HBA-JRA H.B. 1130 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1130 By: Longoria Public Education 4/7/1999 Introduced BACKGROUND AND PURPOSE Currently, the Texas Education Agency and the commissioner of education are responsible for monitoring the performance of public schools. H.B. 1130 establishes the Educational Testing and Accountability Department (ETAD) in the office of the Comptroller of Public Accounts to oversee public school system accountability. Specifically, this bill transfers the responsibility for administering the Public Education Information Management System and the responsibility for creating, implementing, and scoring the TAAS test from the Texas Education Agency to the new department, and establishes an inspection process to monitor compliance with education programs. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority previously delegated to the State Board of Education is transferred to the Education Testing and Accountability Department in the office of the Comptroller of Public Accounts in SECTIONS 25, 32, and 37 (Sections 39.022, 39.032, and 39.072, Education Code) and that rulemaking authority previously delegated to the commissioner of education is transferred to the Education Testing and Accountability Department in the office of the Comptroller of Public Accounts in SECTION 35 (Section 39.052, Education Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 5.001, Education Code, to add definitions of "department" and "executive director." Redesignates existing Subdivisions (4)-(7) to Subdivisions (5) and (7)-(9), respectively. SECTION 2. Amends Section 7.003, Education Code, to reserve and require any educational functions that are not specifically delegated to the Comptroller of Public Accounts (comptroller), the Texas Education Agency (TEA) or the State Board of Education (board), rather than only TEA or the board, to be performed by school districts or open-enrollment charter schools. SECTION 3. Amends Section 7.021(b)(1), Education Code, to require TEA to work with the comptroller in monitoring compliance with education programs required by federal or state law, including federal funding and state funding for those programs. SECTION 4. Amends Chapter 7, Education Code, by adding Subchapter E, as follows: SUBCHAPTER E. EDUCATION TESTING AND ACCOUNTABILITY DEPARTMENT Sec. 7.151. EDUCATION TESTING AND ACCOUNTABILITY DEPARTMENT POWERS AND DUTIES; COMPOSITION. Establishes that the Education Testing and Accountability Department (ETAD) has the powers and duties to perform duties in connection with public school system accountability under this code and review and revise the Public Education Information Management System (PEIMS) in accordance with Section 42.006 (Public Education Information Management System (PEIMS)), Education Code. Requires ETAD to carry out these duties with the advice and consent of the comptroller. Establishes that the comptroller and ETAD staff comprise ETAD. Sec. 7.152. EXECUTIVE DIRECTOR. Requires the comptroller to appoint an executive director of ETAD who is required to report directly to the comptroller. Sec. 7.153. INSPECTION TEAMS. (a) Requires the executive director to appoint fourperson teams to visit school districts or individual schools to monitor compliance with education programs. (b) Specifies the personnel to be included on inspection teams. (c) Requires the auditor from each team to serve as team chief and authorized representative of the executive director. Provides that the auditor must make a period available to hear complaints under Sections 7.154 and 26.011 (Complaints), Education Code, during each visit to a school district or individual school. Authorizes the executive director to hear complaints that are not resolved at the local level. Sec. 7.154. APPEALS. (a) Authorizes a person to appeal in writing to the executive director, except as provided by Subsection (e), if the person is harmed by the school laws of this state; an action or decision of any school district board of trustees that violates the school laws of this state or a provision of a written employment contract between the school district and its employee, if a violation causes or would cause monetary harm to the employee; or by an action or decision of the commissioner of education (commissioner) or agency. (b) Requires the executive director, except as provided by Subsection (c), to hold a hearing and issue a decision without cost to the parties involved after due notice to the interested parties. Provides that, in conducting hearings, the executive director has the same authority relating to discovery and conduct of a hearing as a hearing examiner has under Subchapter F, Chapter 21 (Hearings Before Hearing Examiners), Education Code. Provides that this section does not deprive any party of any legal remedy. (c) Requires the executive director to issue a decision based on a review of the record developed at the district level, under a substantial evidence standard of review, in an appeal against a school district. (d) Authorizes a person harmed by a decision of the executive director to appeal to a district court in Travis County by serving the executive director with citation issued and served in the manner provided by law for civil suits. Provides that the petition must state the action of decision from which the appeal is taken. Requires the court to determine all issues of law and fact. (e) Provides that this section does not apply to a case applicable under Subchapter G, Chapter 21 (Appeals to Commissioner of Education), Education