Texas 2021 - 87th Regular

Texas Senate Bill SB1365 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	S.B. No. 1365
	1	+	By: Bettencourt, et al. S.B. No. 1365
	2	+	(Huberty, Dutton, King of Hemphill, Murphy, Oliverson)
2	3
3	4
	5	+	A BILL TO BE ENTITLED
4	6		AN ACT
5	7		relating to public school organization, accountability, and fiscal
6	8		management.
7	9		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	10		ARTICLE 1. STATE AND LOCAL ORGANIZATION AND GOVERNANCE
9	11		SECTION 1.01. Section 7.055, Education Code, is amended by
10	12		adding Subsection (d) to read as follows:
11	13		(d) Notwithstanding any other law, the commissioner's power
12	14		to delegate ministerial and executive functions under Subsection
13	15		(b)(5) is a valid delegation of authority.
14	16		SECTION 1.02. Section 11.151(b), Education Code, is amended
15	17		to read as follows:
16	18		(b) Except as provided by Sections 39A.201 and 39A.202, the
17	19		[The] trustees as a body corporate have the exclusive power and duty
18	20		to govern and oversee the management of the public schools of the
19	21		district. All powers and duties not specifically delegated by
20	22		statute to the agency or to the State Board of Education are
21	23		reserved for the trustees, and the agency may not substitute its
22	24		judgment for the lawful exercise of those powers and duties by the
23	25		trustees.
24	26		SECTION 1.03. Section 11.1511(a), Education Code, is
25	27		amended to read as follows:
26	28		(a) In addition to powers and duties under Section 11.151 or
27	29		other law, the board of trustees of an independent school district
28	30		has the powers and duties provided by Subsection (b), except as
29	31		otherwise provided by Sections 39A.201 and 39A.202.
30	32		ARTICLE 2. PUBLIC SCHOOL SYSTEM ACCOUNTABILITY
31	33		SECTION 2.01. Chapter 5, Education Code, is amended by
32	34		adding Section 5.003 to read as follows:
33		-	Sec. 5.003. ~~APPEAL~~. If an ~~order, decision, or~~
34		-	determination is described as final ~~in Chapter 7, 11, 12, 39, or~~
35		-	~~39A~~, an interlocutory or intermediate order, decision, ~~report,~~ or
	35	+	Sec. 5.003. FINAL AND UNAPPEALABLE. In this title, if an
	36	+	order, decision, or determination is described as final and
	37	+	unappealable, an interlocutory or intermediate order, decision, or
36	38		determination made or reached before the final order, decision, or
37		-	determination may be appealed only as specifically authorized by
	39	+	determination may be appealed only if specifically authorized by
38	40		this code or a rule adopted under this code.
39	41		SECTION 2.02. Sections 12.1141(b) and (d), Education Code,
40	42		are amended to read as follows:
41	43		(b) At the end of the term of a charter for an
42	44		open-enrollment charter school, if a charter holder submits to the
43	45		commissioner a petition for expedited renewal of the charter, the
44	46		charter automatically renews unless, not later than the 30th day
45	47		after the date the charter holder submits the petition, the
46	48		commissioner provides written notice to the charter holder that
47	49		expedited renewal of the charter is denied. The commissioner may
48	50		not deny expedited renewal of a charter if:
49	51		(1) the charter holder has been assigned the highest
50	52		or second highest performance rating under Subchapter C, Chapter
51	53		39, for the three preceding school years;
52	54		(2) the charter holder has been assigned a financial
53	55		performance accountability rating under Subchapter D, Chapter 39,
54	56		indicating financial performance that is satisfactory or better for
55	57		the three preceding school years; and
56	58		(3) no campus operating under the charter has been
57	59		assigned an unacceptable [the lowest] performance rating under
58	60		Subchapter C, Chapter 39, for the three preceding school years or
59	61		such a campus has been closed.
60	62		(d) At the end of the term of a charter for an
61	63		open-enrollment charter school, if a charter holder submits to the
62	64		commissioner a petition for renewal of the charter, the
63	65		commissioner may not renew the charter and shall allow the charter
64	66		to expire if:
65	67		(1) the charter holder has been assigned an
66	68		unacceptable [the lowest] performance rating under Subchapter C,
67	69		Chapter 39, for any three of the five preceding school years;
68	70		(2) the charter holder has been assigned a financial
69	71		accountability performance rating under Subchapter D, Chapter 39,
70	72		indicating financial performance that is lower than satisfactory
71	73		for any three of the five preceding school years;
72	74		(3) the charter holder has been assigned any
73	75		combination of the ratings described by Subdivision (1) or (2) for
74	76		any three of the five preceding school years; or
75	77		(4) any campus operating under the charter has been
76	78		assigned an unacceptable [the lowest] performance rating under
77	79		Subchapter C, Chapter 39, for the three preceding school years and
78	80		such a campus has not been closed.
79		-	SECTION 2.03. Section 29.202(a), Education Code, is amended
80		-	to read as follows:
81		-	(a) A student is eligible to receive a public education
82		-	grant or to attend another public school in the district in which
83		-	the student resides under this subchapter if the student is
84		-	assigned to attend a public school campus assigned an unacceptable
85		-	performance rating that is made publicly available under Section
86		-	39.054 [for:
87		-	[(1) the student achievement domain under Section
88		-	39.053(c)(1); and
89		-	[(2) the school progress domain under Section
90		-	39.053(c)(2)].
91		-	SECTION 2.04. Sections 39.057 and 39.058, Education Code,
	81	+	SECTION 2.03. Sections 39.057 and 39.058, Education Code,
92	82		are transferred to Subchapter A, Chapter 39, Education Code,
93	83		redesignated as Sections 39.003 and 39.004, Education Code, and
94	84		amended to read as follows:
95	85		Sec. 39.003 [39.057]. SPECIAL [ACCREDITATION]
96	86		INVESTIGATIONS. (a) The commissioner may authorize special
97	87		[accreditation] investigations to be conducted:
98	88		(1) when excessive numbers of absences of students
99	89		eligible to be tested on state assessment instruments are
100	90		determined;
101	91		(2) when excessive numbers of allowable exemptions
102	92		from the required state assessment instruments are determined;
103	93		(3) in response to complaints submitted to the agency
104	94		with respect to alleged violations of civil rights or other
105	95		requirements imposed on the state by federal law or court order;
106	96		(4) in response to established compliance reviews of
107	97		the district's financial accounting practices and state and federal
108	98		program requirements;
109	99		(5) when extraordinary numbers of student placements
110	100		in disciplinary alternative education programs, other than
111	101		placements under Sections 37.006 and 37.007, are determined;
112	102		(6) in response to an allegation involving a conflict
113	103		between members of the board of trustees or between the board and
114	104		the district administration if it appears that the conflict
115	105		involves a violation of a role or duty of the board members or the
116	106		administration clearly defined by this code;
117	107		(7) when excessive numbers of students in special
118	108		education programs under Subchapter A, Chapter 29, are assessed
119	109		through assessment instruments developed or adopted under Section
120	110		39.023(b);
121	111		(8) in response to an allegation regarding or an
122	112		analysis using a statistical method result indicating a possible
123	113		violation of an assessment instrument security procedure
124	114		established under Section 39.0301, including for the purpose of
125	115		investigating or auditing a school district under that section;
126	116		(9) when a significant pattern of decreased academic
127	117		performance has developed as a result of the promotion in the
128	118		preceding two school years of students who did not perform
129	119		satisfactorily as determined by the commissioner under Section
130	120		39.0241(a) on assessment instruments administered under Section
131	121		39.023(a), (c), or (l);
132	122		(10) when excessive numbers of students eligible to
133	123		enroll fail to complete an Algebra II course or any other advanced
134	124		course as determined by the commissioner;
135	125		(11) when resource allocation practices as evaluated
136	126		under Section 39.0821 indicate a potential for significant
137	127		improvement in resource allocation;
138	128		(12) when a disproportionate number of students of a
139	129		particular demographic group is graduating with a particular
140	130		endorsement under Section 28.025(c-1);
141	131		(13) when an excessive number of students is
142	132		graduating with a particular endorsement under Section
143	133		28.025(c-1);
144	134		(14) in response to a complaint submitted to the
145	135		agency with respect to alleged inaccurate data that is reported
146	136		through the Public Education Information Management System (PEIMS)
147	137		or through other reports required by state or federal law or rule or
148	138		court order and that is used by the agency to make a determination
149	139		relating to public school accountability, including accreditation,
150	140		under this chapter;
151	141		(15) when a school district for any reason fails to
152	142		produce, at the request of the agency, evidence or an investigation
153	143		report relating to an educator who is under investigation by the
154	144		State Board for Educator Certification; or
155	145		(16) as the commissioner otherwise determines
156	146		necessary.
157	147		(b) If the agency's findings in an investigation under
158	148		Subsection (a)(6) indicate that the board of trustees has observed
159	149		a lawfully adopted policy that does not otherwise violate a law or
160	150		rule, the agency may not substitute its judgment for that of the
161	151		board.
162	152		(c) The commissioner may authorize special [accreditation]
163	153		investigations to be conducted in response to repeated complaints
164	154		submitted to the agency concerning imposition of excessive
165	155		paperwork requirements on classroom teachers.
