school
 equivalent course.
 SECTION 5. Section 28.014(b), Education Code, is amended to
 read as follows:
 (b) A student who successfully completes a course developed
 under this section may use the credit earned in the course toward
 satisfying the applicable mathematics or science curriculum
 requirement for the Texas Diploma [recommended] or advanced high
 school program under Section 28.025.
 SECTION 6. The heading to Section 28.0211, Education Code,
 is amended to read as follows:
 Sec. 28.0211. STUDENT ADVANCEMENT DETERMINATION;
 [SATISFACTORY] PERFORMANCE ON ASSESSMENT INSTRUMENTS [REQUIRED];
 ACCELERATED INSTRUCTION.
 SECTION 7. Section 28.0211, Education Code, is amended by
 amending Subsections (a), (b), (c), (d), (e), (f), (g), and (i) and
 adding Subsections (c-1), (d-1), (d-2), and (d-3) to read as
 follows:
 (a) Not later than the first day of the school year, a school
 district shall determine the requirements for student advancement
 from one grade level to the next.  In determining whether a student
 may be promoted to the next grade level, the district shall
 consider:
 (1)  the student's score on an assessment instrument
 administered under Section 39.023(a), (b), or (l);
 (2) the recommendation of the student's teacher;
 (3) the student's grade in each subject or course; and
 (4)  any other necessary information, as determined by
 the district. [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
 [(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.]
 (b) A school district shall provide to a student who
 initially fails to perform satisfactorily on the third grade
 reading assessment instrument, the fifth grade mathematics and
 reading assessment instruments, or the eighth grade mathematics and
 reading assessment instruments under Section 39.023 an [assessment
 instrument specified under Subsection (a) at least two] additional
 opportunity [opportunities] to take the assessment instrument. [A
 school district may administer an alternate assessment instrument
 to a student who has failed an assessment instrument specified
 under Subsection (a) on the previous two opportunities.
 Notwithstanding any other provision of this section, a student may
 be promoted if the student performs at grade level on an alternate
 assessment instrument under this subsection that is appropriate for
 the student's grade level and approved by the commissioner.]
 (c) If [Each time] a student fails to perform satisfactorily
 on a mathematics or reading [an] assessment instrument administered
 [specified] under Section 39.023(a), (b), or (l) [Subsection (a)],
 the school district [in which the student attends school] shall
 establish [provide to the student accelerated instruction in the
 applicable subject area, including reading instruction for a
 student who fails to perform satisfactorily on a reading assessment
 instrument. After a student fails to perform satisfactorily on an
 assessment instrument a second time,] a grade placement committee
 [shall be established] to prescribe the accelerated instruction the
 district shall provide to the student [before the student is
 administered the assessment instrument the third time]. The grade
 placement committee shall be composed of the principal or the
 principal's designee, the student's parent or guardian, and the
 teacher of the subject of an assessment instrument on which the
 student failed to perform satisfactorily. The district shall
 notify the parent or guardian of the time and place for convening
 the grade placement committee and the purpose of the committee. The
 accelerated instruction program provided under this subsection
 must be systematic and may not be based solely on assessment
 instrument practice skills and:
 (1)  for a student in a third, fifth, or eighth grade
 program:
 (A)  must provide for instruction in the
 applicable subject area;
 (B)  must be approved by the student's parent or
 guardian and the district; and
 (C) [An accelerated instruction group
 administered by a school district under this section] may not have a
 ratio of more than 10 students for each teacher in an accelerated
 instruction group; or
 (2)  for a student in a program other than a third,
 fifth, or eighth grade program, be made available to the student's
 parent or guardian and the student's teacher in the next grade
 level.
 (c-1)  A school district shall implement an accelerated
 instruction program under Subsection (c) not later than the 30th
 day after the first day of school of the next school year.
 Accelerated instruction may occur outside of regular school hours,
 including during summer school.
 (d) In addition to providing accelerated instruction to a
 student under Subsection (c), the district shall notify the
 student's parent or guardian of:
 (1) the student's failure to perform satisfactorily on
 the assessment instrument;
 (2) the accelerated instruction program to which the
 student is assigned; [and]
 (3) the possibility that the student might be retained
 at the same grade level for the next school year;
 (4) the information collected under Subsection (a);
 (5)  the areas requiring improvement to perform
 satisfactorily on a mathematics or reading assessment instrument
 specified under Section 39.023(a), (b), or (l); and
 (6)  any other applicable information as determined by
 the district.
 (d-1)  A school district shall make information provided to a
 parent or guardian under Subsections (d)(4), (5), and (6) available
 to the student's current teacher and the student's teacher in the
 next grade level.
 (d-2)  After considering the information specified under
 Subsection (a), the grade placement committee shall make a
 determination that the student who failed a mathematics or reading
 assessment instrument administered under Section 39.023(a), (b),
 or (l) be:
 (1)  retained at the same grade level for the next
 school year; or
 (2)  placed in the next grade level with accelerated
 instruction as provided under Subsection (c).
 (d-3)  A student who fails to participate in an accelerated
 instruction program developed under Subsection (c)(1) may not be
 promoted to the next grade level program to which the student would
 otherwise be assigned if the student does not perform
 satisfactorily on the applicable assessment instrument specified
 under Subsection (b).
 (e) A [student who, after at least three attempts, fails to
 perform satisfactorily on an assessment instrument specified under
 Subsection (a) shall be retained at the same grade level for the
 next school year in accordance with Subsection (a). The] student's
 parent or guardian may [appeal the student's retention by
 submitting a] request that [to] the grade placement committee
 reconsider the committee's decision under Subsection (d-2) to
 retain the student [established under Subsection (c)]. The school
 district shall give the parent or guardian written notice of the
 opportunity to request reconsideration [appeal. The grade
 placement committee may decide in favor of a student's promotion
 only if the committee concludes, using standards adopted by the
 board of trustees, that if promoted and given accelerated
 instruction, the student is likely to perform at grade level]. A
 student may not be promoted on the basis of the grade placement
 committee's decision under this subsection unless that decision is
 unanimous. The commissioner by rule shall establish a time line for
 making the placement determination. This subsection does not
 create a property interest in promotion. The decision of the grade
 placement committee under this subsection is final and may not be
 appealed.
 (f) An accelerated instruction program under Subsection (c)
 [A school district shall provide to a student who, after three
 attempts, has failed to perform satisfactorily on an assessment
 instrument specified under Subsection (a) accelerated instruction
 during the next school year as prescribed by an educational plan
 developed for the student by the student's grade placement
 committee established under Subsection (c). The district shall
 provide that accelerated instruction regardless of whether the
 student has been promoted or retained. The educational plan] must
 be designed to enable the student to perform at the appropriate
 grade level by the conclusion of the school year. During the school
 year, the student shall be monitored to ensure that the student is
 progressing in accordance with the program [plan]. The district
 shall administer to the student the assessment instrument for the
 grade level in which the student is placed at the time the district
 regularly administers the assessment instruments for that school
 year.
 (g) This section does not preclude the retention at a grade
 level, in accordance with state law or school district policy, of a
 student who performs satisfactorily on an assessment instrument
 administered [specified] under Section 39.023 [Subsection (a)].
 (i) The admission, review, and dismissal committee of a
 student who participates in a district's special education program
 under Subchapter B, Chapter 29, and who does not perform
 satisfactorily on a mathematics or reading [an] assessment
 instrument [specified under Subsection (a) and] administered under
 Section 39.023(a) or (b) shall determine:
 (1) the manner in which the student will participate
 in an accelerated instruction program under this section; and
 (2) whether the student will be promoted or retained
 under this section.
 SECTION 8. Section 28.025, Education Code, is amended by
 amending Subsections (a), (b), (b-1), (e), and (g) and adding
 Subsections (b-3) and (e-1) to read as follows:
 (a) The State Board of Education by rule shall determine
 curriculum requirements for the standard, Texas Diploma [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 standard, Texas Diploma, or advanced
 high school program. Except as provided by Subsection (b-1)(1)(B),
 the State Board of Education may not designate a specific course or
 a specific number of credits required for a subject in the
 enrichment curriculum. This subsection does not prohibit the State
 Board of Education from designating the total number of credits
 required under the enrichment curriculum for a student
 participating in the standard, Texas Diploma, or advanced high
 school 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 Texas Diploma [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 that the student should be permitted to
 take courses under the standard [minimum] high school program.
 (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 Texas Diploma [recommended] and
 advanced high school programs under Subsection (a) include a
 requirement that students successfully complete:
 (A) four courses in each subject of the
 foundation curriculum under Section 28.002(a)(1);
 (B)  two courses in a language other than English
 under Section 28.002(a)(2)(A); and
 (C) eight elective courses; [and]
 (2) one or more courses offered in the required
 curriculum for the Texas Diploma [recommended] and advanced high
 school programs include a research writing component; and
 (3)  the curriculum requirements for the standard high
 school program under Subsection (a) include a requirement that
 students successfully complete:
 (A) four courses in English language arts;
 (B) three courses in mathematics;
 (C) two courses in science;
 (D) three courses in social studies;
 (E)  one additional course in either science or
 social studies; and
 (F) nine elective courses.
