Texas 2013 - 83rd Regular

Texas Senate Bill SB218 Latest Draft

Bill / Senate Committee Report Version Filed 02/01/2025

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                            By: Patrick, Nichols S.B. No. 218
 (In the Senate - Filed March 7, 2013; March 12, 2013, read
 first time and referred to Committee on Education; April 22, 2013,
 reported adversely, with favorable Committee Substitute by the
 following vote:  Yeas 9, Nays 0; April 22, 2013, sent to printer.)
 COMMITTEE SUBSTITUTE FOR S.B. No. 218 By:  Patrick


 A BILL TO BE ENTITLED
 AN ACT
 relating to the continuation and functions of the Texas Education
 Agency and to the abolition of the State Board for Educator
 Certification and the transfer of its functions to the Texas
 Education Agency; changing the amounts of certain fees and
 providing for the ad valorem tax rate to be imposed after annexation
 of an insolvent or inoperative school district.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 SECTION 1.  Section 7.004, Education Code, is amended to
 read as follows:
 Sec. 7.004.  SUNSET PROVISION. The Texas Education Agency
 is subject to Chapter 325, Government Code (Texas Sunset Act).
 Unless continued in existence as provided by that chapter, the
 agency is abolished September 1, 2025 [2013].
 SECTION 2.  Subsection (a), Section 7.021, Education Code,
 is amended to read as follows:
 (a)  The agency shall:
 (1)  distribute state and federal funding to public
 schools and ensure the proper use of those funds;
 (2)  monitor public schools for compliance with state
 and federal guidelines, subject to the limitations in Section
 7.028;
 (3)  administer the statewide standardized testing
 program and accountability systems;
 (4)  provide assistance to and impose interventions and
 sanctions on public schools that consistently fail to meet state or
 federal accountability standards;
 (5)  provide support to the board in developing
 statewide curriculum standards, adopting instructional materials,
 managing the instructional materials allotment and distribution
 process, and carrying out duties related to the permanent school
 fund;
 (6)  collect, analyze, and make accessible a wide array
 of educational and financial data from public schools;
 (7)  ensure the quality of public school educators by
 certifying educators, regulating educator preparation programs,
 and taking enforcement action in cases of educator misconduct; and
 (8)  carry out any other duties imposed on the agency by
 the legislature consistent with the agency's appropriations and
 mission [perform the educational functions provided by Subsection
 (b)].
 SECTION 3.  Subchapter B, Chapter 7, Education Code, is
 amended by adding Section 7.0235 to read as follows:
 Sec. 7.0235.  RESTRICTIONS ON AGENCY EMPLOYMENT. (a)  In
 this section, "Texas trade association" means a cooperative and
 voluntarily joined statewide association of business or
 professional competitors in this state designed to assist its
 members and its industry or profession in dealing with mutual
 business or professional problems and in promoting their common
 interest.
 (b)  A person may not be an agency employee employed in a
 "bona fide executive, administrative, or professional capacity,"
 as that phrase is used for purposes of establishing an exemption to
 the overtime provisions of the federal Fair Labor Standards Act of
 1938 (29 U.S.C. Section 201 et seq.), if:
 (1)  the person is an officer, employee, or paid
 consultant of a Texas trade association in the field of elementary
 or secondary education; or
 (2)  the person's spouse is an officer, manager, or paid
 consultant of a Texas trade association in the field of elementary
 or secondary education.
 (c)  A person may not act as the general counsel to the
 commissioner or the agency if the person is required to register as
 a lobbyist under Chapter 305, Government Code, because of the
 person's activities for compensation on behalf of a profession
 related to the operation of the agency.
 SECTION 4.  Subchapter B, Chapter 7, Education Code, is
 amended by adding Sections 7.034, 7.035, and 7.036 to read as
 follows:
 Sec. 7.034.  PUBLIC INVOLVEMENT POLICY. The agency shall
 develop and implement a policy regarding public involvement with
 the agency.  The policy must:
 (1)  describe how the agency will proactively engage
 stakeholders;
 (2)  distinguish the purposes and appropriate uses of
 advisory committees and informal work groups, including by
 specifying that an informal work group:
 (A)  is not subject to Chapter 2110, Government
 Code; and
 (B)  must have a well-defined purpose and follow
 specific timelines for completing tasks;
 (3)  identify actions the agency will take that exceed
 the minimum open meetings requirements under Chapter 551,
 Government Code;
 (4)  include a strategy for providing updated
 information regarding advisory committees and issues of concern to
 stakeholders through the agency's Internet website; and
 (5)  describe how public input will affect agency
 decisions, including by providing information regarding the
 specific outcomes for all types of public input.
 Sec. 7.035.  COMPLAINTS. (a)  The agency shall maintain a
 system to promptly and efficiently act on complaints filed with the
 agency.  The agency shall maintain information about parties to the
 complaint, the subject matter of the complaint, a summary of the
 results of the review or investigation of the complaint, and its
 disposition.
 (b)  The agency shall make information available describing
 its procedures for complaint investigation and resolution.
 (c)  The agency shall periodically notify the complaint
 parties of the status of the complaint until final disposition.
 Sec. 7.036.  NEGOTIATED RULEMAKING; ALTERNATIVE DISPUTE
 RESOLUTION. (a)  The agency shall develop and implement a policy
 to encourage the use of:
 (1)  negotiated rulemaking procedures under Chapter
 2008, Government Code, for the adoption of agency rules; and
 (2)  appropriate alternative dispute resolution
 procedures under Chapter 2009, Government Code, to assist in the
 resolution of internal and external disputes under the agency's
 jurisdiction.
 (b)  The agency's procedures relating to alternative dispute
 resolution must conform, to the extent possible, to any model
 guidelines issued by the State Office of Administrative Hearings
 for the use of alternative dispute resolution by state agencies.
 (c)  The agency shall:
 (1)  coordinate the implementation of the policy
 adopted under Subsection (a);
 (2)  provide training as needed to implement the
 procedures for negotiated rulemaking or alternative dispute
 resolution; and
 (3)  collect data concerning the effectiveness of those
 procedures.
 SECTION 5.  Subsection (a), Section 7.055, Education Code,
 is amended to read as follows:
 (a)  The commissioner shall:
 (1)  serve as the educational leader of the state;
 (2)  serve as executive officer of the agency, with
 authority to:
 (A)  employ division heads and any other employees
 and clerks necessary to perform the duties of the agency;
 (B)  delegate ministerial and executive functions
 to agency staff;
 (C)  appoint advisory committees, in accordance
 with Chapter 2110, Government Code, as necessary to advise the
 commissioner in carrying out the duties and mission of the agency;
 and
 (D)  appoint an internal auditor for the agency;
 and
 (3)  carry out the duties imposed on the commissioner
 by the legislature [has the powers and duties provided by
 Subsection (b)].
 SECTION 6.  Subdivision (9), Subsection (b), Section 7.055,
 Education Code, is transferred to Subchapter A, Chapter 7,
 Education Code, redesignated as Section 7.011, Education Code, and
 amended to read as follows:
 Sec. 7.011.  TEXAS SCHOOL LAW BULLETIN.  [(9)]  The
 commissioner shall have a bulletin [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.  The
 commissioner [and] shall provide for the distribution of the
 bulletin [manual] as determined by the board.
 SECTION 7.  Subdivision (40), Subsection (b), Section 7.055,
 Education Code, is transferred to Subchapter A, Chapter 21,
 Education Code, redesignated as Section 21.009, Education Code, and
 amended to read as follows:
 Sec. 21.009.  SUSPENSION RELATING TO COLLECTIVE BARGAINING
 OR STRIKES.  [(40)]  The commissioner shall suspend the certificate
 of an educator or permit of a teacher who violates Chapter 617,
 Government Code.
 SECTION 8.  Subchapter C, Chapter 7, Education Code, is
 amended by adding Section 7.064 to read as follows:
 Sec. 7.064.  ADVISORY COMMITTEE RULES. (a)  The
 commissioner shall adopt rules, in compliance with Chapter 2110,
 Government Code, regarding an advisory committee that primarily
 functions to advise the commissioner or the agency, including rules
 governing an advisory committee's purpose, tasks, reporting
 requirements, and abolishment date.
 (b)  The commissioner may adopt rules under this section
 regarding an advisory committee's:
 (1)  size and quorum requirements;
 (2)  qualifications for membership, including
 experience requirements and geographic representation;
 (3)  appointment procedures;
 (4)  terms of service; and
 (5)  compliance with the requirements for open meetings
 under Chapter 551, Government Code.
 SECTION 9.  Section 12.102, Education Code, is amended to
 read as follows:
 Sec. 12.102.  AUTHORITY UNDER CHARTER. An open-enrollment
 charter school:
 (1)  shall provide instruction to students at one or
 more elementary or secondary grade levels as provided by the
 charter;
 (2)  is governed under the governing structure
 described by the charter;
 (3)  retains authority to operate under the charter:
 (A)  contingent on satisfactory student
 performance as provided by the charter in accordance with Section
 12.111; and
 (B)  to the extent authorized under Section
 12.1141; and
 (4)  does not have authority to impose taxes.
 SECTION 10.  Subsection (a), Section 12.111, Education Code,
 is amended to read as follows:
 (a)  Each charter granted under this subchapter must:
 (1)  describe the educational program to be offered,
 which must include the required curriculum as provided by Section
 28.002;
 (2)  specify that the period for which the initial
 charter or any charter renewal is valid is eight years;
 (3)  provide that continuation or renewal of the
 charter is contingent on:
 (A)  acceptable student performance on assessment
 instruments adopted under Subchapter B, Chapter 39, and [on]
 compliance with any accountability provision specified by the
 charter, by a deadline or at intervals specified by the charter; and
 (B)  a determination by the commissioner under
 Section 12.1141;
 (4)  establish the level of student performance that is
 considered acceptable for purposes of Subdivision (3)(A) [(3)];
 (5)  specify any basis, in addition to a basis
 specified by this subchapter, on which the charter may be placed on
 probation or revoked or on which renewal of the charter may be
 denied;
 (6)  prohibit discrimination in admission policy on the
 basis of sex, national origin, ethnicity, religion, disability,
 academic, artistic, or athletic ability, or the district the child
 would otherwise attend in accordance with this code, although the
 charter may:
 (A)  provide for the exclusion of a student who
 has a documented history of a criminal offense, a juvenile court
 adjudication, or discipline problems under Subchapter A, Chapter
 37; and
 (B)  provide for an admission policy that requires
 a student to demonstrate artistic ability if the school specializes
 in performing arts;
 (7)  specify the grade levels to be offered;
 (8)  describe the governing structure of the program,
 including:
 (A)  the officer positions designated;
 (B)  the manner in which officers are selected and
 removed from office;
 (C)  the manner in which members of the governing
 body of the school are selected and removed from office;
 (D)  the manner in which vacancies on that
 governing body are filled;
 (E)  the term for which members of that governing
 body serve; and
 (F)  whether the terms are to be staggered;
 (9)  specify the powers or duties of the governing body
 of the school that the governing body may delegate to an officer;
 (10)  specify the manner in which the school will
 distribute to parents information related to the qualifications of
 each professional employee of the program, including any
 professional or educational degree held by each employee, a
 statement of any certification under Subchapter B, Chapter 21, held
 by each employee, and any relevant experience of each employee;
 (11)  describe the process by which the person
 providing the program will adopt an annual budget;
 (12)  describe the manner in which an annual audit of
 the financial and programmatic operations of the program is to be
 conducted, including the manner in which the person providing the
 program will provide information necessary for the school district
 in which the program is located to participate, as required by this
 code or by State Board of Education rule, in the Public Education
 Information Management System (PEIMS);
 (13)  describe the facilities to be used;
 (14)  describe the geographical area served by the
 program; and
 (15)  specify any type of enrollment criteria to be
 used.
 SECTION 11.  Subsection (a), Section 12.1054, Education
 Code, is amended to read as follows:
 (a)  A member of the governing body of a charter holder, a
 member of the governing body of an open-enrollment charter school,
 or an officer of an open-enrollment charter school is considered to
 be a local public official for purposes of Chapter 171, Local
 Government Code.  For purposes of that chapter:
 (1)  a member of the governing body of a charter holder
 or a member of the governing body or officer of an open-enrollment
 charter school is considered to have a substantial interest in a
 business entity if a person related to the member or officer in the
 third degree by consanguinity or in the second degree by affinity,
 as determined under Chapter 573, Government Code, has a substantial
 interest in the business entity under Section 171.002, Local
 Government Code; and
 (2)  notwithstanding any provision of Subdivision (1),
 employees [Section 12.1054(1), an employee] of an open-enrollment
 charter school rated as acceptable [or higher] under Section 39.054
 for at least two of the preceding three school years may serve as
 members [a member] of the governing body of the charter holder or
 [of] the governing body of the school if the employees do not
 constitute a quorum of the governing body or any committee of the
 governing body; however, all members shall comply with the
 requirements of Sections 171.003-171.007, Local Government Code.
 SECTION 12.  Subchapter D, Chapter 12, Education Code, is
 amended by adding Section 12.1141 to read as follows:
 Sec. 12.1141.  RENEWAL OF CHARTER; REVIEW.  (a)  The charter
 of an open-enrollment charter school expires after eight years
 unless renewed by the commissioner.
 (b)  Under rules adopted by the commissioner, not later than
 the date on which a charter of an open-enrollment charter school
 expires under Subsection (a):
 (1)  a charter holder shall apply for a renewal of the
 charter; and
 (2)  the commissioner shall renew the charter for a
 term of eight years, deny renewal of the charter, or renew the
 charter on a probationary basis as provided by Subsection (e).
 (c)  The commissioner by rule shall establish a review
 process for the renewal of the charter of an open-enrollment
 charter school.  In establishing a review process for renewal under
 this section, the commissioner shall:
 (1)  adopt clear standards for renewal, including
 academic, financial, and governance standards and other relevant
 standards as determined by the commissioner; and
 (2)  provide a streamlined review process for an
 open-enrollment charter school with a history of high academic and
 financial performance and no interventions or sanctions, including
 clear standards for eligibility for this process.
 (d)  In conducting a review for renewal under this section,
 the commissioner:
 (1)  shall consider the extent to which an
 open-enrollment charter school has:
 (A)  met the standards established under
 Subsection (c)(1); and
 (B)  operated in compliance with the terms of the
 school's charter; and
 (2)  may request from the school any information
 necessary, as determined by the commissioner, to make a
 determination under this section.
 (e)  The commissioner may renew the charter of an
 open-enrollment charter school on a probationary basis for a period
 of one year.  The commissioner shall establish standards for
 improvement for a school renewed on a probationary basis.
 Following the probationary period under this subsection, the
 commissioner shall renew or deny renewal of the charter based on the
 school's performance on the standards for improvement, as
 determined by the commissioner.
 (f)  An open-enrollment charter school that intends to
 challenge a decision by the commissioner under this section must
 appeal the decision under the procedures provided under Section
 12.116.  An open-enrollment charter school may continue to operate
 pending an appeal under Section 12.116.
 (g)  Not later than September 1, 2014, the commissioner shall
 adopt rules for the implementation of this section.  The rules may
 modify the expiration date of one or more charters as necessary to
 equalize the agency's annual renewal workload during the transition
 to the renewal system required by this section.  This subsection
 expires October 1, 2014.
 SECTION 13.  Section 12.115, Education Code, is amended by
 adding Subsections (c) and (d) to read as follows:
 (c)  The commissioner shall establish separate performance
 standards for each of the actions authorized to be taken by the
 commissioner under Subsection (a).
 (d)  In making a determination under Subsection (a), the
 commissioner shall consider:
 (1)  the charter holder's history of violations of the
 charter or performance on accountability provisions prescribed by
 the charter;
 (2)  the number and severity of previous violations or
 unsatisfactory performance on accountability provisions;
 (3)  the charter holder's efforts to correct, and
 whether the charter holder corrected, previous violations or
 unsatisfactory performance on accountability provisions; and
 (4)  any other actions necessary to deter future
 violations or unsatisfactory performance on accountability
 provisions, as determined by the commissioner.
 SECTION 14.  The heading to Section 12.116, Education Code,
 is amended to read as follows:
 Sec. 12.116.  PROCEDURES [PROCEDURE] FOR MODIFICATION,
 PLACEMENT ON PROBATION, REVOCATION, OR DENIAL OF RENEWAL.
 SECTION 15.  Subsections (a) and (b), Section 12.116,
 Education Code, are amended to read as follows:
 (a)  The commissioner shall adopt procedures [a procedure]
 to be used for modifying, placing on probation, revoking, or
 denying renewal of the charter of an open-enrollment charter
 school.
 (b)  The procedures [procedure] adopted under Subsection (a)
 must provide an opportunity for a hearing to the charter holder and
 to parents and guardians of students in the school. A hearing under
 this subsection must be held at the facility at which the program is
 operated.
 SECTION 16.  Subsection (e), Section 12.1162, Education
 Code, is amended to read as follows:
 (e)  Immediately after a hearing under Subsection (d), the
 commissioner may [must] cease the action under Subsection (b) or
 impose additional sanctions as determined by the commissioner,
 including a sanction provision under Subchapter E, Chapter 39
 [initiate action under Section 12.116].
 SECTION 17.  Subchapter D, Chapter 12, Education Code, is
 amended by adding Sections 12.1165, 12.1166, and 12.1167 to read as
 follows:
 Sec. 12.1165.  REVOCATION REQUIRED FOR FAILURE TO MEET
 ACADEMIC PERFORMANCE OR FINANCIAL ACCOUNTABILITY STANDARDS.
 (a)  The commissioner shall revoke the charter of an
 open-enrollment charter school and order closure of all campuses
 and programs operated under the school's charter if the
 open-enrollment charter school:
 (1)  does not satisfy the academic performance
 standards under Section 39.053 or 39.054 for three consecutive
 years; or
 (2)  does not satisfy a financial accountability
 standard, as determined by the commissioner, for three consecutive
 years.
 (b)  Notwithstanding Section 12.116, a charter holder is not
 entitled to a hearing before the charter is revoked under this
 section.  A revocation order under this section is final and may not
 be appealed.
 (c)  Before the commissioner orders revocation under
 Subsection (a), the charter holder may challenge under Section
 39.151 an agency decision relating to an academic performance or
 financial accountability rating that affects the open-enrollment
 charter school.
 (d)  Not later than June 15 of each year, the agency shall
 provide to each open-enrollment charter school at risk of
 revocation of the school's charter under this section the school's
 academic performance and financial accountability ratings.
 (e)  The commissioner shall adopt rules to implement this
 section.
 (e-1)  The commissioner shall adopt initial rules under
 Subsection (e) not later than June 1, 2014.  This subsection expires
 July 1, 2014.
 Sec. 12.1166.  REVOCATION FOR INSOLVENCY. (a)  If the
 commissioner determines that an open-enrollment charter school
 does not have sufficient funding to complete the next school year,
 the commissioner may:
 (1)  before the beginning of the next school year or
 term, suspend the authority of all campuses under the school's
 charter to operate; and
 (2)  pursue revocation of the charter.
 (b)  Not later than the 10th day after the date the
 commissioner initiates action under Subsection (a), the
 commissioner shall provide the charter holder an opportunity for a
 hearing.
 (c)  If after a hearing under Subsection (b) the commissioner
 determines that the open-enrollment charter school does not have
 sufficient funding to complete the next school year, the
 commissioner must proceed with a revocation under this section.  If
 after a hearing under Subsection (b) the commissioner determines
 that the open-enrollment charter school does have sufficient
 funding to complete the next school year, the commissioner must
 cease the action under Subsection (a), but may impose sanctions as
 determined by the commissioner, including a sanction under
 Subchapter E, Chapter 39.
 (d)  An open-enrollment charter school that intends to
 challenge a decision by the commissioner under this section must
 appeal the decision under the procedures provided under Section
 12.116.  The authority of an open-enrollment charter school to
 operate shall remain suspended under Subsection (a) pending an
 appeal under Section 12.116.  The commissioner's decision following
 the appeal is final and may not be further appealed.
 (e)  The commissioner shall adopt rules for determining
 whether an open-enrollment charter school has sufficient funding to
 complete the next school year for purposes of this section.
 (e-1)  The commissioner shall adopt initial rules under
 Subsection (e) not later than March 1, 2014.  This subsection
 expires April 1, 2014.
 (f)  Chapter 2001, Government Code, does not apply to a
 hearing under this section.
 Sec. 12.1167.  STUDENT'S BEST INTEREST STANDARD.  In taking
 action under this subchapter, the commissioner may consider the
 best interest of an open-enrollment charter school's students.
 SECTION 18.  Section 12.118, Education Code, is amended to
 read as follows:
 Sec. 12.118.  EVALUATION OF OPEN-ENROLLMENT CHARTER
 SCHOOLS. (a)  The commissioner shall designate an impartial
 organization with experience in evaluating school choice programs
 to conduct an [annual] evaluation of open-enrollment charter
 schools once every four years.
 (b)  An evaluation under this section must include an
 evaluation of cost, performance, or [consideration of the following
 items before implementing the charter and after implementing the
 charter:
 [(1)     students' scores on assessment instruments
 administered under Subchapter B, Chapter 39;
 [(2)  student attendance;
 [(3)  students' grades;
 [(4)  incidents involving student discipline;
 [(5)  socioeconomic data on students' families;
 [(6)     parents' satisfaction with their children's
 schools; and
 [(7)  students' satisfaction with their schools.
 [(c)     The evaluation of open-enrollment charter schools must
 also include an evaluation of:
 [(1)     the costs of instruction, administration, and
 transportation incurred by open-enrollment charter schools;
 [(2)     the effect of open-enrollment charter schools on
 school districts and on teachers, students, and parents in those
 districts; and
 [(3)]  other issues, as determined by the commissioner.
 (c)  Not later than December 1 of each year in which an
 evaluation is conducted under Subsection (a), the agency shall
 submit a report to the legislature regarding the findings of an
 evaluation conducted under this section.  The report must include
 appropriate recommendations, as determined by the agency, to
 improve the performance and regulation of open-enrollment charter
 schools.
 (c-1)  The agency shall submit the first report required
 under Subsection (c) not later than December 1, 2016.  This
 subsection expires January 1, 2017.
 SECTION 19.  Section 12.120, Education Code, is amended by
 adding Subsections (c), (c-1), and (c-2) to read as follows:
 (c)  A person may not serve as a member of the governing body
 of a charter holder if the person is related to another member of
 the same governing body in the third degree by consanguinity or in
 the second degree by affinity, as determined under Chapter 573,
 Government Code.
 (c-1)  Not later than September 1, 2015, a member of a
 governing board of a charter holder with a relationship described
 by Subsection (c) must be replaced to comply with the requirements
 of that subsection.
 (c-2)  This subsection and Subsection (c-1) expire October
 1, 2015.
 SECTION 20.  Subchapter D, Chapter 12, Education Code, is
 amended by adding Section 12.1201 to read as follows:
 Sec. 12.1201.  MODIFICATION OF GOVERNANCE. (a)  If the
 commissioner determines that the governing body of a charter holder
 is not providing adequate oversight of an open-enrollment charter
 school and other sanctions have not been effective, the
 commissioner may reconstitute the governing body.
 (b)  In reconstituting the governing body of a charter holder
 under this section, the commissioner shall appoint members to the
 governing body.  In appointing members under this subsection the
 commissioner:
 (1)  shall consider:
 (A)  local input from community members and
 parents; and
 (B)  appropriate credentials and expertise for
 membership, including financial expertise, whether the person
 lives in the geographic area the charter holder serves, and whether
 the person is an educator; and
 (2)  may reappoint current members of the governing
 body.
 (c)  If a governing body of a charter holder subject to
 reconstitution under this section governs enterprises other than
 the open-enrollment charter school, the commissioner may require
 the charter holder to:
 (1)  create a new, single-purpose organization that is
 exempt from taxation under Section 501(c)(3), Internal Revenue Code
 of 1986, to govern the open-enrollment charter school; and
 (2)  surrender the charter to the commissioner for
 transfer to the organization created under Subdivision (1).
 (d)  The commissioner shall appoint the members of the
 governing body of an organization created under Subsection (c)(1).
 (e)  The authority granted to the commissioner under this
 section does not supersede the attorney general's authority over
 charitable organizations.
 (f)  The commissioner shall adopt rules necessary to
 implement this section.
 (f-1)  The commissioner shall adopt initial rules under
 Subsection (f) not later than September 1, 2014.  This subsection
 expires October 1, 2014.
 SECTION 21.  Subsection (a), Section 13.005, Education Code,
 is amended to read as follows:
 (a)  Except as provided by this section, Section 13.054, or
 [by] a local consolidation agreement under Section 13.158, the
 annexation of all or part of the territory of one district to
 another is effective on the first July 1 that is more than 30 days
 after the date of the order or ordinance accomplishing the
 annexation or of the declaration of the results of an election at
 which the transfer is approved.
 SECTION 22.  Subchapter B, Chapter 13, Education Code, is
 amended by adding Section 13.0521 to read as follows:
 Sec. 13.0521.  INSOLVENT OR INOPERATIVE DISTRICT. (a)  The
 board of trustees of a school district may notify the commissioner
 that the district is unable to complete the current or subsequent
 school year for financial or other reasons. On notification, the
 commissioner shall investigate the finances and other
 circumstances of the district. If the commissioner determines that
 the district is unable to complete the current or subsequent school
 year, the commissioner shall report the district to the
 commissioners court of each county that contains district territory
 for annexation as provided by this section.
 (b)  If a district has failed to operate school for 10 or more
 days of its regular school year, the commissioner shall notify the
 district that it is subject to annexation under this section. The
 commissioner shall require the district to submit a plan not later
 than the 10th day after the date the commissioner provides
 notification describing how the district will complete the current
 school year and subsequent school year. If the district fails to
 submit a plan, or if the commissioner, after evaluating the
 district's plan, determines that the district cannot reasonably be
 expected to complete the current or subsequent school year, the
 commissioner shall report the district to the commissioners court
 of each county that contains district territory for annexation as
 provided by this section.
 (c)  Each commissioners court by order shall annex district
 territory within the county to one or more other districts in the
 county or to a contiguous district in an adjacent county, provided
 that the commissioners court of the adjacent county consents to the
 annexation. An annexation under this section must occur in an open
 meeting with opportunity for public comment.
 (d)  If a commissioners court fails to order annexation of
 district territory on or before the 60th day after the date the
 commissioner reports the district to the commissioners court, the
 commissioner shall order annexation of the territory to one or more
 other districts. The commissioner may annex the territory to a
 district in the same county or to a contiguous district in an
 adjacent county.
 (e)  The commissioners court or the commissioner, as
 applicable, shall specify the effective date for the annexation,
 which may not be later than the first anniversary of the date of the
 annexation order. The order shall identify the district or
 districts required to serve students residing in the district to be
 annexed through any school year that begins before the effective
 date of the annexation. A district required to serve students under
 this subsection shall provide services equivalent to those provided
 to the district's other students and shall be entitled to funding
 for the attendance and transportation of students served as
 required by the order.
