84R27201 E
	By: Dutton, Schaefer, Riddle,	H.B. No. 1536
	King of Hemphill, Huberty, et al.
	Substitute the following for H.B. No. 1536:
	By:  Aycock	C.S.H.B. No. 1536

	A BILL TO BE ENTITLED
	AN ACT
	relating to state interventions and sanctions against public school
	campuses with unacceptable performance and the establishment of the
	Texas Opportunity School District.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Chapter 11, Education Code, is amended by adding
	Subchapter I to read as follows:
	SUBCHAPTER I. TEXAS OPPORTUNITY SCHOOL DISTRICT
	Sec. 11.401.  TEXAS OPPORTUNITY SCHOOL DISTRICT
	ESTABLISHED.  (a)  The Texas Opportunity School District is
	established as a school district under this code and an
	intermediate educational unit under 34 C.F.R. Section 222.50 for
	the purpose of educating students attending a campus placed in the
	jurisdiction of the opportunity school district under Chapter 39.
	(b)  In this subchapter, "prior system" means the
	independent school district from which a campus is transferred to
	the jurisdiction of the opportunity school district.
	(b-1)  Notwithstanding any other provision of law, only a
	campus of an independent school district with 24 or more elementary
	campuses may be transferred to the jurisdiction of the opportunity
	school district.
	(c)  The commissioner shall select the superintendent of the
	opportunity school district.  The superintendent shall report to
	the commissioner under a written contract for services.
	(d)  The opportunity school district does not have authority
	to impose taxes but has authority to seek and expend federal funding
	and grant funding and to otherwise seek, obtain, and expend funding
	with the same authority as an independent school district.
	(e)  Subject to the requirements of this subchapter and
	Section 39.1071, the opportunity school district may provide for
	the supervision, management, and operation of each campus placed in
	the opportunity school district's jurisdiction and receive,
	control, and expend the local, state, and federal funding
	attributable to that campus, with all the same power and authority
	as the prior system and with any other power or authority otherwise
	granted by law.
	(f)  The opportunity school district is entitled to the same
	level of services provided to other school districts by regional
	education service centers, and to participate in any state program
	available to school districts, including a purchasing program.
	(g)  The opportunity school district may employ such staff as
	the superintendent deems necessary.
	Sec. 11.402.  APPLICABILITY OF LAWS, RULES, AND ORDINANCES
	TO OPPORTUNITY SCHOOL DISTRICT.  (a)  Except as expressly provided
	by law, the opportunity school district is subject to federal and
	state laws and rules and municipal zoning ordinances governing
	school districts.
	(b)  Except as expressly provided by other law, the
	opportunity school district is subject to a provision of this title
	to the extent and in the manner that the provision applies to an
	open-enrollment charter school under Subchapter D, Chapter 12.
	(c)  The commissioner shall consider the performance of a
	campus under the jurisdiction of the opportunity school district
	for purposes of determining the prior system's performance rating
	under Section 39.054.
	(d)  Any requirement of Chapter 551 or 552, Government Code,
	or other law concerning open meetings requirements or public
	information requirements applies to the opportunity school
	district and the superintendent and students of the opportunity
	school district to the same extent those requirements apply to any
	other school district and the board of trustees and students of the
	other school district.
	(e)  The opportunity school district is not a
	special-purpose school district described by Subchapter H.
	Sec. 11.403.  IMMUNITY.  The opportunity school district is
	immune from liability to the same extent as any other school
	district, and the opportunity school district's employees and
	volunteers are immune from liability to the same extent as other
	school district employees and volunteers.
	Sec. 11.404.  MEMBERSHIP IN TEACHER RETIREMENT SYSTEM OF
	TEXAS BY OPPORTUNITY SCHOOL DISTRICT EMPLOYEES.  (a) An employee of
	the opportunity school district who qualifies for membership in the
	Teacher Retirement System of Texas is covered under the system to
	the same extent a qualified employee of any other school district is
	covered.
