82R511 CAS-D By: Brown H.B. No. 104 A BILL TO BE ENTITLED AN ACT relating to abolishing the Texas Higher Education Coordinating Board and transferring the coordinating board's functions and activities and the State Board of Education's statutorily assigned functions and activities to the Texas Education Agency. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Sections 1.005(a), (b), (c), (d), (f), (g), (h), and (j), Education Code, are amended to read as follows: (a) In this section, "center" [: [(1) "Center"] means a center for education research authorized by this section. [(2) "Coordinating board" means the Texas Higher Education Coordinating Board.] (b) The commissioner of education [and the coordinating board] may establish not more than three centers for education research for conducting research described by Subsections (e) and (f). (c) A center may be established as part of: (1) the Texas Education Agency; or (2) [the coordinating board; or [(3)] a public junior college, public senior college or university, or public state college, as those terms are defined by Section 61.003. (d) A center may be operated under a memorandum of understanding between the commissioner of education[, the coordinating board,] and the governing board of an educational institution described by Subsection (c)(2) [(c)(3)]. The memorandum of understanding must require the commissioner of education, or a person designated by the commissioner, [and the coordinating board, or a person designated by the coordinating board,] to provide direct[, joint] supervision of the center under this section. (f) The commissioner of education [and the coordinating board]: (1) under the memorandum of understanding described by Subsection (d), may require a center to conduct certain research projects considered of particular importance to the state, as determined by the commissioner [and the coordinating board]; (2) not later than the 45th day before the date a research project required to be conducted under this subsection is scheduled to begin, shall notify the governor, the Legislative Budget Board, and the governing body of the educational institution in which the center is established that the research project is required; and (3) shall provide sufficient funds to finance the project. (g) In conducting research under this section, a center: (1) may use data on student performance, including data that is confidential under the Family Educational Rights and Privacy Act of 1974 (20 U.S.C. Section 1232g), the center has collected from the Texas Education Agency, [the coordinating board,] any public or private institution of higher education, and any school district; and (2) shall comply with rules adopted by the commissioner of education [and the coordinating board] to protect the confidentiality of student information, including rules establishing procedures to ensure that confidential student information is not duplicated or removed from a center in an unauthorized manner. (h) The commissioner of education [and the coordinating board] may: (1) accept gifts and grants to be used in operating one or more centers; and (2) by rule impose reasonable fees, as appropriate, for the use of a center's research, resources, or facilities. (j) The commissioner of education [and the coordinating board] shall adopt rules as necessary to implement this section. SECTION 2. Sections 7.005 and 7.006, Education Code, are amended to read as follows: Sec. 7.005. LONG-RANGE PLANS AND EDUCATIONAL PROGRAMS [COOPERATION BETWEEN STATE AGENCIES OF EDUCATION]. The agency [State Board of Education and the Texas Higher Education Coordinating Board], in conjunction with other appropriate agencies, shall ensure that long-range plans and educational programs established by the agency [each board] provide a comprehensive education for the students of this state [under the jurisdiction of that board], extending from early childhood education through postgraduate study. In ensuring [assuring] that early childhood, primary, secondary, and higher education programs are coordinated, the agency [boards] shall use the P-16 Council established under Section 61.076. Sec. 7.006. STANDARDIZATION [COORDINATION] OF RECORDS. The commissioner [of education and the commissioner of higher education] shall ensure that records relating to student performance held by the agency [Texas Education Agency and the Texas Higher Education Coordinating Board] are [coordinated and] maintained in standardized[, compatible] formats that permit[: [(1) the exchange of information between the agencies; and [(2)] the matching of individual student records so that a student's academic performance may be assessed throughout the student's educational career. SECTION 3. Sections 7.010(b) and (d), Education Code, are amended to read as follows: (b) Each school district, open-enrollment charter school, and institution of higher education shall participate in an electronic student records system that satisfies standards approved by the commissioner [of education and the commissioner of higher education]. (d) The commissioner [of education or the commissioner of higher education] may solicit and accept grant funds to maintain the electronic student records system and to make the system available to school districts, open-enrollment charter schools, and institutions of higher education. SECTION 4. Sections 7.055(b)(9) and (24), Education Code, are amended to read as follows: (9) The commissioner shall have a manual published at least once every two years that contains Title 1 and this title, any other provisions of this code relating specifically to public primary or secondary education, and an appendix of all other state laws relating to public primary or secondary education and shall provide for the distribution of the manual [as determined by the board]. (24) The commissioner[, with the approval of the board,] shall develop and implement a plan for the coordination of services to children with disabilities as required under Section 30.001. SECTION 5. Sections 7.102(a) and (d), Education Code, are amended to read as follows: (a) The board may perform, as provided by this code, only those duties [relating to school districts or regional education service centers] assigned to the board by the constitution of this state [or by this subchapter or another provision of this code]. (d) The board may adopt rules [relating to school districts or regional education service centers] only as required to carry out the specific duties assigned to the board by the constitution [or under Subsection (c)]. SECTION 6. Sections 7.108(a) and (c), Education Code, are amended to read as follows: (a) A person interested in selling bonds of any type [or a person engaged in manufacturing, shipping, selling, or advertising textbooks or otherwise connected with the textbook business] commits an offense if the person makes or authorizes a political contribution to or takes part in, directly or indirectly, the campaign of any person seeking election to or serving on the board. (c) In this section, "political[: [(1) "Political] contribution" has the meaning assigned by Section 251.001, Election Code. [(2) "Textbook" has the meaning assigned by Section 31.002.] SECTION 7. Section 7.109, Education Code, is transferred to Subchapter B, Chapter 7, Education Code, renumbered as Section 7.032, Education Code, and amended to read as follows: Sec. 7.032 [7.109]. DESIGNATION AS STATE BOARD FOR CAREER AND TECHNOLOGY EDUCATION. (a) The agency [board] is also the State Board for Career and Technology Education. (b) The commissioner is the executive officer through whom the State Board for Career and Technology Education shall carry out its policies and enforce its rules. (c) The State Board for Career and Technology Education may contract with [the Texas Higher Education Coordinating Board or] any other state agency to assume the leadership role and administrative responsibility of the State Board for Career and Technology Education for state level administration of technical-vocational education programs in public community colleges, public technical institutes, and other eligible public postsecondary institutions in this state. (d) The State Board for Career and Technology Education may allocate funds appropriated to the board by the legislature or federal funds received by the board under the Carl D. Perkins Career and Technical [Vocational] Education Act of 2006 (20 U.S.C. Section 2301 et seq.) or other federal law to an institution or program approved by the agency [State Board of Education, the Texas Higher Education Coordinating Board,] or another state agency specified by law. SECTION 8. Section 7.111, Education Code, is transferred to Subchapter B, Chapter 7, Education Code, renumbered as Section 7.033, Education Code, and amended to read as follows: Sec. 7.033 [7.111]. HIGH SCHOOL EQUIVALENCY EXAMINATIONS. (a) The agency [board] shall provide for the administration of high school equivalency examinations, including administration by the adjutant general's department for students described by Subdivision (2)(C). A person who does not have a high school diploma may take the examination in accordance with rules adopted by the commissioner [board] if the person is: (1) over 17 years of age; (2) 16 years of age or older and: (A) is enrolled in a Job Corps training program under the Workforce Investment Act of 1998 (29 U.S.C. Section 2801 et seq.)[, and its subsequent amendment]; (B) a public agency providing supervision of the person or having custody of the person under a court order recommends that the person take the examination; or (C) is enrolled in the adjutant general's department's Texas [Seaborne] ChalleNGe Academy [Corps]; or (3) required to take the examination under a justice or municipal court order issued under Article 45.054(a)(1)(C), Code of Criminal Procedure. (b) The commissioner [board] by rule shall establish and require payment of a fee as a condition to the issuance of a high school equivalency certificate and a copy of the scores of the examinations. The fee must be reasonable and designed to cover the administrative costs of issuing the certificate and a copy of the scores. The agency [board] may not require a waiting period between the date a person withdraws from school and the date the person takes the examination unless the period relates to the time between administrations of the examination. SECTION 9. Section 7.112, Education Code, is amended by adding Subsection (d) to read as follows: (d) This section expires January 31, 2014. SECTION 10. Section 7.113, Education Code, is transferred to Subchapter B, Chapter 7, Education Code, renumbered as Section 7.034, Education Code, and amended to read as follows: Sec. 7.034 [7.113]. EMPLOYERS FOR EDUCATION EXCELLENCE AWARD. (a) The agency [board] shall create the Employers for Education Excellence Award to honor employers that implement a policy to encourage and support employees who actively participate in activities of schools. (b) An employer that meets the criteria described by this section may apply for consideration to receive the award. (c) The agency [board] shall establish the following levels of recognition for employers: (1) bronze for an employer that implements a policy to encourage and support employees who attend parent-teacher conferences; (2) silver for an employer that: (A) meets the requirements of bronze; and (B) implements a policy to encourage and support employees who volunteer in school activities; and (3) gold for an employer that: (A) meets the requirements of silver; and (B) implements a policy to encourage and support employees who participate in student mentoring programs in schools. (d) The commissioner [board] shall establish criteria to certify businesses to receive the Employers for Education Excellence Award at the appropriate level of recognition. The commissioner shall review the applications submitted by employers under Subsection (b) and select [make recommendations to the board regarding] businesses that should be recognized and the level at which a business should be recognized. [The board may approve or modify the commissioner's recommendation.] (e) The agency [board] shall honor the recipient of an Employers for Education Excellence Award by presenting the recipient with a suitable certificate that includes the business's level of recognition and other appropriate information. SECTION 11. Section 11.351, Education Code, is amended to read as follows: Sec. 11.351. AUTHORITY TO ESTABLISH SPECIAL-PURPOSE SCHOOL DISTRICT. (a) On the recommendation of the commissioner and after consulting with the school districts involved and obtaining the approval of a majority of those districts in each affected county in which a proposed school district is located, the agency [State Board of Education] may establish a special-purpose school district for the education of students in special situations whose educational needs are not adequately met by regular school districts. The agency [board] may impose duties or limitations on the school district as necessary for the special purpose of the district. The agency [board] shall exercise the powers as provided by this section relating to the districts established under this section. (b) The agency [State Board of Education] shall grant to the districts the right to share in the available school fund apportionment and other privileges as are granted to independent and common school districts. SECTION 12. Section 12.012(a), Education Code, is amended to read as follows: (a) A home-rule school district is subject to federal and state laws and rules governing school districts, except that a home-rule school district is subject to: (1) this code only to the extent that the applicability to a home-rule school district of a provision of this code is specifically provided; (2) a rule adopted under this code by the [State Board of Education or the] commissioner only if the code provision authorizing the rule specifically applies to a home-rule school district; and (3) all requirements of federal law and applicable court orders relating to eligibility for and the provision of special education and bilingual programs. SECTION 13. Section 12.112, Education Code, is amended to read as follows: Sec. 12.112. FORM. A charter for an open-enrollment charter school shall be in the form of a written contract signed by the commissioner [chair of the State Board of Education] and the chief operating officer of the school. SECTION 14. Section 21.033(a), Education Code, is amended to read as follows: (a) The State Board for Educator Certification is composed of 14 members. The commissioner [of education] shall appoint two employees [an employee] of the agency, one of whom has expertise in primary and secondary education and one of whom has expertise in higher education, to represent the commissioner as [a] nonvoting members [member]. [The commissioner of higher education shall appoint an employee of the Texas Higher Education Coordinating Board to represent the commissioner as a nonvoting member.] The governor shall appoint a dean of a college of education in this state as a nonvoting member. The remaining 11 members are appointed by the governor with the advice and consent of the senate, as follows: (1) four members must be teachers employed in public schools; (2) two members must be public school administrators; (3) one member must be a public school counselor; and (4) four members must be citizens, three of whom are not and have not, in the five years preceding appointment, been employed by a [public] school district or by an educator preparation program in an institution of higher education and one of whom is not and has not been employed by a [public] school district or by an educator preparation program in an institution of higher education. SECTION 15. Section 21.034(a), Education Code, is amended to read as follows: (a) The board members appointed by the governor hold office for staggered terms of six years with the terms of one-third of the members expiring on February 1 of each odd-numbered year. A member appointed by the commissioner [of education or the commissioner of higher education] serves at the will of the [appointing] commissioner. SECTION 16. Section 21.042, Education Code, is amended to read as follows: Sec. 21.042. APPROVAL OF RULES. The State Board for Educator Certification must submit a written copy of each rule it proposes to adopt to the commissioner [State Board of Education for review]. The commissioner [State Board of Education] may reject a proposed rule [by a vote of at least two-thirds of the members of the board present and voting]. If the commissioner [State Board of Education] fails to reject a proposal before the 90th