H.B. No. 22         AN ACT   relating to public school accountability.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 11.252(a), Education Code, is amended to   read as follows:          (a)  Each school district shall have a district improvement   plan that is developed, evaluated, and revised annually, in   accordance with district policy, by the superintendent with the   assistance of the district-level committee established under   Section 11.251. The purpose of the district improvement plan is to   guide district and campus staff in the improvement of student   performance for all student groups in order to attain state   standards in respect to the achievement indicators adopted under   Section 39.053(c) [Sections 39.053(c)(1)-(4)]. The district   improvement plan must include provisions for:                (1)  a comprehensive needs assessment addressing   district student performance on the achievement indicators, and   other appropriate measures of performance, that are disaggregated   by all student groups served by the district, including categories   of ethnicity, socioeconomic status, sex, and populations served by   special programs, including students in special education programs   under Subchapter A, Chapter 29;                (2)  measurable district performance objectives for   all appropriate achievement indicators for all student   populations, including students in special education programs   under Subchapter A, Chapter 29, and other measures of student   performance that may be identified through the comprehensive needs   assessment;                (3)  strategies for improvement of student performance   that include:                      (A)  instructional methods for addressing the   needs of student groups not achieving their full potential;                      (B)  methods for addressing the needs of students   for special programs, including:                            (i)  suicide prevention programs, in   accordance with Subchapter O-1, Chapter 161, Health and Safety   Code, which includes a parental or guardian notification procedure;                            (ii)  conflict resolution programs;                            (iii)  violence prevention programs; and                            (iv)  dyslexia treatment programs;                      (C)  dropout reduction;                      (D)  integration of technology in instructional   and administrative programs;                      (E)  discipline management;                      (F)  staff development for professional staff of   the district;                      (G)  career education to assist students in   developing the knowledge, skills, and competencies necessary for a   broad range of career opportunities; and                      (H)  accelerated education;                (4)  strategies for providing to middle school, junior   high school, and high school students, those students' teachers and   school counselors, and those students' parents information about:                      (A)  higher education admissions and financial   aid opportunities;                      (B)  the TEXAS grant program and the Teach for   Texas grant program established under Chapter 56;                      (C)  the need for students to make informed   curriculum choices to be prepared for success beyond high school;   and                      (D)  sources of information on higher education   admissions and financial aid;                (5)  resources needed to implement identified   strategies;                (6)  staff responsible for ensuring the accomplishment   of each strategy;                (7)  timelines for ongoing monitoring of the   implementation of each improvement strategy;                (8)  formative evaluation criteria for determining   periodically whether strategies are resulting in intended   improvement of student performance; and                (9)  the policy under Section 38.0041 addressing sexual   abuse and other maltreatment of children.          SECTION 2.  Section 11.253(c), Education Code, is amended to   read as follows:          (c)  Each school year, the principal of each school campus,   with the assistance of the campus-level committee, shall develop,   review, and revise the campus improvement plan for the purpose of   improving student performance for all student populations,   including students in special education programs under Subchapter   A, Chapter 29, with respect to the achievement indicators adopted   under Section 39.053(c) [Sections 39.053(c)(1)-(4)] and any other   appropriate performance measures for special needs populations.          SECTION 3.  Section 12.1013(c), Education Code, is amended   to read as follows:          (c)  The report must include the performance of each public   school in each class described by Subsection (b) as measured by the   achievement indicators adopted under Section 39.053(c) [Sections   39.053(c)(1)-(4)] and student attrition rates.          SECTION 4.  Section 29.062(a), Education Code, is amended to   read as follows:          (a)  The legislature recognizes that compliance with this   subchapter is an imperative public necessity. Therefore, in   accordance with the policy of the state, the agency shall evaluate   the effectiveness of programs under this subchapter based on the   achievement indicators adopted under Section 39.053(c) [Sections   39.053(c)(1)-(4)], including the results of assessment   instruments. The agency may combine evaluations under this section   with federal accountability measures concerning students of   limited English proficiency.          SECTION 5.  