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