day after the date on which the commissioner [it] receives the proposal, the proposal takes effect as a rule of the State Board for Educator Certification as provided by Chapter 2001, Government Code. The commissioner [State Board of Education] may not modify a rule proposed by the State Board for Educator Certification. SECTION 17. Section 28.002(d), Education Code, as added by Chapter 895 (H.B. 3), Acts of the 81st Legislature, Regular Session, 2009, is amended to read as follows: (d) Each time the agency [Texas Higher Education Coordinating Board] revises the Internet database of the agency's [coordinating board's] official statewide inventory of workforce education courses, [the State Board of Education shall by rule revise] the essential knowledge and skills of any corresponding career and technology education curriculum shall be revised by rule as provided by Subsection (c). SECTION 18. Sections 28.008(a), (b), (c), and (d), Education Code, are amended to read as follows: (a) To ensure that students are able to perform college-level course work at institutions of higher education, the commissioner [of education and the commissioner of higher education] shall establish vertical teams composed of public school educators and institution of higher education faculty. (b) The vertical teams shall: (1) recommend for approval by the commissioner [of education and the Texas Higher Education Coordinating Board] college readiness standards and expectations that address what students must know and be able to do to succeed in entry-level courses offered at institutions of higher education; (2) evaluate whether the high school curriculum requirements under Section 28.002 and other instructional requirements serve to prepare students to successfully perform college-level course work; (3) recommend how the public school curriculum requirements can be aligned with college readiness standards and expectations; (4) develop instructional strategies for teaching courses to prepare students to successfully perform college-level course work; and (5) develop or establish minimum standards for curricula, professional development materials, and online support materials in English language arts, mathematics, science, and social studies, designed for students who need additional assistance in preparing to successfully perform college-level course work. (c) The commissioner [of education and the Texas Higher Education Coordinating Board] by rule shall establish the composition and duties of the vertical teams established under this section. (d) The commissioner [State Board of Education] shall incorporate college readiness standards and expectations approved by the commissioner [of education and the Texas Higher Education Coordinating Board] under Subsection (b) into the essential knowledge and skills identified [by the board] under Section 28.002(c). SECTION 19. Sections 28.014(a), (c), (d), (e), and (f), Education Code, are amended to read as follows: (a) The commissioner [of education and the commissioner of higher education] shall develop [and recommend to the State Board of Education] for adoption under Section 28.002 the essential knowledge and skills of courses in college preparatory mathematics, science, social studies, and English language arts. The courses must be designed: (1) for students at the 12th grade level who do not meet college readiness standards on an end-of-course assessment instrument required under Section 39.023(c); and (2) to prepare students for success in entry-level college courses. (c) The agency[, in consultation with the Texas Higher Education Coordinating Board,] shall adopt an end-of-course assessment instrument for each course developed under this section to ensure the rigor of the course. A school district shall, in accordance with commissioner [State Board of Education] rules, administer the end-of-course assessment instrument to a student enrolled in a course developed under this section. Each school district shall adopt a policy that requires a student's performance on the end-of-course assessment instrument to account for 15 percent of the student's final grade for the course. A student's performance on an end-of-course assessment instrument administered under this subsection may be used, on a scale of 0-40, in calculating whether the student satisfies the graduation requirements established under Section 39.025. (d) The agency[, in coordination with the Texas Higher Education Coordinating Board,] shall adopt a series of questions to be included in an end-of-course assessment instrument administered under Subsection (c) to be used for purposes of Section 51.3062. The questions must be developed in a manner consistent with any college readiness standards adopted under Sections 39.233 and 51.3062. (e) The commissioner [State Board of Education] shall adopt instructional materials for a course developed under this section in accordance with Chapter 31. The instructional materials must include technology resources that enhance the effectiveness of the course and draw on established best practices. (f) To the extent applicable, the commissioner shall draw from curricula and instructional materials developed under Section [Sections] 28.008 [and 61.0763] in developing a course and related instructional materials under this section. The agency [Not later than September 1, 2010, the State Board of Education shall adopt essential knowledge and skills for each course developed under this section. The State Board of Education] shall make each course developed under this section and the related instructional materials available to school districts not later than the 2014-2015 school year. As required by Subsection (c), a school district shall adopt a policy requiring a student's performance on an end-of-course assessment instrument administered under that subsection to account for 15 percent of the student's grade for a course developed under this section not later than the 2014-2015 school year. This subsection expires September 1, 2015. SECTION 20. Sections 28.025(a), (b), (b-1), (b-2), (b-3), (b-7), (c), (d), and (e), Education Code, are amended to read as follows: (a) The commissioner [State Board of Education] by rule shall determine curriculum requirements for the minimum, recommended, and advanced high school programs that are consistent with the required curriculum under Section 28.002. Subject to Subsection (b-1), the commissioner [State Board of Education] shall designate the specific courses in the foundation curriculum required for a student participating in the minimum, recommended, or advanced high school program. Except as provided by Subsection (b-1), the commissioner [State Board of Education] may not designate a specific course or a specific number of credits in the enrichment curriculum as requirements for the recommended program. (b) A school district shall ensure that each student enrolls in the courses necessary to complete the curriculum requirements identified by the commissioner [State Board of Education] under Subsection (a) for the recommended or advanced high school program unless the student, the student's parent or other person standing in parental relation to the student, and a school counselor or school administrator agree in writing signed by each party that the student should be permitted to take courses under the minimum high school program and the student: (1) is at least 16 years of age; (2) has completed two credits required for graduation in each subject of the foundation curriculum under Section 28.002(a)(1); or (3) has failed to be promoted to the tenth grade one or more times as determined by the school district. (b-1) The commissioner [State Board of Education] by rule shall require that: (1) except as provided by Subsection (b-2), the curriculum requirements for the recommended and advanced high school programs under Subsection (a) include a requirement that students successfully complete: (A) four credits in each subject of the foundation curriculum under Section 28.002(a)(1), including at least one-half credit in government and at least one-half credit in economics to meet the social studies requirement; (B) for the recommended high school program, two credits in the same language in a language other than English under Section 28.002(a)(2)(A) and, for the advanced high school program, three credits in the same language in a language other than English under Section 28.002(a)(2)(A); and (C) for the recommended high school program, six elective credits and, for the advanced high school program, five elective credits; (2) one or more credits offered in the required curriculum for the recommended and advanced high school programs include a research writing component; and (3) the curriculum requirements for the minimum, recommended, and advanced high school programs under Subsection (a) include a requirement that students successfully complete: (A) one credit in fine arts under Section 28.002(a)(2)(D); and (B) one credit in physical education under Section 28.002(a)(2)(C). (b-2) In adopting rules under Subsection (b-1), the commissioner [State Board of Education] shall allow a student to comply with the curriculum requirements for a mathematics course under Subsection (b-1)(1)(A) [(b-1)(1)] taken after the successful completion of an Algebra II course or science course under Subsection (b-1)(1)(A) [(b-1)(1)] taken after the successful completion of a physics course by successfully completing an advanced career and technical course designated by the commissioner [State Board of Education] as containing substantively similar and rigorous academic content. A student may use the option provided by this subsection for not more than two courses. (b-3) In adopting rules to provide students with the option described by Subsection (b-1)(1)(A), the commissioner [State Board of Education] must approve a variety of mathematics and science courses that may be taken after the completion of Algebra II and physics to comply with the recommended program requirements. (b-7) The commissioner [State Board of Education, in coordination with the Texas Higher Education Coordinating Board,] shall adopt rules to ensure that a student may comply with the curriculum requirements under the minimum, recommended, or advanced high school program for each subject of the foundation curriculum under Section 28.002(a)(1) and for languages other than English under Section 28.002(a)(2)(A) by successfully completing appropriate courses in the core curriculum of an institution of higher education under Section 61.822. (c) A person may receive a diploma if the person is eligible for a diploma under Section 28.0251. In other cases, a student may graduate and receive a diploma only if: (1) the student successfully completes the curriculum requirements identified by the commissioner [State Board of Education] under Subsection (a) and complies with Section 39.025; or (2) the student successfully completes an individualized education program developed under Section 29.005. (d) A school district may issue a certificate of coursework completion to a student who successfully completes the curriculum requirements identified by the commissioner [State Board of Education] under Subsection (a) but who fails to comply with Section 39.025. A school district may allow a student who receives a certificate to participate in a graduation ceremony with students receiving high school diplomas. (e) Each school district shall report the academic achievement record of students who have completed a minimum, recommended, or advanced high school program on transcript forms adopted by the commissioner [State Board of Education]. The transcript forms adopted by the commissioner [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. SECTION 21. Section 29.182(b), Education Code, is amended to read as follows: (b) The state plan must include procedures designed to ensure that: (1) all secondary and postsecondary students have the opportunity to participate in career and technology education programs; (2) the state complies with requirements for supplemental federal career and technology education funding; and (3) career and technology education is established as a part of the total education system of this state and constitutes an option for student learning that provides a rigorous course of study consistent with the required curriculum under Section 28.002 and under which a student may receive specific education in a career and technology program that: (A) incorporates competencies leading to academic and technical skill attainment; (B) leads to: (i) an industry-recognized license, credential, or certificate; or (ii) at the postsecondary level, an associate or baccalaureate degree; (C) includes opportunities for students to earn college credit for coursework; and (D) includes, as an integral part of the program, participation by students and teachers in activities of career and technical student organizations supported by the agency [and the State Board of Education]. SECTION 22. Section 29.190(e), Education Code, is amended to read as follows: (e) The commissioner, in collaboration with [the commissioner of higher education and] the Texas Workforce Commission, shall determine as necessary the occupations that qualify for purposes of this section. SECTION 23. Sections 29.904(b) and (e), Education Code, are amended to read as follows: (b) The agency [and the Texas Higher Education Coordinating Board] shall identify [collaborate in identifying] each school district to which this section applies. Not later than May 1 of each year, [: [(1)] the agency shall notify: (1) a district to which this section applies of the applicability of this section to the district unless the district is operating under a plan required by this section; and (2) [the coordinating board shall notify] each public institution of higher education in this state in closest geographic proximity to a district to which this section applies of the applicability of this section to the district unless the district is operating under a plan required by this section. (e) A school district shall file the plan with the commissioner [of education and the commissioner of higher education]. SECTION 24. Section 31.003, Education Code, is amended to read as follows: Sec. 31.003. RULES. The commissioner [State Board of Education] may adopt rules, consistent with this chapter, for the adoption, requisition, distribution, care, use, and disposal of textbooks. SECTION 25. Section 31.004, Education Code, is amended to read as follows: Sec. 31.004. CERTIFICATION OF PROVISION OF TEXTBOOKS, ELECTRONIC TEXTBOOKS, AND INSTRUCTIONAL MATERIALS. Each school district and open-enrollment charter school shall annually certify to [the State Board of Education and] the commissioner that, for each subject in the required curriculum and each grade level, the district provides each student with textbooks, electronic textbooks, or instructional materials that cover all elements of the essential knowledge and skills adopted [by the State Board of Education] for that subject and grade level. SECTION 26. Sections 31.021(b) and (f), Education Code, are amended to read as follows: (b) The State Board of Education shall annually set aside out of the available school fund of the state an amount sufficient for the agency [board], school districts, and open-enrollment charter schools to purchase and distribute the necessary textbooks for the use of the students of this state for the following school year. The board shall determine the amount of the available school fund to set aside for the state textbook fund based on: (1) a report by the commissioner issued on July 1 or, if that date is a Saturday or Sunday, on the following Monday, stating the amount of unobligated money in the fund; (2) the commissioner's estimate, based on textbooks selected under Section 31.101 and on attendance reports submitted under Section 31.103 by school districts and open-enrollment charter schools, of the amount of funds, in addition to funds reported under Subdivision (1), that will be necessary for purchase and distribution of textbooks for the following school year; and (3) any amount the board determines should be set aside for emergency purposes caused by unexpected increases in attendance. (f) The state textbook fund may be used to purchase technological equipment necessary to support the use of electronic textbooks or instructional material included on the list adopted under Section 31.0231 or any textbook or material approved by the agency [State Board of Education]. SECTION 27. Section 31.022, Education Code, is amended to read as follows: Sec. 31.022. TEXTBOOK REVIEW AND ADOPTION. (a) The agency [State Board of Education] shall adopt a