By: West S.B. No. 669 A BILL TO BE ENTITLED AN ACT relating to state interventions and sanctions against public school campuses with unacceptable performance and the establishment of the Texas Opportunity School District for educating students at certain low-performing campuses. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. SHORT TITLE. This Act may be cited as the Low-Performing Campus Intervention Act. SECTION 2. Chapter 11, Education Code, is amended by adding Subchapter I to read as follows: SUBCHAPTER I. TEXAS OPPORTUNITY SCHOOL DISTRICT Sec. 11.401. TEXAS OPPORTUNITY SCHOOL DISTRICT ESTABLISHED. (a) The Texas Opportunity School District is established as a school district under this code and an intermediate educational unit under 34 C.F.R. Section 222.50 for the purpose of educating students attending a campus removed from the jurisdiction of a school district under Chapter 39. (b) In this subchapter, "prior system" means the school district from which a campus that is transferred to the jurisdiction of the opportunity school district was removed. (c) The commissioner shall select the superintendent of the opportunity school district. The superintendent shall report to the commissioner under a written contract for services. (d) The opportunity school district does not have authority to impose taxes but has authority to seek and expend federal funding and grant funding and to otherwise seek, obtain, and expend funding with the same authority as an independent school district. (e) The opportunity school district may provide for the supervision, management, and operation of each campus placed under the district's jurisdiction and receive, control, and expend the local, state, and federal funding attributable to that campus, with all the same power and authority as the prior system, subject to the requirements of this subchapter and Section 39.1071, and with any other power or authority otherwise granted by law. (f) The opportunity school district is entitled to the same level of services provided to other school districts by regional education service centers, and to participate in any state program available to school districts, including a purchasing program. (g) The opportunity school district may not contract with a private entity for providing educational services to the students attending a campus transferred to the district, other than an eligible entity, as defined by Section 12.101, that has demonstrated success in educating populations of students similar to the populations of students enrolled at the campus transferred to the district. (g-1) The opportunity school district may contract with a school district to provide educational services to students attending a campus transferred to the district. (h) The opportunity school district may employ such staff as the superintendent deems necessary. Sec. 11.402. APPLICABILITY OF LAWS, RULES, AND ORDINANCES TO OPPORTUNITY SCHOOL DISTRICT. (a) Except as expressly provided by law, the opportunity school district is subject to federal and state laws and rules governing public schools and to municipal zoning ordinances governing public schools. (b) Except as provided by Subsection (c) and as expressly provided by other law, the opportunity school district is subject to a provision of this title to the extent and in the manner that the provision applies to an open-enrollment charter school under Subchapter D, Chapter 12. (c) A teacher employed by the opportunity school district must be highly qualified, as determined by the commissioner in a manner consistent with the No Child Left Behind Act of 2001 (20 U.S.C. Section 6301 et seq.). (d) The performance of a campus under the jurisdiction of the opportunity school district may not be used for purposes of determining the prior system's performance rating under Section 39.054. (e) With respect to the operation of the opportunity school district, any requirement in Chapter 551 or 552, Government Code, or another law that concerns open meetings or the availability of information that applies to a school district, the board of trustees of a school district, or public school students applies to the opportunity school district, the superintendent of the district, any managing entity, and students attending the district. Sec. 11.403. IMMUNITY. The opportunity school district is immune from liability to the same extent as any other school district, and the district's employees and volunteers are immune from liability to the same extent as other school district employees and volunteers. Sec. 11.404. MEMBERSHIP IN TEACHER RETIREMENT SYSTEM OF TEXAS BY OPPORTUNITY SCHOOL DISTRICT EMPLOYEES. (a) An employee of the opportunity school district who qualifies for membership in the Teacher Retirement System of Texas shall be covered under the system to the same extent a qualified employee of any other school district is covered. (b) For each employee of the opportunity school district covered under the system, the district is responsible for making any contribution that otherwise would be the legal responsibility of the prior system, and the state is responsible for making contributions to the same extent it would be legally responsible if the employee were that of another school district. Sec. 11.405. FUNDING OF STUDENTS ENROLLED IN OPPORTUNITY SCHOOL DISTRICT. (a) The opportunity school district is entitled to receive for the education of students transferred to the district funding under Chapter 42 equal to the amount of funding per student in weighted average daily attendance to which the prior system would be entitled under Chapter 42 if the prior system were a school district without a tier one local share for purposes of Section 42.253. (b) In determining funding for the opportunity school district under Subsection (a), adjustments under Sections 42.102, 42.103, 42.104, and 42.105 are based on the actual adjustment for