Texas 2017 - 85th Regular

Texas House Bill HB22 Latest Draft

Bill / Enrolled Version Filed 05/29/2017

                            H.B. No. 22


 AN ACT
 relating to public school accountability.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 SECTION 1.  Section 11.252(a), Education Code, is amended to
 read as follows:
 (a)  Each school district shall have a district improvement
 plan that is developed, evaluated, and revised annually, in
 accordance with district policy, by the superintendent with the
 assistance of the district-level committee established under
 Section 11.251. The purpose of the district improvement plan is to
 guide district and campus staff in the improvement of student
 performance for all student groups in order to attain state
 standards in respect to the achievement indicators adopted under
 Section 39.053(c) [Sections 39.053(c)(1)-(4)]. The district
 improvement plan must include provisions for:
 (1)  a comprehensive needs assessment addressing
 district student performance on the achievement indicators, and
 other appropriate measures of performance, that are disaggregated
 by all student groups served by the district, including categories
 of ethnicity, socioeconomic status, sex, and populations served by
 special programs, including students in special education programs
 under Subchapter A, Chapter 29;
 (2)  measurable district performance objectives for
 all appropriate achievement indicators for all student
 populations, including students in special education programs
 under Subchapter A, Chapter 29, and other measures of student
 performance that may be identified through the comprehensive needs
 assessment;
 (3)  strategies for improvement of student performance
 that include:
 (A)  instructional methods for addressing the
 needs of student groups not achieving their full potential;
 (B)  methods for addressing the needs of students
 for special programs, including:
 (i)  suicide prevention programs, in
 accordance with Subchapter O-1, Chapter 161, Health and Safety
 Code, which includes a parental or guardian notification procedure;
 (ii)  conflict resolution programs;
 (iii)  violence prevention programs; and
 (iv)  dyslexia treatment programs;
 (C)  dropout reduction;
 (D)  integration of technology in instructional
 and administrative programs;
 (E)  discipline management;
 (F)  staff development for professional staff of
 the district;
 (G)  career education to assist students in
 developing the knowledge, skills, and competencies necessary for a
 broad range of career opportunities; and
 (H)  accelerated education;
 (4)  strategies for providing to middle school, junior
 high school, and high school students, those students' teachers and
 school counselors, and those students' parents information about:
 (A)  higher education admissions and financial
 aid opportunities;
 (B)  the TEXAS grant program and the Teach for
 Texas grant program established under Chapter 56;
 (C)  the need for students to make informed
 curriculum choices to be prepared for success beyond high school;
 and
 (D)  sources of information on higher education
 admissions and financial aid;
 (5)  resources needed to implement identified
 strategies;
 (6)  staff responsible for ensuring the accomplishment
 of each strategy;
 (7)  timelines for ongoing monitoring of the
 implementation of each improvement strategy;
 (8)  formative evaluation criteria for determining
 periodically whether strategies are resulting in intended
 improvement of student performance; and
 (9)  the policy under Section 38.0041 addressing sexual
 abuse and other maltreatment of children.
 SECTION 2.  Section 11.253(c), Education Code, is amended to
 read as follows:
 (c)  Each school year, the principal of each school campus,
 with the assistance of the campus-level committee, shall develop,
 review, and revise the campus improvement plan for the purpose of
 improving student performance for all student populations,
 including students in special education programs under Subchapter
 A, Chapter 29, with respect to the achievement indicators adopted
 under Section 39.053(c) [Sections 39.053(c)(1)-(4)] and any other
 appropriate performance measures for special needs populations.
 SECTION 3.  Section 12.1013(c), Education Code, is amended
 to read as follows:
 (c)  The report must include the performance of each public
 school in each class described by Subsection (b) as measured by the
 achievement indicators adopted under Section 39.053(c) [Sections
 39.053(c)(1)-(4)] and student attrition rates.
 SECTION 4.  Section 29.062(a), Education Code, is amended to
 read as follows:
 (a)  The legislature recognizes that compliance with this
 subchapter is an imperative public necessity. Therefore, in
 accordance with the policy of the state, the agency shall evaluate
 the effectiveness of programs under this subchapter based on the
 achievement indicators adopted under Section 39.053(c) [Sections
 39.053(c)(1)-(4)], including the results of assessment
 instruments. The agency may combine evaluations under this section
 with federal accountability measures concerning students of
 limited English proficiency.
 SECTION 5.  Section 29.202(a), Education Code, is amended to
 read as follows:
 (a)  A student is eligible to receive a public education
 grant or to attend another public school in the district in which
 the student resides under this subchapter if the student is
 assigned to attend a public school campus assigned an unacceptable
 performance rating that is made publicly available under Section
 39.054 for:
 (1)  the student achievement domain under Section
 39.053(c)(1) [at which 50 percent or more of the students did not
 perform satisfactorily on an assessment instrument administered
 under Section 39.023(a) or (c) in any two of the preceding three
 years]; and [or]
 (2)  the school progress domain under Section
 39.053(c)(2) [that, at any time in the preceding three years,
 failed to satisfy any standard under Section 39.054(e)].