 (b-3)  Notwithstanding Section 5.09, Chapter 5 (H.B. 1),
 79th Legislature, 3rd Called Session, 2006, the curriculum
 requirements for the Texas Diploma and advanced high school
 programs under Section 28.025(b-1) apply to students entering the
 ninth grade beginning with the 2011-2012 school year. This
 subsection expires September 1, 2015.
 (e) Each school district shall report the academic
 achievement record of students who have completed a standard, Texas
 Diploma [minimum, recommended], or advanced high school program on
 transcript forms adopted by the State Board of Education. The
 transcript forms adopted by the board must be designed to clearly
 differentiate between each of the high school programs and identify
 whether a student received a diploma or a certificate of coursework
 completion.
 (e-1)  A school district shall provide an endorsement of
 college readiness on the transcript of a student who has completed a
 Texas Diploma or advanced high school program and has 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.  A district shall provide an endorsement of
 postsecondary readiness on the transcript of a student who has
 completed a Texas Diploma or advanced high school program and has
 demonstrated the alternate performance standard as provided under
 Section 39.0243.  The State Board of Education shall adopt rules as
 necessary to administer this subsection.
 (g) If a student, other than a student permitted to take
 courses under the standard [minimum] high school program as
 provided by Subsection (b), is unable to complete the Texas Diploma
 [recommended] or advanced high school program solely because
 necessary courses were unavailable to the student at the
 appropriate times in the student's high school career as a result of
 course scheduling, lack of enrollment capacity, or another cause
 not within the student's control, the school district shall
 indicate that fact on the student's transcript form described by
 Subsection (e).
 SECTION 9. 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 28.0211.
 SECTION 10. Section 29.096(e), Education Code, is amended
 to read as follows:
 (e) The commissioner shall establish minimum standards for
 a local collaborative agreement, including a requirement that the
 agreement must be signed by an authorized school district or
 open-enrollment charter school officer and an authorized
 representative of each of the other participating entities that is
 a partner in the collaboration. The program must:
 (1) limit participation in the program to students
 authorized to participate by a parent or other person standing in
 parental relationship;
 (2) have as a primary goal graduation from high school
 under at least the Texas Diploma [recommended] high school program;
 (3) provide for local businesses or other employers to
 offer paid employment or internship opportunities and advanced
 career and vocational training;
 (4) include an outreach component and a lead
 educational staff member to identify and involve eligible students
 and public and private entities in participating in the program;
 (5) serve a population of students of which at least 50
 percent are identified as students at risk of dropping out of
 school, as described by Section 29.081(d);
 (6) allocate not more than 15 percent of grant funds
 and matching funds, as determined by the commissioner, to
 administrative expenses;
 (7) include matching funds from any of the
 participating entities; and
 (8) include any other requirements as determined by
 the council.
 SECTION 11. 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 Texas Diploma [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 12. 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, access to general student assessment data,
 and secure access to individual student assessment data. 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 13. Section 32.258, Education Code, is amended to
 read as follows:
 Sec. 32.258. STUDENT ASSESSMENT DATA. (a) 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; and
 (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.
 (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 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 14. Section 33.007(b), Education Code, is amended
 to read as follows:
 (b) During the first school year a student is enrolled in a
 high school or at the high school level in an open-enrollment
 charter school, and again during a student's senior year, a
 counselor shall provide information about higher education to the
 student and the student's parent or guardian. The information must
 include information regarding:
 (1) the importance of higher education;
 (2) the advantages of completing the Texas Diploma
 [recommended] or advanced high school program adopted under Section
 28.025(a);
 (3) the disadvantages of taking courses to prepare for
 a high school equivalency examination relative to the benefits of
 taking courses leading to a high school diploma;
 (4) financial aid eligibility;
 (5) instruction on how to apply for federal financial
 aid;
 (6) the center for financial aid information
 established under Section 61.0776;
 (7) the automatic admission of certain students to
 general academic teaching institutions as provided by Section
 51.803;
 (8) the eligibility and academic performance
 requirements for the TEXAS Grant as provided by Subchapter M,
 Chapter 56; and
 (9) the availability of programs in the district under
 which a student may earn college credit, including advanced
 placement programs, dual credit programs, joint high school and
 college credit programs, and international baccalaureate programs.
 SECTION 15. Section 39.023, Education Code, is amended by
 adding Subsection (a-1) and amending Subsections (c-4), (e), and
 (l) 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 college readiness performance,
 as defined by Section 39.024(a); and
 (2)  an appropriate range of performances to serve as a
 valid indication of growth in student achievement.
 (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.
 (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)(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.
 SECTION 16. 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 17. Subchapter B, Chapter 39, Education Code, is
 amended by amending Section 39.024 and adding Sections 39.0241,
 39.0242, and 39.0243 to read as follows:
 Sec. 39.024. MEASURES OF READINESS. (a) In this section:
 (1)  "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 at:
 (A)  a postsecondary educational institution that
 primarily offers baccalaureate degrees and primarily serves a
 limited geographic region; or
 (B)  a postsecondary educational institution that
 primarily offers associate's degrees or certificates or
 credentials other than baccalaureate or advanced degrees.
 (2)  "Skilled workforce and technical readiness" means
 the level of preparation a student must attain in Algebra I and
 English III courses to enroll and succeed in a workforce training,
 certification, or other credential program at a postsecondary
 educational institution that primarily offers associate's degrees
 or certificates or credentials other than baccalaureate or advanced
 degrees.
 (b)  The agency shall ensure that the 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:
 (1)  skilled workforce and technical readiness for
 Algebra I and English III end-of-course assessment instruments; and
 (2)  college readiness for Algebra II and English III
 end-of-course assessment instruments.
 (c)  Before the beginning of the 2011-2012 school year, the
 agency shall gather data and conduct research studies to
 substantiate:
 (1)  the correlation between a certain level of
 performance by students on the Algebra I and English III
 end-of-course assessment instruments and skilled workforce and
 technical readiness; and
 (2)  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 skilled workforce
 and technical readiness or college readiness.
 (e)  Based on the results of the studies conducted under
 Subsection (c), the commissioner of education, in conjunction with
 the commissioner of higher education, shall establish student
 performance standards for:
 (1)  the Algebra I and English III end-of-course
 assessment instruments indicating that students have attained
 skilled workforce and technical readiness; and
 (2)  the Algebra II and English III end-of-course
 assessment instruments indicating that students have attained
 college readiness.
 (f)  To the extent practicable, the agency shall conduct
 research studies similar to the studies conducted under Subsection
 (c)(2) for the appropriate science and social studies end-of-course
 assessment instruments.
 (f-1)  Not later than December 1, 2010, the agency 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 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)  if feasible, recommendations for implementing
 each standard.
 (f-2)  Subsection (f-1) and this subsection expire January
 1, 2011.
 (g)  The agency shall continue to gather data to perform
 studies as provided under Subsections (c) and (f) at least once
 every two years.
 (h)  The agency 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 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 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 determines that the
 college readiness performance standards established under this
 section are not sufficiently rigorous, the agency shall recommend
 changes to the college readiness performance standards.
 Sec. 39.0241. SATISFACTORY PERFORMANCE. (a) Except as
 otherwise provided by Subsection (b) [this subsection], the State
 Board of Education shall determine the level of performance
 considered to be satisfactory on the assessment instruments.
 (a-1)  Beginning with the 2011-2012 school year,
 satisfactory performance on English language arts and mathematics
 assessment instruments for purposes of this chapter means the
 performance across grade levels necessary to indicate college
 readiness, as defined by Section 39.024(a), except as:
 (1) modified by Section 39.0242(d); or
 (2)  provided by Subsection (a-2)(2) or Section
 39.0243.
 (a-2) The State Board of Education shall establish:
 (1)  for the Texas Diploma and advanced high school
 programs, the performance standard for the Algebra II and English
 III end-of-course assessment instruments, as provided under
 Section 39.024(b)(2);
 (2)  for the standard high school program, the
 performance standard for the Algebra I and English III
 end-of-course assessment instruments, as provided under Section
 39.024(b)(1);
 (3)  except as provided by Subdivision (2), the
 performance standard 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;
 (4)  the performance standard 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;
 (5)  the performance standard 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;
 (6)  the performance standard for the grade seven
 assessment instruments, as determined based on studies under
 Section 39.0242 that correlate student performance on the grade
 seven assessment instruments with student performance on the grade
 eight assessment instruments in the same content area;
 (7)  the performance standard for the grade six
 assessment instruments, as determined based on studies under
 Section 39.0242 that correlate student performance on the grade six
 assessment instruments with student performance on the grade seven
 assessment instruments in the same content area;
 (8)  the performance standard for the grade five
 assessment instruments, as determined based on studies under
 Section 39.0242 that correlate student performance on the grade
 five assessment instruments with student performance on the grade
 six assessment instruments in the same content area;
 (9)  the performance standard for the grade four
 assessment instruments, as determined based on studies under
 Section 39.0242 that correlate student performance on the grade
 four assessment instruments with student performance on the grade
 five assessment instruments in the same content area; and
 (10)  the performance standard for the grade three
 assessment instruments, as determined based on studies under
 Section 39.0242 that correlate student performance on the grade
 three assessment instruments with student performance on the grade
 four assessment instruments in the same content area.