166	156		(d) Based on the results of a special [accreditation]
167	157		investigation, the commissioner may:
168		-	(1) take appropriate action under Chapter 39A;
	158	+	(1) take any [appropriate] action under Chapter 39A,
	159	+	regardless of any requirements applicable to the action that are
	160	+	provided by that chapter;
169	161		(2) lower the school district's accreditation status
170	162		or a district's or campus's accountability rating; or
171	163		(3) take action under both Subdivisions (1) and (2).
172	164		(e) At any time before issuing a report with the agency's
173	165		final findings, the commissioner may defer taking an action under
174	166		Subsection (d) until:
175	167		(1) a person who is a third party, selected by the
176	168		commissioner, has reviewed programs or other subjects of an
177	169		investigation under this section and submitted a report identifying
178	170		problems and proposing solutions;
179	171		(2) a district completes a corrective action plan
180	172		developed by the commissioner; or
181	173		(3) the completion of actions under both Subdivisions
182	174		(1) and (2).
183	175		(f) Based on the results of an action taken under Subsection
184	176		(e), the commissioner may decline to take the deferred action under
185		-	Subsection (d) [Regardless of whether the commissioner lowers the
186		-	school district's accreditation status or a district's or campus's
187		-	performance rating under Subsection (d), the commissioner may take
188		-	action under Section 39A.002 or 39A.051 if the commissioner
189		-	determines that the action is necessary to improve any area of a
190		-	district's or campus's performance, including the district's
191		-	financial accounting practices].
	177	+	Subsection (d).
	178	+	(g) Section 39A.301 applies to an action taken under
	179	+	Subsection (d)(1) in the same manner as that section applies to an
	180	+	action taken under Chapter 39A [Regardless of whether the
	181	+	commissioner lowers the school district's accreditation status or a
	182	+	district's or campus's performance rating under Subsection (d), the
	183	+	commissioner may take action under Section 39A.002 or 39A.051 if
	184	+	the commissioner determines that the action is necessary to improve
	185	+	any area of a district's or campus's performance, including the
	186	+	district's financial accounting practices].
192	187		Sec. 39.004 [39.058]. CONDUCT OF SPECIAL [ACCREDITATION]
193	188		INVESTIGATIONS. (a) The agency shall adopt written procedures for
194	189		conducting special [accreditation] investigations [under this
195	190		subchapter], including procedures that allow the agency to obtain
196	191		information from district employees in a manner that prevents a
197	192		district or campus from screening the information. The agency
198	193		shall make the procedures available on the agency Internet website.
199	194		Agency staff must be trained in the procedures and must follow the
200	195		procedures in conducting the special [accreditation]
201	196		investigation.
202		-	(a-1) During the pendency of a special investigation under
203		-	this section, the agency is not required to disclose the identity of
204		-	any witness.
	197	+	(a-1) If the agency determines that it is necessary to
	198	+	protect the welfare of the witness, the agency may classify the
	199	+	identity of a witness as confidential and not subject to disclosure
	200	+	to the district or under Chapter 552, Government Code.
205	201		(b) After completing a special [accreditation]
206	202		investigation, the agency shall present preliminary findings to any
207	203		person or entity the agency finds has violated a law, rule, or
208		-	policy. [Before issuing a report with its final findings, the
209		-	agency must provide a person or entity the agency finds has violated
210		-	a law, rule, or policy an opportunity for an informal review by the
211		-	commissioner or a designated hearing examiner.]
212		-	(c) In presenting the agency's preliminary findings to a
213		-	school district under Subsection (b), the agency:
214		-	(1) shall provide to the district a written report of
215		-	the agency's preliminary findings of the investigation;
216		-	(2) shall provide to the district any evidence relied
217		-	on by the agency in making the preliminary findings;
218		-	(3) shall disclose to the district the identity of any
219		-	witness whose statements the agency relied on in making the
220		-	preliminary findings; and
221		-	(4) may not include recommended sanctions or
222		-	interventions.
223		-	(d) A written report of preliminary findings under
224		-	Subsection (c) and all associated materials produced by the agency
225		-	in support of the report are excepted from public disclosure as
226		-	audit working papers of the agency under Section 552.116,
227		-	Government Code. A school district may publicly release a report of
228		-	preliminary findings only if the release is approved by an
229		-	affirmative vote of the board of trustees of the district.
230		-	(e) Unless otherwise provided by law, all evidence
231		-	collected by the agency in connection with a special investigation,
232		-	including witness statements and videos of agency interviews, are
233		-	confidential and not subject to disclosure under Chapter 552,
234		-	Government Code, except that evidence described by this section may
235		-	be disclosed:
236		-	(1) to a person with a legitimate interest in the
237		-	investigation; or
238		-	(2) in connection with an administrative or other
239		-	legal proceeding brought under this title.
240		-	(f) Not later than 30 days after the date on which the board
241		-	of trustees of the school district receives the written report of
242		-	the preliminary findings under Subsection (c), the board of
243		-	trustees of a school district may accept the agency's findings or
244		-	respond in writing to the agency.
245		-	(g) The agency shall consider any response submitted by the
246		-	board of trustees of the school district under Subsection (f)
247		-	before providing the board of trustees of a school district a final
248		-	report in writing that includes proposed sanctions or
249		-	interventions.
250		-	(h) Before the commissioner determines to order a sanction
251		-	or intervention based on a final report, other than a sanction or
252		-	intervention described by Section 39.005, the commissioner or the
253		-	commissioner's designee shall provide an informal review. An
254		-	informal review provided under this section is not a contested case
255		-	for purposes of Chapter 2001, Government Code.
256		-	(i) In conducting a special investigation under Section
257		-	39.003, the commissioner or the commissioner's designee may
258		-	subpoena a current or former school district employee, agent, or
259		-	official to compel the employee, agent, or official to attend a
260		-	deposition or produce documents reasonably necessary for the
261		-	investigation.
262		-	(j) If a person fails to comply with a subpoena issued under
263		-	Subsection (i), the commissioner, acting through the attorney
264		-	general, may file suit to enforce the subpoena in a district court
265		-	in this state. On a finding that good cause exists for issuing the
266		-	subpoena, the court shall order the person to comply with the
267		-	subpoena and the court may punish a person who fails to obey the
268		-	court order.
269		-	(k) A court may not enjoin a special investigation conducted
270		-	under this section prior to the conclusion of the special
271		-	investigation.
272		-	(l) A school district must exhaust the administrative
273		-	remedies provided under this subchapter before appealing the
274		-	findings or final recommendations of a special investigation
275		-	conducted under this section to a court.
276		-	SECTION 2.05. Subchapter A, Chapter 39, Education Code, is
277		-	amended by adding Sections 39.005, 39.006, and 39.007 to read as
278		-	follows:
279		-	Sec. 39.005. HEARING FOLLOWING INVESTIGATION. (a) This
280		-	section applies to a school district that is the subject of a
281		-	special investigation conducted under Section 39.003 that resulted
282		-	in a final report in which the agency recommends the appointment of
283		-	a board of managers, alternative management of a campus, or closure
284		-	of the district or a district campus.
285		-	(b) Except as provided by Subsection (c), not later than 15
286		-	days after the date on which the board of trustees of the school
287		-	district receives the final report of a special investigation under
288		-	Section 39.004(g), a board of trustees of a school district to which
289		-	this section applies may request a hearing if the board of trustees
290		-	disagrees with the final report or a sanction or intervention
291		-	recommended by the agency in the report.
292		-	(c) A school district and the agency may agree in writing to
293		-	extend the time period for requesting a hearing under Subsection
294		-	(b) by not more than an additional 30 days.
295		-	(d) If a board of trustees of a school district requests a
296		-	hearing under Subsection (b), the hearing shall be conducted by the
297		-	State Office of Administrative Hearings unless the district and the
298		-	agency agree in writing to the appointment of another qualified
299		-	person to conduct the hearing.
300		-	(e) Except as otherwise provided by this subchapter, a
301		-	hearing conducted under this section is a contested case under
302		-	Chapter 2001, Government Code.
303		-	(f) A hearing conducted under this section shall be held at
304		-	the administrative offices of the school district that requested
305		-	the hearing or at another location within the geographic boundaries
306		-	of the district agreed to by the district and the agency, unless the
307		-	district and the agency agree in writing to a different location.
308		-	(g) To protect the privacy of a witness who is a child, the
309		-	hearing examiner or the person conducting the hearing may:
310		-	(1) close the hearing to receive the testimony of the
311		-	witness; or
312		-	(2) order that the testimony or a statement of the
313		-	witness be presented using the procedures prescribed by Article
314		-	38.071, Code of Criminal Procedure.
315		-	(h) Not later than 90 days after the date on which the school
316		-	district requests a hearing under Subsection (b), the hearing
317		-	examiner or the person conducting the hearing shall issue and
318		-	submit to the commissioner findings of fact and conclusions of law.
319		-	The hearing examiner or the person conducting the hearing may not
320		-	issue a recommendation for relief.