review and adoption cycle for textbooks for elementary grade levels, including prekindergarten, and secondary grade levels, for each subject in the required curriculum under Section 28.002. (b) The agency [board] shall organize the cycle for subjects in the foundation curriculum so that not more than one-sixth of the textbooks for subjects in the foundation curriculum are reviewed each year. The commissioner [board] shall adopt rules to provide for a full and complete investigation of textbooks for each subject in the foundation curriculum at least every six years. The adoption of textbooks for a subject in the foundation curriculum may be extended beyond the six-year period only if the content of textbooks for a subject is sufficiently current. (c) The commissioner [board] shall adopt rules to provide for a full and complete investigation of textbooks for each subject in the enrichment curriculum on a cycle the agency [board] considers appropriate. (d) At least 24 months before the beginning of the school year for which textbooks for a particular subject and grade level will be purchased under the review and adoption cycle adopted by the agency [board], the agency [board] shall publish notice of the review and adoption cycle for those textbooks. (e) The agency [board] shall designate a request for production of textbooks in a subject area and grade level by the school year in which the textbooks are intended to be made available in classrooms and not by the school year in which the agency [board] makes the request for production. (f) The agency [board] shall amend any request for production issued for the purchase of textbooks to conform to the textbook funding levels provided by the General Appropriations Act for the year of implementation. SECTION 28. Section 31.0221(a), Education Code, is amended to read as follows: (a) The commissioner [State Board of Education] shall adopt rules for the midcycle review and adoption of a textbook for a subject for which textbooks are not currently under review by the agency [board] under Section 31.022. The rules must require: (1) the publisher of the textbook to pay a fee to the agency [board] to cover the cost of the midcycle review and adoption of the textbook; (2) the publisher of the textbook to enter into a contract with the agency [board] concerning the textbook for a term that ends at the same time as any contract entered into by the agency [board] for another textbook for the same subject and grade level; and (3) a commitment from the publisher to provide the textbook to school districts in the manner specified by the publisher, which may include: (A) providing the textbook to any district in a regional education service center area identified by the publisher; or (B) providing a certain maximum number of textbooks specified by the publisher. SECTION 29. Section 31.0222, Education Code, is amended to read as follows: Sec. 31.0222. BUDGET-BALANCED CYCLE. In determining the review and adoption cycle of textbooks under Section 31.022, the agency [State Board of Education] shall: (1) consult with the Legislative Budget Board and the governor's office of budget, planning, and policy before approving and publishing any notice or amendment of a cycle; (2) review and consider: (A) historic average funding levels for textbooks purchased in previous bienniums; (B) expected average costs of future textbook purchases; (C) anticipated student enrollment in future years; (D) scheduled revisions to curriculum; and (E) the impact on the state budget of the adoption of textbooks in all or some grade levels in a subject area; and (3) limit the cycle to subject areas for which textbooks can be purchased with the funding anticipated to be available in the state textbook fund for the school year in which the textbooks are to be adopted. SECTION 30. Section 31.023(a), Education Code, is amended to read as follows: (a) For each subject and grade level, the agency [State Board of Education] shall adopt two lists of textbooks. The conforming list includes each textbook submitted for the subject and grade level that meets applicable physical specifications adopted by the agency [State Board of Education] and contains material covering each element of the essential knowledge and skills of the subject and grade level in the student version of the textbook, as well as in the teacher version of the textbook, as determined by the agency [State Board of Education] under Section 28.002 and adopted under Section 31.024. The nonconforming list includes each textbook submitted for the subject and grade level that: (1) meets applicable physical specifications adopted by the agency [State Board of Education]; (2) contains material covering at least half, but not all, of the elements of the essential knowledge and skills of the subject and grade level in the student version of the textbook, as well as in the teacher version of the textbook; and (3) is adopted under Section 31.024. SECTION 31. Section 31.0231(c), Education Code, is amended to read as follows: (c) [Before the commissioner places an electronic textbook or instructional material on the list adopted under Subsection (a), the State Board of Education must be given an opportunity to comment on the electronic textbook or instructional material.] An electronic textbook or instructional material placed on the list adopted under Subsection (a): (1) must be reviewed and recommended to the commissioner by a panel of recognized experts in the subject area of the electronic textbook or instructional material and experts in education technology; (2) must satisfy criteria adopted for the purpose by commissioner rule; and (3) must meet the National Instructional Materials Accessibility Standard, to the extent practicable as determined by the commissioner. SECTION 32. Section 31.024, Education Code, is amended to read as follows: Sec. 31.024. ADOPTION BY AGENCY [STATE BOARD OF EDUCATION]. (a) The agency [By majority vote, the State Board of Education] shall: (1) place each submitted textbook on a conforming or nonconforming list; or (2) reject a textbook submitted for placement on a conforming or nonconforming list. (b) Not later than December 1 of the year preceding the school year for which the textbooks for a particular subject and grade level will be purchased under the cycle adopted by the agency [board] under Section 31.022, the agency [board] shall provide the lists of adopted textbooks to each school district. Each nonconforming list must include the reasons an adopted textbook is not eligible for the conforming list. SECTION 33. Sections 31.0241(a) and (b), Education Code, are amended to read as follows: (a) In this section, "eligible institution" means: (1) a public institution of higher education that is designated as a research university or emerging research university under the agency's [higher education coordinating board's] accountability system, or a private university located in this state that is a member of the Association of American Universities; or (2) a public technical institute, as defined by Section 61.003. (b) The agency [State Board of Education] shall place an open-source textbook for a secondary-level course submitted for adoption by an eligible institution on a conforming or nonconforming list if: (1) the textbook is written, compiled, or edited primarily by faculty of the eligible institution who specialize in the subject area of the textbook; (2) the eligible institution identifies each contributing author; (3) the appropriate department of the eligible institution certifies the textbook for accuracy; and (4) the eligible institution determines that the textbook qualifies for placement on the conforming or nonconforming list based on the extent to which the textbook covers the essential knowledge and skills identified under Section 28.002 for the subject for which the textbook is written and certifies that: (A) for a textbook for a senior-level course, a student who successfully completes a course based on the textbook will be prepared, without remediation, for entry into the eligible institution's freshman-level course in that subject; or (B) for a textbook for a junior-level and senior-level course, a student who successfully completes the junior-level course based on the textbook will be prepared for entry into the senior-level course. SECTION 34. Section 31.025(a), Education Code, is amended to read as follows: (a) The agency [State Board of Education] shall set a limit on the cost that may be paid from the state textbook fund for a textbook placed on the conforming or nonconforming list for a particular subject and grade level. The agency [board] may not reject a textbook for placement on the conforming or nonconforming list because the textbook's price exceeds the limit established under this subsection. SECTION 35. Sections 31.026(a) and (b), Education Code, are amended to read as follows: (a) The agency [State Board of Education] shall execute a contract: (1) for the purchase of each adopted textbook other than an electronic textbook; and (2) for the purchase or licensing of each adopted electronic textbook. (b) A contract must require the publisher to provide the number of textbooks required by school districts in this state for the term of the contract, which must coincide with the agency's [board's] adoption cycle. SECTION 36. Section 31.0261, Education Code, is amended to read as follows: Sec. 31.0261. CONTRACTS FOR PRINTING OF OPEN-SOURCE TEXTBOOKS. The agency [State Board of Education] may execute a contract for the printing of an open-source textbook listed on the conforming or nonconforming list. The contract must allow a school district to requisition printed copies of an open-source textbook as provided by Section 31.103. SECTION 37. Sections 31.028(a), (b), and (c), Education Code, are amended to read as follows: (a) The agency [State Board of Education] may purchase special textbooks for the education of blind and visually impaired students in public schools. In addition, for a teacher who is blind or visually impaired, the agency [board] shall provide a teacher's edition in Braille or large type, as requested by the teacher, for each textbook the teacher uses in the instruction of students. The teacher edition must be available at the same time the student textbooks become available. (b) The publisher of an adopted textbook shall provide the agency with computerized textbook files for the production of Braille textbooks or other versions of textbooks to be used by students with disabilities, on request of the agency [State Board of Education]. A publisher shall arrange computerized textbook files in one of several optional formats specified by the agency [State Board of Education]. (c) The agency [board] may also enter into agreements providing for the acceptance, requisition, and distribution of special textbooks and instructional aids pursuant to 20 U.S.C. Section 101 et seq. for use by students enrolled in: (1) public schools; or (2) private nonprofit schools, if state funds, other than for administrative costs, are not involved. SECTION 38. Section 31.029, Education Code, is amended to read as follows: Sec. 31.029. BILINGUAL TEXTBOOKS. The agency [board] shall purchase or otherwise acquire textbooks for use in bilingual education classes. SECTION 39. Section 31.030, Education Code, is amended to read as follows: Sec. 31.030. USED TEXTBOOKS. The commissioner [State Board of Education] shall adopt rules to ensure that used textbooks sold to school districts and open-enrollment charter schools are not sample copies that contain factual errors. The rules may provide for the imposition of an administrative penalty in accordance with Section 31.151 against a seller of used textbooks who knowingly violates this section. SECTION 40. Sections 31.035(a), (b), and (f), Education Code, are amended to read as follows: (a) Notwithstanding any other provision of this subchapter, the agency [State Board of Education] may adopt supplemental textbooks that are not on the conforming or nonconforming list under Section 31.023. The agency [State Board of Education] may adopt a supplemental textbook under this section only if the textbook: (1) contains material covering one or more primary focal points or primary topics of a subject in the required curriculum under Section 28.002, as determined by the agency [State Board of Education]; (2) is not designed to serve as the sole textbook for a full course; (3) meets applicable physical specifications adopted by the agency [State Board of Education]; and (4) is free from factual errors. (b) The agency [State Board of Education] shall identify the essential knowledge and skills identified under Section 28.002 that are covered by a supplemental textbook adopted by the agency [board] under this section. (f) A school district or open-enrollment charter school that requisitions supplemental textbooks under Subsection (d)(2) shall certify to the agency that the supplemental textbooks, in combination with any other textbooks or supplemental textbooks used by the district or school, cover the essential knowledge and skills identified under Section 28.002 by the agency [State Board of Education] for the subject and grade level for which the district or school is requisitioning the supplemental textbooks. SECTION 41. Section 31.072(b), Education Code, is amended to read as follows: (b) Following a curriculum revision by the agency [State Board of Education], the commissioner shall require the revision of a state-developed open-source textbook relating to that curriculum. The commissioner may, at any time, require an additional revision of a state-developed open-source textbook or contract for ongoing revisions of a textbook for a period not to exceed the period under Section 31.022 for which a textbook for that subject and grade level may be adopted. The commissioner shall use a competitive process to request proposals to revise a state-developed open-source textbook under this subsection. SECTION 42. Section 31.073(b), Education Code, is amended to read as follows: (b) If a school district or open-enrollment charter school selects a state-developed open-source textbook instead of another textbook adopted under Subchapter B, the difference between the cost determined by the commissioner under Subsection (a) and the maximum price for a textbook in the same subject area, as determined [by the State Board of Education] under Section 31.025, shall be allocated as follows: (1) 50 percent of the amount shall be credited to the state textbook fund under Section 31.021 to be used for purposes of this subchapter; and (2) 50 percent of the amount shall be credited to the school district or open-enrollment charter school for use as provided by Section 31.1011(c). SECTION 43. Sections 31.101(a), (c-1), and (d), Education Code, are amended to read as follows: (a) Each year, during a period established by the agency [State Board of Education], the board of trustees of each school district and the governing body of each open-enrollment charter school shall: (1) for a subject in the foundation curriculum, notify the agency [State Board of Education] of the textbooks selected by the board of trustees or governing body for the following school year from among the textbooks on the appropriate conforming or nonconforming list, including the list adopted under Section 31.0231; or (2) for a subject in the enrichment curriculum: (A) notify the agency [State Board of Education] of each textbook selected by the board of trustees or governing body for the following school year from among the textbooks on the appropriate conforming or nonconforming list, including the list adopted under Section 31.0231; or (B) notify the agency [State Board of Education] that the board of trustees or governing body has selected a textbook that is not on the conforming or nonconforming list. (c-1) Notwithstanding any other provision of this chapter, a school district or open-enrollment charter school must purchase a classroom set of textbooks adopted by the agency [State Board of Education] under Section 31.023 or 31.035 for each subject and grade level in the foundation and enrichment curriculum. (d) For a textbook that is not on the conforming or nonconforming list, a school district or open-enrollment charter school must use the textbook for the period of the review and adoption cycle the agency [State Board of Education] has established for the subject and grade level for which the textbook is used. SECTION 44. Section 31.103(b), Education Code, is amended to read as follows: (b) A requisition for textbooks for the following school year shall be based on the maximum attendance reports under Subsection (a), plus an additional 10 percent, except