Code, or a student disciplinary action under Chapter 37 (Discipline; Law and Order), Education Code,. (f) Defines "record" and "school laws of this state" for this section. Sec. 7.155. ARBITRATION. Requires the executive director or a representative designated by the executive director to act as an arbitrator under Sections 7.154 and 26.011. SECTION 5. Amends Section 8.002, Education Code, to require regional education centers to provide personnel to augment an ETAD inspection team as requested by the comptroller. Makes conforming changes. SECTION 6. Amends Section 11.201(d), Education Code, to specify that the personnel for whom a superintendent assumes administrative authority and assignment and evaluation responsibilities includes personnel used to augment an ETAD inspection team as requested by the comptroller. SECTION 7. Amends Section 11.252(b), Education Code, to provide that the district must make the plan for the improvement of student performance available to TEA or ETAD on request. SECTION 8. Amends Section 11.253(g), Education Code, to make a conforming change. SECTION 9. Amends Section 12.013(b), Education Code, to make conforming changes. SECTION 10. Amends Section 12.056(b), Education Code, to make conforming changes. SECTION 11. Amends Section 12.104(b), Education Code, to make conforming changes. SECTION 12. Amends Section 13.051(j), Education Code, to make conforming changes. SECTION 13. Amends Section 19.010(b), Education Code, to include ETAD among the entities with which the district is required to file an annual report documenting district activities under the strategic plan. SECTION 14. Amends Section 26.003(b), Education Code, to allow a decision of the board of trustees of a school district (board of trustees) concerning a request described by Subsection (a)(2) or (3) to be appealed to the executive director or a representative designated by the executive director. Requires the executive director or representative to act as arbitrator in the dispute. Authorizes a parent to appeal the decision of the arbitrator to a district court. SECTION 15. Amends Section 26.005, Education Code, to entitle a parent to review a copy of each state assessment instrument administered under Section 39.023 (Adoption and Administration of Instruments), Education Code, to the parent's child in the presence of an assessment administrator. Makes changes conforming to SECTION 50, which repeals Section 39.023(e). SECTION 16. Amends Section 26.011, Education Code, to provide that, in addition to adopting a grievance procedure to address complaints concerning violation of a right guaranteed by this chapter, the board of trustees must attempt to resolve disputes locally and that the executive director or a designated representative of the executive director must act as an arbitrator if disputes cannot be resolved locally. Authorizes a party to the dispute to appeal an arbitration decision to a district court. SECTION 17. Amends Section 29.001, Education Code, to require ETAD , rather than TEA, to develop procedures to ensure compliance with the statewide plan for the delivery of services to children with disabilities on a local level. Makes conforming changes. SECTION 18. Amends Section 29.011(e), Education Code, to delete the provisions that only the failure to implement those components of a student's individual transition plan (ITP) that are included in the individual education program (IEP) are subject to the due process procedures of the Individuals with Disabilities Education Act (20 U.S.C. Section 1400 et seq.) (IDEA) or to TEA complaint procedures and that failure of a district to develop and annually review an ITP for a student is subject only to TEA complaint procedures and not to the due process procedures of IDEA. Requires the district to notify an agency in writing if it fails to implement components of the ITP that are designated as the responsibility of that agency under the memorandum of understanding coordinating services. Requires the district to terminate the memorandum of understanding and seek another source for implementation of the components of the ITP if the other agency does not correct the deficiency in a reasonable period of time. SECTION 19. Amends Section 29.056, Education Code, by adding Subsection (i), to prohibit a district from offering a bilingual education or special language program to a student for more than three years unless the district obtains a waiver from the commissioner. Establishes that an excessive number of waiver requests by a district, as determined by the commissioner, is grounds for a special inspection by an ETAD team under Section 7.153. SECTION 20. Amends Section 29.064, Education Code, to authorize a parent of a student enrolled in a school district offering bilingual education or special language programs to appeal to the executive director or a representative designated by the executive director, rather than the commissioner, if the district fails to comply with the requirements established by law or by TEA as authorized by this subchapter. Authorizes a parent to appeal the placement of a student in the program to an ETAD inspection team chief, rather than the board of trustees. Requires appeals to be conducted in accordance with procedures adopted by the comptroller, rather than the commissioner. SECTION 21. Amends Section 29.083, Education Code, to require ETAD to provide TEA with the results of the student retention data. Makes a conforming change. SECTION 22. Amends Section 29.186(c), Education Code, to make changes conforming