321		-	(i) A hearing conducted under this section may not be held
322		-	on a Saturday, Sunday, or state or federal holiday, unless agreed to
323		-	by the school district that requested the hearing and the agency.
324		-	Sec. 39.006. COMMISSIONER DETERMINATION. (a) After a
325		-	hearing is conducted under Section 39.005, the commissioner shall
326		-	provide an opportunity for the agency and the school district to
327		-	present oral argument to the commissioner regarding the
328		-	disagreement that formed the basis of the hearing. The
329		-	commissioner shall provide the agency and the district with equal
330		-	time for oral argument.
331		-	(b) After hearing any oral argument presented under
332		-	Subsection (a), the commissioner shall issue a written decision to
333		-	the school district that contains:
334		-	(1) findings of fact;
335		-	(2) conclusions of law; and
336		-	(3) sanctions, interventions, or other actions
337		-	authorized by law.
338		-	(c) In determining the written decision under Subsection
339		-	(b), the commissioner shall consider:
340		-	(1) the record of the hearing conducted under Section
341		-	39.005;
342		-	(2) the findings of fact and conclusions of law issued
343		-	by the hearing examiner or the person conducting the hearing under
344		-	Section 39.005(h); and
345		-	(3) the oral arguments presented under Subsection (a).
346		-	(d) The commissioner may accept, reject, or amend the
347		-	conclusions of law issued by the hearing examiner or the person who
348		-	conducted the hearing under Section 39.005 regarding the
349		-	interpretation of a provision of this code.
350		-	(e) The commissioner may not reject or amend a finding of
351		-	fact issued by the hearing examiner or the person who conducted the
352		-	hearing under Section 39.005, unless the commissioner, after
353		-	reviewing the record, determines that a finding of fact is not
354		-	supported by substantial, admissible evidence.
355		-	(f) The commissioner shall provide in writing the legal
356		-	basis and reason for any amendment or rejection of a finding of fact
357		-	or conclusion of law made by the hearing examiner or the person who
358		-	conducted the hearing under Section 39.005.
359		-	Sec. 39.007. JUDICIAL APPEAL. (a) Notwithstanding Chapter
360		-	2001, Government Code, a school district may only appeal a decision
361		-	made by the commissioner under Section 39.006 in accordance with
362		-	this section.
363		-	(b) A school district may appeal a decision made by the
364		-	commissioner under Section 39.006 to:
365		-	(1) a district court with jurisdiction in the county
366		-	in which the school district's central administrative offices are
367		-	located; or
368		-	(2) a district court in Travis County, if agreed to by
369		-	the school district and the commissioner.
370		-	(c) A school district must file an appeal under this section
371		-	not later than 30 days after the date on which the district received
372		-	the written decision of the commissioner under Section 39.006(b).
373		-	(d) The filing of an appeal under this section does not
374		-	affect or stay the enforcement of the commissioner's written
375		-	decision issued under Section 39.006(b).
376		-	(e) A court hearing an appeal under this section shall
377		-	review the decision issued by the commissioner under Section
378		-	39.006(b) under the substantial evidence rule as provided by
379		-	Subchapter G, Chapter 2001, Government Code, after examining:
380		-	(1) the evidentiary record of the hearing conducted
381		-	under Section 39.005;
382		-	(2) the findings of fact issued by the hearing
383		-	examiner or the person that conducted the hearing under Section
384		-	39.005; and
385		-	(3) any amendment or rejection of a finding of fact
386		-	made by the commissioner under Section 39.006.
387		-	(f) A court hearing an appeal under this section may not
388		-	take additional evidence.
389		-	(g) A court hearing an appeal under this section may review
390		-	any amendment to or rejection of a finding of fact made by the
391		-	commissioner. If the court determines that the amendment or
392		-	rejection was not supported by substantial evidence, the court
393		-	shall reject the commissioner's amended finding of fact and
394		-	consider instead the original finding issued by the hearing
395		-	examiner or the person who conducted the hearing under Section
396		-	39.005.
397		-	(h) Notwithstanding Section 2001.174, Government Code, the
398		-	court may not reverse or remand a decision issued by the
399		-	commissioner under Section 39.006(b) based on a procedural error or
400		-	irregularity made by the commissioner, an agency investigator, or
401		-	the hearing examiner or the person who conducted the hearing under
402		-	Section 39.005, unless the court determines that the procedural
403		-	error or irregularity is likely to have caused an erroneous
404		-	decision by the commissioner.
405		-	SECTION 2.06. Section 39.054, Education Code, is amended by
	204	+	policy. Before issuing a report with its final findings, the agency
	205	+	must provide a person or entity the agency finds has violated a law,
	206	+	rule, or policy an opportunity for an informal review by the
	207	+	commissioner or the commissioner's designee [a designated hearing
	208	+	examiner].
	209	+	(c) An informal review under this section is not a contested
	210	+	case for purposes of Chapter 2001, Government Code.
	211	+	SECTION 2.04. Section 39.054, Education Code, is amended by
406	212		amending Subsections (a), (a-3), and (b-1) and adding Subsections
407	213		(a-4) and (a-5) to read as follows:
408	214		(a) Except as provided by Subsection (a-4), the [The]
409	215		commissioner shall adopt rules to evaluate school district and
410	216		campus performance and assign each district and campus an overall
411	217		performance rating of A, B, C, D, or F. In addition to the overall
412	218		performance rating, the commissioner shall assign each district and
413	219		campus a separate domain performance rating of A, B, C, D, or F for
414	220		each domain under Section 39.053(c). An overall or domain
415	221		performance rating of A reflects exemplary performance. An overall
416	222		or domain performance rating of B reflects recognized performance.
417	223		An overall or domain performance rating of C reflects acceptable
418	224		performance. An overall or domain performance rating of D reflects
419	225		performance that needs improvement. An overall or domain
420	226		performance rating of F reflects unacceptable performance. A
421	227		district may not receive an overall or domain performance rating of
422	228		A if the district includes any campus with a corresponding overall
423	229		or domain performance rating of D or F. If a school district has
424	230		been approved under Section 39.0544 to assign campus performance
425	231		ratings and the commissioner has not assigned a campus an overall
426	232		performance rating of D or F, the commissioner shall assign the
427	233		campus an overall performance rating based on the school district
428		-	assigned performance rating under Section 39.0544. [A reference in
	234	+	assigned performance rating under Section 39.0544. A reference in
429	235		law to an acceptable rating or acceptable performance includes an
430		-	overall or domain performance rating of A, B, C, or D or performance
431		-	that is exemplary, recognized, or acceptable performance or
432		-	performance that needs improvement.]
	236	+	overall or domain performance rating of A, B, C, or D, except as
	237	+	provided by Section 39.0543, or performance that is exemplary,
	238	+	recognized, or acceptable performance or performance that needs
	239	+	improvement, except as provided by Section 39.0543. A reference in
	240	+	law to an unacceptable performance rating includes an overall or
	241	+	domain performance rating of F and, as provided by Section 39.0543,
	242	+	D or performance that needs improvement.
433	243		(a-3) Not later than August 15 of each year, the following
434	244		information [performance ratings of each district and campus] shall
435	245		be made publicly available as provided by rules adopted under this
436	246		section:
437		-	(1) the performance ratings ~~for~~ each school district
	247	+	(1) the performance ratings of each school district
438	248		and campus; and
439	249		(2) if applicable, the number of consecutive school
440	250		years of unacceptable performance ratings for each district and
441	251		campus.
442	252		(a-4) Notwithstanding any other law, the commissioner may
443	253		assign a school district or campus an overall performance rating of
444	254		"Not Rated" if the commissioner determines that the assignment of a
445	255		performance rating of A, B, C, D, or F would be inappropriate
446	256		because:
447	257		(1) the district or campus is located in an area that
448	258		is subject to a declaration of a state of disaster under Chapter
449	259		418, Government Code, and due to the disaster, performance
450	260		indicators for the district or campus are difficult to measure or
451	261		evaluate and would not accurately reflect quality of learning and
452	262		achievement for the district or campus;
453	263		(2) the district or campus has experienced breaches or
454	264		other failures in data integrity to the extent that accurate
455	265		analysis of data regarding performance indicators is not possible;
456	266		(3) the number of students enrolled in the district or
457	267		campus is insufficient to accurately evaluate the performance of
458	268		the district or campus; or
459	269		(4) for other reasons outside the control of the
460	270		district or campus, the performance indicators would not accurately
461	271		reflect quality of learning and achievement for the district or
462	272		campus.
463	273		(a-5) Notwithstanding any other law, an overall performance
464	274		rating of "Not Rated" is not included in calculating consecutive
465	275		school years of unacceptable performance ratings and is not
466	276		considered a break in consecutive school years of unacceptable
467	277		performance ratings for purposes of any provision of this code.
468	278		(b-1) Consideration of the effectiveness of district
469	279		programs under Section 39.052(b)(2)(B) or (C):
470	280		(1) must:
471	281		(A) be based on data collected through the Public
472	282		Education Information Management System (PEIMS) for purposes of
473	283		accountability under this chapter; and
474	284		(B) include the results of assessments required
475	285		under Section 39.023; and
476	286		(2) may be based on the results of a special
477	287		[accreditation] investigation conducted under Section 39.003
478	288		[39.057].