 (f)  The annexation order shall define by legal boundary
 description the resulting territory of each district to which
 territory is annexed and shall be recorded in the minutes of the
 commissioners court.
 (g)  The governing board of a district to which territory is
 annexed is the governing board for the resulting district.
 (h)  Title to real property of the annexed district vests in
 the district to which the property is annexed. Each district to
 which territory is annexed assumes and is liable for any portion of
 the annexed district's indebtedness that is allocated to the
 receiving district under Section 13.004.
 (i)  A district to which territory is annexed under this
 section is entitled to incentive aid under Section 13.281, as
 determined by the commissioner, as if the district were created
 through consolidation.
 (j)  The annexation order shall provide for taxation of the
 territory annexed during the year in which the annexation takes
 place. Unless a different rate is required by Section 3-b, Article
 VII, Texas Constitution, the order shall provide for a levy of a tax
 at a rate equal to the maintenance and operations tax rate of the
 district to which the territory is annexed, plus any required
 interest and sinking fund tax.
 (k)  Except as otherwise provided by this subsection, this
 section does not affect the authority of the board of trustees of a
 district subject to annexation under this section to pursue
 consolidation under Subchapter D of this chapter or Subchapter B,
 Chapter 41.  Actions authorized under this section may be taken
 pending the outcome of an election to consolidate districts under
 Subchapter D of this chapter or a decision to consolidate under
 Subchapter B, Chapter 41. An election to consolidate or a decision
 to consolidate under Subchapter B, Chapter 41, that occurs not
 later than the 60th day following the date an annexation order is
 entered under this section prevails over the annexation order if
 the proposition for consolidation is adopted in both districts,
 provided that a district required to serve students under
 Subsection (e) shall allow any student to attend school through the
 completion of the school year in which the effective date of a
 consolidation occurs. An election to consolidate or a decision to
 consolidate under Subchapter B, Chapter 41, that occurs later than
 the 60th day following the date an annexation order is entered under
 this section is void.
 (l)  Notwithstanding Section 13.009, a determination by the
 commissioner or a commissioners court under this section is final
 and may not be appealed.
 (m)  The commissioner may adopt rules to implement this
 section.
 SECTION 23.  Section 13.054, Education Code, is amended by
 amending Subsections (a), (b), and (d) and adding Subsection (h) to
 read as follows:
 (a)  The commissioner by order may annex to one or more
 [adjoining] districts a school district that has received an
 accreditation status of accredited-warned or accredited-probation,
 has failed to satisfy any standard under Section 39.054(e), or has
 failed to satisfy financial accountability standards as determined
 by commissioner rule [been rated as academically unacceptable] for
 a period of two consecutive years.
 (b)  The governing board of a district to which territory [of
 an academically unacceptable district] is annexed is the governing
 board for the new district.
 (d)  Title to the real property of the [academically
 unacceptable] district to be annexed vests in the district to which
 the property is annexed. Each district to which territory is
 annexed assumes and is liable for any portion of the [academically
 unacceptable district's] indebtedness of the district to be annexed
 that is allocated to the receiving district under Section 13.004.
 (h)  Notwithstanding Section 13.005, the commissioner may
 provide for an alternate effective date for an annexation under
 this section if the alternate date is in the best interest of
 students.
 SECTION 24.  Subsections (a), (b-1), and (f), Section
 21.0031, Education Code, are amended to read as follows:
 (a)  An employee's probationary, continuing, or term
 contract under this chapter is void if the employee:
 (1)  does not hold a valid certificate or permit issued
 by the commissioner [State Board for Educator Certification];
 (2)  fails to fulfill the requirements necessary to
 renew or extend the employee's temporary, probationary, or
 emergency certificate or any other certificate or permit issued
 under Subchapter B; or
 (3)  fails to comply with any requirement under
 Subchapter C, Chapter 22, if the failure results in suspension or
 revocation of the employee's certificate under Section
 22.0831(f)(2).
 (b-1)  A school district may not terminate or suspend under
 Subsection (b) an employee whose contract is void under Subsection
 (a)(1) or (2) because the employee failed to renew or extend the
 employee's certificate or permit if the employee:
 (1)  requests an extension from the commissioner [State
 Board for Educator Certification] to renew, extend, or otherwise
 validate the employee's certificate or permit; and
 (2)  not later than the 10th day after the date the
 contract is void, takes necessary measures to renew, extend, or
 otherwise validate the employee's certificate or permit, as
 determined by the commissioner [State Board for Educator
 Certification].
 (f)  For purposes of this section, a certificate or permit is
 not considered to have expired if:
 (1)  the employee has completed the requirements for
 renewal of the certificate or permit;
 (2)  the employee submitted the request for renewal
 prior to the expiration date; and
 (3)  the date the certificate or permit would have
 expired is before the date the commissioner [State Board for
 Educator Certification] takes action to approve the renewal of the
 certificate or permit.
 SECTION 25.  Subsections (a), (b), (c), (d), and (e),
 Section 21.004, Education Code, are amended to read as follows:
 (a)  To the extent that funds are available, the agency[, the
 State Board for Educator Certification,] and the Texas Higher
 Education Coordinating Board shall develop and implement programs
 to identify talented students and recruit those students and
 persons, including high school and undergraduate students,
 mid-career and retired professionals, honorably discharged and
 retired military personnel, and members of underrepresented gender
 and ethnic groups, into the teaching profession.
 (b)  From available funds, the agency[, the State Board for
 Educator Certification,] and the Texas Higher Education
 Coordinating Board shall develop and distribute materials that
 emphasize the importance of the teaching profession and inform
 individuals about state-funded loan forgiveness and tuition
 assistance programs.
 (c)  The commissioner, in cooperation with the commissioner
 of higher education [and the executive director of the State Board
 for Educator Certification], shall annually identify the need for
 teachers in specific subject areas and geographic regions and among
 underrepresented groups.  The commissioner shall give priority to
 developing and implementing recruitment programs to address those
 needs from the agency's discretionary funds.
 (d)  The agency[, the State Board for Educator
 Certification,] and the Texas Higher Education Coordinating Board
 shall encourage the business community to cooperate with local
 schools to develop recruiting programs designed to attract and
 retain capable teachers, including programs to provide summer
 employment opportunities for teachers.
 (e)  The agency[, the State Board for Educator
 Certification,] and the Texas Higher Education Coordinating Board
 shall encourage major education associations to cooperate in
 developing a long-range program promoting teaching as a career and
 to assist in identifying local activities and resources that may be
 used to promote the teaching profession.
 SECTION 26.  Subsections (b), (b-1), (c), (d), (e), (f), and
 (g), Section 21.006, Education Code, are amended to read as
 follows:
 (b)  In addition to the reporting requirement under Section
 261.101, Family Code, the superintendent or director of a school
 district, open-enrollment charter school, regional education
 service center, or shared services arrangement shall notify the
 commissioner [State Board for Educator Certification] if [the
 superintendent or director has reasonable cause to believe that]:
 (1)  an educator [employed by or] seeking employment by
 the district, school, service center, or shared services
 arrangement has a criminal record or the criminal record of an
 educator employed by the district, school, service center, or
 shared services arrangement changes, as determined by commissioner
 rule;
 (2)  an educator's employment at the district, school,
 service center, or shared services arrangement was terminated based
 on a determination that the educator:
 (A)  abused or otherwise committed an unlawful act
 with a student or minor;
 (A-1)  was involved in a romantic relationship
 with or solicited or engaged in sexual contact with a student or
 minor;
 (B)  possessed, transferred, sold, or distributed
 a controlled substance, as defined by Chapter 481, Health and
 Safety Code, or by 21 U.S.C. Section 801 et seq.[, and its
 subsequent amendments];
 (C)  illegally transferred, appropriated, or
 expended funds or other property of the district, school, service
 center, or shared services arrangement;
 (D)  attempted by fraudulent or unauthorized
 means to obtain or alter a professional certificate or license for
 the purpose of promotion or additional compensation; or
 (E)  committed a criminal offense or any part of a
 criminal offense on school property or at a school-sponsored event;
 (3)  the educator resigned and reasonable evidence
 supports a recommendation by the superintendent or director to
 terminate the educator based on a determination that the educator
 engaged in misconduct described by Subdivision (2); or
 (4)  the educator engaged in conduct that violated the
 assessment instrument security procedures established under
 Section 39.0301.
 (b-1)  A superintendent or director of a school district or
 open-enrollment charter school shall complete an investigation of
 an educator that is based on a reasonable suspicion [cause] to
 believe the educator may have engaged in misconduct described by
 Subsection (b)(2)(A) or (A-1), despite the educator's resignation
 from district or school employment before completion of the
 investigation.  The agency shall establish procedures for an
 investigation under this subsection.
 (c)  The superintendent or director must notify the
 commissioner [State Board for Educator Certification] by filing a
 report with the commissioner [board] not later than the seventh day
 after the date the superintendent or director first learns about a
 change in an employee's criminal record under Subsection (b)(1) or
 a termination of employment or resignation following an alleged
 incident of misconduct described by Subsection (b).  The report
 must be:
 (1)  in writing; and
 (2)  in a form prescribed by the commissioner [board].
 (d)  The superintendent or director shall notify the board of
 trustees or governing body of the school district, open-enrollment
 charter school, regional education service center, or shared
 services arrangement and the educator of the filing of the report
 required by Subsection (c).
 (e)  A superintendent or director who in good faith and while
 acting in an official capacity files a report with the commissioner
 [State Board for Educator Certification] under this section is
 immune from civil or criminal liability that might otherwise be
 incurred or imposed.
 (f)  The commissioner [State Board for Educator
 Certification] shall determine whether to impose sanctions against
 a superintendent or director who fails to file a report in violation
 of Subsection (c).
 (g)  The commissioner [State Board for Educator
 Certification] shall adopt [propose] rules as necessary to
 implement this section.
 SECTION 27.  Subsections (b), (c), (d), (e), and (f),
 Section 21.007, Education Code, are amended to read as follows:
 (b)  The commissioner [board] shall adopt a procedure for
 placing a notice of alleged misconduct on an educator's public
 certification records.  The procedure adopted by the commissioner
 [board] must provide for immediate placement of a notice of alleged
 misconduct on an educator's public certification records if the
 alleged misconduct presents a risk to the health, safety, or
 welfare of a student or minor as determined by the commissioner
 [board].
 (c)  The commissioner [board] must notify an educator in
 writing when placing a notice of an alleged incident of misconduct
 on the public certification records of the educator.
 (d)  The commissioner [board] must provide an opportunity
 for an educator to show cause why the notice should not be placed on
 the educator's public certification records.  The commissioner
 [board] shall adopt [propose] rules establishing the length of time
 that a notice may remain on the educator's public certification
 records before the commissioner [board] must:
 (1)  initiate a proceeding to impose a sanction on the
 educator on the basis of the alleged misconduct; or
 (2)  remove the notice from the educator's public
 certification records.
 (e)  If it is determined that the educator has not engaged in
 the alleged incident of misconduct, the commissioner [board] shall
 immediately remove the notice from the educator's public
 certification records.
 (f)  The commissioner [board] shall adopt [propose] rules
 necessary to administer this section.
 SECTION 28.  Section 21.031, Education Code, is amended to
 read as follows:
 Sec. 21.031.  COMMISSIONER ROLE IN CERTIFICATION OF
 EDUCATORS [PURPOSE].  (a)  [The State Board for Educator
 Certification is established to recognize public school educators
 as professionals and to grant educators the authority to govern the
 standards of their profession.]  The commissioner [board] shall
 regulate and oversee all aspects of the certification, continuing
 education, and standards of conduct of public school educators.
 (b)  In adopting [proposing] rules under this subchapter,
 the commissioner [board] shall ensure that all candidates for
 certification or renewal of certification demonstrate the
 knowledge and skills necessary to improve the performance of the
 diverse student population of this state.
 SECTION 29.  Section 21.040, Education Code, is amended to
 read as follows:
 Sec. 21.040.  ADVISORY COMMITTEE [GENERAL POWERS AND DUTIES
 OF BOARD].  (a)  The commissioner [board] shall[:
 [(1)  supervise the executive director's performance;
 [(2)     approve an operating budget for the board and
 make a request for appropriations;
 [(3)     appoint the members of any advisory committee to
 the board;
 [(4)  for each class of educator certificate,] appoint
 an advisory committee [composed of members of that class] to
 recommend standards for educator certification and educator
 preparation programs [that class] to the commissioner [board;
 [(5)     provide to its members and employees, as often as
 necessary, information regarding their qualifications for office
 or employment under this chapter and their responsibilities under
 applicable laws relating to standards of conduct for state officers
 or employees;
 [(6)     develop and implement policies that clearly
 define the respective responsibilities of the board and the board's
 staff; and
 [(7)     execute interagency contracts to perform routine
 administrative functions].
 (b)  In appointing the members of the advisory committee
 established under this section, the commissioner shall ensure the
 committee has a balanced representation of teachers,
 administrators, school counselors, and representatives of both
 traditional and alternative certification educator preparation
 programs.
 SECTION 30.  Subsections (b), (c), and (d), Section 21.041,
 Education Code, are amended to read as follows:
 (b)  The commissioner [board] shall adopt [propose] rules
 that:
 (1)  provide for the regulation of educators and the
 general administration of this subchapter in a manner consistent
 with this subchapter;
 (2)  specify the classes of educator certificates to be
 issued, including emergency certificates;
 (3)  specify the period for which each class of
 educator certificate is valid;
 (4)  specify the requirements for the issuance and
 renewal of an educator certificate;
 (5)  provide for the issuance of an educator
 certificate to a person who holds a similar certificate issued by
 another state or foreign country, subject to Section 21.052;
 (6)  provide for special or restricted certification of
 educators, including certification of instructors of American Sign
 Language;
 (7)  provide for disciplinary proceedings, including
 the suspension or revocation of an educator certificate, as
 provided by Chapter 2001, Government Code;
 (8)  provide for the adoption, amendment, and
 enforcement of an educator's code of ethics;
 (9)  provide for continuing education requirements;
 and
 (10)  provide for certification of persons performing
 appraisals under Subchapter H.
 (c)  The commissioner [board] shall adopt [propose] a rule
 establishing [adopting] a fee for the issuance and maintenance of
 an educator certificate that, when combined with any fees imposed
 under Subsection (d), is adequate to cover the cost of
 administration of this subchapter.
 (d)  The commissioner [board] may adopt [propose] a rule
 establishing [adopting] a fee for the approval or renewal of
 approval of an educator preparation program, or for the addition of
 a certificate or field of certification to the scope of a program's
 approval.  A fee imposed under this subsection may not exceed the
 amount necessary, as determined by the commissioner [board], to
 provide for the administrative cost of approving, renewing the
 approval of, and appropriately ensuring the accountability of
 educator preparation programs under this subchapter.
 SECTION 31.  Section 21.044, Education Code, as amended by
 Chapters 635 (S.B. 866) and 926 (S.B. 1620), Acts of the 82nd
 Legislature, Regular Session, 2011, is reenacted and amended to
 read as follows:
 Sec. 21.044.  EDUCATOR PREPARATION.  (a)  The commissioner
 [board] shall adopt [propose] rules establishing the training
 requirements a person must accomplish to obtain a certificate,
 enter an internship, or enter an induction-year program.  The
 commissioner [board] shall specify the minimum academic
 qualifications required for a certificate.
 (b)  Any minimum academic qualifications for a certificate
 specified under Subsection (a) that require a person to possess a
 bachelor's degree must also require that the person receive, as
 part of the curriculum for that degree, instruction in detection
 and education of students with dyslexia.  This subsection does not
 apply to a person who obtains a certificate through an alternative
 certification program adopted under Section 21.049.
 (c)  The instruction under Subsection (b) must:
 (1)  be developed by a panel of experts in the diagnosis
 and treatment of dyslexia who are:
 (A)  employed by institutions of higher
 education; and
 (B)  approved by the commissioner [board]; and
 (2)  include information on:
 (A)  characteristics of dyslexia;
 (B)  identification of dyslexia; and
 (C)  effective, multisensory strategies for
 teaching students with dyslexia.
 (d) [(b)]  In adopting [proposing] rules under this section,
 the commissioner [board] shall specify that to obtain a certificate
 to teach an "applied STEM course," as that term is defined by
 Section 28.027, at a secondary school, a person must:
 (1)  pass the certification test administered by the
 recognized national or international business and industry group
 that created the curriculum the applied STEM course is based on; and
 (2)  have at a minimum:
 (A)  an associate degree from an accredited
 institution of higher education; and
 (B)  three years of work experience in an
 occupation for which the applied STEM course is intended to prepare
 the student.
 SECTION 32.  Section 21.045, Education Code, is amended to
 read as follows:
 Sec. 21.045.  ACCOUNTABILITY SYSTEM FOR EDUCATOR
 PREPARATION PROGRAMS; PROGRAM APPROVAL AND RENEWAL. (a)  The
 commissioner [board] shall adopt [propose] rules establishing
 standards to govern the approval and continuing accountability of
 all educator preparation programs based on the following
 information that is disaggregated with respect to sex and
 ethnicity:
 (1)  results of the certification examinations
 prescribed under Section 21.048(a);
 (2)  performance based on the appraisal system for
 beginning teachers adopted by the commissioner [board];
 (3)  achievement, including improvement in
 achievement, of students taught by beginning teachers for the first
 three years following certification, to the extent practicable; and
 (4)  compliance with commissioner [board] requirements
 regarding the frequency, duration, and quality of structural
 guidance and ongoing support provided by field supervisors to
 beginning teachers during their first year in the classroom.
 (b)  Each educator preparation program shall submit data
 elements as required by the commissioner [board] for an annual
 performance report to ensure access and equity.  At a minimum, the
 annual report must contain the performance data from Subsection
 (a), other than the data required for purposes of Subsection
 (a)(3), and the following information, disaggregated by sex and
 ethnicity:
 (1)  the number of candidates who apply;
 (2)  the number of candidates admitted;
 (3)  the number of candidates retained;
 (4)  the number of candidates completing the program;
 (5)  the number of candidates employed in the
 profession after completing the program;
 (6)  the number of candidates retained in the
 profession; and
 (7)  any other information required by federal law.
 (c)  The commissioner [board] shall adopt [propose] rules
 establishing performance standards for the Accountability System
 for Educator Preparation for accrediting educator preparation
 programs.  At a minimum, performance standards must be based on
 Subsection (a).
 (d)  The commissioner shall adopt [board may propose] rules
 establishing minimum standards for approval or renewal of approval
 of:
 (1)  educator preparation programs; or
 (2)  certification fields authorized to be offered by
 an educator preparation program.
 (e)  In adopting rules establishing minimum standards for
 renewal of approval of educator preparation programs under
 Subsection (d)(1), the commissioner shall require that each
 educator preparation program obtain renewal of approval every five
 years.  The commissioner shall adopt an evaluation process to be
 used for purposes of educator preparation program renewal.  To be
 eligible for renewal and continued accreditation, an educator
 preparation program must meet basic standards and requirements to
 adequately prepare candidates for educator certification, as
 determined by the commissioner.
 SECTION 33.  The heading to Section 21.0451, Education Code,
 is amended to read as follows:
 Sec. 21.0451.  SANCTIONS [UNDER ACCOUNTABILITY SYSTEM] FOR
 EDUCATOR PREPARATION PROGRAMS.
 SECTION 34.  Section 21.0451, Education Code, is amended by
 amending Subsection (a) and adding Subsections (e) and (f) to read
 as follows:
 (a)  The commissioner [board] shall adopt [propose] rules
 for the sanction of educator preparation programs that do not meet
 accountability standards or comply with state law or commissioner
 rules and shall annually review the accreditation status of each
 educator preparation program.  The rules:
 (1)  shall provide for the assignment of the following
 accreditation statuses:
 (A)  not rated;
 (B)  accredited;
 (C)  accredited-warned;
 (D)  accredited-probation; and
 (E)  not accredited-revoked;
 (2)  may provide for the agency to take any necessary
 action, including one or more of the following actions:
 (A)  requiring the program to obtain technical
 assistance approved by the agency [or board];
 (B)  requiring the program to obtain professional
 services under contract with another person;
 (C)  appointing a monitor to participate in and
 report to the commissioner [board] on the activities of the
 program; and
 (D)  if a program has been rated as
 accredited-probation [under the Accountability System for Educator
 Preparation] for a period of at least one year, revoking the
 approval of the program and ordering the program to be closed,
 provided that the [board or] agency must provide the opportunity
 for a hearing before the effective date of the closure; and
 (3)  shall provide for the agency to revoke the
 approval of the program and order the program to be closed if the
 program has been rated as accredited-probation [under the
 Accountability System for Educator Preparation] for three
 consecutive years, provided that the [board or] agency must provide
 the opportunity for a hearing before the effective date of the
 closure.
 (e)  The commissioner shall adopt procedures to ensure that
 sanctions under this section are applied fairly.
 (f)  The commissioner shall:
 (1)  provide information regarding sanctions under
 this section to each educator preparation program; and
 (2)  provide information to at-risk educator
 preparation programs about sanctions the specific program could
 face, including the consequences of those sanctions, a timeline for
 the program to comply with rules and meet accreditation standards,
 and how to appeal a sanction under this section.
 SECTION 35.  Section 21.0452, Education Code, is amended to
 read as follows:
 Sec. 21.0452.  CONSUMER INFORMATION REGARDING EDUCATOR
 PREPARATION PROGRAMS. (a)  To assist persons interested in
 obtaining teaching certification in selecting an educator
 preparation program and assist school districts in making staffing
 decisions, the commissioner [board] shall make information
 regarding educator programs in this state available to the public
 through the agency's [board's] Internet website.
 (b)  The commissioner [board] shall make available at least
 the following information regarding each educator preparation
 program:
 (1)  the information specified in Sections 21.045(a)
 and (b);
 (2)  in addition to any other appropriate information
 indicating the quality of persons admitted to the program, the
 average academic qualifications possessed by persons admitted to
 the program, including:
 (A)  average overall grade point average and
 average grade point average in specific subject areas; and
 (B)  average scores on the Scholastic Assessment
 Test (SAT), the American College Test (ACT), or the Graduate Record
 Examination (GRE), as applicable;
 (3)  the degree to which persons who complete the
 program are successful in obtaining teaching positions;
 (4)  the extent to which the program prepares teachers,
 including general education teachers and special education
 teachers, to effectively teach:
 (A)  students with disabilities; and
 (B)  students of limited English proficiency, as
 defined by Section 29.052;
 (5)  the activities offered by the program that are
 designed to prepare teachers to:
 (A)  integrate technology effectively into
 curricula and instruction, including activities consistent with
 the principles of universal design for learning; and
 (B)  use technology effectively to collect,
 manage, and analyze data to improve teaching and learning for the
 purpose of increasing student academic achievement;
 (6)  the perseverance of beginning teachers in the
 profession, as determined on the basis of the number of beginning
 teachers who maintain status as active contributing members in the
 Teacher Retirement System of Texas for at least three years after
 certification in comparison to similar programs;
 (7)  the results of exit surveys given to program
 participants on completion of the program that involve evaluation
 of the program's effectiveness in preparing participants to succeed
 in the classroom; and
 (8)  the results of surveys given to school principals
 that involve evaluation of the program's effectiveness in preparing
 participants to succeed in the classroom, based on experience with
 employed program participants.
 (c)  For purposes of Subsection (b)(7), the commissioner
 [board] shall require an educator preparation program to distribute
 an exit survey that a program participant must complete before the
 participant is eligible to receive a certificate under this
 subchapter.
 (d)  For purposes of Subsections (b)(7) and (8), the
 commissioner [board] shall develop surveys for distribution to
 program participants and school principals.
 (e)  The commissioner [board] may develop procedures under
 which each educator preparation program receives a designation or
 ranking based on the information required to be made available
 under Subsection (b).  If the commissioner [board] develops
 procedures under this subsection, the designation or ranking
 received by each program must be included in the information made
 available under this section.
 (f)  In addition to other information required to be made
 available under this section, the commissioner [board] shall
 provide information identifying employment opportunities for
 teachers in the various regions of this state.  The commissioner
 [board] shall specifically identify each region of this state in
 which a shortage of qualified teachers exists.
 (g)  The commissioner [board] may require any person to
 provide information to the commissioner [board] for purposes of
 this section.
 SECTION 36.  Subchapter B, Chapter 21, Education Code, is
 amended by adding Sections 21.0454 and 21.0455 to read as follows:
 Sec. 21.0454.  RISK FACTORS FOR EDUCATOR PREPARATION
 PROGRAMS; RISK-ASSESSMENT MODEL.  (a)  The commissioner shall
 develop a set of risk factors to use in assessing the overall risk
 level of each educator preparation program.  The set of risk factors
 must include:
 (1)  a history of the program's compliance with state
 law and commissioner rules, standards, and procedures;
 (2)  the program's operational standards;
 (3)  whether the program meets the accountability
 standards under Section 21.045; and
 (4)  whether the program is accredited by other
 organizations.
 (b)  The agency shall use the set of risk factors developed
 under Subsection (a) to guide the agency in conducting monitoring,
 inspections, and compliance audits of educator preparation
 programs, including evaluations associated with renewals under
 Section 21.045(e).
 Sec. 21.0455.  COMPLAINTS REGARDING EDUCATOR PREPARATION
 PROGRAMS. (a)  The commissioner shall adopt rules establishing a
 process for a candidate for teacher certification to direct a
 complaint against an educator preparation program to the agency.
 (b)  The commissioner by rule shall require an educator
 preparation program to notify candidates for teacher certification
 of the complaint process adopted under Subsection (a).  The notice
 must include the name, mailing address, telephone number, and
 Internet website address of the agency for the purpose of directing
 complaints to the agency.  The educator preparation program shall
 provide for that notification:
 (1)  on the Internet website of the educator
 preparation program, if the program maintains a website;
 (2)  on a sign prominently displayed in program
 facilities; and
 (3)  in any newsletter distributed by the educator
 preparation program, if the program distributes a newsletter.
 (c)  The commissioner shall post the complaint process
 adopted under Subsection (a) on the agency's Internet website.
 (d)  The agency has no authority to arbitrate or resolve
 contractual or commercial issues between an educator preparation
 program and a candidate for teacher certification.
 SECTION 37.  Subsections (c) and (d), Section 21.046,
 Education Code, are amended to read as follows:
 (c)  Because an effective principal is essential to school
 improvement, the commissioner [board] shall ensure that:
 (1)  each candidate for certification as a principal is
 of the highest caliber; and
 (2)  multi-level screening processes, validated
 comprehensive assessment programs, and flexible internships with
 successful mentors exist to determine whether a candidate for
 certification as a principal possesses the essential knowledge,
 skills, and leadership capabilities necessary for success.
 (d)  In creating the qualifications for certification as a
 principal, the commissioner [board] shall consider the knowledge,
 skills, and proficiencies for principals as developed by relevant
 national organizations and the State Board of Education.
