TITLE 19. EDUCATION

PART 2. TEXAS EDUCATION AGENCY

CHAPTER 33. STATEMENT OF INVESTMENT OBJECTIVES, POLICIES, AND GUIDELINES OF THE TEXAS PERMANENT SCHOOL FUND

SUBCHAPTER A. STATE BOARD OF EDUCATION RULES

19 TAC §33.65, §33.67

The State Board of Education (SBOE) proposes amendments to §33.65 and §33.67, concerning the bond guarantee program (BGP). The proposed amendments would adjust the bond guarantee multiplier; specify the charter district bond guarantee capacity authorized by Senate Bill (SB) 1480, 85th Texas Legislature, Regular Session, 2017; and address Charter District Bond Guarantee Reserve Fund management.

In accordance with statute, the rules in 19 TAC Chapter 33 establish investment objectives, policies, and guidelines for the Texas Permanent School Fund (PSF). Specifically, §33.65 and §33.67 establish the BGP for school districts and charter districts, respectively, in accordance with the constitution and statutory directives.

Legislation from the 85th Texas Legislature, Regular Session, 2017, made changes to the Texas Education Code (TEC) that impact the BGP for school districts and charter districts.

The proposed amendment to §33.65(e)(1) would decrease the multiplier used to determine the PSF's capacity to guarantee bonds to 3.5. The multiplier was previously raised from 3.5 to 3.75 effective September 1, 2017, to allow for more charter capacity in the BGP. With the expansion of the charter capacity authorized by SB 1480, the BGP multiplier could be lowered from 3.75 back to 3.5 and still allow sufficient capacity for new bond guarantees of independent school districts and charter districts.

SB 1480 changed the calculation of the charter capacity in the BGP, necessitating an amendment to the monthly estimation of the charter capacity by the commissioner and establishing a process for the SBOE to adjust, if needed, the annual phase-in of charter capacity for state fiscal years 2018 through 2022. Additionally, SB 1480 explicitly authorized the SBOE to manage the Charter District Bond Guarantee Reserve Fund in the same manner it manages the PSF. This change subjects the Charter District Bond Guarantee Reserve Fund to the same provisions related to the PSF as in other sections of 19 TAC Chapter 33. The proposed amendment to §33.67(d) would add language to specify the available capacity of the PSF to guarantee bonds for charter districts in accordance with SB 1480. In addition, new subsection (l) would be added to address the management of the Charter District Bond Guarantee Reserve Fund.

The SBOE approved the amendments for first reading and filing authorization at its November 10, 2017 meeting.

The proposed amendments would have no procedural and reporting implications. The proposed amendments would have no locally maintained paperwork requirements.

FISCAL NOTE. Holland Timmins, executive administrator and chief investment officer of the Texas Permanent School Fund, has determined that for the first five-year period the proposed amendments are in effect there will be no additional costs to state or local government as a result of enforcing or administering the proposed amendments. There is no effect on local economy for the first five years that the proposed amendments are in effect; therefore, no local employment impact statement is required under Texas Government Code, §2001.022. The proposed amendments do not impose a cost on regulated persons and, therefore, are not subject to Texas Government Code, §2001.0045.

GOVERNMENT GROWTH IMPACT. The TEA has determined that the proposed amendments do not have a government growth impact pursuant to Texas Government Code, §2001.0221.

PUBLIC BENEFIT/COST NOTE. Mr. Timmins has determined that for each year of the first five years the proposed amendments are in effect, the public benefit anticipated as a result of enforcing the amendments will be updated and clarified provisions supporting the management and investment of the PSF. There is no anticipated economic cost to persons who are required to comply with the proposed amendments.

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. 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 rules@tea.texas.gov. A request for a public hearing on the proposed amendment 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.

STATUTORY AUTHORITY. The amendments are proposed under the Texas Education Code (TEC), §45.053(d), which grants the State Board of Education (SBOE) the authority to increase by rule the multiplier used in calculating the capacity of the fund; TEC, §45.0532, as amended by SB 1480, 85th Texas Legislature, Regular Session, 2017, which limits the amount of charter district bond guarantees; TEC, §45.0571, as amended by SB 1480, 85th Texas Legislature, Regular Session, 2017, which grants authority to the SBOE to manage the Charter District Bond Guarantee Reserve Fund; TEC, §45.063, which authorizes the SBOE to adopt rules necessary for the administration of the Bond Guarantee Program (BGP); and Texas Constitution, Article VII, §5(d), which authorizes the legislature to use the Permanent School Fund to establish a BGP that has been enacted under the TEC, Chapter 45, Subchapter C.

CROSS REFERENCE TO STATUTE. The amendments implement the Texas Education Code (TEC), §§45.053; 45.0532 and 45.0571, as amended by SB 1480, 85th Texas Legislature, Regular Session, 2017; 45.063; and the Texas Constitution, Article VII, Education, §5(d).

§33.65.Bond Guarantee Program for School Districts.

(a) Statutory provision. The commissioner of education must administer the guarantee program for school district bonds according to the provisions of the Texas Education Code (TEC), Chapter 45, Subchapter C.

(b) Definitions. The following definitions apply to the guarantee program for school district bonds.

(1) Annual debt service--Payments of principal and interest on outstanding bonded debt scheduled to occur between September 1 and August 31 during the fiscal year in which the guarantee is sought as reported by the Municipal Advisory Council (MAC) of Texas or its successor, if the district has outstanding bonded indebtedness.

(A) The annual debt service will be determined by the current report of the bonded indebtedness of the district as reported by the MAC of Texas or its successor as of the date of the application deadline.

(B) The annual debt service does not include:

(i) the amount of debt service to be paid on the bonds for which the reservation is sought; or

(ii) the amount of debt service attributable to any debt that is no longer outstanding at the application deadline, provided that the Texas Education Agency (TEA) has sufficient evidence of the discharge or defeasance of such debt.

(C) Solely for the purpose of this calculation, the debt service amounts for variable rate bonds will be those that are published in the final official statement, or if there is no official statement, debt service amounts based on the maximum rate permitted by the bond order or other bond proceeding that establishes a maximum interest rate for the bonds.

(2) Application deadline--The last business day of the month in which an application for a guarantee is filed. Applications must be submitted electronically through the website of the MAC of Texas or its successor by 5:00 p.m. on the last business day of the month to be considered in that month's application processing.