479		-	SECTION 2.07. Subchapter C, Chapter 39, Education Code, is
	289	+	SECTION 2.05. Subchapter C, Chapter 39, Education Code, is
480	290		amended by adding Section 39.0543 to read as follows:
481		-	Sec. 39.0543. PERFORMANCE RATING REQUIRING INTERVENTION OR
482		-	OTHER ACTION. (a) A reference in law to an acceptable performance
483		-	rating or acceptable performance includes an overall or domain
484		-	performance rating of A, B, or C or performance that is exemplary,
485		-	recognized, or acceptable. A reference in law to an unacceptable
486		-	performance rating or unacceptable performance includes an overall
487		-	or domain performance rating of F. For the purposes of public
488		-	reporting requirements, an overall or domain performance rating of
489		-	D shall be referred to as performance that needs improvement.
490		-	(b) A reference in law to an acceptable performance rating
491		-	or acceptable performance for a school district, open-enrollment
492		-	charter school, district campus, or charter school campus includes
493		-	an overall performance rating of D if, since previously receiving
494		-	an overall performance rating of C or higher, the district, charter
495		-	school, district campus, or charter school campus:
	291	+	Sec. 39.0543. NEEDS IMPROVEMENT OR UNACCEPTABLE
	292	+	PERFORMANCE RATING. (a) A reference in law to an acceptable
	293	+	performance or acceptable performance rating for a school district,
	294	+	open-enrollment charter school, district campus, or charter school
	295	+	campus includes an overall performance rating of D if, since
	296	+	previously receiving an overall performance rating of C or higher,
	297	+	the district, charter school, district campus, or charter school
	298	+	campus:
496	299		(1) has not previously received more than one overall
497	300		performance rating of D; or
498	301		(2) has not received an overall performance rating of
499	302		F.
500		-	(b-1) For the purposes of this section, an overall
	303	+	(a-1) For the purposes of this section, an overall
501	304		performance rating issued in a previous school year for a school
502	305		district, open-enrollment charter school, district campus, or
503	306		charter school campus of:
504	307		(1) met standard, academically acceptable,
505	308		recognized, exemplary, A, B, or C is considered to be a performance
506	309		rating of C or higher; and
507		-	(2) performance that needs improvement, academically
508		-	unacceptable, or F is considered to be a rating of F.
509		-	(b-2) For purposes of determining whether a reference in law
510		-	to an acceptable performance rating or acceptable performance
511		-	includes an overall performance rating of D under Subsection (b), a
512		-	performance rating of D assigned to a school district,
513		-	open-enrollment charter school, district campus, or charter school
514		-	campus prior to the 2018-2019 school year shall not be considered.
515		-	(b-3) Subsections (b-1) and (b-2) and this subsection
516		-	expire September 1, 2027.
517		-	(c) A reference in law to an unacceptable performance rating
518		-	or unacceptable performance includes a performance rating of D if
519		-	the rating does not satisfy Subsection (b).
520		-	(d) For purposes of Subsection (b), a school district,
521		-	open-enrollment charter school, district campus, or charter school
522		-	campus that has never received an overall performance rating shall
523		-	be considered to have previously received an overall performance
524		-	rating of C or higher.
525		-	SECTION 2.08. Subchapter C, Chapter 39, Education Code, is
526		-	amended by adding Sections 39.0545 and 39.0546 to read as follows:
	310	+	(2) improvement required, academically unacceptable,
	311	+	or F is considered to be a rating of F.
	312	+	(a-2) Subsection (a-1) and this subsection expire September
	313	+	1, 2027.
	314	+	(b) A reference in law to an unacceptable performance or
	315	+	unacceptable performance rating includes a performance rating of D
	316	+	if the rating does not satisfy Subsection (a).
	317	+	SECTION 2.06. Subchapter C, Chapter 39, Education Code, is
	318	+	amended by adding Section 39.0545 to read as follows:
527	319		Sec. 39.0545. ALTERNATIVE METHODS AND STANDARDS FOR
528	320		EVALUATING PERFORMANCE FOR 2020-2021 SCHOOL YEAR. (a) This
529	321		section applies to a campus:
530	322		(1) that meets the participation requirements for all
531	323		students in all subject areas for the annual measurement of
532	324		achievement under Section 1111, Every Student Succeeds Act (20
533		-	U.S.C. Section 6311(c)(4)(E)); ~~and~~
	325	+	U.S.C. Section 6311(c)(4)(E));
534	326		(2) to which the most recent performance rating
535	327		assigned, other than a "Not Rated" rating, is a D, F, or performance
536		-	that needs improvement.
	328	+	that needs improvement; and
	329	+	(3) is not subject to the appointment of a board of
	330	+	managers under Section 39A.117(b).
537	331		(b) Notwithstanding any other law, the commissioner shall
538	332		adopt rules to develop and implement alternative methods and
539	333		standards for evaluating the performance for the 2020-2021 school
540	334		year of a campus to which this section applies. The rules adopted
541	335		under this section must evaluate a campus under the domains of
542	336		indicators of achievement listed in Sections 39.053(c)(1) and (2).
543	337		(c) The commissioner shall review a campus to which this
544	338		section applies under the alternative methods and standards adopted
545	339		under Subsection (b) on the request of the school district in which
546	340		the campus is located made by the deadline established by
547	341		commissioner rule.
548	342		(d) An acceptable performance rating assigned under the
549	343		alternative methods and standards adopted by the commissioner under
550	344		Subsection (b) is considered a break in consecutive school years of
551	345		unacceptable performance ratings under this code.
552		-	(e) If the commissioner determines that the campus would not
553		-	be assigned an acceptable performance rating, the commissioner
554		-	shall instead assign the campus a rating of "Not Rated."
555		-	(f) This section does not apply to an intervention ordered
	346	+	(e) This section does not apply to an intervention ordered
556	347		on the basis of consecutive school years of unacceptable
557	348		performance ratings accrued before the effective date of this
558	349		section.
559		-	(g) This section expires September 1, 2027.
560		-	Sec. 39.0546. COVID-19 RECOVERY ACCOUNTABILITY FOR
561		-	2021-2022 SCHOOL YEAR. (a) Notwithstanding any other law, the
562		-	commissioner shall assign to a school district or campus a rating of
563		-	"Not Rated" for the 2021-2022 school year, unless, after reviewing
564		-	the district or campus under the methods and standards adopted
565		-	under Section 39.054, the commissioner determines the district or
566		-	campus should be assigned an overall performance rating of C or
567		-	higher.
568		-	(b) Regardless of the rating assigned under this section, if
569		-	the commissioner would have otherwise assigned a campus an
570		-	unacceptable performance rating, the campus is considered to be a
571		-	campus assigned an unacceptable performance rating for purposes of
572		-	determining a student's eligibility for a public education grant
573		-	under Section 29.202.
574		-	(c) Notwithstanding any other law, the commissioner shall
575		-	take an action described by Section 39A.111(1) or (2) if a campus:
576		-	(1) is not assigned an overall performance rating of C
577		-	or higher for the 2021-2022 school year; and
578		-	(2) has been assigned an unacceptable performance
579		-	rating for five or more school years prior to the 2021-2022 school
580		-	year.
581		-	(d) This section expires September 1, 2028.
582		-	SECTION 2.09. Sections 39.151(a), (b), and (e), Education
	350	+	(f) This section expires September 1, 2027.
	351	+	SECTION 2.07. Sections 39.151(a), (b), and (e), Education
583	352		Code, are amended to read as follows:
584	353		(a) The commissioner by rule shall provide a process for a
585	354		school district or open-enrollment charter school to challenge an
586	355		agency decision made under this chapter relating to an academic or
587	356		financial accountability rating that affects the district or
588	357		school, including a determination of consecutive school years of
589	358		unacceptable performance ratings.
590	359		(b) The rules under Subsection (a) must provide for the
591	360		commissioner to appoint a committee to make recommendations to the
592	361		commissioner on a challenge made to an agency decision relating to
593	362		an academic performance rating or determination, including a
594	363		determination of consecutive school years of unacceptable
595	364		performance ratings, or financial accountability rating. The
596	365		commissioner may not appoint an agency employee as a member of the
597	366		committee.
598	367		(e) A school district or open-enrollment charter school may
599	368		not challenge an agency decision relating to an academic or
600	369		financial accountability rating under this chapter, including a
601	370		decision relating to a determination of consecutive school years of
602	371		unacceptable performance ratings, in another proceeding if the
603	372		district or school has had an opportunity to challenge the decision
604	373		under this section.
605		-	SECTION 2.10. Section 39A.003, Education Code, is amended
	374	+	SECTION 2.08. Section 39A.003, Education Code, is amended
606	375		by adding Subsection (d) to read as follows:
607	376		(d) A conservator or management team may exercise the powers
608	377		and duties defined by the commissioner under Subsection (a) or
609	378		described by Subsection (c) regardless of whether the conservator
610	379		or management team was appointed to oversee the operations of a
611	380		school district in its entirety or the operations of a certain
612	381		campus within the district.