	(b)  For each employee of the opportunity school district
	covered under the system, the opportunity school district is
	responsible for making any contribution that otherwise would be
	the legal responsibility of the prior system, and the state is
	responsible for making contributions to the same extent it would be
	legally responsible if the employee were that of another school
	district.
	Sec. 11.405.  FUNDING OF STUDENTS ENROLLED IN OPPORTUNITY
	SCHOOL DISTRICT.  (a)  Each school year the opportunity school
	district is entitled to receive for the education of each student
	transferred to the opportunity school district funding under
	Chapter 42 in an amount equal to the amount of state and local
	funding per student in weighted average daily attendance, including
	enrichment funding under Section 42.302, to which the prior system
	would be entitled under Chapter 42 for that school year.
	(b)  The opportunity school district is entitled to funds
	that are available to other school districts from the agency or the
	commissioner in the form of grants or other discretionary funding.
	The opportunity school district is entitled to a pro rata share of
	all revenue provided to the prior system from the agency or the
	commissioner in the form of grants or other discretionary funding.
	(c)  The opportunity school district is entitled to share in
	the available school fund apportionment and other privileges in the
	same manner as the prior system.  The opportunity school district
	shall report its student attendance and receive funding in the same
	manner as any other district.
	(d)  For purposes of calculating for the prior system
	obligations under Chapter 41 and entitlements under Chapter 42,
	students transferred to the opportunity school district who would
	otherwise have attended the prior system are not included in
	calculating the average daily attendance of the prior system.
	(e)  For purposes of calculating for the prior system
	allotments under Chapter 46, students transferred to the
	opportunity school district who would otherwise have attended the
	prior system are included in calculating the average daily
	attendance of the prior system.
	(f)  The commissioner shall adopt rules necessary to
	implement this section.
	Sec. 11.406.  FACILITIES SUPPORT FOR STUDENTS ENROLLED IN
	OPPORTUNITY SCHOOL DISTRICT.  (a)  The opportunity school district
	is entitled to use any school building and any other facility or
	property otherwise part of a campus placed in the opportunity
	school district that was recognized as part of the facilities or
	property of the campus before the campus was placed in the
	opportunity school district. The opportunity school district is
	also entitled to access to any additional facilities that are
	typically available to the campus, its students, and faculty and
	staff before the campus was placed in the opportunity school
	district. The opportunity school district's use of a school
	building, facility, or property may not be restricted, except that
	the opportunity school district is responsible for and obligated to
	provide for routine maintenance and repair necessary to ensure that
	the school building, facility, or property is maintained in as good
	an order as when the right of use was acquired by the opportunity
	school district.
	(b)  If a dispute arises between the opportunity school
	district and the prior system regarding the maintenance and repair
	required under this section, the commissioner or the commissioner's
	designee shall determine each entity's responsibilities concerning
	the maintenance and repair.
	Sec. 11.407.  OTHER SUPPORT FOR STUDENTS ENROLLED IN
	OPPORTUNITY SCHOOL DISTRICT.  (a)  The opportunity school district
	may require the prior system to provide school support or student
	support services for a campus transferred from the prior system's
	jurisdiction, including:
	(1)  school food service;
	(2)  transportation of:
	(A)  students who attend the campus placed in the
	opportunity school district; and
	(B)  students who reside in the assigned
	attendance zone of the campus placed in the opportunity school
	district but who attend a different campus in the prior system; and
	(3)  student assessment services to determine special
	education eligibility that are compliant with all applicable laws
	and regulations.
	(b)  The opportunity school district shall reimburse the
	prior system in an amount equal to the actual cost of the services
	described in Subsection (a) to the prior system.  If a dispute
	arises between the opportunity school district and the prior system
	regarding the actual cost of services, the commissioner or the
	commissioner's designee shall determine the cost to be reimbursed.