the prior system. In addition to the funding provided by Subsection (a), the opportunity school district is entitled to receive enrichment funding under Section 42.302 based on the actual amount for the prior system. (c) In determining funding for the opportunity school district under Subsection (a), the commissioner shall apply the same adjustment factor provided under Section 42.101 to calculate the regular program allotment as for the prior system. This subsection expires September 1, 2017. (d) The opportunity school district is entitled to funds that are available to other school districts from the agency or the commissioner in the form of grants or other discretionary funding. The district is entitled to a pro rata share of all revenue to the prior system from the agency or the commissioner in the form of grants or other discretionary funding. (e) The opportunity school district is entitled to share in the available school fund apportionment and other privileges in the same manner as the prior system. The district shall report its student attendance and receive funding in the same manner as any other school district. (f) For purposes of calculating the amount of the prior system's obligations and entitlements under Chapters 41 and 42, students transferred to the opportunity school district who would otherwise have attended the prior system are not counted in calculating the average daily attendance of the prior system. (f-1) For purposes of calculating the prior system's allotments under Chapter 46, students transferred to the opportunity school district who would otherwise have attended the prior system are counted in calculating the average daily attendance of the prior system. (g) The commissioner shall adopt rules under this section. Sec. 11.406. FACILITIES SUPPORT FOR STUDENTS ENROLLED IN OPPORTUNITY SCHOOL DISTRICT. The opportunity school district is entitled to use any school building and all facilities and property otherwise part of the campus and recognized as part of the facilities or assets of the campus before the campus was placed in the district. The district is entitled to access to such additional facilities as were typically available to the campus, its students, and faculty and staff before the campus was placed in the district. Such use may not be restricted, except that the opportunity school district is responsible for and obligated to provide for routine maintenance and repair such that the facilities and property are maintained in as good an order as when the right of use was acquired by the district. Sec. 11.407. OTHER SUPPORT FOR STUDENTS ENROLLED IN OPPORTUNITY SCHOOL DISTRICT. The opportunity school district may require the prior system to provide school support or student support services for a campus transferred from the prior system's jurisdiction, including student transportation, school food service, or student assessment for special education eligibility that are compliant with all laws and regulations governing such services. The opportunity school district shall reimburse the actual cost of such services to the prior system. If a dispute arises between the opportunity school district and the prior system regarding the actual cost of services to be reimbursed, the commissioner or the commissioner's designee shall determine the cost to be reimbursed. Sec. 11.408. EXPENDITURES FOR SUPPORT OF STUDENTS ENROLLED IN OPPORTUNITY SCHOOL DISTRICT. Funds received by the opportunity school district under Section 11.405 shall be used for the operation and administration of campuses transferred from prior systems to the district. Sec. 11.409. OPPORTUNITY SCHOOL DISTRICT CHARTER. (a) The opportunity school district may grant a district charter under Section 12.0522 to a campus that has been placed in the opportunity school district. (b) The grant of a district charter by the opportunity school district is not subject to the limitation imposed by Section 12.0522(b). (c) A campus granted a district charter under this section is eligible for funding under Section 11.405. Any administrative costs related to authorizing a district charter under this section may be paid from funds appropriated to the opportunity school district, as approved by the superintendent of the opportunity school district. SECTION 3. Section 39.106(f), Education Code, is amended to read as follows: (f) Notwithstanding any other provision of this subchapter, if the commissioner determines that a campus for which an intervention is ordered under Subsection (a) is not fully implementing the campus intervention team's recommendations or targeted improvement plan or updated plan, the commissioner may order the reconstitution of the campus as provided by Section 39.107 or the removal of the campus to the opportunity school district established by Subchapter I, Chapter 11. SECTION 4. The heading to Section 39.107, Education Code, is amended to read as follows: Sec. 39.107. RECONSTITUTION, REMOVAL, REPURPOSING, ALTERNATIVE MANAGEMENT, AND CLOSURE. SECTION 5. Section 39.107, Education Code, is amended by amending Subsections (a) and (a-1) and adding Subsections (a-2), (a-3), (a-4), and (k-1) to read as follows: (a) After a campus has been identified as unacceptable for two consecutive school years, the commissioner shall determine whether the district or campus has instituted meaningful change for the campus, including reconstituting the staff or leadership at the campus. If the commissioner determines that the district or campus has instituted meaningful change for the campus, the commissioner may reevaluate the campus under this subsection following the conclusion of the subsequent school year. If the commissioner determines the district or campus has not instituted meaningful change for the campus, the superintendent of the district may operate the campus with the same powers and authority granted to the superintendent of the