613		-	SECTION 2.11. Section 39A.004, Education Code, is amended
614		-	to read as follows:
615		-	Sec. 39A.004. APPOINTMENT OF BOARD OF MANAGERS. The
616		-	commissioner may appoint a board of managers to exercise the powers
617		-	and duties of a school district's board of trustees if the district
618		-	is subject to commissioner action under:
619		-	(1) Section 39A.001(1) [39A.001] and:
620		-	(A) [(1)] has a current accreditation status of
621		-	accredited-warned or accredited-probation;
622		-	(B) [(2)] fails to satisfy any standard under
623		-	Section 39.054(e); or
624		-	(C) [(3)] fails to satisfy financial
625		-	accountability standards as determined by commissioner rule; or
626		-	(2) Section 39A.001(2).
627		-	SECTION 2.12. Sections 39A.006(a) and (b), Education Code,
	382	+	SECTION 2.09. Sections 39A.006(a) and (b), Education Code,
628	383		are amended to read as follows:
629	384		(a) This section applies:
630	385		(1) regardless of whether a school district has
631	386		satisfied the accreditation criteria; and
632	387		(2) to a conservator or management team appointed
633	388		under any provision of this title, regardless of the scope or any
634	389		changes to the scope of the conservator's or team's oversight.
635	390		(b) If for two consecutive school years, including the
636	391		current school year, a school district has had a conservator or
637	392		management team assigned to the district or a district campus for
638	393		any reason under this title, the commissioner may appoint a board of
639	394		managers to exercise the powers and duties of the board of trustees
640	395		of the district.
641		-	SECTION 2.13. Section 39A.061(b), Education Code, is
	396	+	SECTION 2.10. Section 39A.061(b), Education Code, is
642	397		amended to read as follows:
643	398		(b) The commissioner may authorize a targeted improvement
644	399		plan, [or] an updated targeted improvement plan, or a local
645	400		improvement plan to supersede the provisions of and satisfy the
646	401		requirements of developing, reviewing, and revising a campus
647	402		improvement plan under Subchapter F, Chapter 11.
648		-	SECTION 2.14. Subchapter B, Chapter 39A, Education Code, is
	403	+	SECTION 2.11. Subchapter B, Chapter 39A, Education Code, is
649	404		amended by adding Section 39A.065 to read as follows:
650	405		Sec. 39A.065. LOCAL IMPROVEMENT PLAN. (a) A school
651	406		district, open-enrollment charter school, district campus, or
652	407		charter school campus that is assigned a rating of D that qualifies
653		-	under Section 39.0543(b) shall develop and implement a local
	408	+	under Section 39.0543(a) shall develop and implement a local
654	409		improvement plan.
655	410		(b) A local improvement plan must be presented to the board
656	411		of trustees of the school district or governing board of the
657	412		open-enrollment charter school.
658	413		(c) The commissioner shall adopt rules to establish
659	414		requirements for a local improvement plan components and training.
660	415		The commissioner may not require a school district or
661	416		open-enrollment charter school to submit the local improvement plan
662	417		to the agency.
663		-	SECTION 2.15. Section 39A.102, Education Code, is amended
	418	+	SECTION 2.12. Section 39A.102, Education Code, is amended
664	419		by amending Subsection (b) and adding Subsection (b-1) to read as
665	420		follows:
666	421		(b) Subject to Subsection (b-1), the [The] commissioner may
667	422		appoint a monitor, conservator, management team, or board of
668	423		managers to the school district to ensure and oversee
669	424		district-level support to low-performing campuses and the
670	425		implementation of the updated targeted improvement plan.
671	426		(b-1) The commissioner shall appoint a conservator to a
672	427		school district under Subsection (b) unless and until:
673	428		(1) each campus in the district for which a campus
674	429		turnaround plan has been ordered under Section 39A.101 receives an
675	430		acceptable performance rating for the school year; or
676	431		(2) the commissioner determines a conservator is not
677	432		necessary.
678		-	SECTION 2.16. The heading to Section 39A.110, Education
	433	+	SECTION 2.13. The heading to Section 39A.110, Education
679	434		Code, is amended to read as follows:
680	435		Sec. 39A.110. MODIFICATION OF [CHANGE IN] CAMPUS TURNAROUND
681	436		PLAN [PERFORMANCE RATING].
682		-	SECTION 2.17. Section 39A.110, Education Code, is amended
	437	+	SECTION 2.14. Section 39A.110, Education Code, is amended
683	438		by adding Subsection (c) to read as follows:
684	439		(c) The commissioner may authorize modification of an
685	440		approved campus turnaround plan if the commissioner determines that
686	441		due to a change in circumstances occurring after the plan's
687	442		approval under Section 39A.107, a modification of the plan is
688	443		necessary to achieve the plan's objectives.
689		-	SECTION 2.18. Section 39A.111, Education Code, is amended
	444	+	SECTION 2.15. Section 39A.111, Education Code, is amended
690	445		to read as follows:
691	446		Sec. 39A.111. CONTINUED UNACCEPTABLE PERFORMANCE RATING.
692	447		If a campus is considered to have an unacceptable performance
693	448		rating for five [three] consecutive school years [after the campus
694	449		is ordered to submit a campus turnaround plan under Section
695	450		39A.101], the commissioner, subject to Section 39A.112, shall
696	451		order:
697	452		(1) appointment of a board of managers to govern the
698	453		school district as provided by Section 39A.202; or
699	454		(2) closure of the campus.
700		-	SECTION 2.19. Subchapter C, Chapter 39A, Education Code, is
	455	+	SECTION 2.16. Subchapter C, Chapter 39A, Education Code, is
701	456		amended by adding Sections 39A.117 and 39A.118 to read as follows:
702	457		Sec. 39A.117. INTERVENTION FOR CERTAIN DISTRICTS OR
703	458		CAMPUSES. (a) For purposes of this section:
704	459		(1) an acceptable performance rating includes:
705	460		(A) a rating of met standard, academically
706	461		acceptable, recognized, exemplary, A, B, or C; or
707	462		(B) a rating of D that meets the requirements of
708		-	Section 39.0543(b);
	463	+	Section 39.0543(a);
709	464		(2) an unacceptable performance rating includes:
710		-	(A) a rating of ~~performance that needs~~
711		-	~~improvement,~~ academically unacceptable, or F; or
	465	+	(A) a rating of improvement required,
	466	+	academically unacceptable, or F; or
712	467		(B) a rating of D that meets the requirements of
713		-	Section 39.0543(c); and
	468	+	Section 39.0543(b); and
714	469		(3) a rating of "Not Rated" is not considered an
715	470		acceptable or unacceptable performance rating and may not be
716	471		considered a break in consecutive years of unacceptable
717	472		performance.
718	473		(b) As soon as practicable after the effective date of S.B.
719		-	1365, 87th Legislature, Regular Session, 2021, or ~~similar~~
720		-	legislation, the commissioner shall:
	474	+	1365, Acts of the 87th Legislature, Regular Session, 2021, or
	475	+	similar legislation, the commissioner shall:
721	476		(1) determine the number of school years of
722	477		unacceptable performance ratings occurring after the 2012-2013
723	478		school year for each school district, open-enrollment charter
724	479		school, district campus, or charter school campus by determining
725	480		the number of unacceptable performance ratings assigned to each
726	481		district, charter school, district campus, or charter school
727	482		campus since the most recent acceptable performance rating was
728	483		assigned to the district, charter school, district campus, or
729		-	charter school campus; ~~and~~
	484	+	charter school campus;
730	485		(2) use the number of school years of unacceptable
731	486		performance ratings as the base number of consecutive years of
732	487		unacceptable performance for which the performance rating in the
733		-	2021-2022 school year will be added.
	488	+	2021-2022 school year will be added; and
	489	+	(3) order the appointment of a board of managers under
	490	+	Section 39A.111 to the school district or charter school for each
	491	+	campus that is determined under Subdivision (1) to have been
	492	+	assigned an unacceptable performance rating for five or more school
	493	+	years.
734	494		(c) Exemptions from interventions authorized under Sections
735	495		11.174 and 28.020 and Section 5, Chapter 919 (H.B. 4205), Acts of
736	496		the 86th Legislature, Regular Session, 2019, apply to an
737	497		intervention ordered under this section and the commissioner shall
738	498		make necessary modifications to an intervention ordered under this
739	499		section in accordance with those provisions of law.
740	500		(d) This section may not be construed to:
741	501		(1) provide a school district or open-enrollment
742	502		charter school additional remedies or appellate or other review for
743	503		previous interventions, sanctions, or performance ratings ordered
744	504		or assigned; or
745	505		(2) prohibit the commissioner from taking any action
746	506		or ordering any intervention or sanction otherwise authorized by
747	507		law.
748		-	(e) To the extent of a conflict with any other transition
	508	+	(e) To the extent of conflict with any other transition
749	509		provision affecting this section, this transition provision
750	510		prevails.
751	511		(f) This section expires September 1, 2027.
