85R5746 PAM-D By: González of El Paso H.B. No. 843 A BILL TO BE ENTITLED AN ACT relating to designations for rating the performance of public school districts and campuses for accountability purposes. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Sections 8.051(b) and (d), Education Code, are amended to read as follows: (b) Each regional education service center shall annually develop and submit to the commissioner for approval a plan for improvement. Each plan must include the purposes and description of the services the center will provide to: (1) campuses assigned a needs improvement [an unacceptable] performance rating under Section 39.054; (2) the lowest-performing campuses in the region; and (3) other campuses. (d) Each regional education service center shall maintain core services for purchase by school districts and campuses. The core services are: (1) training and assistance in: (A) teaching each subject area assessed under Section 39.023; and (B) providing instruction in personal financial literacy as required under Section 28.0021; (2) training and assistance in providing each program that qualifies for a funding allotment under Section 42.151, 42.152, 42.153, or 42.156; (3) assistance specifically designed for a school district or campus assigned a needs improvement [an unacceptable] performance rating under Section 39.054; (4) training and assistance to teachers, administrators, members of district boards of trustees, and members of site-based decision-making committees; (5) assistance specifically designed for a school district that is considered out of compliance with state or federal special education requirements, based on the agency's most recent compliance review of the district's special education programs; and (6) assistance in complying with state laws and rules. SECTION 2. Section 12.110(e), Education Code, is amended to read as follows: (e) The commissioner shall give priority to applications that propose an open-enrollment charter school campus to be located in the attendance zone of a school district campus assigned a needs improvement [an unacceptable] performance rating under Section 39.054 for the two preceding school years. SECTION 3. Section 12.115(c), Education Code, is amended to read as follows: (c) The commissioner shall revoke the charter of an open-enrollment charter school if: (1) the charter holder has been assigned a needs improvement [an unacceptable] performance rating under Subchapter C, Chapter 39, for the three preceding school years; (2) the charter holder has been assigned a financial accountability performance rating under Subchapter D, Chapter 39, indicating financial performance lower than satisfactory for the three preceding school years; or (3) the charter holder has been assigned any combination of the ratings described by Subdivision (1) or (2) for the three preceding school years. SECTION 4. Sections 12A.008(a) and (c), Education Code, are amended to read as follows: (a) The commissioner may terminate a district's designation as a district of innovation if the district receives for two consecutive school years: (1) a needs improvement [an unacceptable academic] performance rating under Section 39.054; (2) a [an unacceptable] financial accountability rating indicating financial performance lower than satisfactory under Section 39.082; or (3) a needs improvement [an unacceptable academic] performance rating under Section 39.054 for one of the school years and a [an unacceptable] financial accountability rating indicating financial performance lower than satisfactory under Section 39.082 for the other school year. (c) The commissioner shall terminate a district's designation as a district of innovation if the district receives for three consecutive school years: (1) a needs improvement [an unacceptable academic] performance rating under Section 39.054; (2) a [an unacceptable] financial accountability rating indicating financial performance lower than satisfactory under Section 39.082; or (3) any combination of one or more needs improvement [unacceptable] ratings under Subdivision (1) and one or more financial accountability [unacceptable] ratings indicating financial performance lower than satisfactory under Subdivision (2). SECTION 5. The heading to Section 13.054, Education Code, is amended to read as follows: Sec. 13.054. [ACADEMICALLY UNACCEPTABLE] SCHOOL DISTRICTS RATED AS NEEDS IMPROVEMENT. SECTION 6. Sections 13.054(a), (b), and (d), Education Code, are amended to read as follows: (a) The commissioner by order may annex to one or more adjoining districts a school district that has been rated as needs improvement [academically unacceptable] for a period of two years. (b) The governing board of a district to which territory of a [an academically unacceptable] district rated as needs improvement is annexed is the governing board for the new district. (d) Title to the real property of the [academically unacceptable] district rated as needs improvement 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 rated as needs improvement that is allocated to the receiving district under Section 13.004. SECTION 7. Section 21.453(b), Education Code, is amended to read as follows: (b) The commissioner may allocate funds from the account to regional education service centers to provide staff development resources to school districts that: (1) are rated as needs improvement [academically unacceptable]; (2) have one or more campuses rated as needs improvement [academically unacceptable]; or (3) are otherwise in need of assistance as indicated by the academic performance of students, as determined by the commissioner. SECTION 8. Section 39.054(a), Education Code, as effective September 1, 2017, is 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 exemplary, recognized, acceptable, or needs improvement [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 exemplary, recognized, acceptable, or needs improvement [A, B, C, D, or F] for each domain under 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 or F reflects unacceptable performance.] A district may not receive an overall or domain performance rating of exemplary [A] if the district includes any campus with