 SECTION 6.  Chapter 39, Education Code, is amended by adding
 Subchapter A to read as follows:
 SUBCHAPTER A. GENERAL PROVISIONS
 Sec. 39.001.  RULES. (a) The commissioner shall adopt rules
 as necessary to administer this chapter.
 (b)  In adopting a rule under this chapter, the commissioner
 shall solicit input statewide from persons who would likely be
 affected by the proposed rule, including school district boards of
 trustees, administrators and teachers employed by school
 districts, parents of students enrolled in school districts, and
 other interested stakeholders.
 Sec. 39.002.  ADVISORY COMMITTEE. An advisory committee
 appointed under this chapter is not subject to Chapter 2110,
 Government Code.
 SECTION 7.  Section 39.052(b), Education Code, is amended to
 read as follows:
 (b)  In determining the accreditation status of a school
 district, the commissioner:
 (1)  shall evaluate and consider:
 (A)  performance on achievement indicators
 described by Section 39.053 [39.053(c)]; and
 (B)  performance under the financial
 accountability rating system developed under Subchapter D; and
 (2)  may evaluate and consider:
 (A)  the district's compliance with statutory
 requirements and requirements imposed by rule of the commissioner
 or State Board of Education under specific statutory authority that
 relate to:
 (i)  reporting data through the Public
 Education Information Management System (PEIMS) or other reports
 required by state or federal law or court order;
 (ii)  the high school graduation
 requirements under Section 28.025; or
 (iii)  an item listed under Sections
 7.056(e)(3)(C)-(I) that applies to the district;
 (B)  the effectiveness of the district's programs
 for special populations; and
 (C)  the effectiveness of the district's career
 and technology program.
 SECTION 8.  Section 39.053, Education Code, is amended by
 amending Subsections (a), (a-1), (b), (c), (d-1), (f), (g), (g-1),
 (g-2), and (i) and adding Subsections (c-3) and (e) to read as
 follows:
 (a)  The commissioner shall adopt a set of indicators of the
 quality of learning and achievement, including the indicators under
 Subsection (c). The commissioner periodically [biennially] shall
 review the indicators for the consideration of appropriate
 revisions.
 (a-1)  The indicators adopted by the commissioner under
 Subsection (a)[, including the indicators identified under
 Subsection (c),] must measure and evaluate school districts and
 campuses with respect to:
 (1)  improving student preparedness for success in:
 (A)  subsequent grade levels; and
 (B)  entering the workforce, the military, or
 postsecondary education;
 (2)  reducing, with the goal of eliminating, student
 academic achievement differentials among students from different
 racial and ethnic groups and socioeconomic backgrounds; and
 (3)  informing parents and the community regarding
 campus and district performance [in the domains described by
 Subsection (c) and, for the domain described by Subsection (c)(5),
 in accordance with local priorities and preferences].
 (b)  Performance on the achievement indicators adopted under
 Subsection (c) [Subsections (c)(1)-(4)] shall be compared to
 state-established standards. The indicators must be based on
 information that is disaggregated by race, ethnicity, and
 socioeconomic status.
 (c)  School districts and campuses must be evaluated based on
 three [five] domains of indicators of achievement adopted under
 this section that include:
 (1)  in the student achievement [first] domain,
 indicators of student achievement that must include [the results
 of]:
 (A)  for evaluating the performance of districts
 and campuses generally:
 (i)  an indicator that accounts for the
 results of assessment instruments required under Sections
 39.023(a), (c), and (l), as applicable for the district and campus,
 including the results of assessment instruments required for
 graduation retaken by a student, aggregated across grade levels by
 subject area, including:
 (a) [(i)]  for the performance
 standard determined by the commissioner under Section 39.0241(a),
 the percentage of students who performed satisfactorily on the
 assessment instruments, aggregated across grade levels by subject
 area; and
 (b) [(ii)]  for the college readiness
 performance standard as determined under Section 39.0241, the
 percentage of students who performed satisfactorily on the
 assessment instruments, aggregated across grade levels by subject
 area; and
 (ii) [(B)]  an indicator that accounts for
 the results of assessment instruments required under Section
 39.023(b), as applicable for the district and campus, [aggregated
 across grade levels by subject area,] including the percentage of
 students who performed satisfactorily on the assessment
 instruments, as determined by the performance standard adopted by
 the agency, aggregated across grade levels by subject area; and
 (B)  for evaluating the performance of high school
 campuses and districts that include high school campuses,
 indicators that account for:
 (i)  students who satisfy the Texas Success
 Initiative (TSI) college readiness benchmarks prescribed by the
 Texas Higher Education Coordinating Board under Section 51.3062(f)
 on an assessment instrument in reading or mathematics designated by
 the Texas Higher Education Coordinating Board under Section
 51.3062(c);
 (ii)  students who satisfy relevant
 performance standards on advanced placement tests or similar
 assessments;
 (iii)  students who earn dual course credits
 in the dual credit courses;
 (iv)  students who enlist in the armed
 forces of the United States;
 (v)  students who earn industry
 certifications;
 (vi)  students admitted into postsecondary
 industry certification programs that require as a prerequisite for
 entrance successful performance at the secondary level;
 (vii)  students whose successful completion
 of a course or courses under Section 28.014 indicates the student's
 preparation to enroll and succeed, without remediation, in an
 entry-level general education course for a baccalaureate degree or
 associate degree;
 (viii)  students who successfully met
 standards on a composite of indicators that through research
 indicates the student's preparation to enroll and succeed, without
 remediation, in an entry-level general education course for a
 baccalaureate degree or associate degree;
 (ix)  high school graduation rates, computed
 in accordance with standards and definitions adopted in compliance
 with the Every Student Succeeds Act (20 U.S.C. Section 6301 et seq.)