 (b) 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 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
 distribute the study guides to parents of students who do not
 perform satisfactorily 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.  SATISFACTORY PERFORMANCE: RESEARCH STUDIES
 AND IMPLEMENTATION OF STANDARD. (a) During the 2010-2011 school
 year, 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 appropriate students
 throughout the state of an end-of-course assessment instrument
 field test.
 (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 on the grade three, four, five, six, or seven
 assessment instruments with satisfactory performance on the
 assessment instruments in the same content area for the next grade
 level;
 (2)  the correlation between satisfactory student
 performance on the grade eight assessment instruments with
 satisfactory performance on the Algebra I and English I
 end-of-course assessment instruments in the same content area;
 (3)  the correlation between satisfactory student
 performance on the English I end-of-course assessment instrument
 with satisfactory performance on the English II end-of-course
 assessment instrument;
 (4)  for the standard high school program, the
 correlation between satisfactory student performance on the
 English II end-of-course assessment instrument with satisfactory
 performance as determined under Section 39.024 on the English III
 end-of-course assessment instrument; and
 (5)  for the Texas Diploma and advanced high school
 programs, the correlation between satisfactory student performance
 on the Algebra I and English II end-of-course assessment
 instruments with satisfactory performance as determined under
 Section 39.024 on the Algebra II and English III end-of-course
 assessment instruments.
 (c)  Studies under this section must include an evaluation of
 any need for remediation courses to facilitate skilled workforce
 and technical readiness or college readiness.
 (d)  Based on the results of the studies conducted under this
 section, the State Board of Education shall establish a level of
 satisfactory performance that is more rigorous than the standard of
 satisfactory performance established before the 2011-2012 school
 year, but less rigorous than the level of satisfactory performance
 identified under the studies conducted under this section as
 indicating that students have attained college readiness. The
 State Board of Education shall incrementally increase the level of
 satisfactory performance during the 2012-2013 through 2016-2017
 school years to the level identified under the studies conducted
 under this section as indicating that students have attained
 college readiness.
 (e)  Once the level of satisfactory performance has been
 established at the level indicating college readiness, the agency
 shall continue to gather data and perform studies as provided under
 this section at least once every two years. If the data does not
 support the correlation between student performance standards and
 college readiness, the State Board of Education shall revise the
 standard of performance considered to be satisfactory.
 Sec. 39.0243.  ALTERNATE PERFORMANCE STANDARD:
 POSTSECONDARY READINESS. (a) This section applies only to a
 student participating in a Texas Diploma or advanced high school
 program who is administered the Algebra II and English III
 end-of-course assessment instruments.
 (b)  Regardless of whether the student demonstrates the
 performance standard for college readiness as provided by Section
 39.024, the student demonstrates postsecondary readiness under
 this section if the student earns in a curriculum course in which
 the student is enrolled a certificate required for employment in a
 high-demand, high-wage, high-skill occupation, as determined under
 this section.
 (c)  The Texas Workforce Commission shall develop, in
 consultation with the Texas Workforce Investment Council, a list of
 high-demand, high-wage, high-skill occupations in this state that
 have industry certifications. The Texas Workforce Commission shall
 provide the research and technical support for developing the list
 under this subsection.
 (d)  The Texas Workforce Investment Council shall consider
 the list developed under Subsection (c) and approve a list for
 submission to the commissioner. On approval of the list, the Texas
 Workforce Investment Council shall deliver the list to the
 commissioner.
 (e)  The commissioner of education, after consultation with
 the commissioner of higher education, shall consider the list
 delivered under Subsection (d) and approve a final list of
 high-demand, high-wage, high-skill occupations in this state that
 have industry certifications.
 (f)  The list of high-demand, high-wage, high-skill
 occupations in this state that have industry certifications shall
 be reviewed and approved under the process provided by Subsections
 (c) through (e) every four years.
 (g)  Notwithstanding any other provision of this section, a
 student's score on the Algebra II or English III end-of-course
 assessment instrument constitutes 15 percent of the student's grade
 in the applicable course.
 SECTION 18. 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) and (c-1) to read as follows:
 (a) The commissioner shall adopt rules requiring a student
 participating in the Texas Diploma [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 standard [minimum] high school program to be
 administered an end-of-course assessment instrument listed in
 Section 39.023(c) only for Algebra I and English III and any other
 [a] course in which the student is enrolled and for which an
 end-of-course assessment instrument is administered. Except as
 otherwise provided by this section, a [A] student is required to
 perform satisfactorily on two of the three end-of-course assessment
 instruments [achieve,] in each subject in which the student is
 required to take end-of-course assessment instruments [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 70, with each end-of-course assessment
 instrument scored on a scale of 100.     A student must achieve a score
 of at least 60 on an end-of-course assessment instrument for the
 score to count towards the student's cumulative score]. Except as
 provided under Subsection (a-2), a student participating in the
 standard high school program must perform satisfactorily on the
 Algebra I and English III end-of-course assessment instruments and
 a student participating in the Texas Diploma or advanced high
 school program must perform satisfactorily on the Algebra II and
 English III end-of-course assessment instruments [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 student's score on an end-of-course assessment
 instrument constitutes 15 percent of the student's grade in the
 course for which the assessment instrument is administered.
 (a-2) The commissioner by rule shall determine a method by
 which a student's satisfactory performance on an advanced placement
 test, international baccalaureate examination, 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].
 (b) Each time an end-of-course assessment instrument is
 administered, a student who failed to perform satisfactorily
 [achieve a score of at least 60] on the assessment instrument shall
 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 [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) The agency, in consultation with the Texas Higher
 Education Coordinating Board, shall develop senior-level English
 language arts and mathematics accelerated instruction courses for
 purposes of this section. If [a school district determines that] a
 student does not demonstrate the performance standard for college
 readiness as provided by Section 39.024 on the Algebra II or English
 III end-of-course assessment instrument [, 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 offer [require] the
 student the opportunity to enroll in a [corresponding content-area
 college preparatory] course described by this subsection [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 appropriate
 end-of-course assessment instrument [for the course, with the
 end-of-course assessment instrument scored on a scale 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; and
 (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 19. Section 39.027(e), Education Code, is amended
 to read as follows:
 (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)(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)(3) or (4) applies shall be included in the
 [academic excellence] indicator systems [system] under Sections
 39.053 and 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 20. 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 21. 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 22. Subchapters C and D, Chapter 39, Education
 Code, as they existed on January 1, 2009, are repealed.
 SECTION 23. Chapter 39, Education Code, is amended by
 adding Subchapter C to read as follows:
 SUBCHAPTER C.  ACCREDITATION
 Sec. 39.051.  ACCREDITATION STATUS.  Accreditation of a
 school district or campus is determined in accordance with this
 subchapter.  The commissioner by rule shall determine in accordance
 with this subchapter the criteria for the following accreditation
 statuses:
 (1) accredited;
 (2) accredited-warned; and
 (3) accredited-probation.
 Sec. 39.052.  DETERMINATION OF ACCREDITATION STATUS. (a)
 Following the end of each school year, the commissioner shall
 determine the accreditation status of each school district and
 campus.
 (b)  In determining the accreditation status of a district,
 the commissioner:
 (1) shall evaluate and consider:
 (A)  performance on student achievement
 indicators described by Section 39.053(c);
 (B)  performance under the financial
 accountability rating system developed under Subchapter D; and
 (C)  the district's current special education
 compliance status with the agency; 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)  In determining the accreditation status of a campus, the
 commissioner:
 (1)  shall evaluate and consider performance on student
 achievement indicators described by Section 39.053(c); and
 (2)  may evaluate and consider other factors the
 commissioner considers appropriate.
 (d)  Based on a school district's performance under
 Subsection (b) or a campus's performance under Subsection (c), the
 commissioner shall:
 (1)  assign each district and campus an accreditation
 status; or
 (2)  revoke the accreditation of the district or campus
 and order closure of the district or campus under this subchapter.
 (e)  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.
 (f)  The commissioner shall notify a school district or
 campus that receives an accreditation status of accredited-warned
 or accredited-probation that the performance of the district or
 campus is below a standard required under this subchapter.  The
 commissioner shall require the district to notify the parents of
 students enrolled in the district and property owners in the
 district of the accreditation status of the district or campus and
 the implications of that accreditation status.
 (g)  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.
 (h)  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 on a campus. The commissioner
 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, and socioeconomic status.
