By: Bettencourt, Campbell S.B. No. 1365
A BILL TO BE ENTITLED
AN ACT
relating to public school organization, accountability, and fiscal
management.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. STATE AND LOCAL ORGANIZATION AND GOVERNANCE
SECTION 1.01. Section 7.055, Education Code, is amended by
adding Subsection (d) to read as follows:
(d) Notwithstanding any other law, the commissioner's power
to delegate ministerial and executive functions under Subsection
(b)(5) is a valid delegation of authority.
SECTION 1.02. Section 11.151(b), Education Code, is amended
to read as follows:
(b) Except as provided by Sections 39A.201 and 39A.202, the
[The] trustees as a body corporate have the exclusive power and duty
to govern and oversee the management of the public schools of the
district. All powers and duties not specifically delegated by
statute to the agency or to the State Board of Education are
reserved for the trustees, and the agency may not substitute its
judgment for the lawful exercise of those powers and duties by the
trustees.
SECTION 1.03. Section 11.1511(a), Education Code, is
amended to read as follows:
(a) In addition to powers and duties under Section 11.151 or
other law, the board of trustees of an independent school district
has the powers and duties provided by Subsection (b), except as
otherwise provided by Sections 39A.201 and 39A.202.
ARTICLE 2. PUBLIC SCHOOL SYSTEM ACCOUNTABILITY
SECTION 2.01. Chapter 5, Education Code, is amended by
adding Section 5.003 to read as follows:
Sec. 5.003. FINAL AND UNAPPEALABLE. In this title, if an
order, decision, or determination is described as final and
unappealable, an interlocutory or intermediate order, decision, or
determination made or reached before the final order, decision, or
determination may be appealed only if specifically authorized by
this code or a rule adopted under this code.
SECTION 2.02. Sections 12.1141(b) and (d), Education Code,
are amended to read as follows:
(b) At the end of the term of a charter for an
open-enrollment charter school, if a charter holder submits to the
commissioner a petition for expedited renewal of the charter, the
charter automatically renews unless, not later than the 30th day
after the date the charter holder submits the petition, the
commissioner provides written notice to the charter holder that
expedited renewal of the charter is denied. The commissioner may
not deny expedited renewal of a charter if:
(1) the charter holder has been assigned the highest
or second highest performance rating under Subchapter C, Chapter
39, for the three preceding school years;
(2) the charter holder has been assigned a financial
performance accountability rating under Subchapter D, Chapter 39,
indicating financial performance that is satisfactory or better for
the three preceding school years; and
(3) no campus operating under the charter has been
assigned an unacceptable [the lowest] performance rating under
Subchapter C, Chapter 39, for the three preceding school years or
such a campus has been closed.
(d) At the end of the term of a charter for an
open-enrollment charter school, if a charter holder submits to the
commissioner a petition for renewal of the charter, the
commissioner may not renew the charter and shall allow the charter
to expire if:
(1) the charter holder has been assigned an
unacceptable [the lowest] performance rating under Subchapter C,
Chapter 39, for any three of the five preceding school years;
(2) the charter holder has been assigned a financial
accountability performance rating under Subchapter D, Chapter 39,
indicating financial performance that is lower than satisfactory
for any three of the five preceding school years;
(3) the charter holder has been assigned any
combination of the ratings described by Subdivision (1) or (2) for
any three of the five preceding school years; or
(4) any campus operating under the charter has been
assigned an unacceptable [the lowest] performance rating under
Subchapter C, Chapter 39, for the three preceding school years and
such a campus has not been closed.