 SECTION 38.  Subsections (a) and (b), Section 21.047,
 Education Code, are amended to read as follows:
 (a)  The commissioner [board] may develop the process for the
 establishment of centers for professional development through
 institutions of higher education for the purpose of integrating
 technology and innovative teaching practices in the preservice and
 staff development training of public school teachers and
 administrators. An institution of higher education with a teacher
 education program may develop a center through a collaborative
 process involving public schools, regional education service
 centers, and other entities or businesses. A center may contract
 with other entities to develop materials and provide training.
 (b)  On application by a center, the commissioner [board]
 shall make grants to the center for its programs from funds derived
 from gifts, grants, and legislative appropriations for that
 purpose. The commissioner [board] shall award the grants on a
 competitive basis according to requirements established by
 commissioner [the board] rules.
 SECTION 39.  Subsections (a), (b), and (c), Section 21.048,
 Education Code, are amended to read as follows:
 (a)  The commissioner [board] shall adopt [propose] rules
 prescribing comprehensive examinations for each class of
 certificate issued by the commissioner [board].
 (b)  The commissioner [board] may not administer a written
 examination to determine the competence or level of performance of
 an educator who has a hearing impairment unless the examination has
 been field tested to determine its appropriateness, reliability,
 and validity as applied to, and minimum acceptable performance
 scores for, persons with hearing impairments.
 (c)  An educator who has a hearing impairment is exempt from
 taking a written examination for a period ending on the first
 anniversary of the date on which the commissioner [board]
 determines, on the basis of appropriate field tests, that the
 examination complies with the standards specified in Subsection
 (b). On application to the commissioner [board], the commissioner
 [board] shall issue a temporary exemption certificate to a person
 entitled to an exemption under this subsection.
 SECTION 40.  Section 21.0481, Education Code, is amended to
 read as follows:
 Sec. 21.0481.  MASTER READING TEACHER CERTIFICATION.
 (a)  To ensure that there are teachers with special training to
 work with other teachers and with students in order to improve
 student reading performance, the commissioner [board] shall
 establish a master reading teacher certificate.
 (b)  The commissioner [board] shall issue a master reading
 teacher certificate to each eligible person.
 (c)  To be eligible for a master reading teacher certificate,
 a person must:
 (1)  hold a reading specialist certificate issued under
 this subchapter and satisfactorily complete a course of instruction
 as prescribed under Subdivision (2)(B); or
 (2)  hold a teaching certificate issued under this
 subchapter and:
 (A)  have at least three years of teaching
 experience;
 (B)  satisfactorily complete a knowledge-based
 and skills-based course of instruction on the science of teaching
 children to read that includes training in:
 (i)  effective reading instruction
 techniques, including effective techniques for students whose
 primary language is a language other than English;
 (ii)  identification of dyslexia and related
 reading disorders and effective reading instruction techniques for
 students with those disorders; and
 (iii)  effective professional peer
 mentoring techniques;
 (C)  perform satisfactorily on the master reading
 teacher certification examination prescribed by the commissioner
 [board]; and
 (D)  satisfy any other requirements prescribed by
 the commissioner [board].
 SECTION 41.  Section 21.0482, Education Code, is amended to
 read as follows:
 Sec. 21.0482.  MASTER MATHEMATICS TEACHER CERTIFICATION.
 (a)  To ensure that there are teachers with special training to
 work with other teachers and with students in order to improve
 student mathematics performance, the commissioner [board] shall
 establish:
 (1)  a master mathematics teacher certificate to teach
 mathematics at elementary school grade levels;
 (2)  a master mathematics teacher certificate to teach
 mathematics at middle school grade levels; and
 (3)  a master mathematics teacher certificate to teach
 mathematics at high school grade levels.
 (b)  The commissioner [board] shall issue the appropriate
 master mathematics teacher certificate to each eligible person.
 (c)  To be eligible for a master mathematics teacher
 certificate, a person must:
 (1)  hold a teaching certificate issued under this
 subchapter;
 (2)  have at least three years of teaching experience;
 (3)  satisfactorily complete a knowledge-based course
 of instruction on the science of teaching children mathematics that
 includes training in mathematics instruction and professional peer
 mentoring techniques that, through scientific testing, have been
 proven effective;
 (4)  perform satisfactorily on the appropriate master
 mathematics teacher certification examination prescribed by the
 commissioner [board]; and
 (5)  satisfy any other requirements prescribed by the
 commissioner [board].
 (d)  The course of instruction prescribed under Subsection
 (c)(3) shall be developed by the commissioner [board] in
 consultation with mathematics and science faculty members at
 institutions of higher education.
 SECTION 42.  Section 21.0483, Education Code, is amended to
 read as follows:
 Sec. 21.0483.  MASTER TECHNOLOGY TEACHER CERTIFICATION.
 (a)  To ensure that there are teachers with special training to
 work with other teachers and with students in order to increase the
 use of technology in each classroom, the commissioner [board] shall
 establish a master technology teacher certificate.
 (b)  The commissioner [board] shall issue a master
 technology teacher certificate to each eligible person.
 (c)  To be eligible for a master technology teacher
 certificate, a person must:
 (1)  hold a technology applications or Technology
 Education certificate issued under this subchapter, satisfactorily
 complete the course of instruction prescribed under Subdivision
 (2)(B), and satisfactorily perform on the examination prescribed
 under Subdivision (2)(C); or
 (2)  hold a teaching certificate issued under this
 subchapter and:
 (A)  have at least three years of teaching
 experience;
 (B)  satisfactorily complete a knowledge-based
 and skills-based course of instruction on interdisciplinary
 technology applications and the science of teaching technology that
 includes training in:
 (i)  effective technology instruction
 techniques, including applications designed to meet the
 educational needs of students with disabilities;
 (ii)  classroom teaching methodology that
 engages student learning through the integration of technology;
 (iii)  digital learning competencies,
 including Internet research, graphics, animation, website
 mastering, and video technologies;
 (iv)  curriculum models designed to prepare
 teachers to facilitate an active student learning environment; and
 (v)  effective professional peer mentoring
 techniques;
 (C)  satisfactorily perform on an examination
 administered at the conclusion of the course of instruction
 prescribed under Paragraph (B); and
 (D)  satisfy any other requirements prescribed by
 the commissioner [board].
 (d)  The commissioner [board] may provide technology
 applications training courses under Subsection (c)(2)(B) in
 cooperation with:
 (1)  regional education service centers; and
 (2)  other public or private entities, including any
 state council on technology.
 SECTION 43.  Section 21.0484, Education Code, is amended to
 read as follows:
 Sec. 21.0484.  MASTER SCIENCE TEACHER CERTIFICATION.
 (a)  To ensure that there are teachers with special training to
 work with other teachers and with students in order to improve
 student science performance, the commissioner [board] shall
 establish:
 (1)  a master science teacher certificate to teach
 science at elementary school grade levels;
 (2)  a master science teacher certificate to teach
 science at middle school grade levels; and
 (3)  a master science teacher certificate to teach
 science at high school grade levels.
 (b)  The commissioner [board] shall issue the appropriate
 master science teacher certificate to each eligible person.
 (c)  To be eligible for a master science teacher certificate,
 a person must:
 (1)  hold a teaching certificate issued under this
 subchapter;
 (2)  have at least three years of teaching experience;
 (3)  satisfactorily complete a knowledge-based course
 of instruction on the science of teaching children science that
 includes training in science instruction and professional peer
 mentoring techniques that, through scientific testing, have been
 proven effective;
 (4)  perform satisfactorily on the appropriate master
 science teacher certification examination prescribed by the
 commissioner [board]; and
 (5)  satisfy any other requirements prescribed by the
 commissioner [board].
 (d)  The course of instruction prescribed under Subsection
 (c)(3) shall be developed by the commissioner [board] in
 consultation with science faculty members at institutions of higher
 education.
 SECTION 44.  Subsection (a), Section 21.0485, Education
 Code, is amended to read as follows:
 (a)  To be eligible to be issued a certificate to teach
 students with visual impairments, a person must:
 (1)  complete either:
 (A)  all course work required for that
 certification in an approved educator preparation program; or
 (B)  an alternative educator certification
 program approved for the purpose by the commissioner [board];
 (2)  perform satisfactorily on each examination
 prescribed under Section 21.048 for certification to teach students
 with visual impairments, after completing the course work or
 program described by Subdivision (1); and
 (3)  satisfy any other requirements prescribed by the
 commissioner [board].
 SECTION 45.  Section 21.049, Education Code, is amended to
 read as follows:
 Sec. 21.049.  ALTERNATIVE CERTIFICATION. (a)  To provide a
 continuing additional source of qualified educators, the
 commissioner [board] shall adopt [propose] rules providing for
 educator certification programs as an alternative to traditional
 educator preparation programs. The rules may not provide that a
 person may be certified under this section only if there is a
 demonstrated shortage of educators in a school district or subject
 area.
 (b)  The commissioner [board] may not require a person
 employed as a teacher in an alternative education program under
 Section 37.008 or a juvenile justice alternative education program
 under Section 37.011 for at least three years to complete an
 alternative educator certification program adopted under this
 section before taking the appropriate certification examination.
 SECTION 46.  Subsections (a) and (b), Section 21.050,
 Education Code, are amended to read as follows:
 (a)  A person who applies for a teaching certificate for
 which commissioner [board] rules require a bachelor's degree must
 possess a bachelor's degree received with an academic major or
 interdisciplinary academic major, including reading, other than
 education, that is related to the curriculum as prescribed under
 Subchapter A, Chapter 28.
 (b)  The commissioner [board] may not require more than 18
 semester credit hours of education courses at the baccalaureate
 level for the granting of a teaching certificate. The commissioner
 [board] shall provide for a minimum number of semester credit hours
 of internship to be included in the hours needed for certification.
 The commissioner [board] may adopt [propose] rules requiring
 additional credit hours for certification in bilingual education,
 English as a second language, early childhood education, or special
 education.
 SECTION 47.  Subsections (c), (d), (e), and (f), Section
 21.051, Education Code, are amended to read as follows:
 (c)  Subsection (b) applies only to an initial certification
 issued on or after September 1, 2012.  Subsection (b) does not
 affect:
 (1)  the validity of a certification issued before
 September 1, 2012; or
 (2)  the eligibility of a person who holds a
 certification issued before September 1, 2012, to obtain a
 subsequent renewal of the certification in accordance with
 commissioner [board] rule.
 (d)  Subsection (b) does not affect the period within which
 an individual must complete field-based experience hours as
 determined by commissioner [board] rule if the individual is not
 accepted into an educator preparation program before the deadline
 prescribed by commissioner [board] rule and is hired for a teaching
 assignment by a school district after the deadline prescribed by
 commissioner [board] rule.
 (e)  The commissioner [board] shall adopt [propose] rules
 relating to the field-based experience required by Subsection (b),
 including rules establishing[.    The commissioner by rule shall
 adopt] procedures and standards for recognizing a private school
 under Subsection (b)(2).
 (f)  The commissioner [board] shall adopt [propose] rules
 providing flexible options for persons for any field-based
 experience or internship required for certification.
 SECTION 48.  Subsections (a), (c), (d), (e), (f), and (h),
 Section 21.052, Education Code, are amended to read as follows:
 (a)  The commissioner [board] may issue a certificate to an
 educator who applies for a certificate and:
 (1)  holds:
 (A)  a degree issued by an institution accredited
 by a regional accrediting agency or group that is recognized by a
 nationally recognized accreditation board; or
 (B)  a degree issued by an institution located in
 a foreign country, if the degree is equivalent to a degree described
 by Paragraph (A);
 (2)  holds an appropriate certificate or other
 credential issued by another state or country; and
 (3)  performs satisfactorily on:
 (A)  the examination prescribed under Section
 21.048; or
 (B)  if the educator holds a certificate or other
 credential issued by another state or country, an examination
 similar to and at least as rigorous as that described by Paragraph
 (A) administered to the educator under the authority of that state.
 (c)  The commissioner [board] may issue a temporary
 certificate under this section to an educator who holds a degree
 required by Subsection (a)(1) and a certificate or other credential
 required by Subsection (a)(2) but who has not satisfied the
 requirements prescribed by Subsection (a)(3).  Subject to
 Subsection (d), the commissioner [board] may specify the term of a
 temporary certificate issued under this subsection.
 (d)  A temporary certificate issued under Subsection (c) to
 an educator employed by a school district that has constructed or
 expanded at least one instructional facility as a result of
 increased student enrollment due to actions taken under the Defense
 Base Closure and Realignment Act of 1990 (10 U.S.C. Section 2687)
 may not expire before the first anniversary of the date on which the
 commissioner [board] completes the review of the educator's
 credentials and informs the educator of the examination or
 examinations under Section 21.048 on which the educator must
 perform successfully to receive a standard certificate.
 (e)  An educator who has submitted all documents required by
 the commissioner [board] for certification and who receives a
 certificate as provided by Subsection (a) must perform
 satisfactorily on the examination prescribed under Section 21.048
 not later than the first anniversary of the date the commissioner
 [board] completes the review of the educator's credentials and
 informs the educator of the examination or examinations under
 Section 21.048 on which the educator must perform successfully to
 receive a standard certificate.
 (f)  The commissioner [board] shall post on the
 commissioner's [board's] Internet website the procedures for
 obtaining a certificate under Subsection (a).
 (h)  This subsection applies only to an applicant who holds a
 certificate or other credential issued by another state in
 mathematics, science, special education, or bilingual education,
 or another subject area that the commissioner determines has a
 shortage of teachers.  In any state fiscal year, the commissioner
 [board] shall accept or reject, not later than the 14th day after
 the date the commissioner [board] receives the completed
 application, at least 90 percent of the applications the
 commissioner [board] receives for a certificate under this
 subsection, and shall accept or reject all completed applications
 the commissioner [board] receives under this subsection not later
 than the 30th day after the date the commissioner [board] receives
 the completed application.  An applicant under this subsection must
 submit:
 (1)  a letter of good standing from the state in which
 the teacher is certified on a form determined by the commissioner
 [board];
 (2)  information necessary to complete a national
 criminal history record information review; and
 (3)  an application fee as required by the commissioner
 [board].
 SECTION 49.  Subsection (a), Section 21.054, Education Code,
 is amended to read as follows:
 (a)  The commissioner [board] shall adopt [propose] rules
 establishing a process for identifying continuing education
 courses and programs that fulfill educators' continuing education
 requirements.
 SECTION 50.  Subsection (a), Section 21.055, Education Code,
 is amended to read as follows:
 (a)  As provided by this section, a school district may issue
 a school district teaching permit and employ as a teacher a person
 who does not hold a teaching certificate issued by the commissioner
 [board].
 SECTION 51.  Section 21.056, Education Code, is amended to
 read as follows:
 Sec. 21.056.  ADDITIONAL CERTIFICATION. The commissioner
 [board] by rule shall provide for a certified educator to qualify
 for additional certification to teach at a grade level or in a
 subject area not covered by the educator's certificate upon
 satisfactory completion of an examination or other assessment of
 the educator's qualification.
 SECTION 52.  Subsection (d), Section 21.057, Education Code,
 is amended to read as follows:
 (d)  For purposes of this section, "inappropriately
 certified or uncertified teacher":
 (1)  includes:
 (A)  an individual serving on an emergency
 certificate issued under Section 21.041(b)(2); or
 (B)  an individual who does not hold any
 certificate or permit issued under this chapter and is not employed
 as specified by Subdivision (2)(E); and
 (2)  does not include an individual:
 (A)  who is a certified teacher assigned to teach
 a class or classes outside his or her area of certification, as
 determined by rules adopted [proposed] by the commissioner [board]
 in specifying the certificate required for each assignment;
 (B)  serving on a certificate issued due to a
 hearing impairment under Section 21.048;
 (C)  serving on a certificate issued pursuant to
 enrollment in an approved alternative certification program under
 Section 21.049;
 (D)  certified by another state or country and
 serving on a certificate issued under Section 21.052;
 (E)  serving on a school district teaching permit
 issued under Section 21.055; or
 (F)  employed under a waiver granted by the
 commissioner pursuant to Section 7.056.
 SECTION 53.  Subsections (b) and (d), Section 21.058,
 Education Code, are amended to read as follows:
 (b)  Notwithstanding Section 21.041(b)(7), not later than
 the fifth day after the date the commissioner [board] receives
 notice under Article 42.018, Code of Criminal Procedure, of the
 conviction of a person who holds a certificate under this
 subchapter, the commissioner [board] shall:
 (1)  revoke the certificate held by the person; and
 (2)  provide to the person and to any school district or
 open-enrollment charter school employing the person at the time of
 revocation written notice of:
 (A)  the revocation; and
 (B)  the basis for the revocation.
 (d)  A person whose certificate is revoked under Subsection
 (b) may reapply for a certificate in accordance with commissioner
 [board] rules.
 SECTION 54.  Section 21.060, Education Code, is amended to
 read as follows:
 Sec. 21.060.  ELIGIBILITY OF PERSONS CONVICTED OF CERTAIN
 OFFENSES. The commissioner [board] may suspend or revoke the
 certificate or permit held by a person under this subchapter,
 impose other sanctions against the person, or refuse to issue a
 certificate or permit to a person under this subchapter if the
 person has been convicted of a felony or misdemeanor offense
 relating to the duties and responsibilities of the education
 profession, including:
 (1)  an offense involving moral turpitude;
 (2)  an offense involving a form of sexual or physical
 abuse of a minor or student or other illegal conduct in which the
 victim is a minor or student;
 (3)  a felony offense involving the possession,
 transfer, sale, or distribution of or conspiracy to possess,
 transfer, sell, or distribute a controlled substance, as defined by
 Chapter 481, Health and Safety Code, or by 21 U.S.C. Section 801 et
 seq.;
 (4)  an offense involving the illegal transfer,
 appropriation, or use of school district funds or other district
 property; or
 (5)  an offense involving an attempt by fraudulent or
 unauthorized means to obtain or alter a professional certificate or
 license issued under this subchapter.
 SECTION 55.  Subchapter B, Chapter 21, Education Code, is
 amended by adding Sections 21.062 and 21.063 to read as follows:
 Sec. 21.062.  ISSUANCE OF SUBPOENAS. (a)  During an
 investigation by the commissioner of an educator for an alleged
 incident of misconduct, the commissioner may issue a subpoena to
 compel the production, for inspection or copying, of relevant
 evidence that is located in this state.
 (b)  A subpoena may be served personally or by certified
 mail.
 (c)  If a person fails to comply with a subpoena, the
 commissioner, acting through the attorney general, may file suit to
 enforce the subpoena in a district court in this state.  On finding
 that good cause exists for issuing the subpoena, the court shall
 order the person to comply with the subpoena.  The court may punish
 a person who fails to obey the court order.
 (d)  All information and materials subpoenaed or compiled in
 connection with an investigation described by Subsection (a) are
 confidential and not subject to disclosure under Chapter 552,
 Government Code.
 (e)  Except as provided by a protective order, and
 notwithstanding Subsection (d), all information and materials
 subpoenaed or compiled in connection with an investigation
 described by Subsection (a) may be used in a disciplinary
 proceeding against an educator based on an alleged incident of
 misconduct.
 Sec. 21.063.  DISCIPLINARY MATRIX. (a)  The commissioner
 shall create a matrix to provide guidelines for ensuring the fair
 and consistent application of disciplinary sanctions for educators
 certified under this chapter who commit violations of this chapter
 or a rule adopted under this chapter.  In developing the matrix, the
 commissioner shall consider the range of appropriate sanctions
 available for a violation based on:
 (1)  the severity of the violation;
 (2)  the number of repeat violations;
 (3)  whether the sanction serves as a deterrent to
 subsequent violations; and
 (4)  any aggravating or mitigating factors.
 (b)  The matrix developed under Subsection (a) does not
 prevent the commissioner from exercising discretion based on the
 specific circumstances of an individual case.
 (c)  In developing the matrix under Subsection (a), the
 commissioner shall provide for public comment.
 (d)  The commissioner shall make the matrix developed under
 Subsection (a) available to the public through posting the matrix
 on the agency's Internet website and through other appropriate
 means.
 SECTION 56.  Subsection (c), Section 21.105, Education Code,
 is amended to read as follows:
 (c)  On written complaint by the employing district, the
 commissioner [State Board for Educator Certification] may impose
 sanctions against a teacher employed under a probationary contract
 who:
 (1)  resigns;
 (2)  fails without good cause to comply with Subsection
 (a) or (b); and
 (3)  fails to perform the contract.
 SECTION 57.  Subsection (c), Section 21.160, Education Code,
 is amended to read as follows:
 (c)  On written complaint by the employing district, the
 commissioner [State Board for Educator Certification] may impose
 sanctions against a teacher who is employed under a continuing
 contract that obligates the district to employ the person for the
 following school year and who:
 (1)  resigns;
 (2)  fails without good cause to comply with Subsection
 (a) or (b); and
 (3)  fails to perform the contract.
 SECTION 58.  Subsection (c), Section 21.210, Education Code,
 is amended to read as follows:
 (c)  On written complaint by the employing district, the
 commissioner [State Board for Educator Certification] may impose
 sanctions against a teacher who is employed under a term contract
 that obligates the district to employ the person for the following
 school year and who:
 (1)  resigns;
 (2)  fails without good cause to comply with Subsection
 (a) or (b); and
 (3)  fails to perform the contract.
 SECTION 59.  Subsection (a), Section 21.253, Education Code,
 is amended to read as follows:
 (a)  A teacher must file a written request for a hearing
 under this subchapter with the district [commissioner] not later
 than the 15th day after the date the teacher receives written notice
 of the proposed action. [The teacher must provide the district with
 a copy of the request and must provide the commissioner with a copy
 of the notice.]
 SECTION 60.  Subsections (b) and (e), Section 21.254,
 Education Code, are amended to read as follows:
 (b)  If a hearing examiner is not selected by the parties to a
 pending case under Subsection (e), the [The] commissioner shall
 immediately assign the hearing examiner for a particular case by
 selecting the next person named on the list who resides within
 reasonable proximity to the district as determined by the
 commissioner. The commissioner may not change the order of names
 once the order is established under this section, except that once
 each hearing examiner on the list has been assigned to a case, the
 names shall be randomly reordered.  When a hearing examiner has been
 assigned to a case, the commissioner shall immediately notify the
 parties.  An assignment under this section is final.
 (e)  After the teacher receives the notice of the proposed
 action, the parties by agreement may select a hearing examiner from
 the list maintained by the commissioner under Subsection (a) or a
 person who is not certified to serve as a hearing examiner. A
 person who is not a certified hearing examiner may be selected only
 if the person is licensed to practice law in this state.  If the
 parties do not agree on a hearing examiner, the parties shall
 request an assignment from[, before the date the commissioner is
 permitted to assign a hearing examiner, notify] the commissioner
 under Subsection (b) not later than the 25th calendar day after the
 date the teacher receives the notice of the proposed action [in
 writing of the agreement, including the name of the hearing
 examiner selected].
 SECTION 61.  Subsection (d), Section 21.255, Education Code,
 is amended to read as follows:
 (d)  If the hearing examiner is unable to continue presiding
 over a case at any time before issuing a recommendation or decision,
 the parties shall select by agreement or request the assignment of
 another hearing examiner under Section 21.254 who, after a review
 of the record, shall perform any remaining functions without the
 necessity of repeating any previous proceedings.
 SECTION 62.  Subsection (g), Section 21.4021, Education
 Code, is amended to read as follows:
 (g)  If a board of trustees adopts a furlough program after
 the date by which a teacher must give notice of resignation under
 Section 21.105, 21.160, or 21.210, as applicable, a teacher who
 subsequently resigns is not subject to sanctions imposed by the
 commissioner [State Board for Educator Certification] as otherwise
 authorized by those sections.
 SECTION 63.  Section 21.503, Education Code, is amended to
 read as follows:
 Sec. 21.503.  ELIGIBILITY. A person is eligible for the
 program if the person:
 (1)  has served in the armed forces of the United
 States;
 (2)  is honorably discharged, retired, or released from
 active duty on or after October 1, 1990, after at least six years of
 continuous active duty service immediately before the discharge,
 retirement, or release;
 (3)  has received a baccalaureate or advanced degree
 from a public or private institution of higher education accredited
 by a regional accrediting agency or group that is recognized by a
 nationally recognized accreditation board; and
 (4)  satisfies any other criteria for selection
 [jointly] prescribed by the agency [and the State Board for
 Educator Certification].
 SECTION 64.  Subsection (b), Section 21.504, Education Code,
 is amended to read as follows:
 (b)  The agency [and the State Board for Educator
 Certification] shall distribute the applications and information
 regarding the program.
 SECTION 65.  Subsection (c), Section 21.510, Education Code,
 is amended to read as follows:
 (c)  For purposes of this section, a participant in the
 program is not considered to be in violation of an agreement under
 Section 21.508 during any period in which the participant:
 (1)  is pursuing a full-time course of study related to
 the field of teaching at a public or private institution of higher
 education approved by the commissioner [State Board for Educator
 Certification];
 (2)  is serving on active duty as a member of the armed
 forces of the United States;
 (3)  is temporarily totally disabled for a period not
 to exceed three years as established by sworn affidavit of a
 qualified physician;
 (4)  is unable to secure employment for a period not to
 exceed one year because of care required by a disabled spouse;
 (5)  is seeking and unable to find full-time employment
 as a teacher in a public elementary or secondary school for a single
 period not to exceed 27 months; or
 (6)  satisfies the provisions of any additional
 reimbursement exception adopted by the agency.
 SECTION 66.  Sections 21.551 and 21.553, Education Code, are
 amended to read as follows:
 Sec. 21.551.  PURPOSES. The purposes of the alternative
 certification Teach for Texas Pilot Program are to:
 (1)  attract to the teaching profession persons who
 have expressed interest in teaching and to support the
 certification of those persons as teachers;
 (2)  recognize the importance of the certification
 process [governed by the State Board for Educator Certification]
 under Subchapter B, which requires verification of competence in
 subject area and professional knowledge and skills;
 (3)  encourage the creation and expansion of educator
 preparation programs that recognize the knowledge and skills gained
 through previous educational and work-related experiences and that
 are delivered in a manner that recognizes individual circumstances,
 including the need to remain employed full-time while enrolled in
 the Teach for Texas Pilot Program; and
 (4)  provide annual stipends to postbaccalaureate
 teacher certification candidates.
 Sec. 21.553.  FINANCIAL INCENTIVES. (a)  The pilot program
 must offer to participants financial incentives, including tuition
 assistance and loan forgiveness. In offering a financial
 incentive, the commissioner [State Board for Educator
 Certification] shall:
 (1)  require a contract between each participant who
 accepts a financial incentive and the commissioner [State Board for
 Educator Certification] under which the participant is obligated to
 teach in a public school in this state for a stated period after
 certification;
 (2)  provide financial incentives in proportion to the
 length of the period the participant is obligated by contract to
 teach after certification; and
 (3)  give special financial incentives to a participant
 who agrees in the contract to teach in an underserved area.
 (b)  Financial incentives may be paid only from funds
 appropriated specifically for that purpose and from gifts, grants,
 and donations solicited or accepted by the commissioner [State
 Board for Educator Certification] for that purpose.