 (c)  Indicators of student achievement adopted under this
 section must include:
 (1)  the results of assessment instruments required
 under Sections 39.023(a), (b), (c), and (l), aggregated by grade
 level and subject area, including:
 (A)  the percentage of students who performed
 satisfactorily, as determined under the college readiness
 performance standards under Section 39.0241 or as determined under
 Section 39.0243, on the assessment instruments, aggregated by grade
 level and subject area; and
 (B)  for students who did not perform
 satisfactorily as described by Paragraph (A), the percentage of
 students who met the standard for annual improvement, as determined
 by the agency under Section 39.034, on assessment instruments,
 aggregated by grade level and 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)  Performance on the student achievement indicators
 described by Subsection (c) 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)  Performance on the student achievement indicator
 described by Subsection (c)(1) shall be compared to state
 standards, required improvement, and comparable improvement. The
 state standard shall be established by the commissioner. Required
 improvement is the progress necessary for the campus or district to
 meet state standards and for its students to meet college readiness
 performance standards as determined under Section 39.0241 or the
 alternate performance standard established under Section 39.0243.
 Comparable improvement is derived by measuring campuses and
 districts against a profile developed from a total state student
 performance database that 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.
 (f)  Annually, the commissioner shall define the state
 standard for the current school year for each student achievement
 indicator described by Subsection (c) for accreditation and shall
 project the state standards for each indicator for accreditation
 for the following two school years.  The commissioner shall
 periodically raise the state standards for the student achievement
 indicator described by Subsection (c)(1)(A) for accreditation as
 necessary to reach the goal of achieving, by not later than the
 2019-2020 school year, 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.
 (g)  In defining the required state standard for
 accreditation for the indicator described by Subsection (c)(2), the
 commissioner may not consider as a dropout a student whose failure
 to attend school results from:
 (1) the student's expulsion under Section 37.007; and
 (2) as applicable:
 (A)  adjudication as having engaged in delinquent
 conduct or conduct indicating a need for supervision, as defined by
 Section 51.03, Family Code; or
 (B)  conviction of and sentencing for an offense
 under the Penal Code.
 (h)  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.
 (i)  The commissioner by rule shall adopt accountability
 measures to be used in assessing the progress of students who have
 failed to perform satisfactorily as described by Subsection
 (c)(1)(A) 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.
 (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).
 Any consideration of the effectiveness of district programs under
 Section 39.052(b)(2)(B) or (C) must be based on data collected
 through the Public Education Information Management System (PEIMS)
 for purposes of accountability under this chapter and include the
 results of assessment instruments required under Section 39.023.
 (c)  In evaluating school district and campus performance on
 the student achievement indicator adopted under Section
 39.053(c)(1), the commissioner shall identify satisfactory
 performance as meeting the state standard determined by the
 commissioner under Section 39.053(f) 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)  Each annual accreditation review under Section 39.052
 shall include an analysis of the student achievement indicators
 adopted under Section 39.053(c) to determine school district and
 campus performance in relation to:
 (1) standards established for each indicator;
 (2)  required improvement as defined under Section
 39.053(e); and
 (3)  comparable improvement as defined by Section
 39.053(e).
 (e)  In the computation of dropout rates under Section
 39.053(c)(2), a student who is released from a juvenile
 pre-adjudication secure detention facility or juvenile
 post-adjudication secure correctional facility and fails to enroll
 in school or a student who leaves a residential treatment center
 after receiving treatment for fewer than 85 days and fails to enroll
 in school may not be considered to have dropped out from the school
 district or campus serving the facility or center unless that
 district or campus is the one to which the student is regularly
 assigned.
 Sec. 39.055.  STUDENT CONFINED BY COURT ORDER 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, including the
 accreditation status of a district or campus, a student confined by
 court order in 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.  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)  as a result of the investigation, change the
 accreditation status 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 indicators adopted under
 Section 39.053.
 (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 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 or campus's
 accreditation.
 (e)  If an annual accreditation review under Section 39.052
 indicates low performance on one or more of the indicators adopted
 under Section 39.053(c) of one or more campuses in a school
 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.  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;
 (9)  when a significant pattern of increased student
 dropout rates or decreased academic performance develops as the
 result of the promotion of students who did not perform
 satisfactorily on assessment instruments administered under
 Section 39.023(a), (c), or (l); or
 (10)  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)  The commissioner may authorize special accreditation
 investigations to be conducted in response to repeated complaints
 submitted to the agency concerning imposition of excessive
 paperwork requirements on classroom teachers.
 (d)  Based on the results of a special accreditation
 investigation, the commissioner may:
 (1) take appropriate action under Subchapter E;
 (2)  lower the school district's or campus's
 accreditation status; or
 (3) take action under both Subdivisions (1) and (2).
 (e)  Regardless of whether the commissioner lowers the
 school district's or campus's accreditation status under Subsection
 (d), the commissioner may take action under Sections 39.101(a)(1)
 through (8) or 39.102(1) through (7) 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.  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.
 SECTION 24. Subchapter I, Chapter 39, Education Code, is
 redesignated as Subchapter D, Chapter 39, Education Code, and the
 sections in the redesignated subchapter, Sections 39.201, 39.202,
 39.203, and 39.204, are redesignated as Sections 39.081, 39.082,
 39.083, and 39.084, Education Code, respectively.
 SECTION 25. Subchapter I, Chapter 39, Education Code,
 redesignated by this Act as Subchapter D, Chapter 39, Education
 Code, is amended by adding Sections 39.0821, 39.0822, and 39.0823
 to read as follows:
 Sec. 39.0821.  COMPTROLLER REVIEW OF RESOURCE ALLOCATION
 PRACTICES. 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.
 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 five 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 five years, as
 appropriate:
 (1)  student-to-staff ratios relative to expenditures,
 including average staff salaries;
 (2)  the rate of depletion of the district 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 financial data for the district for the
 month of September.
 (c)  The agency shall consult school district financial
 officers in developing the review process under this section.
 (d)  The agency shall develop a computer software template
 for school districts to use in submitting information to the agency
 for purposes of this section. Each district shall update
 information to the template 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 template before the district adopts its budget. The
 template 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 template 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 five 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.
 SECTION 26. Section 39.203(b), Education Code,
 redesignated by this Act as Section 39.083(b), Education Code, is
 amended to read as follows:
 (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
 computer software template developed under Section 39.0822; and
 (3) any descriptive information required by the
 commissioner.
 SECTION 27. Subchapter G, Chapter 39, Education Code, is
 redesignated as Subchapter E, Chapter 39, Education Code, and the
 sections in the redesignated subchapter, Sections 39.131, 39.132,
 39.1321, 39.1322, 39.1323, 39.1324, 39.1327, 39.133, 39.1331,
 39.134, 39.135, 39.136, 39.137, and 39.138, Education Code, are
 redesignated as Sections 39.101, 39.102, 39.103, 39.104, 39.105,
 39.106, 39.107, 39.108, 39.109, 39.110, 39.111, 39.112, 39.113, and
 39.114, Education Code, respectively.
 SECTION 28. The heading to Subchapter G, Chapter 39,
 Education Code, redesignated by this Act as Subchapter E, Chapter
 39, Education Code, is amended to read as follows:
 SUBCHAPTER E [G]. ACCREDITATION INTERVENTIONS AND SANCTIONS
 SECTION 29. Section 39.131, Education Code, redesignated by
 this Act as Section 39.101, Education Code, is amended to read as
 follows:
 Sec. 39.101 [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 39.072,] 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 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(d) [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 for which performance is currently
 determined, a district has received an accreditation status of
 accredited-warned or accredited-probation, has failed to satisfy
 any standard under Section 39.054(d) [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(d) [been rated academically unacceptable] for
 two consecutive school years, including the [current] school year
 for which performance is currently determined, 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 for
 which the accreditation status is currently determined, 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.
 SECTION 30. Section 39.132, Education Code, redesignated by
 this Act as Section 39.102, Education Code, is amended to read as
 follows:
 Sec. 39.102 [39.132]. INTERVENTIONS AND SANCTIONS FOR
 LOW-PERFORMING [ACADEMICALLY UNACCEPTABLE] CAMPUSES. If a campus
 performance is below any standard under Section 39.054(d)
 [39.073(b)], the campus is considered a low-performing [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:
 (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 insufficient
 [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 student achievement [academic excellence]
 indicator under Section 39.053(c) for which the campus's
 performance is insufficient [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
 (7) appoint a campus intervention team under Section
 39.104 [39.1322].
 SECTION 31. The heading to Section 39.1321, Education Code,
 redesignated by this Act as Section 39.103, Education Code, is
 amended to read as follows:
 Sec. 39.103 [39.1321]. INTERVENTIONS AND SANCTIONS FOR
 CHARTER SCHOOLS.
 SECTION 32. Sections 39.1321(a), (b), and (d), Education
 Code, redesignated by this Act as Section 39.103(a), (b), and (d),
 Education Code, are amended to read as follows:
 (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.
 (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.
