By: Huberty H.B. No. 22       A BILL TO BE ENTITLED   AN ACT   relating to public school accountability.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 29.202, Education Code, is amended as   follows:          Sec. 29.202.  ELIGIBILITY. (a)  A  student is eligible to   receive a public education grant or to attend another public school   in the district in which the student resides under this subchapter   if the student is assigned to attend a public school campus that has   been issued an unacceptable performance rating, in both the student   achievement domain under Section 39.053(c)(1) and the school   progress domain under Section 39.053(c)(2), that is made publicly   available under Section 39.054:                (1)     at which 50 percent or more of the students did not   perform satisfactorily on an assessment instrument administered   under Section 39.023(a) or (c) in any two of the preceding three   years (a-3) ; or                (2)     that, at any time in the preceding three years,   failed to satisfy any standard under Section 39.054(e).          (b)  After a student has used a public education grant to   attend a school in a district other than the district in which the   student resides:                (1)  the student does not become ineligible for the   grant if the school on which the student's initial eligibility is   based no longer meets the criteria under Subsection (a); and                (2)  the student becomes ineligible for the grant if   the student is assigned to attend a school that does not meet the   criteria under Subsection (a).          SECTION 2.  Section 39.052(b)(1), Education Code, is amended   as follows:          Sec. 39.052.  DETERMINATION OF ACCREDITATION STATUS OR   PERFORMANCE RATING. (a)  Each year, the commissioner shall   determine the accreditation status of each school district.          (b)  In determining the accreditation status of a school   district, the commissioner:                (1)  shall evaluate and consider:                      (A)  performance in the domains on achievement   indicators described by Section 39.053(c); and                      (B)  performance under the financial   accountability rating system developed under Subchapter D; and                (2)  may evaluate and consider:                      (A)  the district's compliance with statutory   requirements and requirements imposed by rule of the commissioner   or State Board of Education under specific statutory authority that   relate to:                            (i)  reporting data through the Public   Education Information Management System (PEIMS) or other reports   required by state or federal law or court order;                            (ii)  the high school graduation   requirements under Section 28.025; or                            (iii)  an item listed under Sections   7.056(e)(3)(C)-(I) that applies to the district;                      (B)  the effectiveness of the district's programs   for special populations; and                      (C)  the effectiveness of the district's career   and technology program.          SECTION 3.  Section 39.053, Education Code, is amended as   follows:          Sec. 39.053.  PERFORMANCE INDICATORS: ACHIEVEMENT.  (a)  The   commissioner shall adopt a set of indicators, including the   indicators within the domains specified under Subsection (c), of   the quality of learning and achievement.  The commissioner   periodically biennially shall review the indicators for the   consideration of appropriate revisions.          (a-1)  The indicators adopted by the commissioner under   Subsection (a), including the indicators identified under   Subsection (c), must measure and evaluate school districts, and   campuses with respect to:                (1)  improving student preparedness for success in:                      (A)  subsequent grade levels; and                      (B)  entering the workforce, the military, or   postsecondary education;                (2)  reducing, with the goal of eliminating, student   academic achievement differentials among students from different   racial and ethnic groups and socioeconomic backgrounds; and                (3)  informing parents and the community regarding   campus and district performance in the domains described by   Subsection (c) and, for the domain described by Subsection (c)(5),   in accordance with local priorities and preferences.          (b)  Performance on the achievement indicators in the   domains adopted under Subsections (c)(1)-(4), (2), and (3)(B)-(C)   shall be compared to state-established standards.  To the extent   feasible, the The indicators must be based on information that is   disaggregated should allow for disaggregation by race, ethnicity,   and socioeconomic status.          (c)  School districts and campuses must be evaluated based on   three five domains of indicators of achievement adopted under this   section that include:                (1)  in the student achievement first domain,   indicators of student achievement that shall include the results   of:                      (A)  the results of assessment instruments   required under Sections 39.023(a), (c), and (l), as applicable for   the district and campus, 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)  the results of assessment instruments   required under Section 39.023(b), as applicable for the district   and campus 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;                      (C)  the results of locally selected assessments,   to the extent that alternative assessments are available under   rules to be adopted by the commissioner;                      (D)  for evaluating the performance of high school   campuses and districts that include high school campuses,   indicators that account for:                            (i)  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 