(3) Average daily attendance (ADA)--Total refined average daily attendance as defined by the TEC, §42.005.

(4) Bond--A debt security issuance approved by the attorney general, issued under the TEC, §45.003 or §45.004, to provide long-term financing with a maturity schedule of at least three years.

(5) Bond Guarantee Program (BGP)--The guarantee program that is described by this section and established under the TEC, Chapter 45, Subchapter C.

(6) Bond order--The order adopted by the governing body of a school district that authorizes the issuance of bonds and the pricing certificate, if any, establishing the terms of the bonds executed pursuant to such order.

(7) Combination issue--An issuance of bonds for which an application for a guarantee is filed that includes both a new money portion and a refunding portion, as permitted by the Texas Government Code, Chapter 1207. The eligibility of combination issues for the guarantee is limited by the eligibility of the new money and refunding portions as defined in this subsection.

(8) Enrollment growth--Growth in student enrollment, as defined by §129.1025 of this title (relating to Adoption by Reference: Student Attendance Accounting Handbook), that has occurred over the previous five school years.

(9) Nationally recognized investment rating firm--An investment rating firm that is designated by the United States Securities and Exchange Commission as a nationally recognized statistical rating organization (NRSRO) and is demonstrating that it has:

(A) had its current NRSRO designation for at least three consecutive years;

(B) provided credit ratings to each of the following:

(i) fifteen or more fixed income securities denominated in United States dollars and issued during the immediately preceding three years; and

(ii) ten or more school districts in the United States; and

(C) a documented separation of duties between employees involved in credit analysis and employees involved in business relationships with clients.

(10) New money issue--An issuance of bonds for the purposes of constructing, renovating, acquiring, and equipping school buildings; the purchase of property; or the purchase of school buses. An issuance of bonds for the purpose of constructing teacher or student housing is eligible for the guarantee for new money only if it is an integral part of the educational mission of the school district as determined by the commissioner. Eligibility for the guarantee for new money issues is limited to the issuance of bonds authorized under the TEC, §45.003. A new money issue does not include the issuance of bonds to purchase a facility from a public facility corporation created by the school district or to purchase any property that is currently under a lease-purchase contract under the Local Government Code, Chapter 271, Subchapter A. A new money issue does not include an issuance of bonds to refinance any type of maintenance tax-supported debt. Maintenance tax-supported debt includes, but is not limited to:

(A) time warrants or loans entered under the TEC, Chapter 45, Subchapter E; or

(B) any other type of loan or warrant that is not supported by bond taxes as defined by the TEC, §45.003.

(11) Notes issued to provide interim financing--An issuance of notes, including commercial paper notes, designed to provide short-term financing for the purposes of constructing, renovating, acquiring, and equipping school buildings; the purchase of property; or the purchase of school buses. For notes to be eligible for the guarantee under this section, the notes must be:

(A) issued to pay costs for which bonds have been authorized at an election occurring before the issuance of the notes;

(B) approved by the attorney general or issued in accordance with proceedings that have been approved by the attorney general; and

(C) refunded by bonds issued to provide long-term financing no more than three years from the date of issuance of such notes, provided that the date of issuance of notes will be determined by reference to the date on which the notes were issued for capital expenditures and the intervening date or dates of issuance of any notes issued to refinance outstanding notes will be disregarded.

(12) Refunding issue--An issuance of bonds for the purpose of refunding bonds, including notes issued to provide interim financing, that are supported by bond taxes as defined by the TEC, §45.003. Eligibility for the guarantee for refunding issues is limited to refunding issues that refund bonds, including notes issued to provide interim financing, that were authorized by a bond election under the TEC, §45.003.

(13) Total debt service--Total outstanding principal and interest on bonded debt.

(A) The total debt service will be determined by the current report of the bonded indebtedness of the district as reported by the MAC of Texas or its successor as of the date of the application deadline, if the district has outstanding bonded indebtedness.

(B) The total debt service does not include:

(i) the amount of debt service to be paid on the bonds for which the reservation is sought; or

(ii) the amount of debt service attributable to any debt that is no longer outstanding at the application deadline, provided that the TEA has sufficient evidence of the discharge or defeasance of such debt.

(C) Solely for the purpose of this calculation, the debt service amounts for variable rate bonds will be those that are published in the final official statement, or if there is no official statement, debt service amounts based on the maximum rate permitted by the bond order or other bond proceeding that establishes a maximum interest rate for the bonds.

(c) Data sources.

(1) The following data sources will be used for purposes of prioritization:

(A) projected ADA for the current school year as adopted by the legislature for appropriations purposes;

(B) final property values certified by the comptroller of public accounts, as described in the Texas Government Code, Chapter 403, Subchapter M, for the tax year preceding the year in which the bonds will be issued. If final property values are unavailable, the most recent projection of property values by the comptroller, as described in the Texas Government Code, Chapter 403, Subchapter M, will be used;

(C) debt service information reported by the MAC of Texas or its successor as of the date of the application deadline; and

(D) enrollment information reported to the Public Education Information Management System (PEIMS) for the five-year time period ending in the year before the application date.

(2) The commissioner may consider adjustments to data values determined to be erroneous or not reflective of current conditions before the deadline for receipt of applications for that application cycle.

(d) Bond eligibility.

(1) Only those combination, new money, and refunding issues as defined in subsection (b)(7), (10), and (12), respectively, of this section are eligible to receive the guarantee.

(2) Refunding issues must comply with the following requirements to retain eligibility for the guarantee for the refunding bonds, except that subparagraph (C) of this paragraph does not apply to a refunding issue that provides long-term financing for notes issued to provide interim financing.

(A) As with any district applying for approval for the guarantee, the district issuing the refunding bonds must meet the requirements for initial approval specified in subsection (g)(2)(A) of this section.

(B) The bonds to be refunded must have been:

(i) previously guaranteed by the Permanent School Fund (PSF) or approved for credit enhancement under §61.1038 of this title (relating to School District Bond Enhancement Program);

(ii) issued on or after November 1, 2008, and before January 1, 2010; or

(iii) issued as notes to provide interim financing as defined in subsection (b)(11) of this section.