	Sec. 11.408.  EXPENDITURES FOR SUPPORT OF STUDENTS ENROLLED
	IN OPPORTUNITY SCHOOL DISTRICT. Funds received by the opportunity
	school district under Section 11.405 must be used for the operation
	and administration of campuses placed in the opportunity school
	district.
	Sec. 11.409.  OPPORTUNITY DISTRICT CHARTER.  (a)  The
	opportunity school district may grant a district charter under
	Section 12.0522 to a campus that has been placed in the opportunity
	school district.
	(b)  The grant of a district charter by the opportunity
	school district is not subject to the limitation imposed by Section
	12.0522(b).
	(c)  A campus granted a district charter under this section
	is eligible for funding under Section 11.405. Any administrative
	costs related to authorizing a district charter under this section
	may be paid from funds appropriated to the opportunity school
	district, as approved by the superintendent of the opportunity
	school district.
	SECTION 2.  Section 39.106(f), Education Code, is amended to
	read as follows:
	(f)  Notwithstanding any other provision of this subchapter,
	if the commissioner determines that a campus for which an
	intervention is ordered under Subsection (a) is not fully
	implementing the campus intervention team's recommendations or
	targeted improvement plan or updated plan, the commissioner may
	order the reconstitution of the campus as provided by Section
	39.107 or, subject to Section 11.401(b-1), the placement of the
	campus in the opportunity school district established by Subchapter
	I, Chapter 11.
	SECTION 3.  The heading to Section 39.107, Education Code,
	is amended to read as follows:
	Sec. 39.107.  RECONSTITUTION, REPURPOSING, ALTERNATIVE
	MANAGEMENT, PLACEMENT IN OPPORTUNITY SCHOOL DISTRICT, AND CLOSURE.
	SECTION 4.  Section 39.107, Education Code, is amended by
	amending Subsections (a), (a-1), (c), and (e) and adding Subsection
	(a-2) to read as follows:
	(a)  After a campus has been identified as unacceptable for
	two consecutive school years, the commissioner shall determine
	whether the district or campus has instituted meaningful change for
	the campus, including reconstituting the staff or leadership at the
	campus. If the commissioner determines that the district or campus
	has instituted meaningful change for the campus, the commissioner
	may reevaluate the campus under this subsection following the
	conclusion of the subsequent school year. If the commissioner
	determines the district or campus has not instituted meaningful
	change for the campus, the superintendent of the district may
	operate the campus with the same powers and authority granted to the
	superintendent of the opportunity school district established
	under Subchapter I, Chapter 11, to operate a campus placed in the
	jurisdiction of the opportunity school district unless the
	commissioner orders one or more of the following:
	(1)  [order the] reconstitution of the campus under
	this section;
	(2)  repurposing of the campus under this section;
	(3)  alternative management of the campus under this
	section; or
	(4)  placement of the campus in the opportunity school
	district, as provided by Section 39.1071.
	(a-1)  In making a determination regarding action to be taken
	under Subsection (a), the commissioner shall consider
	recommendations from parents of students enrolled at the campus and
	members of the community who reside in the attendance zone of the
	campus.
	(a-2)  In reconstituting a campus, a campus intervention
	team shall assist the campus in:
	(1)  developing an updated targeted improvement plan;
	(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.
	(c)  A campus reconstituted under [subject to] Subsection
	(a) shall implement the updated targeted improvement plan as
	approved by the commissioner.  The commissioner may appoint a
	monitor, conservator, management team, or board of managers to the
	district to ensure and oversee district-level support to
	low-performing campuses and the implementation of the updated
	targeted improvement plan.  In making appointments under this
	subsection, the commissioner shall consider individuals who have
	demonstrated success in managing campuses with student populations
	similar to the campus at which the individual appointed will serve.
	(e)  If a campus is considered to have an unacceptable
	performance rating for three consecutive school years after an
	action is taken to reform the campus [is reconstituted] under
	Subsection (a), the commissioner, subject to Subsection [(e-1) or]
	(e-2), may only [shall] order:
	(1)  repurposing of the campus under this section;
	(2)  alternative management of the campus under this
	section; [or]
	(3)  closure of the campus; or
	(4)  placement of the campus in the opportunity school
	district as provided by Section 39.1071.
