H.B. No. 1500         AN ACT   relating to the public school accountability system.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 39.053(b), Education Code, is amended to   read as follows:          (b)  Performance on the achievement indicators adopted under   Subsections (c)(1)-(4) shall be compared to state-established   standards. To the extent feasible, the [The] indicators should   allow for disaggregation [must be based on information that is   disaggregated] by race, ethnicity, and socioeconomic status.          SECTION 2.  Section 39.053, Education Code, is amended by   amending Subsection (c) and adding Subsections (c-4) and (g-3) to   read as follows:          (c)  School districts and campuses must be evaluated based on   five domains of indicators of achievement adopted under this   section that include:                (1)  in the first domain, the results of:                      (A)  assessment instruments required under   Sections 39.023(a), (c), and (l), including the results of   assessment instruments required for graduation retaken by a   student, aggregated across grade levels by subject area, including:                            (i)  for the performance standard determined   by the commissioner under Section 39.0241(a),  the percentage of   students who performed satisfactorily on the assessment   instruments, aggregated across grade levels by subject area; and                            (ii)  for the college readiness performance   standard as determined under Section 39.0241, the percentage of   students who performed satisfactorily on the assessment   instruments, aggregated across grade levels by subject area; and                      (B)  assessment instruments required under   Section 39.023(b), aggregated across grade levels by subject area,   including the percentage of students who performed satisfactorily   on the assessment instruments, as determined by the performance   standard adopted by the agency, aggregated across grade levels by   subject area;                (2)  in the second domain:                      (A)  for assessment instruments under Subdivision   (1)(A):                            (i)  for the performance standard determined   by the commissioner under Section 39.0241(a), the percentage of   students who met the standard for annual improvement on the   assessment instruments, as determined by the commissioner by rule   or by the method for measuring annual improvement under Section   39.034, aggregated across grade levels by subject area; and                            (ii)  for the college readiness performance   standard as determined under Section 39.0241, the percentage of   students who met the standard for annual improvement on the   assessment instruments, as determined by the commissioner by rule   or by the method for measuring annual improvement under Section   39.034, aggregated across grade levels by subject area; and                      (B)  for assessment instruments under Subdivision   (1)(B), the percentage of students who met the standard for annual   improvement on the assessment instruments, as determined by the   commissioner by rule or by the method for measuring annual   improvement under Section 39.034, aggregated across grade levels by   subject area;                (3)  in the third domain, the student academic   achievement differentials among students from different racial and   ethnic groups and socioeconomic backgrounds;                (4)  in the fourth domain:                      (A)  for evaluating the performance of high school   campuses and districts that include high school campuses:                            (i)  dropout rates, including dropout rates   and district completion rates for grade levels 9 through 12,   computed in accordance with standards and definitions adopted by   the National Center for Education Statistics of the United States   Department of Education;                            (ii)  high school graduation rates, computed   in accordance with standards and definitions adopted in compliance   with the Every Student Succeeds Act [No Child Left Behind Act of   2001] (20 U.S.C. Section 6301 et seq.);                            (iii)  the percentage of students who   successfully completed the curriculum requirements for the   distinguished level of achievement under the foundation high school   program;                            (iv)  the percentage of students who   successfully completed the curriculum requirements for an   endorsement under Section 28.025(c-1);                            (v)  the percentage of students who   completed a coherent sequence of career and technical or fine arts   courses;                            (vi)  the percentage of students who satisfy   the Texas Success Initiative (TSI) college readiness benchmarks   prescribed by the Texas Higher Education Coordinating Board under   Section 51.3062(f) on an assessment instrument in reading, writing,   or mathematics designated by the Texas Higher Education   Coordinating Board under Section 51.3062(c);                            (vii)  the percentage of students who earn   at least 12 hours of postsecondary credit required for the   foundation high school program under Section 28.025 or to earn an   endorsement under Section 28.025(c-1);                            (viii)  the percentage of students who have   completed an advanced placement or international baccalaureate   course;                            (ix)  the percentage of students who enlist   in the armed forces of the United States; [and]                            (x)  the percentage of students