SECTION 2.03. Sections 39.057 and 39.058, Education Code,
are transferred to Subchapter A, Chapter 39, Education Code,
redesignated as Sections 39.003 and 39.004, Education Code, and
amended to read as follows:
Sec. 39.003 [39.057]. SPECIAL [ACCREDITATION]
INVESTIGATIONS. (a) The commissioner may authorize special
[accreditation] investigations to be conducted:
(1) when excessive numbers of absences of students
eligible to be tested on state assessment instruments are
determined;
(2) when excessive numbers of allowable exemptions
from the required state assessment instruments are determined;
(3) in response to complaints submitted to the agency
with respect to alleged violations of civil rights or other
requirements imposed on the state by federal law or court order;
(4) in response to established compliance reviews of
the district's financial accounting practices and state and federal
program requirements;
(5) when extraordinary numbers of student placements
in disciplinary alternative education programs, other than
placements under Sections 37.006 and 37.007, are determined;
(6) in response to an allegation involving a conflict
between members of the board of trustees or between the board and
the district administration if it appears that the conflict
involves a violation of a role or duty of the board members or the
administration clearly defined by this code;
(7) when excessive numbers of students in special
education programs under Subchapter A, Chapter 29, are assessed
through assessment instruments developed or adopted under Section
39.023(b);
(8) in response to an allegation regarding or an
analysis using a statistical method result indicating a possible
violation of an assessment instrument security procedure
established under Section 39.0301, including for the purpose of
investigating or auditing a school district under that section;
(9) when a significant pattern of decreased academic
performance has developed as a result of the promotion in the
preceding two school years of students who did not perform
satisfactorily as determined by the commissioner under Section
39.0241(a) on assessment instruments administered under Section
39.023(a), (c), or (l);
(10) when excessive numbers of students eligible to
enroll fail to complete an Algebra II course or any other advanced
course as determined by the commissioner;
(11) when resource allocation practices as evaluated
under Section 39.0821 indicate a potential for significant
improvement in resource allocation;
(12) when a disproportionate number of students of a
particular demographic group is graduating with a particular
endorsement under Section 28.025(c-1);
(13) when an excessive number of students is
graduating with a particular endorsement under Section
28.025(c-1);
(14) in response to a complaint submitted to the
agency with respect to alleged inaccurate data that is reported
through the Public Education Information Management System (PEIMS)
or through other reports required by state or federal law or rule or
court order and that is used by the agency to make a determination
relating to public school accountability, including accreditation,
under this chapter;
(15) when a school district for any reason fails to
produce, at the request of the agency, evidence or an investigation
report relating to an educator who is under investigation by the
State Board for Educator Certification; or
(16) as the commissioner otherwise determines
necessary.
(b) If the agency's findings in an investigation under
Subsection (a)(6) indicate that the board of trustees has observed
a lawfully adopted policy that does not otherwise violate a law or
rule, the agency may not substitute its judgment for that of the
board.
(c) The commissioner may authorize special [accreditation]
investigations to be conducted in response to repeated complaints
submitted to the agency concerning imposition of excessive
paperwork requirements on classroom teachers.
(d) Based on the results of a special [accreditation]
investigation, the commissioner may:
(1) take any [appropriate] action under Chapter 39A,
regardless of any requirements applicable to the action that are
provided by that chapter;
(2) lower the school district's accreditation status
or a district's or campus's accountability rating; or
(3) take action under both Subdivisions (1) and (2).
(e) At any time before issuing a report with the agency's
final findings, the commissioner may defer taking an action under
Subsection (d) until:
(1) a person who is a third party, selected by the
commissioner, has reviewed programs or other subjects of an
investigation under this section and submitted a report identifying
problems and proposing solutions;
(2) a district completes a corrective action plan
developed by the commissioner; or
(3) the completion of actions under both Subdivisions
(1) and (2).
(f) Based on the results of an action taken under Subsection
(e), the commissioner may decline to take the deferred action under
Subsection (d).
(g) Section 39A.301 applies to an action taken under
Subsection (d)(1) in the same manner as that section applies to an
action taken under Chapter 39A [Regardless of whether the
commissioner lowers the school district's accreditation status or a
district's or campus's performance rating under Subsection (d), the
commissioner may take action under Section 39A.002 or 39A.051 if
the commissioner determines that the action is necessary to improve
any area of a district's or campus's performance, including the
district's financial accounting practices].
Sec. 39.004 [39.058]. CONDUCT OF SPECIAL [ACCREDITATION]
INVESTIGATIONS. (a) The agency shall adopt written procedures for
conducting special [accreditation] investigations [under this
subchapter], including procedures that allow the agency to obtain
information from district employees in a manner that prevents a
district or campus from screening the information. The agency
shall make the procedures available on the agency Internet website.
Agency staff must be trained in the procedures and must follow the
procedures in conducting the special [accreditation]
investigation.
(a-1) If the agency determines that it is necessary to
protect the welfare of the witness, the agency may classify the
identity of a witness as confidential and not subject to disclosure
to the district or under Chapter 552, Government Code.
(b) After completing a special [accreditation]
investigation, the agency shall present preliminary findings to any
person or entity the agency finds has violated a law, rule, or
policy. Before issuing a report with its final findings, the agency
must provide a person or entity the agency finds has violated a law,
rule, or policy an opportunity for an informal review by the
commissioner or the commissioner's designee [a designated hearing
examiner].
(c) An informal review under this section is not a contested
case for purposes of Chapter 2001, Government Code.
SECTION 2.04. Section 39.054, Education Code, is amended by
amending Subsections (a), (a-3), and (b-1) and adding Subsections
(a-4) and (a-5) to read as follows:
(a) Except as provided by Subsection (a-4), the [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). 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 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, C, or D, except as
provided by Section 39.0543, or performance that is exemplary,
recognized, or acceptable performance or performance that needs
improvement, except as provided by Section 39.0543. A reference in
law to an unacceptable performance rating includes an overall or
domain performance rating of F and, as provided by Section 39.0543,
D or performance that needs improvement.