 subject to the exclusions provided by Subsections (g), (g-1),
 (g-2), and (g-3);
 (x)  students who successfully completed an
 OnRamps dual enrollment course; and
 (xi)  students who are awarded an
 associate's degree;
 (2)  in the school progress [second] domain, indicators
 for effectiveness in promoting student learning, which must
 include:
 (A)  for assessment instruments, including
 assessment instruments under Subdivisions (1)(A)(i) and (ii)
 [under Subdivision (1)(A):
 [(i)     for the performance standard
 determined by the commissioner under Section 39.0241(a)], the
 percentage of students who met the standard for [annual]
 improvement [on the assessment instruments], as determined by the
 commissioner [by rule or by the method for measuring annual
 improvement under Section 39.034, aggregated across grade levels by
 subject area; and
 [(ii)     for the college readiness performance
 standard as determined under Section 39.0241, the percentage of
 students who met the standard for annual improvement on the
 assessment instruments, as determined by the commissioner by rule
 or by the method for measuring annual improvement under Section
 39.034, aggregated across grade levels by subject area]; and
 (B)  for evaluating relative performance, the
 performance of districts and campuses compared to similar districts
 or campuses [for assessment instruments under Subdivision (1)(B),
 the percentage of students who met the standard for annual
 improvement on the assessment instruments, as determined by the
 commissioner by rule or by the method for measuring annual
 improvement under Section 39.034, aggregated across grade levels by
 subject area;
 [(3)     in the third domain, the student academic
 achievement differentials among students from different racial and
 ethnic groups and socioeconomic backgrounds;
 [(4)  in the fourth domain:
 [(A)     for evaluating the performance of high
 school campuses and districts that include high school campuses:
 [(i)     dropout rates, including dropout rates
 and district completion rates for grade levels 9 through 12,
 computed in accordance with standards and definitions adopted by
 the National Center for Education Statistics of the United States
 Department of Education;
 [(ii)     high school graduation rates,
 computed in accordance with standards and definitions adopted in
 compliance with the No Child Left Behind Act of 2001 (20 U.S.C.
 Section 6301 et seq.);
 [(iii)     the percentage of students who
 successfully completed the curriculum requirements for the
 distinguished level of achievement under the foundation high school
 program;
 [(iv)     the percentage of students who
 successfully completed the curriculum requirements for an
 endorsement under Section 28.025(c-1);
 [(v)     the percentage of students who
 completed a coherent sequence of career and technical courses;
 [(vi)     the percentage of students who
 satisfy the Texas Success Initiative (TSI) college readiness
 benchmarks prescribed by the Texas Higher Education Coordinating
 Board under Section 51.3062(f) on an assessment instrument in
 reading, writing, or mathematics designated by the Texas Higher
 Education Coordinating Board under Section 51.3062(c);
 [(vii)     the percentage of students who earn
 at least 12 hours of postsecondary credit required for the
 foundation high school program under Section 28.025 or to earn an
 endorsement under Section 28.025(c-1);
 [(viii)     the percentage of students who have
 completed an advanced placement course;
 [(ix)     the percentage of students who enlist
 in the armed forces of the United States; and
 [(x)     the percentage of students who earn an
 industry certification;
 [(B)     for evaluating the performance of middle and
 junior high school and elementary school campuses and districts
 that include those campuses:
 [(i)  student attendance; and
 [(ii)     for middle and junior high school
 campuses:
 [(a)     dropout rates, computed in the
 manner described by Paragraph (A)(i); and
 [(b)     the percentage of students in
 grades seven and eight who receive instruction in preparing for
 high school, college, and a career that includes information
 regarding the creation of a high school personal graduation plan
 under Section 28.02121, the distinguished level of achievement
 described by Section 28.025(b-15), each endorsement described by
 Section 28.025(c-1), college readiness standards, and potential
 career choices and the education needed to enter those careers; and
 [(C)     any additional indicators of student
 achievement not associated with performance on standardized
 assessment instruments determined appropriate for consideration by
 the commissioner in consultation with educators, parents, business
 and industry representatives, and employers]; and
 (3) [(5)]  in the closing the gaps [fifth] domain, the
 use of disaggregated data to demonstrate the differentials among
 students from different racial and ethnic groups, socioeconomic
 backgrounds, and other factors, including:
 (A)  students formerly receiving special
 education services;
 (B)  students continuously enrolled; and
 (C)  students who are mobile [three programs or
 specific categories of performance related to community and student
 engagement locally selected and evaluated as provided by Section
 39.0546].