opportunity school district established under Subchapter I, Chapter 11, to operate a campus placed in the jurisdiction of the opportunity school district unless the commissioner orders one or more of the following: (1) [order the] reconstitution of the campus under this section; (2) repurposing of the campus under this section; (3) alternative management of the campus under this section; or (4) placement of the campus in the opportunity school district, as provided by Section 39.1071. (a-1) In making a determination regarding action to be taken under this section, the commissioner shall seek and give considerable weight to recommendations from parents of students enrolled at the campus and members of the community who reside in the attendance zone of the campus. (a-2) In reconstituting a campus, a campus intervention team, with the involvement and advice of the school community partnership team, if applicable, shall assist the campus in: (1) developing an updated targeted improvement plan; (2) submitting the updated targeted improvement plan to the board of trustees of the school district for approval and presenting the plan in a public hearing as provided by Section 39.106(e-1); (3) obtaining approval of the updated plan from the commissioner; and (4) executing the plan on approval by the commissioner. (a-3) The campus intervention team or a school community partnership team shall develop information regarding campus performance and available options for improving campus performance that may be provided to interested parties on request. (a-4) In ordering the reconstitution of a campus or as an alternative to reconstitution, the commissioner may order at the request of the school district that: (1) except as expressly provided by other law, the reconstituted campus and its employees and students are subject to a provision of this title to the extent and in the same manner that the provision applies to an open-enrollment charter school and its employees and students under Subchapter D, Chapter 12; or (2) the reconstituted campus, by agreement between the school district and the opportunity school district, be transferred to or operated by the opportunity school district. (k-1) A managing entity may not assume management of a campus under this section if a member of the entity's management and leadership team provided any input to the commissioner regarding the commissioner's determination under Subsection (a). SECTION 6. Subchapter E, Chapter 39, Education Code, is amended by adding Section 39.1071 to read as follows: Sec. 39.1071. REMOVAL OF CAMPUS TO OPPORTUNITY SCHOOL DISTRICT. (a) In this section, "prior system" has the meaning assigned by Section 11.401(b). (b) As provided by Section 39.107, the commissioner may order the removal of a campus to the opportunity school district established by Subchapter I, Chapter 11, if action by the commissioner is required under Section 39.107. (c) The students assigned to attend the campus or the students who would have been eligible to attend the campus if the campus had remained in the prior system may choose to attend the campus under the jurisdiction of the opportunity school district or may exercise an option, made available by the prior system, to attend another campus remaining under the jurisdiction of the prior system. (d) Effective on a date determined by the commissioner after consulting with the superintendent of the opportunity school district, a campus subject to this section shall be removed from the jurisdiction of the school district and transferred to the jurisdiction of the opportunity school district. On that date, the school district or charter holder from which the campus was removed becomes the prior system. (e) The removed campus shall be reorganized and reformed, as necessary, and operated under the jurisdiction of the opportunity school district. (f) The superintendent of the opportunity school district shall decide which educators may be retained at that campus in the superintendent's sole discretion. If the opportunity school district does not retain an educator, that educator may be assigned to another position by the prior system. (g) A certified teacher with regular and direct responsibility for providing classroom instruction to students who is employed at the removed campus by the prior system shall be given priority consideration for employment in a comparable position by the opportunity school district's superintendent. A person employed by the prior system at a removed campus may choose to remain in the employ of the prior system, and in that case, the prior system shall retain and reassign the person consistent with the prior system's contractual obligations or policies regarding the retention and reassignment of employees. This subsection does not create rights or entitlements in excess of contractual rights and entitlements. (h) For the purposes of any benefit or right requiring continuous service or based on years of service, the prior system shall grant a leave of absence to a person employed by the opportunity school district who was employed at a campus when the campus was removed under this section. The prior system shall consider the period during which the opportunity school district operates the campus to be service time with the prior system if the employee returns to the prior system's employment, but the prior system is not required to provide benefits during such leave. (i) The benefits and privileges of any person employed in a campus by the opportunity school district who was not employed by the prior system at the time the campus was removed to the opportunity school district shall be those determined by the opportunity school district at the time of such employment in compliance with applicable law. (j) The opportunity school district shall retain jurisdiction over any campus removed to the district until the commissioner, on the