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A BILL TO BE ENTITLED
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AN ACT
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relating to dropout rates in public schools. | 
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       BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | 
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       SECTION 1.  Sections 39.051(d) and (e), Education Code, are   | 
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amended to read as follows: | 
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       (d)  Annually, the commissioner shall define exemplary,  | 
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recognized, and unacceptable performance for each academic  | 
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excellence indicator included under Subsections (b)(1) through (7)  | 
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and shall project the standards for each of those levels of  | 
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performance for succeeding years.  For the indicator under  | 
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Subsection (b)(8), the commissioner shall define exemplary,  | 
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recognized, and unacceptable performance based on student  | 
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performance for the period covering both the current and preceding  | 
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academic years.  In defining exemplary, recognized, and  | 
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unacceptable performance for the indicators under Subsections  | 
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(b)(2) and (4), the commissioner: | 
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             (1)  shall define a student who has obtained a high  | 
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school equivalency certificate or who is attending a course of  | 
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instruction to prepare for the high school equivalency examination  | 
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as a dropout; and | 
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             (2)  may not consider as a dropout or as a student who  | 
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has failed to attend school a student whose failure to attend school  | 
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results from[:
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             [(1)the student's expulsion under Section 37.007; and
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             [(2)as applicable:
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                   [(A)  adjudication as having engaged in 
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delinquent conduct or conduct indicating a need for supervision, as 
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defined by Section 51.03, Family Code; or
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                   [(B)]  conviction of and sentencing for an offense  | 
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under the Penal Code. | 
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       (e)  Each school district shall cooperate with the agency in  | 
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determining whether a student is considered a dropout under this  | 
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section.  The agency shall require that a school district provide at  | 
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least the following documentation regarding a student who dies or  | 
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who leaves school but is not considered a dropout under this  | 
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section: | 
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             (1)  for a student who dies, a death certificate; | 
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             (2)  for a student who transfers to another school in  | 
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this country: | 
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                   (A)  a statement signed by the student's parent or  | 
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guardian confirming that the student has enrolled or will enroll  | 
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promptly in another school; and | 
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                   (B)  a transcript or other written evidence of  | 
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enrollment from the other school in which the student enrolled; | 
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             (3)  for a student who leaves school to reside in  | 
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another country, a statement signed by the student's parent or  | 
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guardian confirming that the student will reside in the other  | 
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country; and | 
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             (4)  for a student who leaves school to attend a home  | 
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school, a statement signed by the student's parent or guardian  | 
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confirming that the student is being educated at home in accordance  | 
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with applicable law. | 
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       SECTION 2.  Subchapter C, Chapter 39, Education Code, is  | 
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amended by adding Section 39.0511 to read as follows: | 
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       Sec. 39.0511.  FOUR-YEAR ADJUSTED COHORT HIGH SCHOOL  | 
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GRADUATION RATE FORMULA.  (a)  In this section, "high school  | 
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diploma" does not include a high school equivalency certificate  | 
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(GED) or a certificate of coursework completion issued under  | 
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Section 28.025. | 
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       (b)  For purposes of Section 39.051, the high school  | 
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graduation rate is computed by applying the four-year adjusted  | 
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cohort formula as follows: | 
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Graduation rate = G/(A + B - C) | 
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where: | 
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       "G" is the number of students in a school year who graduate  | 
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with a high school diploma not later than the conclusion of the  | 
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fourth year of enrollment in high school, including any enrollment  | 
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period available to senior students during the summer following the  | 
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fourth regular school year; | 
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       "A" is the number of students who entered the ninth grade at  | 
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the beginning of the first year of the four-year enrollment period  | 
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described in "G"; | 
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       "B" is the number of students who subsequently enroll at the  | 
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same grade level as the students described by "A"; and | 
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       "C" is the number of students in the group of students  | 
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described by "A" and "B" who die or transfer to another school,  | 
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school district, or educational program that grants a high school  | 
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diploma, provided that each student's death or actual enrollment in  | 
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the subsequent school, school district, or educational program is  | 
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documented in accordance with Section 39.051(e). | 
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       SECTION 3.  Section 39.053(a), Education Code, is amended to  | 
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read as follows: | 
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       (a)  Each board of trustees shall publish an annual report  | 
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describing the educational performance of the district and of each  | 
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campus in the district that includes uniform student performance  | 
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and descriptive information as determined under rules adopted by  | 
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the commissioner.  The annual report must also include: | 
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             (1)  campus performance objectives established under   | 
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Section 11.253 and the progress of each campus toward those  | 
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objectives, which shall be available to the public; | 
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             (2)  the performance rating for the district as  | 
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provided under Section 39.072(a) and the performance rating of each  | 
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campus in the district as provided under Section 39.072(c); | 
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             (3)  the district's current special education  | 
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compliance status with the agency; | 
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             (4)  a statement of the number, rate, and type of  | 
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violent or criminal incidents that occurred on each district  | 
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campus, to the extent permitted under the Family Educational Rights  | 
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and Privacy Act of 1974 (20 U.S.C. Section 1232g); | 
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             (5)  information concerning school violence prevention  | 
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and violence intervention policies and procedures that the district  | 
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is using to protect students; [and] | 
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             (6)  the findings that result from evaluations  | 
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conducted under the Safe and Drug-Free Schools and Communities Act  | 
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of 1994 (20 U.S.C. Section 7101 et seq.) and its subsequent  | 
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amendments; [and] | 
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             (7)  information received under Section 51.403(e) for  | 
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each high school campus in the district, presented in a form  | 
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determined by the commissioner; and | 
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             (8)  dropout rates for each high school in the  | 
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district. | 
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       SECTION 4.  Section 39.055, Education Code, is amended by  | 
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adding Subsection (b) to read as follows: | 
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       (b)  The electronic audit system required by Subsection (a)  | 
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must have the capacity to identify irregularities in a district's  | 
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dropout records, including irregularities based on an excessive  | 
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number of students identified by the district as leaving school for  | 
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a specified reason.  Notwithstanding any other provision of this  | 
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section, the agency shall conduct on-site monitoring of a school  | 
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district's dropout records if the electronic auditing system  | 
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identifies an irregularity under this subsection. | 
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       SECTION 5.  This Act applies beginning with the 2007-2008  | 
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school year. | 
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       SECTION 6.  This Act takes effect immediately if it receives  | 
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a vote of two-thirds of all the members elected to each house, as  | 
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provided by Section 39, Article III, Texas Constitution.  If this  | 
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Act does not receive the vote necessary for immediate effect, this  | 
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Act takes effect September 1, 2007. |