752	512		Sec. 39A.118. INTERVENTION IF ASSIGNED CERTAIN PERFORMANCE
753	513		NEEDS IMPROVEMENT RATING. (a) Until another performance rating is
754	514		issued, the agency may not implement the intervention or sanctions
755		-	listed under Subsection (b) for a school district, open-enrollment
756		-	charter school, district campus, or charter school campus, if the
757		-	performance rating initiating the action under Subsection (b) is
758		-	based on the first or second overall performance rating of D, since
759		-	previously receiving a rating of C or higher.
760		-	(a-1) For purposes of this section, a performance rating of
761		-	D assigned prior to the 2018-2019 school year shall not be
762		-	considered. This subsection expires September 1, 2027.
763		-	(b) The following interventions or sanctions are subject to
764		-	a pause under Subsection (a):
	515	+	as provided by Subsection (b) for a school district,
	516	+	open-enrollment charter school, district campus, or charter school
	517	+	campus, if the performance rating initiating the action under
	518	+	Subsection (b) is based on the first or second overall performance
	519	+	rating of D, since previously receiving a rating of C or higher.
	520	+	(b) The following interventions are subject to a pause under
	521	+	Subsection (a):
765	522		(1) revocation of a charter under Section 12.115(c);
766	523		(2) annexation under Section 13.054;
767	524		(3) change in accreditation status under rules adopted
768	525		for accreditation under Section 39.052; and
769	526		(4) interventions or sanctions under Section
770	527		39A.101(a), 39A.107(a) or (c), or 39A.111.
771	528		(c) The performance rating identified under Subsection (a):
772	529		(1) may not be included in calculating consecutive
773		-	school years of unacceptable performance ~~ratings~~; and
	530	+	school years of an unacceptable performance rating; and
774	531		(2) is not considered a break in consecutive school
775		-	years of unacceptable performance ~~ratings~~.
776		-	(d) Interventions or sanctions implemented prior to ~~a pause~~
777		-	under Subsection (a) shall continue during ~~a school year for which~~
778		-	~~interventions or sanctions listed~~ under Subsection (b) are paused.
	532	+	years of an unacceptable performance rating.
	533	+	(d) Interventions or sanctions implemented prior to the
	534	+	intervention pause under Subsection (a) shall continue during the
	535	+	school year for which actions under Subsection (b) are paused.
779	536		(e) This section does not apply to a commissioner action
780		-	based on performance or reasons not listed as interventions or
781		-	sanctions under Subsection (b).
782		-	(f) For purposes of Subsection (a), a school district,
783		-	open-enrollment charter school, district campus, or charter school
784		-	campus that has never previously been assigned an overall
785		-	performance rating shall be considered to have previously received
786		-	an overall performance rating of C or higher.
787		-	SECTION 2.20. Section 39A.201(a), Education Code, is
	537	+	based on performance or reasons not listed as interventions under
	538	+	Subsection (b).
	539	+	SECTION 2.17. Section 39A.201(a), Education Code, is
788	540		amended to read as follows:
789	541		(a) Notwithstanding Section 11.151(b) or 11.1511(a) or any
790	542		other provision of this code, a [A] board of managers may exercise
791	543		all of the powers and duties assigned to a board of trustees of a
792	544		school district by law, rule, or regulation.
793		-	SECTION 2.21. Section 39A.202(a), Education Code, is
	545	+	SECTION 2.18. Section 39A.202(a), Education Code, is
794	546		amended to read as follows:
795	547		(a) Notwithstanding Section 11.151(b) or 11.1511(a) or any
796	548		other provision of this code, if [If] the commissioner appoints a
797	549		board of managers to govern a school district:
798	550		(1) the powers of the board of trustees of the district
799	551		are suspended for the period of the appointment; and
800	552		(2) the commissioner shall appoint a district
801	553		superintendent.
802		-	SECTION 2.22. Section 39A.301(a), Education Code, is
803		-	amended to read as follows:
804		-	(a) A school district or open-enrollment charter school
805		-	must appeal under this section if the district or charter school
806		-	[that] intends to challenge a decision by the commissioner under
807		-	this chapter to:
	554	+	SECTION 2.19. Section 39A.301, Education Code, is amended
	555	+	to read as follows:
	556	+	Sec. 39A.301. REVIEW OF SANCTIONS BY STATE OFFICE OF
	557	+	ADMINISTRATIVE HEARINGS. (a) A school district or
	558	+	open-enrollment charter school must appeal under this section if
	559	+	the district or school [that] intends to challenge a decision by the
	560	+	commissioner under Section 39.003 or this chapter to:
808	561		(1) close the district or a district campus or the
809	562		charter school;
810	563		(2) [or to] pursue alternative management of a
811		-	district campus or the charter school;
	564	+	district campus or the charter school; or
812	565		(3) appoint a board of managers to the district or
813		-	charter school; or
814		-	(4) appoint a conservator or management team to the
815		-	district or charter school [must appeal the decision under this
	566	+	school under Section 39A.202 [must appeal the decision under this
816	567		section].
817		-	SECTION 2.23. Section 39A.116, Education Code, is
	568	+	(b) A challenge under this section to a decision by the
	569	+	commissioner described by Subsection (a) is subject to review by
	570	+	the State Office of Administrative Hearings. Notwithstanding
	571	+	[under this section is under the substantial evidence rule as
	572	+	provided by Subchapter G,] Chapter 2001, Government Code:
	573	+	(1) the[. The] commissioner shall adopt procedural
	574	+	rules for a challenge under this section;
	575	+	(2) [.
	576	+	[(c) Notwithstanding other law:
	577	+	[(1)] the State Office of Administrative Hearings shall
	578	+	conduct an expedited review of a challenge under this section;
	579	+	(3) the administrative law judge shall uphold a
	580	+	decision by the commissioner described by Subsection (a) unless the
	581	+	judge finds the decision is arbitrary and capricious or clearly
	582	+	erroneous;
	583	+	(4) in reviewing any discretionary decisions made by
	584	+	the commissioner, the administrative law judge may not substitute
	585	+	the judge's judgment for that of the commissioner;
	586	+	(5) [(2)] the administrative law judge shall issue a
	587	+	final order not later than the 30th day after the date on which the
	588	+	hearing is finally closed;
	589	+	(6) [(3)] the decision of the administrative law judge
	590	+	is final and may not be appealed; and
	591	+	(7) [(4)] the decision of the administrative law judge
	592	+	may set an effective date for an action under this section.
	593	+	SECTION 2.20. Section 39A.116, Education Code, is
818	594		transferred to Subchapter Z, Chapter 39A, Education Code,
819	595		redesignated as Section 39A.906, Education Code, and amended to
820	596		read as follows:
821	597		Sec. 39A.906 [39A.116]. COMMISSIONER AUTHORITY. A
822	598		decision by the commissioner under Chapter 39 or this chapter
823		-	[subchapter] is final and may not be appealed ~~unless an applicable~~
824		-	~~provision of Chapter 39 or this chapter provides otherwise~~.
825		-	SECTION 2.24. Section 39A.0545, Education Code, is
	599	+	[subchapter] is final and may not be appealed, except as provided by
	600	+	Section 39A.301.
	601	+	SECTION 2.21. Section 39A.0545, Education Code, is
826	602		repealed.
827		-	SECTION 2.25. (a) Sections 39.003 and 39.004, Education
828		-	Code, as redesignated and amended by this Act, and Sections 39.005,
829		-	39.006, and 39.007, Education Code, as added by this Act, apply to a
830		-	special investigation authorized, initiated, opened, or finalized
831		-	on or after the effective date of this Act. A special investigation
832		-	authorized or initiated by the Texas Education Agency under Section
833		-	39.057, Education Code, before the effective date of this Act that
834		-	is open and not finalized on the effective date of this Act, shall
835		-	be continued as if authorized by Section 39.003, Education Code, as
836		-	redesignated and amended by this Act, and proceed subject to
837		-	Section 39.004, Education Code, as redesignated and amended by this
838		-	Act, and Sections 39.005, 39.006, and 39.007, Education Code, as
839		-	added by this Act.
	603	+	SECTION 2.22. (a) Sections 39.003 and 39.004, Education
	604	+	Code, as redesignated and amended by this Act, apply to a special
	605	+	investigation authorized or initiated before, on, or after the
	606	+	effective date of this Act.
840	607		(b) Section 39A.006, Education Code, as amended by this Act,
841	608		applies to a conservator or management team assigned to a school
842	609		district before, on, or after the effective date of this Act.
843		-	SECTION 2.26. If this Act takes effect later than August 15,
	610	+	SECTION 2.23. If this Act takes effect later than August 15,
844	611		2021, the Texas Education Agency shall publish the consecutive
845	612		school years of unacceptable performance ratings as required by
846	613		Section 39.054(a-3), Education Code, as amended by this Act, for
847	614		each school district and campus as soon as practicable after the
848	615		effective date of this Act.
849		-	SECTION 2.27. As soon as practicable after the effective
	616	+	SECTION 2.24. As soon as practicable after the effective
850	617		date of this Act, the commissioner of education shall adopt rules to
851	618		develop and implement alternative methods and standards for
852	619		evaluating the performance of a campus for the 2020-2021 school
853	620		year as required by Section 39.0545, Education Code, as added by
854	621		this Act.
