H.B. No. 1842

	AN ACT
	relating to public school accountability, including the
	intervention in and sanction of a public school that has received an
	academically unsuccessful performance rating for at least two
	consecutive school years and the designation of a school district
	as a district of innovation.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Section 7.028(a), Education Code, is amended to
	read as follows:
	(a)  Except as provided by Section 29.001(5), 29.010(a),
	[39.056,] or 39.057, the agency may monitor compliance with
	requirements applicable to a process or program provided by a
	school district, campus, program, or school granted charters under
	Chapter 12, including the process described by Subchapter F,
	Chapter 11, or a program described by Subchapter B, C, D, E, F, H, or
	I, Chapter 29, Subchapter A, Chapter 37, or Section 38.003, and the
	use of funds provided for such a program under Subchapter C, Chapter
	42, only as necessary to ensure:
	(1)  compliance with federal law and regulations;
	(2)  financial accountability, including compliance
	with grant requirements; and
	(3)  data integrity for purposes of:
	(A)  the Public Education Information Management
	System (PEIMS); and
	(B)  accountability under Chapter 39.
	SECTION 2.  Subchapter C, Chapter 11, Education Code, is
	amended by adding Section 11.0511 to read as follows:
	Sec. 11.0511.  STUDENT TRUSTEE FOR CERTAIN DISTRICTS. (a)
	This section applies only to a school district described by Section
	11.065(a) in which a school in the district is operating under a
	campus turnaround plan.
	(b)  Notwithstanding Section 11.051(b), the board of
	trustees of a school district may adopt a resolution establishing
	as a nonvoting member a student trustee position as provided by this
	section.
	(c)  For a student trustee position under this section, the
	board shall adopt a policy that establishes:
	(1)  the term of the student trustee position;
	(2)  the procedures for selecting a student trustee,
	including the method for filling a vacancy; and
	(3)  the procedures for removal of a student trustee.
	(d)  A student is eligible to serve as a student trustee if
	the student is enrolled in the student's junior or senior year of
	high school and is considered in good standing academically and
	under the district code of conduct.
	(e)  The board shall adopt a policy regarding student
	trustee:
	(1)  participation, other than voting, in board
	deliberations, subject to Subsection (f); and
	(2)  access to information, documents, and records,
	consistent with the Family Educational Rights and Privacy Act of
	1974 (20 U.S.C. Section 1232g).
	(f)  A student trustee may not participate in a closed
	session of a board meeting in which any issue related to a personnel
	matter is considered.
	(g)  A student trustee is not entitled to receive
	compensation or reimbursement of the student trustee's expenses for
	services on the board.
	(h)  A school district may grant to a student who fulfills
	the requirements of service of a student trustee not more than one
	academic course credit in a subject area determined appropriate by
	the district.
	SECTION 3.  (a) Section 12.101(b-4), Education Code, is
	amended to read as follows:
	(b-4)  Notwithstanding Section 12.114, approval of the
	commissioner under that section is not required for establishment
	of a new open-enrollment charter school campus if the requirements
	of this subsection[, including the absence of commissioner
	disapproval under Subdivision (3),] are satisfied. A charter
	holder having an accreditation status of accredited and at least 50
	percent of its student population in grades assessed under
	Subchapter B, Chapter 39, or at least 50 percent of the students in
	the grades assessed having been enrolled in the school for at least
	three school years may establish one or more new campuses under an
	existing charter held by the charter holder if:
	(1)  the charter holder is currently evaluated under
	the standard accountability procedures for evaluation under
	Chapter 39 and received a district rating in the highest or second
	highest performance rating category under Subchapter C, Chapter 39,
	for three of the last five years with at least 75 percent of the
	campuses rated under the charter also receiving a rating in the
	highest or second highest performance rating category and with no
	campus with a rating in the lowest performance rating category in
	the most recent ratings;
	(2)  the charter holder provides written notice to the
	commissioner of the establishment of any campus under this
	subsection in the time, manner, and form provided by rule of the
	commissioner; and
	(3)  not later than the 60th day after the date the
	charter holder provides written notice under Subdivision (2), the
	commissioner does not provide written notice to the charter holder
	that the commissioner has determined that the charter holder does
	not satisfy the requirements of this section [of disapproval of a
	new campus under this section].
	(b)  The heading to Section 12.116, Education Code, is
	amended to read as follows:
	Sec. 12.116.  PROCEDURE FOR REVOCATION, [OR] MODIFICATION OF
	GOVERNANCE, OR DENIAL OF RENEWAL.
	(c)  Section 12.116, Education Code, is amended by amending
	Subsection (a) and adding Subsection (a-1) to read as follows:
	(a)  The commissioner shall adopt an informal procedure to be
	used for:
	(1)  revoking the charter of an open-enrollment charter
	school or for reconstituting the governing body of the charter
	holder as authorized by Section 12.115; and
	(2)  denying the renewal of a charter of an
	open-enrollment charter school as authorized by Section
	12.1141(c).
	(a-1)  The procedure adopted under Subsection (a) for the
	denial of renewal of a charter under Section 12.1141(c) or the
	revocation of a charter or reconstitution of a governing body of a
	charter holder under Section 12.115(a) must allow representatives
	of the charter holder to meet with the commissioner to discuss the
	commissioner's decision and must allow the charter holder to submit
	additional information to the commissioner relating to the
	commissioner's decision. In a final decision issued by the
	commissioner, the commissioner shall provide a written response to
	any information the charter holder submits under this subsection.