	SECTION 5.  Subchapter E, Chapter 39, Education Code, is
	amended by adding Sections 39.1071 and 39.1072 to read as follows:
	Sec. 39.1071.  PLACEMENT OF CAMPUS IN OPPORTUNITY SCHOOL
	DISTRICT.  (a) In this section, "prior system" has the meaning
	assigned by Section 11.401(b).
	(b)  As provided by Section 39.107, the commissioner,
	subject to Section 11.401(b-1), may order the placement of a campus
	of an independent school district in the opportunity school
	district established under Subchapter I, Chapter 11, except that
	the commissioner may not place a campus in the opportunity school
	district if:
	(1)  the commissioner is presented with a valid
	petition for alternative action under Section 39.107(e-2); or
	(2)  the superintendent of the opportunity school
	district advises the commissioner that placing the campus in the
	opportunity school district is not the best action to be taken at
	the campus.
	(c)  If the commissioner orders placement of a campus in the
	opportunity school district, the students assigned to attend the
	campus or the students who would have been eligible to attend the
	campus if the campus had remained in the prior system may choose to
	attend the campus under the jurisdiction of the opportunity school
	district or may exercise an option, made available by the prior
	system, to attend another campus remaining under the jurisdiction
	of the prior system.
	(d)  Only students who were eligible for enrollment at a
	campus under the prior system or who would have been eligible to
	enroll at the campus if the campus had remained in the prior system
	may attend that campus after the campus is placed in the opportunity
	school district.
	(e)  A campus placed in the opportunity school district is
	not required to accept enrollment of a student if enrolling the
	student would result in exceeding the capacity of campus
	facilities. The opportunity school district shall enroll students
	in the following order of priority:
	(1)  those students who would be eligible to attend the
	campus if the campus had remained in the prior system;
	(2)  if openings for enrollment remain after satisfying
	Subdivision (1), those students who would be eligible to attend a
	different campus in the prior system from which the campus was
	transferred; and
	(3)  if openings for enrollment remain after satisfying
	Subdivisions (1) and (2), those students who would be eligible to
	attend any other campus or school district by lottery.
	(f)  A campus placed in the opportunity school district may
	adopt a policy that provides for the exclusion or removal of a
	student enrolled at the campus:
	(1)  who does not reside in the assigned attendance
	zone of the campus; and
	(2)  who engages in or has been subjected to
	disciplinary action for conduct described by Section 37.006 or
	37.007.
	(g)  Effective on a date determined by the commissioner after
	consulting with the superintendent of the opportunity school
	district, a campus that the commissioner has decided to place in the
	opportunity school district shall be transferred from the
	jurisdiction of the school district to the jurisdiction of the
	opportunity school district. On that date, the school district from
	which the campus was transferred becomes the prior system.
	(h)  The campus shall be:
	(1)  reorganized and reformed, as determined necessary
	by the superintendent of the opportunity school district; and
	(2)  operated by the opportunity school district.
	(i)  The superintendent of the opportunity school district
	or the superintendent's designee has sole discretion to decide
	which educators may be retained at a campus placed in the
	opportunity school district. If the opportunity school district
	does not retain an educator, that educator may be assigned to
	another position by the prior system.
	(j)  For the purposes of any benefit or right requiring
	continuous service or based on years of service, the prior system
	shall consider the period during which an employee works at the
	opportunity school district to be service time with the prior
	system if the employee returns to the prior system's employment.
	(k)  The benefits and privileges of any person employed at a
	campus by the opportunity school district who was not employed by
	the prior system at the time the campus was placed in the
	opportunity school district shall be determined in compliance with
	applicable law by the opportunity school district at the time of the
	employment.
	(l)  The opportunity school district shall retain
	jurisdiction over any campus placed in the opportunity school
	district until the commissioner returns the campus to the prior
	system in accordance with Section 39.1072.