(a-3) Not later than August 15 of each year, the following
information [performance ratings of each district and campus] shall
be made publicly available as provided by rules adopted under this
section:
(1) the performance ratings of each school district
and campus; and
(2) if applicable, the number of consecutive school
years of unacceptable performance ratings for each district and
campus.
(a-4) Notwithstanding any other law, the commissioner may
assign a school district or campus an overall performance rating of
"Not Rated" if the commissioner determines that the assignment of a
performance rating of A, B, C, D, or F would be inappropriate
because:
(1) the district or campus is located in an area that
is subject to a declaration of a state of disaster under Chapter
418, Government Code, and due to the disaster, performance
indicators for the district or campus are difficult to measure or
evaluate and would not accurately reflect quality of learning and
achievement for the district or campus;
(2) the district or campus has experienced breaches or
other failures in data integrity to the extent that accurate
analysis of data regarding performance indicators is not possible;
(3) the number of students enrolled in the district or
campus is insufficient to accurately evaluate the performance of
the district or campus; or
(4) for other reasons outside the control of the
district or campus, the performance indicators would not accurately
reflect quality of learning and achievement for the district or
campus.
(a-5) Notwithstanding any other law, an overall performance
rating of "Not Rated" is not included in calculating consecutive
school years of unacceptable performance ratings and is not
considered a break in consecutive school years of unacceptable
performance ratings for purposes of any provision of this code.
(b-1) Consideration of the effectiveness of district
programs under Section 39.052(b)(2)(B) or (C):
(1) must:
(A) be based on data collected through the Public
Education Information Management System (PEIMS) for purposes of
accountability under this chapter; and
(B) include the results of assessments required
under Section 39.023; and
(2) may be based on the results of a special
[accreditation] investigation conducted under Section 39.003
[39.057].
SECTION 2.05. Subchapter C, Chapter 39, Education Code, is
amended by adding Section 39.0543 to read as follows:
Sec. 39.0543. NEEDS IMPROVEMENT OR UNACCEPTABLE
PERFORMANCE RATING. (a) A reference in law to an acceptable
performance or acceptable performance rating for a school district,
open-enrollment charter school, district campus, or charter school
campus includes an overall performance rating of D if, since
previously receiving an overall performance rating of C or higher,
the district, charter school, district campus, or charter school
campus:
(1) has not previously received more than one overall
performance rating of D; or
(2) has not received an overall performance rating of
F.
(a-1) For the purposes of this section, an overall
performance rating issued in a previous school year for a school
district, open-enrollment charter school, district campus, or
charter school campus of:
(1) met standard, academically acceptable,
recognized, exemplary, A, B, or C is considered to be a performance
rating of C or higher; and
(2) improvement required, academically unacceptable,
or F is considered to be a rating of F.
(a-2) Subsection (a-1) and this subsection expire September
1, 2027.
(b) A reference in law to an unacceptable performance or
unacceptable performance rating includes a performance rating of D
if the rating does not satisfy Subsection (a).
SECTION 2.06. Subchapter C, Chapter 39, Education Code, is
amended by adding Section 39.0545 to read as follows:
Sec. 39.0545. ALTERNATIVE METHODS AND STANDARDS FOR
EVALUATING PERFORMANCE FOR 2020-2021 SCHOOL YEAR. (a) This
section applies to a campus:
(1) that meets the participation requirements for all
students in all subject areas for the annual measurement of
achievement under Section 1111, Every Student Succeeds Act (20
U.S.C. Section 6311(c)(4)(E));
(2) to which the most recent performance rating
assigned, other than a "Not Rated" rating, is a D, F, or performance
that needs improvement; and
(3) is not subject to the appointment of a board of
managers under Section 39A.117(b).
(b) Notwithstanding any other law, the commissioner shall
adopt rules to develop and implement alternative methods and
standards for evaluating the performance for the 2020-2021 school
year of a campus to which this section applies. The rules adopted
under this section must evaluate a campus under the domains of
indicators of achievement listed in Sections 39.053(c)(1) and (2).
(c) The commissioner shall review a campus to which this
section applies under the alternative methods and standards adopted
under Subsection (b) on the request of the school district in which
the campus is located made by the deadline established by
commissioner rule.
(d) An acceptable performance rating assigned under the
alternative methods and standards adopted by the commissioner under
Subsection (b) is considered a break in consecutive school years of
unacceptable performance ratings under this code.
(e) This section does not apply to an intervention ordered
on the basis of consecutive school years of unacceptable
performance ratings accrued before the effective date of this
section.
(f) This section expires September 1, 2027.
SECTION 2.07. Sections 39.151(a), (b), and (e), Education
Code, are amended to read as follows:
(a) The commissioner by rule shall provide a process for a
school district or open-enrollment charter school to challenge an
agency decision made under this chapter relating to an academic or
financial accountability rating that affects the district or
school, including a determination of consecutive school years of
unacceptable performance ratings.