855	622		ARTICLE 3. PUBLIC SCHOOL FISCAL MANAGEMENT
856	623		SECTION 3.01. Section 44.052(c), Education Code, is amended
857	624		to read as follows:
858	625		(c) A trustee of a school district who votes to approve any
859	626		expenditure of school funds in violation of a provision of this
860	627		code, for a purpose for which those funds may not be spent, or in
861	628		excess of the item or items appropriated in the adopted budget or a
862	629		supplementary or amended budget commits an offense. An offense
863	630		under this subsection is a Class C misdemeanor.
864	631		SECTION 3.02. Section 45.105, Education Code, is amended by
865	632		amending Subsection (c) and adding Subsection (c-1) to read as
866	633		follows:
867	634		(c) Local school funds from district taxes, tuition fees of
868	635		students not entitled to a free education, other local sources, and
869	636		state funds not designated for a specific purpose may be used for
870	637		the purposes listed for state and county available funds and for
871	638		purchasing appliances and supplies, paying insurance premiums,
872	639		paying janitors and other employees, buying school sites, buying,
873	640		building, repairing, and renting school buildings, including
874	641		acquiring school buildings and sites by leasing through annual
875	642		payments with an ultimate option to purchase, and, except as
876	643		provided by Subsection (c-1), for other purposes necessary in the
877	644		conduct of the public schools determined by the board of trustees.
878	645		The accounts and vouchers for county districts must be approved by
879	646		the county superintendent. If the state available school fund in
880	647		any municipality or district is sufficient to maintain the schools
881	648		in any year for at least eight months and leave a surplus, the
882	649		surplus may be spent for the purposes listed in this subsection.
883	650		(c-1) Funds described by Subsection (c) may not be used to
884	651		initiate or maintain any action or proceeding against the state or
885	652		an agency or officer of the state arising out of a decision, order,
886	653		or determination that is final and unappealable under a provision
887	654		of this code, except that funds may be used for an action or
888	655		proceeding that is specifically authorized by a provision of this
889	656		code or a rule adopted under this code and that results in a final
890	657		and unappealable decision, order, or determination.
891	658		SECTION 3.03. Section 48.201, Education Code, is amended to
892	659		read as follows:
893	660		Sec. 48.201. PURPOSE. The purpose of the tier two component
894	661		of the Foundation School Program is to provide each school district
895	662		with the opportunity to provide the basic program and to supplement
896	663		that program at a level of its own choice. An allotment under this
897	664		subchapter may be used for any legal purpose other than:
898	665		(1) capital outlay or debt service; or
899	666		(2) a purpose prohibited by Section 45.105(c-1) or
900	667		another provision of this code.
901	668		SECTION 3.04. Section 39A.203, Education Code, is repealed.
902	669		SECTION 3.05. Section 44.052(c), Education Code, as amended
903	670		by this Act, applies only to an offense committed on or after the
904	671		effective date of this Act. An offense committed before the
905	672		effective date of this Act is governed by the law in effect when the
906	673		offense was committed, and the former law is continued in effect for
907	674		that purpose. For purposes of this section, an offense was
908	675		committed before the effective date of this Act if any element of
909	676		the offense occurred before that date.
910	677		ARTICLE 4. CONFORMING AMENDMENTS
911	678		SECTION 4.01. Section 7.028(a), Education Code, is amended
912	679		to read as follows:
913	680		(a) Except as provided by Section 21.006(k), 22.093(l),
914	681		22.096, 28.006, 29.001(5), 29.010(a), 38.003, or 39.003 [39.057],
915	682		the agency may monitor compliance with requirements applicable to a
916	683		process or program provided by a school district, campus, program,
917	684		or school granted charters under Chapter 12, including the process
918	685		described by Subchapter F, Chapter 11, or a program described by
919	686		Subchapter B, C, D, E, F, H, or I, Chapter 29, or Subchapter A,
920	687		Chapter 37, only as necessary to ensure:
921	688		(1) compliance with federal law and regulations;
922	689		(2) financial accountability, including compliance
923	690		with grant requirements;
924	691		(3) data integrity for purposes of:
925	692		(A) the Public Education Information Management
926	693		System (PEIMS); and
927	694		(B) accountability under Chapters 39 and 39A; and
928	695		(4) qualification for funding under Chapter 48.
929	696		SECTION 4.02. Section 12.013(b), Education Code, is amended
930	697		to read as follows:
931	698		(b) A home-rule school district is subject to:
932	699		(1) a provision of this title establishing a criminal
933	700		offense;
934	701		(2) a provision of this title relating to limitations
935	702		on liability; and
936	703		(3) a prohibition, restriction, or requirement, as
937	704		applicable, imposed by this title or a rule adopted under this
938	705		title, relating to:
939	706		(A) the Public Education Information Management
940	707		System (PEIMS) to the extent necessary to monitor compliance with
941	708		this subchapter as determined by the commissioner;
942	709		(B) educator certification under Chapter 21 and
943	710		educator rights under Sections 21.407, 21.408, and 22.001;
944	711		(C) criminal history records under Subchapter C,
945	712		Chapter 22;
946	713		(D) student admissions under Section 25.001;
947	714		(E) school attendance under Sections 25.085,
948	715		25.086, and 25.087;
949	716		(F) inter-district or inter-county transfers of
950	717		students under Subchapter B, Chapter 25;
951	718		(G) elementary class size limits under Section
952	719		25.112, in the case of any campus in the district that fails to
953	720		satisfy any standard under Section 39.054(e);
954	721		(H) high school graduation under Section 28.025;
955	722		(I) special education programs under Subchapter
956	723		A, Chapter 29;
957	724		(J) bilingual education under Subchapter B,
958	725		Chapter 29;
959	726		(K) prekindergarten programs under Subchapter E,
960	727		Chapter 29;
961	728		(L) safety provisions relating to the
962	729		transportation of students under Sections 34.002, 34.003, 34.004,
963	730		and 34.008;
964	731		(M) computation and distribution of state aid
965	732		under Chapters 31, 43, and 48;
966	733		(N) extracurricular activities under Section
967	734		33.081;
968	735		(O) health and safety under Chapter 38;
969		-	(P) the provisions of Subchapter A, Chapter 39;
970		-	(Q) public school accountability and special
	736	+	(P) public school accountability and special
971	737		investigations under Subchapters A, B, C, D, and J, Chapter 39, and
972	738		Chapter 39A;
973		-	~~(R) [~~(Q)] options for local revenue levels in
974		-	~~excess of~~ entitlement under Chapter 49;
975		-	~~(S) [~~(R)] a bond or other obligation or tax rate
976		-	~~under~~ Chapters 43, 45, and 48; and
977		-	~~(T) [~~(S)] purchasing under Chapter 44.
	739	+	(Q) options for local revenue levels in excess of
	740	+	entitlement under Chapter 49;
	741	+	(R) a bond or other obligation or tax rate under
	742	+	Chapters 43, 45, and 48; and
	743	+	(S) purchasing under Chapter 44.
978	744		SECTION 4.03. Section 12.056(b), Education Code, is amended
979	745		to read as follows:
980	746		(b) A campus or program for which a charter is granted under
981	747		this subchapter is subject to:
982	748		(1) a provision of this title establishing a criminal
983	749		offense; and
984	750		(2) a prohibition, restriction, or requirement, as
985	751		applicable, imposed by this title or a rule adopted under this
986	752		title, relating to:
987	753		(A) the Public Education Information Management
988	754		System (PEIMS) to the extent necessary to monitor compliance with
989	755		this subchapter as determined by the commissioner;
990	756		(B) criminal history records under Subchapter C,
991	757		Chapter 22;
992	758		(C) high school graduation under Section 28.025;
993	759		(D) special education programs under Subchapter
994	760		A, Chapter 29;
995	761		(E) bilingual education under Subchapter B,
996	762		Chapter 29;
997	763		(F) prekindergarten programs under Subchapter E,
998	764		Chapter 29;
999	765		(G) extracurricular activities under Section
1000	766		33.081;
1001	767		(H) health and safety under Chapter 38;
1002		-	(I) the provisions of Subchapter A, Chapter 39;
1003		-	(J) public school accountability and special
	768	+	(I) public school accountability and special
1004	769		investigations under Subchapters A, B, C, D, F, and J, Chapter 39,
1005	770		and Chapter 39A; and
1006		-	~~(K) [~~(J)] the duty to discharge or refuse to hire
	771	+	(J) the duty to discharge or refuse to hire
1007	772		certain employees or applicants for employment under Section
1008	773		12.1059.
