82S10126 VOO-D By: Eissler H.B. No. 8 A BILL TO BE ENTITLED AN ACT relating to flexibility for public schools to administer primary and secondary education efficiently. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Sections 12.133(b), (b-1), (c), and (d-1), Education Code, are amended to read as follows: (b) Each school year, using state funds received by the charter holder for that purpose under Subsection (d), a charter holder that participated in the program under Chapter 1579, Insurance Code, for the 2005-2006 school year shall provide employees of the charter holder, other than administrators, compensation in the form of annual salaries, incentives, or other compensation determined appropriate by the charter holder that results in an average compensation increase for classroom teachers, full-time librarians, full-time counselors, and full-time school nurses who are employed by the charter holder [and who would be entitled to a minimum salary under Section 21.402 if employed by a school district,] in an amount at least equal to $2,500. (b-1) Using state funds received by the charter holder for that purpose under Subsection (d-1), a charter holder that participated in the program under Chapter 1579, Insurance Code, for the 2005-2006 school year shall provide employees of the charter holder, other than administrators, compensation in the form of annual salaries, incentives, or other compensation determined appropriate by the charter holder that results in average compensation increases as follows: (1) for full-time employees other than full-time classroom teachers, full-time librarians, full-time counselors, and full-time nurses [employees who would be entitled to a minimum salary under Section 21.402 if employed by a school district], an average increase at least equal to $500; and (2) for part-time employees, an average increase at least equal to $250. (c) Each school year, using state funds received by the charter holder for that purpose under Subsection (e), a charter holder that did not participate in the program under Chapter 1579, Insurance Code, for the 2005-2006 school year shall provide employees of the charter holder, other than administrators, compensation in the form of annual salaries, incentives, or other compensation determined appropriate by the charter holder that results in an average compensation increase for classroom teachers, full-time librarians, full-time counselors, and full-time school nurses who are employed by the charter holder [and who would be entitled to a minimum salary under Section 21.402 if employed by a school district,] in an amount at least equal to $2,000. (d-1) In addition to any amounts to which a charter holder is entitled under this chapter, a charter holder that participated in the program under Chapter 1579, Insurance Code, for the 2005-2006 school year is entitled to state aid in an amount, as determined by the commissioner, equal to the sum of: (1) the product of $500 multiplied by the number of full-time employees other than full-time classroom teachers, full-time librarians, full-time counselors, and full-time nurses [employees who would be entitled to a minimum salary under Section 21.402 if employed by a school district]; and (2) the product of $250 multiplied by the number of part-time employees. SECTION 2. Section 19.007(f), Education Code, is amended to read as follows: (f) In addition to other amounts received by the district under this section, the district is entitled to state aid in an amount equal to the product of $2,000 multiplied by the number of classroom teachers, full-time librarians, full-time counselors certified under Subchapter B, Chapter 21, and full-time school nurses who are employed by the district [and who would be entitled to a minimum salary under Section 21.402 if employed by a school district operating under Chapter 11]. SECTION 3. Section 19.009(d-1), Education Code, is amended to read as follows: (d-1) Each school year, the district shall pay an amount at least equal to $2,000 to each classroom teacher, full-time librarian, full-time counselor certified under Subchapter B, Chapter 21, and full-time school nurse who is employed by the district [and who would be entitled to a minimum salary under Section 21.402 if employed by a school district operating under Chapter 11]. A payment under this section is in addition to wages the district would otherwise pay the employee during the school year. SECTION 4. Section 21.0031(b), Education Code, is amended to read as follows: (b) After an employee receives notice that the employee's contract is void under Subsection (a),[: [(1)] a school district may: (1) [(A)] terminate the employee; (2) [(B)] suspend the employee with or without pay; or (3) [(C)] retain the employee for the remainder of the school year on an at-will employment basis in a position other than classroom teacher at the employee's existing rate of pay or at a reduced rate[; and [(2) the employee is not entitled to the minimum salary prescribed by Section 21.402]. SECTION 5. Section 21.103(a), Education Code, is amended to read as follows: (a) The board of trustees of a school district may terminate the employment of a teacher employed under a probationary contract at the end of the contract period if in the board's judgment the best interests of the district will be served by terminating the employment. The board of trustees must give notice of its decision to terminate the employment to the teacher not later than the 15th [45th] day