Section 29.202(a), Education Code, is amended to   read as follows:          (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 assigned an unacceptable   performance rating that is made publicly available under Section   39.054 for:                (1)  the student achievement domain under Section   39.053(c)(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]; and [or]                (2)  the school progress domain under Section   39.053(c)(2) [that, at any time in the preceding three years,   failed to satisfy any standard under Section 39.054(e)].          SECTION 6.  Chapter 39, Education Code, is amended by adding   Subchapter A to read as follows:   SUBCHAPTER A. GENERAL PROVISIONS          Sec. 39.001.  RULES. (a) The commissioner shall adopt rules   as necessary to administer this chapter.          (b)  In adopting a rule under this chapter, the commissioner   shall solicit input statewide from persons who would likely be   affected by the proposed rule, including school district boards of   trustees, administrators and teachers employed by school   districts, parents of students enrolled in school districts, and   other interested stakeholders.          Sec. 39.002.  ADVISORY COMMITTEE. An advisory committee   appointed under this chapter is not subject to Chapter 2110,   Government Code.          SECTION 7.  Section 39.052(b), Education Code, is amended to   read as follows:          (b)  In determining the accreditation status of a school   district, the commissioner:                (1)  shall evaluate and consider:                      (A)  performance on achievement indicators   described by Section 39.053 [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 8.  Section 39.053, Education Code, is amended by   amending Subsections (a), (a-1), (b), (c), (d-1), (f), (g), (g-1),   (g-2), and (i) and adding Subsections (c-3) and (e) to read as   follows:          (a)  The commissioner shall adopt a set of indicators of the   quality of learning and achievement, including the indicators under   Subsection (c). 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 adopted under   Subsection (c) [Subsections (c)(1)-(4)] shall be compared to   state-established standards. The indicators must be based on   information that is disaggregated 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 must include [the results   of]:                      (A)  for evaluating the performance of districts   and campuses generally:                            (i)  an indicator that accounts for 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:                                  (a) [(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                                  (b) [(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                            (ii) [(B)]  an indicator that accounts for   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; and                      (B)  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 relevant   performance standards on advanced placement tests or similar   assessments;                            (iii)  students who earn dual course credits   in the dual credit courses;                            (iv)  students who enlist in the armed   forces of the United States;                            (v)  students who earn industry   certifications;                            (vi)  students admitted into postsecondary   industry certification programs that require as a prerequisite for   entrance successful performance at the secondary level;                            (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)  high school graduation 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.)   subject to the exclusions provided by Subsections (g), (g-1),   (g-2), and (g-3);                            (x)  students who successfully completed an   OnRamps dual enrollment course; and                            (xi)  students who are awarded an   associate's degree;                (2)  in the school progress [second] domain, indicators   for effectiveness in promoting student learning, which must   include:                      (A)  for assessment instruments, including   assessment instruments under Subdivisions (1)(A)(i) and (ii)   [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 evaluating relative performance, the   performance of districts and campuses compared to similar districts   or campuses [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 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 closing the gaps [fifth] domain, the   use of disaggregated data to demonstrate the differentials among   students from different racial and ethnic groups, socioeconomic   backgrounds, and other factors, including:                      (A)  students formerly receiving special   education services;                      (B)  students continuously enrolled; and                      (C)  students who are mobile [three programs or   specific categories of performance related to community and student   engagement locally selected and evaluated as provided by Section   39.0546].          (c-3)  Any standard for improvement determined by the   commissioner as described by Subsection (c)(2)(A) must allow for   appropriately crediting a student for growth if the student   performs at the highest achievement standard in the previous and   current school year.          (d-1)  In aggregating results of assessment instruments   across grade levels by subject in accordance with Subsection   (c)(1)(A)(i) [Subsection (c)(1)], 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)  For purposes of Subsection (c)(3)(A), a student   formerly receiving special education services means a student whose   enrollment information:                (1)  for the preceding school year, as reported through   the Public Education Information Management System (PEIMS),   indicates the student was enrolled at the campus and was   participating in a special education program; and                (2)  for the current school year, as reported through   the Public Education Information Management System (PEIMS) and as   reported on assessment instruments administered to the student   under Section 39.023, indicates the student is enrolled at the   campus and is not participating in a special education program.          (f)  Annually, the commissioner shall define the state   standard for the current school year for each achievement indicator   adopted under this section. In consultation with educators,   parents, and business and industry representatives, 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, ethnicity, and   socioeconomic status and to ensure this state is a national leader   in preparing students for postsecondary success [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 computing [defining the required state standard for   the] dropout and completion rates such as high school graduation   rates under Subsection (c)(1)(B)(ix) [rate indicator described by   Subsections (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 rates under Subsection (c)(1)(B)(ix)   [Subsections (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;                (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 an unschooled asylee   [refugees] or refugee [asylees] as defined by Section 39.027(a-1);                (5)  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                (6)  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)(B)(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.          (i)  Each school district shall submit the data required for   the indicators adopted under this section to the [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 9.  Subchapter C, Chapter 39, Education Code, is   amended by adding Section 39.0533 to read as follows:          Sec. 39.0533.  EXTRACURRICULAR AND COCURRICULAR STUDENT   ACTIVITY INDICATOR. (a) The commissioner shall study the   feasibility of incorporating for evaluating school district and   campus performance under this subchapter an indicator that accounts   for extracurricular and cocurricular student activity. If the   commissioner determines that an extracurricular and cocurricular   student activity indicator is appropriate, the commissioner may   adopt the indicator.          (b)  To determine the feasibility of adopting an indicator   under this section, the commissioner may require a school district   or campus to report requested information relating to   extracurricular and cocurricular student activity.          (c)  The commissioner may establish an advisory committee to   assist in determining the feasibility of incorporating an   extracurricular and cocurricular student activity indicator for   evaluating school district and campus performance.          (d)  Not later than December 1, 2022, the commissioner shall   report to the legislature on the feasibility of incorporating an   extracurricular and cocurricular student activity indicator,   unless the commissioner adopts an indicator under this section   before that date.          (e)  This section expires September 1, 2023.          SECTION 10.  Sections 39.054(a), (a-1), (a-2), (a-3), and   (e), Education Code, as effective on 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 domain under Section 39.053(c) [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. 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, [or] C, or D or performance that   is exemplary, recognized, or acceptable performance or performance   that needs improvement.          (a-1)  For purposes of assigning an overall performance   rating for a district or campus under Subsection (a), the   commissioner shall:                (1)  consider either the district's or campus's   performance rating under the student achievement domain under   Section 39.053(c)(1) or the school progress domain under Section   39.053(c)(2), 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 a   performance rating higher than a B for the composite for the two   domains; and                (2)  attribute not less than 30 percent of the   performance rating to the closing the gaps domain under Section   39.053(c)(3) [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)  The commissioner by rule may [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 under this section or a campus under   Section 39.0544 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.]          (e)  Each annual performance review under this section shall   include an analysis of the achievement indicators adopted under   Section 39.053, including Subsection (c) of that section, [Sections   39.053(c)(1)-(4)] to determine school district and campus   performance in relation to standards established for each   indicator.          SECTION 11.  Section 39.054, Education Code, is amended by   adding Subsections (a-4) and (b) to read as follows:          (a-4)  For performance ratings issued in August 2018 for the   2017-2018 school year for campus performance, the commissioner   shall issue only a rating of improvement required or met standard,   as applicable, to a campus. This subsection expires January 1,   2019.          (b)  For purposes of assigning school districts and campuses   an overall and a domain performance rating under Subsection (a),   the commissioner shall ensure that the method used to evaluate   performance is implemented in a manner that provides the   mathematical possibility that all districts and campuses receive an   A rating.          SECTION 12.  Section 39.054(f), Education Code, as effective   September 1, 2017, is transferred to Section 39.053, Education   Code, redesignated as Section 39.053(g-3), Education Code, and   amended to read as follows:          (g-3) [(f)]  In the computation of dropout and completion   rates such as high school graduation rates under Subsection   (c)(1)(B)(ix) [Sections 39.053(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 13.  