87R7654 CAE-D     By: Dutton H.B. No. 3731       A BILL TO BE ENTITLED   AN ACT   relating to public school accountability ratings, including   interventions and sanctions administered to a school district or   campus assigned a needs improvement rating.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Sections 8.051(b) and (d), Education Code, are   amended to read as follows:          (b)  Each regional education service center shall annually   develop and submit to the commissioner for approval a plan for   improvement. Each plan must include the purposes and description   of the services the center will provide to:                (1)  campuses assigned an overall performance rating of   D or F [an unacceptable performance rating] under Section 39.054;                (2)  the lowest-performing campuses in the region; and                (3)  other campuses.          (d)  Each regional education service center shall maintain   core services for purchase by school districts and campuses. The   core services are:                (1)  training and assistance in:                      (A)  teaching each subject area assessed under   Section 39.023; and                      (B)  providing instruction in personal financial   literacy as required under Section 28.0021;                (2)  training and assistance in providing a gifted and   talented program and each program that qualifies for a funding   allotment under Section 48.102, 48.104, or 48.105;                (3)  assistance specifically designed for a school   district or campus assigned an overall performance rating of D or F   [an unacceptable performance rating] under Section 39.054;                (4)  training and assistance to teachers,   administrators, members of district boards of trustees, and members   of site-based decision-making committees;                (5)  assistance specifically designed for a school   district that is considered out of compliance with state or federal   special education requirements, based on the agency's most recent   compliance review of the district's special education programs; and                (6)  assistance in complying with state laws and rules.          SECTION 2.  Sections 11.174(b) and (f), Education Code, are   amended to read as follows:          (b)  The board of trustees of a school district may enter   into a contract as provided by Subsection (a) only if:                (1)  the charter of the open-enrollment charter school   has not been previously revoked;                (2)  for the three school years preceding the school   year of the proposed operation of the district campus as described   by Subsection (a), the open-enrollment charter school has received:                      (A)  an overall performance rating of C or higher    [acceptable or higher] under Section 39.054 [Subchapter C, Chapter   39]; and                      (B)  a financial accountability rating under   Subchapter D, Chapter 39, indicating financial performance of   satisfactory or higher; or                (3)  the entity considered for a district-authorized   charter has not previously operated an open-enrollment charter   school in which the charter expired or was revoked or surrendered.          (f)  This subsection applies only to a district campus   subject to a contract described by Subsection (a) that received an   overall performance rating of D under Section 39.054 and is subject   to commissioner action under Section 39A.117(b) or is otherwise   assigned an overall performance rating of unacceptable under   Subchapter C, Chapter 39, for the school year before operation of   the district campus under the contract began. The commissioner may   not impose a sanction or take action against the campus under   Section 39A.101 [39.107(a)] or 39A.111 [(e)] for failure to satisfy   academic performance standards during the first two school years of   operation of a district campus under Subsection (a). The overall   performance rating received by the campus during those first two   school years is not included in calculating consecutive school   years and is not considered a break in consecutive school years   under Section 39A.101 [39.107(a)] or 39A.111 [(e)].          SECTION 3.  Section 12.1054(a), Education Code, is amended   to read as follows:          (a)  A member of the governing body of a charter holder, a   member of the governing body of an open-enrollment charter school,   or an officer of an open-enrollment charter school is considered to   be a local public official for purposes of Chapter 171, Local   Government Code. For purposes of that chapter:                (1)  a member of the governing body of a charter holder   or a member of the governing body or officer of an open-enrollment   charter school is considered to have a substantial interest in a   business entity if a person related to the member or officer in the   third degree by consanguinity or affinity, as determined under   Chapter 573, Government Code, has a substantial interest in the   business entity under Section 171.002, Local Government Code;                (2)  notwithstanding any provision of Section   12.1054(a)(1) [12.1054(1)], an employee of an open-enrollment   charter school that received an overall performance rating of C   [rated acceptable] or higher under Section 39.054 for at least two   of the preceding three school years may serve as a member of the   governing body of the charter holder of the governing body of the   school if the employees do not constitute a quorum of the governing   body or any committee of the governing body; however, all members   shall comply with the requirements of Sections 171.003-171.007,   Local Government Code.          SECTION 4.  Section 12.110(e), Education Code, is amended to   read as follows:          (e)  The commissioner shall give priority to applications   that propose an open-enrollment charter school campus to be located   in the attendance zone of a school district campus assigned an   overall performance rating of D and that is subject to commissioner   action under Section 39A.117(b) or an unacceptable performance   rating under Section 39.054 for the two preceding school years.          