 (c-3)  Any standard for improvement determined by the
 commissioner as described by Subsection (c)(2)(A) must allow for
 appropriately crediting a student for growth if the student
 performs at the highest achievement standard in the previous and
 current school year.
 (d-1)  In aggregating results of assessment instruments
 across grade levels by subject in accordance with Subsection
 (c)(1)(A)(i) [Subsection (c)(1)], the performance of a student
 enrolled below the high school level on an assessment instrument
 required under Section 39.023(c) is included with results relating
 to other students enrolled at the same grade level.
 (e)  For purposes of Subsection (c)(3)(A), a student
 formerly receiving special education services means a student whose
 enrollment information:
 (1)  for the preceding school year, as reported through
 the Public Education Information Management System (PEIMS),
 indicates the student was enrolled at the campus and was
 participating in a special education program; and
 (2)  for the current school year, as reported through
 the Public Education Information Management System (PEIMS) and as
 reported on assessment instruments administered to the student
 under Section 39.023, indicates the student is enrolled at the
 campus and is not participating in a special education program.
 (f)  Annually, the commissioner shall define the state
 standard for the current school year for each achievement indicator
 adopted under this section. In consultation with educators,
 parents, and business and industry representatives, as necessary,
 the commissioner shall establish and modify standards to
 continuously improve student performance to achieve the goals of
 eliminating achievement gaps based on race, ethnicity, and
 socioeconomic status and to ensure this state is a national leader
 in preparing students for postsecondary success [described by
 Subsections (c)(1)-(4) and shall project the state standards for
 each indicator for the following two school years. The
 commissioner shall periodically raise the state standards for the
 college readiness achievement indicator described by Subsection
 (c)(1)(A)(ii) for accreditation as necessary to reach the goals of
 achieving, by not later than the 2019-2020 school year:
 [(1)     student performance in this state, disaggregated
 by race, ethnicity, and socioeconomic status, that ranks nationally
 in the top 10 states in terms of college readiness; and
 [(2)     student performance with no significant
 achievement gaps by race, ethnicity, and socioeconomic status].
 (g)  In computing [defining the required state standard for
 the] dropout and completion rates such as high school graduation
 rates under Subsection (c)(1)(B)(ix) [rate indicator described by
 Subsections (c)(4)(A)(i) and (B)(ii)(a)], the commissioner may not
 consider as a dropout a student whose failure to attend school
 results from:
 (1)  the student's expulsion under Section 37.007; and
 (2)  as applicable:
 (A)  adjudication as having engaged in delinquent
 conduct or conduct indicating a need for supervision, as defined by
 Section 51.03, Family Code; or
 (B)  conviction of and sentencing for an offense
 under the Penal Code.
 (g-1)  In computing dropout and completion rates such as high
 school graduation rates under Subsection (c)(1)(B)(ix)
 [Subsections (c)(4)(A)(i) and (B)(ii)(a)], the commissioner shall
 exclude:
 (1)  students who are ordered by a court to attend a
 high school equivalency certificate program but who have not yet
 earned a high school equivalency certificate;
 (2)  students who were previously reported to the state
 as dropouts, including a student who is reported as a dropout,
 reenrolls, and drops out again, regardless of the number of times of
 reenrollment and dropping out;
 (3)  students in attendance who are not in membership
 for purposes of average daily attendance;
 (4)  students whose initial enrollment in a school in
 the United States in grades 7 through 12 was as an unschooled asylee
 [refugees] or refugee [asylees] as defined by Section 39.027(a-1);
 (5)  students who are in the district exclusively as a
 function of having been detained at a county detention facility but
 are otherwise not students of the district in which the facility is
 located; and
 (6)  students who are incarcerated in state jails and
 federal penitentiaries as adults and as persons certified to stand
 trial as adults.