a corresponding overall or domain performance rating of needs improvement [D or F]. A reference in law to an acceptable rating or acceptable performance includes an overall or domain performance rating of [A, B, or C or] exemplary, recognized, or acceptable performance. SECTION 9. Sections 39.054(a-2) and (a-3), Education Code, are amended to read as follows: (a-2) The commissioner by rule shall adopt procedures to ensure that a repeated performance rating of needs improvement [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 and is not compensated for by a performance rating of exemplary, recognized, or acceptable [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 needs improvement [D or F] for the preceding school year, the commissioner shall notify the district of a subsequent such designation on or before June 15. SECTION 10. Section 39.0545(a), Education Code, is amended to read as follows: (a) Each school district shall evaluate the district's performance and the performance of each campus in the district in community and student engagement and in compliance as provided by this section and assign the district and each campus a performance rating of exemplary, recognized, acceptable, or needs improvement [unacceptable] for both overall performance and each individual evaluation factor listed under Subsection (b). Not later than August 8 of each year, the district shall report each performance rating to the agency and make the performance ratings publicly available as provided by commissioner rule. SECTION 11. Section 39.0546(b), Education Code, is amended to read as follows: (b) Based on the evaluation under this section, each school district shall assign the district and each campus shall assign the campus a performance rating of exemplary, recognized, acceptable, or needs improvement [A, B, C, D, or F,] for both overall performance and for each program or category evaluated. [An overall or a program or category performance rating of A reflects exemplary performance. An overall or a program or category performance rating of B reflects recognized performance. An overall or a program or category performance rating of C reflects acceptable performance. An overall or a program or category performance rating of D or F reflects unacceptable performance.] SECTION 12. Section 39.106(e), Education Code, is amended to read as follows: (e) For each year a campus is assigned a needs improvement [an unacceptable] performance rating, a campus intervention team shall: (1) continue to work with a campus until: (A) the campus satisfies all performance standards under Section 39.054(e) for a two-year period; or (B) the campus satisfies all performance standards under Section 39.054(e) for a one-year period and the commissioner determines that the campus is operating and will continue to operate in a manner that improves student achievement; (2) assist in updating the targeted improvement plan to identify and analyze areas of growth and areas that require improvement; and (3) submit each updated plan described by Subdivision (2) to the board of trustees of the school district. SECTION 13. Sections 39.107(a), (a-2), (b-4), (e), (f), (g-1), and (k), Education Code, are amended to read as follows: (a) After a campus has been identified as needs improvement [unacceptable] for two consecutive school years, the commissioner shall order the campus to prepare and submit a campus turnaround plan. The commissioner shall by rule establish procedures governing the time and manner in which the campus must submit the campus turnaround plan. (a-2) Before a campus turnaround plan is prepared and submitted for approval to the board of trustees of the school district, the district, in consultation with the campus intervention team, shall: (1) provide notice to parents, the community, and stakeholders that the campus has received a needs improvement [an academically unacceptable] performance rating for two consecutive years and will be required to submit a campus turnaround plan; and (2) request assistance from parents, the community, and stakeholders in developing the campus turnaround plan. (b-4) A campus turnaround plan developed under this section must take effect not later than the school year following the third consecutive school year that the campus has received a needs improvement [an academically unacceptable] performance rating. (e) If a campus is considered to have a needs improvement [an unacceptable] performance rating for three consecutive school years after the campus is ordered to submit a campus turnaround plan under Subsection (a), the commissioner, subject to Subsection (e-2), shall order: (1) appointment of a board of managers to govern the district as provided by Section 39.112(b); or (2) closure of the campus. (f) Notwithstanding Section 39.112(e), the commissioner may remove a board of managers appointed to govern a district under this section only if the campus that was the basis for the appointment of the board of managers receives an academically acceptable performance rating for two consecutive school years. If a campus that was the basis for the appointment of a board of managers receives a needs improvement [an academically unacceptable] performance rating for two additional consecutive years following the appointment of the board of managers, the commissioner may remove the board of managers and, in consultation with the local community, may appoint a new board of managers to govern the district. (g-1) If the commissioner orders alternative management of a campus under Subsection (d)(2), the school district shall execute a contract with a managing entity for a term not to exceed five years. The commissioner may require a district to extend the term of the contract if the commissioner determines that extending the contract on expiration of the initial term is in the best interest of the students attending the campus. The terms of the contract must be approved by the commissioner. If a campus receives a needs improvement [an academically unacceptable] performance rating for two consecutive school years after the managing entity assumes management of the campus, the commissioner shall cancel the contract with