SECTION 5.  Sections 12.1141(b) and (d), Education Code, are   amended to read as follows:          (b)  At the end of the term of a charter for an   open-enrollment charter school, if a charter holder submits to the   commissioner a petition for expedited renewal of the charter, the   charter automatically renews unless, not later than the 30th day   after the date the charter holder submits the petition, the   commissioner provides written notice to the charter holder that   expedited renewal of the charter is denied. The commissioner may   not deny expedited renewal of a charter if:                (1)  the charter holder has been assigned the highest   or second highest performance rating under Subchapter C, Chapter   39, for the three preceding school years;                (2)  the charter holder has been assigned a financial   performance accountability rating under Subchapter D, Chapter 39,   indicating financial performance that is satisfactory or better for   the three preceding school years; and                (3)  no campus operating under the charter has been   assigned an overall performance rating of D and is subject to   commissioner action under Section 39A.117(b) or is otherwise   assigned an unacceptable performance rating [the lowest   performance rating] under Section 39.054 [Subchapter C, Chapter   39], for the three preceding school years or such a campus has been   closed.          (d)  At the end of the term of a charter for an   open-enrollment charter school, if a charter holder submits to the   commissioner a petition for renewal of the charter, the   commissioner may not renew the charter and shall allow the charter   to expire if:                (1)  the charter holder has been assigned an overall   performance rating of D and is subject to commissioner action under   Section 39A.117(b) or has been otherwise assigned an unacceptable   [the lowest] performance rating under Subchapter C, Chapter 39, for   any three of the five preceding school years;                (2)  the charter holder has been assigned a financial   accountability performance rating under Subchapter D, Chapter 39,   indicating financial performance that is lower than satisfactory   for any three of the five preceding school years;                (3)  the charter holder has been assigned any   combination of the ratings described by Subdivision (1) or (2) for   any three of the five preceding school years; or                (4)  any campus operating under the charter has been   assigned the lowest performance rating under Subchapter C, Chapter   39, for the three preceding school years and such a campus has not   been closed.          SECTION 6.  Section 12.115, Education Code, is amended by   amending Subsection (c) and adding Subsection (c-1) to read as   follows:          (c)  The commissioner shall revoke the charter of an   open-enrollment charter school if:                (1)  the charter holder has been assigned an overall   performance rating of D and is subject to commissioner action under   Section 39A.117(b), or is otherwise assigned an unacceptable   performance rating under Subchapter C, Chapter 39, for the three   preceding school years;                (2)  the charter holder has been assigned a financial   accountability performance rating under Subchapter D, Chapter 39,   indicating financial performance lower than satisfactory for the   three preceding school years; or                (3)  the charter holder has been assigned any   combination of the ratings described by Subdivision (1) or (2) for   the three preceding school years.          (c-1)  The commissioner shall include an overall needs   improvement performance rating designated as a D rating as an   unacceptable performance rating under Subsection (c)(1) and as   provided by Section 39A.117(a).  Section 39A.117(c) does not apply   to a determination under this section and an overall D rating that   does not satisfy Section 39A.117(a) constitutes an unacceptable   performance.          SECTION 7.  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   performance rating under Section 39.054 reflects a [at least   acceptable] performance rating of C or higher.          SECTION 8.  Sections 12A.008(a) and (c), Education Code, are   amended to read as follows:          (a)  The commissioner may terminate a district's designation   as a district of innovation if the district receives for two   consecutive school years:                (1)  an overall performance rating of D and is subject   to action under Section 39A.117(b) or is otherwise assigned an   unacceptable academic performance rating under Section 39.054;                (2)  an unacceptable financial accountability rating   under Section 39.082; or                (3)  any combination of one or more D ratings or [an]   unacceptable ratings under Subdivision (1) and one or more   unacceptable ratings under Subdivision (2) [academic performance   rating under Section 39.054 for one of the school years and an   unacceptable financial accountability rating under Section 39.082   for the other school year].          (c)  The commissioner shall terminate a district's   designation as a district of innovation if the district receives   for three consecutive school years:                (1)  an overall performance rating of D and is subject   to action under Section 39A.117(b) or is otherwise assigned an   unacceptable [academic] performance rating under Section 39.054;                (2)  an unacceptable financial accountability rating   under Section 39.082; or                (3)  any combination of one or more D ratings or   unacceptable ratings under Subdivision (1) and one or more   unacceptable ratings under Subdivision (2).          SECTION 9.  Section 13.054, Education Code, is amended by   adding Subsection (a-1) to read as follows:          (a-1)  The commissioner shall incorporate an overall D   rating as an unacceptable performance rating for purposes of   Subsection (a), in accordance with Section 39A.117(a), except that   the commissioner may apply Section 39A.117(c) if the overall D   rating meets the requirements of Section 39A.117(a). An overall D   rating that does not satisfy Section 39A.117(a) shall constitute   unacceptable performance for purposes of Subsection (a).          