(b) The rules under Subsection (a) must provide for the
commissioner to appoint a committee to make recommendations to the
commissioner on a challenge made to an agency decision relating to
an academic performance rating or determination, including a
determination of consecutive school years of unacceptable
performance ratings, or financial accountability rating. The
commissioner may not appoint an agency employee as a member of the
committee.
(e) A school district or open-enrollment charter school may
not challenge an agency decision relating to an academic or
financial accountability rating under this chapter, including a
decision relating to a determination of consecutive school years of
unacceptable performance ratings, in another proceeding if the
district or school has had an opportunity to challenge the decision
under this section.
SECTION 2.08. Section 39A.003, Education Code, is amended
by adding Subsection (d) to read as follows:
(d) A conservator or management team may exercise the powers
and duties defined by the commissioner under Subsection (a) or
described by Subsection (c) regardless of whether the conservator
or management team was appointed to oversee the operations of a
school district in its entirety or the operations of a certain
campus within the district.
SECTION 2.09. Sections 39A.006(a) and (b), Education Code,
are amended to read as follows:
(a) This section applies:
(1) regardless of whether a school district has
satisfied the accreditation criteria; and
(2) to a conservator or management team appointed
under any provision of this title, regardless of the scope or any
changes to the scope of the conservator's or team's oversight.
(b) If for two consecutive school years, including the
current school year, a school district has had a conservator or
management team assigned to the district or a district campus for
any reason under this title, the commissioner may appoint a board of
managers to exercise the powers and duties of the board of trustees
of the district.
SECTION 2.10. Section 39A.061(b), Education Code, is
amended to read as follows:
(b) The commissioner may authorize a targeted improvement
plan, [or] an updated targeted improvement plan, or a local
improvement plan to supersede the provisions of and satisfy the
requirements of developing, reviewing, and revising a campus
improvement plan under Subchapter F, Chapter 11.
SECTION 2.11. Subchapter B, Chapter 39A, Education Code, is
amended by adding Section 39A.065 to read as follows:
Sec. 39A.065. LOCAL IMPROVEMENT PLAN. (a) A school
district, open-enrollment charter school, district campus, or
charter school campus that is assigned a rating of D that qualifies
under Section 39.0543(a) shall develop and implement a local
improvement plan.
(b) A local improvement plan must be presented to the board
of trustees of the school district or governing board of the
open-enrollment charter school.
(c) The commissioner shall adopt rules to establish
requirements for a local improvement plan components and training.
The commissioner may not require a school district or
open-enrollment charter school to submit the local improvement plan
to the agency.
SECTION 2.12. Section 39A.102, Education Code, is amended
by amending Subsection (b) and adding Subsection (b-1) to read as
follows:
(b) Subject to Subsection (b-1), the [The] commissioner may
appoint a monitor, conservator, management team, or board of
managers to the school district to ensure and oversee
district-level support to low-performing campuses and the
implementation of the updated targeted improvement plan.
(b-1) The commissioner shall appoint a conservator to a
school district under Subsection (b) unless and until:
(1) each campus in the district for which a campus
turnaround plan has been ordered under Section 39A.101 receives an
acceptable performance rating for the school year; or
(2) the commissioner determines a conservator is not
necessary.
SECTION 2.13. The heading to Section 39A.110, Education
Code, is amended to read as follows:
Sec. 39A.110. MODIFICATION OF [CHANGE IN] CAMPUS TURNAROUND
PLAN [PERFORMANCE RATING].
SECTION 2.14. Section 39A.110, Education Code, is amended
by adding Subsection (c) to read as follows:
(c) The commissioner may authorize modification of an
approved campus turnaround plan if the commissioner determines that
due to a change in circumstances occurring after the plan's
approval under Section 39A.107, a modification of the plan is
necessary to achieve the plan's objectives.
SECTION 2.15. Section 39A.111, Education Code, is amended
to read as follows:
Sec. 39A.111. CONTINUED UNACCEPTABLE PERFORMANCE RATING.
If a campus is considered to have an unacceptable performance
rating for five [three] consecutive school years [after the campus
is ordered to submit a campus turnaround plan under Section
39A.101], the commissioner, subject to Section 39A.112, shall
order:
(1) appointment of a board of managers to govern the
school district as provided by Section 39A.202; or
(2) closure of the campus.