	(d)  This section applies beginning with the 2015-2016
	school year.
	SECTION 4.  Subtitle C, Title 2, Education Code, is amended
	by adding Chapter 12A to read as follows:
	CHAPTER 12A.  DISTRICTS OF INNOVATION
	Sec. 12A.001.  AUTHORIZATION. (a)  Subject to Subsection
	(b), a school district may be designated as a district of innovation
	in accordance with this chapter.
	(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 at least
	acceptable performance.
	(c)  Consideration of designation as a district of
	innovation may be initiated by:
	(1)  a resolution adopted by the board of trustees of
	the district; or
	(2)  a petition signed by a majority of the members of
	the district-level committee established under Section 11.251.
	Sec. 12A.002.  PUBLIC HEARING. (a)  Promptly after adopting
	a resolution under Section 12A.001(c)(1) or receiving a petition
	under Section 12A.001(c)(2), the board of trustees shall hold a
	public hearing to consider whether the district should develop a
	local innovation plan for the designation of the district as a
	district of innovation.
	(b)  At the conclusion of the public hearing or as soon as
	possible after conclusion of the public hearing, the board of
	trustees may:
	(1)  decline to pursue designation of the district as a
	district of innovation; or
	(2)  appoint a committee to develop a local innovation
	plan in accordance with Section 12A.003.
	Sec. 12A.003.  LOCAL INNOVATION PLAN. (a)  A local
	innovation plan must be developed for a school district before the
	district may be designated as a district of innovation.
	(b)  A local innovation plan must:
	(1)  provide for a comprehensive educational program
	for the district, which program may include:
	(A)  innovative curriculum, instructional
	methods, and provisions regarding community participation, campus
	governance, and parental involvement;
	(B)  modifications to the school day or year;
	(C)  provisions regarding the district budget and
	sustainable program funding;
	(D)  accountability and assessment measures that
	exceed the requirements of state and federal law; and
	(E)  any other innovations prescribed by the board
	of trustees; and
	(2)  identify requirements imposed by this code that
	inhibit the goals of the plan and from which the district should be
	exempted on adoption of the plan, subject to Section 12A.004.
	Sec. 12A.004.  LIMITATION OF PERMISSIBLE EXEMPTIONS. (a)  A
	local innovation plan may not provide for the exemption of a
	district designated as a district of innovation from the following
	provisions of this title:
	(1)  a state or federal requirement applicable to an
	open-enrollment charter school operating under Subchapter D,
	Chapter 12;
	(2)  Subchapters A, C, D, and E, Chapter 11, except that
	a district may be exempt from Sections 11.1511(b)(5) and (14) and
	Section 11.162;
	(3)  state curriculum and graduation requirements
	adopted under Chapter 28; and
	(4)  academic and financial accountability and
	sanctions under Chapter 39.
	(b)  The commissioner shall:
	(1)  maintain a list of provisions of this title from
	which school districts designated as districts of innovation are
	exempt under this chapter; and
	(2)  notify the legislature of each provision from
	which districts enrolling a majority of students in this state are
	exempt.
	Sec. 12A.005.  ADOPTION OF LOCAL INNOVATION PLAN;
	COMMISSIONER APPROVAL. (a)  The board of trustees may not vote on
	adoption of a proposed local innovation plan unless:
	(1)  the final version of the proposed plan has been
	available on the district's Internet website for at least 30 days;
	(2)  the board of trustees has notified the
	commissioner of the board's intention to vote on adoption of the
	proposed plan; and
	(3)  the district-level committee established under
	Section 11.251 has held a public meeting to consider the final
	version of the proposed plan and has approved the plan by a majority
	vote of the committee members, provided that the meeting required
	by this subdivision may occur immediately before and on the same
	date as the meeting at which the board intends to vote on adoption
	of the proposed plan.
	(b)  A board of trustees may adopt a proposed local
	innovation plan by an affirmative vote of two-thirds of the
	membership of the board.
	(c)  On adoption of a local innovation plan, the district:
	(1)  is designated as a district of innovation under
	this chapter for the term specified in the plan, subject to Section
	12A.006;
	(2)  shall begin operation in accordance with the plan;
	and
	(3)  is exempt from state requirements identified under
	Section 12A.003(b)(2).
	(d)  A district's exemption described by Subsection (c)(3)
	includes any subsequent amendment or redesignation of an identified
	state requirement, unless the subsequent amendment or
	redesignation specifically applies to a district of innovation.
	Sec. 12A.006.  TERM. The term of a district's designation as
	a district of innovation may not exceed five years.
	Sec. 12A.007.  AMENDMENT, RESCISSION, OR RENEWAL OF LOCAL
	INNOVATION PLAN. A local innovation plan may be amended,
	rescinded, or renewed if the action is approved by a vote of the
	district-level committee established under Section 11.251, or a
	comparable committee if the district is exempt from that section,
	and the board of trustees in the same manner as required for initial
	adoption of a local innovation plan under Section 12A.005.