SECTION 10.  Section 21.453(b), Education Code, is amended   to read as follows:          (b)  The commissioner may allocate funds from the account to   regional education service centers to provide staff development   resources to school districts that:                (1)  are rated academically unacceptable or are   assigned an overall needs improvement rating and are subject to   commissioner action under Section 39A.117(b);                (2)  have one or more campuses rated as academically   unacceptable or are assigned an overall needs improvement rating   and are subject to commissioner action under Section 39A.117(b); or                (3)  are otherwise in need of assistance as indicated   by the academic performance of students, as determined by the   commissioner.          SECTION 11.  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 overall   performance rating of D and is subject to commissioner action under   Section 39A.117(b) or is otherwise 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); and                (2)  the school progress domain under Section   39.053(c)(2).          SECTION 12.  Section 30A.101(a), Education Code, is amended   to read as follows:          (a)  A school district or open-enrollment charter school is   eligible to act as a course provider under this chapter only if the   district or school has received an overall performance rating of C   or higher [is rated acceptable] under Section 39.054. An   open-enrollment charter school may serve as a course provider only:                (1)  to a student within its service area; or                (2)  to another student in the state:                      (A)  through an agreement with the school district   in which the student resides; or                      (B)  if the student receives educational services   under the supervision of a juvenile probation department, the Texas   Juvenile Justice Department, or the Texas Department of Criminal   Justice, through an agreement with the applicable agency.          SECTION 13.  Section 39.052, Education Code, is amended by   adding Subsection (b-1) to read as follows:          (b-1)  The commissioner shall incorporate an overall   performance rating of D as an unacceptable performance rating under   Subsection (b)(1)(A) in accordance with Section 39A.117(b).          SECTION 14.  Section 39.201(b), Education Code, is amended   to read as follows:          (b)  A district or campus may not be awarded a distinction   designation under this subchapter unless the district or campus is   assigned an overall performance rating of C or higher [has   acceptable performance] under Section 39.054.          SECTION 15.  Section 39.306(a), Education Code, is amended   to read as follows:          (a)  Each board of trustees shall publish an annual report   describing the educational performance of the district and of each   campus in the district that includes uniform student performance   and descriptive information as determined under rules adopted by   the commissioner.  The annual report must also include:                (1)  campus performance objectives established under   Section 11.253 and the progress of each campus toward those   objectives, which shall be available to the public;                (2)  information indicating the district's   accreditation status and identifying each district campus awarded a   distinction designation under Subchapter G or each district campus   that has received an overall performance rating of D or is otherwise   considered an unacceptable campus under Chapter 39A;                (3)  the district's current special education   compliance status with the agency;                (4)  a statement of the number, rate, and type of   violent or criminal incidents that occurred on each district   campus, to the extent permitted under the Family Educational Rights   and Privacy Act of 1974 (20 U.S.C. Section 1232g);                (5)  information concerning school violence prevention   and violence intervention policies and procedures that the district   is using to protect students;                (6)  the findings that result from evaluations   conducted under the Safe and Drug-Free Schools and Communities Act   of 1994 (20 U.S.C. Section 7101 et seq.);                (7)  information received under Section 51.403(e) for   each high school campus in the district, presented in a form   determined by the commissioner; and                (8)  the progress of the district and each campus in the   district toward meeting the goals set in the district's:                      (A)  early childhood literacy and mathematics   proficiency plans adopted under Section 11.185; and                      (B)  college, career, and military readiness   plans adopted under Section 11.186.          SECTION 16.  Section 39.333, Education Code, is amended to   read as follows:          Sec. 39.333.  REGIONAL AND DISTRICT LEVEL REPORT. As part of   the comprehensive biennial report under Section 39.332, the agency   shall submit a regional and district level report covering the   preceding two school years and containing:                (1)  a summary of school district compliance with the   student/teacher ratios and class-size limitations prescribed by   Sections 25.111 and 25.112, including:                      (A)  the number of campuses and classes at each   campus granted an exception from Section 25.112; and                      (B)  for each campus granted an exception from   Section 25.112, a statement of whether the campus has been awarded a   distinction designation under Subchapter G or has been assigned an   overall campus performance rating of D or has otherwise been   identified as an unacceptable campus under Chapter 39A;                (2)  a summary of the exemptions and waivers granted to   campuses and school districts under Section 7.056 or 39.232 and a   review of the effectiveness of each campus or district following   deregulation;                (3)  an evaluation of the performance of the system of   regional education service centers based on the indicators adopted   under Section 8.101 and client satisfaction with services provided   under Subchapter B, Chapter 8;                (4)  an evaluation of accelerated instruction programs   offered under Section 28.006, including an assessment of the   quality of such programs and the performance of students enrolled   in such programs; and                (5)  the number of classes at each campus that are   currently being taught by individuals who are not certified in the   content areas of their respective classes.          