 (c)  The commissioner [State Board for Educator
 Certification] shall adopt [propose] rules establishing criteria
 for awarding financial incentives under this section, including
 criteria for awarding financial incentives if there are more
 participants than funds available to provide the financial
 incentives.
 SECTION 67.  Subsection (b), Section 21.604, Education Code,
 is amended to read as follows:
 (b)  The agency [and the State Board for Educator
 Certification] shall distribute the applications and information
 regarding the program.
 SECTION 68.  Subsection (c), Section 21.609, Education Code,
 is amended to read as follows:
 (c)  For purposes of this section, a participant in the
 program is not considered to be in violation of an agreement under
 Section 21.607 during any period in which the participant:
 (1)  is pursuing a full-time course of study related to
 the field of teaching at an institution of higher education
 approved by the commissioner [State Board for Educator
 Certification];
 (2)  is serving on active duty as a member of the armed
 forces of the United States;
 (3)  is temporarily totally disabled for a period not
 to exceed three years as established by affidavit of a qualified
 physician;
 (4)  is unable to secure employment for a period not to
 exceed one year because of care required by a disabled spouse;
 (5)  is seeking and unable to find full-time employment
 as a teacher in a public elementary or secondary school for a single
 period not to exceed 27 months; or
 (6)  satisfies the provisions of any additional
 reimbursement exception adopted by the agency.
 SECTION 69.  Subsection (b), Section 22.0512, Education
 Code, is amended to read as follows:
 (b)  In this section, "disciplinary proceeding" means:
 (1)  an action brought by the school district employing
 a professional employee of a school district to discharge or
 suspend the employee or terminate or not renew the employee's term
 contract; or
 (2)  an action brought by the commissioner [State Board
 for Educator Certification] to enforce the educator's code of
 ethics adopted under Section 21.041(b)(8).
 SECTION 70.  Section 22.082, Education Code, is amended to
 read as follows:
 Sec. 22.082.  ACCESS TO CRIMINAL HISTORY RECORDS BY
 COMMISSIONER [STATE BOARD FOR EDUCATOR CERTIFICATION]. The
 commissioner [State Board for Educator Certification] shall
 subscribe to the criminal history clearinghouse as provided by
 Section 411.0845, Government Code, and may obtain from any law
 enforcement or criminal justice agency all criminal history record
 information and all records contained in any closed criminal
 investigation file that relate to a specific applicant for or
 holder of a certificate issued under Subchapter B, Chapter 21.
 SECTION 71.  Subsections (c), (d), (e), and (f), Section
 22.0831, Education Code, are amended to read as follows:
 (c)  The commissioner [board] shall review the national
 criminal history record information of a person who has not
 previously submitted fingerprints to the department or been subject
 to a national criminal history record information review.
 (d)  The commissioner [board] shall place an educator's
 certificate on inactive status for failure to comply with a
 deadline for submitting information required under this section.
 (e)  The commissioner [board] may allow a person who is
 applying for a certificate under Subchapter B, Chapter 21, and who
 currently resides in another state to submit the person's
 fingerprints and other required information in a manner that does
 not impose an undue hardship on the person.
 (f)  The commissioner [board] may adopt [propose] rules to
 implement this section, including rules establishing:
 (1)  deadlines for a person to submit fingerprints and
 photographs in compliance with this section; and
 (2)  sanctions for a person's failure to comply with the
 requirements of this section, including suspension or revocation of
 a certificate or refusal to issue a certificate.
 SECTION 72.  Subsection (a), Section 22.0832, Education
 Code, is amended to read as follows:
 (a)  The agency shall review the national criminal history
 record information of an employee of an open-enrollment charter
 school to whom Section 12.1059 applies in the same manner as the
 commissioner [State Board for Educator Certification] reviews
 certified educators under Section 22.0831.  If the agency
 determines that, based on information contained in an employee's
 criminal history record information, the employee would not be
 eligible for educator certification under Subchapter B, Chapter 21,
 the agency shall notify the open-enrollment charter school in
 writing that the person may not be employed by the school or serve
 in a capacity described by Section 12.1059.
 SECTION 73.  Subsection (h), Section 22.0833, Education
 Code, is amended to read as follows:
 (h)  The agency, [the State Board for Educator
 Certification,] school districts, open-enrollment charter schools,
 and shared services arrangements may coordinate as necessary to
 ensure that criminal history reviews authorized or required under
 this subchapter are not unnecessarily duplicated.
 SECTION 74.  Subsections (d) and (e), Section 22.085,
 Education Code, are amended to read as follows:
 (d)  A school district, open-enrollment charter school,
 private school, regional education service center, or shared
 services arrangement may discharge an employee if the district or
 school obtains information of the employee's conviction of a felony
 or of a misdemeanor involving moral turpitude that the employee did
 not disclose to the commissioner [State Board for Educator
 Certification] or the district, school, service center, or shared
 services arrangement.  An employee discharged under this section is
 considered to have been discharged for misconduct for purposes of
 Section 207.044, Labor Code.  For purposes of this subsection, a
 disclosure to the State Board for Educator Certification before
 September 1, 2013, is considered a disclosure to the commissioner.
 (e)  The commissioner [State Board for Educator
 Certification] may impose a sanction on an educator who does not
 discharge an employee or refuse to hire an applicant if the educator
 knows or should have known, through a criminal history record
 information review, that the employee or applicant has been
 convicted of an offense described by Subsection (a).
 SECTION 75.  Sections 22.086 and 22.087, Education Code, are
 amended to read as follows:
 Sec. 22.086.  LIABILITY FOR REPORTING OFFENSES. The
 commissioner [State Board for Educator Certification], a school
 district, an open-enrollment charter school, a private school, a
 regional education service center, a shared services arrangement,
 or an employee of the agency [board], district, school, service
 center, or shared services arrangement is not civilly or criminally
 liable for making a report required under this subchapter.
 Sec. 22.087.  NOTIFICATION TO COMMISSIONER [STATE BOARD FOR
 EDUCATOR CERTIFICATION]. The superintendent of a school district
 or the director of an open-enrollment charter school, private
 school, regional education service center, or shared services
 arrangement shall promptly notify the commissioner [State Board for
 Educator Certification] in writing if the person obtains or has
 knowledge of information showing that an applicant for or holder of
 a certificate issued under Subchapter B, Chapter 21, has a reported
 criminal history.
 SECTION 76.  Subsection (b), Section 25.001, Education Code,
 is amended to read as follows:
 (b)  The board of trustees of a school district or its
 designee shall admit into the public schools of the district free of
 tuition a person who is over five and younger than 21 years of age on
 the first day of September of the school year in which admission is
 sought, and may admit a person who is at least 21 years of age and
 under 26 years of age for the purpose of completing the requirements
 for a high school diploma, if:
 (1)  the person and either parent of the person reside
 in the school district;
 (2)  the person does not reside in the school district
 but a parent of the person resides in the school district and that
 parent is a joint managing conservator or the sole managing
 conservator or possessory conservator of the person;
 (3)  the person and the person's guardian or other
 person having lawful control of the person under a court order
 reside within the school district;
 (4)  the person has established a separate residence
 under Subsection (d);
 (5)  the person is homeless, as defined by 42 U.S.C.
 Section 11302, regardless of the residence of the person, of either
 parent of the person, or of the person's guardian or other person
 having lawful control of the person;
 (6)  the person is a foreign exchange student placed
 with a host family that resides in the school district by a
 nationally recognized foreign exchange program[, unless the school
 district has applied for and been granted a waiver by the
 commissioner under Subsection (e)];
 (7)  the person resides at a residential facility
 located in the district;
 (8)  the person resides in the school district and is 18
 years of age or older or the person's disabilities of minority have
 been removed; or
 (9)  the person does not reside in the school district
 but the grandparent of the person:
 (A)  resides in the school district; and
 (B)  provides a substantial amount of
 after-school care for the person as determined by the board.
 SECTION 77.  Subsection (d), Section 28.014, Education Code,
 is amended to read as follows:
 (d)  The agency, in coordination with the Texas Higher
 Education Coordinating Board, shall adopt a series of questions to
 be included in an end-of-course assessment instrument administered
 under Subsection (c) to be used for purposes of Section 51.3062.
 The questions must be developed in a manner consistent with any
 college readiness standards adopted under Section [Sections 39.233
 and] 51.3062.
 SECTION 78.  Section 29.007, Education Code, is amended to
 read as follows:
 Sec. 29.007.  SHARED SERVICES ARRANGEMENTS. School
 districts may enter into a written contract to jointly operate
 their special education programs. [The contract must be approved
 by the commissioner.] Funds to which the cooperating districts are
 entitled may be allocated to the districts jointly as shared
 services arrangement units or shared services arrangement funds in
 accordance with the shared services arrangement districts'
 agreement.
 SECTION 79.  Subsections (a), (b), (c), and (e), Section
 29.061, Education Code, are amended to read as follows:
 (a)  The commissioner [State Board for Educator
 Certification] shall provide for the issuance of teaching
 certificates appropriate for bilingual education instruction to
 teachers who possess a speaking, reading, and writing ability in a
 language other than English in which bilingual education programs
 are offered and who meet the general requirements of Chapter 21.
 The commissioner [board] shall also provide for the issuance of
 teaching certificates appropriate for teaching English as a second
 language. The commissioner [board] may issue emergency
 endorsements in bilingual education and in teaching English as a
 second language.
 (b)  A teacher assigned to a bilingual education program must
 be appropriately certified for bilingual education by the
 commissioner [board].
 (c)  A teacher assigned to an English as a second language or
 other special language program must be appropriately certified for
 English as a second language by the commissioner [board].
 (e)  The commissioner [State Board for Educator
 Certification] and the Texas Higher Education Coordinating Board
 shall develop a comprehensive plan for meeting the teacher supply
 needs created by the programs outlined in this subchapter.
 SECTION 80.  The heading to Subchapter H, Chapter 29,
 Education Code, is amended to read as follows:
 SUBCHAPTER H.  [ADULT AND] COMMUNITY EDUCATION PROGRAMS
 SECTION 81.  Subdivision (4), Section 29.251, Education
 Code, is amended to read as follows:
 (4)  "Community education" means the process by which
 the citizens in a school district, using the resources and
 facilities of the district, organize to support each other and to
 solve their mutual educational problems and meet their mutual
 lifelong needs. Community education may include:
 (A)  educational programs, including programs
 relating to [for occupational and technological skills training,
 retraining of displaced workers,] cultural awareness, parenting
 skills education and parental involvement in school programs, and
 multilevel adult education and personal growth;
 (B)  community involvement programs, including
 programs for community economic development, school volunteers,
 partnerships between schools and businesses, coordination with
 community agencies, school-age child care, family [and workplace]
 literacy, and community use of facilities; and
 (C)  programs for youth enrolled in schools,
 including programs for dropout prevention and recovery programs,
 drug-free school programs, school-age parenting programs, and
 academic enhancement.
 SECTION 82.  Section 29.252, Education Code, is amended to
 read as follows:
 Sec. 29.252.  AGENCY [STATE] ROLE IN [ADULT AND] COMMUNITY
 EDUCATION.  (a)  The agency shall:
 (1)  [provide adequate staffing to develop,
 administer, and support a comprehensive statewide adult education
 program and coordinate related federal and state programs for
 education and training of adults;
 [(2)]  develop, implement, and regulate a
 comprehensive statewide program for community [level] education
 services [to meet the special needs of adults];
 (2) [(3)     develop the mechanism and guidelines for
 coordination of comprehensive adult education and related skill
 training services for adults with other agencies, both public and
 private, in planning, developing, and implementing related
 programs, including community education programs;
 [(4)]  administer all state and federal funds for
 community [adult] education [and related skill training] in this
 state, other than funds that [except in programs for which] another
 entity is specifically authorized to administer [do so] under other
 law; and
 (3) [(5)     prescribe and administer standards and
 accrediting policies for adult education;
 [(6)     prescribe and administer rules for teacher
 certification for adult education;
 [(7)]  accept and administer grants, gifts, services,
 and funds from available sources for use in community [adult]
 education[;
 [(8)     adopt or develop and administer a standardized
 assessment mechanism for assessing all adult education program
 participants who need literacy instruction, adult basic education,
 or secondary education leading to an adult high school diploma or
 the equivalent;
 [(9)     collaborate with the Texas Workforce Commission
 to improve the coordination and implementation of adult education
 and literacy services in this state; and
 [(10)     monitor and evaluate educational and employment
 outcomes of students who participate in the agency's adult
 education and literacy programs].
 (b)  The commissioner may adopt rules for the administration
 of this subchapter [assessment mechanism prescribed under
 Subsection (a)(8) must include an initial basic skills screening
 instrument and must provide comprehensive information concerning
 baseline student skills before and student progress after
 participation in an adult education program].
 SECTION 83.  Section 29.255, Education Code, is amended to
 read as follows:
 Sec. 29.255.  STATE FUNDING.  [(a)]  Funds shall be
 appropriated to implement statewide community [adult basic]
 education[, adult bilingual education, high school equivalency,
 and high school credit] programs, including [to eliminate
 illiteracy in this state and to implement and support a statewide
 program to meet the total range of adult needs for adult education,
 related skill training, and] pilot programs to demonstrate the
 effectiveness of the community education concept. The agency shall
 ensure that public local education agencies, public nonprofit
 agencies, and community-based organizations have direct and
 equitable access to those funds. [An additional sum of money may be
 appropriated to the Texas Department of Commerce for the purpose of
 skill training in direct support of industrial expansion and
 start-up, and those locations, industries, and occupations
 designated by the Texas Department of Commerce, when such training
 is also in support of the basic purposes of this subchapter. To
 fulfill the basic purposes of this subchapter, an additional sum of
 money may be appropriated for skill training that is conducted to
 support the expansion of civilian employment opportunities on
 United States military reservations.
 [(b)     The agency, in conjunction with the Texas Department of
 Commerce, may adopt rules to administer skill training programs for
 which the agency is responsible, and the Texas Department of
 Commerce may adopt rules to administer skill training programs for
 which it is responsible.]
 SECTION 84.  Section 29.902, Education Code, is amended to
 read as follows:
 Sec. 29.902.  DRIVER EDUCATION. (a)  The Texas Department
 of Licensing and Regulation [agency] shall develop a program of
 organized instruction in driver education and traffic safety for
 public school students. A student who will be 15 years of age or
 older before a driver education and traffic safety course ends may
 enroll in the course.
 (b)  The agency shall establish standards for the
 certification of professional and paraprofessional personnel who
 conduct the programs in the public schools.
 (c)  A school district shall consider offering a driver
 education and traffic safety course during each school year.  If the
 district offers the course, the district may:
 (1)  conduct the course and charge a fee for the course
 in the amount determined by the agency to be comparable to the fee
 charged by a driver education school that holds a license under
 Chapter 1001; or
 (2)  contract with a driver education school that holds
 a license under Chapter 1001 to conduct the course.
 SECTION 85.  Subsections (b) and (c), Section 33.002,
 Education Code, are amended to read as follows:
 (b)  A school district with 500 or more students enrolled in
 elementary school grades shall employ a counselor certified under
 Subchapter B, Chapter 21, [the rules of the State Board for Educator
 Certification] for each elementary school in the district. A
 school district shall employ at least one counselor for every 500
 elementary school students in the district.
 (c)  A school district with fewer than 500 students enrolled
 in elementary school grades shall provide guidance and counseling
 services to elementary school students by:
 (1)  employing a part-time counselor certified under
 Subchapter B, Chapter 21 [the rules of the State Board for Educator
 Certification];
 (2)  employing a part-time teacher certified as a
 counselor under Subchapter B, Chapter 21 [the rules of the State
 Board for Educator Certification]; or
 (3)  entering into a shared services arrangement
 agreement with one or more school districts to share a counselor
 certified under Subchapter B, Chapter 21 [the rules of the State
 Board for Educator Certification].
 SECTION 86.  Subsection (c), Section 33.007, Education Code,
 is amended to read as follows:
 (c)  At the beginning of grades 10 and 11, a school counselor
 certified under Subchapter B, Chapter 21, [the rules of the State
 Board for Educator Certification] shall explain the requirements of
 automatic admission to a general academic teaching institution
 under Section 51.803 to each student enrolled in a high school or at
 the high school level in an open-enrollment charter school who has a
 grade point average in the top 25 percent of the student's high
 school class.
 SECTION 87.  Subsection (d-1), Section 33.081, Education
 Code, is amended to read as follows:
 (d-1)  Subsections (c) and (d) do not apply to an advanced
 placement or international baccalaureate course, or to an honors or
 dual credit course in the subject areas of English language arts,
 mathematics, science, social studies, economics, or a language
 other than English.  [The agency shall review on a biennial basis
 courses described by this subsection to determine if other courses
 should be excluded from the requirement that a student be suspended
 from participation in an extracurricular activity under Subsection
 (c).    Not later than January 1 of each odd-numbered year, the agency
 shall report the findings under this subsection to the
 legislature.]
 SECTION 88.  Subsection (o), Section 37.006, Education Code,
 is amended to read as follows:
 (o)  In addition to any notice required under Article 15.27,
 Code of Criminal Procedure, a principal or a principal's designee
 shall inform each educator who has responsibility for, or is under
 the direction and supervision of an educator who has responsibility
 for, the instruction of a student who has engaged in any violation
 listed in this section of the student's misconduct.  Each educator
 shall keep the information received under this subsection
 confidential from any person not entitled to the information under
 this subsection, except that the educator may share the information
 with the student's parent or guardian as provided for by state or
 federal law.  The commissioner [State Board for Educator
 Certification] may revoke or suspend the certification of an
 educator who intentionally violates this subsection.
 SECTION 89.  Subsection (g), Section 37.007, Education Code,
 is amended to read as follows:
 (g)  In addition to any notice required under Article 15.27,
 Code of Criminal Procedure, a school district shall inform each
 educator who has responsibility for, or is under the direction and
 supervision of an educator who has responsibility for, the
 instruction of a student who has engaged in any violation listed in
 this section of the student's misconduct.  Each educator shall keep
 the information received under this subsection confidential from
 any person not entitled to the information under this subsection,
 except that the educator may share the information with the
 student's parent or guardian as provided for by state or federal
 law.  The commissioner [State Board for Educator Certification] may
 revoke or suspend the certification of an educator who
 intentionally violates this subsection.
 SECTION 90.  Subsection (e), Section 39.027, Education Code,
 is amended to read as follows:
 (e)  The commissioner shall develop an assessment system
 that shall be used for evaluating the academic progress, including
 reading proficiency in English, of all students of limited English
 proficiency, as defined by Section 29.052.  A student who is exempt
 from the administration of an assessment instrument under
 Subsection (a)(1) or (2) who achieves reading proficiency in
 English as determined by the assessment system developed under this
 subsection shall be administered the assessment instruments
 described by Sections 39.023(a) and (c).  The performance under the
 assessment system developed under this subsection of students to
 whom Subsection (a)(1) or (2) applies shall be included in the
 indicator systems under Section 39.301, as applicable, the local
 performance report under Section 39.306, and the comprehensive
 biennial [annual] report under Section 39.332.  This information
 shall be provided in a manner that is disaggregated by the bilingual
 education or special language program, if any, in which the student
 is enrolled.
 SECTION 91.  Subsections (a) and (d), Section 39.0302,
 Education Code, are amended to read as follows:
 (a)  During an agency investigation or audit of a school
 district under Section 39.0301(e) or (f), an accreditation
 investigation under Section 39.057(a)(8) [39.075(a)(8)], or an
 investigation [by the State Board for Educator Certification] of an
 educator for an alleged violation of an assessment instrument
 security procedure established under Section 39.0301(a), the
 commissioner may issue a subpoena to compel the attendance of a
 relevant witness or the production, for inspection or copying, of
 relevant evidence that is located in this state.
 (d)  All information and materials subpoenaed or compiled in
 connection with an investigation or audit described by Subsection
 (a):
 (1)  are confidential and not subject to disclosure
 under Chapter 552, Government Code; and
 (2)  are not subject to disclosure, discovery,
 subpoena, or other means of legal compulsion for release to any
 person other than:
 (A)  the commissioner [or the State Board for
 Educator Certification, as applicable];
 (B)  agency employees or agents involved in the
 investigation, as applicable; and
 (C)  the office of the attorney general, the state
 auditor's office, and law enforcement agencies.
 SECTION 92.  Section 39.082, Education Code, is amended by
 amending Subsections (a) and (b) and adding Subsections (d), (e),
 (f), (g), and (g-1) to read as follows:
 (a)  The commissioner shall, in consultation with the
 comptroller, develop and implement separate financial
 accountability rating systems for school districts and
 open-enrollment charter schools in this state that:
 (1)  distinguish among school districts and
 distinguish among open-enrollment charter schools, as applicable,
 based on levels of financial performance; [and]
 (2)  include procedures to:
 (A)  provide additional transparency to public
 education finance; and
 (B)  enable the commissioner and school district
 and open-enrollment charter school administrators to provide
 meaningful financial oversight and improvement; and
 (3)  include processes for anticipating the future
 financial solvency of each school district and open-enrollment
 charter school, including analysis of district and school revenues
 and expenditures for preceding school years.
 (b)  The system must include uniform indicators adopted by
 [the] commissioner rule by which to measure the financial
 management performance and future financial solvency of a district
 or open-enrollment charter school.  In adopting indicators under
 this subsection, the commissioner shall assign a point value to
 each indicator to be used in a scoring matrix developed by the
 commissioner.
 (d)  The commissioner shall evaluate indicators adopted
 under Subsection (b) at least once every three years.
 (e)  A district or open-enrollment charter school shall
 receive a failing rating under the system if the district or school
 fails to achieve a satisfactory rating on:
 (1)  an indicator adopted under Subsection (b) relating
 to financial management or solvency that the commissioner
 determines to be critical; or
 (2)  a category of indicators that suggest trends
 leading to financial distress as determined by the commissioner.
 (f)  Before assigning a final rating under the system, the
 commissioner shall assign each district or open-enrollment charter
 school a preliminary rating.  A district or school may submit
 additional information to the commissioner relating to any
 indicator on which performance was considered unsatisfactory.  The
 commissioner shall consider any additional information submitted
 by a district or school before assigning a final rating.  If the
 commissioner determines that the additional information negates
 the concern raised by the indicator on which performance was
 considered unsatisfactory, the commissioner may not penalize the
 district or school on the basis of the indicator.
 (g)  The commissioner shall adopt rules for the
 implementation of this section.
 (g-1)  The commissioner shall adopt initial rules necessary
 to implement the changes to this section made by the 83rd
 Legislature, Regular Session, 2013, not later than March 1, 2015.
 This subsection expires April 1, 2015.
 SECTION 93.  Section 39.0823, Education Code, is amended by
 amending Subsection (a) and adding Subsection (d) to read as
 follows:
 (a)  If the commissioner, based on the indicators adopted
 under Section 39.082 or other relevant information, projects a
 [review process under Section 39.0822 indicates a projected]
 deficit for a school district or open-enrollment charter school
 general fund within the following three school years, the agency
 [district] shall provide the district or school [agency] interim
 financial reports, including projected revenues and expenditures
 [supplemented by staff and student count data, as needed], to
 evaluate the [district's] current budget status of the district or
 school.
 (d)  The agency may require a district or open-enrollment
 charter school to submit additional information needed to produce a
 financial report under Subsection (a).  If a district or school
 fails to provide information requested under this subsection or if
 the commissioner determines that the information submitted by a
 district or school is unreliable, the commissioner may order the
 district or school to acquire professional services as provided by
 Section 39.109.
 SECTION 94.  Subchapter D, Chapter 39, Education Code, is
 amended by adding Section 39.0824 to read as follows:
 Sec. 39.0824.  CORRECTIVE ACTION PLAN. (a)  A school
 district or open-enrollment charter school assigned a failing
 rating under Section 39.082 shall submit to the commissioner a
 corrective action plan to address the financial weaknesses of the
 district or school.  A corrective action plan must identify
 problems and include strategies for improvement.
 (b)  The commissioner may impose appropriate sanctions under
 Subchapter E against a district or school failing to submit or
 implement a corrective action plan required under Subsection (a).
 SECTION 95.  Subsection (b), Section 39.083, Education Code,
 is amended to read as follows:
 (b)  The annual financial management report must include:
 (1)  a description of the district's financial
 management performance based on a comparison, provided by the
 agency, of the district's performance on the indicators adopted
 under Section 39.082(b) to:
 (A)  state-established standards; and
 (B)  the district's previous performance on the
 indicators; and
 (2)  [a description of the data submitted using the
 electronic-based program developed under Section 39.0822; and
 [(3)]  any descriptive information required by the
 commissioner.
 SECTION 96.  Subsection (a), Section 39.102, Education Code,
 is amended to read as follows:
 (a)  If a school district does not satisfy the accreditation
 criteria under Section 39.052, the academic performance standards
 under Section 39.053 or 39.054, or any financial accountability
 standard as determined by commissioner rule, the commissioner shall
 take any of the following actions to the extent the commissioner
 determines necessary:
 (1)  issue public notice of the deficiency to the board
 of trustees;
 (2)  order a hearing conducted by the board of trustees
 of the district for the purpose of notifying the public of the
 insufficient performance, the improvements in performance expected
 by the agency, and the interventions and sanctions that may be
 imposed under this section if the performance does not improve;
 (3)  order the preparation of a student achievement
 improvement plan that addresses each student achievement indicator
 under Section 39.053(c) for which the district's performance is
 insufficient, the submission of the plan to the commissioner for
 approval, and implementation of the plan;
 (4)  order a hearing to be held before the commissioner
 or the commissioner's designee at which the president of the board
 of trustees of the district and the superintendent shall appear and
 explain the district's low performance, lack of improvement, and
 plans for improvement;
 (5)  arrange an on-site investigation of the district;
 (6)  appoint an agency monitor to participate in and
 report to the agency on the activities of the board of trustees or
 the superintendent;
 (7)  appoint a conservator to oversee the operations of
 the district;
 (8)  appoint a management team to direct the operations
 of the district in areas of insufficient performance or require the
 district to obtain certain services under a contract with another
 person;
 (9)  if a district has a current accreditation status
 of accredited-warned or accredited-probation, fails to satisfy any
 standard under Section 39.054(e), or fails to satisfy financial
 accountability standards as determined by commissioner rule,
 appoint a board of managers to exercise the powers and duties of the
 board of trustees;
 (10)  if for two consecutive school years, including
 the current school year, a district has received an accreditation
 status of accredited-warned or accredited-probation, has failed to
 satisfy any standard under Section 39.054(e), or has failed to
 satisfy financial accountability standards as determined by
 commissioner rule, revoke the district's accreditation and:
 (A)  order closure of the district and annex the
 district to one or more [adjoining] districts under Section 13.054;
 or
 (B)  in the case of a home-rule school district or
 open-enrollment charter school, order closure of all programs
 operated under the district's or school's charter; or
 (11)  if a district has failed to satisfy any standard
 under Section 39.054(e) due to the district's dropout rates, impose
 sanctions designed to improve high school completion rates,
 including:
 (A)  ordering the development of a dropout
 prevention plan for approval by the commissioner;
 (B)  restructuring the district or appropriate
 school campuses to improve identification of and service to
 students who are at risk of dropping out of school, as defined by
 Section 29.081;
 (C)  ordering lower student-to-counselor ratios
 on school campuses with high dropout rates; and
 (D)  ordering the use of any other intervention
 strategy effective in reducing dropout rates, including mentor
 programs and flexible class scheduling.