SECTION 2.16. Subchapter C, Chapter 39A, Education Code, is
amended by adding Sections 39A.117 and 39A.118 to read as follows:
Sec. 39A.117. INTERVENTION FOR CERTAIN DISTRICTS OR
CAMPUSES. (a) For purposes of this section:
(1) an acceptable performance rating includes:
(A) a rating of met standard, academically
acceptable, recognized, exemplary, A, B, or C; or
(B) a rating of D that meets the requirements of
Section 39.0543(a);
(2) an unacceptable performance rating includes:
(A) a rating of improvement required,
academically unacceptable, or F; or
(B) a rating of D that meets the requirements of
Section 39.0543(b); and
(3) a rating of "Not Rated" is not considered an
acceptable or unacceptable performance rating and may not be
considered a break in consecutive years of unacceptable
performance.
(b) As soon as practicable after the effective date of S.B.
1365, Acts of the 87th Legislature, Regular Session, 2021, or
similar legislation, the commissioner shall:
(1) determine the number of school years of
unacceptable performance ratings occurring after the 2012-2013
school year for each school district, open-enrollment charter
school, district campus, or charter school campus by determining
the number of unacceptable performance ratings assigned to each
district, charter school, district campus, or charter school
campus since the most recent acceptable performance rating was
assigned to the district, charter school, district campus, or
charter school campus;
(2) use the number of school years of unacceptable
performance ratings as the base number of consecutive years of
unacceptable performance for which the performance rating in the
2021-2022 school year will be added; and
(3) order the appointment of a board of managers under
Section 39A.111 to the school district or charter school for each
campus that is determined under Subdivision (1) to have been
assigned an unacceptable performance rating for five or more school
years.
(c) Exemptions from interventions authorized under Sections
11.174 and 28.020 and Section 5, Chapter 919 (H.B. 4205), Acts of
the 86th Legislature, Regular Session, 2019, apply to an
intervention ordered under this section and the commissioner shall
make necessary modifications to an intervention ordered under this
section in accordance with those provisions of law.
(d) This section may not be construed to:
(1) provide a school district or open-enrollment
charter school additional remedies or appellate or other review for
previous interventions, sanctions, or performance ratings ordered
or assigned; or
(2) prohibit the commissioner from taking any action
or ordering any intervention or sanction otherwise authorized by
law.
(e) To the extent of conflict with any other transition
provision affecting this section, this transition provision
prevails.
(f) This section expires September 1, 2027.
Sec. 39A.118. INTERVENTION IF ASSIGNED CERTAIN PERFORMANCE
NEEDS IMPROVEMENT RATING. (a) Until another performance rating is
issued, the agency may not implement the intervention or sanctions
as provided by Subsection (b) for a school district,
open-enrollment charter school, district campus, or charter school
campus, if the performance rating initiating the action under
Subsection (b) is based on the first or second overall performance
rating of D, since previously receiving a rating of C or higher.
(b) The following interventions are subject to a pause under
Subsection (a):
(1) revocation of a charter under Section 12.115(c);
(2) annexation under Section 13.054;
(3) change in accreditation status under rules adopted
for accreditation under Section 39.052; and
(4) interventions or sanctions under Section
39A.101(a), 39A.107(a) or (c), or 39A.111.
(c) The performance rating identified under Subsection (a):
(1) may not be included in calculating consecutive
school years of an unacceptable performance rating; and
(2) is not considered a break in consecutive school
years of an unacceptable performance rating.
(d) Interventions or sanctions implemented prior to the
intervention pause under Subsection (a) shall continue during the
school year for which actions under Subsection (b) are paused.
(e) This section does not apply to a commissioner action
based on performance or reasons not listed as interventions under
Subsection (b).
SECTION 2.17. Section 39A.201(a), Education Code, is
amended to read as follows:
(a) Notwithstanding Section 11.151(b) or 11.1511(a) or any
other provision of this code, a [A] board of managers may exercise
all of the powers and duties assigned to a board of trustees of a
school district by law, rule, or regulation.
SECTION 2.18. Section 39A.202(a), Education Code, is
amended to read as follows:
(a) Notwithstanding Section 11.151(b) or 11.1511(a) or any
other provision of this code, if [If] the commissioner appoints a
board of managers to govern a school district:
(1) the powers of the board of trustees of the district
are suspended for the period of the appointment; and
(2) the commissioner shall appoint a district
superintendent.
SECTION 2.19. Section 39A.301, Education Code, is amended
to read as follows:
Sec. 39A.301. REVIEW OF SANCTIONS BY STATE OFFICE OF
ADMINISTRATIVE HEARINGS. (a) A school district or
open-enrollment charter school must appeal under this section if
the district or school [that] intends to challenge a decision by the
commissioner under Section 39.003 or this chapter to:
(1) close the district or a district campus or the
charter school;
(2) [or to] pursue alternative management of a
district campus or the charter school; or
(3) appoint a board of managers to the district or
school under Section 39A.202 [must appeal the decision under this
section].