SECTION 17.  Section 39.361, Education Code, is amended to   read as follows:          Sec. 39.361.  NOTICE IN STUDENT GRADE REPORT. The first   written notice of a student's performance that a school district   gives during a school year as required by Section 28.022(a)(2) must   include:                (1)  a statement of whether the campus at which the   student is enrolled has been awarded a distinction designation   under Subchapter G or has been assigned an overall performance   rating of D or has otherwise been identified as an unacceptable   campus under Chapter 39A; and                (2)  an explanation of the significance of the   information provided under Subdivision (1).          SECTION 18.  Section 39A.001, Education Code, is amended to   read as follows:          Sec. 39A.001.  GROUNDS FOR COMMISSIONER ACTION. (a) The   commissioner shall take any of the actions authorized by this   subchapter to the extent the commissioner determines necessary if:                (1)  a school district does not satisfy:                      (A)  the accreditation criteria under Section   39.052;                      (B)  the academic performance standards under   Section 39.053 or 39.054; or                      (C)  any financial accountability standard as   determined by commissioner rule; or                (2)  the commissioner considers the action to be   appropriate on the basis of a special accreditation investigation   under Section 39.057.          (b)  The commissioner shall consider an overall performance   rating of D as an unacceptable performance rating for purposes of   Subsection (a)(2), in accordance with Section 39A.117.          SECTION 19.  Section 39A.004, Education Code, is amended to   read as follows:          Sec. 39A.004.  APPOINTMENT OF BOARD OF MANAGERS. (a) The   commissioner may appoint a board of managers to exercise the powers   and duties of a school district's board of trustees if the district   is subject to commissioner action under Section 39A.001 and:                (1)  has a current accreditation status of   accredited-warned or accredited-probation;                (2)  fails to satisfy any standard under Section   39.054(e); or                (3)  fails to satisfy financial accountability   standards as determined by commissioner rule.          (b)  The commissioner shall consider an overall performance   rating of D as an unacceptable performance rating for purposes of   Subsection (a)(2), in accordance with Section 39A.117.          SECTION 20.  Section 39A.005, Education Code, is amended by   adding Subsection (a-1) to read as follows:          (a-1)  The commissioner shall consider an overall   performance rating of D as an unacceptable performance rating for   purposes of Subsection (a)(2), in accordance with Section 39A.117.          SECTION 21.  Section 39A.051, Education Code, is amended by   adding Subsection (a-1) to read as follows:          (a-1)  The commissioner shall consider an overall   performance rating of D as an unacceptable performance rating for   purposes of Subsection (a), in accordance with Section 39A.117.          SECTION 22.  Section 39A.0545, Education Code, is   transferred to Subchapter C, Chapter 39A, Education Code,   redesignated as Section 39A.117, Education Code, and amended to   read as follows:          Sec. 39A.117 [39A.0545].  NEEDS IMPROVEMENT RATING. (a)   Notwithstanding any other law, if a school district or campus is   assigned an overall [or domain] performance rating of D and in the   previous school year the district or campus received an overall   rating of C or higher:                (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 rating may not be included in calculating   consecutive school years of unacceptable performance and is not   considered a break in consecutive school years of unacceptable   performance [interventions and sanctions provided by this chapter   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 title   [chapter] based on failure to satisfy performance standards under   Section 39.054(e) apply to a district or campus assigned an overall   performance rating of D, except as otherwise provided by   Subsections (a) and (c) [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)  The commissioner is not required to take action under   Section 39.052(c)(2) or 39A.111, if [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).          (c-1)  For a district or campus described by Subsection (c),   the commissioner may [shall] implement any other interventions and   sanctions under this title, including closure and the appointment   of a board of managers, and [that apply to an unacceptable campus   and those] interventions and sanctions previously implemented by   the commissioner shall continue.  An action taken by the   commissioner under this subsection does not affect the   determination of a district's or campus's consecutive school years   of unacceptable performance [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 23.  This Act applies beginning with the 2021-2022   school year.          SECTION 24.  In determining consecutive years of the overall   performance rating of a school district or campus, a performance   rating of a D or F issued before this Act takes effect applies to the   determination of consecutive years of overall performance rating.          SECTION 25.  This Act takes effect September 1, 2021.