 (g-2)  In computing completion rates such as high school
 graduation rates under Subsection (c)(1)(B)(ix) [(c)(2)], the
 commissioner shall exclude students who:
 (1)  are at least 18 years of age as of September 1 of
 the school year as reported for the fall semester Public Education
 Information Management System (PEIMS) submission and have
 satisfied the credit requirements for high school graduation;
 (2)  have not completed their individualized education
 program under 19 T.A.C. Section 89.1070(b)(2) and the Individuals
 with Disabilities Education Act (20 U.S.C. Section 1400 et seq.);
 and
 (3)  are enrolled and receiving individualized
 education program services.
 (i)  Each school district shall submit the data required for
 the indicators adopted under this section to the [The] commissioner
 [by rule shall adopt accountability measures to be used in
 assessing the progress of students who have failed to perform
 satisfactorily as determined by the commissioner under Section
 39.0241(a) or under the college readiness standard as determined
 under Section 39.0241 in the preceding school year on an assessment
 instrument required under Section 39.023(a), (c), or (l)].
 SECTION 9.  Subchapter C, Chapter 39, Education Code, is
 amended by adding Section 39.0533 to read as follows:
 Sec. 39.0533.  EXTRACURRICULAR AND COCURRICULAR STUDENT
 ACTIVITY INDICATOR. (a) The commissioner shall study the
 feasibility of incorporating for evaluating school district and
 campus performance under this subchapter an indicator that accounts
 for extracurricular and cocurricular student activity. If the
 commissioner determines that an extracurricular and cocurricular
 student activity indicator is appropriate, the commissioner may
 adopt the indicator.
 (b)  To determine the feasibility of adopting an indicator
 under this section, the commissioner may require a school district
 or campus to report requested information relating to
 extracurricular and cocurricular student activity.
 (c)  The commissioner may establish an advisory committee to
 assist in determining the feasibility of incorporating an
 extracurricular and cocurricular student activity indicator for
 evaluating school district and campus performance.
 (d)  Not later than December 1, 2022, the commissioner shall
 report to the legislature on the feasibility of incorporating an
 extracurricular and cocurricular student activity indicator,
 unless the commissioner adopts an indicator under this section
 before that date.
 (e)  This section expires September 1, 2023.
 SECTION 10.  Sections 39.054(a), (a-1), (a-2), (a-3), and
 (e), Education Code, as effective on September 1, 2017, are amended
 to read as follows:
 (a)  The commissioner shall adopt rules to evaluate school
 district and campus performance and assign each district and campus
 an overall performance rating of A, B, C, D, or F. In addition to the
 overall performance rating, the commissioner shall assign each
 district and campus a separate domain performance rating of A, B, C,
 D, or F for each domain under Section 39.053(c) [Sections
 39.053(c)(1)-(4)]. An overall or domain performance rating of A
 reflects exemplary performance. An overall or domain performance
 rating of B reflects recognized performance. An overall or domain
 performance rating of C reflects acceptable performance. An
 overall or domain performance rating of D reflects performance that
 needs improvement. An overall or domain performance rating of [or]
 F reflects unacceptable performance. A district may not receive an
 overall or domain performance rating of A if the district includes
 any campus with a corresponding overall or domain performance
 rating of D or F. If a school district has been approved under
 Section 39.0544 to assign campus performance ratings and the
 commissioner has not assigned a campus an overall performance
 rating of D or F, the commissioner shall assign the campus an
 overall performance rating based on the school district assigned
 performance rating under Section 39.0544. A reference in law to an
 acceptable rating or acceptable performance includes an overall or
 domain performance rating of A, B, [or] C, or D or performance that
 is exemplary, recognized, or acceptable performance or performance
 that needs improvement.
 (a-1)  For purposes of assigning an overall performance
 rating for a district or campus under Subsection (a), the
 commissioner shall:
 (1)  consider either the district's or campus's
 performance rating under the student achievement domain under
 Section 39.053(c)(1) or the school progress domain under Section
 39.053(c)(2), whichever performance rating is higher, unless the
 district or campus received a performance rating of F in either
 domain, in which case the district or campus may not be assigned a
 performance rating higher than a B for the composite for the two
 domains; and
 (2)  attribute not less than 30 percent of the
 performance rating to the closing the gaps domain under Section
 39.053(c)(3) [an overall performance rating under Subsection (a),
 the commissioner shall attribute:
 [(1)     55 percent of the performance evaluation to the
 achievement indicators for the first, second, and third domains
 under Sections 39.053(c)(1)-(3);
 [(2)     for middle and junior high school and elementary
 campuses and districts that include only those campuses, 35 percent
 of the performance evaluation to the applicable achievement
 indicators for the fourth domain under Section 39.053(c)(4);
 [(3)     for high school campuses and districts that
 include those campuses:
 [(A)     10 percent of the performance evaluation to
 the high school graduation rate achievement indicator described by
 Section 39.053(c)(4)(A)(ii); and
 [(B)     25 percent to the remaining applicable
 achievement indicators for the fourth domain under Section
 39.053(c)(4); and
 [(4)     10 percent of the performance evaluation to the
 locally selected and evaluated achievement indicators provided for
 under the fifth domain under Section 39.053(c)(5)].