(C) The district must demonstrate that issuing the refunding bond(s) will result in a present value savings to the district and that the refunding bond or bonds will not have a maturity date later than the final maturity date of the bonds being refunded. Present value savings is determined by computing the net present value of the difference between each scheduled payment on the original bonds and each scheduled payment on the refunding bonds. Present value savings must be computed at the true interest cost of the refunding bonds. If the commissioner approves refunding bonds for the guarantee based on evidence of present value savings but at the time of the sale of the refunding bonds a present value savings is not realized, the commissioner may revoke the approval of the bonds for the guarantee.

(D) The refunding transaction must comply with the provisions of subsection (g)(4)(A)-(C) of this section.

(3) If a district files an application for a combination issue, the application will be treated as an application for a single issue for the purposes of eligibility for the guarantee. A guarantee for the combination issue will be awarded only if both the new money portion and the refunding portion meet all of the applicable eligibility requirements described in this section. As part of its application, the applicant district must present data that demonstrate compliance for both the new money portion of the issue and the refunding portion of the issue.

(4) If the commissioner determines that an applicant has deliberately misrepresented information related to a bond issue to secure a guarantee, the commissioner must revoke the approval of the bonds for the guarantee.

(e) Determination of PSF capacity to guarantee bonds.

(1) Each month the commissioner will estimate the available capacity of the PSF. If necessary, the commissioner will confirm that the PSF has sufficient capacity to guarantee the bonds before the issuance of the final approval for the guarantee in accordance with subsection (g)(3) of this section. The calculation of capacity will be based on a multiplier of three and one-half times the cost value of the PSF [effective March 1, 2017, and a multiplier of three and three-fourths times the cost value of the PSF effective September 1, 2017,] with the proviso that under no circumstances could the capacity of the fund exceed the limits set by federal regulation. The commissioner may reduce the multiplier to maintain the AAA credit rating of the PSF. Changes to the multiplier made by the commissioner are to be ratified or rejected by the State Board of Education (SBOE) at the next meeting for which the item can be posted.

(2) The SBOE will establish an amount of capacity to be held in reserve of no less than 5.0% of the fund's capacity. The reserved capacity can be used to award guarantees for districts that experience unforeseen catastrophes or emergencies that require the renovation or replacement of school facilities as described in the TEC, §44.031(h). The amount to be held in reserve may be increased by a majority vote of the SBOE based on changes in the asset allocation and risk in the portfolio and unrealized gains in the portfolio, or by the commissioner as necessary to prudently manage fund capacity. Changes to the amount held in reserve made by the commissioner are to be ratified or rejected by the SBOE at the next meeting for which the item can be posted.

(3) The net capacity of the PSF to guarantee bonds is determined by subtracting the amount to be held in reserve, as determined under paragraph (2) of this subsection, from the total available capacity, as described in paragraph (1) of this subsection.

(f) Application process and application processing.

(1) Application submission and fee. A district must apply to the commissioner for the guarantee of eligible bonds or the credit enhancement of eligible bonds as authorized under §61.1038 of this title by submitting an application electronically through the website of the MAC of Texas or its successor. The district must submit the information required under the TEC, §45.055(b), and this section and any additional information the commissioner may require. The application and all additional information required by the commissioner must be received before the application will be processed. The district may not submit an application for a guarantee or credit enhancement before the successful passage of an authorizing proposition.

(A) The application fee is $1,500.

(B) The fee is due at the time the application for the guarantee or the credit enhancement is submitted. An application will not be processed until the fee has been remitted according to the directions provided on the website of the MAC of Texas or its successor and received by the TEA.

(C) The fee will not be refunded to a district that:

(i) is not approved for the guarantee or the credit enhancement; or

(ii) does not sell its bonds before the expiration of its approval for the guarantee or the credit enhancement.

(D) The fee may be transferred to a subsequent application for the guarantee or the credit enhancement by the district if the district withdraws its application and submits the subsequent application before the expiration of its approval for the guarantee or the credit enhancement.

(2) Application prioritization and processing. Applications will be prioritized based on districts' property wealth per ADA, with the application of a district with a lower property wealth per ADA prioritized before that of a district with a higher property wealth per ADA. All applications received during a calendar month will be held until up to the 15th business day of the subsequent month. On or before the 15th business day of each month, the commissioner will announce the results of the prioritization and process applications for initial approval for the guarantee, up to the available net capacity as of the application deadline, subject to the requirements of this section.

(A) Approval for guarantees will be awarded each month beginning with the districts with the lowest property wealth per ADA until the PSF reaches its net capacity to guarantee bonds.

(B) Approval for guarantees will be awarded based on the fund's capacity to fully guarantee the bond issue for which the guarantee is sought. Applications for bond issues that cannot be fully guaranteed will not receive an award. The amount of bond issue for which the guarantee was requested may not be modified after the monthly application deadline for the purposes of securing the guarantee during the award process. If PSF net capacity has been exhausted, the commissioner will process the application for approval of the credit enhancement as specified in §61.1038 of this title.

(C) The actual guarantee of the bonds is subject to the approval process prescribed in subsection (g) of this section.

(D) An applicant school district is ineligible for consideration for the guarantee if its lowest credit rating from any nationally recognized investment rating firm as defined in subsection (b)(9) of this section is the same as or higher than that of the PSF.

(3) Late application. An application received after the application deadline will be considered a valid application for the subsequent month, unless withdrawn by the submitting district before the end of the subsequent month.

(4) Notice of application status. Each district that submits a valid application will be notified of the application status within 15 business days of the application deadline.

(5) Reapplication. If a district does not receive approval for the guarantee or for any reason does not receive approval of the bonds from the attorney general within the time period specified in subsection (g)(4) of this section, the district may reapply in a subsequent month. Applications that were denied approval for the guarantee will not be retained for consideration in subsequent months.

(g) Approval for the guarantee; district responsibilities on receipt of approval.

(1) Initial and final approval provisions.

(A) If, during the monthly estimation of PSF capacity described in subsection (e)(1) of this section, the commissioner determines that the available capacity of the PSF is 10% or less, the commissioner may require an applicant school district to obtain final approval for the guarantee as described in paragraph (3) of this subsection.

(B) If the commissioner has not made such a determination:

(i) the commissioner will consider the initial approval described in paragraph (2) of this subsection as both the initial and final approval; and

(ii) an applicant school district that has received notification of initial approval for the guarantee, as described in paragraph (2) of this subsection, may consider that notification as notification of initial and final approval for the guarantee and may complete the sale of the applicable bonds.