	Sec. 12A.008.  TERMINATION BY COMMISSIONER. (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 unacceptable academic performance rating under
	Section 39.054;
	(2)  an unacceptable financial accountability rating
	under Section 39.082; or
	(3)  an unacceptable 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.
	(b)  Instead of terminating a district's designation as
	authorized by Subsection (a), the commissioner may permit the
	district to amend the district's local innovation plan to address
	concerns specified by the commissioner.
	(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 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 unacceptable
	ratings under Subdivision (1) and one or more unacceptable ratings
	under Subdivision (2).
	(d)  A decision by the commissioner under this section is
	final and may not be appealed.
	Sec. 12A.009.  COMMISSIONER RULEMAKING. The commissioner
	may adopt rules to implement this chapter.
	SECTION 5.  Section 29.315, Education Code, is amended to
	read as follows:
	Sec. 29.315.  TEXAS SCHOOL FOR THE DEAF MEMORANDUM OF
	UNDERSTANDING. The Texas Education Agency and the Texas School for
	the Deaf shall develop, agree to, and by commissioner rule adopt no
	later than September 1, 1998, a memorandum of understanding to
	establish:
	(1)  the method for developing and reevaluating a set
	of indicators of the quality of learning at the Texas School for the
	Deaf;
	(2)  the process for the agency to conduct and report on
	an annual evaluation of the school's performance on the indicators;
	(3)  the requirements for the school's board to
	publish, discuss, and disseminate an annual report describing the
	educational performance of the school;
	(4)  the process for the agency to assign an
	accreditation status to the school, to reevaluate the status on an
	annual basis, and, if necessary, to conduct monitoring reviews
	[make on-site accreditation investigations]; and
	(5)  the type of information the school shall be
	required to provide through the Public Education Information
	Management System (PEIMS).
	SECTION 6.  Section 30.005, Education Code, is amended to
	read as follows:
	Sec. 30.005.  TEXAS SCHOOL FOR THE BLIND AND VISUALLY
	IMPAIRED MEMORANDUM OF UNDERSTANDING. The Texas Education Agency
	and the Texas School for the Blind and Visually Impaired shall
	develop, agree to, and by commissioner rule adopt a memorandum of
	understanding to establish:
	(1)  the method for developing and reevaluating a set
	of indicators of the quality of learning at the Texas School for the
	Blind and Visually Impaired;
	(2)  the process for the agency to conduct and report on
	an annual evaluation of the school's performance on the indicators;
	(3)  the requirements for the school's board to
	publish, discuss, and disseminate an annual report describing the
	educational performance of the school;
	(4)  the process for the agency to:
	(A)  assign an accreditation status to the school;
	(B)  reevaluate the status on an annual basis; and
	(C)  if necessary, conduct monitoring reviews
	[make on-site accreditation investigations]; and
	(5)  the type of information the school shall be
	required to provide through the Public Education Information
	Management System (PEIMS).
	SECTION 7.  Section 39.056, Education Code, is amended to
	read as follows:
	Sec. 39.056.  MONITORING REVIEWS [ON-SITE INVESTIGATIONS].
	(a) The commissioner may[:
	[(1)]  direct the agency to conduct monitoring reviews
	and random on-site visits [investigations] of a school district at
	any time as authorized by Section 7.028 [to answer any questions
	concerning a program, including special education, required by
	federal law or for which the district receives federal funds; and
	[(2)     as a result of the investigation, change the
	accreditation status of a district, change the accountability
	rating of a district or campus, or withdraw a distinction
	designation under Subchapter G].
	(b)  The commissioner shall determine the frequency of
	monitoring reviews [on-site investigations] by the agency
	according to:
	(1)  annual comprehensive analyses of student
	performance and equity in relation to the student achievement
	indicators adopted under Section 39.053;
	(2)  reviews of fiscal reports and other fiscal data as
	set forth in Section 44.010; or
	(3)  comprehensive analyses of financial
	accountability standards under Subchapter D.
	(c)  In conducting a monitoring review [making an on-site
	accreditation investigation], the agency may [investigators shall]
	obtain information from administrators, other district employees
	[teachers], [and] parents of students enrolled in the school
	district, and other persons as necessary.  [The investigation may
	not be closed until information is obtained from each of those
	sources.]  The commissioner [State Board of Education] shall adopt
	rules for:
	(1)  obtaining information from parents and using that
	information in the monitoring review [investigator's] report; and
	(2)  obtaining information from other district
	employees [teachers] in a manner that prevents a district or campus
	from screening the information.
	(d)  The agency shall give written notice to the
	superintendent and the board of trustees of a school district of any
	impending monitoring review [investigation of the district's
	accreditation].
	(e)  The agency [investigators] shall report [orally and] in
	writing to the superintendent and president of the board of
	trustees of the school district [and, as appropriate, to campus
	administrators] and shall make recommendations concerning any
	necessary improvements or sources of aid such as regional education
	service centers.
	(f)  A district which takes action with regard to the
	recommendations provided by the agency [investigators] as
	prescribed by Subsection (e) shall make a reasonable effort to seek
	assistance from a third party in developing an action plan to
	improve district performance using improvement techniques that are
	goal oriented and research based.
	(g)  A monitoring review may include desk reviews and on-site
	visits, including random on-site visits.