before the last day of instruction required under the contract. The notice must be delivered personally to the teacher or mailed by prepaid certified mail to the teacher's address of record with the district. Notice that is mailed in accordance with this subsection is considered given at the time of mailing. The board's decision is final and may not be appealed. SECTION 6. Subchapter C, Chapter 21, Education Code, is amended by adding Section 21.1041 to read as follows: Sec. 21.1041. HEARING UNDER PROBATIONARY CONTRACT. A teacher is entitled to: (1) a hearing as provided by Subchapter F, if the teacher is protesting proposed action under Section 21.104; or (2) a hearing in a manner provided under Section 21.207 for nonrenewal of a term contract or a hearing provided by Subchapter F, as determined by the board of trustees of the district, if the teacher is protesting proposed action to terminate a probationary contract before the end of the contract period on the basis of a financial exigency declared under Section 44.011 that requires a reduction in personnel. SECTION 7. Section 21.157, Education Code, is amended to read as follows: Sec. 21.157. NECESSARY REDUCTION OF PERSONNEL. A teacher employed under a continuing contract may be released at the end of a school year and the teacher's employment with the school district terminated at that time because of a necessary reduction of personnel by the school district[, with those reductions made in the reverse order of seniority in the specific teaching fields]. SECTION 8. Section 21.159(b), Education Code, is amended to read as follows: (b) A teacher who notifies the board of trustees within the time prescribed by Subsection (a) is entitled to: (1) a hearing as provided by Subchapter F, if the teacher is protesting proposed action under Section 21.156; or (2) a hearing in a manner provided under Section 21.207 for nonrenewal of a term contract or a hearing provided by Subchapter F, as determined by the board, if the teacher is protesting proposed action under Section 21.157 or proposed action to terminate a term contract at any time on the basis of a financial exigency declared under Section 44.011 that requires a reduction in personnel. SECTION 9. Section 21.206(a), Education Code, is amended to read as follows: (a) Not later than the 15th [45th] day before the last day of instruction in a school year, the board of trustees shall notify in writing each teacher whose contract is about to expire whether the board proposes to renew or not renew the contract. The notice must be delivered personally to the teacher or mailed by prepaid certified mail to the teacher's address of record with the district. Notice that is mailed in accordance with this subsection is considered given at the time of mailing. SECTION 10. Section 21.207, Education Code, is amended by adding Subsection (b-1) and amending Subsection (c) to read as follows: (b-1) The board of trustees may designate an attorney licensed to practice law in this state to hold the hearing on behalf of the board, to create a hearing record for the board's consideration and action, and to recommend an action to the board. The attorney serving as the board's designee may not be employed by a school district and neither the designee nor a law firm with which the designee is associated may be serving as an agent or representative of a school district, of a teacher in a dispute between a district and a teacher, or of an organization of school employees, school administrators, or school boards of trustees. Not later than the 15th day after the completion of the hearing under this subsection, the board's designee shall provide to the board a record of the hearing and the designee's recommendation of whether the contract should be renewed or not renewed. The board shall consider the record of the hearing and the designee's recommendation at the first board meeting for which notice can be posted in compliance with Chapter 551, Government Code, following the receipt of the record and recommendation from the board's designee, unless the parties agree in writing to a different date. At the meeting, the board shall consider the hearing record and the designee's recommendation and allow each party to present an oral argument to the board. The board by written policy may limit the amount of time for oral argument. The policy must provide equal time for each party. The board may obtain advice concerning legal matters from an attorney who has not been involved in the proceedings. The board may accept, reject, or modify the designee's recommendation. The board shall notify the teacher in writing of the board's decision not later than the 15th day after the date of the meeting. (c) At the hearing before the board or the board's designee, the teacher may: (1) be represented by a representative of the teacher's choice; (2) hear the evidence supporting the reason for nonrenewal; (3) cross-examine adverse witnesses; and (4) present evidence. SECTION 11. Section 21.211, Education Code, is amended by adding Subsection (a-1) to read as follows: (a-1) A teacher whose term contract is terminated under Subsection (a)(2) before the end of the contract period may request a hearing before the board of trustees or the board's designee as provided by Section 21.207 for a hearing on a proposed nonrenewal of a contract. A teacher who is aggrieved by a decision of the board or the board's designee at a hearing under this subsection may appeal to the commissioner