(2) Initial approval.

(A) The following provisions apply to all applications for the guarantee, regardless of whether an application is for a new money, refunding, or combination issue. Under the TEC, §45.056, the commissioner will investigate the applicant school district's accreditation status and financial status. A district must be accredited and financially sound to be eligible for initial approval by the commissioner. The commissioner's review will include the following:

(i) the purpose of the bond issue;

(ii) the district's accreditation status as defined by §97.1055 of this title (relating to Accreditation Status) in accordance with the following:

(I) if the district's accreditation status is Accredited, the district will be eligible for consideration for the guarantee;

(II) if the district's accreditation status is Accredited-Warned or Accredited-Probation, the commissioner will investigate the underlying reason for the accreditation rating to determine whether the accreditation rating is related to the district's financial soundness. If the accreditation rating is related to the district's financial soundness, the district will not be eligible for consideration for the guarantee; or

(III) if the district's accreditation status is Not Accredited-Revoked, the district will not be eligible for consideration for the guarantee;

(iii) the district's compliance with statutes and rules of the TEA; and

(iv) the district's financial status and stability, regardless of the district's accreditation rating, including approval of the bonds by the attorney general under the provisions of the TEC, §45.0031 and §45.005.

(B) The following limitation applies to applications for new money issues of bonds for which the election authorizing the issuance of the bonds was called after July 15, 2004. The commissioner will limit approval for the guarantee to a district that has, at the time of the application for the guarantee, less than 90% of the annual debt service of the district with the highest annual debt service per ADA, as determined by the commissioner annually, or less than 90% of the total debt service of the district with the highest total debt service per ADA, as determined by the commissioner annually. The limitation will not apply to school districts that have enrollment growth, as defined in subsection (b)(8) of this section, of at least 25%, based on PEIMS data on enrollment available at the time of application. The annual debt service amount is the amount defined by subsection (b)(1) of this section. The total debt service amount is the amount defined by subsection (b)(13) of this section.

(C) The commissioner will grant or deny initial approval for the guarantee based on the review described in subparagraph (A) of this paragraph and the limitation described in subparagraph (B) of this paragraph and will provide an applicant district whose application has received initial approval for the guarantee written notice of initial approval.

(3) Final approval. The provisions of this paragraph apply only as described in paragraph (1) of this subsection. A district must receive final approval before completing the sale of the bonds for which the district has received notification of initial approval.

(A) A district that has received initial approval must provide a written notice to the TEA two business days before issuing a preliminary official statement (POS) for the bonds that are eligible for the guarantee or two business days before soliciting investment offers, if the bonds will be privately placed without the use of a POS.

(i) The district must receive written confirmation from the TEA that the capacity continues to be available before proceeding with the public or private offer to sell bonds.

(ii) The TEA will provide this notification within one business day of receiving the notice of the POS or notice of other solicitation offers to sell the bonds.

(B) A district that received confirmation from the TEA in accordance with subparagraph (A) of this paragraph must provide written notice to the TEA of the placement of an item to approve the bond sale on the agenda of a meeting of the school board of trustees no later than two business days before the meeting. If the bond sale is completed pursuant to a delegation by the board to a pricing officer or committee, notice must be given to the TEA no later than two business days before the execution of a bond purchase agreement by such pricing officer or committee.

(i) The district must receive written confirmation from the TEA that the capacity continues to be available for the bond sale before the approval of the sale by the school board of trustees or by the pricing officer or committee.

(ii) The TEA will provide this notification within one business day before the date that the district expects to complete the sale by official action of the board or of a pricing officer or committee.

(C) The TEA will process requests for final approval from districts that have received initial approval on a first come, first served basis. Requests for final approval must be received before the expiration of the initial approval.

(D) A district may provide written notification as required by this paragraph by facsimile transmission or by email in a manner prescribed by the commissioner.

(4) District responsibilities on receipt of approval.

(A) Once a district is awarded initial approval for the guarantee, each issuance of the bonds must be approved by the attorney general within 180 days of the date of the letter granting the approval for the guarantee. The initial approval for the guarantee will expire at the end of the 180-day period. The commissioner may extend the 180-day period, based on extraordinary circumstances, on receiving a written request from the district or the attorney general before the expiration of the 180-day period.

(B) If the bonds are not approved by the attorney general within 180 days of the date of the letter granting the approval for the guarantee, the commissioner will consider the application withdrawn, and the district must reapply for a guarantee.

(C) If applicable, the district must comply with the provisions for final approval described in paragraph (3) of this subsection to maintain approval for the guarantee.

(D) A district may not represent bonds as guaranteed for the purpose of pricing or marketing the bonds before the date of the letter granting approval for the guarantee.

(h) Financial exigency. The following provisions describe how a declaration of financial exigency under §109.2001 of this title (relating to Financial Exigency) affects a district's application for guarantee approval or a district's previously granted approval.

(1) Application for guarantee of new money issue. The commissioner will deny approval of an application for the guarantee of a new money issue if the applicant school district has declared a state of financial exigency for the district's current fiscal year. The denial of approval will be in effect for the duration of the applicable fiscal year unless the district can demonstrate financial stability.

(2) Approval granted before declaration. If in a given district's fiscal year the commissioner grants approval for the guarantee of a new money issue and the school district subsequently declares a state of financial exigency for that same fiscal year, the district must immediately notify the commissioner and may not offer the bonds for sale unless the commissioner determines that the district may proceed.

(3) Application for guarantee of refunding issue. The commissioner will consider an application for the guarantee of a refunding issue that meets all applicable requirements specified in this section even if the applicant school district has declared a state of financial exigency for the district's current fiscal year. In addition to fulfilling all applicable requirements specified in this section, the applicant school district must also describe, in its application, the reason financial exigency was declared and how the refunding issue will support the district's financial recovery plan.

(i) Allocation of specific holdings. If necessary to successfully operate the BGP, the commissioner may allocate specific holdings of the PSF to specific bond issues guaranteed under this section. This allocation will not prejudice the right of the SBOE to dispose of the holdings according to law and requirements applicable to the fund; however, the SBOE will ensure that holdings of the PSF are available for a substitute allocation sufficient to meet the purposes of the initial allocation. This allocation will not affect any rights of the bond holders under law.