	(h)  The commissioner may at any time convert a monitoring
	review to a special accreditation investigation under Section
	39.057, provided the commissioner promptly notifies the school
	district of the conversion.
	SECTION 8.  Section 39.058, Education Code, is amended to
	read as follows:
	Sec. 39.058.  CONDUCT OF SPECIAL ACCREDITATION
	INVESTIGATIONS. (a) The agency shall adopt written procedures for
	conducting special accreditation [on-site] investigations under
	this subchapter, including procedures that allow the agency to
	obtain information from district employees in a manner that
	prevents a district or campus from screening the information.  The
	agency shall make the procedures available on the agency Internet
	website [to the complainant, the alleged violator, and the public].
	Agency staff must be trained in the procedures and must follow the
	procedures in conducting the special accreditation investigation.
	(b)  After completing a special accreditation [an]
	investigation, the agency shall present preliminary findings to any
	person or entity the agency finds has violated a law, rule, or
	policy.  Before issuing a report with its final findings, the agency
	must provide a person or entity the agency finds has violated a law,
	rule, or policy an opportunity for an informal review by the
	commissioner or a designated hearing examiner.
	SECTION 9.  Section 39.102(a), Education Code, is amended to
	read as follows:
	(a)  If a school district does not satisfy the accreditation
	criteria under Section 39.052, the academic performance standards
	under Section 39.053 or 39.054, or any financial accountability
	standard as determined by commissioner rule, or if considered
	appropriate by the commissioner on the basis of a special
	accreditation investigation under Section 39.057, the commissioner
	shall take any of the following actions to the extent the
	commissioner determines necessary:
	(1)  issue public notice of the deficiency to the board
	of trustees;
	(2)  order a hearing conducted by the board of trustees
	of the district for the purpose of notifying the public of the
	insufficient performance, the improvements in performance expected
	by the agency, and the interventions and sanctions that may be
	imposed under this section if the performance does not improve;
	(3)  order the preparation of a student achievement
	improvement plan that addresses each student achievement indicator
	under Section 39.053(c) for which the district's performance is
	insufficient, the submission of the plan to the commissioner for
	approval, and implementation of the plan;
	(4)  order a hearing to be held before the commissioner
	or the commissioner's designee at which the president of the board
	of trustees of the district and the superintendent shall appear and
	explain the district's low performance, lack of improvement, and
	plans for improvement;
	(5)  arrange a monitoring review [an on-site
	investigation] of the district;
	(6)  appoint an agency monitor to participate in and
	report to the agency on the activities of the board of trustees or
	the superintendent;
	(7)  appoint a conservator to oversee the operations of
	the district;
	(8)  appoint a management team to direct the operations
	of the district in areas of insufficient performance or require the
	district to obtain certain services under a contract with another
	person;
	(9)  if a district has a current accreditation status
	of accredited-warned or accredited-probation, fails to satisfy any
	standard under Section 39.054(e), or fails to satisfy financial
	accountability standards as determined by commissioner rule,
	appoint a board of managers to exercise the powers and duties of the
	board of trustees;
	(10)  if for two consecutive school years, including
	the current school year, a district has received an accreditation
	status of accredited-warned or accredited-probation, has failed to
	satisfy any standard under Section 39.054(e), or has failed to
	satisfy financial accountability standards as determined by
	commissioner rule, revoke the district's accreditation and:
	(A)  order closure of the district and annex the
	district to one or more adjoining districts under Section 13.054;
	or
	(B)  in the case of a home-rule school district or
	open-enrollment charter school, order closure of all programs
	operated under the district's or school's charter; or
	(11)  if a district has failed to satisfy any standard
	under Section 39.054(e) due to the district's dropout rates, impose
	sanctions designed to improve high school completion rates,
	including:
	(A)  ordering the development of a dropout
	prevention plan for approval by the commissioner;
	(B)  restructuring the district or appropriate
	school campuses to improve identification of and service to
	students who are at risk of dropping out of school, as defined by
	Section 29.081;
	(C)  ordering lower student-to-counselor ratios
	on school campuses with high dropout rates; and
	(D)  ordering the use of any other intervention
	strategy effective in reducing dropout rates, including mentor
	programs and flexible class scheduling.
	SECTION 10.  Section 39.106, Education Code, is amended by
	amending Subsection (a) and adding Subsection (a-1) to read as
	follows:
	(a)  If a campus performance is below any standard under
	Section 39.054(e), the commissioner shall assign a campus
	intervention team. A campus intervention team shall:
	(1)  conduct, with the involvement and advice of the
	school community partnership team, if applicable:
	(A)  a targeted on-site needs assessment relevant
	to an area of insufficient performance of the campus as provided by
	Subsection (b); or
	(B)  if the commissioner determines necessary, a
	comprehensive on-site needs assessment, using the procedures
	provided by Subsection (b);
	(2)  recommend appropriate actions as provided by
	Subsection (c);
	(3)  assist in the development of a targeted
	improvement plan;
	(4)  conduct a public meeting at the campus with the
	campus principal, the members of the campus-level planning and
	decision-making committee established under Section 11.251,
	parents of students attending the campus, and community members
	residing in the district to review the campus performance rating
	and solicit input for the development of the targeted improvement
	plan;
	(5)  assist the campus in submitting the targeted
	improvement plan to the board of trustees for approval and
	presenting the plan in a public hearing as provided by Subsection
	(e-1); and
	(6) [(5)]  assist the commissioner in monitoring the
	progress of the campus in implementing the targeted improvement
	plan.