for review of the decision in accordance with Subchapter G. The commissioner may not substitute the commissioner's judgment for that of the board of trustees or the board's designee unless the decision of the board or the board's designee was not supported by substantial evidence based on the record made at the hearing before the board or the board's designee. SECTION 12. Section 21.251, Education Code, is amended to read as follows: Sec. 21.251. APPLICABILITY. (a) This subchapter applies if a teacher requests a hearing after receiving notice of the proposed decision to: (1) terminate the teacher's continuing contract at any time, except as provided by Subsection (b)(3); (2) terminate the teacher's probationary or term contract before the end of the contract period, except as provided by Subsection (b)(3); or (3) suspend the teacher without pay. (b) This subchapter does not apply to: (1) a decision to terminate a teacher's employment at the end of a probationary contract; [or] (2) a decision not to renew a teacher's term contract, unless the board of trustees of the employing district has decided to use the process prescribed by this subchapter for that purpose; or (3) a decision, on the basis of a financial exigency declared under Section 44.011 that requires a reduction in personnel, to terminate a probationary or term contract before the end of the contract period or to terminate a continuing contract at any time, unless the board of trustees has decided to use the process prescribed by this subchapter for that purpose. SECTION 13. Section 21.4031, Education Code, is amended by amending Subsections (a) and (c) and adding Subsection (d) to read as follows: (a) In this section, "service[: [(1) "Salary schedule" means the minimum salary schedule under Section 21.402 or a comparable salary schedule used by a school district that specifies salary amounts based on an employee's level of experience. [(2) "Service] record" means a school district document that indicates the total years of service provided to the district by a classroom teacher, librarian, counselor, or nurse. (c) If a school district fails to provide an individual's service record as required by Subsection (b), the agency shall, to the extent that information is available to the agency, provide the employing school district with the information [sufficient to enable the district to determine proper placement of the individual on the district's salary schedule]. (d) The commissioner shall adopt rules for determining the experience as a classroom teacher, librarian, counselor, or nurse for a school district for which an individual is to be given credit for years of service for purposes of a service record. Each district shall maintain service records in accordance with commissioner rules adopted under this subsection. A district is not required to use commissioner rules adopted under this subsection in creating a local compensation plan under Section 21.4032. SECTION 14. Subchapter I, Chapter 21, Education Code, is amended by adding Section 21.4032 to read as follows: Sec. 21.4032. LOCAL COMPENSATION PLAN. (a) Except as provided under Subsection (g), a school district shall adopt a strategic plan for determining the compensation of the district's classroom teachers, full-time librarians, full-time counselors certified under Subchapter B, and full-time school nurses. A district's strategic compensation plan must be designed to recruit, reward, and retain effective classroom teachers, librarians, counselors, and nurses. (b) In developing a plan under Subsection (a), a school district shall consider including provisions under which the district may analyze any of several factors when determining compensation, including, as applicable: (1) demonstrated effectiveness in improving student achievement; (2) service as a mentor for other classroom teachers; (3) assumption of responsibilities in addition to regular duties; (4) results of performance evaluations; (5) whether a classroom teacher teaches in a subject area or position that is an acute shortage area as determined by the board of trustees of the district, if the classroom teacher meets state and federal qualifications to teach in that subject area or position; (6) whether a classroom teacher teaches a greater number of students than the average teacher in the district; (7) whether an employee teaches at or is assigned to a district school at which, as determined by the board of trustees of the district, the district has difficulty hiring or retaining classroom teachers or other professional employees; or (8) other job-related duties, as determined by the district. (c) A school district must adopt a process to consider input from classroom teachers, librarians, counselors, and nurses before adoption or revision of a plan under Subsection (a). (d) A plan adopted under Subsection (a) may provide for nonfinancial compensation, including flexible scheduling or additional leave, and compensation for employees who meet campus-wide goals. (e) A plan adopted under Subsection (a) may not consider athletic coaching or other athletic performance or achievement in determining compensation. Payment for service as a coach or with regard to extracurricular activities must be determined separately from the plan. (f) A plan adopted under Subsection (a) may not provide for an annual salary of a classroom teacher, full-time librarian, full-time counselor certified under Subchapter B, or full-time school nurse that is less than the