(j) Defeasance. The guarantee will be completely removed when bonds guaranteed by the BGP are defeased, and such a provision must be specifically stated in the bond order. If bonds guaranteed by the BGP are defeased, the district must notify the commissioner in writing within ten calendar days of the action.

(k) Bonds issued before August 15, 1993. For bonds issued before August 15, 1993, a school district seeking the guarantee of eligible bonds must certify that, on the date of issuance of any bond, no funds received by the district from the Available School Fund (ASF) are reasonably expected to be used directly or indirectly to pay the principal or interest on, or the tender or retirement price of, any bond of the political subdivision or to fund a reserve or placement fund for any such bond.

(l) Bonds guaranteed before December 1, 1993. For bonds guaranteed before December 1, 1993, if a school district cannot pay the maturing or matured principal or interest on a guaranteed bond, the commissioner will cause the amount needed to pay the principal or interest to be transferred to the district's paying agent solely from the PSF and not from the ASF. The commissioner also will direct the comptroller of public accounts to withhold the amount paid, plus interest, from the first state money payable to the district, excluding payments from the ASF.

(m) Bonds issued after August 15, 1993, and guaranteed on or after December 1, 1993. If a school district cannot pay the maturing or matured principal or interest on a guaranteed bond, the commissioner will cause the amount needed to pay the principal or interest to be transferred to the district's paying agent from the PSF. The commissioner also will direct the comptroller of public accounts to withhold the amount paid, plus interest, from the first state money payable to the district, regardless of source, including the ASF.

(n) Payments. For purposes of the provisions of the TEC, Chapter 45, Subchapter C, matured principal and interest payments are limited to amounts due on guaranteed bonds at scheduled maturity, at scheduled interest payment dates, and at dates when bonds are subject to mandatory redemption, including extraordinary mandatory redemption, in accordance with the terms of the bond order. All such payment dates, including mandatory redemption dates, must be specified in the bond order or other document pursuant to which the bonds initially are issued. Without limiting the provisions of this subsection, payments attributable to an optional redemption or a right granted to a bondholder to demand payment on a tender of such bonds according to the terms of the bonds do not constitute matured principal and interest payments.

(o) Guarantee restrictions. The guarantee provided for eligible bonds under the provisions of the TEC, Chapter 45, Subchapter C, is restricted to matured bond principal and interest. The guarantee applies to all matured interest on eligible bonds, whether the bonds were issued with a fixed or variable interest rate and whether the interest rate changes as a result of an interest reset provision or other bond order provision requiring an interest rate change. The guarantee does not extend to any obligation of a district under any agreement with a third party relating to bonds that is defined or described in state law as a "bond enhancement agreement" or a "credit agreement," unless the right to payment of such third party is directly as a result of such third party being a bondholder.

(p) Notice of default. A school district that has determined that it is or will be unable to pay maturing or matured principal or interest on a guaranteed bond must immediately, but not later than the fifth business day before maturity date, notify the commissioner.

(q) Payment from PSF.

(1) Immediately after the commissioner receives the notice described in subsection (p) of this section, the commissioner will instruct the comptroller to transfer from the appropriate account in the PSF to the district's paying agent the amount necessary to pay the maturing or matured principal or interest.

(2) Immediately after receipt of the funds for payment of the principal or interest, the paying agent must pay the amount due and forward the canceled bond or coupon to the comptroller. The comptroller will hold the canceled bond or coupon on behalf of the PSF.

(3) Following full reimbursement to the PSF with interest, the comptroller will further cancel the bond or coupon and forward it to the school district for which payment was made. Interest will be charged at the rate determined under the Texas Government Code, §2251.025(b). Interest will accrue as specified in the Texas Government Code, §2251.025(a) and (c).

(r) Bonds not accelerated on default. If a school district fails to pay principal or interest on a guaranteed bond when it matures, other amounts not yet mature are not accelerated and do not become due by virtue of the school district's default.

(s) Reimbursement of PSF. If payment from the PSF is made on behalf of a school district, the school district must reimburse the amount of the payment, plus interest, in accordance with the requirements of the TEC, §45.061.

(t) Repeated failure to pay. If a total of two or more payments are made under the BGP or the credit enhancement program authorized under §61.1038 of this title on the bonds of a school district, the commissioner will take action in accordance with the provisions of the TEC, §45.062.

§33.67.Bond Guarantee Program for Charter Schools.

(a) Statutory provision. The commissioner of education must administer the guarantee program for open-enrollment charter school bonds according to the provisions of the Texas Education Code (TEC), Chapter 45, Subchapter C.

(b) Definitions. The following definitions apply to the guarantee program for open-enrollment charter school bonds.

(1) Amortization expense--The annual expense of any debt and/or loan obligations.

(2) Annual debt service--Payments of principal and noncapitalized interest on outstanding bonded debt scheduled to occur during a charter district's fiscal year as reported by the Municipal Advisory Council (MAC) of Texas or its successor, if the charter district is responsible for outstanding bonded indebtedness.

(A) The annual debt service will be determined by the current report of the bonded indebtedness of the charter district as reported by the MAC of Texas or its successor as of the date of the application deadline.

(B) Solely for the purpose of this calculation, the debt service amounts for variable rate bonds will be those that are published in the final official statement or, if there is no official statement, debt service amounts based on the maximum rate permitted by the bond resolution or other bond proceeding that establishes a maximum interest rate for the bonds.

(C) Annual debt service includes required payments into a sinking fund as authorized under 26 United States Code (USC) §54A(d)(4)(C), provided that the sinking fund is maintained by a trustee or other entity approved by the commissioner that is not under the control or common control of the charter district.

(3) Application deadline--The last business day of the month in which an application for a guarantee is filed. Applications must be submitted electronically through the website of the MAC of Texas or its successor by 5:00 p.m. on the last business day of the month to be considered in that month's application processing. This application deadline does not apply to applications for issues to refund bonds previously guaranteed by the Bond Guarantee Program.

(4) Board resolution--The resolution adopted by the governing body of an open-enrollment charter holder that:

(A) requests guarantee of bonds through the Bond Guarantee Program; and

(B) authorizes the charter holder's administration to pursue bond financing.

(5) Bond--A debt security issuance approved by the attorney general, issued under the TEC, Chapter 53, to provide long-term financing with a maturity schedule of at least three years.