	(a-1)  The campus intervention team must provide written
	notice of the public meeting required by Subsection (a)(4) to the
	parents of students attending the campus and post notice of the
	meeting on the Internet website of the campus. The notice must
	include the date, time, and place of the meeting.
	SECTION 11.  The heading to Section 39.107, Education Code,
	is amended to read as follows:
	Sec. 39.107.  CAMPUS TURNAROUND PLAN, BOARD OF MANAGERS
	[RECONSTITUTION, REPURPOSING], ALTERNATIVE MANAGEMENT, AND
	CLOSURE.
	SECTION 12.  Section 39.107, Education Code, is amended by
	amending Subsections (a), (a-1), (b), (b-1), (b-2), (d), (e),
	(e-1), (e-2), (f), and (g) and adding Subsections (a-2), (b-3),
	(b-4), (b-5), (b-6), (b-7), (b-8), (b-9), (e-4), (e-5), (e-6),
	(g-1), and (g-2) to read as follows:
	(a)  After a campus has been identified as unacceptable for
	two consecutive school years, the commissioner shall order the
	campus to prepare and submit a campus turnaround plan [the
	reconstitution of the campus]. The commissioner shall by rule
	establish procedures governing the time and manner in which the
	campus must submit the campus turnaround plan.
	(a-1)  A [In reconstituting a campus, a] campus intervention
	team shall assist the campus in:
	(1)  developing an updated targeted improvement plan,
	including a campus turnaround plan to be implemented by the campus;
	(2)  submitting the updated targeted improvement plan
	to the board of trustees of the school district for approval and
	presenting the plan in a public hearing as provided by Section
	39.106(e-1);
	(3)  obtaining approval of the updated plan from the
	commissioner; and
	(4)  executing the plan on approval by the
	commissioner.
	(a-2)  Before a campus turnaround plan is prepared and
	submitted for approval to the board of trustees of the school
	district, the district, in consultation with the campus
	intervention team, shall:
	(1)  provide notice to parents, the community, and
	stakeholders that the campus has received an academically
	unacceptable performance rating for two consecutive years and will
	be required to submit a campus turnaround plan; and
	(2)  request assistance from parents, the community,
	and stakeholders in developing the campus turnaround plan.
	(b)  The school district, in consultation with the campus
	intervention team, shall prepare the campus turnaround plan and
	allow parents, the community, and stakeholders an opportunity to
	review the plan before it is submitted for approval to the board of
	trustees of the school district. The plan must include details on
	the method for restructuring, reforming, or reconstituting the
	campus. If the district determines that granting a district
	charter under Section 12.0522 is appropriate for the campus, the
	campus turnaround plan must provide information on the
	implementation of the district charter. The plan must assist the
	campus in implementing procedures to satisfy all performance
	standards required under Section 39.054(e) [decide which educators
	may be retained at that campus.   A principal who has been employed
	by the campus in that capacity during the full period described by
	Subsection (a) may not be retained at that campus unless the campus
	intervention team determines that retention of the principal would
	be more beneficial to the student achievement and campus stability
	than removal].
	(b-1)  A campus turnaround plan must include:
	(1)  a detailed description of the academic programs to
	be offered at the campus, including instructional methods, length
	of school day and school year, academic credit and promotion
	criteria, and programs to serve special student populations;
	(2)  the term of the charter, if a district charter is
	to be granted for the campus under Section 12.0522;
	(3)  written comments from the campus-level committee
	established under Section 11.251, if applicable, parents, and
	teachers at the campus; and
	(4)  a detailed description of the budget, staffing,
	and financial resources required to implement the plan, including
	any supplemental resources to be provided by the district or other
	identified sources [A teacher of a subject assessed by an
	assessment instrument under Section 39.023 may be retained only if
	the campus intervention team determines that a pattern exists of
	significant academic improvement by students taught by the teacher.
	If an educator is not retained, the educator may be assigned to
	another position in the district].
	(b-2)  A school district may:
	(1)  request that a regional education service center
	provide assistance in the development and implementation of a
	campus turnaround plan; or
	(2)  partner with an institution of higher education to
	develop and implement a campus turnaround plan. [For each year that
	a campus is considered to have an unacceptable performance rating,
	a campus intervention team shall:
	[(1)     assist in updating the targeted improvement plan
	to identify and analyze areas of growth and areas that require
	improvement;
	[(2)  submit the updated plan to:
	[(A)     the board of trustees of the school
	district; and
	[(B)  the parents of campus students; and
	[(3)     assist in submitting the updated plan to the
	commissioner for approval.]
	(b-3)  The updated targeted improvement plan submitted to
	the board of trustees of a school district under Subsection (a-1)
	must include all plans and details that are required to execute the
	campus turnaround plan without any additional action or approval by
	the board of trustees.
	(b-4)  A campus turnaround plan developed under this section
	must take effect not later than the school year following the third
	consecutive school year that the campus has received an
	academically unacceptable performance rating.