who earn an   industry certification;                            (xi)  the percentage of students who   successfully completed an OnRamps dual enrollment course;                            (xii)  the percentage of students who have   received credit by examination;                            (xiii)  the percentage of students who have   been promoted to higher grade levels than the grade levels to which   the students would ordinarily be assigned;                            (xiv)  the percentage of students who have   earned a diploma after not more than three years of high school   attendance; and                            (xv)  the percentage of students who earn an   associate degree;                      (B)  for evaluating the performance of middle and   junior high school and elementary school campuses and districts   that include those campuses:                            (i)  student attendance; [and]                            (ii)  for middle and junior high school   campuses:                                  (a)  dropout rates, computed in the   manner described by Paragraph (A)(i); [and]                                  (b)  the percentage of students in   grades seven and eight who receive instruction in preparing for   high school, college, and a career that includes information   regarding the creation of a high school personal graduation plan   under Section 28.02121, the distinguished level of achievement   described by Section 28.025(b-15), each endorsement described by   Section 28.025(c-1), college readiness standards, and potential   career choices and the education needed to enter those careers; and                                  (c)  the percentage of students in   grades seven and eight who complete a pre-advanced placement course   or pre-international baccalaureate course; and                            (iii)  the percentage of students who   participate in a University Interscholastic League A+ academic   event; and                      (C)  any additional indicators of student   achievement not associated with performance on standardized   assessment instruments determined appropriate for consideration by   the commissioner in consultation with educators, parents, business   and industry representatives, and employers; and                (5)  in the fifth domain, three programs or specific   categories of performance related to community and student   engagement locally selected and evaluated as provided by Section   39.0546.          (c-4)  For purposes of evaluating the performance of a   district or campus under Subsection (c), the commissioner shall   determine a method by which the performance of a student is   attributed greater weight for each school year a student has been   continuously enrolled in the school district or at the campus, as   applicable.          (g-3)  The commissioner shall adopt rules for computing the   percentage of students participating in a University   Interscholastic League A+ academic event under Subsection   (c)(4)(B)(iii).          SECTION 3.  Sections 39.054(a) and (a-1), Education Code, as   effective September 1, 2017, are 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 applicable domain under Sections 39.053(c)(1)-(4).   An overall or domain performance rating of A reflects exemplary   performance. An overall or domain performance rating of B reflects   recognized performance. An overall or domain performance rating of   C reflects acceptable performance. An overall or domain   performance rating of D reflects performance that needs   improvement. An overall or domain performance rating of [or] 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. A reference in law to an acceptable rating or   acceptable performance includes an overall or domain performance   rating of A, B, [or] C, or D or performance that is exemplary,   recognized, or acceptable or needs improvement [performance].          (a-1)  In [For purposes of] assigning [an overall]   performance ratings [rating] under Subsection (a), the   commissioner may adjust the overall performance rating of a   district or campus if the performance of the district or campus   under the indicators described by Section 39.053(c), based on   information disaggregated by race, ethnicity, socioeconomic   status, or other factors, does not meet standards established by   the commissioner.  The commissioner shall [attribute]:                (1)  attribute 55 percent of the performance evaluation   to the achievement indicators for the first, second, and third   domains under Sections 39.053(c)(1)-(3), provided that the   commissioner shall consider either the district's or campus's   performance rating under the first domain or the second domain,   whichever performance rating is higher, unless the district or   campus received a performance rating of F in either domain, in which   case the district or campus may not be assigned an overall   performance rating higher than B;                (2)  for middle and junior high school and elementary   campuses and districts that include only those campuses, attribute   35 percent of the performance evaluation to the applicable   achievement indicators for the fourth domain under Section   39.053(c)(4);                (3)  for high school campuses and districts that   include those campuses, attribute:                      (A)  10 percent of the performance evaluation to   the high school graduation rate achievement indicator described by   Section 39.053(c)(4)(A)(ii); and                      (B)  25 percent to the remaining applicable   achievement indicators for the fourth domain under Section   39.053(c)(4); and                (4)  attribute 10 percent of the performance evaluation   to the locally selected and evaluated achievement indicators   provided for under the fifth domain under Section 39.053(c)(5).          