 SECTION 97.  Section 39.104, Education Code, is amended by
 adding Subsection (e) to read as follows:
 (e)  In addition to the interventions and sanctions
 authorized under this chapter, the commissioner may reconstitute
 the governing body of a charter holder as provided by Section
 12.1201.
 SECTION 98.  Section 39.112, Education Code, is amended by
 adding Subsection (f) to read as follows:
 (f)  Subsection (e) does not apply if the district will be
 closed and its territory annexed to one or more other school
 districts in accordance with other law.  In that circumstance, the
 board of managers may, as determined by the commissioner, continue
 to oversee the closure and annexation of the district until the
 effective date of the district's annexation.
 SECTION 99.  Section 39.233, Education Code, is amended to
 read as follows:
 Sec. 39.233.  [RECOGNITION OF] HIGH SCHOOL COMPLETION AND
 SUCCESS AND COLLEGE READINESS PROGRAMS; AGENCY GUIDANCE. [(a)]
 The agency shall[:
 [(1)     develop standards for evaluating the success and
 cost-effectiveness of high school completion and success and
 college readiness programs implemented under Section 39.234;
 [(2)]  provide guidance for school districts and
 campuses in establishing and improving high school completion and
 success and college readiness programs implemented under Section
 39.234[; and
 [(3)     develop standards for selecting and methods for
 recognizing school districts and campuses that offer exceptional
 high school completion and success and college readiness programs
 under Section 39.234.
 [(b)     The commissioner may adopt rules for the
 administration of this section].
 SECTION 100.  Subsection (a), Section 39.235, Education
 Code, is amended to read as follows:
 (a)  From funds appropriated for that purpose, the
 commissioner may establish a grant program under which grants are
 awarded to middle, junior high, and high school campuses and school
 districts to support:
 (1)  the implementation of innovative improvement
 programs that are based on the best available research regarding
 middle, junior high, or high school reform, dropout prevention, and
 preparing students for postsecondary coursework or employment; and
 (2)  enhancing education practices that have been
 demonstrated by significant evidence of effectiveness[; and
 [(3)     the alignment of grants and programs to the
 strategic plan adopted under Section 39.407].
 SECTION 101.  Section 39.301, Education Code, is amended by
 amending Subsections (a) and (c) and adding Subsection (c-1) to
 read as follows:
 (a)  In addition to the indicators adopted under Section
 39.053, the commissioner may [shall] adopt indicators of the
 quality of learning for the purpose of preparing state performance
 reports under Section 39.305 [this chapter].  The commissioner
 biennially shall review the indicators for the consideration of
 appropriate revisions.
 (c)  Indicators for reporting purposes may [must] include:
 (1)  the percentage of graduating students who meet the
 course requirements established by State Board of Education rule
 for the minimum high school program, the recommended high school
 program, and the advanced high school program;
 (2)  the results of the SAT, ACT, articulated
 postsecondary degree programs described by Section 61.852, and
 certified workforce training programs described by Chapter 311, Labor
 Code;
 (3)  for students who have failed to perform
 satisfactorily, under each performance standard under Section
 39.0241, on an assessment instrument required under Section
 39.023(a) or (c), the performance of those students on subsequent
 assessment instruments required under those sections, aggregated
 by grade level and subject area;
 (4)  for each campus, the number of students,
 disaggregated by major student subpopulations, that agree under
 Section 28.025(b) to take courses under the minimum high school
 program;
 (5)  the percentage of students, aggregated by grade
 level, provided accelerated instruction under Section 28.0211(c),
 the results of assessment instruments administered under that
 section, the percentage of students promoted through the grade
 placement committee process under Section 28.0211, the subject of
 the assessment instrument on which each student failed to perform
 satisfactorily under each performance standard under Section
 39.0241, and the performance of those students in the school year
 following that promotion on the assessment instruments required
 under Section 39.023;
 (6)  the percentage of students of limited English
 proficiency exempted from the administration of an assessment
 instrument under Sections 39.027(a)(1) and (2);
 (7)  the percentage of students in a special education
 program under Subchapter A, Chapter 29, assessed through assessment
 instruments developed or adopted under Section 39.023(b);
 (8)  the percentage of students who satisfy the college
 readiness measure;
 (9)  the measure of progress toward dual language
 proficiency under Section 39.034(b), for students of limited
 English proficiency, as defined by Section 29.052;
 (10)  the percentage of students who are not
 educationally disadvantaged;
 (11)  the percentage of students who enroll and begin
 instruction at an institution of higher education in the school
 year following high school graduation; [and]
 (12)  the percentage of students who successfully
 complete the first year of instruction at an institution of higher
 education without needing a developmental education course; and
 (13)  additional quality indicators, as determined by
 the commissioner.
 (c-1)  Notwithstanding Subsection (a) or (c), the
 commissioner shall adopt an indicator of the quality of learning
 that includes the information described by Subsection (c)(5) for
 purposes of evaluating programs under Section 28.006(j).
 SECTION 102.  Section 39.305, Education Code, is amended to
 read as follows:
 Sec. 39.305.  STATE PERFORMANCE REPORTS [CAMPUS REPORT
 CARD]. (a)  Each school year, the agency shall prepare and
 distribute to each school district a state performance report
 [card] for each campus.  The reports [campus report cards] must be
 based on the most current data available disaggregated by student
 groups.  Campus performance must be compared to previous campus and
 district performance, current district performance, and state
 established standards.
 (b)  The report [card] shall include the following
 information:
 (1)  where applicable, the student achievement
 indicators described by Section 39.053(c) and the reporting
 indicators adopted under Section 39.301 [described by Sections
 39.301(c)(1) through (5)];
 (2)  average class size by grade level and subject;
 (3)  the administrative and instructional costs per
 student, computed in a manner consistent with Section 44.0071; and
 (4)  the district's instructional expenditures ratio
 and instructional employees ratio computed under Section 44.0071,
 and the statewide average of those ratios, as determined by the
 commissioner.
 (c)  The commissioner shall adopt rules requiring
 dissemination of the information included in a state [required
 under Subsection (b)(4) and appropriate class size and student]
 performance [portions of campus] report under this section [cards]
 annually to the parent, guardian, conservator, or other person
 having lawful control of each student in [at] the district in a
 manner consistent with campus policy regarding providing notice to
 parents.  On written request, the school district shall provide a
 copy of a [campus] report [card] to any other party.
 (d)  The agency shall promptly post the information included
 in reports on the agency's Internet website.
 SECTION 103.  The heading to Section 39.306, Education Code,
 is amended to read as follows:
 Sec. 39.306.  LOCAL PERFORMANCE REPORT.
 SECTION 104.  The heading to Section 39.307, Education Code,
 is amended to read as follows:
 Sec. 39.307.  USES OF LOCAL PERFORMANCE REPORT.
 SECTION 105.  The heading to Section 39.332, Education Code,
 is amended to read as follows:
 Sec. 39.332.  COMPREHENSIVE BIENNIAL [ANNUAL] REPORT.
 SECTION 106.  Subsection (a), Section 39.332, Education
 Code, is amended to read as follows:
 (a)  The [Not later than December 1 of each year, the] agency
 shall prepare and deliver to the governor, the lieutenant governor,
 the speaker of the house of representatives, each member of the
 legislature, the Legislative Budget Board, and the clerks of the
 standing committees of the senate and house of representatives with
 primary jurisdiction over the public school system a comprehensive
 report covering the preceding two school years [year] and
 containing the information described by Subsection (b).
 SECTION 107.  Subdivisions (2) and (20), Subsection (b),
 Section 39.332, Education Code, are amended to read as follows:
 (2)  The report must contain an evaluation of the
 status of education in the state as reflected by:
 (A)  the student achievement indicators described
 by Section 39.053; and
 (B)  the reporting indicators adopted under
 [described by] Section 39.301.
 (20)  The report must contain a comparison of the
 performance of open-enrollment charter schools and school
 districts on the student achievement indicators described by
 Section 39.053(c), the reporting indicators adopted under
 [described by] Section 39.301 [39.301(c)], and the accountability
 measures adopted under Section 39.053(i), with a separately
 aggregated comparison of the performance of open-enrollment
 charter schools predominantly serving students at risk of dropping
 out of school, as described by Section 29.081(d), with the
 performance of school districts.
 SECTION 108.  Section 39.362, Education Code, is amended to
 read as follows:
 Sec. 39.362.  NOTICE ON DISTRICT WEBSITE. Not later than the
 10th day after the first day of instruction of each school year, a
 school district that maintains an Internet website shall make the
 following information available to the public on the website:
 (1)  the information contained in the most recent state
 performance [campus] report [card] for each campus in the district
 under Section 39.305;
 (2)  the information contained in the most recent local
 performance report for the district under Section 39.306;
 (3)  the most recent accreditation status and
 performance rating of the district under Sections 39.052 and
 39.054; and
 (4)  a definition and explanation of each accreditation
 status under Section 39.051, based on commissioner rule adopted
 under that section.
 SECTION 109.  Section 39.409, Education Code, is transferred
 to Subchapter Z, Chapter 29, Education Code, redesignated as
 Section 29.921, Education Code, and amended to read as follows:
 Sec. 29.921 [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 110.  Section 39.413, Education Code, is transferred
 to Subchapter C, Chapter 61, Education Code, redesignated as
 Section 61.0767, Education Code, and amended to read as follows:
 Sec. 61.0767 [39.413].  FUNDING FOR CERTAIN PROGRAMS.
 (a)  From funds appropriated, the board [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 board [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.
 SECTION 111.  Subchapter A, Chapter 42, Education Code, is
 amended by adding Section 42.011 to read as follows:
 Sec. 42.011.  FUNDS AUDIT. (a)  The agency shall develop
 and implement by rule an auditing system for expenditures of funds
 under the Foundation School Program by school districts and
 open-enrollment charter schools.  An auditing system developed
 under this section must use a standard, risk-based approach.
 (b)  The agency shall provide guidance relating to an audit
 developed under this section through any training or reference
 material the agency provides to school districts or open-enrollment
 charter schools.
 SECTION 112.  Subsection (a), Section 45.208, Education
 Code, is amended to read as follows:
 (a)  The bank or banks selected as the depository or
 depositories and the school district shall enter into a depository
 contract or contracts, bond or bonds, or other necessary
 instruments setting forth the duties and agreements pertaining to
 the depository[, in a form and with the content prescribed by the
 State Board of Education].  The parties shall attach to the
 depository contract and incorporate by reference the bid or
 proposal of the depository.
 SECTION 113.  Section 51.308, Education Code, is amended to
 read as follows:
 Sec. 51.308.  DRIVER EDUCATION.  A driver education course
 for the purpose of preparing students to obtain a driver's license
 may be offered by an institution of higher education, as defined by
 Section 61.003, with the approval of the Texas Department of
 Licensing and Regulation [Central Education Agency].
 SECTION 114.  Section 52.31, Education Code, is amended to
 read as follows:
 Sec. 52.31.  PARTICIPATING INSTITUTIONS. In this
 subchapter, "participating higher educational institution" means a
 public or private nonprofit institution of higher education,
 including a junior college, accredited by a recognized accrediting
 agency as defined by Section 61.003, or a regional education
 service center or other entity that offers an alternative educator
 certification program approved by the commissioner of education
 [State Board for Educator Certification], that:
 (1)  is located in this state; and
 (2)  complies with the provisions of this chapter and
 the rules of the board promulgated in accordance with this chapter.
 SECTION 115.  Subsection (b), Section 52.32, Education Code,
 is amended to read as follows:
 (b)  If a loan applicant is enrolled at a career school or
 college in a degree program that is approved by the board or at a
 regional education service center or other entity in an alternative
 educator certification program that is approved by the commissioner
 of education [State Board for Educator Certification], the
 applicant is not required to provide evidence that the applicant is
 unable to obtain a guaranteed student loan from a commercial lender
 under Subsection (a-1).
 SECTION 116.  Section 61.0514, Education Code, is amended to
 read as follows:
 Sec. 61.0514.  INTEGRATED COURSEWORK. The board, with the
 cooperation and advice of the commissioner of education [State
 Board for Educator Certification], shall adopt educator
 preparation coursework guidelines that promote, to the greatest
 extent practicable, the integration of subject matter knowledge
 with classroom teaching strategies and techniques in order to
 maximize the effectiveness and efficiency of coursework required
 for certification under Subchapter B, Chapter 21.
 SECTION 117.  Subsection (b), Section 61.076, Education
 Code, is 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
 shall serve as co-chairs of the council.
 SECTION 118.  Subsection (a), Section 61.0761, Education
 Code, is 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 and the board suggest for inclusion in the plan.
 SECTION 119.  Subsection (b), Section 61.0766, Education
 Code, is amended to read as follows:
 (b)  Before an institution of higher education establishes
 an academy under this section, the institution must apply through a
 competitive process, as determined by the board, and meet any
 requirements established by the board for designation as an academy
 under this section and continued funding.  The institution of
 higher education must have a teacher preparation program approved
 by the commissioner of education [State Board for Educator
 Certification] or be affiliated with a program approved by the
 commissioner [State Board for Educator Certification].
 SECTION 120.  Section 1001.001, Education Code, is amended
 by amending Subdivisions (2), (3), (4), and (5) and adding
 Subdivision (13-a) to read as follows:
 (2)  "Approved driving safety course" means a driving
 safety course approved by the department [commissioner].
 (3)  "Commission" ["Commissioner"] means the Texas
 Commission of Licensing and Regulation [commissioner of
 education].
 (4)  "Course provider" means an enterprise that:
 (A)  maintains a place of business or solicits
 business in this state;
 (B)  is operated by an individual, association,
 partnership, or corporation; and
 (C)  has received an approval for a driving safety
 course from the department [commissioner] or has been designated by
 a person who has received that approval to conduct business and
 represent the person in this state.
 (5)  "Department" means the Texas Department of
 Licensing and Regulation [Public Safety].
 (13-a)  "Executive director" means the executive
 director of the department.
 SECTION 121.  Subsection (c), Section 1001.002, Education
 Code, is amended to read as follows:
 (c)  A driver education course is exempt from this chapter,
 other than Section 1001.055, if the course is:
 (1)  conducted by a vocational driver training school
 operated to train or prepare a person for a field of endeavor in a
 business, trade, technical, or industrial occupation;
 (2)  conducted by a school or training program that
 offers only instruction of purely avocational or recreational
 subjects as determined by the department [commissioner];
 (3)  sponsored by an employer to train its own
 employees without charging tuition;
 (4)  sponsored by a recognized trade, business, or
 professional organization with a closed membership to instruct the
 members of the organization; or
 (5)  conducted by a school regulated and approved under
 another law of this state.
 SECTION 122.  Section 1001.003, Education Code, is amended
 to read as follows:
 Sec. 1001.003.  LEGISLATIVE INTENT REGARDING SMALL
 BUSINESSES. It is the intent of the legislature that commission
 [agency] rules that affect driver training schools that qualify as
 small businesses be adopted and administered so as to have the least
 possible adverse economic effect on the schools.
 SECTION 123.  Section 1001.004, Education Code, as amended
 by Chapters 1253 (H.B. 339) and 1413 (S.B. 1317), Acts of the 81st
 Legislature, Regular Session, 2009, is reenacted and amended to
 read as follows:
 Sec. 1001.004.  COST OF ADMINISTERING CHAPTER. (a)  Except
 as provided by Subsection (b), the cost of administering this
 chapter shall be included in the state budget allowance for the
 department [agency].
 (b)  The department [commissioner] may charge a fee to each
 driver education school in an amount not to exceed the actual
 expense incurred in the regulation of driver education courses
 established under Section 1001.1015.
 SECTION 124.  Sections 1001.051, 1001.052, 1001.053, and
 1001.054, Education Code, are amended to read as follows:
 Sec. 1001.051.  JURISDICTION OVER SCHOOLS.  The department
 [agency] has jurisdiction over and control of driver training
 schools regulated under this chapter.
 Sec. 1001.052.  RULES.  The commission [agency] shall adopt
 [and administer] comprehensive rules governing driving safety
 courses.
 Sec. 1001.053.  POWERS AND DUTIES OF DEPARTMENT, COMMISSION,
 AND EXECUTIVE DIRECTOR [COMMISSIONER]. (a)  The department and
 executive director, as appropriate, [commissioner] shall:
 (1)  administer [the policies of] this chapter;
 (2)  enforce minimum standards for driver training
 schools under this chapter;
 (3)  [adopt and] enforce rules adopted by the
 commission that are necessary to administer this chapter; and
 (4)  visit a driver training school or course provider
 and reexamine the school or course provider for compliance with
 this chapter.
 (b)  The executive director [commissioner] may designate a
 person knowledgeable in the administration of regulating driver
 training schools to administer this chapter.
 (c)  The commission shall adopt rules necessary to
 administer this chapter.  The commission [commissioner] may adopt
 rules to ensure the integrity of approved driving safety courses
 and to enhance program quality.
 Sec. 1001.054.  RULES RESTRICTING ADVERTISING OR
 COMPETITIVE BIDDING. (a)  The commission [commissioner] may not
 adopt a rule restricting advertising or competitive bidding by a
 driver training school except to prohibit a false, misleading, or
 deceptive practice.
 (b)  The commission [commissioner] may not include in rules
 to prohibit false, misleading, or deceptive practices by a driver
 training school a rule that restricts:
 (1)  the use of an advertising medium;
 (2)  the outside dimensions of a printed advertisement
 or outdoor display;
 (3)  the duration of an advertisement; or
 (4)  advertisement under a trade name.
 (c)  The commission [commissioner] by rule may restrict
 advertising by a branch location of a driver training school so that
 the location adequately identifies the primary location of the
 school in a solicitation.
 SECTION 125.  Subsections (a), (a-1), (a-2), (b), and (c),
 Section 1001.055, Education Code, are amended to read as follows:
 (a)  The department [agency] shall provide to each licensed
 or exempt driver education school and to each parent-taught course
 provider approved by the Department of Public Safety under Section
 521.205, Transportation Code, driver education certificates or
 certificate numbers to enable the school or [and each approved
 parent-taught] course provider [(approved by the Texas Department
 of Public Safety under Section 521.205 of the Transportation Code)]
 to print and issue department-approved [agency-approved] driver
 education certificates [with the certificate numbers] to certify
 [be used for certifying] completion of an approved driver education
 course and [to] satisfy the requirements of Sections 521.204(a)(2)
 and 521.1601, Transportation Code.
 (a-1)  A certificate printed and issued by a driver education
 school or Department of Public Safety approved course provider
 must:
 (1)be in a form required by the department[agency]; and
 (2)  include an identifying certificate number
 provided by the department [agency] that may be used to verify the
 authenticity of the certificate with the driver education school or
 Department of Public Safety approved course provider.
 (a-2)  A driver education school or Department of Public
 Safety approved course provider that purchases driver education
 certificate numbers shall provide for the printing and issuance of
 original and duplicate certificates in a manner that, to the
 greatest extent possible, prevents the unauthorized production or
 the misuse of the certificates.  The driver education school or
 Department of Public Safety approved course provider shall
 electronically submit to the department [agency] in the manner
 established by the department [agency] data identified by the
 department [agency] relating to issuance of department-approved
 [agency-approved] driver education certificates with the
 certificate numbers.
 (b)  The commission [agency] by rule shall provide for the
 design and distribution of the certificates and certificate numbers
 in a manner that, to the greatest extent possible, prevents the
 unauthorized reproduction or misuse of the certificates or
 certificate numbers.
 (c)  The commission by rule shall establish [agency may
 charge] a fee [of not more than $4] for each certificate or
 certificate number.
 SECTION 126.  Subsections (b), (c), (d), (e), and (g),
 Section 1001.056, Education Code, are amended to read as follows:
 (b)  The department [agency] shall provide each licensed
 course provider with course completion certificate numbers to
 enable the provider to print and issue department-approved
 [agency-approved] uniform certificates of course completion.
 (c)  The commission [agency] by rule shall provide for the
 design of the certificates and the distribution of certificate
 numbers in a manner that, to the greatest extent possible, prevents
 the unauthorized production or the misuse of the certificates or
 certificate numbers.
 (d)  A certificate under this section must:
 (1)  be in a form required by the department [agency];
 and
 (2)  include an identifying number by which the
 department [agency], a court, or the Department of Public Safety
 [department] may verify its authenticity with the course provider.
 (e)  The commission by rule shall establish [agency may
 charge] a fee [of not more than $4] for each course completion
 certificate number. A course provider that supplies a certificate
 to an operator shall collect from the operator a fee equal to the
 amount of the fee paid to the department [agency] for the
 certificate number.
 (g)  A course provider shall issue a duplicate certificate by
 United States mail or commercial delivery. The commission
 [commissioner] by rule shall determine the amount of the fee for
 issuance of a duplicate certificate under this subsection.
 SECTION 127.  Section 1001.057, Education Code, is amended
 to read as follows:
 Sec. 1001.057.  ELECTRONIC TRANSMISSION OF DRIVING SAFETY
 COURSE INFORMATION.  The department [agency] shall investigate
 options to develop and implement procedures to electronically
 transmit information relating to driving safety courses to
 municipal and justice courts.
 SECTION 128.  Subchapter B, Chapter 1001, Education Code, is
 amended by adding Sections 1001.058 and 1001.059 to read as
 follows:
 Sec. 1001.058.  ADVISORY COMMITTEE. (a)  The commission
 shall establish an advisory committee to advise the commission and
 department on driver training rules and standards and driver
 education curriculum.
 (b)  The advisory committee consists of seven members
 appointed for staggered six-year terms by the presiding officer of
 the commission, with the approval of the commission, as follows:
 (1)  one member representing a driver education school;
 (2)  one member representing a driving safety school;
 (3)  one member representing a course provider;
 (4)  one instructor;
 (5)  one employee of the Department of Public Safety; and
 (6)  two members representing the public.
 (c)  The presiding officer of the commission shall appoint
 the presiding officer of the advisory committee.
 Sec. 1001.059.  COMPLAINTS. (a)  The department shall
 maintain a system to promptly and efficiently act on complaints
 filed with the department regarding driver training.  The
 department shall maintain information about parties to the
 complaint, the subject matter of the complaint, a summary of the
 results of the review or investigation of the complaint, and its
 disposition.
 (b)  The department shall make information available
 describing its procedures for complaint investigation and
 resolution.
 (c)  The department shall periodically notify the complaint
 parties of the status of the complaint until final disposition.
 SECTION 129.  Section 1001.101, Education Code, as amended
 by Chapters 1253 (H.B. 339) and 1413 (S.B. 1317), Acts of the 81st
 Legislature, Regular Session, 2009, is reenacted and amended to
 read as follows:
 Sec. 1001.101.  ADULT AND MINOR DRIVER EDUCATION COURSE
 CURRICULUM AND TEXTBOOKS. (a)  The commission [commissioner] by
 rule shall establish or approve the curriculum and designate the
 textbooks to be used in a driver education course for minors and
 adults, including a driver education course conducted by a school
 district, driver education school, or parent or other individual
 under Section 521.205, Transportation Code.
 (b)  A driver education course must require the student to
 complete:
 (1)  7 hours of behind-the-wheel instruction in the
 presence of a person who holds a driver education instructor
 license or who meets the requirements imposed under Section
 521.205, Transportation Code;
 (2)  7 hours of observation instruction in the presence
 of a person who holds a driver education instructor license or who
 meets the requirements imposed under Section 521.205,
 Transportation Code; and
 (3)  20 hours of behind-the-wheel instruction,
 including at least 10 hours of instruction that takes place at
 night, in the presence of an adult who meets the requirements of
 Section 521.222(d)(2), Transportation Code.
 SECTION 130.  Subsection (a), Section 1001.1015, Education
 Code, is amended to read as follows:
 (a)  The commission [commissioner] by rule shall establish
 the curriculum and designate the educational materials to be used
 in a driver education course exclusively for adults.
 SECTION 131.  Section 1001.102, Education Code, is amended
 to read as follows:
 Sec. 1001.102.  ALCOHOL AWARENESS INFORMATION.  (a)  The
 commission [agency] by rule shall require that information relating
 to alcohol awareness and the effect of alcohol on the effective
 operation of a motor vehicle be included in the curriculum of any
 driver education course or driving safety course.
 (b)  In developing rules under this section, the commission
 [agency] shall consult with the Department of Public Safety
 [department].
 SECTION 132.  Section 1001.1025, Education Code, is amended
 to read as follows:
 Sec. 1001.1025.  MOTORCYCLE AWARENESS INFORMATION.
 (a)  The commission [agency] by rule shall require that information
 relating to motorcycle awareness, the dangers of failing to yield
 the right-of-way to a motorcyclist, and the need to share the road
 with motorcyclists be included in the curriculum of any driver
 education course or driving safety course.
 (b)  In developing rules under this section, the commission
 [agency] shall consult with the Department of Public Safety
 [department].
 SECTION 133.  Subsections (b), (d), and (e), Section
 1001.103, Education Code, are amended to read as follows:
 (b)  The department [agency] shall develop standards for a
 separate school certification and approve curricula for drug and
 alcohol driving awareness programs that include one or more
 courses. Except as provided by commission [agency] rule, a program
 must be offered in the same manner as a driving safety course.
 (d)  In accordance with Section 461.013(b), Health and
 Safety Code, the department [agency] and the Department of State
 Health Services [Texas Commission on Alcohol and Drug Abuse] shall
 enter into a memorandum of understanding for the interagency
 approval of the required curricula.
 (e)  The commission [Notwithstanding Section 1001.056,
 Subchapter D, and Sections 1001.213 and 1001.303, the commissioner]
 may establish fees in connection with the programs under this
 section. The fees must be in amounts reasonable and necessary to
 administer the department's [agency's] duties under this section.
 SECTION 134.  Sections 1001.104 and 1001.105, Education
 Code, are amended to read as follows:
 Sec. 1001.104.  HOSPITAL AND REHABILITATION FACILITIES.
 (a)  The department [agency] shall enter into a memorandum of
 understanding with the Department of Assistive and Rehabilitative
 Services [Texas Rehabilitation Commission] and the Department of
 Public Safety [department] for the interagency development of
 curricula and licensing criteria for hospital and rehabilitation
 facilities that teach driver education.
 (b)  The department [agency] shall administer comprehensive
 rules governing driver education courses adopted by mutual
 agreement among the commission [agency], the Department of
 Assistive and Rehabilitative Services [Texas Rehabilitation
 Commission], and the Department of Public Safety [department].
 Sec. 1001.105.  TEXAS DEPARTMENT OF INSURANCE.  The
 department [agency] shall enter into a memorandum of understanding
 with the Texas Department of Insurance for the interagency
 development of a curriculum for driving safety courses.
 SECTION 135.  Subsections (b), (c), and (d), Section
 1001.106, Education Code, are amended to read as follows:
 (b)  The commission [commissioner] by rule shall provide
 minimum standards of curriculum relating to operation of vehicles
 at railroad and highway grade crossings.