as otherwise provided. A school district or open-enrollment charter school shall make a requisition for a textbook on the conforming or nonconforming list through the commissioner to the state depository designated by the publisher or as provided by commissioner [State Board of Education] rule, as applicable, not later than June 1 of each year. The designated state depository or, if the publisher or manufacturer does not have a designated textbook depository in this state under Section 31.151(a)(6)(B), the publisher or manufacturer shall fill a requisition approved by the agency at any other time in the case of an emergency. As made necessary by available funds, the commissioner shall reduce the additional percentage of attendance for which a district or school may requisition textbooks. The commissioner may, on application of a district or school that is experiencing high enrollment growth, increase the additional percentage of attendance for which the district or school may requisition textbooks. SECTION 45. Section 31.1031, Education Code, is amended to read as follows: Sec. 31.1031. SHORTAGE OF REQUISITIONED TEXTBOOKS. If a school district or open-enrollment charter school does not have a sufficient number of copies of a textbook used by the district or school for use during the following school year, and a sufficient number of additional copies will not be available from the depository or the publisher within the time specified by Section 31.151(a)(8), the district or school is entitled to: (1) be reimbursed from the state textbook fund, at a rate and in the manner provided by commissioner [State Board of Education] rule, for the purchase of a sufficient number of used adopted textbooks; or (2) return currently used textbooks to the commissioner in exchange for sufficient copies, if available, of other textbooks on the conforming or nonconforming list to be used during the following school year. SECTION 46. Sections 31.151(a), (b), and (c), Education Code, are amended to read as follows: (a) A publisher or manufacturer of textbooks: (1) shall furnish any textbook the publisher or manufacturer offers in this state, at a price that does not exceed the lowest price at which the publisher offers that textbook for adoption or sale to any state, public school, or school district in the United States; (2) shall automatically reduce the price of a textbook sold for use in a school district or open-enrollment charter school to the extent that the price is reduced elsewhere in the United States; (3) shall provide any textbook or ancillary item free of charge in this state to the same extent that the publisher or manufacturer provides the textbook or ancillary item free of charge to any state, public school, or school district in the United States; (4) shall guarantee that each copy of a textbook sold in this state is at least equal in quality to copies of that textbook sold elsewhere in the United States and is free from factual error; (5) may not become associated or connected with, directly or indirectly, any combination in restraint of trade in textbooks or enter into any understanding or combination to control prices or restrict competition in the sale of textbooks for use in this state; (6) shall: (A) maintain a depository in this state or arrange with a depository in this state to receive and fill orders for textbooks, other than open-source textbooks, on-line textbooks, or on-line textbook components, consistent with commissioner [State Board of Education] rules; or (B) deliver textbooks to a school district or open-enrollment charter school without a delivery charge to the school district, open-enrollment charter school, or state, if: (i) the publisher or manufacturer does not maintain or arrange with a depository in this state under Paragraph (A) and the publisher's or manufacturer's textbooks and related products are warehoused or otherwise stored less than 300 miles from a border of this state; or (ii) the textbooks are open-source textbooks, on-line textbooks, or on-line textbook components; (7) shall, at the time an order for textbooks is acknowledged, provide to school districts or open-enrollment charter schools an accurate shipping date for textbooks that are back-ordered; (8) shall guarantee delivery of textbooks at least 10 business days before the opening day of school of the year for which the textbooks are ordered if the textbooks are ordered by a date specified in the sales contract; and (9) shall submit to the agency [State Board of Education] an affidavit certifying any textbook the publisher or manufacturer offers in this state to be free of factual errors at the time the publisher executes the contract required by Section 31.026. (b) The commissioner [State Board of Education] may impose a reasonable administrative penalty against a publisher or manufacturer who knowingly violates Subsection (a). The commissioner [board] shall provide for a hearing to be held to determine whether a penalty is to be imposed and, if so, the amount of the penalty. The commissioner [board] shall base the amount of the penalty on: (1) the seriousness of the violation; (2) any history of a previous violation; (3) the amount necessary to deter a future violation; (4) any effort to correct the violation; and (5) any other matter justice requires. (c) A hearing under Subsection (b) shall be held according to rules adopted by the commissioner [State Board of Education]. SECTION 47. Section 31.201, Education Code, is amended to read as follows: Sec. 31.201. DISPOSITION OF TEXTBOOKS. (a) The commissioner[, with the approval of the State Board of Education,] may provide for the disposition of: (1) textbooks, other than electronic textbooks, that are no longer in acceptable condition to be used for instructional purposes; or (2) discontinued textbooks, other than electronic textbooks. (b) The commissioner, as provided by rules adopted by the commissioner [State Board of Education], shall make available on request copies of discontinued textbooks, other than electronic textbooks, for use in libraries maintained in municipal and county jails, facilities operated by the Texas Department of Criminal Justice for the imprisonment of individuals convicted of felonies other than state jail felonies, and other state agencies. (c) The commissioner [State Board of Education] shall adopt rules under which a school district or open-enrollment charter school may donate discontinued textbooks, other than electronic textbooks, to a student, to an adult education program, or to a nonprofit organization. SECTION 48. Section 32.001, Education Code, is amended to read as follows: Sec. 32.001. DEVELOPMENT OF LONG-RANGE PLAN. (a) The agency [State Board of Education] shall develop a long-range plan for: (1) acquiring and using technology in the public school system; (2) fostering professional development related to the use of technology for educators and others associated with child development; (3) fostering computer literacy among public school students so that [by the year 2000] each high school graduate in this state has computer-related skills that meet standards adopted by the commissioner [board]; and (4) identifying and, through regional education service centers, distributing information on emerging technology for use in the public schools. (b) The agency [State Board of Education] shall update as necessary the plan developed under Subsection (a). (c) The agency [State Board of Education], in coordination with [the Texas Higher Education Coordinating Board and] other public agencies and institutions the agency [State Board of Education] considers appropriate, shall propose legislation and funding necessary to implement the plan developed under Subsection (a). (d) In developing the plan, the agency shall [State Board of Education must] consider accessibility of technology to students with disabilities. SECTION 49. Sections 32.034(a), (c), (d), and (e), Education Code, are amended to read as follows: (a) The commissioner[, as provided by State Board of Education policy,] may enter into an interagency contract with a public institution of higher education or a consortium of public institutions of higher education in this state to sponsor a center for educational technology under this section. (c) The membership of the center shall consist of public school educators, regional education service centers, institutions of higher education, nonprofit organizations, and private sector representatives. The commissioner [State Board of Education] shall establish membership policies for the center. (d) The board of directors of the center is composed of the commissioner or the commissioner's representative and other persons [shall be] appointed by the commissioner, as follows [State Board of Education and shall consist of]: (1) representatives of the center, including members of the public education system; and (2) a representative of each sponsoring institution of higher education[; and [(3) the commissioner or the commissioner's representative]. (e) The board of directors shall: (1) employ a director for the center; (2) establish priorities for the center's activities; and (3) report annually on the operation, projects, and fiscal affairs of the center to the commissioner if the commissioner does not serve on the board and to [State Board of Education and] the membership of the center. SECTION 50. Sections 33.084(a) and (e), Education Code, are amended to read as follows: (a) The interscholastic league advisory council is composed of: (1) the commissioner [two members of the State Board of Education appointed by the chair of the board]; (2) a member of the house of representatives appointed by the speaker of the house; (3) a member of the senate appointed by the lieutenant governor; (4) two members of the legislative council of the University Interscholastic League appointed by the chairman of the council; (5) two public school board members appointed by the commissioner; and (6) four [three] members of the public appointed by the commissioner. (e) The advisory council shall review the rules of the University Interscholastic League and shall make recommendations relating to the rules to the governor, the legislature, the legislative council of the University Interscholastic League, and the commissioner [State Board of Education]. SECTION 51. Section 37.108(a), Education Code, is amended to read as follows: (a) Each school district or public junior college district shall adopt and implement a multihazard emergency operations plan for use in the district's facilities. The plan must address mitigation, preparedness, response, and recovery as defined by the commissioner [of education or commissioner of higher education] in conjunction with the governor's office of homeland security. The plan must provide for: (1) district employee training in responding to an emergency; (2) if the plan applies to a school district, mandatory school drills and exercises to prepare district students and employees for responding to an emergency; (3) measures to ensure coordination with the Department of State Health Services and local emergency management agencies, law enforcement, health departments, and fire departments in the event of an emergency; and (4) the implementation of a safety and security audit as required by Subsection (b). SECTION 52. Sections 37.203(a) and (b), Education Code, are amended to read as follows: (a) The center is advised by a board of directors composed of: (1) the attorney general, or the attorney general's designee; (2) the commissioner, or the commissioner's designee; (3) the executive director of the Texas Juvenile Probation Commission, or the executive director's designee; (4) the executive commissioner of the Texas Youth Commission, or the executive commissioner's designee; (5) the commissioner of the Department of State Health Services, or the commissioner's designee; and (6) [the commissioner of higher education, or the commissioner's designee; and [(7)] the following members appointed by the governor with the advice and consent of the senate: (A) a juvenile court judge; (B) a member of a school district's board of trustees; (C) an administrator of a public primary school; (D) an administrator of a public secondary school; (E) a member of the state parent-teacher association; (F) a teacher from a public primary or secondary school; (G) a public school superintendent who is a member of the Texas Association of School Administrators; (H) a school district police officer or a peace officer whose primary duty consists of working in a public school; [and] (I) an administrator of a public institution of higher education; and (J) two members of the public. (b) Members of the board appointed under Subsection (a)(6) [(a)(7)] serve staggered two-year terms, with the terms of the members described by Subsections (a)(6)(A)-(E) [(a)(7)(A)-(E)] expiring on February 1 of each odd-numbered year and the terms of the members described by Subsections (a)(6)(F)-(J) [(a)(7)(F)-(I)] expiring on February 1 of each even-numbered year. A member may serve more than one term. SECTION 53. Section 37.216(a), Education Code, is amended to read as follows: (a) Not later than January 1 of each odd-numbered year, the board shall provide a report to the governor, the legislature, [the State Board of Education,] and the agency. SECTION 54. Section 37.2161(a), Education Code, is amended to read as follows: (a) The center shall periodically provide a school safety and security progress report to the governor, the legislature, [the State Board of Education,] and the agency that contains current information regarding school safety and security in the school districts and public junior college districts of this state based on: (1) elements of each district's multihazard emergency operations plan required by Section 37.108(a); (2) elements of each district's safety and security audit required by Section 37.108(b); and (3) any other report required to be submitted to the center. SECTION 55. Sections 39.023(c), (c-3), (e), (g), (h), and (l), Education Code, are amended to read as follows: (c) The agency shall also adopt end-of-course assessment instruments for secondary-level courses in Algebra I, Algebra II, geometry, biology, chemistry, physics, English I, English II, English III, world geography, world history, and United States history. The Algebra I, Algebra II, and geometry end-of-course assessment instruments must be administered with the aid of technology. A school district shall comply with commissioner [State Board of Education] rules regarding administration of the assessment instruments listed in this subsection and shall adopt a policy that requires a student's performance on an end-of-course assessment instrument for a course listed in this subsection in which the student is enrolled to account for 15 percent of the student's final grade for the course. If a student retakes an end-of-course assessment instrument for a course listed in this subsection, as provided by Section 39.025, a school district is not required to use the student's performance on the subsequent administration or administrations of the assessment instrument to determine the student's final grade for the course. If a student is in a special education program under Subchapter A, Chapter 29, the student's admission, review, and dismissal committee shall determine whether any allowable modification is necessary in administering to the student an assessment instrument required under this subsection. The agency [State Board of Education] shall administer the assessment instruments. The agency [State Board of Education] shall adopt a schedule for the administration of end-of-course assessment instruments that complies with the requirements of Subsection (c-3). Â (c-3) In adopting a schedule for the administration of assessment instruments under this section, the agency [State Board of Education] shall require: (1) assessment instruments administered under Subsection (a) to be administered on a schedule so that the first assessment instrument is administered at least two weeks later than the date on which the first assessment instrument was administered under Subsection (a) during the 2006-2007 school year; and (2) the spring administration of end-of-course assessment instruments under Subsection (c) to occur in each school district not earlier than the first full week in May, except that the spring administration of the end-of-course assessment instruments in English I, English II, and English III must be permitted to occur at an earlier date. (e) Under rules adopted by the commissioner [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 commissioner [board] rule, each question that is no longer being field-tested and that was not used to compute a student's score. (g) The agency [State Board of Education] may adopt one appropriate, nationally recognized, norm-referenced assessment instrument in reading and mathematics to be administered to a selected sample of students in the spring. If adopted, a norm-referenced assessment instrument must be a secured test. The state may pay the costs of purchasing and scoring the adopted assessment instrument and of distributing the results of the adopted instrument to the school districts. A district that administers the norm-referenced test adopted under this subsection shall report the results to the agency in a manner prescribed by the commissioner. (h) The agency shall notify school districts and campuses of the results of assessment instruments administered under this section at the earliest possible date [determined by the State Board of Education] but not later than the beginning of the subsequent school year. (l) The commissioner [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 who are of limited English proficiency, as defined by Section 29.052, whose primary language is Spanish, and who are not otherwise exempt from the administration of an assessment instrument under Section 39.027(a)(1) or (2). 