(6) Bond Guarantee Program (BGP)--The guarantee program that is described by this section and established under the TEC, Chapter 45, Subchapter C.

(7) Bond resolution--The resolution, indenture, or other instrument adopted by the governing body of an issuer of bonds authorizing the issuance of bonds for the benefit of a charter district.

(8) Charter district--An open-enrollment charter holder designated as a charter district under subsection (e) of this section, as authorized by the TEC, §12.135.

(9) Combination issue--An issuance of bonds for which an application for a guarantee is filed that includes both a new money portion and a refunding portion, as permitted by the TEC, Chapter 53. The eligibility of combination issues for the guarantee is limited by the eligibility of the new money and refunding portions as defined in this subsection.

(10) Debt service coverage ratio--A measure of a charter district's ability to pay interest and principal with cash generated from current operations. The debt service coverage ratio (total debt service coverage on all long-term capital debt) equals the excess of revenues over expenses plus interest expense plus depreciation expense plus amortization expense, all divided by annual debt service. The calculation can be expressed as: (Excess of revenues over expenses + interest expense + depreciation expense + amortization expense)/ annual debt service.

(11) Depreciation expense--The audited amount of depreciation that was expensed during the fiscal period.

(12) Educational facility--A classroom building, laboratory, science building, faculty or administrative office building, or other facility used exclusively for the conduct of the educational and administrative functions of a charter school.

(13) Foundation School Program (FSP)--The program established under the TEC, Chapters 41, 42, and 46, or any successor program of state appropriated funding for school districts in the state of Texas.

(14) Long-term debt--Any debt of the charter district that has a term of greater than three years and is secured on a parity basis with the bonds to be guaranteed.

(15) Maximum annual debt service--As of any date of calculation, the highest annual debt service requirements with respect to all outstanding long-term debt for any succeeding fiscal year.

(16) Nationally recognized investment rating firm--An investment rating firm that is designated by the United States Securities and Exchange Commission as a nationally recognized statistical rating organization (NRSRO) and is demonstrating that it has:

(A) had its current NRSRO designation for at least three consecutive years;

(B) provided credit ratings to each of the following:

(i) fifteen or more fixed income securities denominated in United States dollars and issued during the immediately preceding three years;

(ii) ten or more school districts in the United States;

(iii) one or more charter schools in the United States; and

(C) a documented separation of duties between employees involved in credit analysis and employees involved in business relationships with clients.

(17) New money issue--An issuance of revenue bonds under the TEC, Chapter 53, for the purposes of:

(A) the acquisition, construction, repair, or renovation of an educational facility of an open-enrollment charter school and equipping real property of an open-enrollment charter school, provided that any bonds for student or teacher housing must meet the following criteria:

(i) the proposed housing is contemplated in the charter or charter application; and

(ii) the proposed housing is an essential and integral part of the educational program included in the charter contract; or

(B) the refinancing of one or more promissory notes executed by an open-enrollment charter school, each in an amount in excess of $500,000, that evidence one or more loans from a national or regional bank, nonprofit corporation, or foundation that customarily makes loans to charter schools, the proceeds of which loans were used for a purpose described in subparagraph (A) of this paragraph; or

(C) both.

(18) Open-enrollment charter--This term has the meaning assigned in §100.1001 of this title (relating to Definitions).

(19) Open-enrollment charter holder--This term has the meaning assigned to the term "charter holder" in the TEC, §12.1012.

(20) Open-enrollment charter school--This term has the meaning assigned to the term "charter school" in §100.1001 of this title.

(21) Open-enrollment charter school campus--This term has the meaning assigned to the term "charter school campus" in §100.1001 of this title.

(22) Refunding issue--An issuance of bonds under the TEC, Chapter 53, for the purpose of refunding:

(A) bonds that have previously been issued under that chapter and have previously been approved by the attorney general; or

(B) bonds that have previously been issued for the benefit of an open-enrollment charter school under Vernon's Civil Statutes, Article 1528m, and have previously been approved by the attorney general.

(c) Bond eligibility.

(1) Only those combination, new money, and refunding issues as defined in subsection (b)(9), (17), and (22), respectively, of this section are eligible to receive the guarantee. The bonds must, without the guarantee, be rated as investment grade by a nationally recognized investment rating firm and must be issued on or after September 28, 2011.

(2) Refunding issues must comply with the following requirements to retain eligibility for the guarantee for the refunding bonds.

(A) As with any open-enrollment charter holder applying for approval for the guarantee, the charter holder for which the refunding bonds are being issued must meet the requirements for charter district designation specified in subsection (e)(2) of this section and the requirements for initial approval specified in subsection (f)(3)(A) of this section.

(B) The charter holder must demonstrate that issuing the refunding bond(s) will result in a present value savings to the charter holder. Present value savings is determined by computing the net present value of the difference between each scheduled payment on the original bonds and each scheduled payment on the refunding bonds. Present value savings must be computed at the true interest cost of the refunding bonds. If the commissioner approves refunding bonds for the guarantee based on evidence of present value savings but at the time of the sale of the refunding bonds a present value savings is not realized, the commissioner may revoke the approval of the bonds for the guarantee.

(C) For issues that refund bonds previously guaranteed by the BGP, the charter holder must demonstrate that the refunding bond or bonds will not have a maturity date later than the final maturity date of the bonds being refunded.

(D) The refunding transaction must comply with the provisions of subsection (f)(5)(A)-(C) and (E) of this section.

(3) If an open-enrollment charter holder files an application for a combination issue, the application will be treated as an application for a single issue for the purposes of eligibility for the guarantee. A guarantee for the combination issue will be awarded only if both the new money portion and the refunding portion meet all of the applicable eligibility requirements described in this section. As part of its application, the charter holder making the application must present data that demonstrate compliance for both the new money portion of the issue and the refunding portion of the issue.

(4) If the commissioner determines that an applicant has deliberately misrepresented information related to a bond issue to secure a guarantee, the commissioner must revoke the approval of the bonds for the guarantee.

(d) Determination of Permanent School Fund (PSF) capacity to guarantee bonds for charter districts.