 SECTION 33. Sections 39.1322(a) and (b), Education Code,
 redesignated by this Act as Sections 39.104(a) and (b), Education
 Code, are amended to read as follows:
 (a) If a campus performance satisfies performance standards
 under Section 39.054(d) [is rated academically acceptable] for the
 current school year but would not satisfy performance standards
 under Section 39.054(d) [be rated as academically unacceptable] if
 the [performance] standards to be used for the following school
 year were applied to the current school year, the commissioner
 shall 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 satisfy performance
 standards under Section 39.054(d) [be rated academically
 acceptable] in the following school year.
 (b) If a campus has been identified as a low-performing
 campus [academically unacceptable] under Section 39.102 [39.132],
 the commissioner shall appoint a campus intervention team.
 SECTION 34. Sections 39.1323(a), (b), (e), and (f),
 Education Code, redesignated by this Act as Sections 39.105(a),
 (b), (e), and (f), Education Code, are amended to read as follows:
 (a) A campus intervention team shall:
 (1) conduct a comprehensive on-site needs assessment
 [evaluation] of the campus as provided by Subsection (b) [to
 determine the cause for the campus's low performance and lack of
 progress];
 (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 school improvement
 plan for student achievement; and
 (4) assist the commissioner in monitoring the progress
 of the campus in implementing the school improvement plan for
 improvement of student achievement.
 (b) 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 causal factors resulting in the campus's low performance and
 lack of progress. The team shall use the following guidelines and
 procedures in conducting the comprehensive 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 number of teachers with less than three years of experience, and
 teacher 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;
 (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) 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 school improvement plan under
 Subsection (d).
 (e) A campus intervention team [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(d) [is rated academically
 acceptable] for a two-year period; or
 (B) the campus satisfies all performance
 standards under Section 39.054(d) [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) may continually update the school improvement
 plan, with approval from the commissioner, to meet the needs of the
 campus.
 (f) Notwithstanding any other provision of this subchapter,
 if the commissioner determines that a campus for which an
 intervention is ordered under Section 39.104(b) [39.1322(b)] is not
 fully implementing the campus intervention team's recommendations
 or school improvement plan, the commissioner may order the
 reconstitution of the campus.
 SECTION 35. The heading to Section 39.1324, Education Code,
 redesignated by this Act as Section 39.106, Education Code, is
 amended to read as follows:
 Sec. 39.106 [39.1324]. MANDATORY INTERVENTIONS AND
 SANCTIONS.
 SECTION 36. Sections 39.1324(a), (d), (e), and (f),
 Education Code, redesignated by this Act as Sections 39.106(a),
 (d), (e), and (f), Education Code, are amended to read as follows:
 (a) If a campus has been identified as a low-performing
 campus under Section 39.102 [academically unacceptable] for two
 consecutive school years, including the [current] school year for
 which the performance is currently determined, the commissioner
 shall order the reconstitution of the campus and assign a campus
 intervention team. In reconstituting the campus, a campus
 intervention team shall assist the campus in:
 (1) developing a school improvement plan;
 (2) obtaining approval of the plan from the
 commissioner; and
 (3) executing the plan on approval by the
 commissioner.
 (d) Notwithstanding any other provision of this subchapter,
 if the commissioner determines that a campus subject to Subsection
 (a) is not fully implementing the school improvement plan, the
 commissioner may pursue alternative management of the campus under
 Section 39.107 [39.1327] or may order closure of the campus.
 (e) If a campus is identified as a low-performing campus
 under Section 39.102 [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 39.107 [39.1327].
 (f) If a campus is identified as a low-performing campus
 under Section 39.102 [considered academically unacceptable] for
 two consecutive school years after the campus is reconstituted
 under Subsection (a), the commissioner shall order closure of the
 campus or pursue alternative management under Section 39.107
 [39.1327].
 SECTION 37. The heading to Section 39.1327, Education Code,
 redesignated by this Act as Section 39.107, Education Code, is
 amended to read as follows:
 Sec. 39.107 [39.1327]. MANAGEMENT OF CERTAIN LOW-PERFORMING
 [ACADEMICALLY UNACCEPTABLE] CAMPUSES.
 SECTION 38. Sections 39.1327(a), (b), (c), (d), (e), and
 (f), Education Code, redesignated by this Act as Sections
 39.107(a), (b), (c), (d), (e), and (f), Education Code, are amended
 to read as follows:
 (a) A campus may be subject to this section if the campus has
 been identified as a low-performing campus under Section 39.102
 [academically unacceptable under Section 39.132] and the
 commissioner orders alternative management under Section 39.106(d)
 [39.1324(d)], (e), or (f).
 (b) The commissioner shall solicit proposals from qualified
 nonprofit or for profit 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. 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.
 (c) If the commissioner determines that the basis for
 identifying a campus as a low-performing campus [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.
 (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.
 (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 low-performing [academically unacceptable] campuses;
 (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.
 (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.
 SECTION 39. Section 39.133, Education Code, redesignated by
 this Act as Section 39.108, Education Code, is amended to read as
 follows:
 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 [rating] has been lowered due to insufficient
 [unacceptable] student performance and may not raise the
 accreditation status [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.
 SECTION 40. Section 39.1331, Education Code, redesignated
 by this Act as Section 39.109, Education Code, is amended to read as
 follows:
 Sec. 39.109 [39.1331]. ACQUISITION OF PROFESSIONAL
 SERVICES. In addition to other interventions and sanctions
 authorized under Sections 39.101 [39.131] and 39.102 [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, or governance deficiency. The commissioner's order may
 require the district or campus to:
 (1) select an external auditor, data quality expert,
 professional authorized to monitor district assessment instrument
 administration, or curriculum or program expert; or
 (2) provide for 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.
 SECTION 41. Section 39.134, Education Code, redesignated by
 this Act as Section 39.110, Education Code, is amended to read as
 follows:
 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
 under Section 39.107 [39.1327], or service provider under Section
 39.109 [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.
 SECTION 42. Section 39.135(c), Education Code,
 redesignated by this Act as Section 39.111(c), Education Code, is
 amended to read as follows:
 (c) A conservator or management team, if directed by the
 commissioner, shall prepare a plan for the implementation of action
 under Section 39.101(a)(9) or (10) [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.
 SECTION 43. Subchapter K, Chapter 39, Education Code, is
 redesignated as Subchapter F, Chapter 39, Education Code, and the
 sections in the redesignated subchapter, Sections 39.301 and
 39.302, are redesignated as Sections 39.151 and 39.152, Education
 Code.
 SECTION 44. The heading to Subchapter K, Chapter 39,
 Education Code, redesignated by this Act as Subchapter F, Chapter
 39, Education Code, is amended to read as follows:
 SUBCHAPTER F [K]. PROCEDURES FOR CHALLENGE OF ACCREDITATION
 STATUS, ACCOUNTABILITY DETERMINATION, INTERVENTION, [RATING] OR
 SANCTION
 SECTION 45. The heading to Section 39.301, Chapter 39,
 Education Code, redesignated by this Act as Section 39.151,
 Education Code, is amended to read as follows:
 Sec. 39.151 [39.301]. REVIEW BY COMMISSIONER:
 ACCREDITATION STATUS OR ACCOUNTABILITY DETERMINATION [RATINGS].
 SECTION 46. Sections 39.301(a), (b), and (e), Chapter 39,
 Education Code, redesignated by this Act as Sections 39.151(a),
 (b), and (e), Education Code, are amended to read as follows:
 (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
 accreditation status determination or other determination made
 under this chapter regarding the academic or financial performance
 of [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 accreditation status determination, academic performance
 determination, or financial accountability rating. The
 commissioner may not appoint an agency employee as a member of the
 committee.
 (e) A school district or open-enrollment charter school may
 not challenge an agency decision relating to an accreditation
 status determination or other determination made under this chapter
 regarding the academic or financial performance of the district or
 school [accountability rating under this chapter] in another
 proceeding if the district or school has had an opportunity to
 challenge the decision under this section.
 SECTION 47. Chapter 39, Education Code, is amended by
 adding Subchapter G to read as follows:
 SUBCHAPTER G.  DISTINCTION DESIGNATIONS
 Sec. 39.201.  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.  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 39.202 shall be awarded a distinction
 designation by the commissioner for the following programs or the
 following specific categories of performance:
 (1) academic achievement;
 (2) fine arts;
 (3) physical education;
 (4) 21st Century Workforce Development program; and
 (5) second language acquisition program.
 (d)  A campus may not be awarded a distinction designation
 under this subchapter unless the campus is assigned an
 accreditation status of accredited under Section 39.052.
 Sec. 39.202.  CAMPUS DISTINCTION DESIGNATION CRITERIA;
 COMMITTEES. (a) The commissioner by rule shall establish:
 (1)  standards for considering campuses for
 distinction designations under Section 39.201(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 39.201(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.
 SECTION 48. Subchapter F, Chapter 39, Education Code, is
 redesignated as Subchapter H, Chapter 39, Education Code, and the
 sections in the redesignated subchapter, Sections 39.111, 39.112,
 39.113, 39.114, 39.115, and 39.116, are redesignated as Sections
 39.231, 39.232, 39.233, 39.234, 39.235, and 39.236, Education Code,
 respectively.