	(b-5)  Following approval of a campus turnaround plan by the
	commissioner, the school district, in consultation with the campus
	intervention team, may take any actions needed to prepare for the
	implementation of the plan.
	(b-6)  If a campus for which a campus turnaround plan has
	been ordered under Subsection (a) receives an academically
	acceptable performance rating for the school year following the
	order, the board of trustees may:
	(1)  implement the campus turnaround plan;
	(2)  implement a modified version of the campus
	turnaround plan; or
	(3)  withdraw the campus turnaround plan.
	(b-7)  A school district required to implement a campus
	turnaround plan may modify the plan if the campus receives an
	academically acceptable performance rating for two consecutive
	school years following the implementation of the plan.
	(b-8)  Section 12.0522(b) does not apply to a district
	charter approved by the commissioner under this section. A
	district charter approved under this section may be renewed or
	continue in effect after the campus is no longer subject to an order
	under Subsection (a).
	(b-9)  The commissioner shall adopt rules governing the
	procedures for an open-enrollment charter school campus that is
	subject to an order issued under Subsection (a). An
	open-enrollment charter school must revise the school's charter in
	accordance with Section 12.114 in the campus turnaround plan.
	Nothing in this section may be construed to modify any provision of
	Subchapter D, Chapter 12, relating to the expiration, nonrenewal,
	revocation, or modification of the governance of an open-enrollment
	charter school.  The governing board of the open-enrollment charter
	school shall perform the duties of a board of trustees of a school
	district under this section.
	(d)  The commissioner may approve a campus turnaround plan
	only if the commissioner determines that the campus will satisfy
	all student performance standards required under Section 39.054(e)
	not later than the second year the campus receives a performance
	rating following the implementation of the campus turnaround plan.
	If the commissioner does not make this determination [determines
	that the campus is not fully implementing the updated targeted
	improvement plan or if the students enrolled at the campus fail to
	demonstrate substantial improvement in the areas targeted by the
	updated plan], the commissioner shall [may] order:
	(1)  appointment of a board of managers to govern the
	district as provided by Section 39.112(b) [repurposing of the
	campus under this section];
	(2)  alternative management of the campus under this
	section; or
	(3)  closure of the campus.
	(e)  If a campus is considered to have an unacceptable
	performance rating for three consecutive school years after the
	campus is ordered to submit a campus turnaround plan
	[reconstituted] under Subsection (a), the commissioner, subject to
	Subsection [(e-1) or] (e-2), shall order:
	(1)  appointment of a board of managers to govern the
	district as provided by Section 39.112(b) [repurposing of the
	campus under this section]; or
	(2)  [alternative management of the campus under this
	section; or
	[(3)]  closure of the campus.
	(e-1)  If the commissioner orders the closure of a campus
	under this section, that campus may be repurposed to serve students
	at that campus location only if the commissioner finds that the
	repurposed campus offers a distinctly different academic program
	and serves a majority of grade levels at the repurposed campus not
	served at the original campus and approves a new campus
	identification number for the campus. The majority of students
	assigned to a campus that has been closed and repurposed may not
	have attended that campus in the previous school year. Any student
	assigned to a campus that has been closed must be allowed to
	transfer to any other campus in the district that serves that
	student's grade level and on request must be provided
	transportation to the other campus.  The commissioner may grant an
	exemption allowing students assigned to a closed campus to attend
	the repurposed campus if there is no other campus in the district at
	which the students may enroll [The commissioner may waive the
	requirement to enter an order under Subsection (e) for not more than
	one school year if the commissioner determines that, on the basis of
	significant improvement in student performance over the preceding
	two school years, the campus is likely to be assigned an acceptable
	performance rating for the following school year].
	(e-2)  For purposes of this subsection, "parent" has the
	meaning assigned by Section 12.051. If the commissioner is
	presented, in the time and manner specified by commissioner rule, a
	written petition signed by the parents of a majority of the students
	enrolled at a campus to which Subsection (e) applies, specifying
	the action described by Subsection (e)(1) or [,] (2)[, or (3)] that
	the parents request the commissioner to order, the commissioner
	shall, except as otherwise authorized by this subsection, order the
	specific action requested. If the board of trustees of the school
	district in which the campus is located presents to the
	commissioner, in the time and manner specified by commissioner
	rule, a written request that the commissioner order specific action
	authorized under Subsection (e) other than the specific action
	requested in the parents' petition and a written explanation of the
	basis for the board's request, the commissioner may order the
	action requested by the board of trustees.
	(e-4)  A board of managers appointed by the commissioner
	under this section is required to take appropriate actions to
	resolve the conditions that caused a campus to be subject to an
	order under Subsection (a), including amending the district's
	budget, reassigning staff, or relocating academic programs.
	(e-5)  The commissioner may authorize payment of a board of
	managers appointed under this section from agency funds.
	(e-6)  The commissioner may at any time replace a member of a
	board of managers appointed under this section.