 (a-2)  The commissioner by rule may [shall] adopt procedures
 to ensure that a repeated performance rating of D or F or
 unacceptable in one domain, particularly performance that is not
 significantly improving, is reflected in the overall performance
 rating of a district or campus under this section or a campus under
 Section 39.0544 and is not compensated for by a performance rating
 of A, B, or C in another domain.
 (a-3)  Not later than August 15 of each year, the performance
 ratings of each district and campus shall be made publicly
 available as provided by rules adopted under this section. [If a
 district or campus received an overall or domain performance rating
 of D or F for the preceding school year, the commissioner shall
 notify the district of a subsequent such designation on or before
 June 15.]
 (e)  Each annual performance review under this section shall
 include an analysis of the achievement indicators adopted under
 Section 39.053, including Subsection (c) of that section, [Sections
 39.053(c)(1)-(4)] to determine school district and campus
 performance in relation to standards established for each
 indicator.
 SECTION 11.  Section 39.054, Education Code, is amended by
 adding Subsections (a-4) and (b) to read as follows:
 (a-4)  For performance ratings issued in August 2018 for the
 2017-2018 school year for campus performance, the commissioner
 shall issue only a rating of improvement required or met standard,
 as applicable, to a campus. This subsection expires January 1,
 2019.
 (b)  For purposes of assigning school districts and campuses
 an overall and a domain performance rating under Subsection (a),
 the commissioner shall ensure that the method used to evaluate
 performance is implemented in a manner that provides the
 mathematical possibility that all districts and campuses receive an
 A rating.
 SECTION 12.  Section 39.054(f), Education Code, as effective
 September 1, 2017, is transferred to Section 39.053, Education
 Code, redesignated as Section 39.053(g-3), Education Code, and
 amended to read as follows:
 (g-3) [(f)]  In the computation of dropout and completion
 rates such as high school graduation rates under Subsection
 (c)(1)(B)(ix) [Sections 39.053(c)(4)(A)(i) and (B)(ii)(a)], a
 student who is released from a juvenile pre-adjudication secure
 detention facility or juvenile post-adjudication secure
 correctional facility and fails to enroll in school or a student who
 leaves a residential treatment center after receiving treatment for
 fewer than 85 days and fails to enroll in school may not be
 considered to have dropped out from the school district or campus
 serving the facility or center unless that district or campus is the
 one to which the student is regularly assigned. The agency may not
 limit an appeal relating to dropout computations under this
 subsection.
 SECTION 13.  Subchapter C, Chapter 39, Education Code, is
 amended by adding Section 39.0541 to read as follows:
 Sec. 39.0541.  ADOPTION OF INDICATORS AND STANDARDS. The
 commissioner may adopt indicators and standards under this
 subchapter at any time during a school year before the evaluation of
 a school district or campus.
 SECTION 14.  Subchapter C, Chapter 39, Education Code, is
 amended by adding Sections 39.0542 and 39.0544 to read as follows:
 Sec. 39.0542.  EXPLANATORY MATERIALS FOR ACCOUNTABILITY
 RATING SYSTEM. (a) Each school year, the commissioner shall
 provide each school district a document in a simple, accessible
 format that explains the accountability performance measures,
 methods, and procedures that will be applied for that school year in
 assigning each school district and campus a performance rating
 under Section 39.054.
 (b)  The document provided under Subsection (a) must be
 provided in a format that a school district is able to easily
 distribute to parents of students enrolled in the district and
 other interested members of the public.
 (c)  The commissioner, in collaboration with interested
 stakeholders, shall develop standardized language for each domain
 that does not exceed 250 words and that clearly describes the annual
 status of a district and campus relating to district and campus
 performance on the indicators used for that domain to determine the
 letter performance rating assigned to a district and campus.