 (c)  Subchapter F, Chapter 51, Occupations Code, Section
 51.353, Occupations Code, and Sections [1001.454,] 1001.456[,] and
 1001.553 of this code do not apply to a violation of this section or
 a rule adopted under this section.
 (d)  Section 51.352, Occupations Code, and Sections
 1001.455(a)(6), 1001.501, [1001.551, 1001.552,] and 1001.554 of
 this code do not apply to a violation of this section.
 SECTION 136.  Section 1001.107, Education Code, is amended
 to read as follows:
 Sec. 1001.107.  INFORMATION RELATING TO LITTER PREVENTION.
 (a)  The commission [commissioner] by rule shall require that
 information relating to litter prevention be included in the
 curriculum of each driver education and driving safety course.
 (b)  In developing rules under this section, the commission
 [commissioner] shall consult the Department of Public Safety
 [department].
 SECTION 137.  Subsections (a) and (c), Section 1001.108,
 Education Code, are amended to read as follows:
 (a)  The commission [commissioner] by rule shall require
 that information relating to anatomical gifts be included in the
 curriculum of each driver education course and driving safety
 course.
 (c)  In developing rules under this section, the commission
 [commissioner] shall consult with the Department of Public Safety
 [department] and the [Texas] Department of State Health Services.
 SECTION 138.  Section 1001.110, Education Code, is amended
 to read as follows:
 Sec. 1001.110.  INFORMATION RELATING TO DRIVING
 DISTRACTIONS. (a)  The commission [commissioner] by rule shall
 require that information relating to the effect of using a wireless
 communication device or engaging in other actions that may distract
 a driver on the safe or effective operation of a motor vehicle be
 included in the curriculum of each driver education course or
 driving safety course.
 (b)  In developing rules under this section, the commission
 [commissioner] shall consult with the Department of Public Safety
 [department].
 SECTION 139.  Subsection (a), 1001.111, Education Code, is
 amended to read as follows:
 (a)  The commission [commissioner] by rule shall provide
 minimum standards of curriculum for and designate the educational
 materials to be used in a driving safety course designed for drivers
 younger than 25 years of age.
 SECTION 140.  Sections 1001.151, 1001.152, and 1001.153,
 Education Code, are amended to read as follows:
 Sec. 1001.151.  APPLICATION, LICENSE, AND REGISTRATION
 FEES. (a)  The commission by rule [commissioner] shall establish
 [collect] application, license, and registration fees. The fees
 must be in amounts sufficient to cover administrative costs and are
 nonrefundable. The department shall collect the application,
 license, and registration fees.
 (b)  The commission by rule shall establish a fee for:
 (1)  an initial driver education school license and [is
 $1,000 plus $850] for each branch location;
 (2) [.
 [(c)  The fee for] an initial driving safety school license;
 (3)  [is an appropriate amount established by the
 commissioner not to exceed $200.
 [(d)  The fee for] an initial course provider license [is an
 appropriate amount established by the commissioner not to exceed
 $2,000], except that the commission [agency] may waive the fee if
 revenue received from the course provider is sufficient to cover
 the cost of licensing the course provider;
 (4)  the [.
 [(e)  The] annual renewal [fee] for a course provider,
 driving safety school, driver education school, or branch location
 [is an appropriate amount established by the commissioner not to
 exceed $200], except that the commission [agency] may waive the fee
 if revenue generated by the issuance of course completion
 certificate numbers and driver education certificates is
 sufficient to cover the cost of administering this chapter and
 Article 45.0511, Code of Criminal Procedure;
 (5)  [.
 [(f)  The fee for] a change of address of[:
 [(1)]  a driver education school, [is $180; and
 [(2)  a] driving safety school, or course provider;
 (6)  [is $50.
 [(g)  The fee for] a change of name of:
 (A) [(1)]  a driver education school or course
 provider or an owner of a driver education school or course provider
 [is $100]; or
 (B) [and
 [(2)]  a driving safety school or owner of a driving
 safety school;
 (7)  [is $50.
 [(h)  The application fee for] each additional driver
 education or driving safety course at a driver training school; and
 (8)  an [is $25.
 [(i)  The application fee for:
 [(1)  each director is $30; and
 [(2)     each assistant director or administrative staff
 member is $15.
 [(j)  Each] application for approval of a driving safety
 course that has not been evaluated by the department [commissioner
 must be accompanied by a nonrefundable fee of $9,000].
 (c) [(k)]  An application for an original driver education
 or driving safety instructor license must be accompanied by a
 processing fee [of $50] and an annual license fee [of $25], except
 that the department [commissioner] may not collect the processing
 fee from an applicant for a driver education instructor license who
 is currently teaching a driver education course in a public school
 in this state.
 (d) [(l)]  The commission [commissioner] shall establish the
 amount of the fee for a duplicate license.
 (e) [(m)]  The commission [commissioner] may establish a fee
 for an application for approval to offer a driver education course
 by an alternative method of instruction under Section 1001.3541 in
 an amount the commission [commissioner] considers appropriate, not
 to exceed the amount sufficient to cover the costs of considering
 the application.
 Sec. 1001.152.  DUTY TO REVIEW AND RECOMMEND ADJUSTMENTS IN
 FEE AMOUNTS. The commission [commissioner] shall periodically
 review the amounts of fees and recommend to the legislature
 adjustments to those amounts.
 Sec. 1001.153.  COMPLAINT INVESTIGATION FEE.  (a)  The
 commission [commissioner] shall establish the amount of the fee to
 investigate a driver training school or course provider to resolve
 a complaint against the school or course provider.
 (b)  The fee may be charged only if:
 (1)  the complaint could not have been resolved solely
 by telephone or in writing;
 (2)  a representative of the department [agency]
 visited the school or course provider as a part of the complaint
 resolution process; and
 (3)  the school or course provider was found to be at
 fault.
 SECTION 141.  Subsection (b), Section 1001.202, Education
 Code, is amended to read as follows:
 (b)  A driving safety school may use multiple classroom
 locations to teach a driving safety course if each location:
 (1)  is approved by the parent school and the
 department [agency];
 (2)  has the same name as the parent school; and
 (3)  has the same ownership as the parent school.
 SECTION 142.  Sections 1001.203, 1001.204, 1001.205, and
 1001.206, Education Code, are amended to read as follows:
 Sec. 1001.203.  APPLICATION.  To operate or do business in
 this state, a driver training school must apply to the department
 [commissioner] for the appropriate license. The application must:
 (1)  be in writing;
 (2)  be in the form prescribed by the department
 [commissioner];
 (3)  include all required information; and
 (4)  be verified.
 Sec. 1001.204.  REQUIREMENTS FOR DRIVER EDUCATION SCHOOL
 LICENSE.  The department [commissioner] shall approve an
 application for a driver education school license if, on
 investigation of the premises of the school, it is determined that
 the school:
 (1)  has courses, curricula, and instruction of a
 quality, content, and length that reasonably and adequately achieve
 the stated objective for which the courses, curricula, and
 instruction are offered;
 (2)  has adequate space, equipment, instructional
 material, and instructors to provide training of good quality in
 the classroom and behind the wheel;
 (3)  has [directors,] instructors[, and
 administrators] who have adequate educational qualifications and
 experience;
 (4)  provides to each student before enrollment:
 (A)  a copy of:
 (i)  the refund policy;
 (ii)  the schedule of tuition, fees, and
 other charges; and
 (iii)  the regulations relating to absence,
 grading policy, and rules of operation and conduct; and
 (B)  the department's name, mailing address,
 [and] telephone number, and Internet website address [of the
 agency] for the purpose of directing complaints to the department
 [agency];
 (5)  maintains adequate records as prescribed by the
 department [commissioner] to show attendance and progress or grades
 and enforces satisfactory standards relating to attendance,
 progress, and conduct;
 (6)  on completion of training, issues each student a
 certificate indicating the course name and satisfactory completion;
 (7)  complies with all county, municipal, state, and
 federal regulations, including fire, building, and sanitation
 codes and assumed name registration;
 (8)  is financially sound and capable of fulfilling its
 commitments for training;
 (9)  has [administrators, directors,] owners[,] and
 instructors who are of good reputation and character;
 (10)  maintains and publishes as part of its student
 enrollment contract the proper policy for the refund of the unused
 portion of tuition, fees, and other charges if a student fails to
 take the course or withdraws or is discontinued from the school at
 any time before completion;
 (11)  does not use erroneous or misleading advertising,
 either by actual statement, omission, or intimation, as determined
 by the department [commissioner];
 (12)  does not use a name similar to the name of another
 existing school or tax-supported educational institution in this
 state, unless specifically approved in writing by the executive
 director [commissioner];
 (13)  submits to the department [agency] for approval
 the applicable course hour lengths and curriculum content for each
 course offered by the school;
 (14)  does not owe an administrative penalty for a
 violation of [under] this chapter; and
 (15)  meets any additional criteria required by the
 department [agency].
 Sec. 1001.205.  REQUIREMENTS FOR DRIVING SAFETY SCHOOL
 LICENSE. The department [commissioner] shall approve an
 application for a driving safety school license if on investigation
 the department [agency] determines that the school:
 (1)  has driving safety courses, curricula, and
 instruction of a quality, content, and length that reasonably and
 adequately achieve the stated objective for which the course,
 curricula, and instruction are developed by the course provider;
 (2)  has adequate space, equipment, instructional
 material, and instructors to provide training of good quality;
 (3)  has instructors [and administrators] who have
 adequate educational qualifications and experience;
 (4)  maintains adequate records as prescribed by the
 department [commissioner] to show attendance and progress or grades
 and enforces satisfactory standards relating to attendance,
 progress, and conduct;
 (5)  complies with all county, municipal, state, and
 federal laws, including fire, building, and sanitation codes and
 assumed name registration;
 (6)  has [administrators,] owners[,] and instructors
 who are of good reputation and character;
 (7)  does not use erroneous or misleading advertising,
 either by actual statement, omission, or intimation, as determined
 by the department [commissioner];
 (8)  does not use a name similar to the name of another
 existing school or tax-supported educational establishment in this
 state, unless specifically approved in writing by the executive
 director [commissioner];
 (9)  maintains and uses the approved contract and
 policies developed by the course provider;
 (10)  does not owe an administrative penalty for a
 violation of [under] this chapter;
 (11)  will not provide a driving safety course to a
 person for less than $25; and
 (12)  meets additional criteria required by the
 department [commissioner].
 Sec. 1001.206.  REQUIREMENTS FOR COURSE PROVIDER LICENSE.
 The department [commissioner] shall approve an application for a
 course provider license if on investigation the department [agency]
 determines that:
 (1)  the course provider has an approved course that at
 least one licensed driving safety school is willing to offer;
 (2)  the course provider has adequate educational
 qualifications and experience;
 (3)  the course provider will:
 (A)  develop and provide to each driving safety
 school that offers the approved course a copy of:
 (i)  the refund policy; and
 (ii)  the regulations relating to absence,
 grading policy, and rules of operation and conduct; and
 (B)  provide to the driving safety school the
 department's name, mailing address, [and] telephone number, and
 Internet website address [of the agency] for the purpose of
 directing complaints to the department [agency];
 (4)  a copy of the information provided to each driving
 safety school under Subdivision (3) will be provided to each
 student by the school before enrollment;
 (5)  not later than the 15th working day after the date
 a [the] person successfully completes the course, the course
 provider will issue and deliver to the person by United States mail
 or commercial delivery [mail] a uniform certificate of course
 completion [to the person] indicating the course name and
 successful completion;
 (6)  the course provider maintains adequate records as
 prescribed by the department [commissioner] to show attendance and
 progress or grades and enforces satisfactory standards relating to
 attendance, progress, and conduct;
 (7)  the course provider complies with all county,
 municipal, state, and federal laws, including assumed name
 registration and other applicable requirements;
 (8)  the course provider is financially sound and
 capable of fulfilling its commitments for training;
 (9)  the course provider is of good reputation and
 character;
 (10)  the course provider maintains and publishes as a
 part of its student enrollment contract the proper policy for the
 refund of the unused portion of tuition, fees, and other charges if
 a student fails to take the course or withdraws or is discontinued
 from the school at any time before completion;
 (11)  the course provider does not use erroneous or
 misleading advertising, either by actual statement, omission, or
 intimation, as determined by the department [commissioner];
 (12)  the course provider does not use a name similar to
 the name of another existing school or tax-supported educational
 institution in this state, unless specifically approved in writing
 by the executive director [commissioner];
 (13)  the course provider does not owe an
 administrative penalty for a violation of [under] this chapter; and
 (14)  the course provider meets additional criteria
 required by the department [commissioner].
 SECTION 143.  Subsections (a) and (b), Section 1001.207,
 Education Code, are amended to read as follows:
 (a)  Before a driver education school may be issued a
 license, the school must file a corporate surety bond with the
 department [commissioner] in the amount of:
 (1)  $10,000 for the primary location of the school; and
 (2)  $5,000 for each branch location.
 (b)  A bond issued under Subsection (a) must be:
 (1)  issued in a form approved by the department
 [commissioner];
 (2)  issued by a company authorized to do business in
 this state;
 (3)  payable to the state to be used only for payment of
 a refund due to a student or potential student;
 (4)  conditioned on the compliance of the school and
 its officers, agents, and employees with this chapter and rules
 adopted under this chapter; and
 (5)  issued for a period corresponding to the term of
 the license.
 SECTION 144.  Subsection (b), Section 1001.209, Education
 Code, is amended to read as follows:
 (b)  A bond issued under Subsection (a) must be:
 (1)  issued by a company authorized to do business in
 this state;
 (2)  payable to the state to be used:
 (A)  for payment of a refund due a student of the
 course provider's approved course;
 (B)  to cover the payment of unpaid fees or
 penalties assessed by the executive director [agency]; or
 (C)  to recover any cost associated with providing
 course completion certificate numbers, including the cancellation
 of certificate numbers;
 (3)  conditioned on the compliance of the course
 provider and its officers, agents, and employees with this chapter
 and rules adopted under this chapter; and
 (4)  issued for a period corresponding to the term of
 the license.
 SECTION 145.  Section 1001.210, Education Code, is amended
 to read as follows:
 Sec. 1001.210.  ALTERNATE FORM OF SECURITY. Instead of the
 bond required by Section 1001.207 or 1001.209, a driver education
 school or course provider may provide another form of security that
 is:
 (1) [(A)]  approved by the department [commissioner];
 and
 (2) [(B)]  in the amount required for a comparable bond
 under Section 1001.207 or 1001.209.
 SECTION 146.  Subsections (a) and (b), Section 1001.211,
 Education Code, are amended to read as follows:
 (a)  The executive director [commissioner] shall issue a
 license to an applicant for a license under this subchapter if:
 (1)  the application is submitted in accordance with
 this subchapter; and
 (2)  the applicant meets the requirements of this
 chapter.
 (b)  A license must be in a form determined by the department
 [commissioner] and must show in a clear and conspicuous manner:
 (1)  the date of issuance, effective date, and term of
 the license;
 (2)  the name and address of the driver training school
 or course provider;
 (3)  the authority for and conditions of approval;
 (4)  the executive director's [commissioner's]
 signature; and
 (5)  any other fair and reasonable representation that
 is consistent with this chapter and that the department
 [commissioner] considers necessary.
 SECTION 147.  Section 1001.212, Education Code, is amended
 to read as follows:
 Sec. 1001.212.  NOTICE OF DENIAL OF LICENSE.  The department
 [commissioner] shall provide a person whose application for a
 license under this subchapter is denied a written statement of the
 reasons for the denial.
 SECTION 148.  Subsections (c) and (d), Section 1001.213,
 Education Code, are amended to read as follows:
 (c)  The commission may establish [Instead of the] fees in
 amounts that are different from the amounts established under
 [required by] Section 1001.151[, the fee] for a new driver
 education school or course provider license under Subsection (b)
 and [is $500, plus $200] for each branch location[,] if:
 (1)  the new owner is substantially similar to the
 previous owner; and
 (2)  there is no significant change in the management
 or control of the driver education school or course provider.
 (d)  The department [commissioner] is not required to
 reinspect a school or a branch location after a change of ownership.
 SECTION 149.  Section 1001.214, Education Code, is amended
 to read as follows:
 Sec. 1001.214.  DUPLICATE LICENSE.  A duplicate license may
 be issued to a driver training school or course provider if:
 (1)  the original license is lost or destroyed; and
 (2)  an affidavit of that fact is filed with the
 department [agency].
 SECTION 150.  Section 1001.251, Education Code, is amended
 to read as follows:
 Sec. 1001.251.  LICENSE REQUIRED FOR INSTRUCTOR.  (a)  A
 person may not teach or provide driver education, either as an
 individual or in a driver education school, or conduct any phase of
 driver education, unless the person holds a driver education
 instructor license issued by the executive director [agency].
 (b)  A person may not teach or provide driving safety
 training, either as an individual or in a driving safety school, or
 conduct any phase of driving safety education, unless the person
 holds a driving safety instructor license issued by the executive
 director [agency]. This subsection does not apply to an instructor
 of a driving safety course that does not provide a uniform
 certificate of course completion to its graduates.
 SECTION 151.  Subsections (b), (c), (d), (e), and (f),
 Section 1001.2511, Education Code, are amended to read as follows:
 (b)  The department [agency] shall review the national
 criminal history record information of a person who holds a license
 described by Subsection (a).
 (c)  The executive director [agency] shall place a license
 described by Subsection (a) on inactive status for the license
 holder's failure to comply with a deadline for submitting
 information required under this section.
 (d)  The department [agency] may allow a person who is
 applying for a license described by Subsection (a) and who
 currently resides in another state to submit the person's
 fingerprints and other required information in a manner that does
 not impose an undue hardship on the person.
 (e)  The commission [commissioner] may adopt rules to
 administer this section, including rules establishing:
 (1)  deadlines for a person to submit fingerprints and
 photographs in compliance with this section;
 (2)  sanctions for a person's failure to comply with the
 requirements of this section, including suspension or revocation of
 or refusal to issue a license described by Subsection (a); and
 (3)  notification to a driver education school of
 relevant information obtained by the department [agency] under this
 section.
 (f)  The department [agency] is not civilly or criminally
 liable for an action taken in compliance with this section.
 SECTION 152.  Section 1001.2512, Education Code, is amended
 to read as follows:
 Sec. 1001.2512.  FEES FOR CRIMINAL HISTORY RECORD
 INFORMATION REVIEW. The commission [commissioner] by rule shall
 require a person submitting to a national criminal history record
 information review under Section 1001.2511 or the driver education
 school employing the person, as determined by the department
 [agency], to pay a fee for the review in an amount not to exceed the
 amount of any fee imposed on an application for certification under
 Subchapter B, Chapter 21, for a national criminal history record
 information review under Section 22.0837.
 SECTION 153.  Subsections (a), (b), and (d), Section
 1001.2514, Education Code, are amended to read as follows:
 (a)  A driver education school shall discharge or refuse to
 hire as an instructor an employee or applicant for employment if the
 department [agency] obtains information through a criminal history
 record information review that:
 (1)  the employee or applicant has been convicted of:
 (A)  a felony offense under Title 5, Penal Code;
 (B)  an offense on conviction of which a defendant
 is required to register as a sex offender under Chapter 62, Code of
 Criminal Procedure; or
 (C)  an offense under the laws of another state or
 federal law that is equivalent to an offense under Paragraph (A) or
 (B); and
 (2)  at the time the offense occurred, the victim of the
 offense described by Subdivision (1) was under 18 years of age or
 was enrolled in a public school.
 (b)  The executive director [agency] shall suspend or revoke
 a license described by Section 1001.2511(a) held by a person under
 this subchapter and shall refuse to issue or renew a license
 described by Section 1001.2511(a) to a person under this subchapter
 if the person has been convicted of an offense described by
 Subsection (a) of this section.
 (d)  A driver education school may discharge an employee who
 serves as an instructor if the school obtains information of the
 employee's conviction of a felony or of a misdemeanor involving
 moral turpitude that the employee did not disclose to the school or
 the department [agency]. An employee discharged under this
 subsection is considered to have been discharged for misconduct for
 purposes of Section 207.044, Labor Code.
 SECTION 154.  Section 1001.252, Education Code, is amended
 to read as follows:
 Sec. 1001.252.  SIGNATURE AND SEAL ON LICENSE REQUIRED.  A
 license under this subchapter must be signed by the executive
 director [commissioner].
 SECTION 155.  Subsections (a), (b), (c), (d), (e), and (f),
 Section 1001.253, Education Code, are amended to read as follows:
 (a)  The department [commissioner] shall establish standards
 for certification of professional and paraprofessional personnel
 who conduct driver education programs in driver education schools.
 (b)  A driver education instructor license authorizing a
 person to teach or provide behind-the-wheel training may not be
 issued unless the person has successfully completed six semester
 hours of driver and traffic safety education or a program of study
 in driver education approved by the department [commissioner] from
 an approved driver education school.
 (c)  A person who holds a driver education instructor license
 authorizing behind-the-wheel training may not be approved to assist
 a classroom instructor in the classroom phase of driver education
 unless the person has successfully completed the three additional
 semester hours of training required for a classroom instructor or a
 program of study in driver education approved by the department
 [commissioner].
 (d)  Except as provided by Subsection (g) or Section
 1001.254, a driver education instructor license authorizing a
 person to teach or provide classroom training may not be issued
 unless the person:
 (1)  has completed nine semester hours of driver and
 traffic safety education or a program of study in driver education
 approved by the department [commissioner] from an approved driver
 education school; and
 (2)  holds a teaching certificate and any additional
 certification required to teach driver education.
 (e)  A driver education instructor who has completed the
 educational requirements prescribed by Subsection (d)(1) may not
 teach instructor training classes unless the instructor has
 successfully completed a supervising instructor development
 program consisting of at least six additional semester hours or a
 program of study in driver education approved by the department
 [commissioner] that includes administering driver education
 programs and supervising and administering traffic safety
 education.
 (f)  A driver education school may submit for department
 [agency] approval a curriculum for an instructor development
 program for driver education instructors. The program must:
 (1)  be taught by a person who has completed a
 supervising instructor development program under Subsection (e);
 and
 (2)  satisfy the requirements of this section for the
 particular program or type of training to be provided.
 SECTION 156.  Subsection (a), Section 1001.254, Education
 Code, is amended to read as follows:
 (a)  A temporary driver education instructor license may be
 issued authorizing a person to teach or provide classroom driver
 education training if the person:
 (1)  has completed the educational requirements
 prescribed by Section 1001.253(d)(1);
 (2)  holds a Texas teaching certificate with an
 effective date before February 1, 1986;
 (3)  meets all license requirements, other than
 successful completion of the examination required under rules
 adopted by the commissioner of education [State Board for Educator
 Certification] to revalidate the teaching certificate; and
 (4)  demonstrates, in a manner prescribed by the
 department [commissioner], the intention to comply with the
 examination requirement at the first available opportunity.
 SECTION 157.  Subsections (a), (b), and (c), Section
 1001.255, Education Code, are amended to read as follows:
 (a)  The department [agency] shall regulate as a driver
 education school a driver education instructor who:
 (1)  teaches driver education courses in a county
 having a population of 50,000 or less; and
 (2)  does not teach more than 200 students annually.
 (b)  An instructor described by Subsection (a) must submit to
 the department [agency] an application for an initial or renewal
 driver education school license, together with all required
 documentation and information.
 (c)  The department [commissioner] may waive initial or
 renewal driver education school license fees or the fee for a
 director or administrative staff member.
 SECTION 158.  Section 1001.256, Education Code, is amended
 to read as follows:
 Sec. 1001.256.  DUPLICATE LICENSE.  A duplicate license may
 be issued to a driver education instructor or driving safety
 instructor if:
 (1)  the original license is lost or destroyed; and
 (2)  an affidavit of that fact is filed with the
 department [agency].
 SECTION 159.  Section 1001.257, Education Code, is amended
 to read as follows:
 Sec. 1001.257.  DENIAL OF LICENSE. The executive director
 [commissioner] may not issue or renew a driver education instructor
 license, including a temporary license, to a person who has six or
 more points assigned to the person's driver's license under
 Subchapter B, Chapter 708, Transportation Code.
 SECTION 160.  Section 1001.303, Education Code, is amended
 to read as follows:
 Sec. 1001.303.  RENEWAL OF SCHOOL OR COURSE PROVIDER
 LICENSE. (a)  To renew the license of a driver education school,
 driving safety school, or course provider, the school or course
 provider must submit to the department [commissioner] a complete
 application for renewal at least 30 days before the expiration date
 of the license.
 (b)  A school or course provider that does not comply with
 Subsection (a) must, as a condition of renewal of the person's
 license, pay a late renewal fee. The late renewal fee is in
 addition to the annual renewal fee. The commission by rule shall
 establish a late renewal fee [must be in the amount established by
 board rule of at least $100, subject to Subchapter D].
 (c)  The department [commissioner] may reexamine a driver
 education school's premises.
 (d)  The executive director [commissioner] shall renew or
 cancel the driver education school, driving safety school, or
 course provider license.
 SECTION 161.  Subsections (b) and (c), Section 1001.304,
 Education Code, are amended to read as follows:
 (b)  The continuing education must be:
 (1)  in courses approved by the department
 [commissioner]; and
 (2)  for the number of hours established by the
 commission [commissioner].
 (c)  An applicant who does not comply with Subsection (a)
 must pay a late renewal fee in the amount established by commission
 rule [of $25].
 SECTION 162.  Subsections (a) and (b), Section 1001.351,
 Education Code, are amended to read as follows:
 (a)  Not later than the 15th working day after the course
 completion date, a course provider or a person at the course
 provider's facilities shall issue and deliver by United States mail
 or commercial delivery a uniform certificate of course completion
 [by mail or commercial delivery] to a person who successfully
 completes an approved driving safety course.
 (b)  A course provider shall electronically submit to the
 department [agency] in the manner established by the department
 [agency] data identified by the department [agency] relating to
 uniform certificates of course completion issued by the course
 provider.
 SECTION 163.  Subsections (a) and (b), Section 1001.354,
 Education Code, are amended to read as follows:
 (a)  A driving safety course may be taught at a driving
 safety school if the school is approved by the department [agency].
 (b)  A driving safety school may teach an approved driving
 safety course by an alternative method that does not require
 students to be present in a classroom if the department
 [commissioner] approves the alternative method. The department
 [commissioner] may approve the alternative method if:
 (1)  the department [commissioner] determines that the
 approved driving safety course can be taught by the alternative
 method; and
 (2)  the alternative method includes testing and
 security measures that are at least as secure as the measures
 available in the usual classroom setting.
 SECTION 164.  Section 1001.3541, Education Code, is amended
 to read as follows:
 Sec. 1001.3541.  ALTERNATIVE METHOD OF INSTRUCTION FOR
 DRIVER EDUCATION COURSE. (a)  A driver education school may teach
 all or part of the classroom portion of an approved driver education
 course by an alternative method of instruction that does not
 require students to be present in a classroom if the department
 [commissioner] approves the alternative method.