(1) Each month the commissioner will estimate the available capacity of the PSF to guarantee bonds for charter districts. This capacity is determined by multiplying [taking] the net capacity determined under §33.65 of this title (relating to Bond Guarantee Program for School Districts) by [, subtracting the total amount of outstanding guaranteed bonds, and then determining the percentage of the difference that is equal to] the percentage of the number of students enrolled in open-enrollment charter schools in this state compared to the total number of students enrolled in all public schools in this state, as determined by the commissioner. The commissioner's determination of the number of students enrolled in open-enrollment charter schools in this state and the number of students enrolled in all public schools in this state is based on the enrollment data submitted by school districts and charter schools to the Public Education Information Management System (PEIMS) during the most recent fall PEIMS submission. Annually, the commissioner will post the applicable student enrollment numbers and the percentage of students enrolled in open-enrollment charter schools on the Texas Education Agency (TEA) web page related to the BGP. The commissioner shall hold 5.0% of the charter school available capacity in reserve each month.

(2) For state fiscal years 2018 through 2022, the available capacity of the PSF to guarantee bonds for charter districts shall follow the schedule described in TEC, §45.0532(b-1), unless the SBOE adopts a different percentage for a specific fiscal year or years in accordance with TEC, §45.0532(b-2) and (b-3). This paragraph expires September 1, 2022.

(3) [(2)] Up to half of the total capacity of the PSF to guarantee bonds for charter districts may be used to guarantee charter district refunding bonds.

(e) Application process and application processing. An open-enrollment charter holder must apply to the commissioner for the guarantee of eligible bonds by submitting an application electronically through the website of the MAC of Texas or its successor. Before an application for the guarantee will be considered, a charter holder must first be determined by the commissioner to meet criteria for designation as a charter district for purposes of this section. The application submitted through the website of the MAC of Texas or its successor will serve as both a charter holder's application for designation as a charter district and its application for the guarantee.

(1) Application submission and fee. As part of its application, an open-enrollment charter holder must submit the information required under the TEC, §45.055(b), and this section and any additional information the commissioner may require. The application and all additional information required by the commissioner must be received before the application will be processed. The open-enrollment charter holder may not submit an application for a guarantee before the governing body of the charter holder adopts a board resolution as defined in subsection (b)(4) of this section.

(A) The amount of the application fee is the amount specified in §33.65 of this title.

(B) The fee is due at the time the application for charter district designation and the guarantee is submitted. An application will not be processed until the fee has been remitted according to the directions provided on the website of the MAC of Texas or its successor and received by the TEA.

(C) The fee will not be refunded to an applicant that:

(i) is designated a charter district but is not approved for the guarantee; or

(ii) receives approval for the guarantee but does not sell its bonds before the expiration of its approval for the guarantee.

(D) The fee may be transferred to a subsequent application for the guarantee by a charter district that has been approved for the guarantee if the charter district withdraws its application and submits the subsequent application before the expiration of its approval for the guarantee.

(2) Eligibility to be designated a charter district.

(A) To be designated a charter district and have its application for the guarantee considered by the commissioner, an open-enrollment charter holder must:

(i) have operated at least one open-enrollment charter school in the state of Texas for at least three years and have had students enrolled in the school for those three years;

(ii) identify in its application for which open-enrollment charter school and, if applicable, for which open-enrollment charter school campus the bond funds will be used;

(iii) in its application, agree that the bonded indebtedness for which the guarantee is sought will be undertaken as an obligation of all entities under common control of the open-enrollment charter holder and agree that all such entities will be liable for the obligation if the open-enrollment charter holder defaults on the bonded indebtedness, provided that an entity that does not operate a charter school in Texas is subject to this subparagraph only to the extent that it has received state funds from the open-enrollment charter holder;

(iv) not have an unresolved corrective action that is more than one year old, unless the open-enrollment charter holder has taken appropriate steps, as determined by the commissioner, to begin resolving the action;

(v) have had, for the past three years, an audit as required by §100.1047 of this title (relating to Accounting for State and Federal Funds) that was completed with unqualified or unmodified opinions;

(vi) have received an investment grade credit rating from a nationally recognized investment rating firm as defined in subsection (b)(16) of this section as specified by the TEC, §45.0541, within the last year; and

(vii) not have materially violated a covenant relating to debt obligation in the immediately preceding three years.

(B) For an open-enrollment charter holder to be designated a charter district and have its application for the guarantee considered by the commissioner, each open-enrollment charter school operated under the charter must not have an accreditation rating of Not Accredited-Revoked and must have a rating of met standard or met alternative standard as its most recent state academic accountability rating. However, if an open-enrollment charter school operated under the charter is not yet rated because the school is in its first year of operation, that fact will not impact the charter holder's eligibility to be designated a charter district and apply for the guarantee.

(3) Application processing. All applications received during a calendar month that were submitted by open-enrollment charter holders determined to meet the criteria in paragraph (2) of this subsection will be held until the 15th business day of the subsequent month. On the 15th business day of each month, the commissioner will announce the results of the pro rata allocation of available capacity, if pro rata allocation is necessary, and process applications for initial approval for the guarantee, up to the available capacity as of the application deadline, subject to the requirements of this section.

(A) If the available capacity is insufficient to guarantee the total value of the bonds for all applicant charter districts, the commissioner will allocate the available capacity on a pro rata basis to each applicant charter district. For each applicant, the commissioner will determine the percentage of the total amount of all applicants' proposed bonds that the applicant's proposed bonds represent. The commissioner will then allocate to that applicant the same percentage of the available capacity, but in no event will an allocation be equal to an amount less than $500,000.

(B) The actual guarantee of the bonds is subject to the approval process prescribed in subsection (f) of this section.

(C) An applicant charter district is ineligible for consideration for the guarantee if its lowest credit rating from any nationally recognized investment rating firm as defined in subsection (b)(16) of this section is the same as or higher than that of the PSF.

(4) Late application. An application received after the application deadline will be considered a valid application for the subsequent month, unless withdrawn by the submitting open-enrollment charter holder before the end of the subsequent month.

(5) Notice of application status. Each open-enrollment charter holder that submits a valid application will be notified of the application status within 15 business days of the application deadline.

(6) Reapplication. If an open-enrollment charter holder does not receive designation as a charter district, does not receive approval for the guarantee, or for any reason does not receive approval of the bonds from the attorney general within the time period specified in subsection (f)(5) of this section, the charter holder may reapply in a subsequent month. An application that was denied approval for the guarantee or that was submitted by a charter holder that the commissioner determined did not meet the criteria for charter district designation will not be retained for consideration in subsequent months. A reapplication fee will be required unless the conditions described in subsection (e)(1)(D) of this section apply to the charter holder.