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 56. Sections 39.0233(a) and (c), Education Code, are amended to read as follows: (a) The agency[, in coordination with the Texas Higher Education Coordinating Board,] shall adopt a series of questions to be included in an end-of-course assessment instrument administered under Section 39.023(c) to be used for purposes of Section 51.3062. The questions adopted under this subsection must be developed in a manner consistent with any college readiness standards adopted under Sections 39.233 [39.113] and 51.3062. (c) The commissioner [State Board of Education] shall establish a level of performance on the questions adopted under this section that indicates a student's college readiness. A student's performance on the questions adopted under this section must be evaluated separately from the student's performance on the remainder of the assessment instrument. A student's performance on a question adopted under this section may not be used to determine the student's performance on the assessment instrument for purposes of Section 39.023 or 39.025. The commissioner shall adopt rules concerning the reporting of a student's performance on the questions adopted under this section. SECTION 57. Sections 39.024(a), (b), (c), (e), (f), (g), and (h), Education Code, are amended to read as follows: (a) In this section, "college readiness" means the level of preparation a student must attain in English language arts and mathematics courses to enroll and succeed, without remediation, in an entry-level general education course for credit in that same content area for a baccalaureate degree or associate degree program at: (1) a general academic teaching institution, as defined by Section 61.003, other than a research institution, as categorized under the agency's [Texas Higher Education Coordinating Board's] accountability system; or (2) a postsecondary educational institution that primarily offers associate degrees or certificates or credentials other than baccalaureate or advanced degrees. (b) The agency [and the Texas Higher Education Coordinating Board] shall ensure that the Algebra II and English III end-of-course assessment instruments required under Section 39.023(c) are developed to be capable of, beginning with the 2011-2012 school year, measuring college readiness. (c) The [Before the beginning of the 2011-2012 school year, the] agency[, in collaboration with the Texas Higher Education Coordinating Board,] shall gather data and conduct research studies to substantiate the correlation between a certain level of performance by students on the Algebra II and English III end-of-course assessment instruments and college readiness. (e) Based on the results of the studies conducted under Subsection (c), the commissioner [of education and the commissioner of higher education] shall establish student performance standards for the Algebra II and English III end-of-course assessment instruments indicating that students have attained college readiness. (f) The agency[, in collaboration with the Texas Higher Education Coordinating Board,] shall conduct research studies similar to the studies conducted under Subsection (c) for the appropriate science and social studies end-of-course assessment instruments. If the commissioner [of education, in collaboration with the commissioner of higher education,] determines that the research studies conducted under this subsection substantiate a correlation between a certain level of performance by students on science and social studies end-of-course assessment instruments and college readiness, the commissioner [of education, in collaboration with the commissioner of higher education], as soon as practicable, may establish student performance standards for the science and social studies end-of-course assessment instruments indicating that students have attained college readiness. (g) The agency[, in collaboration with the Texas Higher Education Coordinating Board,] shall continue to gather data to perform studies as provided under Subsections (c) and (f) at least once every three years. (h) The agency [and the Texas Higher Education Coordinating Board] shall periodically review the college readiness performance standards established under this section and compare the performance standards to performance standards established nationally and internationally for comparable assessment instruments. Following each review, the agency [and the Texas Higher Education Coordinating Board] shall deliver to the lieutenant governor, the speaker of the house of representatives, and the clerks of the standing committees of the senate and the house of representatives with primary jurisdiction over public education and higher education a report on the results of the review indicating whether the college readiness performance standards established under this section are sufficiently rigorous to prepare students in this state to compete academically with students nationally and internationally. If the agency determines [and the Texas Higher Education Coordinating Board determine] that the college readiness performance standards established under this section are not sufficiently rigorous, the agency [and the Texas Higher Education Coordinating Board] shall recommend changes to the college readiness performance standards. SECTION 58. Section 39.0241(a-1), Education Code, is amended to read as follows: (a-1) The commissioner [of education, in collaboration with the commissioner of higher education,] shall determine the level of performance necessary to indicate college readiness, as defined by Section 39.024(a). SECTION 59. Section 39.0242(d), Education Code, is amended to read as follows: (d) The agency shall continue to gather data and perform studies as provided under this section at least once every three years. If the data do not support the correlation between student performance standards and college readiness, the commissioner [of education, in collaboration with the commissioner of higher education,] shall revise the standard of performance considered to be satisfactory. SECTION 60. Section 39.026, Education Code, is amended to read as follows: Sec. 39.026. LOCAL OPTION. In addition to the assessment instruments adopted and administered by the agency [and administered by the State Board of Education], a school district may adopt and administer criterion-referenced or norm-referenced assessment instruments, or both, at any grade level. A norm-referenced assessment instrument adopted under this section must be economical, nationally recognized, and state-approved. SECTION 61. Section 39.052(b), Education Code, is amended to read as follows: (b) In determining the accreditation status of a school district, the commissioner: (1) shall evaluate and consider: (A) performance on student achievement indicators described by Section 39.053(c); and (B) performance under the financial accountability rating system developed under Subchapter D; and (2) may evaluate and consider: (A) the district's compliance with statutory requirements and requirements imposed by rule of the commissioner [or State Board of Education] under specific statutory authority that relate to: (i) reporting data through the Public Education Information Management System (PEIMS) or other reports required by state or federal law or court order; (ii) the high school graduation requirements under Section 28.025; or (iii) an item listed under Sections 7.056(e)(3)(C)-(I) that applies to the district; (B) the effectiveness of the district's programs for special populations; and (C) the effectiveness of the district's career and technology program. SECTION 62. Section 39.263(c), Education Code, is amended to read as follows: (c) The commissioner shall select annually schools and districts qualified to receive successful school awards for their performance and report the selections to the governor [and the State Board of Education]. SECTION 63. Section 39.307, Education Code, is amended to read as follows: 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; (B) [(C)] the board of trustees of a school district in the evaluation of the performance of the superintendent of the district; and (C) [(D)] the superintendent in the evaluation of the performance of the district's campus principals. SECTION 64. Sections 39.331(d) and (e), Education Code, are amended to read as follows: (d) Subsections (a) and (b) apply to any report required by statute that the agency [or the State Board of Education] must prepare and deliver to the governor, lieutenant governor, speaker of the house of representatives, or legislature. (e) Unless otherwise provided by law, any report required by statute that the agency [or the State Board of Education] must prepare and deliver to the governor, lieutenant governor, speaker of the house of representatives, or legislature may be combined, at the discretion of the commissioner, with a report required by this subchapter. SECTION 65. Section 39.332(b)(23), Education Code, is amended to read as follows: (23) The report must contain any additional information considered important by the commissioner [or the State Board of Education]. SECTION 66. Section 39.402(b), Education Code, is amended to read as follows: (b) The council is composed of: (1) the commissioner [of education]; and (2) [the commissioner of higher education; and [(3)] seven members appointed by the commissioner [of education]. SECTION 67. Section 39.404, Education Code, is amended to read as follows: Sec. 39.404. PRESIDING OFFICER. The commissioner [of education] serves as the presiding officer of the council. SECTION 68. Section 39.406(a), Education Code, is amended to read as follows: (a) Except as otherwise provided, staff members of the agency[, with the assistance of the Texas Higher Education Coordinating Board,] shall provide administrative support for the council. SECTION 69. Sections 39.407(b) and (c), Education Code, are amended to read as follows: (b) The commissioner [of education and the commissioner of higher education] shall adopt rules as necessary to administer the strategic plan adopted by the council under this section. (c) The commissioner [of education or the commissioner of higher education] may not, in a manner inconsistent with the strategic plan, spend money, award a grant, or enter into a contract in connection with a program relating to high school success and completion. SECTION 70. Section 39.409, Education Code, is amended to read as follows: Sec. 39.409. PRIVATE FOUNDATION PARTNERSHIPS. (a) The commissioner [of education or the commissioner of higher education, as appropriate,] and the council may coordinate with private foundations that have made a substantial investment in the improvement of high schools in this state to maximize the impact of public and private investments. (b) A private foundation is not required to obtain the approval of the [appropriate] commissioner or the council under Subsection (a) before allocating resources to a school in this state. SECTION 71. Sections 39.411(a), (c), and (d), Education Code, are amended to read as follows: (a) Based on the strategic plan adopted under this subchapter, the council shall make recommendations to the commissioner [of education or the commissioner of higher education, as applicable,] for the use of federal and state funds appropriated or received for high school reform, college readiness, and dropout prevention, including grants awarded under Sections 21.4511, 21.4541, 29.095, 29.096, 29.097, 29.098 [29.095-29.098], 29.917, [29.919,] and 39.235. (c) The commissioner [of education or the commissioner of higher education, as applicable,] shall consider the council's recommendations and based on those recommendations may award grants to school districts, open-enrollment charter schools, institutions of higher education, regional education service centers, and nonprofit organizations to meet the goals of the council's strategic plan. (d) The commissioner [of education or the commissioner of higher education, as applicable]: (1) is not required under this section to allocate funds to a program or initiative recommended by the council; and (2) may not initiate a program funded under this section that does not conform to the recommended use of funds as provided under Subsections (a) and (b). SECTION 72. Sections 39.413, 39.414, and 39.416, Education Code, are amended to read as follows: Sec. 39.413. FUNDING FOR CERTAIN PROGRAMS. (a) From funds appropriated, the commissioner [Texas Higher Education Coordinating Board] shall allocate $8.75 million each year to establish mathematics, science, and technology teacher preparation academies under Section 61.0766, [provide funding to the commissioner of education to] implement and administer the program under Section 29.098, and award grants under Section 61.0762(a)(3). (b) The agency [Texas Higher Education Coordinating Board] shall establish mathematics, science, and technology teacher preparation academies under Section 61.0766, [provide funding to the commissioner of education to] implement and administer the program under Section 29.098, and award grants under Section 61.0762(a)(3) in a manner consistent with the goals of this subchapter and the goals in "Closing the Gaps," the state's master plan for higher education. Sec. 39.414. PRIVATE FUNDING. The commissioner [of education or the commissioner of higher education, as appropriate,] may accept gifts, grants, or donations to fund a grant administered under this subchapter. Sec. 39.416. RULES. The commissioner [of education and the commissioner of higher education] shall adopt rules as necessary to administer this subchapter and any programs under the authority of the commissioner [of education or the commissioner of higher education] and the council under this subchapter. SECTION 73. Section 42.004, Education Code, is amended to read as follows: Sec. 42.004. ADMINISTRATION OF THE PROGRAM. The commissioner, in accordance with the rules of the commissioner [State Board of Education], shall take such action and require such reports consistent with this chapter as may be necessary to implement and administer the Foundation School Program. SECTION 74. Sections 51.403(d) and (e), Education Code, are amended to read as follows: (d) Each institution shall file with its governing board and the Texas Education Agency [coordinating board] a small class report, excluding individual instruction courses, indicating department, course number, title of course, and the name of the instructor. "Small classes," for the purpose of this report, are undergraduate-level courses with less than 10 registrations, and graduate-level courses with less than 5 registrations. No small classes shall be offered in any institution except as authorized by the appropriate governing board, within the guidelines established by the commissioner of education [Coordinating Board]. (e) Under guidelines established by the commissioner of education [Coordinating Board, Texas College and University System, and the State Board of Education], postsecondary institutions shall report student performance during the first year enrolled after graduation from high school to the high school or junior college last attended. This report shall include[, but not be limited to,] appropriate student test scores, a description of developmental courses required, and the student's grade point average. Appropriate safeguards for student privacy shall be included in the rules for