to SECTION 50 which repeals Section 39.023(b), Education Code. SECTION 23. Amends Sections 37.006(i) and (j), Education Code, to make conforming changes. SECTION 24. Amends Section 37.009(f), Education Code, to establish that the decision of the executive director or designated representative is binding on both parties, except that the decision may be appealed by a trial de novo to a district court of the county in which the school district's central administrative office is located. Makes conforming changes. SECTION 25. Amends Section 39.022, Education Code, to transfer rulemaking authority to create and implement a state-wide assessment program from the board to ETAD. Makes conforming changes. SECTION 26. Amends Sections 39.023(a), (c), (d), (g), and (h), Education Code, to require all nonexempt students to be assessed in reading and mathematics annually in grades three through nine, rather than eight. Makes a change conforming to SECTION 50 which repeals 39.023(b), Education Code. Deletes language relating to allowable modifications for a student in a special education program. Makes conforming changes. SECTION 27. Amends Subchapter B, Chapter 39, Education Code, by adding Section 39.0235, as follows: Sec. 39.0235. STUDENT PREPARATION FOR ASSESSMENT INSTRUMENTS. Prohibits a school from preparing students for an assessment instrument by using previous versions of the assessment instrument or instructing students on the format of a statewide assessment instrument earlier than one week before the test date. Authorizes the commissioner to withhold up to $1,000 from state funding under Chapter 42 (Foundation School Program), Education Code, for each classroom per day for a violation of this section. Requires the district to remit to the comptroller an amount equal to the penalty for deposit in the foundation school fund, if the district does not receive state funding under Chapter 42. SECTION 28. Amends Section 39.024, Education Code, to make changes conforming to SECTION 50 which repeals Section 39.023(b), Education Code. Requires TEA to develop study guides to assist students in achieving the goals of Section 4.002 (Public Education Academic Goals), Education Code, rather than for the assessment instruments administered under Sections 39.023(a) and (c). SECTION 29. Amends Section 39.026, Education Code, to make conforming changes. SECTION 30. Amends Section 39.027, Education Code, to provide that a student is considered to have failed the instrument for purposes of school performance rankings and evaluation if the student is exempted under certain conditions from the administration of an assessment instrument. Requires the executive director to develop and adopt a process for reviewing the exemption process of a school district or shared services arrangement that gives an exemption for a student eligible for a special education program and whose IEP does not include instruction in the essential knowledge and skills under Section 28.002 (Required Curriculum), Education Code, at any grade level to more than five percent of the students in the special education program or to students that have spent more than three years in a bilingual education program for students with limited English proficiency. Deletes language relating to the average daily attendance of the district or shared services arrangement. Makes conforming changes. SECTION 31. Amends Section 39.030(a), Education Code, to make conforming changes. SECTION 32. Amends Section 39.032(b), (c), (d), and (e), Education Code, to transfer rulemaking authority relating to standards for grading assessment instruments from the board to ETAD. Makes conforming changes. SECTION 33. Amends Section 39.033(a), (b), and (c), Education Code, to make conforming changes. SECTION 34. Amends Section 39.051(a), (b), (c), (d), and (e), Education Code, to make conforming changes. SECTION 35. Amends Section 39.052(a) and (c), Education Code, to transfer rulemaking authority relating to the dissemination of student performance portions of campus report cards to parents from the commissioner to ETAD. Makes conforming changes. SECTION 36. Amends Section 39.053(b), (c), and (d), Education Code, to provide that the annual educational performance report must, rather than may, include specific information, including turnover rate. Makes conforming changes. SECTION 37. Amends Section 39.072, Education Code, to transfer rulemaking authority relating to the evaluation of school districts from the board to ETAD. Makes conforming changes. SECTION 38. Amends Section 39.073(a) and (d), Education Code, to make conforming changes. SECTION 39. Amends Sections 39.074(a), (b), (c), (d), and (e), Education Code, to authorize ETAD to conduct an on-site evaluation of a campus with an annual review that indicates unusually high performance, as well as low performance, on one or more of the quality of learning indicators. Makes conforming changes. SECTION 40. Amends Section 39.075, Education Code, to require the comptroller, rather than the commissioner, to authorize special accreditation investigations when, among other things, extraordinary numbers of student placements in alternative education programs are determined. Deletes exception of alternative education programs under Sections 37.006 (Removal for Certain Conduct), Education Code, and 37.007 (Expulsion for Serious Offenses), Education Code,. Makes conforming changes. SECTION 41. Amends Section 39.076, Education Code, to make conforming changes. SECTION 42. Amends Section 39.131, Education Code, to make conforming