 SECTION 49. Section 39.111, Education Code, redesignated by
 this Act as Section 39.231, Education Code, is amended to read as
 follows:
 Sec. 39.231 [39.111]. RECOGNITION AND REWARDS. The State
 Board of Education shall develop a plan for recognizing and
 rewarding school [districts and] campuses that receive a
 distinction designation under Subchapter G and develop [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.
 SECTION 50. Section 39.112, Education Code, redesignated by
 this Act as Section 39.232, Education Code, is amended to read as
 follows:
 Sec. 39.232 [39.112]. DISTINCTION [EXCELLENCE] EXEMPTIONS.
 (a) Except as provided by Subsection (b), a school campus [or
 district] that holds a distinction designation under Section
 39.201(a) or (c)(1) [is rated exemplary] 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, E [D], 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 a [an exemplary] school
 campus that receives a distinction designation under Section
 39.201(a) or (c)(1) 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.
 SECTION 51. Section 39.113(a), Education Code,
 redesignated by this Act as Section 39.233(a), Education Code, is
 amended to read as follows:
 (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].
 SECTION 52. Section 39.114(b), Education Code,
 redesignated by this Act as Section 39.234(b), Education Code, is
 amended to read as follows:
 (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].
 SECTION 53. Section 39.115(a), Education Code,
 redesignated by this Act as Section 39.235(a), Education Code, is
 amended to read as follows:
 (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].
 SECTION 54. Section 39.116, Education Code, redesignated by
 this Act as Section 39.236, Education Code, is amended to read as
 follows:
 Sec. 39.236 [39.116]. INITIATIVE FOR RETAINING QUALITY
 EDUCATORS. Notwithstanding Section 39.106(b) [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 39.106(a)
 [39.1324(a)] if the students enrolled at the campus have
 demonstrated a pattern of significant academic improvement.
 SECTION 55. Subchapter E, Chapter 39, Education Code, is
 redesignated as Subchapter I, Chapter 39, Education Code, and the
 sections in the redesignated subchapter, Sections 39.091, 39.092,
 39.093, 39.094, 39.095, and 39.096, are redesignated as Sections
 39.261, 39.262, 39.263, 39.264, 39.265, and 39.266, Education Code,
 respectively.
 SECTION 56. Section 39.093, Education Code, redesignated by
 this Act as Section 39.263, Education Code, is amended by amending
 Subsection (a) and adding Subsection (a-1) to read as follows:
 (a) The criteria that the commissioner shall use to select
 successful schools and districts must be related to the goals in
 Section 4.002 and must include:
 (1) for districts and campuses, consideration of
 performance on the student achievement [academic excellence]
 indicators adopted under Section 39.053(c); and
 (2)  for campuses, consideration of the distinction
 designation criteria prescribed by or developed under Subchapter G
 [39.051].
 (a-1) 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.
 SECTION 57. Chapter 39, Education Code, is amended by
 adding Subchapter J to read as follows:
 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 on a
 campus 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(b).
 (c) Indicators for reporting purposes must include:
 (1)  the percentage of graduating students who meet the
 course requirements established for the Texas Diploma high school
 program by State Board of Education rule;
 (2)  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;
 (3)  for students who have failed to perform
 satisfactorily, as determined under the college readiness
 performance standard under Section 39.0241, 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;
 (4)  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, and the performance of those students in the school
 year following that promotion on the assessment instruments
 required under Section 39.023;
 (5)  the percentage of students exempted, by exemption
 category, from the assessment program generally applicable under
 this chapter;
 (6)  the percentage of students of limited English
 proficiency exempted from the administration of an assessment
 instrument under Sections 39.027(a)(3) and (4);
 (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 measure of progress toward college readiness;
 and
 (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.
 (d)  Performance on the indicators described by 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 determining the performance
 of a school district or campus on an indicator 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 the college readiness 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 instruments questions and
 answers released under Section 39.023(e).
 Sec. 39.304.  TEACHER REPORT CARD.  Each school district
 shall prepare a report of the comparisons made under Section 39.034
 and provided to the district under 39.302 and provide the report to
 each teacher for all students who:
 (1)  were assessed on an assessment instrument under
 Section 39.023; and
 (2)  were provided instruction by that teacher in the
 subject for which the assessment instrument was administered under
 Section 39.023.
 Sec. 39.305.  CAMPUS REPORT CARD. (a)  The agency shall, not
 later than August 1 of each year, report the performance of each
 campus in a school district on the basis of the campus's performance
 on the indicators described by Section 39.053(c).
 (b)  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, state-established standards, and comparable
 campus group performance.
 (c)  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 (4);
 (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.
 (d)  The commissioner shall adopt rules requiring
 dissemination of the information required under Subsection (c)(4)
 and appropriate class size and student performance portions of
 campus report cards annually to the parent of or other person
 standing in parental relationship to 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.  PERFORMANCE REPORT. (a)  Each board of
 trustees shall publish an annual report describing the educational
 performance of the school district and of each campus in the
 district that includes uniform student performance and descriptive
 information as determined under rules adopted by the commissioner.
 The annual report must also include:
 (1)  campus performance objectives established under
 Section 11.253 and the progress of each campus toward those
 objectives, which shall be available to the public;
 (2)  information indicating the district's
 accreditation status and identifying each district campus awarded a
 distinction designation under Subchapter G or considered a
 low-performing campus under Section 39.102;
 (3)  the district's current special education
 compliance status with the agency;
 (4)  a statement of the number, rate, and type of
 violent or criminal incidents that occurred on each district
 campus, to the extent permitted under the Family Educational Rights
 and Privacy Act of 1974 (20 U.S.C. Section 1232g);
 (5)  information concerning school violence prevention
 and violence intervention policies and procedures that the district
 is using to protect students;
 (6)  the findings that result from evaluations
 conducted under the Safe and Drug-Free Schools and Communities Act
 of 1994 (20 U.S.C. Section 7101 et seq.); and
 (7)  information received under Section 51.403(e) for
 each high school campus in the district, presented in a form
 determined by the commissioner.
 (b)  Supplemental information to be included in the report
 shall be determined by the board of trustees. Performance
 information in the annual report on the indicators described by
 Sections 39.053 and 39.301 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 school district and parents
 of and other persons standing in parental relation to 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;
 (2)  the performance of each school district to its
 previous performance and to state-established standards; and
 (3)  the performance of each campus or district to
 comparable campus group or district performance.
 (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, 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 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, 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.  USES OF PERFORMANCE REPORT. The information
 required to be reported under Section 39.306 shall be:
 (1)  the subject of public hearings or meetings
 required under Sections 11.252, 11.253, and 39.306;
 (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.  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 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 section.
 (c)  If the risk-based system indicates that a 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)  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.
 SECTION 58. Subchapter H, Chapter 39, Education Code, is
 redesignated as Subchapter K, Chapter 39, Education Code, and the
 sections in the redesignated subchapter, Sections 39.181, 39.182,
 39.183, 39.184, and 39.185, are redesignated as Sections 39.331,
 39.332, 39.333, 39.334, and 39.335, Education Code, respectively.
 SECTION 59. Section 39.182, Education Code, redesignated by
 this Act as Section 39.332, Education Code, is amended to read as
 follows:
 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.
 SECTION 60. Section 39.183, Education Code, redesignated by
 this Act as Section 39.333, Education Code, is amended to read as
 follows:
 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 a
 low-performing campus under Section 39.102;
 (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.
 SECTION 61. Section 39.185, Education Code, redesignated by
 this Act as Section 39.335, Education Code, is amended to read as
 follows:
 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)].
 SECTION 62. Subchapter J, Chapter 39, Education Code, is
 redesignated as Subchapter L, Chapter 39, Education Code, and
 amended to read as follows:
 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 a low-performing
 campus under Section 39.102 [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 [performance
 rating] of the district[, as determined] under Section 39.052
 [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)].
 SECTION 63. Subchapter L, Chapter 39, Education Code, is
 redesignated as Subchapter M, Chapter 39, Education Code, and the
 sections in the redesignated subchapter, Sections 39.351, 39.352,
 39.353, 39.354, 39.355, 39.356, 39.357, 39.358, 39.359, 39.360,
 39.361, 39.362, 39.363, 39.364, 39.365, and 39.366, are
 redesignated as Sections 39.401, 39.402, 39.403, 39.404, 39.405,
 39.406, 39.407, 39.408, 39.409, 39.410, 39.411, 39.412, 39.413,
 39.414, 39.415, and 39.416, Education Code, respectively.
 SECTION 64. Section 39.353, Education Code, redesignated by
 this Act as Section 39.403, Education Code, is amended to read as
 follows:
 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.
 SECTION 65. Section 39.365(b), Education Code,
 redesignated by this Act as Section 39.415(b), Education Code, is
 amended to read as follows:
 (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].