or mathematics designated by   the Texas Higher Education Coordinating Board under Section   51.3062(c);                            (ii)  students who satisfy standards on   advanced placement assessments, college level examination program   assessments, or similar assessments;                            (iii)  students who earn the qualifying   number of dual course credits;                            (iv)  students who enlist in the armed   forces of the United States;                            (v)  students who earn a qualifying industry   certification;                            (vi)  students admitted into postsecondary   industry certification programs that require as a prerequisite for   entrance performance or attainment of secondary level success;                            (vii)  students whose successful completion   of a course or courses under Section 28.014 indicates the student's   preparation to enroll and succeed, without remediation, in an entry   level general education course for a baccalaureate degree or   associate degree;                            (viii)  students who successfully met   standards on a composite of indicators that through research   indicates the student's preparation to enroll and succeed, without   remediation, in an entry level general education course for a   baccalaureate degree or associate degree;                            (ix)  students' high school graduation   rates, including completion rates, computed in accordance with   standards and definitions adopted in compliance with the Every   Student Succeeds Act (20 U.S.C. Section 6301 et seq.) except as   provided by Subsections (g), (g-1), (g-2) and Section 39.054(f);                            (x)  students who successfully complete the   distinguished level of achievement under Section 28.025(b-7); and                            (xi)  students who complete an associate   level degree while enrolled in high school;                      (E)  for evaluating the performance of middle   school campuses and districts that serve students through the   eighth grade, indicators that account for:                            (i)  students who satisfy standards on   advanced placement assessments, college admissions tests, or   similar assessments; and                            (ii)  students who drop out of school   annually and do not return by a certain date, established in rules   to be adopted by the commissioner, in the following school year; and                      (F)  for evaluating the performance of campuses   and districts that serve elementary, middle, and high school   students, indicators that account for:                            (i)  students who successfully complete fine   arts, physical education, or second language acquisition courses or   enrichment classes;                            (ii)  students who participate in   extra-curricular programs, such as UIL (academic, fine arts,   athletic), clubs (foreign language, fine arts, chess, robotics,   etc.), or other extra-curricular activities.                (2)  in the school progress second domain, indicators   that account for effectiveness in promoting student learning, which   may include:                      (A)  for assessment instruments, including   assessment instruments under Subdivision (1)(A), (1)(B), and to the   extent available, (1)(C), indicators that account for:                            (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,   including students who took English language proficiency   assessments under Section 29.056(a)(2) and met the applicable   standards for improvement; 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;                      (B)  students identified under Section 29.052 who   successfully exit the programs by meeting criteria under Section   29.056(g) 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;                      (C)  students enrolled in grade 9 for the first   time who have earned enough credits by the end of that school year   for promotion to the next grade level;                      (D)  students enrolled in grades 1 through 8 who,   by the end of the school year, successfully complete curriculum   requirements for advancement to the next grade level;                      (E)  students who complete varied, rigorous and   relevant curricular options that lead to postsecondary success,   including completion of advanced placement courses or other similar   courses;                      (F)  for middle and high school campuses and   districts that serve students in grades 6, 7, 8, 9, 10, 11, or 12,   student participation rates in advanced placement, international   baccalaureate, college admissions or preliminary college   admissions assessments; and                      (G)  the performance of a district or campus   compared to similar districts or campuses; and                (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 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 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 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;                      (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)     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                (3) (5)  in the school climate fifth domain, indicators   of school climate, which may include:                      (A)  three programs or specific categories of   performance related to community and student engagement locally   selected and evaluated as provided by Section 39.0546, which shall   comprise at least 50% of the domain rating;                      (B)  students who successfully complete at least   one endorsement under Section 28.025(c-1);                      (C)  students who successfully complete a   coherent sequence of career and technical courses or a coherent   sequence of fine arts courses;                      (D)  economically disadvantaged students who   successfully complete a postsecondary readiness course;                      (E)  students who are not absent 15 days or more   during the school year. "Absent" in this subsection means that the   students is not physically on school grounds and is not   participating in instruction or instruction-related activities at   an approved off-campus location for the school day, without regard   to whether the absence is excused or unexcused;                      (F)  teacher quality indicators as determined by   the commissioner;                      (G)  for elementary campuses serving kindergarten   through fifth grade, student participation rates in literacy and   mathematics academies;                      (H)  for elementary campuses serving   Pre-Kindergarten, student participation rates in full-day   Pre-kindergarten programs;                      (I)  health and wellness indicators as determined   by the commissioner; and                      (J)  results from a local evaluation of school or   district climate, obtained through a uniform method of data   collection adopted into rule by the commissioner, for all schools   and districts in the state;          (c-1)  An indicator adopted under Subsection (c) that would   measure improvements in student, campus, or district progress in   the school progress domain achievement cannot negatively affect the   commissioner's review of a school district or campus if that   district or campus is already achieving at the highest level for   that indicator.          (c-2)  The commissioner by rule shall determine a method by   which a student's performance may be included in determining the   performance rating of a school district or campus under Section   39.054 if, before the student graduates, the student:                (1)  satisfies 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 designated by the Texas Higher Education   Coordinating Board under Section 51.3062(c); or                (2)  performs satisfactorily on an assessment   instrument under Section 39.023(c), notwithstanding Subsection   (d).          (d)  For purposes of Subsection (c), the commissioner by rule   shall determine the period within which a student must retake an   assessment instrument for that assessment instrument to be   considered in determining the performance rating of the district   under Section 39.054.          (d-1)  In aggregating results of assessment instruments   across grade levels by subject in accordance with Subsection   (c)(1)(A) the performance of a student enrolled below the high   school level on an assessment instrument required under Section   39.023(c) is included with results relating to other students   enrolled at the same grade level.          (e)  [Repealed by Acts 2015, 84th Leg., R.S., Ch. 1094 (H.B.   2804), effective June 19, 2015.          (f)  By September 30 annually, or as soon thereafter as   possible Annually, the commissioner shall define the state standard   for the current school year for each domain adopted under this   section and evaluated under Section 39.054. In consultation with   educators, parents, business and industry, as necessary, the   commissioner shall establish and modify standards to continuously   improve student performance to achieve the goals of eliminating   achievement gaps based on race, ethnic and socioeconomic status and   to ensure Texas is a national leader in preparing students for   postsecondary success. achievement indicator described by   Subsections (c)(1)-(4) and shall project the state standards for   each indicator for the following two school years. The   commissioner shall periodically raise the state standards for the   college readiness achievement indicator described by Subsection   (c)(1)(A)(ii) for accreditation as necessary to reach the goals of   achieving, by not later than the 2019-2020 school year:                (1)     student performance in this state, disaggregated   by race, ethnicity, and socioeconomic status, that ranks nationally   in the top 10 states in terms of college readiness; and                (2)     student performance with no significant   achievement gaps by race, ethnicity, and socioeconomic status.          (g)  In the computation of a defining the required state   standard for the dropout rate indicator described by graduation or   completion rate such as a high school graduation rate under   Subsections (c)(1)(D)(ix) (c)(4)(A)(i) and (B)(ii)(a), the   commissioner may not consider as a dropout a student whose failure   to attend school results from:                (1)  the student's expulsion under Section 37.007; and                (2)  as applicable:                      (A)  adjudication as having engaged in delinquent   conduct or conduct indicating a need for supervision, as defined by   Section 51.03, Family Code; or                      (B)  conviction of and sentencing for an offense   under the Penal Code.          (g-1)  In computing dropout and completion rates such as high   school graduation or completion rates under Subsections   (c)(1)(D)(ix) (c)(4)(A)(i) and (B)(ii)(a), the commissioner shall   exclude:                (1)  students who are ordered by a court to attend a   high school equivalency certificate program but who have not yet   earned a high school equivalency certificate;                (2)  students who were previously reported to the state   as dropouts, including a student who is reported as a dropout,   reenrolls, and drops out again, regardless of the number of times of   reenrollment and dropping out, unless the student graduates;                (3)  students in attendance who are not in membership   for purposes of average daily attendance;                (4)  students whose initial enrollment in a school in   the United States in grades 7 through 12 was as unschooled refugees   or asylees as defined by Section 39.027(a-1);                (5)  students whose initial enrollment in Texas public   schools occurred in grades 11-12;                (6)  students who are in the district exclusively as a   function of having been detained at a county detention facility but   are otherwise not students of the district in which the facility is   located; and                (7)  students who are incarcerated in state jails and   federal penitentiaries as adults and as persons certified to stand   trial as adults.          (g-2)  In computing completion rates such as high school   graduation rates under Subsection (c)(1)(D)(ix) (c)(2), the   commissioner shall exclude students who:                (1)  are at least 18 years of age as of September 1 of   the school year as reported for the fall semester Public Education   Information Management System (PEIMS) submission and have   satisfied the credit requirements for high school graduation;                (2)  have not completed their individualized education   program under 19 T.A.C. Section 89.1070(b)(2) and the Individuals   with Disabilities Education Act (20 U.S.C. Section 1400 et seq.);   and                (3)  are enrolled and receiving individualized   education program services.          (g-3)  In annually computing results under Section 39.053©,   the commissioner shall exclude students who are newly enrolled in   Texas public schools from the evaluation of results under Section   39.054(a), as effective on September 1, 2017. The term "newly   enrolled" in this subsection refers to students who transfer into   Texas public schools from out of state or out of the country, and   who have no prior history of enrollment within Texas public   schools.          (h)  Each school district shall cooperate with the agency in   determining whether a student is a dropout for purposes of   accreditation and evaluating performance by school districts and   campuses under this chapter.          (i)  Each school district shall submit the data required for   the indicators adopted under this section, to the extent necessary   for processing under Section 39.054.  The commissioner by rule   shall adopt accountability measures to be used in assessing the   progress of students who have failed to perform satisfactorily as   determined by the commissioner under Section 39.0241(a) or under   the college readiness standard as determined under Section 39.0241   in the preceding school year on an assessment instrument required   under Section 39.023(a), (c), or (l).          SECTION 4.  Section 39.0531, Education Code, is added as   follows:          Sec. 39.0531.  STUDENT SURVEYS. (a) The commissioner may   incorporate student surveys as an indicator under 39.053(c)(3).          (b)  The commissioner may develop rules to implement this   section, including rules:                (1)  determining the format of student surveys;                (2)  determining the questions that student surveys   must include;                (3)  establishing when student surveys must be   conducted;                (4)  establishing requirements and parameters for   administering and reporting results of the student surveys; and                (5)  authorizing school districts and open enrollment   charter schools to administer the student surveys or include the   required survey questions in a locally administered student survey.          (c)  Notwithstanding any other provision including Section   21.355, school districts and open enrollment charter schools shall   report the information required under this section to the agency in   accordance with rules adopted under subsection (b).          (d)  The commissioner may contract with a third party to   fulfill any and all functions under this section.          (e)  The commissioner shall determine the feasibility of   incorporating student surveys for use in the accountability ratings   by the 2021-2022 school year, by piloting the use of such surveys in   the 2018-2019 school year and reporting the results of such surveys   in the 2019-2020 and 2020-2021 school years. This subsection   expires September 1, 2022.          SECTION 5.  Section 39.054, Education Code, is amended as   follows:          Sec. 39.054.  METHODS AND STANDARDS FOR EVALUATING   PERFORMANCE.          (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 Sections 39.0 53(c)(1)-(3) (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 in need of   improvement. A 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 exemplary, recognized, or acceptable or needs   improvement performance.          (a-1)  In assigning ratings under Subsection (a):                (1)  the commissioner may adjust the performance rating   for a domain disaggregated by race, ethnicity, socioeconomic   status, or other factors;                (2)  the weight given to the indicators in Section   39.053(c)(1)(A) and (B), combined, may not be greater than 50   percent of the total weight in assigning a rating to the student   achievement domain under Section 39.053(c)(1); and                (3)  the weight given to the indicators in Section   39.053(c)(2)(A) may not be greater than 50 percent of the total   weight in assigning a rating to the student progress domain under   Section 39.053(c)(2).          If the commissioner determines a domain rating adjustment is   needed, the adjustment is limited to one and only one letter grade   change.   For purposes of assigning an overall performance rating under   Subsection (a), the commissioner shall attribute:                (1)     55 percent of the performance evaluation to the   achievement indicators for the first, second, and third domains   under Sections 39.053(c)(1)-(3);                (2)     for middle and junior high school and elementary   campuses and districts that include only those campuses, 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:                      (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)     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).          (a-2)  For purposes of evaluating the performance of a school   or district under Subsection (a), to the extent feasible, the   commissioner shall give greater weight to the results of students   who have been enrolled for at least four consecutive years in the   same school or district. The commissioner by rule shall adopt   procedures to ensure that a repeated performance rating of D or F or   unacceptable in one domain, particularly performance that is not   significantly improving, is reflected in the overall performance   rating of a district or campus and is not compensated for by a   performance rating of A, B, or C in another domain.          (a-3)  Not later than August 15 of each year, the performance   ratings of each district and campus shall be made publicly   available as provided by rules adopted under this section. If a   district or campus received an overall or domain performance rating   of D or F for the preceding school year, the commissioner shall   notify the district of a subsequent such designation on or before   June 15 or as soon thereafter as is practicable.          (b)  Repealed by Acts 2015, 84th Leg., R.S., Ch. 1094, Sec.   22, eff. June 19, 2015.          (b-1)  Consideration of the effectiveness of district   programs under Section 39.052(b)(2)(B) or (C):                (1)  must:                      (A)  be based on data collected through the Public   Education Information Management System (PEIMS) for purposes of   accountability under this chapter; and                      (B)  include the results of assessments required   under Section 39.023; and                (2)  may be based on the results of a special   accreditation investigation conducted under Section 39.057.          (c)  In evaluating school district and campus performance on   the achievement indicators for student performance on assessment   instruments adopted under Sections 39.053(c)(1)(A)-(B) and   39.053(c)(1)(D)(x) and in the school progress domain under Section   39.053(c)(2)(A)(2) and the dropout rate indicator adopted under   Sections 39.053(c)(4)(A)(i) and (B)(ii)(a), the commissioner shall   evaluate define acceptable performance as meeting the state   standard determined by the commissioner under Section 39.053(f) for   the current school year based on:                (1)  student performance in the current school   year; or                (2)  when necessary to address small numbers of records   available to use in the calculations, student performance as   averaged over the current school year and the preceding two school   years.          (d)  Repealed by Acts 2015, 84th Leg., R.S., Ch. 1094, Sec.   22, eff. June 19, 2015.          (d-1)  Repealed by Acts 2015, 84th Leg., R.S., Ch. 1094, Sec.   22, eff. June 19, 2015.          (e)  Each annual performance review under this section shall   include an analysis of the domains student achievement indicators   adopted under Section 39.053, including Subsections   39.053(c)(1)-(3),(4) to determine school district and campus   performance in relation to standards established for each domain   indicator.          (f)  In the computation of dropout rates and completion rates   such as high school graduation rates under Sections   39.053(c)(1)(D)(ix)(c)(4)(A)(i) and (B)(ii)(a), a student who is   released from a juvenile pre-adjudication secure detention   facility or juvenile post-adjudication secure correctional   facility and fails to enroll in school or a student who leaves a   residential treatment center after receiving treatment for fewer   than 85 days and fails to enroll in school may not be considered to   have dropped out from the school district or campus serving the   facility or center unless that district or campus is the one to   which the student is regularly assigned. The agency may not limit an   appeal relating to dropout computations under this subsection.          SECTION 6.  Section 39.0541, Education Code, is added as   follows:          Sec. 39.0541.  ADOPTION OF INDICATORS AND STANDARDS. (a)     The commissioner may adopt rules to implement this chapter.          (b)  The commissioner shall adopt indicators and standards   under this chapter at any time prior to September 30 of the same   school year in which the evaluation of a school district or campus   will take place.          SECTION 7.  Section 39.0546, Education Code, is amended as   follows:          Sec. 39.0546.  PERFORMANCE IN COMMUNITY AND STUDENT   ENGAGEMENT AS COMPONENT OF OVERALL DISTRICT AND CAMPUS RATING.  (a)     For purposes of including the local evaluation of districts and   campuses under Section 39.053(c)(3)(A)(5) and assigning an overall   rating under Section 39.054, before the beginning of each school   year:                (1)  each school district shall:                      (A)  select and report to the agency three   programs or categories under Section 39.0545(b)(1), as added by   Chapter 211 (H.B. 5), Acts of the 83rd Legislature, Regular   Session, 2013, under which the district will evaluate district   performance;                      (B)  submit to the agency the criteria the   district will use to evaluate district performance and assign the   district a performance rating; and                      (C)  make the information described by Paragraphs   (A) and (B) available on the district's Internet website; and                (2)  each campus shall:                      (A)  select and report to the agency three   programs or categories under Section 39.0545(b)(1), as added by   Chapter 211 (H.B. 5), Acts of the 83rd Legislature, Regular   Session, 2013, under which the campus will evaluate campus   performance;                      (B)  submit to the agency the criteria the campus   will use to evaluate campus performance and assign the campus a   performance rating; and                      (C)  make the information described by Paragraphs   (A) and (B) available on the Internet website of the campus.          (b)  Based on the evaluation under this section, each school   district shall assign the district and each campus shall assign the   campus a performance rating of A, B, C, D, or F, for both overall   performance and for each program or category evaluated. An overall   or a program or category performance rating of A reflects exemplary   performance. An overall or a program or category performance rating   of B reflects recognized performance. An overall or a program or   category performance rating of C reflects acceptable performance.   An overall or a program or category performance rating of D reflects   performance in need of improvement. An overall or a program or   category performance rating of or F reflects unacceptable   performance.          (c)  On or before the date determined by the commissioner by   rule, each school district and campus shall report each performance   rating to the agency for the purpose of including the ratings in   evaluating school district and campus performance and assigning an   overall rating the school climate domain under Sections   39.053(c)(3) and 39.054.          SECTION 8.  Section 39.0548, Education Code, is amended as   follows:          Sec. 39.0548.  EVALUATING DROPOUT RECOVERY SCHOOLS. (a)     For purposes of evaluating performance under Section 39.053(c), the   commissioner shall designate as a dropout recovery school a school   district or an open-enrollment charter school or a campus of a   district or of an open-enrollment charter school:                (1)  that serves students in grades 9 through 12 and has   an enrollment of which at least 50 percent of the students are 1517   years of age or older as of September 1 of the school year as   reported for the fall semester Public Education Information   Management System (PEIMS) submission; and                (2)  that meets the eligibility requirements for and is   registered under alternative education accountability procedures   adopted by the commissioner.          (b)  Notwithstanding Section 39.053(c)(1)(D)(ix) the   commissioner shall use the alternative completion rate under this   subsection to determine the dropout graduation rate indicator under   Section 39.053(c)(1)(D)(ix) (c)(4)(A)(i) for a dropout recovery   school. The alternative completion rate shall be the ratio of the   total number of students who graduate, continue attending school   into the next academic year, or receive a high school equivalency   certificate to the total number of students in the longitudinal   cohort of students.          (c)  Notwithstanding Section 39.053(c)(1)(D)(ix)   (c)(4)(A)(i), in determining the performance rating under Section   39.054 of a dropout recovery school, the commissioner shall include   any student described by Section 39.053(g-1) who graduates or   receives a high school equivalency certificate.          (d)  Notwithstanding Section 39.053(c), for purposes of   evaluating a dropout recovery school under the accountability   procedures adopted by the commissioner to determine the performance   rating of the school under Section 39.054:                (1)  only the best result from the primary   administration or any retake of an assessment instrument   administered to a student in the school year evaluated may be   considered; and                (2)  only a student enrolled continuously for at least   90 days during the school year evaluated may be considered.          SECTION 9.  The indicator measures and domains established   under Section 39.053, as revised, shall be evaluated under the   procedures in Section 39.054, as revised, beginning in August 2019.          SECTION 10.  (a)  No later than December 1, 2017, the   commissioner shall prepare a report to the governor, lieutenant   governor, speaker of the House, and the chairs of the Senate   committee on education and the House committee on public education   that, to the greatest extent possible, describes and lists the   ratings that would be assigned to each school and district under   Section 39.054, if the domains and indicators described in Section   39.053 in August, 2018, were in place in August, 2017, using   available data from no later than the 2017-2018 school year. The   report shall include information about the extent to which ratings   under Section 39.054 correlate with student demographic   characteristics, including economic status, continuously enrolled   status, identification as a student with limited English   proficiency under Section 29.052, and identification for special   education under Section 29.003(b).          (b)  No later than December 1, 2018, the commissioner shall   prepare a report to the governor, lieutenant governor, speaker of   the House, and the chairs of the Senate committee on education and   the House committee on public education that, to the greatest   extent possible, describes and lists the ratings that would be   assigned to each school and district under Section 39.054, if the   domains and indicators described in Section 39.053 in August, 2019,   were in place in August, 2018, using available data from no later   than the 2017-2018 school year. The report shall include   information about the extent to which ratings under Section 39.054   correlate with student demographic characteristics, including   economic status, continuously enrolled status, identification as a   student with limited English proficiency under Section 29.052, and   identification for special education under Section 29.003(b).          (c)  This section expires on December 1, 2019.          SECTION 11.  This Act takes effect September 1, 2017.