89R10309 KJE-D     By: Buckley H.B. No. 5232       A BILL TO BE ENTITLED   AN ACT   relating to a pilot program for outcomes-based contracts at public   schools.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subchapter Z, Chapter 29, Education Code, is   amended by adding Section 29.913 to read as follows:          Sec. 29.913.  OUTCOMES-BASED CONTRACTS PILOT PROGRAM.  (a)     The agency shall establish a pilot program through which school   districts and open-enrollment charter schools, in contracting for a   good or service related to student outcomes, use a funding model   that ties compensation to measurable student outcomes, including   academic performance, graduation rates, and skill proficiency.          (b)  The agency shall select at least five school districts   and open-enrollment charter schools to participate in the pilot   program.          (c)  To be eligible to participate in the pilot program, a   school district or open-enrollment charter school must agree to   enter into a contract for a good or service related to student   outcomes that:                (1)  requires the contracting entity to:                      (A)  meet clearly defined outcome targets related   to increased student achievement; and                      (B)  use best practices;                (2)  includes specific, quantifiable performance   metrics used to assess the effectiveness of the good or service in   making progress toward outcome targets described by Subdivision   (1)(A);                (3)  provides for a funding structure that includes   incentives for meeting or exceeding outcome targets described by   Subdivision (1)(A); and                (4)  allows flexibility in the implementation of   educational strategies tailored to the unique needs of each student   served.          (d)  From money appropriated or otherwise available for the   purpose, the agency shall award grants to school districts and   open-enrollment charter schools participating in the pilot   program.  The amount of each grant must be correlated to the   achievement of outcome targets described by Subsection (c)(1)(A) in   each contract entered into under the pilot program.          (e)  Not later than December 1, 2028, the agency shall submit   to the legislature a report on the results of the pilot program.     The report must include the agency's recommendation on whether the   pilot program should be expanded or continued on a statewide basis.          (f)  The commissioner may adopt rules as necessary to   implement the pilot program.          (g)  This section expires September 1, 2029.          SECTION 2.  As soon as practicable but not later than six   months after the effective date of this Act, the Texas Education   Agency shall establish the pilot program required under Section   29.913, Education Code, as added by this Act.          SECTION 3.  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, 2025.