The Texas Education Agency (TEA) proposes an amendment to §97.1055, concerning accreditation status. The proposed amendment would modify the rule to provide clarifications to existing statutory provisions and reflect the recodification of Texas Education Code (TEC), Chapter 39, Subchapter E, into TEC, Chapter 39A.

Section 97.1055 defines the requirements a school district must meet each school year to receive the status of Accredited and states how the accreditation statuses of Accredited-Warned, Accredited-Probation, and Not Accredited-Revoked are determined.

The proposed amendment to §97.1055 would add new subsection (a)(7) to extend the commissioner's option to withhold the assignment of an accreditation status to an open-enrollment charter school subject to revocation or non-renewal/expiration to those that have voluntarily surrendered their charter contract in order to reduce duplicative actions on the part of the TEA.

New subsection (a)(10) would clarify the commissioner's authority to proceed with previously imposed sanctions due to a lowered accreditation status after the subsequent issuance of a new accreditation status. This addition would best fulfill the purposes of the accreditation system by ensuring that interventions and sanctions are continued so that districts do not earn their way out of the accreditation system only to fall back into the system in the next school year.

New subsection (d)(2) would be added to clarify the commissioner's options when a district might otherwise earn a Not Accredited-Revoked accreditation status. When the commissioner determines that good cause exists to maintain the district's current status, together with new or existing interventions or sanctions, the commissioner may abate the issuance of an accreditation status, issue another accreditation, appoint a board of managers to govern the district, and/or take other actions reasonably necessary to achieve the purposes of the accreditation system in lieu of revoking the district's accreditation. This would allow the commissioner greater flexibility to tailor interventions to meet the purposes of the accreditation system.

New subsection (d)(3) would be added to explain how accreditation statuses will be determined during school years in which a district is operated wholly or in part by an appointed board of managers. This change would allow the board of managers an opportunity to correct the district's academic, financial, programmatic, and governance deficiencies and would hold the board of managers responsible for the performance of the district that occurs during the period of appointment. This provision would best meet the purposes of the accreditation system by recognizing that the appointment of a board of managers is a fundamental change in the operation of the district and allowing time for that fundamental change to impact the academic, financial, and programmatic performance of the district.

In addition, the proposed amendment would update cross references to align with Senate Bill 1488, 85th Texas Legislature, Regular Session, 2017, which recodified TEC, Chapter 39, Subchapter E, into TEC, Chapter 39A.

The proposed amendment would have no procedural or reporting implications. The proposed amendment would have no locally maintained paperwork requirements.

FISCAL NOTE. A.J. Crabill, deputy commissioner for governance, has determined that for the first five-year period the amendment is in effect, there will be no fiscal implications for state and local government as a result of enforcing or administering the amendment.

There is no effect on local economy for the first five years that the proposed amendment is in effect; therefore, no local employment impact statement is required under Texas Government Code, §2001.022. The proposed amendment does not impose a cost on regulated persons, another state agency, a special district, or a local government and, therefore, is not subject to Texas Government Code, §2001.0045.

GOVERNMENT GROWTH IMPACT. TEA staff prepared a Government Growth Impact Statement assessment for this proposed rulemaking. During the first five years the proposed rulemaking would be in effect, it would not create or eliminate a government program; would not require the creation of new employee positions or elimination of existing employee positions; would not require an increase or decrease in future legislative appropriations to the agency; would not require an increase or decrease in fees paid to the agency; would not create a new regulation; would not expand, limit, or repeal an existing regulation; would not increase or decrease the number of individuals subject to its applicability; and would not positively or adversely affect the state's economy.

PUBLIC BENEFIT/COST NOTE. Mr. Crabill has determined that for each year of the first five years the proposed amendment is in effect, the public benefit anticipated as a result of enforcing the proposed amendment would be ensuring that rule language is based on current law and providing school districts with clarifications on the assignment of accreditation statuses and the applicability of sanctions and any future district ratings on subsequent accreditation status assignments. There is no anticipated economic cost to persons who are required to comply with the proposed amendment.

ECONOMIC IMPACT STATEMENT AND REGULATORY FLEXIBILITY ANALYSIS FOR SMALL BUSINESSES, MICROBUSINESSES, AND RURAL COMMUNITIES. There is no direct adverse economic impact for small businesses, microbusinesses, and rural communities; therefore, no regulatory flexibility analysis, specified in Texas Government Code, §2006.002, is required.

REQUEST FOR PUBLIC COMMENT. The public comment period on the proposal begins June 29, 2018, and ends July 30, 2018. A form for submitting public comments is available on the TEA website at https://tea.texas.gov/About_TEA/Laws_and_Rules/Commissioner_Rules_(TAC)/Proposed_Commissioner_of_Education_Rules/. Comments on the proposal may also be submitted to Cristina De La Fuente-Valadez, Rulemaking, Texas Education Agency, 1701 North Congress Avenue, Austin, Texas 78701. A request for a public hearing on the proposal submitted under the Administrative Procedure Act must be received by the commissioner of education not more than 14 calendar days after notice of the proposal has been published in the Texas Register on June 29, 2018.

STATUTORY AUTHORITY. The amendment is proposed under Texas Education Code (TEC), §39.051, which requires the commissioner to determine accreditation statuses; and TEC, §39.052, which establishes the requirements for the commissioner to consider when determining accreditation statuses.

CROSS REFERENCE TO STATUTE. The amendment implements Texas Education Code, §39.051 and §39.052.