implementation of this subsection. SECTION 75. Sections 51.605(a), (b), and (f), Education Code, are amended to read as follows: (a) The commissioner shall allocate the fund in accordance with guidelines adopted by the commissioner [State Board of Education]. Funding shall be allocated in proportion to the percentage of women and underrepresented minority group students participating in eligible programs. The guidelines must ensure that programs approved for funding: (1) use professional volunteers at each level of instruction; (2) require parental involvement; (3) coordinate with public school preparation for scientific and mathematical careers; (4) coordinate with postsecondary educational institutions; (5) involve organizations of women and minority group members; (6) provide demonstrated professional leadership in educational activities for women and minority group members; and (7) are compatible with state and federal laws governing education. (b) The commissioner shall allocate the fund as follows: (1) the commissioner shall first allocate available funds to provide to each eligible program an amount equal to, at most, 50 percent of the amount of contributions the program received during the preceding fiscal year, as certified by the chief executive officer of the institution applying for the funds and verified by the commissioner; (2) after all grants have been made under Subdivision (1) of this subsection for which applications have been received by a date set by rule of the commissioner [board], the commissioner may allocate funds for the establishment or continued operation of eligible programs that have not received contributions; and (3) the commissioner may allocate any amount remaining in the fund on January 1 of each year among the institutions receiving grants under Subdivision (1) of this subsection in proportion to each program's share of the total amount allocated under that subdivision. (f) The commissioner [State Board of Education] shall adopt rules establishing procedures by which an entity must apply for funding and account for any funds received. SECTION 76. Section 51.606(b), Education Code, is amended to read as follows: (b) The commissioner [coordinating board] shall determine on an annual basis which groups meet the requirements set out in Subsection (a)(2) [Subdivision (2) of Subsection (a) of this section and shall certify that determination to the commissioner of education]. SECTION 77. Section 51.752(g), Education Code, is amended to read as follows: (g) The committee shall report to the Legislative Budget Board at least once a year. The committee shall also report to the governor, the commissioner of education [State Board of Education, the Texas Higher Education Coordinating Board], and the legislature before the convening of each regular session. SECTION 78. Section 51.807, Education Code, is amended to read as follows: Sec. 51.807. RULEMAKING. (a) The commissioner of education [Texas Higher Education Coordinating Board] may adopt rules relating to the operation of admissions programs under this subchapter, including rules relating to the identification of eligible students. (b) The commissioner of education [Texas Higher Education Coordinating Board, after consulting with the Texas Education Agency,] by rule shall establish standards for determining for purposes of this subchapter: (1) whether a private high school is accredited by a generally recognized accrediting organization; and (2) whether a person completed a high school curriculum that is equivalent in content and rigor to the curriculum requirements established under Section 28.025 for the recommended or advanced high school program. SECTION 79. Sections 51.916(a) and (b), Education Code, are amended to read as follows: (a) From funds appropriated for that purpose, the Texas Education Agency [Coordinating Board, Texas College and University System,] may make grants to institutions of higher education for the purpose of supporting research in teaching, primary and secondary curricula, learning, and early childhood education. (b) Grants shall be awarded on a competitive basis according to standards adopted by rule of the commissioner of education [board]. In making grants, the agency [board] shall consider encouraging the development of research centers at particular institutions of higher education. SECTION 80. Sections 51.968(d) and (f), Education Code, are amended to read as follows: (d) Each institution of higher education shall report to the Texas Education Agency [coordinating board] the institution's policy adopted under this section and shall include a copy of the policy with the institution's undergraduate student application materials, including application materials available on the institution's Internet website. (f) The [coordinating board, in consultation with the] Texas Education Agency, shall: (1) identify correlations between the subject matter and content of courses offered by each institution of higher education and the subject matter and content of courses and examinations in the International Baccalaureate Diploma Program, the Advanced Placement Program, and the College-Level Examination Program; and (2) make that information available to the public on the agency's [coordinating board's] Internet website. SECTION 81. Section 54.211(b), Education Code, as amended by Chapters 45 (S.B. 43) and 1372 (S.B. 939), Acts of the 81st Legislature, Regular Session, 2009, is reenacted and amended to read as follows: (b) The Texas Education Agency [and the Texas Higher Education Coordinating Board] shall develop outreach programs to ensure that students in the conservatorship of the Department of Family and Protective Services and in grades 9-12 are aware of the availability of the exemption from the payment of tuition and fees provided by this section. SECTION 82. Section 54.2111(b), Education Code, is amended to read as follows: (b) The Texas Education Agency [and the Texas Higher Education Coordinating Board] shall develop outreach programs to ensure that eligible [adopted] students in grades 9-12 [formerly in foster or other residential care] are aware of the availability of the exemption from the payment of tuition and fees provided by this section. SECTION 83. Section 56.207, Education Code, is amended to read as follows: Sec. 56.207. PAYMENT OF STATE CREDIT. (a) At least once each year, [the coordinating board shall submit a report to] the commissioner of education shall prepare a report that includes: (1) the name of each student who used the state credit under this subchapter during the period covered by the report; (2) the school district from which each student graduated from high school; and (3) the amount of the state credit used by each student during the period covered by the report. (b) The [On receipt of a report from the coordinating board under Subsection (a), the] commissioner of education shall distribute to each eligible institution of higher education [transfer to the coordinating board], from funds appropriated for the Foundation School Program, an amount sufficient to pay each eligible institution [of higher education] the amount of state credit for tuition or tuition and mandatory fees, as applicable, that is applied by the institution during the period covered by the report. [(c) The coordinating board shall distribute the appropriate amount of funds to each eligible institution when the board receives the funds under Subsection (b).] SECTION 84. Sections 56.304(a), (e-2), and (h), 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 commissioner of education [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 recommended or advanced high school 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 commissioner of education [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 commissioner of education [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 commissioner of education [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 commissioner of education [coordinating board] under this subchapter. (e-2) The commissioner of education [coordinating board] shall adopt rules to provide a person who is otherwise eligible to receive a TEXAS grant additional time during which the person may receive a TEXAS grant in the event of a hardship or other good cause shown that prevents the person from continuing the person's enrollment during the period the person would otherwise have been eligible to receive a TEXAS grant, including a showing of a severe illness or other debilitating condition or that the person is or was responsible for the care of a sick, injured, or needy person. (h) The commissioner of education [coordinating board] shall adopt rules to allow a person who is otherwise eligible to receive a TEXAS grant, in the event of a hardship or for other good cause shown, including a showing of a severe illness or other debilitating condition that may affect the person's academic performance or that the person is responsible for the care of a sick, injured, or needy person and that the person's provision of care may affect the person's academic performance, to receive a TEXAS grant while enrolled in a number of semester credit hours that is less than the number of semester credit hours required under Subsection (a)(5). The commissioner of education [coordinating board] may not allow a person to receive a TEXAS grant while enrolled in fewer than six semester credit hours. SECTION 85. Sections 56.353(b) and (c), Education Code, are amended to read as follows: (b) The commissioner of education [coordinating board] in awarding repayment assistance shall give priority to applicants who demonstrate financial need. (c) If the money available for loan repayment assistance in a period for which assistance is awarded is insufficient to provide assistance to all eligible applicants described by Subsection (b), the commissioner of education [coordinating board] shall establish priorities for awarding repayment assistance to address the most critical teacher shortages described by Subsection (a). SECTION 86. Sections 56.357(a), (d), (e), (f), (g), (h), and (j), Education Code, are amended to read as follows: (a) The Texas Education Agency [coordinating board] shall establish a program under which the agency [coordinating board] awards grants to assist persons seeking educator certification through alternative educator certification programs as provided by this section. (d) In selecting applicants to receive grants under the program, the Texas Education Agency [coordinating board] shall consider: (1) the financial resources of an applicant; (2) the efficient use of the money available for grants; (3) the opportunity of applicants from all regions of this state to receive grants; and (4) any other factor the agency [coordinating board] considers appropriate to further the purposes of this subchapter. (e) The amount of a grant under the program is equal to two times the current amount of a TEXAS grant under Subchapter M for a student enrolled in a general academic teaching institution. The Texas Education Agency [coordinating board] may pay the amount of the grant in installments during the period in which the person is enrolled in the person's alternative educator certification program. (f) The person must begin fulfilling the person's teaching obligation not later than the 18th month after the person completes the alternative educator certification program, unless the Texas Education Agency [coordinating board] for good cause grants the person additional time to begin fulfilling the teaching obligation. The person must complete the teaching obligation not later than the sixth year after the date the person begins to fulfill the teaching obligation. The agency [coordinating board] shall grant a person additional time to complete the teaching obligation for good cause. (g) The Texas Education Agency [coordinating board] shall cancel a person's teaching obligation if the agency [coordinating board] determines that the person: (1) has become permanently disabled so that the person is not able to teach; or (2) has died. (h) The Texas Education Agency [coordinating board] shall require a person who receives a grant to sign a promissory note acknowledging the conditional nature of the grant and promising to repay the amount of the grant plus applicable interest and reasonable collection costs if the person does not satisfy the applicable conditions of the grant. The agency [coordinating board] shall determine the terms of the promissory note. (j) A person receiving a grant is considered to have failed to satisfy the conditions of the grant, and the grant automatically becomes a loan, if the person, without good cause as determined by the Texas Education Agency [coordinating board], fails to: (1) remain enrolled in or to make steady progress in the alternative educator certification program for which the grant was made or, with the approval of the agency [coordinating board], in another alternative educator certification program; or (2) become certified as a classroom teacher not later than the 18th month after the date the person completes the alternative educator certification program. SECTION 87. Section 57.21(b), Education Code, is amended to read as follows: (b) The corporation shall coordinate its efforts under this section with other entities, including [the Texas Higher Education Coordinating Board,] the Texas Education Agency, professional, educational, and civic associations, postsecondary educational institutions that participate in the corporation's programs, and lender advisory committees established under Section 57.461. SECTION 88. Sections 61.076(b), (c), (d), and (g), Education Code, are amended to read as follows: (b) The P-16 Council is composed of the commissioner of education, [the commissioner of higher education,] the executive director of the Texas Workforce Commission, [the executive director of the State Board for Educator Certification,] and the commissioner of assistive and rehabilitative services. The [commissioner of higher education and the] commissioner of education serves [shall serve] as chair [co-chairs] of the council. (c)Â The chair [co-chairs] may appoint four [three] additional members who are education professionals, agency representatives, business representatives, or other members of the community. Members appointed to the council under this subsection serve two-year terms expiring February 1 of each odd-numbered year. (d) The council shall meet at least once each calendar quarter and may hold other meetings as necessary at the call of the chair [co-chairs]. Each member of the council or the member's designee shall make a report of the council's activities at least twice annually to the governing body of the member's agency, except that [the commissioner of education or that commissioner's designee shall report to the State Board of Education and] the commissioner of assistive and rehabilitative services or that commissioner's designee shall report to the executive commissioner of the Health and Human Services Commission. (g) The council shall advise the Texas Education Agency when it acts as the State Board for Career and Technology Education [board and the State Board of Education] on the coordination of postsecondary career and technology activities, career and technology teacher education programs offered or proposed to be offered in the colleges and universities of this state, and other relevant matters, including: (1) coordinating postsecondary career and technology education and the articulation between postsecondary career and technology education and secondary career and technology education; (2) [facilitating the transfer of responsibilities for the administration of postsecondary career and technology education from the State Board of Education to the board in accordance with Section 111(a)(I) of the Carl D. Perkins Vocational Education Act (Pub. L. No. 98-524); [(3)] advising the Texas Education Agency [State Board of Education], when it acts as the State Board for Career and Technology Education, on the following: (A) the transfer of federal funds [to the board] for allotment to eligible public postsecondary institutions of higher education; (B) the career and technology education funding for projects and institutions [as determined by the board] when the State Board for Career and Technology Education is required by federal law to endorse those determinations; (C) the development and updating of the state plan for career and technology education and the evaluation of programs, services, and activities of postsecondary career and technology education and amendments to the state plan for career and technology education as may relate to postsecondary education; (D) other