	(f)  Notwithstanding Section 39.112(e), the commissioner may
	remove a board of managers appointed to govern a district under this
	section only if the campus that was the basis for the appointment of
	the board of managers receives an academically acceptable
	performance rating for two consecutive school years. If a campus
	that was the basis for the appointment of a board of managers
	receives an academically unacceptable performance rating for two
	additional consecutive years following the appointment of the board
	of managers, the commissioner may remove the board of managers and,
	in consultation with the local community, may appoint a new board of
	managers to govern the district. [If the commissioner orders
	repurposing of a campus, the school district shall develop a
	comprehensive plan for repurposing the campus and submit the plan
	to the board of trustees for approval, using the procedures
	described by Section 39.106(e-1), and to the commissioner for
	approval. The plan must include a description of a rigorous and
	relevant academic program for the campus. The plan may include
	various instructional models. The commissioner may not approve the
	repurposing of a campus unless:
	[(1)     all students in the assigned attendance zone of
	the campus in the school year immediately preceding the repurposing
	of the campus are provided with the opportunity to enroll in and are
	provided transportation on request to another campus, unless the
	commissioner grants an exception because there is no other campus
	in the district in which the students may enroll;
	[(2)     the principal is not retained at the campus,
	unless the commissioner determines that students enrolled at the
	campus have demonstrated significant academic improvement; and
	[(3)     teachers employed at the campus in the school
	year immediately preceding the repurposing of the campus are not
	retained at the campus, unless the commissioner or the
	commissioner's designee grants an exception, at the request of a
	school district, for:
	[(A)     a teacher who provides instruction in a
	subject other than a subject for which an assessment instrument is
	administered under Section 39.023(a) or (c) who demonstrates to the
	commissioner satisfactory performance; or
	[(B)     a teacher who provides instruction in a
	subject for which an assessment instrument is administered under
	Section 39.023(a) or (c) if the district demonstrates that the
	students of the teacher demonstrated satisfactory performance or
	improved academic growth on that assessment instrument.]
	(g)  Following the removal of a board of managers under
	Subsection (f), or at the request of a managing entity appointed
	under Subsection (d) to oversee the implementation of alternative
	management, the commissioner may appoint a conservator or monitor
	for the district to ensure district-level support for
	low-performing campuses and to oversee the implementation of the
	updated targeted improvement plan [If an educator is not retained
	under Subsection (f), the educator may be assigned to another
	position in the district].
	(g-1)  If the commissioner orders alternative management of
	a campus under Subsection (d)(2), the school district shall execute
	a contract with a managing entity for a term not to exceed five
	years.  The commissioner may require a district to extend the term
	of the contract if the commissioner determines that extending the
	contract on expiration of the initial term is in the best interest
	of the students attending the campus. The terms of the contract must
	be approved by the commissioner.  If a campus receives an
	academically unacceptable performance rating for two consecutive
	school years after the managing entity assumes management of the
	campus, the commissioner shall cancel the contract with the
	managing entity.
	(g-2)  Subject to Subsection (e), at the end of the contract
	term with a managing entity or the cancellation of a contract with a
	managing entity under Subsection (g-1), the board of trustees of
	the school district shall resume management of the campus.
	SECTION 13.  Subchapter E, Chapter 39, Education Code, is
	amended by adding Section 39.1071 to read as follows:
	Sec. 39.1071.  TRANSITIONAL INTERVENTIONS AND SANCTIONS.
	(a) For a campus that received an academically unacceptable
	performance rating for the 2013-2014, 2014-2015, and 2015-2016
	school years, the commissioner may apply the interventions and
	sanctions authorized by this chapter as this chapter existed on
	January 1, 2015, to the campus.
	(b)  If a campus described under Subsection (a) receives an
	academically unacceptable performance rating for the 2016-2017 and
	2017-2018 school years, the commissioner shall apply the
	interventions and sanctions authorized by Section 39.107(e) to the
	campus.
	(c)  For a campus that received an academically acceptable
	performance rating for the 2013-2014 school year and an
	academically unacceptable performance rating for the 2014-2015 and
	2015-2016 school years, the commissioner shall apply the
	interventions and sanctions authorized by Section 39.107(a) to the
	campus.
	(d)  If a campus described under Subsection (c) receives an
	academically unacceptable performance rating for the 2016-2017,
	2017-2018, and 2018-2019 school years, the commissioner shall apply
	the interventions and sanctions authorized by Section 39.107(e) to
	the campus.
	(e)  The commissioner may adopt rules as necessary to
	implement this section.
	(f)  This section expires September 1, 2020.
	SECTION 14.  Section 39.112, Education Code, is amended by
	adding Subsections (d-1), (d-2), and (g) and amending Subsection
	(e) to read as follows:
	(d-1)  The board of managers appointed by the commissioner
	must, if possible, include community leaders, business
	representatives who have expertise in leadership, and individuals
	who have knowledge or expertise in the field of education.
	(d-2)  The commissioner must provide each individual
	appointed to a board of managers with training in effective
	leadership strategies.
	(e)  A board of managers shall, during the period of the
	appointment, order the election of members of the board of trustees
	of the district in accordance with applicable provisions of law.
