2017S0453-1 03/09/17 By: Kolkhorst S.B. No. 2063 A BILL TO BE ENTITLED AN ACT relating to eligibility for designation as and to accountability for districts of innovation. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 12A.001, Education Code, is amended by amending Subsections (a) and (b) and adding Subsection (d) to read as follows: (a) Subject to Subsections [Subsection] (b) and (d), 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 and the district satisfies the eligibility standards established by the commissioner under Subsection (d). (d) The commissioner shall establish objective eligibility and performance standards in addition to those required under Subsection (b), including academic performance standards and financial accountability standards. The agency shall post the eligibility standards established under this subsection on the agency's Internet website. SECTION 2. Section 12A.003(b), Education Code, is amended to read as follows: (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; and (3) establish performance objectives for the district under the plan. SECTION 3. Sections 12A.005(a) and (c), Education Code, are amended to read as follows: (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; and (4) the commissioner has notified the board that the district satisfies all eligibility standards adopted by the commissioner. (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); and (4) shall notify the commissioner that the district has adopted a local innovation plan. SECTION 4. Sections 12A.008(a) and (c), Education Code, are amended to read as follows: (a) The commissioner may terminate a district's designation as a district of innovation if the district [receives for two consecutive school years]: (1) receives an unacceptable academic performance rating under Section 39.054; (2) receives an unacceptable financial accountability rating under Section 39.082; or (3) for two of the preceding three school years, fails to satisfy any eligibility standard established by the commissioner under Section 12A.001 [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]. (c) The commissioner shall terminate a district's designation as a district of innovation if the district receives for two of the preceding 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). SECTION 5. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2017.