matters related to postsecondary career and technology education; and (E) the coordination of curricula, instructional programs, research, and other functions as appropriate, including school-to-work and school-to-college transition programs and professional development activities; and (3) [(4)] advising the Texas Workforce Investment Council on educational policy issues related to workforce preparation. SECTION 89. Sections 61.0761(a), (b), (d), and (e), Education Code, are amended to read as follows: (a) The P-16 Council established under Section 61.076 shall recommend to the commissioner of education [and the board] a college readiness and success strategic action plan to increase student success and decrease the number of students enrolling in developmental course work in institutions of higher education. The plan must include: (1) definitions[, as determined by the P-16 Council in coordination with the State Board of Education,] of the standards and expectations for college readiness that address the knowledge and skills expected of students to perform successfully in entry-level courses offered at institutions of higher education; (2) a description of the components of a P-16 individualized graduation plan sufficient to prepare students for college success; (3) the manner in which the Texas Education Agency should provide model curricula for use as a reference tool by school district employees; (4) recommendations to the Texas Education Agency[, the State Board of Education, and the board] regarding strategies for decreasing the number of students enrolling in developmental course work at institutions of higher education; (5) recommendations to the State Board for Educator Certification regarding changes to educator certification and professional development requirements that contribute to the ability of public school teachers to prepare students for higher education; and (6) any other elements that the commissioner of education suggests [and the board suggest] for inclusion in the plan. (b) The commissioner of education [and the board] shall adopt the college readiness and success strategic action plan recommended by the P-16 Council if the commissioner determines [of education and the board determine] that the plan meets the requirements of this section. (d) Not later than December 1 of each even-numbered year, the commissioner of education [and the board] shall submit a report to the governor, the lieutenant governor, the speaker of the house of representatives, each member of the Legislative Budget Board, and the members of the standing committees of the senate and house of representatives with primary jurisdiction over the public school system and higher education system describing progress in implementing the college readiness and success strategic action plan. (e) The commissioner of education [and the board] shall adopt rules necessary to implement this section. SECTION 90. Sections 61.0776(a), (b), (c), and (f), Education Code, are amended to read as follows: (a) The Texas Education Agency [board], in cooperation with public and private or independent institutions of higher education, [the Texas Education Agency,] public school counselors, representatives of student financial aid offices of any institutions, regional education service centers, and the Texas Guaranteed Student Loan Corporation, shall develop a center for financial aid information. The center shall disseminate information about financial aid opportunities and procedures, including information about different types of financial aid available, eligibility requirements, and procedures for applying for financial aid. The center shall also provide information to prospective students about the Teach for Texas grant program. The information must emphasize the importance of teaching as a profession. (b) To assist the Texas Education Agency [board] in developing information provided by the center, the commissioner of education [board] shall create and appoint an advisory committee that consists of experts in financial aid administration, public school counselors, and other persons who can provide insight into the informational needs of students. (c) The commissioner of education [board] may designate an institution of higher education or other entity with appropriate facilities and resources to operate or house the center. If the commissioner of education [board] designates a public nonprofit entity created by the legislature to operate or house the center, the commissioner [board] may reimburse the entity from money appropriated for that purpose for the costs incurred by the entity in carrying out the activities of the center under this section. (f) The Texas Education Agency [board], in cooperation with the entities specified by Subsection (a) and the advisory committee established by Subsection (b), shall develop a comprehensive financial aid training program for public school counselors, employees of student financial aid offices of public and private or independent institutions of higher education, members of appropriate community-based organizations, and other appropriate persons. The commissioner of education [board] may adopt rules as necessary to administer the training program. The agency [board] shall design the training program to: (1) use the information required by Subsection (e) and any other information necessary to carry out this subdivision: (A) to inform persons receiving the training concerning: (i) the opportunities available to students for obtaining financial aid, including eligibility requirements; and (ii) the procedures for obtaining financial aid; and (B) to provide sufficient and accessible detail to enable the persons receiving the training to provide timely and consistent answers to the questions of students and their parents, conservators, or guardians concerning the opportunities and procedures; (2) teach methods to enable the persons receiving the training to effectively communicate financial aid information to students and their parents, conservators, or guardians; (3) support and promote the dissemination of financial aid information to students and their parents, conservators, or guardians throughout local areas; and (4) publicize the training and make the training easily available to public school counselors and other appropriate persons throughout this state. SECTION 91. Sections 61.702(a) and (c), Education Code, are amended to read as follows: (a) To be eligible to receive repayment assistance for classroom teachers, a person must apply to the Texas Education Agency [board] and must: (1) have completed at least one year of employment as a full-time classroom teacher at the preschool, primary, or secondary level in a public school in this state in an area or field of acute teacher shortage as designated by the commissioner of education; and (2) be employed as a full-time classroom teacher at the preschool, primary, or secondary level in a public school in this state in an area or field described by Subdivision (1). (c) The Texas Education Agency [board] shall give priority in granting repayment assistance for classroom teachers to a person who received repayment assistance for classroom teachers for the preceding school year. The priority terminates if the person does not apply for or is not eligible for that assistance. In extraordinary circumstances, the agency [board] may allow a person to maintain the priority after one or more years in which the person is unable to teach as a classroom teacher. SECTION 92. Section 61.784, Education Code, is amended to read as follows: Sec. 61.784. COORDINATION. The Texas Education Agency [board] may establish an interagency task force on international studies and cultural exchange, coordinated by the academy, to develop long-range goals designed to enhance foreign language and international studies and to expand educational and cultural exchange. If the [board establishes the] task force is established, then in addition to other persons chosen for the task force by the academy, the academy shall invite the governor, the commissioner of education, [the commissioner of higher education,] the executive director of the Texas Economic Development and Tourism Office [Texas Department of Commerce], and the executive director of [the Texas Committee for the] Humanities Texas to serve on the task force or to designate a representative to serve on the task force. The academy also shall invite the lieutenant governor to designate a member of the senate to serve on the task force and shall invite the speaker of the house of representatives to designate a member of the house of representatives to serve on the task force. SECTION 93. Sections 61.810(a), (f), and (g), Education Code, are amended to read as follows: (a) The Texas partnership and scholarship program advisory council consists of: (1) [the commissioner of higher education and] the commissioner of education, who serves [serve] as an ex officio member [members]; (2) three members of the public appointed by the governor; (3) two members of the public appointed by the lieutenant governor; and (4) two members of the public appointed by the speaker of the house of representatives. (f) The advisory council shall: (1) review a summary of each application from an eligible entity for a grant to establish a partnership program and provide its recommendations to the Texas Education Agency [board] concerning those applications; (2) assist the agency [board] in evaluating each partnership program established under this subchapter; (3) advise the agency [board] concerning any rules adopted by the commissioner of education [board] under this subchapter; and (4) provide any other assistance to the agency [board] that the agency [board] considers necessary to administer this subchapter. (g) The Texas Education Agency [board] shall provide the advisory council with technical and clerical assistance at the request of the council. SECTION 94. Section 61.812, Education Code, is amended to read as follows: Sec. 61.812. ADOPTION AND DISTRIBUTION OF RULES. (a) The commissioner of education [board] may adopt reasonable rules, consistent with the purposes of this subchapter, to carry out and enforce the requirements expressed by this subchapter. (b) The [board shall distribute to the] Texas Education Agency shall distribute to[,] each public or private institution of higher education, each school district, and any other appropriate entity copies of all rules adopted under this subchapter. SECTION 95. 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 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 96. Section 61.854, Education Code, is amended to read as follows: Sec. 61.854. TECH-PREP CONSORTIUM ALLOTMENT. (a) In each fiscal year, [the board, as the agent of] the Texas Education Agency, or another state agency as required by federal law, shall allot the federal tech-prep implementation money this state receives to the regional tech-prep consortia for regional administration according to regionally developed plans designed to meet federal, state, and regional goals. The agency [board] shall allot the money to tech-prep consortia in accordance with a formula adopted by the commissioner of education [board], after a public hearing and in consultation with interested state entities and local consortia, that addresses the differing needs of the consortia due to urban or rural populations, special populations, number of tech-prep programs and students, and other factors determined by the board. (b) An eligible tech-prep consortium that desires assistance under this section must submit an application to the Texas Education Agency [board] on a form prescribed by the commissioner of education [board] for that purpose. The form must address the formula adopted by the commissioner [board] under Subsection (a). (c) If a tech-prep consortium has a completed application on file under Subsection (b), the Texas Education Agency or other appropriate agency [board] shall make a payment in the amount of the consortium's allotment under Subsection (a) to the consortium's fiscal agent. SECTION 97. Sections 61.855(a) and (d), Education Code, are amended to read as follows: (a) From amounts made available under Section 61.854, the Texas Education Agency, or other state agency as required by federal law [board], in accordance with this subchapter and with a formula adopted by the commissioner of education [board], shall award grants to tech-prep consortia for tech-prep programs described by Subsection (d). (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: Â (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 recommended high school program adopted [by the State Board of Education] under Section 28.025 [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 career [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 98. Section 61.861(a), Education Code, is amended to read as follows: (a) The [commissioner of higher education and the] commissioner of education, in consultation with the comptroller and the Texas Workforce Commission, may award a grant in an amount not to exceed $1 million to an institution of higher education to develop advanced mathematics and science courses to prepare high school students for employment in a high-demand occupation. The [commissioner of higher education, the] commissioner of education, the comptroller, and the Texas Workforce Commission shall jointly determine what is considered a high-demand occupation for purposes of this subchapter. SECTION 99. Section 61.862, Education Code, is amended to read as follows: Sec. 61.862. GRANT APPLICATION CRITERIA. The [commissioner of higher education and the] commissioner of education, in consultation with the comptroller and the Texas Workforce Commission, shall establish application criteria for a grant under this subchapter and in making an award shall give priority to courses that: (1) will prepare students for high-demand, high-wage, and high-skill occupations and further postsecondary study; (2) may be transferred as college credit to multiple institutions of higher education; and (3) are developed as part of a sequence of courses that includes statewide availability of the instructional materials and training for the courses at a nominal cost to public educational institutions in this state. SECTION 100. Section 61.864, Education Code, is amended to read as follows: Sec. 61.864. REVIEW OF COURSES. Courses for which a grant is awarded under this subchapter shall be reviewed by [the commissioner of higher education and] the commissioner of education, in consultation with the comptroller and the Texas Workforce Commission, once every four years to determine whether the course: (1) is being used by public educational institutions in this state; (2) prepares high school students with the skills necessary for employment in the high-demand occupation and further postsecondary study; and (3) satisfies a mathematics or science requirement for the recommended or advanced high school program as determined under Section 28.025. SECTION 101. Section 105.302(b), Education Code, is amended to read as follows: (b) Each of the following shall appoint one member to serve on the advisory board: (1) the commissioner of education [chairman of the State Board of Education]; (2) [the commissioner of higher education; [(3)] the president of the Texas Association of School Administrators; (3) [(4)] the president of the Texas Association for the Gifted and Talented; (4) [(5)] the governor; (5) [(6)] the lieutenant governor; and (6) [(7)] the speaker of the Texas House of Representatives. SECTION 102. Section 130.090(d), Education Code, is amended to read as follows: (d) For instances when state funding is provided to both a school district and a public junior college for a student enrolled in courses offered by a junior college under Subsection (a), the commissioner of education [and the commissioner of higher education] shall [jointly] develop a mechanism to identify and eliminate duplication of state funding. SECTION 103. Section 161.02, Education Code, is amended to read as follows: Sec. 161.02. TEXAS REPRESENTATIVES. The Texas membership to the Educational Commission of the States shall be the governor or the governor's [his] designated representative and six citizens of the state, including the state commissioner of education [and the state commissioner of higher education], who shall be appointed and serve at the pleasure of the governor. These seven members shall officially represent Texas on the Education Commission of the States. SECTION 104. Article VII, Section 162.002, Education Code, is amended to read as follows: ARTICLE VII. GRADUATION In order to facilitate the on-time graduation of children