85S11876 GCB-D By: Villalba H.B. No. 354 A BILL TO BE ENTITLED AN ACT relating to the adoption of teacher performance contracts for classroom teachers and an increased basic allotment for school districts that adopt those contracts. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Chapter 21, Education Code, is amended by adding Subchapter H-1 to read as follows: SUBCHAPTER H-1. TEACHER PERFORMANCE CONTRACTS Sec. 21.371. TEACHER PERFORMANCE CONTRACTS. (a) A school district may adopt teacher performance contracts under this subchapter for use in the district for the purpose of providing specific guidance to classroom teachers on improving performance. (b) A district that adopts teacher performance contracts under this subchapter must use a teacher performance contract evaluation system described by Section 21.372. (c) A teacher performance contract under this subchapter is a supplemental agreement between the district and teacher and does not affect the requirements under this chapter to employ a teacher under a probationary, continuing, or term contract. Sec. 21.372. TEACHER PERFORMANCE CONTRACT EVALUATION SYSTEM. (a) A teacher performance contract evaluation system consists of an appraisal process and performance criteria adopted in accordance with Section 21.352(a)(2) that include evaluation based on: (1) observation of the teacher's performance; (2) student achievement results, as measured by student growth and performance on multiple tests and school growth and performance on state assessment instruments administered under Section 39.023; and (3) research-based, age-appropriate surveys administered to students about the teacher's performance. (b) The evaluation system described by this section must provide that a classroom teacher's performance on each criteria listed in Subsection (a)(1), (2), or (3) is weighted not less than 15 percent of the teacher's appraisal. (c) The evaluation system described by this section must provide not fewer than eight performance levels to which a classroom teacher may be assigned based on the teacher's appraisal. Sec. 21.373. ADDITIONAL COMPENSATION BASED ON APPRAISAL PERFORMANCE LEVEL. (a) A teacher performance contract must provide for additional compensation for a classroom teacher assigned a performance level under the evaluation system described by Section 21.372 that indicates the teacher's performance exceeds the performance expected at the teacher's level of experience. (b) The contract must ensure that the salary of a teacher described by Subsection (a) exceeds the compensation the teacher is entitled to under the minimum salary schedule provided by Section 21.402. Sec. 21.374. CERTAIN EMPLOYMENT RENEWAL PROHIBITED. (a) A school district that adopts teacher performance contracts under this subchapter may not renew the employment contract of a classroom teacher employed under a probationary contract who is assigned the minimum performance level based on the teacher's appraisal for the school year, except as otherwise provided by Subsection (b). (b) The board of trustees of a school district may take specific action to renew the employment of a teacher who is employed under a probationary contract and is assigned the minimum performance level based on the teacher's appraisal for the school year. Sec. 21.375. COMMISSIONER APPROVAL. The commissioner shall approve a school district for purposes of the adjustment in the district's basic allotment provided by Section 42.101(d) if the commissioner determines that: (1) the district has met the requirements for teacher performance contracts provided by this subchapter; and (2) the teacher performance contracts adopted by the district satisfy any commissioner rules adopted to ensure that teacher performance contracts are likely to improve the district's: (A) recruitment of effective classroom teachers; (B) retention of effective classroom teachers; and (C) student performance. Sec. 21.376. RULES. The commissioner may adopt rules to implement this subchapter. SECTION 2. Section 42.101, Education Code, is amended by adding Subsection (d) to read as follows: (d) Notwithstanding any other provision of this section, for a school district that adopts teacher performance contracts under Subchapter H-1, Chapter 21, and receives commissioner approval under Section 21.375, the basic allotment to which the district would otherwise be entitled under this section is increased by the amount that results from the following formula: I = $50 X (PCE/TE) where: "I" is the amount by which the district's basic allotment is increased under this subsection; "PCE" is the number of classroom teachers employed by the district that have entered a teacher performance contract with the district; and "TE" is the total number of classroom teachers employed by the district. SECTION 3. This Act applies beginning with the 2018-2019 school year. SECTION 4. This Act takes effect December 1, 2017.