87R20516 CAE-D     By: Dutton H.B. No. 3731     Substitute the following for H.B. No. 3731:     By:  Dutton C.S.H.B. No. 3731       A BILL TO BE ENTITLED   AN ACT   relating to public school accountability ratings, including   interventions and sanctions administered to a school district,   open-enrollment charter school, or district or school campus   assigned an unacceptable performance rating.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  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.  Section 39.054(a), Education Code, is amended to   read as follows:          (a)  The commissioner shall adopt rules to evaluate school   district and campus performance and assign each district and campus   an overall performance rating of 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 or unacceptable   performance, in accordance with Section 39.0543. 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.  A reference in law to an unacceptable   performance rating includes an overall or domain performance rating   of D, as provided by Section 39.0543, and F.          SECTION 3.  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 school campus:                (1)  has not received an overall performance rating of   F; and                (2)  has not received two or more overall performance   ratings of D.          (a-1)  For the purposes of this section, an overall   performance rating issued in 2017-2018 or a prior 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 performance rating of D that meets the requirements of   Subsection (a) is considered performance that needs improvement.          (c)  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 4.  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 5.  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   as a performance that needs improvement rating 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 6.  Subchapter C, Chapter 39A, Education Code, is   amended by adding Sections 39A.118 and 39A.119 to read as follows:          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).          Sec. 39A.119.  PERFORMANCE NEEDS IMPROVEMENT RATING   TRANSITION PROVISION. (a) For each school district,   open-enrollment charter school, district campus, and charter   school campus, the commissioner shall determine the number of   unacceptable performance ratings issued to the district, school, or   district or school campus since the last acceptable performance   rating or higher as defined by Subsection (b) and use that as the   base number of consecutive years of unacceptable performance for   which the performance rating in the 2021-2022 school year will be   added.          (b)  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(c); and                (3)  a rating of not rated may not be considered   acceptable or unacceptable and may not be considered a break in   consecutive years of unacceptable performance.          (c)  This section expires September 1, 2027.          SECTION 7.  Section 39A.0545, Education Code, is repealed.          SECTION 8.  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.