Subchapter C, Chapter 39, Education Code, is   amended by adding Section 39.0541 to read as follows:          Sec. 39.0541.  ADOPTION OF INDICATORS AND STANDARDS. The   commissioner may adopt indicators and standards under this   subchapter at any time during a school year before the evaluation of   a school district or campus.          SECTION 14.  Subchapter C, Chapter 39, Education Code, is   amended by adding Sections 39.0542 and 39.0544 to read as follows:          Sec. 39.0542.  EXPLANATORY MATERIALS FOR ACCOUNTABILITY   RATING SYSTEM. (a) Each school year, the commissioner shall   provide each school district a document in a simple, accessible   format that explains the accountability performance measures,   methods, and procedures that will be applied for that school year in   assigning each school district and campus a performance rating   under Section 39.054.          (b)  The document provided under Subsection (a) must be   provided in a format that a school district is able to easily   distribute to parents of students enrolled in the district and   other interested members of the public.          (c)  The commissioner, in collaboration with interested   stakeholders, shall develop standardized language for each domain   that does not exceed 250 words and that clearly describes the annual   status of a district and campus relating to district and campus   performance on the indicators used for that domain to determine the   letter performance rating assigned to a district and campus.          Sec. 39.0544.  LOCAL ACCOUNTABILITY SYSTEM. (a) The   commissioner shall adopt rules regarding the assignment of campus   performance ratings by school districts and open-enrollment   charter schools. The rules:                (1)  must require a district or school, in assigning an   overall performance rating for a campus, to incorporate:                      (A)  domain performance ratings assigned by the   commissioner under Section 39.054; and                      (B)  performance ratings based on locally   developed domains or sets of accountability measures;                (2)  may permit a district or school to assign weights   to each domain or set of accountability measures described in   Subdivision (1), as determined by the district or school, provided   that the domains specified in Subdivision (1)(A) must in the   aggregate account for at least 50 percent of the overall   performance rating;                (3)  must require that each locally developed domain or   set of accountability measures:                      (A)  contains levels of performance that allow for   differentiation, with assigned standards for achieving the   differentiated levels;                      (B)  provides for the assignment of a letter grade   of A, B, C, D, or F; and                      (C)  meets standards for reliability and   validity;                  (4)  must require that calculations for overall   performance ratings and each locally developed domain or set of   accountability measures be capable of being audited by a third   party;                (5)  must require that a district or school produce a   campus score card that may be displayed on the agency's website; and                (6)  must require that a district or school develop and   make available to the public an explanation of the methodology used   to assign performance ratings under this section.          (b)  The commissioner shall develop a process to approve a   request by a school district or open-enrollment charter school to   assign campus performance ratings in accordance with this section.   Under that process, a district or school must obtain approval of a   local accountability plan submitted by the district or school to   the agency. A plan may be approved only if:                (1)  after review, the agency determines the plan meets   the minimum requirements under this section and agency rule;                (2)  at the commissioner's discretion, an audit   conducted by the agency verifies the calculations included in the   plan; and                (3)  subject to Subsection (d), a review panel   appointed under Subsection (c) approves the plan.          (c)  The commissioner shall appoint a review panel for   purposes of Subsection (b)(3) that includes a majority of members   who are superintendents or members of the board of trustees or   governing body of school districts or open-enrollment charter   schools with approved local accountability plans.          (d)  The requirement under Subsection (b)(3) applies only   after performance ratings are issued in August 2019 and only if at   least 10 school districts or open-enrollment charter schools have   obtained approval of locally developed accountability plans.           (e)  A school district or open-enrollment charter school   authorized under this section to assign campus performance ratings   shall evaluate the performance of each campus as provided by this   section and assign each campus a performance rating of A, B, C, D,   or F for overall performance and for each locally developed domain   or set of accountability measures. Not later than a date   established by the commissioner, the district or school shall:                (1)  report the performance ratings to the agency; and                (2)  make the performance ratings available to the   public as provided by commissioner rule.          SECTION 15.  Sections 39.0548(b), (c), and (d), Education   Code, are amended to read as follows:          (b)  Notwithstanding Section 39.053(c)(1)(B)(ix)   [39.053(c)(4)(A)(i)], the commissioner shall use the alternative   completion rate under this subsection to determine the graduation   [dropout] rate indicator under Section 39.053(c)(1)(B)(ix)   [39.053(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)(B)(ix)   [39.053(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 16.  