There would be an anticipated economic impact for small businesses and microbusinesses that serve as approved EPPs. It is estimated that the proposed rule actions to 19 TAC Chapter 228 would affect between 1-100 small businesses and 1-100 microbusinesses (businesses with 20 or fewer employees). The projected economic impact would consist of compliance costs for EPPs to meet standards for online coursework and increase the level of support provided to EPP candidates. The estimated cost for small business and microbusiness EPPs to meet standards for online coursework is up to $7,300 per EPP over three years and it is estimated that four small business and microbusiness EPPs would begin the process of meeting these standards in FYs 2018-2019, five small business and microbusiness EPPs would begin the process of meeting these standards in FY 2020, and eight small business and microbusiness EPPs would begin the process of meeting these standards in FY 2021. If fewer small business and microbusiness EPPs seek to offer online coursework, the estimated cost will be less. If more small business and microbusiness EPPs begin the process of meeting standards sooner, the estimated cost would be more. The estimated cost of increasing the level of support for small business and microbusiness EPPs is $150 per additional observation by a field supervisor. The estimated costs for small business and microbusiness EPPs to provide a minimum of five observations by a field supervisor for teacher candidates and at least one observation by a field supervisor for non-teacher candidates is $1,608,000 in each year for FYs 2018-2021. If more teacher candidates participate in internships under probationary certificates that only require three observations, the estimated cost for small business and microbusiness EPPs will be less. For FY 2017, there would be no costs because there is no need to hire additional field supervisors.

In accordance with Texas Government Code, §2006.002, TEA conducted a regulatory flexibility analysis and assessed alternatives to the proposed rule actions to 19 TAC Chapter 228. Three alternatives that would minimize the adverse impacts on small businesses and microbusinesses include:

1. Not adopting the rules; 2. Adopting rules that allow small business and microbusiness EPPs to provide less support for candidates than other EPPs; and 3. Adopting rules that allow small business and microbusiness EPPs to not meet the same standards for online coursework and hiring qualified field supervisors as other EPPs.

TEA assessed alternatives, as described earlier, to the proposed rule actions to 19 TAC Chapter 228 that would diminish the impact on small businesses and microbusinesses; however, it is not possible to provide regulatory flexibility on this matter for the reasons that follow.

If the rule actions were not adopted into rule, candidates may have less support, online coursework may not meet standards, and candidates would be observed by field supervisors who may not have participated in training that meets state standards. If rules were adopted that allowed small business and microbusiness EPPs to provide less support for candidates, candidates enrolled in small business and microbusiness EPPs may be provided with less support than candidates enrolled in other EPPs. If rules were adopted that allowed small business and microbusiness EPPs to not meet the same standards for online coursework and hiring of qualified field supervisors, candidates enrolled in small business and microbusiness EPPs may not receive the same quality of online coursework and may not receive the same quality of supervision as candidates enrolled in other EPPs.

The anticipated effect on local economy and the local employment impact statement required under Texas Government Code, §2001.022, is described earlier in this section.

PUBLIC BENEFIT/COST NOTE. Mr. Franklin has determined that for the first five-year period the proposed rule actions are in effect the public and student benefit anticipated as a result of the proposed rule actions would be the development of clear, minimum EPP requirements that would ensure educators are prepared to positively impact the performance of the diverse student population of this state. The anticipated economic cost to persons who are required to comply with the proposed rule actions is described earlier under Fiscal Note.

ECONOMIC IMPACT STATEMENT AND REGULATORY FLEXIBILITY ANALYSIS FOR SMALL BUSINESSES AND MICROBUSINESSES. The anticipated economic impact for small businesses and microbusinesses and the flexibility analysis, specified in Texas Government Code, §2006.002, are described earlier under Fiscal Note.

REQUEST FOR PUBLIC COMMENT. The public comment period on the proposal begins August 26, 2016, and ends September 26, 2016. The SBEC will take registered oral and written comments on the proposed amendments to 19 TAC §§228.2, 228.10, 228.20, 228.30, 228.35, 228.40, 228.50, 228.60, and 228.70 and new 19 TAC §228.15 and §228.17 at the October 7, 2016, meeting in accordance with the SBEC board operating policies and procedures. Comments on the proposal may be submitted to Cristina De La Fuente-Valadez, Rulemaking, Texas Education Agency, 1701 North Congress Avenue, Austin, Texas 78701. Comments may also be submitted electronically to sbecrules@tea.texas.gov. All requests for a public hearing on the proposed rule actions submitted under the Administrative Procedure Act must be received by the Department of Educator Leadership and Quality, Texas Education Agency, 1701 North Congress Avenue, Austin, Texas 78701, Attention: Mr. Ryan Franklin, associate commissioner for educator leadership and quality, not more than 14 calendar days after notice of the proposal has been published in the Texas Register on August 26, 2016.