	Except as provided by this subsection, the members of the board of
	trustees do not assume any powers or duties after the election until
	the appointment of the board of managers expires. Not [At the
	direction of the commissioner but not] later than the second
	anniversary of the date the board of managers of a district was
	appointed, the commissioner shall notify the board of managers and
	the board of trustees of the date on which the appointment of the
	board of managers will expire [shall order an election of members
	of the district board of trustees.   The election must be held on a
	uniform election date on which an election of district trustees may
	be held under Section 41.001, Election Code, that is at least 180
	days after the date the election was ordered].  Following each of
	the last three years of the period of the appointment, one-third of
	the members of the board of managers shall be replaced by the number
	of members of the school district board of trustees who were elected
	at an election ordered under this subsection that constitutes, as
	closely as possible, one-third of the membership of the board of
	trustees. On the expiration of the appointment of the board of
	managers [qualification of members for office], the board of
	trustees assumes all of the powers and duties assigned to a board of
	trustees by law, rule, or regulation.
	(g)  Following the expiration of the period of appointment of
	a board of managers for a district, the commissioner shall provide
	training in effective leadership strategies to the board of
	trustees of the school district.
	SECTION 15.  Subchapter E, Chapter 39, Education Code, is
	amended by adding Sections 39.1121 and 39.1122 to read as follows:
	Sec. 39.1121.  APPOINTMENT OF BOARD OF MANAGERS FOR
	OPEN-ENROLLMENT CHARTER SCHOOL; SUPERINTENDENT. (a) A board of
	managers appointed for an open-enrollment charter school or a
	campus of an open-enrollment charter school under this chapter or
	Chapter 12 has the powers and duties prescribed by Section
	39.107(e-4), if applicable, and Sections 39.112(a), (b), (c), and
	(d).
	(b)  If the commissioner appoints a board of managers for an
	open-enrollment charter school or a campus of an open-enrollment
	charter school, the commissioner may also appoint a superintendent.
	(c)  Except as otherwise provided by this subsection, a board
	of managers for an open-enrollment charter school or a campus of an
	open-enrollment charter school may not serve for a period that
	exceeds the period authorized by law for a board of managers
	appointed for a school district. A board of managers appointed to
	wind up the affairs of a former open-enrollment charter school or
	campus serves until dissolved by the commissioner.
	(d)  Any person appointed by the commissioner to serve on the
	board of managers for an open-enrollment charter school or a campus
	of an open-enrollment charter school or as superintendent acts on
	behalf of the commissioner and is entitled to:
	(1)  sovereign immunity; and
	(2)  representation by the attorney general for any act
	or omission taken while acting in the person's official capacity.
	(e)  Any person appointed to serve on the board of managers
	for an open-enrollment charter school or a campus of an
	open-enrollment charter school or as superintendent serves at the
	discretion of the commissioner and may be replaced by the
	commissioner at any time.
	Sec. 39.1122.  COMPENSATION OF BOARD OF MANAGERS FOR
	OPEN-ENROLLMENT CHARTER SCHOOL AND SUPERINTENDENT. (a) The
	commissioner may authorize compensation for a member of a board of
	managers for an open-enrollment charter school or a campus of an
	open-enrollment charter school or a superintendent appointed by the
	commissioner.
	(b)  The commissioner shall establish the terms of
	compensation provided under Subsection (a).
	(c)  The commissioner shall use funds received by or due to
	the former charter holder under Section 12.106 or funds returned to
	the state from liquidation of state property held by a former
	charter holder for compensation of a member of a board of managers
	for an open-enrollment charter school or a campus of an
	open-enrollment charter school or a superintendent.
	(d)  If funds described by Subsection (c) are not available
	or the commissioner determines that the circumstances require, the
	commissioner may use available agency funds, provided that the use
	of the available funds for that purpose is not prohibited by other
	law.
	(e)  To the extent this section conflicts with Section
	39.107(e-5), this section prevails.
	SECTION 16.  Section 39.114, Education Code, is amended to
	read as follows:
	Sec. 39.114.  IMMUNITY FROM CIVIL LIABILITY. An employee,
	volunteer, or contractor acting on behalf of the commissioner under
	this subchapter, or a member of a board of managers appointed by the
	commissioner under this subchapter, is immune from civil liability
	to the same extent as a professional employee of a school district
	under Section 22.051.
	SECTION 17.  Section 39.106(f), Education Code, is repealed.
	SECTION 18.  Not later than December 1, 2018, the
	Legislative Budget Board shall publish a report evaluating the
	implementation of Section 39.107, Education Code, as amended by
	this Act, including an analysis of whether the changes in law made
	by this Act result in improvements to school performance and
	student performance. The Legislative Budget Board may contract with
	another entity for the purpose of producing the evaluation required
	by this section.
	SECTION 19.  This Act applies to the academic performance
	ratings issued to public school campuses beginning with the
	2015-2016 school year.
	SECTION 20.  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, 2015.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I certify that H.B. No. 1842 was passed by the House on May
	13, 2015, by the following vote:  Yeas 143, Nays 1, 2 present, not
	voting; that the House refused to concur in Senate amendments to
	H.B. No. 1842 on May 29, 2015, 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. 1842 on May 31, 2015, by the following vote:  Yeas 125,
	Nays 18, 2 present, not voting.
	______________________________
	Chief Clerk of the House
	I certify that H.B. No. 1842 was passed by the Senate, with
	amendments, on May 26, 2015, by the following vote:  Yeas 21, Nays
	10; 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.
	1842 on May 31, 2015, by the following vote:  Yeas 26, Nays 5.
	______________________________
	Secretary of the Senate
	APPROVED: __________________
	Date
	__________________
	Governor