the managing entity. (k) To qualify for consideration as a managing entity under this section, the entity must submit a proposal that provides information relating to the entity's management and leadership team that will participate in management of the campus under consideration, including information relating to individuals that have: (1) documented success in whole school interventions that increased the educational and performance levels of students in campuses considered to have a needs improvement [an unacceptable] performance rating; (2) a proven record of effectiveness with programs assisting low-performing students; (3) a proven ability to apply research-based school intervention strategies; (4) a proven record of financial ability to perform under the management contract; and (5) any other experience or qualifications the commissioner determines necessary. SECTION 14. Sections 39.1071(b) and (d), Education Code, are amended to read as follows: (b) If a campus described under Subsection (a) receives an academically unacceptable performance rating for the 2016-2017 school year and a needs improvement performance rating for the 2017-2018 school year [years], the commissioner shall apply the interventions and sanctions authorized by Section 39.107(e) to the campus. (d) If a campus described under Subsection (c) receives an academically unacceptable performance rating for the 2016-2017 school year and a needs improvement performance rating for the[,] 2017-2018[,] and 2018-2019 school years, the commissioner shall apply the interventions and sanctions authorized by Section 39.107(e) to the campus. SECTION 15. Section 39.306(a), Education Code, is amended to read as follows: (a) Each board of trustees shall publish an annual report describing the educational performance of the district and of each campus in the district that includes uniform student performance and descriptive information as determined under rules adopted by the commissioner. The annual report must also include: (1) campus performance objectives established under Section 11.253 and the progress of each campus toward those objectives, which shall be available to the public; (2) information indicating the district's accreditation status and identifying each district campus awarded a distinction designation under Subchapter G or considered a needs improvement [an unacceptable] campus under Subchapter E; (3) the district's current special education compliance status with the agency; (4) a statement of the number, rate, and type of violent or criminal incidents that occurred on each district campus, to the extent permitted under the Family Educational Rights and Privacy Act of 1974 (20 U.S.C. Section 1232g); (5) information concerning school violence prevention and violence intervention policies and procedures that the district is using to protect students; (6) the findings that result from evaluations conducted under programs or activities to support safe and healthy students authorized under 20 U.S.C. Section 7118 [the Safe and Drug-Free Schools and Communities Act of 1994 (20 U.S.C. Section 7101 et seq.)]; and (7) information received under Section 51.403(e) for each high school campus in the district, presented in a form determined by the commissioner. SECTION 16. Section 39.333, Education Code, is amended to read as follows: Sec. 39.333. REGIONAL AND DISTRICT LEVEL REPORT. As part of the comprehensive biennial report under Section 39.332, the agency shall submit a regional and district level report covering the preceding two school years and containing: (1) a summary of school district compliance with the student/teacher ratios and class-size limitations prescribed by Sections 25.111 and 25.112, including: (A) the number of campuses and classes at each campus granted an exception from Section 25.112; and (B) for each campus granted an exception from Section 25.112, a statement of whether the campus has been awarded a distinction designation under Subchapter G or has been identified as a needs improvement [an unacceptable] campus under Subchapter E; (2) a summary of the exemptions and waivers granted to campuses and school districts under Section 7.056 or 39.232 and a review of the effectiveness of each campus or district following deregulation; (3) an evaluation of the performance of the system of regional education service centers based on the indicators adopted under Section 8.101 and client satisfaction with services provided under Subchapter B, Chapter 8; (4) an evaluation of accelerated instruction programs offered under Section 28.006, including an assessment of the quality of such programs and the performance of students enrolled in such programs; and (5) the number of classes at each campus that are currently being taught by individuals who are not certified in the content areas of their respective classes. SECTION 17. Section 39.361, Education Code, is amended to read as follows: Sec. 39.361. NOTICE IN STUDENT GRADE REPORT. The first written notice of a student's performance that a school district gives during a school year as required by Section 28.022(a)(2) must include: (1) a statement of whether the campus at which the student is enrolled has been awarded a distinction designation under Subchapter G or has been identified as a needs improvement [an unacceptable] campus under Subchapter E; and (2) an explanation of the significance of the information provided under Subdivision (1). SECTION 18. Section 39.363, Education Code, is amended to read as follows: Sec. 39.363. NOTICE ON AGENCY WEBSITE. Not later than October 1 of each year, the agency shall make the following information available to the public on the agency's Internet website: (1) the [letter] performance rating assigned to each school district and campus under Section 39.054 and each distinction designation awarded to a school district or campus under Subchapter G; (2) the performance rating assigned to a school district and each campus in the district by the district under Section 39.0545; and (3) the financial accountability rating assigned to each school district and open-enrollment charter school under Section 39.082. SECTION 19. This Act takes effect September 1, 2017.