 Sec. 39.0544.  LOCAL ACCOUNTABILITY SYSTEM. (a) The
 commissioner shall adopt rules regarding the assignment of campus
 performance ratings by school districts and open-enrollment
 charter schools. The rules:
 (1)  must require a district or school, in assigning an
 overall performance rating for a campus, to incorporate:
 (A)  domain performance ratings assigned by the
 commissioner under Section 39.054; and
 (B)  performance ratings based on locally
 developed domains or sets of accountability measures;
 (2)  may permit a district or school to assign weights
 to each domain or set of accountability measures described in
 Subdivision (1), as determined by the district or school, provided
 that the domains specified in Subdivision (1)(A) must in the
 aggregate account for at least 50 percent of the overall
 performance rating;
 (3)  must require that each locally developed domain or
 set of accountability measures:
 (A)  contains levels of performance that allow for
 differentiation, with assigned standards for achieving the
 differentiated levels;
 (B)  provides for the assignment of a letter grade
 of A, B, C, D, or F; and
 (C)  meets standards for reliability and
 validity;
 (4)  must require that calculations for overall
 performance ratings and each locally developed domain or set of
 accountability measures be capable of being audited by a third
 party;
 (5)  must require that a district or school produce a
 campus score card that may be displayed on the agency's website; and
 (6)  must require that a district or school develop and
 make available to the public an explanation of the methodology used
 to assign performance ratings under this section.
 (b)  The commissioner shall develop a process to approve a
 request by a school district or open-enrollment charter school to
 assign campus performance ratings in accordance with this section.
 Under that process, a district or school must obtain approval of a
 local accountability plan submitted by the district or school to
 the agency. A plan may be approved only if:
 (1)  after review, the agency determines the plan meets
 the minimum requirements under this section and agency rule;
 (2)  at the commissioner's discretion, an audit
 conducted by the agency verifies the calculations included in the
 plan; and
 (3)  subject to Subsection (d), a review panel
 appointed under Subsection (c) approves the plan.
 (c)  The commissioner shall appoint a review panel for
 purposes of Subsection (b)(3) that includes a majority of members
 who are superintendents or members of the board of trustees or
 governing body of school districts or open-enrollment charter
 schools with approved local accountability plans.
 (d)  The requirement under Subsection (b)(3) applies only
 after performance ratings are issued in August 2019 and only if at
 least 10 school districts or open-enrollment charter schools have
 obtained approval of locally developed accountability plans.
 (e)  A school district or open-enrollment charter school
 authorized under this section to assign campus performance ratings
 shall evaluate the performance of each campus as provided by this
 section and assign each campus a performance rating of A, B, C, D,
 or F for overall performance and for each locally developed domain
 or set of accountability measures. Not later than a date
 established by the commissioner, the district or school shall:
 (1)  report the performance ratings to the agency; and
 (2)  make the performance ratings available to the
 public as provided by commissioner rule.
 SECTION 15.  Sections 39.0548(b), (c), and (d), Education
 Code, are amended to read as follows:
 (b)  Notwithstanding Section 39.053(c)(1)(B)(ix)
 [39.053(c)(4)(A)(i)], the commissioner shall use the alternative
 completion rate under this subsection to determine the graduation
 [dropout] rate indicator under Section 39.053(c)(1)(B)(ix)
 [39.053(c)(4)(A)(i)] for a dropout recovery school. The
 alternative completion rate shall be the ratio of the total number
 of students who graduate, continue attending school into the next
 academic year, or receive a high school equivalency certificate to
 the total number of students in the longitudinal cohort of
 students.
 (c)  Notwithstanding Section 39.053(c)(1)(B)(ix)
 [39.053(c)(4)(A)(i)], in determining the performance rating under
 Section 39.054 of a dropout recovery school, the commissioner shall
 include any student described by Section 39.053(g-1) who graduates
 or receives a high school equivalency certificate.
 (d)  Notwithstanding Section 39.053(c), for purposes of
 evaluating a dropout recovery school under the accountability
 procedures adopted by the commissioner to determine the performance
 rating of the school under Section 39.054,[:
 [(1)]  only the best result from the primary
 administration or any retake of an assessment instrument
 administered to a student in the school year evaluated may be
 considered[; and
 [(2)     only a student enrolled continuously for at least
 90 days during the school year evaluated may be considered].
 SECTION 16.  Section 39.055, Education Code, is amended to
 read as follows:
 Sec. 39.055.  STUDENT ORDERED BY A JUVENILE COURT OR STUDENT
 IN RESIDENTIAL FACILITY NOT CONSIDERED FOR ACCOUNTABILITY
 PURPOSES. Notwithstanding any other provision of this code except
 to the extent otherwise provided under Section 39.053(g-3)
 [39.054(f)], for purposes of determining the performance of a
 school district, campus, or open-enrollment charter school under
 this chapter, a student ordered by a juvenile court into a
 residential program or facility operated by or under contract with
 the Texas Juvenile Justice Department, a juvenile board, or any
 other governmental entity or any student who is receiving treatment
 in a residential facility is not considered to be a student of the
 school district in which the program or facility is physically
 located or of an open-enrollment charter school, as
 applicable.  The performance of such a student on an assessment
 instrument or other achievement indicator adopted under Section
 39.053 or reporting indicator adopted under Section 39.301 shall be
 determined, reported, and considered separately from the
 performance of students attending a school of the district in which
 the program or facility is physically located or an open-enrollment
 charter school, as applicable.