 (b)  The department [commissioner] may approve the
 alternative method only if:
 (1)  the alternative method includes testing and
 security measures that the department [commissioner] determines
 are at least as secure as the measures available in the usual
 classroom setting; and
 (2)  the course, with the use of the alternative
 method, satisfies any other requirement applicable to a course in
 which the classroom portion is taught to students in the usual
 classroom setting.
 SECTION 165.  Subsections (b) and (c), Section 1001.404,
 Education Code, are amended to read as follows:
 (b)  The department [commissioner] shall establish annually
 the rate of interest for a refund at a rate sufficient to provide a
 deterrent to the retention of student money.
 (c)  The department [agency] may except a driver education
 school or course provider from the payment of interest if the school
 or course provider makes a good-faith effort to refund tuition,
 fees, and other charges but is unable to locate the student to whom
 the refund is owed. On request of the department [agency], the
 school or course provider shall document the effort to locate a
 student.
 SECTION 166.  Sections 1001.451 and 1001.452, Education
 Code, are amended to read as follows:
 Sec. 1001.451.  PROHIBITED PRACTICES. A person may not:
 (1)  use advertising designed to mislead or deceive a
 prospective student;
 (2)  fail to notify the department [commissioner] of
 the discontinuance of the operation of a driver training school
 before the fourth working day after the date of cessation of classes
 and make available accurate records as required by this chapter;
 (3)  issue, sell, trade, or transfer:
 (A)  a uniform certificate of course completion or
 driver education certificate to a person or driver training school
 not authorized to possess the certificate;
 (B)  a uniform certificate of course completion to
 a person who has not successfully completed an approved, six-hour
 driving safety course; or
 (C)  a driver education certificate to a person
 who has not successfully completed a department-approved
 [commissioner-approved] driver education course;
 (4)  negotiate a promissory instrument received as
 payment of tuition or another charge before the student completes
 75 percent of the course, except that before that time the
 instrument may be assigned to a purchaser who becomes subject to any
 defense available against the school named as payee; or
 (5)  conduct any part of an approved driver education
 course or driving safety course without having an instructor
 physically present in appropriate proximity to the student for the
 type of instruction being given.
 Sec. 1001.452.  COURSE OF INSTRUCTION. A driver training
 school may not maintain, advertise, solicit for, or conduct a
 course of instruction in this state before the later of:
 (1)  the 30th day after the date the school applies for
 a driver training school license; or
 (2)  the date the school receives a driver training
 school license from the department [commissioner].
 SECTION 167.  Subsections (d) and (e), Section 1001.453,
 Education Code, are amended to read as follows:
 (d)  Subchapter F, Chapter 51, Occupations Code, Section
 51.353, Occupations Code, and Sections [1001.454,] 1001.456(a)[,]
 and 1001.553 of this code do not apply to a violation of this
 section or a rule adopted under this section.
 (e)  Section 51.352, Occupations Code, and Sections
 1001.455(a)(6), 1001.501, [1001.551, 1001.552,] and 1001.554 of
 this code do not apply to a violation of this section.
 SECTION 168.  Section 1001.455, Education Code, is amended
 to read as follows:
 Sec. 1001.455.  DENIAL, SUSPENSION, OR REVOCATION OF
 INSTRUCTOR LICENSE. (a)  The executive director [agency] may deny
 an application for an instructor license or suspend or revoke the
 license of an instructor if the instructor:
 (1)  fails to meet a requirement for issuance of or
 holding a license under this chapter;
 (2)  permits fraud or engages in fraudulent practices
 relating to the application;
 (3)  induces or countenances fraud or fraudulent
 practices on the part of an applicant for a driver's license or
 permit;
 (4)  permits or engages in any other fraudulent
 practice in an action between the applicant or license holder and
 the public;
 (5)  fails to comply with commission [agency] rules
 relating to driver instruction; or
 (6)  fails to comply with this chapter.
 (b)  Not later than the 10th day after the date of a denial,
 suspension, or revocation under this section, the department
 [agency] shall notify the applicant or license holder of that
 action by certified mail.
 SECTION 169.  Section 1001.456, Education Code, is amended
 to read as follows:
 Sec. 1001.456.  OTHER DISCIPLINARY ACTIONS.  (a)  If the
 executive director [agency] believes that a driver education school
 or instructor has violated this chapter or a rule adopted under this
 chapter, the executive director [agency] may, without notice:
 (1)  order a peer review;
 (2)  suspend the enrollment of students in the school
 or the offering of instruction by the instructor; or
 (3)  suspend the right to purchase driver education
 certificates.
 (b)  If the executive director [agency] believes that a
 course provider, driving safety school, or driving safety
 instructor has violated this chapter or a rule adopted under this
 chapter, the executive director [agency] may, without notice:
 (1)  order a peer review of the course provider,
 driving safety school, or driving safety instructor;
 (2)  suspend the enrollment of students in the school
 or the offering of instruction by the instructor; or
 (3)  suspend the right to purchase course completion
 certificate numbers.
 (c)  A peer review ordered under this section must be
 conducted by a team of knowledgeable persons selected by the
 department [agency]. The team shall provide the department
 [agency] with an objective assessment of the content of the
 school's or course provider's curriculum and its application. The
 school or course provider shall pay the costs of the peer review.
 (d)  A suspension of enrollment under Subsection (a)(2) or
 (b)(2) means a ruling by the executive director [commissioner] that
 restricts a school from:
 (1)  accepting enrollments or reenrollments;
 (2)  advertising;
 (3)  soliciting; or
 (4)  directly or indirectly advising prospective
 students of its program or course offerings.
 SECTION 170.  Section 1001.458, Education Code, is amended
 to read as follows:
 Sec. 1001.458.  SURRENDER OF LICENSE. (a)  A license holder
 whose license is suspended or revoked shall surrender the license
 to the department [agency] not later than the fifth day after the
 date of suspension or revocation.
 (b)  The department [agency] may reinstate a suspended
 license on full compliance by the license holder with this chapter.
 SECTION 171.  Section 1001.459, Education Code, is amended
 to read as follows:
 Sec. 1001.459.  APPEAL AND REQUEST FOR HEARING. (a)  A
 person aggrieved by a denial, suspension, or revocation of a
 license may appeal the action and request a hearing before the State
 Office of Administrative Hearings, which shall promptly set a
 hearing date and give written notice of the time and place of the
 hearing to the person.  An administrative law judge of the State
 Office of Administrative Hearings shall conduct the hearing
 [commissioner].
 (b)  The administrative law judge shall make findings of fact
 and conclusions of law and promptly issue to the commission a
 proposal for a decision about the appealed action [request must be
 submitted not later than the 15th day after the date the person
 receives notice under Section 1001.455. On receipt of a request for
 a hearing, the commissioner shall set a time and place for the
 hearing and send notice of the time and place to the aggrieved
 person].
 SECTION 172.  Subsections (a), (b), and (c), Section
 1001.553, Education Code, are amended to read as follows:
 (a)  After an opportunity for a hearing, the executive
 director or commission [commissioner] may impose an administrative
 penalty on a person who violates this chapter or a rule adopted
 under this chapter.
 (b)  The amount of the penalty may not exceed $5,000 [$1,000]
 a day for each violation.
 (c)  An administrative penalty under this section shall be
 imposed and collected as provided by Subchapter F, Chapter 51,
 Occupations Code.  [The attorney general, at the request of the
 agency, may bring an action to collect the penalty.]
 SECTION 173.  Subsection (b), Section 1001.555, Education
 Code, is amended to read as follows:
 (b)  The department [agency] shall contract with the
 Department of Public Safety [department] to provide undercover and
 investigative assistance in the enforcement of Subsection (a).
 SECTION 174.  Subsections (a) and (l), Article 15.27, Code
 of Criminal Procedure, are amended to read as follows:
 (a)  A law enforcement agency that arrests any person or
 refers a child to the office or official designated by the juvenile
 board who the agency believes is enrolled as a student in a public
 primary or secondary school, for an offense listed in Subsection
 (h), shall attempt to ascertain whether the person is so enrolled.
 If the law enforcement agency ascertains that the individual is
 enrolled as a student in a public primary or secondary school, the
 head of the agency or a person designated by the head of the agency
 shall orally notify the superintendent or a person designated by
 the superintendent in the school district in which the student is
 enrolled of that arrest or referral within 24 hours after the arrest
 or referral is made, or before the next school day, whichever is
 earlier.  If the law enforcement agency cannot ascertain whether
 the individual is enrolled as a student, the head of the agency or a
 person designated by the head of the agency shall orally notify the
 superintendent or a person designated by the superintendent in the
 school district in which the student is believed to be enrolled of
 that arrest or detention within 24 hours after the arrest or
 detention, or before the next school day, whichever is earlier.  If
 the individual is a student, the superintendent or the
 superintendent's designee shall immediately notify all
 instructional and support personnel who have responsibility for
 supervision of the student.  All personnel shall keep the
 information received in this subsection confidential.  The
 commissioner of education [State Board for Educator Certification]
 may revoke or suspend the certification of personnel who
 intentionally violate this subsection.  Within seven days after the
 date the oral notice is given, the head of the law enforcement
 agency or the person designated by the head of the agency shall mail
 written notification, marked "PERSONAL and CONFIDENTIAL" on the
 mailing envelope, to the superintendent or the person designated by
 the superintendent.  The written notification must include the
 facts contained in the oral notification, the name of the person who
 was orally notified, and the date and time of the oral notification.
 Both the oral and written notice shall contain sufficient details
 of the arrest or referral and the acts allegedly committed by the
 student to enable the superintendent or the superintendent's
 designee to determine whether there is a reasonable belief that the
 student has engaged in conduct defined as a felony offense by the
 Penal Code.  The information contained in the notice shall be
 considered by the superintendent or the superintendent's designee
 in making such a determination.
 (l)  If a school district board of trustees learns of a
 failure by the superintendent of the district or a district
 principal to provide a notice required under Subsection (a), (a-1),
 or (b), the board of trustees shall report the failure to the
 commissioner of education [State Board for Educator
 Certification].  If the governing body of a private primary or
 secondary school learns of a failure by the principal of the school
 to provide a notice required under Subsection (e), and the
 principal holds a certificate issued under Subchapter B, Chapter
 21, Education Code, the governing body shall report the failure to
 the commissioner of education [State Board for Educator
 Certification].
 SECTION 175.  Subsection (b), Article 42.018, Code of
 Criminal Procedure, is amended to read as follows:
 (b)  Not later than the fifth day after the date a person who
 holds a certificate issued under Subchapter B, Chapter 21,
 Education Code, is convicted or granted deferred adjudication on
 the basis of an offense, the clerk of the court in which the
 conviction or deferred adjudication is entered shall provide to the
 commissioner of education [State Board for Educator Certification]
 written notice of the person's conviction or deferred adjudication,
 including the offense on which the conviction or deferred
 adjudication was based.
 SECTION 176.  Subsection (b), Article 45.0511, Code of
 Criminal Procedure, is amended to read as follows:
 (b)  The judge shall require the defendant to successfully
 complete a driving safety course approved by the Texas Department
 of Licensing and Regulation [Education Agency] or a course under
 the motorcycle operator training and safety program approved by the
 designated state agency under Chapter 662, Transportation Code, if:
 (1)  the defendant elects driving safety course or
 motorcycle operator training course dismissal under this article;
 (2)  the defendant:
 (A)  has not completed an approved driving safety
 course or motorcycle operator training course, as appropriate,
 within the 12 months preceding the date of the offense; or
 (B)  does not have a valid Texas driver's license
 or permit, is a member, or the spouse or dependent child of a
 member, of the United States military forces serving on active
 duty, and has not completed a driving safety course or motorcycle
 operator training course, as appropriate, in another state within
 the 12 months preceding the date of the offense;
 (3)  the defendant enters a plea under Article 45.021
 in person or in writing of no contest or guilty on or before the
 answer date on the notice to appear and:
 (A)  presents in person or by counsel to the court
 a request to take a course; or
 (B)  sends to the court by certified mail, return
 receipt requested, postmarked on or before the answer date on the
 notice to appear, a written request to take a course;
 (4)  the defendant:
 (A)  has a valid Texas driver's license or permit;
 or
 (B)  is a member, or the spouse or dependent child
 of a member, of the United States military forces serving on active
 duty;
 (5)  the defendant is charged with an offense to which
 this article applies, other than speeding at a speed of:
 (A)  95 miles per hour or more; or
 (B)  25 miles per hour or more over the posted
 speed limit; and
 (6)  the defendant provides evidence of financial
 responsibility as required by Chapter 601, Transportation Code.
 SECTION 177.  Subsections (d) and (e), Section 261.308,
 Family Code, are amended to read as follows:
 (d)  The department shall release information regarding a
 person alleged to have committed abuse or neglect to persons who
 have control over the person's access to children, including, as
 appropriate, the Texas Education Agency, [the State Board for
 Educator Certification,] the local school board or the school's
 governing body, the superintendent of the school district, or the
 school principal or director if the department determines that:
 (1)  the person alleged to have committed abuse or
 neglect poses a substantial and immediate risk of harm to one or
 more children outside the family of a child who is the subject of
 the investigation; and
 (2)  the release of the information is necessary to
 assist in protecting one or more children from the person alleged to
 have committed abuse or neglect.
 (e)  On request, the department shall release information
 about a person alleged to have committed abuse or neglect to the
 commissioner of education [State Board for Educator Certification]
 if the commissioner [board] has a reasonable basis for believing
 that the information is necessary to assist the commissioner
 [board] in protecting children from the person alleged to have
 committed abuse or neglect.
 SECTION 178.  Subsection (b), Section 261.406, Family Code,
 is amended to read as follows:
 (b)  The department shall send a copy of the completed report
 of the department's investigation to the Texas Education Agency,
 [the State Board for Educator Certification,] the local school
 board or the school's governing body, the superintendent of the
 school district, and the school principal or director, unless the
 principal or director is alleged to have committed the abuse or
 neglect, for appropriate action.  On request, the department shall
 provide a copy of the report of investigation to the parent,
 managing conservator, or legal guardian of a child who is the
 subject of the investigation and to the person alleged to have
 committed the abuse or neglect.  The report of investigation shall
 be edited to protect the identity of the persons who made the report
 of abuse or neglect.  Other than the persons authorized by the
 section to receive a copy of the report, Section 261.201(b) applies
 to the release of the report relating to the investigation of abuse
 or neglect under this section and to the identity of the person who
 made the report of abuse or neglect.
 SECTION 179.  Subsection (i), Section 411.081, Government
 Code, is amended to read as follows:
 (i)  A criminal justice agency may disclose criminal history
 record information that is the subject of an order of nondisclosure
 under Subsection (d) to the following noncriminal justice agencies
 or entities only:
 (1)  [the State Board for Educator Certification;
 [(2)]  a school district, charter school, private
 school, regional education service center, commercial
 transportation company, or education shared service arrangement;
 (2) [(3)]  the Texas Medical Board;
 (3) [(4)]  the Texas School for the Blind and Visually
 Impaired;
 (4) [(5)]  the Board of Law Examiners;
 (5) [(6)]  the State Bar of Texas;
 (6) [(7)]  a district court regarding a petition for
 name change under Subchapter B, Chapter 45, Family Code;
 (7) [(8)]  the Texas School for the Deaf;
 (8) [(9)]  the Department of Family and Protective
 Services;
 (9) [(10)]  the Texas Juvenile Justice Department
 [Youth Commission];
 (10) [(11)]  the Department of Assistive and
 Rehabilitative Services;
 (11) [(12)]  the Department of State Health Services, a
 local mental health service, a local mental retardation authority,
 or a community center providing services to persons with mental
 illness or retardation;
 (12) [(13)]  the Texas Private Security Board;
 (13) [(14)]  a municipal or volunteer fire department;
 (14) [(15)]  the Texas Board of Nursing;
 (15) [(16)]  a safe house providing shelter to children
 in harmful situations;
 (16) [(17)]  a public or nonprofit hospital or hospital
 district;
 (17) [(18)  the Texas Juvenile Probation Commission;
 [(19)]  the securities commissioner, the banking
 commissioner, the savings and mortgage lending commissioner, the
 consumer credit commissioner, or the credit union commissioner;
 (18) [(20)]  the Texas State Board of Public
 Accountancy;
 (19) [(21)]  the Texas Department of Licensing and
 Regulation;
 (20) [(22)]  the Health and Human Services Commission;
 (21) [(23)]  the Department of Aging and Disability
 Services;
 (22) [(24)]  the Texas Education Agency;
 (23) [(25)]  the Guardianship Certification Board;
 (24) [(26)]  a county clerk's office in relation to a
 proceeding for the appointment of a guardian under Chapter XIII,
 Texas Probate Code;
 (25) [(27)]  the Department of Information Resources
 but only regarding an employee, applicant for employment,
 contractor, subcontractor, intern, or volunteer who provides
 network security services under Chapter 2059 to:
 (A)  the Department of Information Resources; or
 (B)  a contractor or subcontractor of the
 Department of Information Resources;
 (26) [(28)]  the Court Reporters Certification Board;
 (27) [(29)]  the Texas Department of Insurance; and
 (28) [(30)]  the Teacher Retirement System of Texas.
 SECTION 180.  Section 411.0901, Government Code, is amended
 to read as follows:
 Sec. 411.0901.  ACCESS TO CRIMINAL HISTORY RECORD
 INFORMATION:  TEXAS EDUCATION AGENCY. (a)  The Texas Education
 Agency is entitled to obtain criminal history record information
 maintained by the department about a person who:
 (1)  has applied to the commissioner of education for a
 certificate under Subchapter B, Chapter 21, Education Code;
 (2)  is employed or is an applicant for employment by a
 school district or open-enrollment charter school;
 (3) [(2)]  is employed or is an applicant for
 employment by a shared services arrangement, if the employee's or
 applicant's duties are or will be performed on school property or at
 another location where students are regularly present; or
 (4) [(3)]  is employed or is an applicant for
 employment by an entity that contracts with a school district,
 open-enrollment charter school, or shared services arrangement if:
 (A)  the employee or applicant has or will have
 continuing duties relating to the contracted services; and
 (B)  the employee or applicant has or will have
 direct contact with students.
 (b)  Criminal history record information obtained by the
 agency in the original form or any subsequent form:
 (1)  may be used only for a purpose authorized by the
 Education Code;
 (2)  may not be released to any person except:
 (A)  the person who is the subject of the
 information;
 (B)  [the State Board for Educator Certification;
 [(C)]  a local or regional educational entity as
 provided by Section 411.097; or
 (C) [(D)]  by court order;
 (3)  is not subject to disclosure as provided by
 Chapter 552; and
 (4)  shall be destroyed by the agency after the
 information is used for the authorized purposes.
 (c)  The department shall notify the agency of the arrest of
 any educator, as defined by Section 5.001, Education Code, who has
 fingerprints on file with the department.  Any record of the
 notification and any information contained in the notification are
 not subject to disclosure as provided by Chapter 552.
 SECTION 181.  Subsection (d), Section 411.097, Government
 Code, is amended to read as follows:
 (d)  Criminal history record information obtained by a
 school district, charter school, private school, service center,
 commercial transportation company, or shared services arrangement
 in the original form or any subsequent form:
 (1)  may not be released to any person except:
 (A)  the individual who is the subject of the
 information;
 (B)  the Texas Education Agency;
 (C)  [the State Board for Educator Certification;
 [(D)]  the chief personnel officer of the
 transportation company, if the information is obtained under
 Subsection (a)(2); or
 (D) [(E)]  by court order;
 (2)  is not subject to disclosure as provided by
 Chapter 552; and
 (3)  shall be destroyed by the school district, charter
 school, private school, service center, commercial transportation
 company, or shared services arrangement on the earlier of:
 (A)  the first anniversary of the date the
 information was originally obtained; or
 (B)  the date the information is used for the
 authorized purpose.
 SECTION 182.  Subsection (a), Section 654.011, Government
 Code, is amended to read as follows:
 (a)  The position classification plan and the salary rates
 and provisions in the General Appropriations Act apply to all
 hourly, part-time, temporary, and regular, full-time salaried
 employments in the state departments, agencies, or judicial
 entities specified in the articles of the General Appropriations
 Act that appropriate money to:
 (1)  general government agencies;
 (2)  health and human services agencies;
 (3)  the judiciary, except for judges, district
 attorneys, and assistant district attorneys;
 (4)  public safety and criminal justice agencies;
 (5)  natural resources agencies;
 (6)  business and economic development agencies;
 (7)  regulatory agencies; and
 (8)  agencies of public education, but only the Texas
 Education Agency, the Texas School for the Blind and Visually
 Impaired, [the State Board for Educator Certification,] and the
 Texas School for the Deaf.
 SECTION 183.  Subdivision (7), Section 821.001, Government
 Code, is amended to read as follows:
 (7)  "Employer" means any agents or agencies in the
 state responsible for public education, including the governing
 board of any school district created under the laws of this state,
 any county school board, the board of trustees, the board of regents
 of any college or university, or any other legally constituted
 board or agency of any public school, but excluding the State Board
 of Education and[,] the Texas Education Agency[, and the State
 Board for Educator Certification].
 SECTION 184.  Section 821.103, Government Code, is amended
 to read as follows:
 Sec. 821.103.  CANCELLATION OF TEACHER CERTIFICATE.
 (a)  After receiving notice from the board of trustees of an
 offense under Section 821.101 and after complying with Chapter 2001
 and rules adopted by the commissioner of education [State Board for
 Educator Certification], the commissioner [State Board for
 Educator Certification] may cancel the teacher certificate of a
 person if the commissioner [State Board for Educator Certification]
 determines that the person committed the offense.
 (b)  The commissioner of education [executive director of
 the State Board for Educator Certification] may enter into an
 agreed sanction.
 (c)  A criminal prosecution of an offender under Section
 821.101 is not a prerequisite to action by the Texas Education
 Agency [State Board for Educator Certification] or the commissioner
 of education [its executive director].
 SECTION 185.  Subsection (a), Section 2054.352, Government
 Code, is amended to read as follows:
 (a)  The following licensing entities shall participate in
 the system established under Section 2054.353:
 (1)  Texas Board of Chiropractic Examiners;
 (2)  Court Reporters Certification Board;
 (3)  State Board of Dental Examiners;
 (4)  Texas Funeral Service Commission;
 (5)  Texas Board of Professional Land Surveying;
 (6)  Texas Medical Board;
 (7)  Texas Board of Nursing;
 (8)  Texas Optometry Board;
 (9)  Department of Agriculture, for licenses issued
 under Chapter 1951, Occupations Code;
 (10)  Texas State Board of Pharmacy;
 (11)  Executive Council of Physical Therapy and
 Occupational Therapy Examiners;
 (12)  Texas State Board of Plumbing Examiners;
 (13)  Texas State Board of Podiatric Medical Examiners;
 (14)  Texas State Board of Examiners of Psychologists;
 (15)  State Board of Veterinary Medical Examiners;
 (16)  Texas Real Estate Commission;
 (17)  Texas Appraiser Licensing and Certification
 Board;
 (18)  Texas Department of Licensing and Regulation;
 (19)  Texas State Board of Public Accountancy;
 (20)  commissioner of education, for certificates
 issued under Subchapter B, Chapter 21, Education Code [State Board
 for Educator Certification];
 (21)  Texas Board of Professional Engineers;
 (22)  Department of State Health Services;
 (23)  Texas Board of Architectural Examiners;
 (24)  Texas Racing Commission;
 (25)  Commission on Law Enforcement Officer Standards
 and Education; and
 (26)  Texas Private Security Board.
 SECTION 186.  Subsection (a), Section 48.102, Human
 Resources Code, is amended to read as follows:
 (a)  The department shall send a written report of the
 department's investigation of alleged abuse, neglect, or
 exploitation of a disabled adult at a school, as appropriate, to the
 Texas Education Agency, [the agency responsible for teacher
 certification,] the local school board or the school's governing
 body, and the school principal or director, unless the principal or
 director is alleged to have committed the abuse, neglect, or
 exploitation. The entity to which the report is sent shall take
 appropriate action.
 SECTION 187.  Subtitle B, Title 4, Labor Code, is amended by
 adding Chapter 315 to read as follows:
 CHAPTER 315.  ADULT EDUCATION PROGRAMS
 Sec. 315.001.  DEFINITIONS.  In this chapter:
 (1)  "Adult" means any individual who is over the age of
 compulsory school attendance prescribed by Section 25.085,
 Education Code.
 (2)  "Adult education" means services and instruction
 provided below the college level for adults by public local
 education agencies, public nonprofit agencies, or community-based
 organizations.
 (3)  "Community-based organization" has the meaning
 assigned by 20 U.S.C. Section 7801.
 Sec. 315.002.  COMMISSION DUTIES.  (a)  The commission
 shall:
 (1)  provide adequate staffing to develop, administer,
 and support a comprehensive statewide adult education program and
 coordinate related federal and state programs for the education and
 training of adults;
 (2)  develop the mechanism and guidelines for the
 coordination of comprehensive adult education and related skill
 training services for adults with other entities, including public
 agencies and private organizations, in planning, developing, and
 implementing related programs;
 (3)  administer all state and federal funds for adult
 education and related skill training services in this state, other
 than funds that another entity is specifically authorized to
 administer under other law;
 (4)  prescribe and administer standards and
 accrediting policies for adult education;
 (5)  prescribe and administer rules for teacher
 certification for adult education;
 (6)  accept and administer grants, gifts, services, and
 funds from available sources for use in adult education;
 (7)  adopt or develop and administer a standardized
 assessment mechanism for assessing all adult education program
 participants who need literacy instruction, adult basic education,
 or secondary education leading to an adult high school diploma or
 the equivalent;
 (8)  monitor and evaluate educational and employment
 outcomes of students who participate in the commission's adult
 education and literacy programs; and
 (9)  collaborate with the Texas Education Agency to
 improve the coordination and implementation of adult education and
 literacy services in this state.
 (b)  The assessment mechanism prescribed by Subsection
 (a)(7) must include an initial basic skills screening instrument
 and must provide comprehensive information concerning baseline
 student skills before and student progress after participation in
 an adult education program.
 (c)  The commission may adopt rules for the administration of
 this chapter.
 Sec. 315.003.  PROVISION OF ADULT EDUCATION PROGRAMS.  Adult
 education programs must be provided by public school districts,
 public junior colleges, public universities, public nonprofit
 agencies, and community-based organizations approved in accordance
 with state statutes and rules adopted by the commission. The
 programs must be designed to meet the education and training needs
 of adults to the extent possible using available public and private
 resources. Bilingual education may be used to instruct students
 who do not function satisfactorily in English whenever it is
 appropriate for those students' optimum development.
 Sec. 315.004.  ADULT EDUCATION ASSESSMENT.  The commission
 shall, in consultation with the Texas Higher Education Coordinating
 Board, review the standardized assessment mechanism required under
 Section 315.002(a)(7) and recommend any changes necessary to align
 the assessment with the assessments designated under Section
 51.3062, Education Code, to allow for the proper placement of a
 student in an adult basic education course or to provide the student
 with the proper developmental or English as a second language
 course work, as appropriate.