1009	774		SECTION 4.04. Section 12.104(b), Education Code, as amended
1010	775		by Chapters 262 (H.B. 1597), 464 (S.B. 11), 467 (H.B. 4170), and 943
1011	776		(H.B. 3), Acts of the 86th Legislature, Regular Session, 2019, is
1012	777		reenacted and amended to read as follows:
1013	778		(b) An open-enrollment charter school is subject to:
1014	779		(1) a provision of this title establishing a criminal
1015	780		offense;
1016	781		(2) the provisions in Chapter 554, Government Code;
1017	782		and
1018	783		(3) a prohibition, restriction, or requirement, as
1019	784		applicable, imposed by this title or a rule adopted under this
1020	785		title, relating to:
1021	786		(A) the Public Education Information Management
1022	787		System (PEIMS) to the extent necessary to monitor compliance with
1023	788		this subchapter as determined by the commissioner;
1024	789		(B) criminal history records under Subchapter C,
1025	790		Chapter 22;
1026	791		(C) reading instruments and accelerated reading
1027	792		instruction programs under Section 28.006;
1028	793		(D) accelerated instruction under Section
1029	794		28.0211;
1030	795		(E) high school graduation requirements under
1031	796		Section 28.025;
1032	797		(F) special education programs under Subchapter
1033	798		A, Chapter 29;
1034	799		(G) bilingual education under Subchapter B,
1035	800		Chapter 29;
1036	801		(H) prekindergarten programs under Subchapter E
1037	802		or E-1, Chapter 29;
1038	803		(I) extracurricular activities under Section
1039	804		33.081;
1040	805		(J) discipline management practices or behavior
1041	806		management techniques under Section 37.0021;
1042	807		(K) health and safety under Chapter 38;
1043		-	(L) the provisions of Subchapter A, Chapter 39;
1044		-	(M) public school accountability and special
	808	+	(L) public school accountability and special
1045	809		investigations under Subchapters A, B, C, D, F, G, and J, Chapter
1046	810		39, and Chapter 39A;
1047		-	(N) [(M)] the requirement under Section 21.006
1048		-	to report an educator's misconduct;
1049		-	(O) [(N)] intensive programs of instruction
1050		-	under Section 28.0213;
1051		-	(P) [(O)] the right of a school employee to
1052		-	report a crime, as provided by Section 37.148;
1053		-	(Q) [(P)] bullying prevention policies and
1054		-	procedures under Section 37.0832;
1055		-	(R) [(Q)] the right of a school under Section
1056		-	37.0052 to place a student who has engaged in certain bullying
1057		-	behavior in a disciplinary alternative education program or to
1058		-	expel the student;
1059		-	(S) [(R)] the right under Section 37.0151 to
1060		-	report to local law enforcement certain conduct constituting
1061		-	assault or harassment;
1062		-	(T) [(S)] a parent's right to information
1063		-	regarding the provision of assistance for learning difficulties to
1064		-	the parent's child as provided by Sections 26.004(b)(11) and
1065		-	26.0081(c) and (d);
1066		-	(U) [(T)] establishment of residency under
1067		-	Section 25.001;
1068		-	(V) [(T)] school safety requirements under
	811	+	(M) the requirement under Section 21.006 to
	812	+	report an educator's misconduct;
	813	+	(N) intensive programs of instruction under
	814	+	Section 28.0213;
	815	+	(O) the right of a school employee to report a
	816	+	crime, as provided by Section 37.148;
	817	+	(P) bullying prevention policies and procedures
	818	+	under Section 37.0832;
	819	+	(Q) the right of a school under Section 37.0052
	820	+	to place a student who has engaged in certain bullying behavior in a
	821	+	disciplinary alternative education program or to expel the student;
	822	+	(R) the right under Section 37.0151 to report to
	823	+	local law enforcement certain conduct constituting assault or
	824	+	harassment;
	825	+	(S) a parent's right to information regarding the
	826	+	provision of assistance for learning difficulties to the parent's
	827	+	child as provided by Sections 26.004(b)(11) and 26.0081(c) and (d);
	828	+	(T) establishment of residency under Section
	829	+	25.001;
	830	+	(U) [(T)] school safety requirements under
1069	831		Sections 37.108, 37.1081, 37.1082, 37.109, 37.113, 37.114, 37.115,
1070	832		37.207, and 37.2071;
1071		-	(W) [(T)] the early childhood literacy and
	833	+	(V) [(T)] the early childhood literacy and
1072	834		mathematics proficiency plans under Section 11.185; and
1073		-	(X) [(U)] the college, career, and military
	835	+	(W) [(U)] the college, career, and military
1074	836		readiness plans under Section 11.186.
1075	837		SECTION 4.05. Section 12.1162(a), Education Code, is
1076	838		amended to read as follows:
1077	839		(a) The commissioner shall take any of the actions described
1078	840		by Subsection (b) or by Section 39A.001, 39A.002, 39A.004, 39A.005,
1079	841		or 39A.007, to the extent the commissioner determines necessary, if
1080	842		an open-enrollment charter school, as determined by a report issued
1081	843		under Section 39.004(b) [39.058(b)]:
1082	844		(1) commits a material violation of the school's
1083	845		charter;
1084	846		(2) fails to satisfy generally accepted accounting
1085	847		standards of fiscal management; or
1086	848		(3) fails to comply with this subchapter or another
1087	849		applicable rule or law.
1088	850		SECTION 4.06. Section 39.0302(a), Education Code, is
1089	851		amended to read as follows:
1090	852		(a) During an agency investigation or audit of a school
1091	853		district under Section 39.0301(e) or (f), a special [an
1092	854		accreditation] investigation under Section 39.003(a)(8)
1093	855		[39.057(a)(8)] or (14), a compliance review under Section
1094	856		21.006(k), 22.093(l), or 22.096, or an investigation by the State
1095	857		Board for Educator Certification of an educator for an alleged
1096	858		violation of an assessment instrument security procedure
1097	859		established under Section 39.0301(a), the commissioner may issue a
1098	860		subpoena to compel the attendance of a relevant witness or the
1099	861		production, for inspection or copying, of relevant evidence that is
1100	862		located in this state.
1101	863		SECTION 4.07. Section 39.056(h), Education Code, is amended
1102	864		to read as follows:
1103	865		(h) The commissioner may at any time convert a monitoring
1104	866		review to a special [accreditation] investigation under Section
1105	867		39.003 [39.057], provided the commissioner promptly notifies the
1106	868		school district of the conversion.
1107	869		SECTION 4.08. Section 39A.001, Education Code, is amended
1108	870		to read as follows:
1109	871		Sec. 39A.001. GROUNDS FOR COMMISSIONER ACTION. The
1110	872		commissioner shall take any of the actions authorized by this
1111	873		subchapter to the extent the commissioner determines necessary if:
1112	874		(1) a school district does not satisfy:
1113	875		(A) the accreditation criteria under Section
1114	876		39.052;
1115	877		(B) the academic performance standards under
1116	878		Section 39.053 or 39.054; or
1117	879		(C) any financial accountability standard as
1118	880		determined by commissioner rule; or
1119	881		(2) the commissioner considers the action to be
1120	882		appropriate on the basis of a special [accreditation] investigation
1121	883		under Section 39.003 [39.057].
1122	884		SECTION 4.09. Sections 39A.256(a) and (b), Education Code,
1123	885		are amended to read as follows:
1124	886		(a) A board of managers appointed for an open-enrollment
1125	887		charter school [or a campus of an open-enrollment charter school]
1126	888		under this chapter or Chapter 12 has the powers and duties
1127	889		prescribed by Section 39A.201(b), if applicable, and Sections
1128	890		39A.201(a), 39A.202, [39A.203,] and 39A.206(b).
1129	891		(b) Except as otherwise provided by this subsection, the
1130	892		board of managers for an open-enrollment charter school [or a
1131	893		campus of an open-enrollment charter school] may not serve for a
1132	894		period that exceeds the period authorized by law for a board of
1133	895		managers appointed for a school district. A board of managers
1134	896		appointed to wind up the affairs of a former open-enrollment
1135	897		charter school or campus serves until dissolved by the
1136	898		commissioner.
1137	899		SECTION 4.10. To the extent of any conflict, this article
1138	900		prevails over another Act of the 87th Legislature, Regular Session,
1139	901		2021, relating to nonsubstantive additions to and corrections in
1140	902		enacted codes.
1141	903		ARTICLE 5. EFFECTIVE DATE
1142	904		SECTION 5.01. This Act takes effect immediately if it
1143	905		receives a vote of two-thirds of all the members elected to each
1144	906		house, as provided by Section 39, Article III, Texas Constitution.
1145	907		If this Act does not receive the vote necessary for immediate
1146	908		effect, this Act takes effect September 1, 2021.
1147		-	______________________________ ______________________________
1148		-	President of the Senate Speaker of the House
1149		-	I hereby certify that S.B. No. 1365 passed the Senate on
1150		-	May 5, 2021, by the following vote: Yeas 20, Nays 11; and that the
1151		-	Senate concurred in House amendment on May 29, 2021, by the
1152		-	following vote: Yeas 20, Nays 11.
1153		-	______________________________
1154		-	Secretary of the Senate
1155		-	I hereby certify that S.B. No. 1365 passed the House, with
1156		-	amendment, on May 26, 2021, by the following vote: Yeas 111,
1157		-	Nays 34, two present not voting.
1158		-	______________________________
1159		-	Chief Clerk of the House
1160		-	Approved:
1161		-	______________________________
1162		-	Date
1163		-	______________________________
1164		-	Governor
	909	+	COMMITTEE AMENDMENT NO. 1
	910	+	Amend S.B. No. 1365 as engrossed, on page 18, line 16, by
	911	+	striking "after the 2012-2013" and substituting "the 2018-2019
	912	+	school year, including that school year,"
	913	+	Bell of Kaufman