 SECTION 17.  Subchapter E, Chapter 39, Education Code, is
 amended by adding Section 39.101 to read as follows:
 Sec. 39.101.  NEEDS IMPROVEMENT RATING. (a)
 Notwithstanding any other law, if a school district or campus is
 assigned an overall or domain performance rating of D:
 (1)  the commissioner shall order the district or
 campus to develop and implement a targeted improvement plan
 approved by the board of trustees of the district; and
 (2)  the interventions and sanctions provided by this
 subchapter based on failure to satisfy performance standards under
 Section 39.054(e) apply to the district or campus only as provided
 by this section.
 (b)  The interventions and sanctions provided by this
 subchapter based on failure to satisfy performance standards under
 Section 39.054(e) apply to a district or campus ordered to develop
 and implement a targeted improvement plan under Subsection (a) only
 if the district or campus is assigned:
 (1)  an overall or domain performance rating of F; or
 (2)  an overall performance rating of D as provided by
 Subsection (c).
 (c)  If a school district or campus is assigned an overall
 performance rating of D for a school year after the district or
 campus is ordered to develop and implement a targeted improvement
 plan under Subsection (a), the commissioner shall implement
 interventions and sanctions that apply to an unacceptable campus
 and those interventions and sanctions shall continue for each
 consecutive school year thereafter in which the campus is assigned
 an overall performance rating of D.
 (d)  The commissioner shall adopt rules as necessary to
 implement this section.
 SECTION 18.  Section 39.301(b), Education Code, is amended
 to read as follows:
 (b)  Performance on the indicators adopted under this
 section shall be evaluated in the same manner provided for
 evaluation of the achievement indicators under Section 39.053(c)
 [Sections 39.053(c)(1)-(4)].
 SECTION 19.  The following provisions of the Education Code
 are repealed:
 (1)  Section 39.054(c), as effective September 1, 2017;
 and
 (2)  Sections 39.0545 and 39.0546.
 SECTION 20.  If H.B. 1500, 85th Legislature, Regular
 Session, 2017, becomes law, that law has no effect.
 SECTION 21.  Not later than January 1, 2019, the
 commissioner of education shall submit a report to the standing
 committees of the legislature having primary jurisdiction over
 primary and secondary education that provides for a preliminary
 evaluation of campuses under Section 39.054, Education Code, as
 amended by this Act. The report must include:
 (1)  the overall and domain performance rating each
 campus would have received under Section 39.054, Education Code, as
 amended by this Act, for the 2017-2018 school year if the indicators
 adopted by the commissioner of education under Section 39.053,
 Education Code, as amended by this Act, existed during the
 2017-2018 school year; and
 (2)  the correlation between each designated letter
 performance rating the campus would have received and the
 percentage of students at each campus:
 (A)  qualifying for the free or reduced-price
 breakfast under the national school breakfast programs provided for
 by the Child Nutrition Act of 1966 (42 U.S.C. Section 1773);
 (B)  that are students of limited English
 proficiency as defined by Section 29.052, Education Code; and
 (C)  disaggregated by race, ethnicity, and
 socioeconomic status used to assign ratings in the system.
 SECTION 22.  This Act applies beginning with the 2017-2018
 school year.
 SECTION 23.  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, 2017.
 ______________________________ ______________________________
 President of the Senate Speaker of the House
 I certify that H.B. No. 22 was passed by the House on May 4,
 2017, by the following vote:  Yeas 146, Nays 0, 2 present, not
 voting; that the House refused to concur in Senate amendments to
 H.B. No. 22 on May 26, 2017, and requested the appointment of a
 conference committee to consider the differences between the two
 houses; and that the House adopted the conference committee report
 on H.B. No. 22 on May 28, 2017, by the following vote:  Yeas 140,
 Nays 0, 1 present, not voting, and that the House adopted H.C.R. No.
 165 authorizing certain corrections in H.B. No. 22 on May 29, 2017,
 by the following vote: Yeas 147, Nays 0, 1 present, not voting.
 ______________________________
 Chief Clerk of the House
 I certify that H.B. No. 22 was passed by the Senate, with
 amendments, on May 24, 2017, by the following vote:  Yeas 28, Nays
 3; at the request of the House, the Senate appointed a conference
 committee to consider the differences between the two houses; and
 that the Senate adopted the conference committee report on H.B. No.
 22 on May 28, 2017, by the following vote:  Yeas 31, Nays 0, and
 that the Senate adopted H.C.R. No. 165 authorizing certain
 corrections in H.B. No. 22 on May 29, 2017, by the following vote:
 Yeas 31, Nays 0.
 ______________________________
 Secretary of the Senate
 APPROVED: __________________
 Date
 __________________
 Governor