 Sec. 315.005.  ADULT EDUCATION ADVISORY COMMITTEE.  (a)  In
 this section, "advisory committee" means the adult education
 advisory committee created under this section.
 (b)  The commission shall establish an adult education
 advisory committee composed of not more than seven members
 appointed by the commission. Members of the advisory committee
 must have expertise in the field of adult education and may include
 adult educators, providers, advocates, and current or former adult
 education program students.
 (c)  The advisory committee shall advise the commission on:
 (1)  the development of policies and program priorities
 that support the development of an educated and skilled workforce
 in this state; and
 (2)  any other issue the commission considers
 appropriate.
 Sec. 315.006.  STATE FUNDING.  (a)  Funds shall be
 appropriated to implement statewide adult basic education, adult
 bilingual education, high school equivalency, and high school
 credit programs to eliminate illiteracy in this state and to
 implement and support a statewide program to meet the total range of
 adult needs for adult education and related skill training.  The
 commission shall ensure that public local education agencies,
 public nonprofit agencies, and community-based organizations have
 direct and equitable access to those funds.
 (b)  In addition to any amount appropriated under Subsection
 (a), the legislature may appropriate an additional amount to the
 commission for the purpose of skill training in direct support of
 industrial expansion and new business development in locations,
 industries, and occupations designated by the commission, if the
 training supports the basic purposes of this chapter. To support
 the basic purposes of this chapter, the legislature may also
 appropriate an additional amount to the commission for skill
 training that is conducted to support the expansion of civilian
 employment opportunities on United States military reservations.
 Sec. 315.007.  SERVICE PROVIDER CONTRACTS: COMPETITIVE
 PROCUREMENT REQUIREMENT.  (a)  The commission shall use a
 competitive procurement process to award a contract to a service
 provider of an adult education program.
 (b)  The commission shall adopt rules to administer this
 section.
 SECTION 188.  Subsection (g), Section 302.062, Labor Code,
 is amended to read as follows:
 (g)  Block grant funding under this section does not apply
 to:
 (1)  the work and family policies program under Chapter
 81;
 (2)  a program under the skills development fund
 created under Chapter 303;
 (3)  the job counseling program for displaced
 homemakers under Chapter 304;
 (4)  the Communities In Schools program under
 Subchapter E, Chapter 33, Education Code, to the extent that funds
 are available to the commission for that program;
 (5)  the reintegration of offenders program under
 Chapter 306;
 (6)  apprenticeship programs under Chapter 133,
 Education Code;
 (7)  the continuity of care program under Section
 501.095, Government Code;
 (8)  employment programs under Chapter 31, Human
 Resources Code;
 (9)  the senior citizens employment program under
 Chapter 101, Human Resources Code;
 (10)  the programs described by Section 302.021(b)(2);
 (11)  the community service program under the National
 and Community Service Act of 1990 (42 U.S.C. Section 12501 et seq.);
 (12)  the trade adjustment assistance program under
 Part 2, Subchapter II, Trade Act of 1974 (19 U.S.C. Section 2271 et
 seq.);
 (13)  the programs to enhance the employment
 opportunities of veterans; [and]
 (14)  the functions of the State Occupational
 Information Coordinating Committee; and
 (15)  the adult education program under Chapter 315.
 SECTION 189.  Subsection (b), Section 504.002, Occupations
 Code, is amended to read as follows:
 (b)  This chapter does not apply to an activity or service of
 a person who:
 (1)  is employed as a counselor by a federal
 institution and is providing chemical dependency counseling within
 the scope of the person's employment;
 (2)  except as provided by Section 504.1515, is a
 student, intern, or trainee pursuing a supervised course of study
 in counseling at a regionally accredited institution of higher
 education or training institution, if the person:
 (A)  is designated as a "counselor intern"; and
 (B)  is engaging in the activity or providing the
 service as part of the course of study;
 (3)  is not a resident of this state, if the person:
 (A)  engages in the activity or provides the
 service in this state for not more than 30 days during any year; and
 (B)  is authorized to engage in the activity or
 provide the service under the law of the state of the person's
 residence;
 (4)  is a licensed physician, psychologist,
 professional counselor, or social worker;
 (5)  is a religious leader of a congregation providing
 pastoral chemical dependency counseling within the scope of the
 person's duties;
 (6)  is working for or providing counseling with a
 program exempt under Subchapter C, Chapter 464, Health and Safety
 Code;
 (7)  is a school counselor certified by the
 commissioner of education [State Board for Educator
 Certification]; or
 (8)  provides chemical dependency counseling through a
 program or in a facility that receives funding from the Texas
 Department of Criminal Justice and who is credentialed as:
 (A)  a certified criminal justice addictions
 professional by the International Certification and Reciprocity
 Consortium; or
 (B)  having certified criminal justice
 professional applicant status issued by the Texas Certification
 Board of Addiction Professionals.
 SECTION 190.  Subsection (b), Section 501.004,
 Transportation Code, is amended to read as follows:
 (b)  This chapter does not apply to:
 (1)  a trailer or semitrailer used only for the
 transportation of farm products if the products are not transported
 for hire;
 (2)  the filing or recording of a lien that is created
 only on an automobile accessory, including a tire, radio, or
 heater;
 (3)  a motor vehicle while it is owned or operated by
 the United States; or
 (4)  a new motor vehicle on loan to a political
 subdivision of the state for use only in a driver education course
 approved by the Texas Department of Licensing and Regulation
 [Central Education Agency].
 SECTION 191.  Section 521.1601, Transportation Code, as
 added by Chapter 1253 (H.B. 339), Acts of the 81st Legislature,
 Regular Session, 2009, is amended to read as follows:
 Sec. 521.1601.  DRIVER EDUCATION REQUIRED.  The department
 may not issue a driver's license to a person who is younger than 21
 years of age unless the person submits to the department a driver
 education certificate issued under Chapter 1001, Education Code,
 that states that the person has completed and passed:
 (1)  a driver education and traffic safety course
 approved by the Texas Department of Licensing and Regulation
 [Education Agency] under Section 29.902, Education Code, or a
 driver education course approved by the Texas Department of
 Licensing and Regulation [that agency] under Section 1001.101 of
 that code or approved by the department under Section 521.205; or
 (2)  if the person is 18 years of age or older, a driver
 education course approved by the Texas Department of Licensing and
 Regulation [Education Agency] under Section 1001.101 or 1001.1015,
 Education Code.
 SECTION 192.  Section 521.1601, Transportation Code, as
 added by Chapter 1413 (S.B. 1317), Acts of the 81st Legislature,
 Regular Session, 2009, is amended to read as follows:
 Sec. 521.1601.  DRIVER EDUCATION REQUIRED.  The department
 may not issue a driver's license to a person who is younger than 25
 years of age unless the person submits to the department a driver
 education certificate issued under Chapter 1001, Education Code,
 that states that the person has completed and passed:
 (1)  a driver education and traffic safety course
 approved by the Texas Department of Licensing and Regulation
 [Education Agency] under Section 29.902, Education Code, or a
 driver education course approved by the Texas Department of
 Licensing and Regulation [that agency] under Section 1001.101
 [1001.101(a)(1)] of that code or approved by the department under
 Section 521.205; or
 (2)  if the person is 18 years of age or older, a driver
 education course approved by the Texas Department of Licensing and
 Regulation [Education Agency] under Section 1001.101 or 1001.1015
 [Section 1001.101(a)(1) or (2)], Education Code.
 SECTION 193.  Subsection (a), Section 521.1655,
 Transportation Code, is amended to read as follows:
 (a)  A driver education school licensed under Chapter 1001,
 Education Code, [the Texas Driver and Traffic Safety Education Act
 (Article 4413(29c), Vernon's Texas Civil Statutes)] may administer
 to a student of that school the vision, highway sign, and traffic
 law parts of the examination required by Section 521.161.
 SECTION 194.  Section 521.167, Transportation Code, as added
 by Chapter 1253 (H.B. 339), Acts of the 81st Legislature, Regular
 Session, 2009, is amended to read as follows:
 Sec. 521.167.  WAIVER OF CERTAIN EDUCATION AND EXAMINATION
 REQUIREMENTS. A person who has completed and passed a driver
 education course approved by the Texas Department of Licensing and
 Regulation [Education Agency] under Section 1001.1015, Education
 Code, is not required to take the highway sign and traffic law parts
 of the examination required under Section 521.161 if those parts
 have been successfully completed as determined by a licensed driver
 education instructor.
 SECTION 195.  Section 521.203, Transportation Code, is
 amended to read as follows:
 Sec. 521.203.  RESTRICTIONS ON CLASS A AND B LICENSES.  The
 department may not issue a Class A or Class B driver's license to a
 person who:
 (1)  is under 17 years of age;
 (2)  is under 18 years of age unless the person has
 completed a driver training course approved by the Texas Department
 of Licensing and Regulation [Central Education Agency]; or
 (3)  has not provided the department with an affidavit,
 on a form prescribed by the department, that states that no vehicle
 that the person will drive that requires a Class A or Class B
 license is a commercial motor vehicle as defined by Section
 522.003.
 SECTION 196.  Subsection (a), Section 521.204,
 Transportation Code, is amended to read as follows:
 (a)  The department may issue a Class C driver's license to
 an applicant under 18 years of age only if the applicant:
 (1)  is 16 years of age or older;
 (2)  has submitted to the department a driver education
 certificate issued under Section 1001.055, Education Code, that
 states that the person has completed and passed a driver education
 course approved by the department under Section 521.205 or by the
 Texas Department of Licensing and Regulation [Education Agency];
 (3)  has obtained a high school diploma or its
 equivalent or is a student:
 (A)  enrolled in a public school, home school, or
 private school who attended school for at least 80 days in the fall
 or spring semester preceding the date of the driver's license
 application; or
 (B)  who has been enrolled for at least 45 days,
 and is enrolled as of the date of the application, in a program to
 prepare persons to pass the high school equivalency exam;
 (4)  has submitted to the department written parental
 or guardian permission:
 (A)  for the department to access the applicant's
 school enrollment records maintained by the Texas Education Agency;
 and
 (B)  for a school administrator or law enforcement
 officer to notify the department in the event that the person has
 been absent from school for at least 20 consecutive instructional
 days; and
 (5)  has passed the examination required by Section
 521.161.
 SECTION 197.  Subsections (b) and (d), Section 521.205,
 Transportation Code, are amended to read as follows:
 (b)  The department may not approve a course unless it
 determines that the course materials are at least equal to those
 required in a course approved by the Texas Department of Licensing
 and Regulation [Education Agency], except that the department may
 not require that:
 (1)  the classroom instruction be provided in a room
 with particular characteristics or equipment; or
 (2)  the vehicle used for the behind-the-wheel
 instruction have equipment other than the equipment otherwise
 required by law for operation of the vehicle on a highway while the
 vehicle is not being used for driver training.
 (d)  Completion of a driver education course approved under
 this section has the same effect under this chapter as completion of
 a driver education course approved by the Texas Department of
 Licensing and Regulation [Education Agency].
 SECTION 198.  Subsections (a) and (c), Section 521.222,
 Transportation Code, are amended to read as follows:
 (a)  The department or a driver education school licensed
 under Chapter 1001, Education Code, [the Texas Driver and Traffic
 Safety Education Act (Article 4413(29c), Vernon's Texas Civil
 Statutes)] may issue an instruction permit, including a Class A or
 Class B driver's license instruction permit, to a person who:
 (1)  is 15 years of age or older but under 18 years of
 age;
 (2)  has satisfactorily completed and passed the
 classroom phase of an approved driver education course, which may
 be a course approved under Section 521.205;
 (3)  meets the requirements imposed under Section
 521.204(a)(3) [521.204(3)]; and
 (4)  has passed each examination required under Section
 521.161 other than the driving test.
 (c)  A driver education school may issue an instruction
 permit to a person 18 years of age or older who has successfully
 passed:
 (1)  a six-hour adult classroom driver education course
 approved by the Texas Department of Licensing and Regulation
 [Education Agency]; and
 (2)  each part of the driver's examination required by
 Section 521.161 other than the driving test.
 SECTION 199.  Sections 543.111 and 543.112, Transportation
 Code, are amended to read as follows:
 Sec. 543.111.  REGULATION BY CERTAIN STATE AGENCIES.
 (a)  The Texas Commission of Licensing and Regulation [State Board
 of Education] shall enter into a memorandum of understanding with
 the Texas Department of Insurance for the interagency development
 of a curriculum for driving safety courses.
 (b)  The Texas Commission of Licensing and Regulation and
 Texas Department of Licensing and Regulation, as appropriate,
 [Education Agency] shall:
 (1)  adopt and administer comprehensive rules
 governing driving safety courses; and
 (2)  investigate options to develop and implement
 procedures to electronically transmit information pertaining to
 driving safety courses to municipal and justice courts.
 Sec. 543.112.  STANDARDS FOR UNIFORM CERTIFICATE OF COURSE
 COMPLETION.  (a)  The Texas Commission of Licensing and Regulation
 [Education Agency] by rule shall provide for the design and
 distribution of uniform certificates of course completion so as to
 prevent to the greatest extent possible the unauthorized production
 or misuse of the certificates.
 (b)  The uniform certificate of course completion must
 include an identifying number by which the Texas Department of
 Licensing and Regulation [Education Agency], the court, or the
 department may verify its authenticity with the course provider and
 must be in a form adopted by the Texas Department of Licensing and
 Regulation [Education Agency].
 (c)  The Texas Department of Licensing and Regulation
 [Education Agency] shall issue duplicate uniform certificates of
 course completion. The Texas Commission of Licensing and
 Regulation [State Board of Education] by rule shall determine the
 amount of the fee to be charged for issuance of a duplicate
 certificate.
 (d)  A driving safety course provider shall electronically
 submit data identified by the Texas Department of Licensing and
 Regulation [Education Agency] pertaining to issued uniform
 certificates of course completion to the Texas Department of
 Licensing and Regulation [agency] as directed by the Texas
 Department of Licensing and Regulation [agency].
 SECTION 200.  Subsections (a) and (c), Section 543.113,
 Transportation Code, are amended to read as follows:
 (a)  The Texas Department of Licensing and Regulation
 [Education Agency] shall print the uniform certificates and supply
 them to persons who are licensed providers of courses approved
 under Chapter 1001, Education Code [the Texas Driver and Traffic
 Safety Education Act (Article 4413(29c), Vernon's Texas Civil
 Statutes)]. The Texas Commission of Licensing and Regulation by
 rule shall establish [Agency may charge] a fee for each
 certificate. [The fee may not exceed $4.]
 (c)  Money collected by the Texas Department of Licensing and
 Regulation [Education Agency] under this section may be used only
 to pay monetary awards for information relating to abuse of uniform
 certificates that leads to the conviction or removal of an
 approval, license, or authorization.
 SECTION 201.  Subsection (a), Section 543.114,
 Transportation Code, is amended to read as follows:
 (a)  A person may not distribute written information to
 advertise a provider of a driving safety course within 500 feet of a
 court having jurisdiction over an offense to which this subchapter
 applies. A violation of this section by a provider or a provider's
 agent, employee, or representative results in loss of the
 provider's status as a provider of a course approved under Chapter
 1001, Education Code [the Texas Driver and Safety Education Act
 (Article 4413(29c), Vernon's Texas Civil Statutes)].
 SECTION 202.  Subsection (g), Section 545.412,
 Transportation Code, is amended to read as follows:
 (g)  A judge, acting under Article 45.0511, Code of Criminal
 Procedure, who elects to defer further proceedings and to place a
 defendant accused of a violation of this section on probation under
 that article, in lieu of requiring the defendant to complete a
 driving safety course approved by the Texas Department of Licensing
 and Regulation [Education Agency], shall require the defendant to
 attend and present proof that the defendant has successfully
 completed a specialized driving safety course approved by the Texas
 Department of Licensing and Regulation [Education Agency] under
 Chapter 1001, Education Code, [the Texas Driver and Traffic Safety
 Education Act (Article 4413(29c), Vernon's Texas Civil Statutes)]
 that includes four hours of instruction that encourages the use of
 child passenger safety seat systems and the wearing of seat belts
 and emphasizes:
 (1)  the effectiveness of child passenger safety seat
 systems and seat belts in reducing the harm to children being
 transported in motor vehicles; and
 (2)  the requirements of this section and the penalty
 for noncompliance.
 SECTION 203.  Subsection (i), Section 545.413,
 Transportation Code, is amended to read as follows:
 (i)  A judge, acting under Article 45.0511, Code of Criminal
 Procedure, who elects to defer further proceedings and to place a
 defendant accused of a violation of Subsection (b) on probation
 under that article, in lieu of requiring the defendant to complete a
 driving safety course approved by the Texas Department of Licensing
 and Regulation [Education Agency], shall require the defendant to
 attend and present proof that the defendant has successfully
 completed a specialized driving safety course approved by the Texas
 Department of Licensing and Regulation [Education Agency] under
 Chapter 1001, Education Code, [the Texas Driver and Traffic Safety
 Education Act (Article 4413(29c), Vernon's Texas Civil Statutes)]
 that includes four hours of instruction that encourages the use of
 child passenger safety seat systems and the wearing of seat belts
 and emphasizes:
 (1)  the effectiveness of child passenger safety seat
 systems and seat belts in reducing the harm to children being
 transported in motor vehicles; and
 (2)  the requirements of this section and the penalty
 for noncompliance.
 SECTION 204.  (a) The following provisions of the Education
 Code are repealed:
 (1)  Section 7.009;
 (2)  Subsections (b) and (c), Section 7.021;
 (3)  Subdivisions (1), (2), (3), (4), (5), (6), (7),
 (10), (11), (12), (13), (14), (15), (16), (17), (18), (19), (20),
 (21), (22), (23), (24), (25), (26), (27), (28), (29), (30), (31),
 (32), (34), (35), (36), (37), (38), (39), and (41), Subsection (b),
 Section 7.055;
 (4)  Subsection (c), Section 7.055;
 (5)  Subdivision (16), Subsection (c), Section 7.102;
 (6)  Subsection (c), Section 11.201;
 (7)  Section 11.254;
 (8)  Subsection (b), Section 12.1055;
 (9)  Subsection (b), Section 12.107;
 (10)  Subsection (b), Section 12.115;
 (11)  Section 13.052;
 (12)  Subsection (a), Section 21.007;
 (13)  Sections 21.032, 21.033, 21.034, 21.035, 21.036,
 21.037, and 21.038;
 (14)  Subsection (a), Section 21.041;
 (15)  Sections 21.042 and 21.043;
 (16)  Subsections (c) and (d), Section 21.254;
 (17)  Section 21.4541;
 (18)  Subsection (a), Section 22.0831;
 (19)  Subsection (e), Section 25.001;
 (20)  Sections 29.095, 29.096, 29.097, 29.098, and
 29.099;
 (21)  Subdivisions (1), (2), and (3), Section 29.251;
 (22)  Sections 29.253, 29.2531, 29.2535, and 29.254;
 (23)  Section 29.917;
 (24)  Section 34.015;
 (25)  Section 38.104;
 (26)  Subsection (g), Section 39.037;
 (27)  Section 39.0822;
 (28)  Subsection (b) and (c), Section 39.0823;
 (29)  Subsection (c), Section 39.203;
 (30)  Section 39.204;
 (31)  the heading to Subchapter M, Chapter 39;
 (32)  Sections 39.401, 39.402, 39.403, 39.404, 39.405,
 39.406, 39.407, 39.408, 39.410, 39.411, 39.412, 39.414, 39.415, and
 39.416;
 (33)  Subsections (q), (q-1), (q-2), (q-3), (q-4), and
 (r), Section 42.152;
 (34)  Subsection (e), Section 45.208;
 (35)  Subdivision (1), Section 1001.001;
 (36)  Section 1001.006;
 (37)  Section 1001.454;
 (38)  Sections 1001.460 and 1001.461; and
 (39)  Sections 1001.551 and 1001.552.
 (b)  Section 411.090, Government Code, is repealed.
 (c)  Section 521.167, Transportation Code, as added by
 Chapter 1413 (Senate Bill No. 1317), Acts of the 81st Legislature,
 Regular Session, 2009, is repealed.
 SECTION 205.  The changes in law made by this Act to
 Subchapter D, Chapter 12, Education Code, relating to enforcement
 actions against an open-enrollment charter school apply beginning
 June 1, 2014, based on school performance during preceding school
 years.
 SECTION 206.  The change in law made by this Act to
 Subsection (b), Section 1001.553, Education Code, applies only to
 the imposition of an administrative penalty for a violation that
 occurs on or after the effective date of this Act. The imposition
 of an administrative penalty for a violation that occurs before the
 effective date of this Act is governed by the law in effect on the
 date the violation occurred, and that law is continued in effect for
 that purpose.
 SECTION 207.  (a)  The State Board for Educator
 Certification is abolished September 1, 2013. On that date, all
 powers, duties, obligations, rights, contracts, leases, records,
 personnel, property, and unspent and unobligated appropriations
 and other funds of the State Board for Educator Certification are
 transferred to the Texas Education Agency. Before that date, the
 Texas Education Agency, with the agreement of the State Board for
 Educator Certification, may transfer any records, personnel, or
 property of the State Board for Educator Certification to the Texas
 Education Agency in preparation for the transfer provided for in
 this Act.
 (b)  The abolishment of the State Board for Educator
 Certification does not affect the validity of a right, privilege,
 or obligation accrued, a contract or acquisition made, any
 liability incurred, a certificate issued, a penalty, forfeiture, or
 punishment assessed, a rule adopted, a proceeding, investigation,
 or remedy begun, a decision made, or other action taken by or in
 connection with the State Board for Educator Certification. A
 certificate issued by the State Board for Educator Certification
 under Subchapter B, Chapter 21, Education Code, before September 1,
 2013, is considered a certificate issued by the Texas Education
 Agency.
 (c)  All rules, policies, procedures, and decisions of the
 State Board for Educator Certification are continued in effect as
 rules, policies, procedures, and decisions of the commissioner of
 education and the Texas Education Agency until superseded by a rule
 or other appropriate action of the Texas Education Agency.
 (d)  After the effective date of this Act, the commissioner
 of education may adopt a rule proposed by the State Board for
 Educator Certification before the effective date of this Act.
 (e)  Any action or proceeding before the State Board for
 Educator Certification is transferred without change in status to
 the commissioner of education and the Texas Education Agency, and
 the commissioner and the agency assume, without a change in status,
 the position of the State Board for Educator Certification in any
 action or proceeding to which the State Board for Educator
 Certification is a party.
 SECTION 208.  (a)  On September 1, 2013:
 (1)  all functions and activities relating to adult
 education programs are transferred from the Texas Education Agency
 to the Texas Workforce Commission;
 (2)  all rules, policies, procedures, decisions, and
 forms of the Texas Education Agency, the commissioner of education,
 or the State Board of Education relating to the administration of
 adult education programs are continued in effect as rules,
 policies, procedures, decisions, and forms of the Texas Workforce
 Commission until superseded by a rule or other appropriate action
 by the Texas Workforce Commission;
 (3)  a reference in law or administrative rule to the
 Texas Education Agency, the commissioner of education, or the State
 Board of Education relating to the administration of adult
 education programs means the Texas Workforce Commission;
 (4)  a complaint, investigation, or other proceeding
 before the Texas Education Agency that is related to adult
 education programs is transferred without change in status to the
 Texas Workforce Commission, and the Texas Workforce Commission
 assumes, as appropriate and without a change in status, the
 position of the Texas Education Agency in an action or proceeding to
 which the Texas Education Agency is a party;
 (5)  all money, contracts, leases, property, and
 obligations of the Texas Education Agency related to the
 administration of adult education programs are transferred to the
 Texas Workforce Commission;
 (6)  all property in the custody of the Texas Education
 Agency related to the administration of adult education programs is
 transferred to the Texas Workforce Commission; and
 (7)  the unexpended and unobligated balance of any
 money appropriated by the legislature for the Texas Education
 Agency related to the administration of adult education programs is
 transferred to the Texas Workforce Commission.
 (b)  Before September 1, 2013, the Texas Education Agency may
 agree with the Texas Workforce Commission to transfer any property
 of the Texas Education Agency to the Texas Workforce Commission to
 implement the transfer required by this Act.
 (c)  The Texas Workforce Commission shall hold public
 hearings to develop rules to establish a new allocation formula for
 adult education provider grants under Chapter 315, Labor Code, as
 added by this Act.
 (d)  The Texas Workforce Commission shall adopt and
 implement the new allocation formula for adult education provider
 grants beginning with the 2014-2015 school year.
 SECTION 209.  (a)  On September 1, 2013:
 (1)  all functions and activities relating to Chapter
 1001, Education Code, performed by the Texas Education Agency
 immediately before that date are transferred to the Texas
 Department of Licensing and Regulation;
 (2)  all rules, policies, procedures, decisions, and
 forms adopted by the commissioner of education that relate to
 Chapter 1001, Education Code, are continued in effect as rules,
 policies, procedures, decisions, and forms of the Texas Commission
 of Licensing and Regulation or the Texas Department of Licensing
 and Regulation, as applicable, and remain in effect until amended
 or replaced by that commission or department;
 (3)  a reference to the Texas Education Agency in a law
 or administrative rule that relates to Chapter 1001, Education
 Code, means the Texas Commission of Licensing and Regulation or the
 Texas Department of Licensing and Regulation, as applicable;
 (4)  a complaint, investigation, or other proceeding
 before the Texas Education Agency that is related to Chapter 1001,
 Education Code, is transferred without change in status to the
 Texas Department of Licensing and Regulation, and the Texas
 Department of Licensing and Regulation assumes, as appropriate and
 without a change in status, the position of the Texas Education
 Agency in an action or proceeding to which the Texas Education
 Agency is a party;
 (5)  all money, contracts, leases, property, and
 obligations of the Texas Education Agency related to Chapter 1001,
 Education Code, are transferred to the Texas Department of
 Licensing and Regulation;
 (6)  all property in the custody of the Texas Education
 Agency related to Chapter 1001, Education Code, is transferred to
 the Texas Department of Licensing and Regulation; and
 (7)  the unexpended and unobligated balance of any
 money appropriated by the legislature for the Texas Education
 Agency related to Chapter 1001, Education Code, is transferred to
 the Texas Department of Licensing and Regulation.
 (b)  Before September 1, 2013, the Texas Education Agency may
 agree with the Texas Department of Licensing and Regulation to
 transfer any property of the Texas Education Agency to the Texas
 Department of Licensing and Regulation to implement the transfer
 required by this Act.
 SECTION 210.  The changes in law made by this Act to Chapter
 1001, Education Code, apply only to a fee charged on or after
 September 1, 2013. A fee charged before September 1, 2013, is
 governed by the law in effect immediately before that date, and the
 former law is continued in effect for that purpose.
 SECTION 211.  To the extent of any conflict, this Act
 prevails over another Act of the 83rd Legislature, Regular Session,
 2013, relating to nonsubstantive additions to and corrections in
 enacted codes.
 SECTION 212.  This Act takes effect September 1, 2013.
 * * * * *