recommendation of the opportunity school district's superintendent, enters into an agreement with the prior system for return of the campus to the prior system. (k) When a campus in the opportunity school district achieves an acceptable level of performance under this chapter, the commissioner shall direct the opportunity school district to seek agreement for the return of the campus to the prior system. An agreement between the commissioner and the prior system for the return of the campus shall include: (1) details for the operation of the campus by the prior system, including provisions for the continuation of the programs that have provided the basis for the academic achievement by the students; (2) provisions for the employment status of all persons employed by the opportunity school district who were not employed by the prior system at the time the campus was removed to the opportunity school district; and (3) provisions for the means and timetable for the campus's transition and return to the prior system. (l) If a campus has been operating under arrangements established by the opportunity school district for three years, or two years if the commissioner determines that the campus has not made meaningful progress during those two years, and the campus has failed during that period of three or two years, as applicable, to achieve an acceptable level of performance under this chapter, the commissioner shall: (1) take the following action: (A) direct the superintendent of the opportunity school district to organize a new campus of the opportunity school district for the purpose of educating the students attending the campus initially removed from the prior system under this section in the manner determined by the superintendent as most likely to bring the campus to an acceptable level of performance, which may be done by designing and granting a campus charter under Section 12.0521(a)(1); or (B) in accordance with a proposal for improving campus performance submitted by the prior system, return the campus to the prior system; (2) if the campus remains in the jurisdiction of the opportunity school district, address the opportunity school district's failure to turn around the campus within three years; and (3) record these steps for reporting as required by Section 39.332. (m) For purposes of this subsection, "parent" has the meaning assigned by Section 12.051. If the commissioner is presented, in the time and manner specified by commissioner rule, a written petition signed by the parents of a majority of the students enrolled at a campus to which Subsection (l) applies requesting a specific action described by Section 39.107(e)(1), (2), or (3), the commissioner shall, except as otherwise authorized by this section, order the specific action requested. For purposes of this subsection, the signature of only one parent of a student is required. (n) If a campus governing body established by the opportunity school district presents to the commissioner, in the time and manner specified by commissioner rule, a written request that the commissioner order specific action described by Section 39.107(e)(1) or (2) other than the specific action requested in the parents' petition and a written explanation of the basis for the governing body's request, the commissioner may order the action requested by the governing body. (o) If the commissioner determines that the basis for the unsatisfactory performance of a campus for two consecutive school years is limited to a specific condition that may be remedied with targeted technical assistance, the commissioner may require the district to contract for the appropriate technical assistance instead of removal under this section. (p) On request, the commissioner and the superintendent of the opportunity school district shall provide information concerning the new operations and performance of a campus to the prior system. (q) Notwithstanding any other provision of this code, the funding for a campus operated by the opportunity school district must be not less than the funding of the other campuses in the prior system on a per student basis so that the opportunity school district receives at least the same funding the campus would otherwise have received, provided that the prior system receives the same amount per student in a given year. (r) A campus operated by the opportunity school district may change its name only on agreement of the prior system and the opportunity school district. (s) The commissioner may adopt rules necessary to implement this section. SECTION 7. Section 39.108, Education Code, is amended to read as follows: Sec. 39.108. ANNUAL REVIEW. (a) The commissioner shall review annually the performance of a district or campus subject to this subchapter to determine the appropriate actions to be implemented under this subchapter. The commissioner must review at least annually the performance of a district for which the accreditation status or rating has been lowered due to insufficient student performance and may not raise the accreditation status or rating until the district has demonstrated improved student performance. If the review reveals a lack of improvement, the commissioner shall increase the level of state intervention and sanction unless the commissioner finds good cause for maintaining the current status. (b) The review required by Subsection (a) shall form the basis of the reporting required by Section 39.332(b)(25). SECTION 8. Section 39.332(b), Education Code, is amended by adding Subdivision (25) to read as follows: (25) The report must contain a listing and description of the status of each campus under the jurisdiction of the opportunity school district and a summary of the reforms implemented and progress of the campus. SECTION 9. This Act applies beginning with the 2016-2017 school year. SECTION 10. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2015.