(b) A challenge under this section to a decision by the
commissioner described by Subsection (a) is subject to review by
the State Office of Administrative Hearings. Notwithstanding
[under this section is under the substantial evidence rule as
provided by Subchapter G,] Chapter 2001, Government Code:
(1) the[. The] commissioner shall adopt procedural
rules for a challenge under this section;
(2) [.
[(c) Notwithstanding other law:
[(1)] the State Office of Administrative Hearings shall
conduct an expedited review of a challenge under this section;
(3) the administrative law judge shall uphold a
decision by the commissioner described by Subsection (a) unless the
judge finds the decision is arbitrary and capricious or clearly
erroneous;
(4) in reviewing any discretionary decisions made by
the commissioner, the administrative law judge may not substitute
the judge's judgment for that of the commissioner;
(5) [(2)] the administrative law judge shall issue a
final order not later than the 30th day after the date on which the
hearing is finally closed;
(6) [(3)] the decision of the administrative law judge
is final and may not be appealed; and
(7) [(4)] the decision of the administrative law judge
may set an effective date for an action under this section.
SECTION 2.20. Section 39A.116, Education Code, is
transferred to Subchapter Z, Chapter 39A, Education Code,
redesignated as Section 39A.906, Education Code, and amended to
read as follows:
Sec. 39A.906 [39A.116]. COMMISSIONER AUTHORITY. A
decision by the commissioner under Chapter 39 or this chapter
[subchapter] is final and may not be appealed, except as provided by
Section 39A.301.
SECTION 2.21. Section 39A.0545, Education Code, is
repealed.
SECTION 2.22. (a) Sections 39.003 and 39.004, Education
Code, as redesignated and amended by this Act, apply to a special
investigation authorized or initiated before, on, or after the
effective date of this Act.
(b) Section 39A.006, Education Code, as amended by this Act,
applies to a conservator or management team assigned to a school
district before, on, or after the effective date of this Act.
SECTION 2.23. If this Act takes effect later than August 15,
2021, the Texas Education Agency shall publish the consecutive
school years of unacceptable performance ratings as required by
Section 39.054(a-3), Education Code, as amended by this Act, for
each school district and campus as soon as practicable after the
effective date of this Act.
SECTION 2.24. As soon as practicable after the effective
date of this Act, the commissioner of education shall adopt rules to
develop and implement alternative methods and standards for
evaluating the performance of a campus for the 2020-2021 school
year as required by Section 39.0545, Education Code, as added by
this Act.
ARTICLE 3. PUBLIC SCHOOL FISCAL MANAGEMENT
SECTION 3.01. Section 44.052(c), Education Code, is amended
to read as follows:
(c) A trustee of a school district who votes to approve any
expenditure of school funds in violation of a provision of this
code, for a purpose for which those funds may not be spent, or in
excess of the item or items appropriated in the adopted budget or a
supplementary or amended budget commits an offense. An offense
under this subsection is a Class C misdemeanor.
SECTION 3.02. Section 45.105, Education Code, is amended by
amending Subsection (c) and adding Subsection (c-1) to read as
follows:
(c) Local school funds from district taxes, tuition fees of
students not entitled to a free education, other local sources, and
state funds not designated for a specific purpose may be used for
the purposes listed for state and county available funds and for
purchasing appliances and supplies, paying insurance premiums,
paying janitors and other employees, buying school sites, buying,
building, repairing, and renting school buildings, including
acquiring school buildings and sites by leasing through annual
payments with an ultimate option to purchase, and, except as
provided by Subsection (c-1), for other purposes necessary in the
conduct of the public schools determined by the board of trustees.
The accounts and vouchers for county districts must be approved by
the county superintendent. If the state available school fund in
any municipality or district is sufficient to maintain the schools
in any year for at least eight months and leave a surplus, the
surplus may be spent for the purposes listed in this subsection.
(c-1) Funds described by Subsection (c) may not be used to
initiate or maintain any action or proceeding against the state or
an agency or officer of the state arising out of a decision, order,
or determination that is final and unappealable under a provision
of this code, except that funds may be used for an action or
proceeding that is specifically authorized by a provision of this
code or a rule adopted under this code and that results in a final
and unappealable decision, order, or determination.
SECTION 3.03. Section 48.201, Education Code, is amended to
read as follows:
Sec. 48.201. PURPOSE. The purpose of the tier two component
of the Foundation School Program is to provide each school district
with the opportunity to provide the basic program and to supplement
that program at a level of its own choice. An allotment under this
subchapter may be used for any legal purpose other than:
(1) capital outlay or debt service; or
(2) a purpose prohibited by Section 45.105(c-1) or
another provision of this code.
SECTION 3.04. Section 39A.203, Education Code, is repealed.
SECTION 3.05. Section 44.052(c), Education Code, as amended
by this Act, applies only to an offense committed on or after the
effective date of this Act. An offense committed before the
effective date of this Act is governed by the law in effect when the
offense was committed, and the former law is continued in effect for
that purpose. For purposes of this section, an offense was
committed before the effective date of this Act if any element of
the offense occurred before that date.