changes. SECTION 43. Amends heading to Subchapter H, Chapter 39, Education Code, as follows: SUBCHAPTER H. REPORTS BY TEXAS EDUCATION AGENCY AND EDUCATION TESTING AND ACCOUNTABILITY DEPARTMENT SECTION 44. Amends Section 39.181(a) and (d), Education Code, to make conforming changes. SECTION 45. Amends Section 39.182, Education Code, as follows: Sec. 39.182. New title: COMPREHENSIVE BIENNIAL REPORTS. Deletes "report" from existing title. Requires TEA and ETAD to prepare and deliver separate reports to the governor, the lieutenant governor, the speaker of the house of representatives, each member of the legislature, the Legislative Budget Board, and the clerks of the standing committees of the senate and house of representatives with primary jurisdiction over the public school system. Provides that the TEA report must include a description of a systematic plan for reducing the projected dropout rates. Deletes language relating to a specific goal of a dropout rate of five percent or less for the 1997-1998 school year. Deletes Subsection (b) authorizing TEA to separately aggregate the performance data of students enrolled in a special education, bilingual education, or special language program. Redesignates existing Subsection (c) to Subsection (b). Makes conforming changes. SECTION 46. Amends Section 39.183, Education Code, to make a conforming change. SECTION 47. Amends Section 41.013(a), Education Code, to authorize a decision of the commissioner under this chapter to be appealed, except as provided by Subchapter G (Detachment and Annexation by Commissioner), to a district court in Travis County by serving the commissioner with citation issued and served in the manner provided by law for civil suits. Provides that the petition must state the action of decision from which the appeal is taken. Requires the court to determine all issues of law and fact. Makes a conforming change. SECTION 48. Amends Section 42.006(b) and (c), Education Code, to make conforming changes. SECTION 49. Amends Section 42.151, Education Code, by amending Subsection (j) and adding Subsection (m), as follows: (j) Requires ETAD to review a school district that maintains more than five percent of the district's students in resource room or mainstream instructional arrangements, rather than a ratio of full-time equivalent students in partially or totally self-contained classrooms to the number of full-time equivalent students placed in resource room or mainstream instructional arrangements that is 25 percent higher than the statewide average ratio, for two successive years to determine the appropriateness of student placement. Makes conforming changes. (m) Requires the comptroller to establish procedures for the inspection of school districts by ETAD to ensure that the admission, review, and dismissal committees for special education students use equitable and consistent policies in developing IEPs and ITPs and in granting exemptions from the administration of assessment instruments under Section 39.027. SECTION 50. Repealer: Section 7.057 (Appeals); 33.081(g), relating to an appeal to the commissioner regarding a student's eligibility to participate in extracurricular activities; 39.023(b), (e), (i), and (k), relating to assessment instruments for students in special education programs and the release of questions and answer keys; 39.030(c), relating to separately aggregated performance data for students in special education, bilingual education, or special language programs; 39.031 (Cost); 39.051(f), relating to the results of assessment instruments required under Section 39.023(b); and 39.112 (Excellence Exemptions), Education Code. SECTION 51. (a) Effective date: September 1, 1999. (b) Establishes that ETAD is created on September 1, 1999. (c) Provides that as soon as practicable after the comptroller appoints an executive director of ETAD , but not later than April 1, 2000, all powers, duties, rights, and obligations of the commissioner of education and agency relating to public school system accountability, as added and amended by this Act, are transferred to the comptroller and ETAD; all assets, liabilities, personnel, equipment, data, documents, facilities, and other items relating to public school system accountability are transferred from TEA to ETAD, except as provided by Subsection (d) of this section; and any appropriation to the commissioner of education or TEA related to public school system accountability is transferred to ETAD. (d) Authorizes the commissioner of education to decide whether to transfer personnel and assets utilized for both purposes related to public school system accountability and purposes not related to public school system accountability to ETAD. (e) Requires the officers and employees of the office of the commissioner of education and TEA to cooperate fully with the reorganization. (f) Requires the transfer of functions under Subsection (c) of this section to occur on the date specified in an interagency contract among the commissioner of education, TEA, the comptroller, and ETAD. (g) Provides that the commissioner and TEA retain all power and duties relating to public school system accountability until the effective date of transfer. (h) Authorizes ETAD, the executive director or acting executive director, or other employees of ETAD to use the Austin office of TEA and to pay lawful expenses related to public school system accountability from appropriations subject to the transfer prior to transfer of functions. (i) Makes application of this Act prospective. SECTION 52. Emergency clause.