minimum salary prescribed by Section 21.4033. (g) A school district that, before the effective date of a law requiring adoption of such a plan, adopted a strategic compensation plan to recruit, reward, and retain effective classroom teachers, librarians, counselors, and nurses is not required to adopt a strategic compensation plan under this section. SECTION 15. Subchapter I, Chapter 21, Education Code, is amended by adding Section 21.4033 to read as follows: Sec. 21.4033. MINIMUM SALARY FOR CERTAIN PROFESSIONAL STAFF. A school district shall pay each district classroom teacher, full-time librarian, full-time counselor certified under Subchapter B, or full-time school nurse not less than an annual salary of $27,320. SECTION 16. Section 21.4551(e), Education Code, is amended to read as follows: (e) From funds appropriated for that purpose, a teacher who attends a reading academy is entitled to receive a stipend in the amount determined by the commissioner. [A stipend received under this subsection is not considered in determining whether a district is paying the teacher the minimum monthly salary under Section 21.402.] SECTION 17. Section 22.107(a), Education Code, is amended to read as follows: (a) A school district shall pay each full-time district employee, other than an administrator or a classroom teacher, full-time librarian, full-time counselor certified under Subchapter B, Chapter 21, or full-time school nurse [an employee subject to the minimum salary schedule under Section 21.402], an amount at least equal to $500. SECTION 18. Section 25.112, Education Code, is amended by amending Subsection (d) and adding Subsections (d-1) and (e-1) to read as follows: (d) On application of a school district, the commissioner shall [may] except the district from the limit in Subsection (a), except as provided by Subsection (d-1) [if the commissioner finds the limit works an undue hardship on the district]. An exception expires at the end of the school year for which it is granted. (d-1) The commissioner may not grant an exception to a school district under Subsection (d) if the exception would: (1) allow the district to enroll more than 25 students in a class at a grade level subject to the limit in Subsection (a); (2) result in the district exceeding a district-wide average enrollment of 22 students in classes at grade levels subject to the limit under Subsection (a); or (3) negatively affect the education of students enrolled in the district or at a district campus, as applicable, as determined by the commissioner. (e-1) The board of trustees of a school district may adopt a policy authorizing the superintendent of the district to apply on behalf of the district, as needed, for an exception under Subsection (d). SECTION 19. Section 25.113(a), Education Code, is amended to read as follows: (a) A campus or district that is granted an exception under Section 25.112(d) from class size limits shall provide written notice of the exception to the parent of or person standing in parental relation to each student affected by the exception or shall post notice of the exception on the district's Internet website. The notice under this subsection must be in conspicuous bold or underlined print or type and: (1) specify the class for which an exception from the limit imposed by Section 25.112(a) was granted; (2) state the number of children in the class for which the exception was granted; and (3) unless posted on the district's Internet website, be included in a regular mailing or other communication from the campus or district, such as information sent home with students. SECTION 20. Section 28.0211(c), Education Code, is amended to read as follows: (c) Each time a student fails to perform satisfactorily on an assessment instrument specified under Subsection (a), the school district in which the student attends school shall provide to the student accelerated instruction in the applicable subject area, including reading instruction for a student who fails to perform satisfactorily on a reading assessment instrument. After a student fails to perform satisfactorily on an assessment instrument a second time, a grade placement committee shall be established to prescribe the accelerated instruction the district shall provide to the student before the student is administered the assessment instrument the third time. The grade placement committee shall be composed of the principal or the principal's designee, the student's parent or guardian, and the teacher of the subject of an assessment instrument on which the student failed to perform satisfactorily. The district shall notify the parent or guardian of the time and place for convening the grade placement committee and the purpose of the committee. [An accelerated instruction group administered by a school district under this section may not have a ratio of more than 10 students for each teacher.] SECTION 21. Section 30.022(f), Education Code, is amended to read as follows: (f) Before the beginning of each fiscal year, the board shall adopt a calendar for the school's operation that provides for at least[: [(1)] the minimum number of days of instruction required by Section 25.081[; and [(2) the minimum number of days of service required by Section 21.401]. SECTION 22. Section 30.052(f), Education Code, is amended to read as follows: (f) Before the beginning of each fiscal year, the board shall adopt a calendar for the school's operation that: (1) provides for at least[: [(1)] the minimum number