ARTICLE 4. CONFORMING AMENDMENTS
SECTION 4.01. Section 7.028(a), Education Code, is amended
to read as follows:
(a) Except as provided by Section 21.006(k), 22.093(l),
22.096, 28.006, 29.001(5), 29.010(a), 38.003, or 39.003 [39.057],
the agency may monitor compliance with requirements applicable to a
process or program provided by a school district, campus, program,
or school granted charters under Chapter 12, including the process
described by Subchapter F, Chapter 11, or a program described by
Subchapter B, C, D, E, F, H, or I, Chapter 29, or Subchapter A,
Chapter 37, only as necessary to ensure:
(1) compliance with federal law and regulations;
(2) financial accountability, including compliance
with grant requirements;
(3) data integrity for purposes of:
(A) the Public Education Information Management
System (PEIMS); and
(B) accountability under Chapters 39 and 39A; and
(4) qualification for funding under Chapter 48.
SECTION 4.02. Section 12.013(b), Education Code, is amended
to read as follows:
(b) A home-rule school district is subject to:
(1) a provision of this title establishing a criminal
offense;
(2) a provision of this title relating to limitations
on liability; and
(3) a prohibition, restriction, or requirement, as
applicable, imposed by this title or a rule adopted under this
title, relating to:
(A) the Public Education Information Management
System (PEIMS) to the extent necessary to monitor compliance with
this subchapter as determined by the commissioner;
(B) educator certification under Chapter 21 and
educator rights under Sections 21.407, 21.408, and 22.001;
(C) criminal history records under Subchapter C,
Chapter 22;
(D) student admissions under Section 25.001;
(E) school attendance under Sections 25.085,
25.086, and 25.087;
(F) inter-district or inter-county transfers of
students under Subchapter B, Chapter 25;
(G) elementary class size limits under Section
25.112, in the case of any campus in the district that fails to
satisfy any standard under Section 39.054(e);
(H) high school graduation under Section 28.025;
(I) special education programs under Subchapter
A, Chapter 29;
(J) bilingual education under Subchapter B,
Chapter 29;
(K) prekindergarten programs under Subchapter E,
Chapter 29;
(L) safety provisions relating to the
transportation of students under Sections 34.002, 34.003, 34.004,
and 34.008;
(M) computation and distribution of state aid
under Chapters 31, 43, and 48;
(N) extracurricular activities under Section
33.081;
(O) health and safety under Chapter 38;
(P) public school accountability and special
investigations under Subchapters A, B, C, D, and J, Chapter 39, and
Chapter 39A;
(Q) options for local revenue levels in excess of
entitlement under Chapter 49;
(R) a bond or other obligation or tax rate under
Chapters 43, 45, and 48; and
(S) purchasing under Chapter 44.
SECTION 4.03. Section 12.056(b), Education Code, is amended
to read as follows:
(b) A campus or program for which a charter is granted under
this subchapter is subject to:
(1) a provision of this title establishing a criminal
offense; and
(2) a prohibition, restriction, or requirement, as
applicable, imposed by this title or a rule adopted under this
title, relating to:
(A) the Public Education Information Management
System (PEIMS) to the extent necessary to monitor compliance with
this subchapter as determined by the commissioner;
(B) criminal history records under Subchapter C,
Chapter 22;
(C) high school graduation under Section 28.025;
(D) special education programs under Subchapter
A, Chapter 29;
(E) bilingual education under Subchapter B,
Chapter 29;
(F) prekindergarten programs under Subchapter E,
Chapter 29;
(G) extracurricular activities under Section
33.081;
(H) health and safety under Chapter 38;
(I) public school accountability and special
investigations under Subchapters A, B, C, D, F, and J, Chapter 39,
and Chapter 39A; and
(J) the duty to discharge or refuse to hire
certain employees or applicants for employment under Section
12.1059.