of military families, states and local education agencies shall incorporate the following procedures: A. Waiver requirements--Local education agency administrative officials shall waive specific courses required for graduation if similar coursework has been satisfactorily completed in another local education agency or shall provide reasonable justification for denial. Should a waiver not be granted to a student who would qualify to graduate from the sending school, the local education agency shall provide an alternative means of acquiring required coursework so that graduation may occur on time. B. Exit exams--States shall accept: (1) exit or end-of-course exams required for graduation from the sending state; or (2) national norm-referenced achievement tests; or (3) alternative testing, in lieu of testing requirements for graduation in the receiving state. In the event the above alternatives cannot be accommodated by the receiving state for a student transferring in his or her senior year, then the provisions of Article VII, Section C, shall apply. C. Transfers during senior year--Should a military student transferring at the beginning or during his or her senior year be ineligible to graduate from the receiving local education agency after all alternatives have been considered, the sending and receiving local education agencies shall ensure the receipt of a diploma from the sending local education agency, if the student meets the graduation requirements of the sending local education agency. In the event that one of the states in question is not a member of this compact, the member state shall use best efforts to facilitate the on-time graduation of the student in accordance with Sections A and B of this article. The Texas commissioner of education shall adopt a passing standard on one or more national norm-referenced achievement tests for purposes of permitting a student to whom this compact applies to meet that standard as a substitute for completing a specific course or achieving a score on an assessment instrument otherwise required by this state for graduation. Each passing standard must be at least as rigorous as the applicable requirement otherwise imposed by this state for graduation, and be consistent with college readiness standards adopted under Section 28.008, Texas Education Code. [Before adopting or revising a passing standard, the commissioner of education must consider any comments submitted by the Texas Higher Education Coordinating Board or the State Board of Education.] A passing standard adopted by the commissioner of education is available only for a student who enrolls in a public school in this state for the first time after completing the ninth grade or who reenrolls in a public school in this state at or above the 10th grade level after an absence of at least two years from the public schools of this state. Each passing standard in effect when a student first enrolls in a public high school in this state remains applicable to the student for the duration of the student's high school enrollment, regardless of any subsequent revision of the standard. The commissioner of education may adopt rules as necessary to implement the commissioner's duties and authority under this article of the compact. The Texas Education Agency [Higher Education Coordinating Board] shall monitor the postsecondary educational performance in this state of students permitted to graduate in accordance with passing standards adopted by the commissioner of education for purposes of this compact. Based on the educational performance of those students in private and public institutions, the agency [coordinating board] shall make recommendations to the commissioner of education regarding appropriate revisions of the passing standards. SECTION 105. Section 449.052(b), Government Code, is amended to read as follows: (b) In implementing Subsection (a)(3), the commission may contact and cooperate with: (1) existing public or private Holocaust or other genocide resource organizations, including the United States Holocaust Memorial Museum; (2) other museums, centers, and organizations based in this state; (3) state agencies that carry out the educational functions of the state delegated under the Education Code[, including the Texas Education Agency and the Texas Higher Education Coordinating Board]; and (4) members of the United States Congress and of the legislature of this state. SECTION 106. Section 661.031(2), Government Code, is amended to read as follows: (2) "State employee" means an individual who is an appointed officer or employee of a state agency and who normally works 900 hours or more a year. The term includes: (A) an hourly employee; (B) a temporary employee; (C) a person employed by: (i) the Teacher Retirement System of Texas; (ii) the Texas Education Agency; (iii) [the Texas Higher Education Coordinating Board; [(iv)] the Texas School for the Blind and Visually Impaired; (iv) [(v)] the Texas School for the Deaf; (v) [(vi)] the Texas Youth Commission; (vi) [(vii)] the Windham School District; or (vii) [(viii)] the Department of Assistive and Rehabilitative Services; and (D) a classified, administrative, faculty, or professional employee of a state institution or agency of higher education who has accumulated vacation leave, sick leave, or both, during the employment. SECTION 107. Section 661.061(2), Government Code, is amended to read as follows: (2) "State employee" means an employee or appointed officer of a state agency. The term includes: (A) a full-time employee or officer; (B) a part-time employee or officer; (C) an hourly employee; (D) a temporary employee; (E) a person employed by: (i) the Teacher Retirement System of Texas; (ii) the Texas Education Agency; (iii) [the Texas Higher Education Coordinating Board; [(iv)] the Texas School for the Blind and Visually Impaired; (iv) [(v)] the Texas School for the Deaf; (v) [(vi)] the Texas Youth Commission; (vi) [(vii)] the Windham School District; or (vii) [(viii)] the Department of Assistive and Rehabilitative Services; or (F) a classified, administrative, faculty, or professional employee of a state institution or agency of higher education who has accumulated vacation leave during the employment. SECTION 108. Sections 830.101(a) and (b), Government Code, are amended to read as follows: (a) The governing board of each institution of higher education shall provide an opportunity to participate in the optional retirement program to all faculty members in the component institutions governed by the board. The [State Board of Education shall provide an opportunity to participate in the optional retirement program to the] commissioner of education may, as determined by the commissioner, participate in the optional retirement program. (b) Eligibility to participate in the optional retirement program is subject to rules adopted by the commissioner of education [Texas Higher Education Coordinating Board]. SECTION 109. Section 312.003(a), Labor Code, is amended to read as follows: (a) The commission shall establish the Interagency Literacy Council. The council is composed of nine members as follows: (1) a representative of the commission, appointed by the executive director; (2) two representatives [a representative] of the Texas Education Agency, appointed by the commissioner of education; and (3) [a representative of the Texas Higher Education Coordinating Board, appointed by the commissioner of higher education; and [(4)] six public members who are leaders of the business or nonprofit community engaged in literacy promotion efforts, appointed by the executive director of the commission. SECTION 110. Article 45.054(a), Code of Criminal Procedure, is amended to read as follows: (a) On a finding by a county, justice, or municipal court that an individual has committed an offense under Section 25.094, Education Code, the court has jurisdiction to enter an order that includes one or more of the following provisions requiring that: (1) the individual: (A) attend school without unexcused absences; (B) attend a preparatory class for the high school equivalency examination administered under Section 7.033 [7.111], Education Code, if the court determines that the individual is too old to do well in a formal classroom environment; or (C) if the individual is at least 16 years of age, take the high school equivalency examination administered under Section 7.033 [7.111], Education Code; (2) the individual attend a special program that the court determines to be in the best interest of the individual, including: (A) an alcohol and drug abuse program; (B) a rehabilitation program; (C) a counseling program, including self-improvement counseling; (D) a program that provides training in self-esteem and leadership; (E) a work and job skills training program; (F) a program that provides training in parenting, including parental responsibility; (G) a program that provides training in manners; (H) a program that provides training in violence avoidance; (I) a program that provides sensitivity training; and (J) a program that provides training in advocacy and mentoring; (3) the individual and the individual's parent attend a class for students at risk of dropping out of school designed for both the individual and the individual's parent; (4) the individual complete reasonable community service requirements; or (5) for the total number of hours ordered by the court, the individual participate in a tutorial program covering the academic subjects in which the student is enrolled provided by the school the individual attends. SECTION 111. Section 29.087(d), Education Code, is amended to read as follows: (d) A student is eligible to participate in a program authorized by this section if: (1) the student has been ordered by a court under Article 45.054, Code of Criminal Procedure, [as added by Chapter 1514, Acts of the 77th Legislature, Regular Session, 2001,] or by the Texas Youth Commission to: (A) participate in a preparatory class for the high school equivalency examination; or (B) take the high school equivalency examination administered under Section 7.033 [7.111]; or (2) the following conditions are satisfied: (A) the student is at least 16 years of age at the beginning of the school year or semester; (B) the student is a student at risk of dropping out of school, as defined by Section 29.081; (C) the student and the student's parent or guardian agree in writing to the student's participation; (D) at least two school years have elapsed since the student first enrolled in ninth grade and the student has accumulated less than one third of the credits required to graduate under the minimum graduation requirements of the district or school; and (E) any other conditions specified by the commissioner. SECTION 112. Effective May 1, 2012, the following provisions of the Education Code are repealed: (1) Section 7.021(b)(14); (2) Section 7.055(b)(39); (3) Sections 7.102(b), (c), (e), and (f); (4) Section 28.008(g); (5) Section 28.009(b); (6) Section 39.023(o); (7) Section 51.602(2); (8) Section 51.916(c); (9) Section 56.304(g); (10) Section 61.0211; (11) Section 61.0761(c); and (12) Section 61.808. SECTION 113. (a) Effective May 1, 2012: (1) the Texas Higher Education Coordinating Board is abolished; (2) all functions and activities performed immediately before that date by the State Board of Education, other than functions and activities assigned to the State Board of Education by the constitution of this state, or by the Texas Higher Education Coordinating Board are transferred to the Texas Education Agency; (3) a rule, form, policy, procedure, or decision of the State Board of Education, other than a rule, form, policy, procedure, or decision relating to a function or activity assigned to the State Board of Education by the constitution of this state, or of the Texas Higher Education Coordinating Board continues in effect as a rule, form, policy, procedure, or decision of the Texas Education Agency and remains in effect until amended or replaced by the commissioner of education; (4) a rule of the State Board for Educator Certification approved by the State Board of Education remains in effect until amended or replaced as provided by law; (5) a reference in law or administrative rule to the State Board of Education or the Texas Higher Education Coordinating Board means the Texas Education Agency, other than a reference: (A) to the State Board of Education relating to a function or activity assigned to the board by the constitution of this state; or (B) under Section 86.22 or 133.006(b), Education Code, or another law similarly referring to a past action taken by the State Board of Education; (6) a reference in law or administrative rule to the commissioner of higher education means the commissioner of education; (7) all money, contracts, leases, rights, property, records, and bonds and other obligations of the State Board of Education or of the Texas Higher Education Coordinating Board are transferred to the Texas Education Agency, except that: (A) money or a contract, lease, right, property, record, or bond or other obligation relating to a function or activity assigned to the State Board of Education by the constitution of this state is not transferred; and (B) a contract under Section 12.112, Education Code, is transferred to the commissioner of education; (8) a court case, administrative proceeding, contract negotiation, or other proceeding involving the State Board of Education, other than a proceeding relating to a function or activity assigned to the State Board of Education by the constitution of this state, or involving the Texas Higher Education Coordinating Board is transferred without change in status to the Texas Education Agency, and the Texas Education Agency assumes, without a change in status, the position of the State Board of Education or the Texas Higher Education Coordinating Board, as applicable, in a negotiation or proceeding relating to an activity transferred by this Act to the Texas Education Agency to which the State Board of Education or the Texas Higher Education Coordinating Board, as applicable, is a party; (9) an employee of the State Board of Education, other than an employee whose duties relate solely or primarily to a function or activity assigned to the State Board of Education by the constitution of this state, or of the Texas Higher Education Coordinating Board becomes an employee of the Texas Education Agency; and (10) any unexpended and unobligated balance of money appropriated by the legislature for the State Board of Education, other than money appropriated to enable the State Board of Education to carry out a function or activity assigned by the constitution of this state, or for the Texas Higher Education Coordinating Board is transferred to the Texas Education Agency. (b) In the period beginning on January 1, 2012, and ending on April 30, 2012: (1) the State Board of Education and the Texas Higher Education Coordinating Board shall continue to perform functions and activities under the Education Code or other law as if the law had not been amended or repealed, as applicable, and the former law is continued in effect for that purpose; and (2) a person who is authorized or required by law to take an action relating to the State Board of Education, a member of the State Board of Education, the Texas Higher Education Coordinating Board, or a member of the coordinating board shall continue to take that action under the law as if the law had not been amended or repealed, as applicable, and the former law is continued in effect for that purpose. SECTION 114. Before May 1, 2012, the State Board of Education or the Texas Higher Education Coordinating Board, as applicable, may agree with the Texas Education Agency to transfer any property of the State Board of Education or the coordinating board, as applicable, to the Texas Education Agency to implement the transfer required by Section 113 of this Act. SECTION 115. Section 12.112, Education Code, as amended by this Act, applies only to the required signatories of a charter for an open-enrollment charter school in the case of a charter entered into on or after May 1, 2012. The required signatories of a charter for an open-enrollment charter school in the case of a charter entered into before May 1, 2012, are governed by the law in effect on the date the charter is entered into, and the former law is continued in effect for that purpose. SECTION 116. This Act does not affect the reference to the state board of education under Section 143.112(1)(A), Local Government Code, or a similar reference to the extent that the reference is to the state board of education of another state. SECTION 117. This Act takes effect January 1, 2012.