of days of instruction required by Section 25.081; and (2) is consistent with the number of days of service in contracts between the school and classroom teachers [the minimum number of days of service required by Section 21.401]. SECTION 23. Section 42.2513(a), Education Code, is amended to read as follows: (a) A school district, including a school district that is otherwise ineligible for state aid under this chapter, is entitled to state aid in an amount equal to the sum of: (1) the product of $500 multiplied by the number of full-time district employees, other than administrators or classroom teachers, full-time librarians, full-time counselors certified under Subchapter B, Chapter 21, or full-time school nurses [employees subject to the minimum salary schedule under Section 21.402]; and (2) the product of $250 multiplied by the number of part-time district employees, other than administrators. SECTION 24. Subchapter A, Chapter 44, Education Code, is amended by adding Section 44.011 to read as follows: Sec. 44.011. FINANCIAL EXIGENCY. (a) The board of trustees of a school district may adopt a resolution declaring a financial exigency for the district. The declaration expires at the end of the fiscal year during which the declaration is made unless the board adopts a resolution before the end of the fiscal year declaring continuation of the financial exigency for the following fiscal year. (b) The board is not limited in the number of times the board may adopt a resolution declaring continuation of the financial exigency. (c) A board may terminate a financial exigency declaration at any time if the board considers it appropriate. (d) Each time the board adopts a resolution under this section, the board must notify the commissioner. The commissioner by rule shall prescribe the time and manner in which notice must be given to the commissioner under this subsection. SECTION 25. Section 825.405, Government Code, is amended by amending Subsections (a) and (b) and adding Subsection (j) to read as follows: (a) For members in a personnel position that would have been entitled to the minimum salary for certain school personnel under Section 21.402, Education Code, as that section existed on January 1, 2011, and for members who would have been entitled to the minimum salary for certain school personnel under former Section 16.056, Education Code, as that section existed on January 1, 1995, the employing district shall pay the state's contribution on the portion of the member's salary that exceeds the statutory minimum salary, based on the member's years of experience. (b) For purposes of this section,[: [(1)] the statutory minimum salary is the amount specified below [for certain school personnel under Section 21.402, Education Code, is the salary provided by that section] multiplied by the cost of education adjustment applicable under Section 42.102, Education Code, to the district in which the member is employed: Years of Monthly Years of Monthly Years of Monthly Experience Salary Experience Salary Experience Salary 0 2,732 0 2,732 0 2,732 1 2,791 1 2,791 1 2,791 2 2,849 2 2,849 2 2,849 3 2,908 3 2,908 3 2,908 4 3,032 4 3,032 4 3,032 5 3,156 5 3,156 5 3,156 6 3,280 6 3,280 6 3,280 7 3,395 7 3,395 7 3,395 8 3,504 8 3,504 8 3,504 9 3,607 9 3,607 9 3,607 10 3,704 10 3,704 10 3,704 11 3,796 11 3,796 11 3,796 12 3,884 12 3,884 12 3,884 13 3,965 13 3,965 13 3,965 14 4,043 14 4,043 14 4,043 15 4,116 15 4,116 15 4,116 16 4,186 16 4,186 16 4,186 17 4,251 17 4,251 17 4,251 18 4,313 18 4,313 18 4,313 19 4,372 19 4,372 19 4,372 20 & Over 4,427 20 & Over 4,427 20 & Over 4,427 [; and [(2) the statutory minimum salary for members who would have been entitled to the minimum salary for certain school personnel under former Section 16.056, Education Code, as that section existed on January 1, 1995, is a minimum salary computed in the same manner as the minimum salary for certain school personnel under Section 21.402, Education Code, multiplied by the cost of education adjustment applicable under Section 42.102, Education Code, to the district in which the member is employed.] (j) At least once every four years, the Legislative Budget Board shall review and make recommendations regarding revision of the portion of the state's contribution for which school districts are responsible under this section. SECTION 26. (a) The following provisions of the Education Code are repealed: (1) Section 21.401; (2) Section 21.402; (3) Section 21.403; (4) Section 21.410(l); (5) Section 21.411(l); (6) Section 21.412(l); (7) Section 21.413(l); (8) Section 29.0821(c); and (9) Section 30.102(b). (b) Section 823.404, Government Code, is repealed. SECTION 27. A plan adopted by a school district under Section 21.4032, Education Code, as added by this Act, may not be used by the district for determining employee compensation paid before the 2012-2013 school year. SECTION 28. This Act applies beginning with the 2011-2012 school year. SECTION 29. The repeal by this Act of Section 823.404, Government Code, does not affect equivalent membership service credit established under that section before the effective date of this Act. SECTION 30. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect on the 91st day after the last day of the legislative session. Years of Monthly Experience Salary 0 2,732 1 2,791 2 2,849 3 2,908 4 3,032 5 3,156 6 3,280 7 3,395 8 3,504 9 3,607 10 3,704 11 3,796 12 3,884 13 3,965 14 4,043 15 4,116 16 4,186 17 4,251 18 4,313 19 4,372 20 & Over 4,427