SECTION 4.04. Section 12.104(b), Education Code, as amended
by Chapters 262 (H.B. 1597), 464 (S.B. 11), 467 (H.B. 4170), and 943
(H.B. 3), Acts of the 86th Legislature, Regular Session, 2019, is
reenacted and amended to read as follows:
(b) An open-enrollment charter school is subject to:
(1) a provision of this title establishing a criminal
offense;
(2) the provisions in Chapter 554, Government Code;
and
(3) a prohibition, restriction, or requirement, as
applicable, imposed by this title or a rule adopted under this
title, relating to:
(A) the Public Education Information Management
System (PEIMS) to the extent necessary to monitor compliance with
this subchapter as determined by the commissioner;
(B) criminal history records under Subchapter C,
Chapter 22;
(C) reading instruments and accelerated reading
instruction programs under Section 28.006;
(D) accelerated instruction under Section
28.0211;
(E) high school graduation requirements under
Section 28.025;
(F) special education programs under Subchapter
A, Chapter 29;
(G) bilingual education under Subchapter B,
Chapter 29;
(H) prekindergarten programs under Subchapter E
or E-1, Chapter 29;
(I) extracurricular activities under Section
33.081;
(J) discipline management practices or behavior
management techniques under Section 37.0021;
(K) health and safety under Chapter 38;
(L) public school accountability and special
investigations under Subchapters A, B, C, D, F, G, and J, Chapter
39, and Chapter 39A;
(M) the requirement under Section 21.006 to
report an educator's misconduct;
(N) intensive programs of instruction under
Section 28.0213;
(O) the right of a school employee to report a
crime, as provided by Section 37.148;
(P) bullying prevention policies and procedures
under Section 37.0832;
(Q) the right of a school under Section 37.0052
to place a student who has engaged in certain bullying behavior in a
disciplinary alternative education program or to expel the student;
(R) the right under Section 37.0151 to report to
local law enforcement certain conduct constituting assault or
harassment;
(S) a parent's right to information regarding the
provision of assistance for learning difficulties to the parent's
child as provided by Sections 26.004(b)(11) and 26.0081(c) and (d);
(T) establishment of residency under Section
25.001;
(U) [(T)] school safety requirements under
Sections 37.108, 37.1081, 37.1082, 37.109, 37.113, 37.114, 37.115,
37.207, and 37.2071;
(V) [(T)] the early childhood literacy and
mathematics proficiency plans under Section 11.185; and
(W) [(U)] the college, career, and military
readiness plans under Section 11.186.
SECTION 4.05. Section 12.1162(a), Education Code, is
amended to read as follows:
(a) The commissioner shall take any of the actions described
by Subsection (b) or by Section 39A.001, 39A.002, 39A.004, 39A.005,
or 39A.007, to the extent the commissioner determines necessary, if
an open-enrollment charter school, as determined by a report issued
under Section 39.004(b) [39.058(b)]:
(1) commits a material violation of the school's
charter;
(2) fails to satisfy generally accepted accounting
standards of fiscal management; or
(3) fails to comply with this subchapter or another
applicable rule or law.
SECTION 4.06. Section 39.0302(a), Education Code, is
amended to read as follows:
(a) During an agency investigation or audit of a school
district under Section 39.0301(e) or (f), a special [an
accreditation] investigation under Section 39.003(a)(8)
[39.057(a)(8)] or (14), a compliance review under Section
21.006(k), 22.093(l), or 22.096, or an investigation by the State
Board for Educator Certification of an educator for an alleged
violation of an assessment instrument security procedure
established under Section 39.0301(a), the commissioner may issue a
subpoena to compel the attendance of a relevant witness or the
production, for inspection or copying, of relevant evidence that is
located in this state.
SECTION 4.07. Section 39.056(h), Education Code, is amended
to read as follows:
(h) The commissioner may at any time convert a monitoring
review to a special [accreditation] investigation under Section
39.003 [39.057], provided the commissioner promptly notifies the
school district of the conversion.
SECTION 4.08. Section 39A.001, Education Code, is amended
to read as follows:
Sec. 39A.001. GROUNDS FOR COMMISSIONER ACTION. The
commissioner shall take any of the actions authorized by this
subchapter to the extent the commissioner determines necessary if:
(1) a school district does not satisfy:
(A) the accreditation criteria under Section
39.052;
(B) the academic performance standards under
Section 39.053 or 39.054; or
(C) any financial accountability standard as
determined by commissioner rule; or
(2) the commissioner considers the action to be
appropriate on the basis of a special [accreditation] investigation
under Section 39.003 [39.057].
SECTION 4.09. Sections 39A.256(a) and (b), Education Code,
are amended to read as follows:
(a) A board of managers appointed for an open-enrollment
charter school [or a campus of an open-enrollment charter school]
under this chapter or Chapter 12 has the powers and duties
prescribed by Section 39A.201(b), if applicable, and Sections
39A.201(a), 39A.202, [39A.203,] and 39A.206(b).
(b) Except as otherwise provided by this subsection, the
board of managers for an open-enrollment charter school [or a
campus of an open-enrollment charter school] may not serve for a
period that exceeds the period authorized by law for a board of
managers appointed for a school district. A board of managers
appointed to wind up the affairs of a former open-enrollment
charter school or campus serves until dissolved by the
commissioner.
SECTION 4.10. To the extent of any conflict, this article
prevails over another Act of the 87th Legislature, Regular Session,
2021, relating to nonsubstantive additions to and corrections in
enacted codes.
ARTICLE 5. EFFECTIVE DATE
SECTION 5.01. 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, 2021.