SECTION 4.  Subchapter E, Chapter 39, Education Code, is   amended by adding Section 39.101 to read as follows:          Sec. 39.101.  NEEDS IMPROVEMENT RATING. (a) Notwithstanding   any other law, if a school district or campus is assigned an overall   or domain performance rating of D:                (1)  the commissioner shall order the district or   campus to develop and implement a targeted improvement plan   approved by the board of trustees of the district; and                (2)  the interventions and sanctions provided by this   subchapter based on failure to satisfy performance standards under   Section 39.054(e) apply to the district or campus only as provided   by this section.          (b)  The interventions and sanctions provided by this   subchapter based on failure to satisfy performance standards under   Section 39.054(e) apply to a district or campus ordered to develop   and implement a targeted improvement plan under Subsection (a) only   if the district or campus is assigned an overall or domain   performance rating of F, including the assignment of a performance   rating of F in the manner provided by Subsection (c) or (d).           (c)  If a school district or campus is assigned an overall   performance rating of D for two consecutive school years after the   district or campus is ordered to develop and implement a targeted   improvement plan under Subsection (a), the commissioner shall   assign that district or campus an overall performance rating of F   for the following school year unless, based on the performance of   the district or campus in that following school year, the   commissioner determines that the district or campus should be   assigned a performance rating of C or higher.           (d)  If a district or campus is assigned a domain performance   rating of D for the same domain for two consecutive school years   after the district or campus is ordered to develop and implement a   targeted improvement plan under Subsection (a), the commissioner   shall assign that district or campus a domain performance rating of   F for that domain for the following school year unless, based on the   performance of the district or campus in that following school   year, the commissioner determines the district or campus should be   assigned a performance rating of C or higher in that domain.          (e)  The commissioner shall adopt rules as necessary to   implement this section.          SECTION 5.  Section 39.107, Education Code, is amended by   adding Subsections (b-10) and (b-11) to read as follows:          (b-10)  Not later than June 15 of each year, the commissioner   shall, in writing, either approve or reject any campus turnaround   plan prepared and submitted to the commissioner by a district.  If   the commissioner rejects a campus turnaround plan, the commissioner   must also send the district an outline of the specific concerns   regarding the turnaround plan that resulted in the rejection.          (b-11)  If the commissioner rejects a campus turnaround   plan, the district must create a modified plan with assistance from   agency staff and submit the modified plan to the commissioner for   approval not later than the 60th day after the date the commissioner   rejects the campus turnaround plan.  The commissioner shall notify   the district in writing of the commissioner's decision regarding   the modified plan not later than the 15th day after the date the   commissioner receives the modified plan.          SECTION 6.  Section 12A.001(b), Education Code, is amended   to read as follows:          (b)  A school district is eligible for designation as a   district of innovation only if the district's most recent overall   performance rating under Section 39.054 is exemplary, recognized,   or acceptable as reflected by an overall [reflects at least   acceptable] performance rating of A, B, or C.          SECTION 7.  Section 12A.001(b), Education Code, as amended   by this Act, applies only to a school district designated as a   district of innovation on or after the effective date of this Act.          SECTION 8.  This Act applies beginning with the 2017-2018   school year.          SECTION 9.  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, 2017.       ______________________________ ______________________________      President of the Senate Speaker of the House                   I certify that H.B. No. 1500 was passed by the House on May 3,   2017, by the following vote:  Yeas 145, Nays 0, 2 present, not   voting; and that the House concurred in Senate amendments to H.B.   No. 1500 on May 26, 2017, by the following vote:  Yeas 143, Nays 0,   2 present, not voting, and that the House adopted S.C.R. No. 62   authorizing certain corrections in H.B. No. 1500 on May 29, 2017, by   the following vote: Yeas 141, Nays 3, 2 present, not voting.     ______________________________   Chief Clerk of the House               I certify that H.B. No. 1500 was passed by the Senate, with   amendments, on May 24, 2017, by the following vote:  Yeas 31, Nays   0, and that the Senate adopted S.C.R. No. 62 authorizing certain   corrections in H.B. No. 1500 on May 29, 2017, by the following vote:   Yeas 31, Nays 0.     ______________________________   Secretary of the Senate      APPROVED: __________________                   Date                       __________________                 Governor