Section 39.055, Education Code, is amended to   read as follows:          Sec. 39.055.  STUDENT ORDERED BY A JUVENILE COURT OR STUDENT   IN RESIDENTIAL FACILITY NOT CONSIDERED FOR ACCOUNTABILITY   PURPOSES. Notwithstanding any other provision of this code except   to the extent otherwise provided under Section 39.053(g-3)   [39.054(f)], for purposes of determining the performance of a   school district, campus, or open-enrollment charter school under   this chapter, a student ordered by a juvenile court into a   residential program or facility operated by or under contract with   the Texas Juvenile Justice Department, a juvenile board, or any   other governmental entity or any student who is receiving treatment   in a residential facility is not considered to be a student of the   school district in which the program or facility is physically   located or of an open-enrollment charter school, as   applicable.  The performance of such a student on an assessment   instrument or other achievement indicator adopted under Section   39.053 or reporting indicator adopted under Section 39.301 shall be   determined, reported, and considered separately from the   performance of students attending a school of the district in which   the program or facility is physically located or an open-enrollment   charter school, as applicable.          SECTION 17.  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:                (1)  an overall or domain performance rating of F; or                (2)  an overall performance rating of D as provided by   Subsection (c).          (c)  If a school district or campus is assigned an overall   performance rating of D for a school year after the district or   campus is ordered to develop and implement a targeted improvement   plan under Subsection (a), the commissioner shall implement   interventions and sanctions that apply to an unacceptable campus   and those interventions and sanctions shall continue for each   consecutive school year thereafter in which the campus is assigned   an overall performance rating of D.           (d)  The commissioner shall adopt rules as necessary to   implement this section.          SECTION 18.  Section 39.301(b), Education Code, is amended   to read as follows:          (b)  Performance on the indicators adopted under this   section shall be evaluated in the same manner provided for   evaluation of the achievement indicators under Section 39.053(c)   [Sections 39.053(c)(1)-(4)].          SECTION 19.  The following provisions of the Education Code   are repealed:                (1)  Section 39.054(c), as effective September 1, 2017;   and                (2)  Sections 39.0545 and 39.0546.          SECTION 20.  If H.B. 1500, 85th Legislature, Regular   Session, 2017, becomes law, that law has no effect.          SECTION 21.  Not later than January 1, 2019, the   commissioner of education shall submit a report to the standing   committees of the legislature having primary jurisdiction over   primary and secondary education that provides for a preliminary   evaluation of campuses under Section 39.054, Education Code, as   amended by this Act. The report must include:                (1)  the overall and domain performance rating each   campus would have received under Section 39.054, Education Code, as   amended by this Act, for the 2017-2018 school year if the indicators   adopted by the commissioner of education under Section 39.053,   Education Code, as amended by this Act, existed during the   2017-2018 school year; and                (2)  the correlation between each designated letter   performance rating the campus would have received and the   percentage of students at each campus:                      (A)  qualifying for the free or reduced-price   breakfast under the national school breakfast programs provided for   by the Child Nutrition Act of 1966 (42 U.S.C. Section 1773);                      (B)  that are students of limited English   proficiency as defined by Section 29.052, Education Code; and                      (C)  disaggregated by race, ethnicity, and   socioeconomic status used to assign ratings in the system.          SECTION 22.  This Act applies beginning with the 2017-2018   school year.          SECTION 23.  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. 22 was passed by the House on May 4,   2017, by the following vote:  Yeas 146, Nays 0, 2 present, not   voting; that the House refused to concur in Senate amendments to   H.B. No. 22 on May 26, 2017, and requested the appointment of a   conference committee to consider the differences between the two   houses; and that the House adopted the conference committee report   on H.B. No. 22 on May 28, 2017, by the following vote:  Yeas 140,   Nays 0, 1 present, not voting, and that the House adopted H.C.R. No.   165 authorizing certain corrections in H.B. No. 22 on May 29, 2017,   by the following vote: Yeas 147, Nays 0, 1 present, not voting.     ______________________________   Chief Clerk of the House               I certify that H.B. No. 22 was passed by the Senate, with   amendments, on May 24, 2017, by the following vote:  Yeas 28, Nays   3; at the request of the House, the Senate appointed a conference   committee to consider the differences between the two houses; and   that the Senate adopted the conference committee report on H.B. No.   22 on May 28, 2017, by the following vote:  Yeas 31, Nays 0, and   that the Senate adopted H.C.R. No. 165 authorizing certain   corrections in H.B. No. 22 on May 29, 2017, by the following vote:   Yeas 31, Nays 0.     ______________________________   Secretary of the Senate      APPROVED: __________________                   Date                       __________________                 Governor