 SECTION 66. Section 51.3062, Education Code, is amended by
 adding Subsection (q-1) to read as follows:
 (q-1)  A student who has completed a Texas Diploma 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 67. Sections 51.803(a), (b), and (d), Education
 Code, are amended to read as follows:
 (a) Each general academic teaching institution shall admit
 an applicant for admission to the institution as an undergraduate
 student if the applicant graduated with a grade point average in the
 top 10 percent of the student's high school graduating class in one
 of the two school years preceding the academic year for which the
 applicant is applying for admission and:
 (1) the applicant graduated from a public or private
 high school in this state accredited by a generally recognized
 accrediting organization or from a high school operated by the
 United States Department of Defense;
 (2) the applicant:
 (A) successfully completed:
 (i) at a public high school, the curriculum
 requirements established under Section 28.025 for the Texas Diploma
 [recommended] or advanced high school program; or
 (ii) at a high school to which Section
 28.025 does not apply, a curriculum that is equivalent in content
 and rigor to the Texas Diploma [recommended] or advanced high
 school program; or
 (B) satisfied ACT's College Readiness Benchmarks
 on the ACT assessment applicable to the applicant or earned on the
 SAT assessment a score of at least 1,500 out of 2,400 or the
 equivalent; and
 (3) if the applicant graduated from a high school
 operated by the United States Department of Defense, the applicant
 is a Texas resident under Section 54.052 or is entitled to pay
 tuition fees at the rate provided for Texas residents under Section
 54.058(d) for the term or semester to which admitted.
 (b) An applicant who does not satisfy the curriculum
 requirements prescribed by Subsection (a)(2)(A)(i) or (ii) is
 considered to have satisfied those requirements if the student
 completed the portion of the Texas Diploma [recommended] or
 advanced curriculum or of the curriculum equivalent in content and
 rigor, as applicable, that was available to the student but was
 unable to complete the remainder of the curriculum solely because
 courses necessary to complete the remainder were unavailable to the
 student at the appropriate times in the student's high school
 career as a result of course scheduling, lack of enrollment
 capacity, or another cause not within the student's control.
 (d) For purposes of Subsection (c)(2), a student's official
 transcript or diploma must, not later than the end of the student's
 junior year, indicate:
 (1) whether the student has satisfied or is on
 schedule to satisfy the requirements of Subsection (a)(2)(A)(i) or
 (ii), as applicable; or
 (2) if Subsection (b) applies to the student, whether
 the student has completed the portion of the Texas Diploma
 [recommended] or advanced curriculum or of the curriculum
 equivalent in content and rigor, as applicable, that was available
 to the student.
 SECTION 68. 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 and amended to
 read as follows:
 Sec. 51.807. RULEMAKING. (a) To ensure a uniform standard
 for admissions under this subchapter, the Texas Higher Education
 Coordinating Board shall adopt rules establishing a standard method
 for computing a student's high school grade point average. The
 method established under this subsection:
 (1) must:
 (A) be based on a four-point scale; and
 (B) assign additional weight for each honors
 course, advanced placement course, international baccalaureate
 course, or dual credit course completed by the student as the board
 considers appropriate, taking into consideration the academic
 rigor of each course completed by the student; and
 (2) may result in a student having a grade point
 average higher than 4.0 on a four-point scale as a result of the
 assignment of additional weight for one or more courses completed
 by a student under Subdivision (1)(B).
 (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
 Texas Diploma [recommended] or advanced high school program.
 (c) The board may adopt other rules relating to the
 operation of admissions programs under this subchapter, including
 rules relating to the identification of eligible students.
 (d) The standard method established under Subsection (a)
 for computing a student's high school grade point average applies
 to computing the grade point average of a student applying as a
 first-time freshman for admission to a general academic teaching
 institution beginning with admissions for the 2009 fall semester.
 This subsection expires January 1, 2010.
 SECTION 69. Sections 56.203(a) and (d), Education Code, are
 amended to read as follows:
 (a) To be eligible for an award through the Early High
 School Graduation Scholarship program, a person must:
 (1) have graduated from a public high school in this
 state:
 (A) in not more than 41 consecutive months and
 successfully completed the Texas Diploma [recommended] or advanced
 high school program established under Section 28.025, if the person
 graduated on or after September 1, 2005;
 (B) in not more than 46 consecutive months, with
 at least 30 hours of college credit, and successfully completed the
 Texas Diploma [recommended] or advanced high school program
 established under Section 28.025, if the person graduated on or
 after September 1, 2005; or
 (C) in not more than 36 consecutive months after
 successfully completing the requirements for a high school diploma,
 if the person graduated before September 1, 2005, regardless of
 whether the person successfully completed the Texas Diploma
 [recommended] or advanced high school program established under
 Section 28.025;
 (2) have attended one or more public high schools in
 this state for the majority of time the person attended high school;
 and
 (3) be a citizen of the United States or otherwise
 lawfully authorized to be present in the United States.
 (d) A person who does not satisfy the curriculum
 requirements for the Texas Diploma [recommended] or advanced high
 school program as required to establish eligibility under
 Subsection (a)(1)(A) or (B) is considered to have satisfied those
 requirements if the high school from which the person graduated
 indicates on the person's transcript that the person was unable to
 complete the appropriate curriculum within the time prescribed by
 that subsection solely because of a reason beyond the person's
 control, such as lack of enrollment capacity or a shortage of
 qualified teachers.
 SECTION 70. Section 56.204(a), Education Code, is amended
 to read as follows:
 (a) An eligible person under the Early High School
 Graduation Scholarship program is entitled to a state credit to
 apply toward tuition or tuition and mandatory fees, as applicable,
 at a public or private institution of higher education in this state
 in the following amounts:
 (1) $2,000 to apply toward tuition and mandatory fees
 if the person successfully completed the Texas Diploma
 [recommended] or advanced high school program established under
 Section 28.025 and graduated from high school on or after September
 1, 2005, in 36 consecutive months or less and an additional $1,000
 to apply toward tuition and mandatory fees if the person graduated
 with at least 15 hours of college credit;
 (2) $500 to apply toward tuition and mandatory fees if
 the person successfully completed the Texas Diploma [recommended]
 or advanced high school program established under Section 28.025
 and graduated from high school on or after September 1, 2005, in
 more than 36 consecutive months but not more than 41 consecutive
 months and an additional $1,000 to apply toward tuition and
 mandatory fees if the person graduated with at least 30 hours of
 college credit;
 (3) $1,000 to apply toward tuition and mandatory fees
 if the person successfully completed the Texas Diploma
 [recommended] or advanced high school program established under
 Section 28.025 and graduated from high school on or after September
 1, 2005, in more than 41 consecutive months but not more than 45
 consecutive months with at least 30 hours of college credit; or
 (4) $1,000 to apply only toward tuition if the person
 graduated before September 1, 2005, after successfully completing
 the requirements for a high school diploma in not more than 36
 consecutive months.
 SECTION 71. Section 56.210(b), Education Code, is amended
 to read as follows:
 (b) The information provided under Subsection (a) must
 include:
 (1) the number and type of high school course credits
 necessary to satisfy the eligibility requirements for the Early
 High School Graduation Scholarship program; and
 (2) the appropriate order in which those high school
 course credits must be earned to satisfy the eligibility
 requirements, including course credits related to the curriculum
 for the Texas Diploma [recommended] or advanced high school
 program.
 SECTION 72. Sections 56.304(a), (f), and (g), Education
 Code, are amended to read as follows:
 (a) To be eligible initially for a TEXAS grant, a person
 must:
 (1) be a resident of this state as determined by
 coordinating board rules;
 (2) meet either of the following academic
 requirements:
 (A) be a graduate of a public or accredited
 private high school in this state who graduated not earlier than the
 1998-1999 school year and who completed the Texas Diploma
 [recommended] or advanced high school program [curriculum]
 established under Section [28.002 or] 28.025 or its equivalent; or
 (B) have received an associate degree from a
 public or private institution of higher education not earlier than
 May 1, 2001;
 (3) meet financial need requirements as defined by the
 coordinating board;
 (4) be enrolled in an undergraduate degree or
 certificate program at an eligible institution;
 (5) be enrolled as:
 (A) an entering undergraduate student for at
 least three-fourths of a full course load for an entering
 undergraduate student, as determined by the coordinating board, not
 later than the 16th month after the date of the person's graduation
 from high school; or
 (B) an entering student for at least
 three-fourths of a full course load for an undergraduate student as
 determined by the coordinating board, not later than the 12th month
 after the month the person receives an associate degree from a
 public or private institution of higher education;
 (6) have applied for any available financial aid or
 assistance; and
 (7) comply with any additional nonacademic
 requirement adopted by the coordinating board under this
 subchapter.
 (f) The requirement in Subsection (a)(2) that a person must
 have completed the Texas Diploma [recommended] or advanced high
 school program [curriculum] does not apply to a person who:
 (1) attended a public high school in a school district
 if that district certifies to the commissioner of education that
 the high school did not offer all the necessary courses for a person
 to complete all parts of the Texas Diploma [recommended] or
 advanced high school program [curriculum]; and
 (2) completed all courses at the high school offered
 toward the completion of the Texas Diploma [recommended] or
 advanced high school program [curriculum].