	(m)  On request, the commissioner and the superintendent of
	the opportunity school district shall provide information
	concerning the new operations and performance of a campus to the
	prior system.
	(n)  A campus operated by the opportunity school district may
	change its name only on agreement of the prior system and the
	opportunity school district.
	(o)  The commissioner may adopt rules necessary to implement
	this section.
	Sec. 39.1072.  RETURN OF CAMPUS TO PRIOR SYSTEM. (a) In
	this section, "prior system" has the meaning assigned by Section
	11.401(b).
	(b)  The superintendent of the opportunity school district
	established under Subchapter I, Chapter 11, or the superintendent's
	designee may develop a transition plan for returning a campus
	placed in the opportunity school district to the prior system at any
	time after the campus has achieved an acceptable or higher
	performance rating. The superintendent or the superintendent's
	designee shall develop a transition plan for returning a campus
	placed in the opportunity school district to the prior system if:
	(1)  the campus has been identified as acceptable or
	higher for three consecutive school years; or
	(2)  the commissioner orders the superintendent to
	develop a transition plan.
	(c)  The superintendent or the superintendent's designee
	shall develop a transition plan for returning a campus placed in the
	opportunity school district to the prior system during the eighth
	consecutive school year that the campus has operated under the
	jurisdiction of the opportunity school district.
	(d)  The superintendent or the superintendent's designee
	must consider the input of parents and other affected stakeholders
	in developing a transition plan under Subsection (b) or (c). The
	transition plan must include:
	(1)  details for the operation of the campus by the
	prior system, including provisions for the continuation of the
	programs that have provided the basis for improved academic
	performance by the students, including any charter granted under
	Section 11.409;
	(2)  provisions for the employment status of all
	persons employed by the opportunity school district who were not
	employed by the prior system at the time the campus was placed in
	the opportunity school district; and
	(3)  provisions for the means and timetable for the
	campus's transition and return to the prior system.
	(e)  The commissioner may order the return of a campus to the
	prior system in accordance with the transition plan developed under
	Subsection (b) on the recommendation of the opportunity school
	district superintendent.
	(f)  The commissioner shall order the return of a campus to
	the prior system not later than the campus's eighth consecutive
	school year under the jurisdiction of the opportunity school
	district. The commissioner may order the return of the campus to
	the prior system under this subsection in accordance with the
	transition plan developed under Subsection (c) or may order the
	return of the campus in accordance with an improvement plan
	submitted by the board of trustees of the prior system.
	(g)  On request, the commissioner and the superintendent of
	the opportunity school district shall provide information
	concerning the operations and performance of a campus to the prior
	system.
	(h)  The commissioner may adopt rules necessary to implement
	this section.
	SECTION 6.  Section 39.108, Education Code, is amended to
	read as follows:
	Sec. 39.108.  ANNUAL REVIEW. (a) The commissioner shall
	review annually the performance of a district or campus subject to
	this subchapter to determine the appropriate actions to be
	implemented under this subchapter. The commissioner must review at
	least annually the performance of a district for which the
	accreditation status or rating has been lowered due to insufficient
	student performance and may not raise the accreditation status or
	rating until the district has demonstrated improved student
	performance. If the review reveals a lack of improvement, the
	commissioner shall increase the level of state intervention and
	sanction unless the commissioner finds good cause for maintaining
	the current status.
	(b)  The review required by Subsection (a) shall form the
	basis of the reporting required by Section 39.332(b)(25).
	SECTION 7.  Section 39.332(b), Education Code, is amended by
	adding Subdivision (25) to read as follows:
	(25)  The report must contain a listing and description
	of the status of each campus under the jurisdiction of the
	opportunity school district and a summary of the reforms
	implemented and progress of the campus.
	SECTION 8.  Sections 39.107(d) and (e-1), Education Code,
	are repealed.
	SECTION 9.  This Act applies beginning with the 2015-2016
	school year.
	SECTION 10.  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.