STATUTORY AUTHORITY. The amendments and new sections are proposed under the Texas Education Code (TEC), §21.031, which authorizes the State Board for Educator Certification (SBEC) to regulate and oversee all aspects of the certification, continuing education, and standards of conduct of public school educators, and states that in proposing rules under the TEC, Chapter 21, Subchapter B, the SBEC shall ensure that all candidates for certification or renewal of certification demonstrate the knowledge and skills necessary to improve the performance of the diverse student population of this state; the TEC, §21.041(b)(1), which requires the SBEC to propose rules that provide for the regulation of educators and the general administration of the TEC, Chapter 21, Subchapter B, in a manner consistent with the TEC, Chapter 21, Subchapter B; the TEC, §21.041(b)(2), which requires the SBEC to propose rules that specify the classes of educator certificates to be issued, including emergency certificates; the TEC, §21.044(a), which requires the SBEC to propose rules establishing training requirements a person must accomplish to obtain a certificate, enter an internship, or enter an induction-year program; the TEC, §21.044(b), which requires a person seeking certification that requires a bachelor's degree to receive training in dyslexia; the TEC, §21.044(c-1), which requires a person seeking certification that requires a bachelor's degree to receive training in mental health, substance abuse, and suicide prevention; the TEC, §21.044(g), which requires each EPP to provide certain information related to performance of the EPP, the importance of building strong classroom management skills, the framework for teacher and principal evaluation, the skills that educators are required to possess, the responsibilities that educators are required to accept, and the high expectations for students; the TEC, §21.0443, which states that the SBEC shall propose rules to establish standards to govern the approval or renewal of approval of EPPs and certification fields authorized to be offered by an EPP. To be eligible for approval or renewal of approval, an EPP must adequately prepare candidates for educator certification and meet the standards and requirements of the SBEC. The SBEC shall require that each EPP be reviewed for renewal of approval at least every five years. The SBEC shall adopt an evaluation process to be used in reviewing an EPP for renewal of approval; the TEC, §21.045(a), which states that the board shall propose rules establishing standards to govern the continuing accountability of all EPPs; the TEC, §21.0453, which states that the SBEC may propose rules as necessary to ensure that all EPPs provide candidates with accurate information; the TEC, §21.0454, which states the SBEC shall propose rules necessary to develop a set of risk factors to use in assessing the overall risk level of each EPP; the TEC, §21.0455, which states the SBEC shall propose rules necessary to establish a process for a candidate for teacher certification to direct a complaint against an EPP to the agency; the TEC, §21.048(a), which requires the SBEC to propose rules prescribing comprehensive examinations for each class of certificate issued by the SBEC; the TEC, §21.0487(c)(2)(B), which requires the SBEC to propose rules to establish requirements under which a person's employment by a school district as a Junior Reserve Officer Training Corps instructor before the person was enrolled in an EPP or while the person is enrolled in an EPP is applied to satisfy any student teaching, internship, or field-based experience program requirement; the TEC, §21.049, which authorizes the SBEC to propose rules providing for educator certification programs as an alternative to traditional EPPs; the TEC, §21.050(a), which states that a person who applies for a teaching certificate for which SBEC rules require a bachelor's degree must possess a bachelor's degree received with an academic major or interdisciplinary academic major, including reading, other than education, that is related to the curriculum as prescribed under the TEC, Chapter 28, Subchapter A; the TEC, §21.050(c), which states that a person who receives a bachelor's degree required for a teaching certificate on the basis of higher education coursework completed while receiving an exemption from tuition and fees under the TEC, §54.363, may not be required to participate in any field experience or internship consisting of student teaching to receive a teaching certificate; and the TEC, §21.051, which provides a requirement that before a school may employ a certification candidate as a teacher of record, the candidate must have completed at least 15 hours of field-based experience in which the candidate is actively engaged at an approved school in instructional or educational activities under supervision.

CROSS REFERENCE TO STATUTE. The proposed amendments and new sections implement the TEC, §§21.031; 21.041(b)(1) and (2); 21.044(a), (b), (c-1), and (g); 21.0443; 21.045(a); 21.0453; 21.0454; 21.0455; 21.048(a); 21.0487(c)(2)(B); 21.049; 21.050(a) and (c); and 21.051.