 (g) Not later than March 1 of each year, the commissioner of
 education shall provide to the coordinating board a list of all the
 public high schools that do not offer all the courses necessary to
 complete all parts of the Texas Diploma [recommended] or advanced
 high school program [curriculum] as described by Subsection (f)(1).
 SECTION 73. The heading to Section 56.3041, Education Code,
 is amended to read as follows:
 Sec. 56.3041. INITIAL ELIGIBILITY OF PERSON ON TRACK TO
 COMPLETE TEXAS DIPLOMA [RECOMMENDED] OR ADVANCED PROGRAM
 [CURRICULUM].
 SECTION 74. Sections 56.3041(a) and (b), Education Code,
 are amended to read as follows:
 (a) If at the time an eligible institution awards TEXAS
 grants to initial recipients for an academic year an applicant has
 not completed high school or the applicant's final high school
 transcript is not yet available to the institution, the student is
 considered to have satisfied the requirements of Section
 56.304(a)(2)(A) if the student's available high school transcript
 indicates that at the time the transcript was prepared the student
 was on schedule to graduate from high school and to complete the
 Texas Diploma [recommended] or advanced high school program
 [curriculum] or its equivalent, as applicable to the student, in
 time to be eligible for a TEXAS grant for the academic year.
 (b) The coordinating board or the eligible institution may
 require the student to forgo or repay the amount of an initial TEXAS
 grant awarded to the student as described by Subsection (a) if the
 student fails to complete the Texas Diploma [recommended] or
 advanced high school program [curriculum] or its equivalent after
 the issuance of the available high school transcript.
 SECTION 75. Section 56.308(b), Education Code, is amended
 to read as follows:
 (b) Each school district shall:
 (1) notify its middle school students, junior high
 school students, and high school students, those students' teachers
 and counselors, and those students' parents of the TEXAS grant and
 Teach for Texas grant programs, the eligibility requirements of
 each program, the need for students to make informed curriculum
 choices to be prepared for success beyond high school, and sources
 of information on higher education admissions and financial aid in
 a manner that assists the district in implementing a strategy
 adopted by the district under Section 11.252(a)(4); and
 (2) ensure that each student's official transcript or
 diploma indicates whether the student has completed or is on
 schedule to complete:
 (A) the Texas Diploma [recommended] or advanced
 high school program [curriculum] required for grant eligibility
 under Section [28.002 or] 28.025; or
 (B) for a school district covered by Section
 56.304(f)(1), the required portion of the Texas Diploma
 [recommended] or advanced high school program [curriculum] in the
 manner described by Section 56.304(f)(2).
 SECTION 76. Section 56.455, Education Code, is amended to
 read as follows:
 Sec. 56.455. INITIAL ELIGIBILITY FOR LOAN. To be eligible
 initially for a Texas B-On-time loan, a person must:
 (1) be a resident of this state under Section 54.052 or
 be entitled, as a child of a member of the armed forces of the United
 States, to pay tuition at the rate provided for residents of this
 state under Section 54.058;
 (2) meet one of the following academic requirements:
 (A) be a graduate of a public or private high
 school in this state who graduated not earlier than the 2002-2003
 school year under the Texas Diploma [recommended] or advanced high
 school program established under Section 28.025(a) or its
 equivalent;
 (B) be a graduate of a high school operated by the
 United States Department of Defense who:
 (i) graduated from that school not earlier
 than the 2002-2003 school year; and
 (ii) at the time of graduation from that
 school was a dependent child of a member of the armed forces of the
 United States; or
 (C) have received an associate degree from an
 eligible institution not earlier than May 1, 2005;
 (3) be enrolled for a full course load for an
 undergraduate student, as determined by the coordinating board, in
 an undergraduate degree or certificate program at an eligible
 institution;
 (4) be eligible for federal financial aid, except that
 a person is not required to meet any financial need requirement
 applicable to a particular federal financial aid program; and
 (5) comply with any additional nonacademic
 requirement adopted by the coordinating board under this
 subchapter.
 SECTION 77. Section 61.792(b), Education Code, is amended
 to read as follows:
 (b) To qualify for a scholarship under this section, a
 student must:
 (1) have graduated with a grade point average in the
 top 20 percent of the student's high school graduating class;
 (2) have graduated from high school with a grade point
 average of at least 3.5 on a four-point scale or the equivalent in
 mathematics and science courses offered under the Texas Diploma
 [recommended] or advanced high school program under Section
 28.025(a); and
 (3) maintain an overall grade point average of at
 least 3.0 on a four-point scale at the general academic teaching
 institution in which the student is enrolled.
 SECTION 78. Section 61.852(a), Education Code, is amended
 to read as follows:
 (a) A tech-prep program is a program of study that:
 (1) combines at least two years of secondary education
 with at least two years of postsecondary education in a
 nonduplicative, sequential course of study based on the Texas
 Diploma [recommended] high school program adopted by the State
 Board of Education under Section 28.025(a);
 (2) integrates academic instruction and vocational
 and technical instruction;
 (3) uses work-based and worksite learning where
 available and appropriate;
 (4) provides technical preparation in a career field
 such as engineering technology, applied science, a mechanical,
 industrial, or practical art or trade, agriculture, health
 occupations, business, or applied economics;
 (5) builds student competence in mathematics,
 science, reading, writing, communications, economics, and
 workplace skills through applied, contextual academics and
 integrated instruction in a coherent sequence of courses;
 (6) leads to an associate degree, two-year
 postsecondary certificate, or postsecondary two-year
 apprenticeship with provisions, to the extent applicable, for
 students to continue toward completion of a baccalaureate degree;
 and
 (7) leads to placement in appropriate employment or to
 further education.
 SECTION 79. Section 61.855(d), Education Code, is amended
 to read as follows:
 (d) A tech-prep program must:
 (1) be implemented under an articulation agreement
 between the participants in the consortium;
 (2) consist of two to four years of secondary school
 preceding graduation and:
 (A) two or more years of higher education; or
 (B) two or more years of apprenticeship following
 secondary instruction;
 (3) have a common core of required proficiency based
 on the Texas Diploma [recommended] high school program adopted by
 the State Board of Education under Section 28.025(a), with
 proficiencies in mathematics, science, reading, writing,
 communications, and technologies designed to lead to an associate's
 degree or postsecondary certificate in a specific career field;
 (4) include the development of tech-prep program
 curricula for both secondary and postsecondary participants in the
 consortium that:
 (A) meets academic standards developed by the
 state;
 (B) links secondary schools and two-year
 postsecondary institutions, and, if practicable, four-year
 institutions of higher education through nonduplicative sequences
 of courses in career fields, including the investigation of
 opportunities for tech-prep students to enroll concurrently in
 secondary and postsecondary course work;
 (C) uses, if appropriate and available,
 work-based or worksite learning in conjunction with business and
 all aspects of an industry; and
 (D) uses educational technology and distance
 learning, as appropriate, to involve each consortium participant
 more fully in the development and operation of programs;
 (5) include in-service training for teachers that:
 (A) is designed to train vocational and technical
 teachers to effectively implement tech-prep programs;
 (B) provides for joint training for teachers in
 the tech-prep consortium;
 (C) is designed to ensure that teachers and
 administrators stay current with the needs, expectations, and
 methods of business and of all aspects of an industry;
 (D) focuses on training postsecondary education
 faculty in the use of contextual and applied curricula and
 instruction; and
 (E) provides training in the use and application
 of technology;
 (6) include training programs for counselors designed
 to enable counselors to more effectively:
 (A) provide information to students regarding
 tech-prep programs;
 (B) support student progress in completing
 tech-prep programs;
 (C) provide information on related employment
 opportunities;
 (D) ensure that tech-prep students are placed in
 appropriate employment; and
 (E) stay current with the needs, expectations,
 and methods of business and of all aspects of an industry;
 (7) provide equal access to the full range of
 tech-prep programs for individuals who are members of special
 populations, including by the development of tech-prep program
 services appropriate to the needs of special populations; and
 (8) provide for preparatory services that assist
 participants in tech-prep programs.
 SECTION 80. 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, 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 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 Texas Diploma 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, 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;
 (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 Subsection (a):
 (1) curriculum;
 (2) assessments; or
 (3)  instructional materials, including
 technology-based supplemental materials.
 Sec. 61.864.  REVIEW OF COURSES.  Courses developed for
 which a grant is awarded under this subchapter shall be reviewed by
 the commissioner of higher 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; and
 (2)  prepares high school students with the skills
 necessary for employment in the high-demand occupation.
 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 81. Sections 39.034(e), (f), and (g), Education
 Code, are repealed.
 SECTION 82. A reference in law to the minimum high school
 program means the basic high school program. A reference in law to
 the recommended high school program means the Texas Diploma high
 school program.
 SECTION 83. This Act applies beginning with the 2009-2010
 school year.
 SECTION 84. 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.