(f) Approval for the guarantee; charter district responsibilities on receipt of approval.

(1) Approval for the guarantee and charter renewal or amendment.

(A) If an open-enrollment charter holder applies for the guarantee within the 12 months before the charter holder's charter is due to expire, application approval will be contingent on successful renewal of the charter, and the bonds for which the open-enrollment charter holder is applying for the guarantee may not be issued before the successful renewal of the charter.

(B) If an open-enrollment charter holder proposes to use the proceeds of the bonds for which it is applying for the guarantee for an expansion that requires a charter amendment, application approval will be contingent on approval of the amendment, and the bonds may not be issued before approval of the amendment.

(2) Initial and final approval provisions.

(A) The commissioner may require an applicant charter district to obtain final approval for the guarantee as described in paragraph (4) of this subsection if:

(i) during the monthly estimation of PSF capacity described in §33.65 of this title, the commissioner determines that the available capacity of the PSF as described in §33.65 of this title is 10% or less; or

(ii) during the monthly estimation of the available capacity of the PSF to guarantee bonds for charter districts described in subsection (d) of this section, the commissioner determines that the available capacity of the PSF to guarantee bonds for charter districts is 10% or less.

(B) If the commissioner has not made such a determination:

(i) the commissioner will consider the initial approval described in paragraph (3) of this subsection as both the initial and final approval; and

(ii) an applicant charter district that has received notification of initial approval for the guarantee, as described in paragraph (3) of this subsection, may consider that notification as notification of initial and final approval for the guarantee and may complete the sale of the applicable bonds.

(3) Initial approval.

(A) The following provisions apply to all applications for the guarantee, regardless of whether an application is for a new money, refunding, or combination issue. Under the TEC, §45.056, the commissioner will investigate the financial status of the applicant charter district and the accreditation status of all open-enrollment charter schools operated under the charter. For the charter district's application to be eligible for initial approval by the commissioner, each open-enrollment charter school operated under the charter must be accredited, and the charter district must be financially sound. The commissioner's review will include review of the following:

(i) the purpose of the bond issue;

(ii) the accreditation status, as defined by §97.1055 of this title (relating to Accreditation Status), of all open-enrollment charter schools operated under the charter in accordance with the following, except that, if an open-enrollment charter school operated under the charter has not yet received an accreditation rating because it is in its first year of operation, that fact will not impact the charter district's eligibility for consideration for the guarantee:

(I) if the accreditation status of all open-enrollment charter schools operated under the charter is Accredited, the charter district will be eligible for consideration for the guarantee;

(II) if the accreditation status of any open-enrollment charter school operated under the charter is Accredited-Warned or Accredited-Probation, the commissioner will investigate the underlying reason for the accreditation rating to determine whether the accreditation rating is related to the open-enrollment charter school's financial soundness. If the accreditation rating is related to the open-enrollment charter school's financial soundness, the charter district will not be eligible for consideration for the guarantee; or

(III) if the accreditation status of any open-enrollment charter school operated under the charter is Not Accredited-Revoked, the charter district will not be eligible for consideration for the guarantee;

(iii) the charter district's financial status and stability, regardless of each open-enrollment charter school's accreditation rating, including approval of the bonds by the attorney general under the provisions of the TEC, §53.40;

(iv) whether the TEA has required the charter district to submit a financial plan under §109.1101 of this title (relating to Financial Solvency Review) in the last three years;

(v) the audit history of the charter district and of all open-enrollment charter schools operated under the charter;

(vi) the charter district's compliance with statutes and rules of the TEA and with applicable state and federal program requirements and the compliance of all open-enrollment charter schools operated under the charter with these statutes, rules, and requirements;

(vii) any interventions and sanctions to which the charter district has been subject; to which any of the open-enrollment charter schools operated under the charter has been subject; and, if applicable, to which any of the open-enrollment charter school campuses operated under the charter has been subject;

(viii) formal complaints received by the TEA that have been made against the charter district, against any of the open-enrollment charter schools operated under the charter, or against any of the open-enrollment charter school campuses operated under the charter;

(ix) the state academic accountability rating of all open-enrollment charter schools operated under the charter and the campus ratings of all open-enrollment charter school campuses operated under the charter;

(x) any unresolved corrective actions that are less than one year old; and

(xi) whether the charter district is considered a high-risk grantee by the TEA office responsible for planning, grants, and evaluation.

(B) The commissioner will limit approval for the guarantee to a charter district with a historical debt service coverage ratio, based on annual debt service, of at least 1.1 for the most recently completed fiscal year and a projected debt service coverage ratio, based on projected revenues and expenses and maximum annual debt service, of at least 1.2. If the bond issuance for which an application has been submitted is the charter district's first bond issuance, the commissioner will evaluate only projected debt service coverage. Projections of revenues and expenses are subject to approval by the commissioner.

(C) The commissioner will grant or deny initial approval for the guarantee based on the review described in subparagraph (A) of this paragraph and the limitation described in subparagraph (B) of this paragraph and will provide an applicant charter district whose application has received initial approval for the guarantee written notice of initial approval.

(4) Final approval. The provisions of this paragraph apply only as described in paragraph (2) of this subsection. A charter district must receive final approval before completing the sale of the bonds for which the charter district has received notification of initial approval.

(A) A charter district that has received initial approval must provide a written notice to the TEA two business days before issuing a preliminary official statement (POS) for the bonds that are eligible for the guarantee or two business days before soliciting investment offers, if the bonds will be privately placed without the use of a POS.

(i) The charter district must receive written confirmation from the TEA that the capacity continues to be available and must continue to meet the requirements of subsection (e)(2) of this section before proceeding with the public or private offer to sell bonds.

(ii) The TEA will provide this notification within one business day of receiving the notice of the POS or notice of other solicitation offers to sell the bonds.

(B) A charter district that received confirmation from the TEA in accordance with subparagraph (A) of this paragraph must provide written notice to the TEA of the placement of an item to approve the bond sale on the agenda of a meeting of the bond issuer's board of directors no later than two business days before the meeting. If the bond sale is completed pursuant to a delegation by the issuer to a pricing officer or committee, notice must be given to the TEA no later than two business days before the execution of a bond purchase agreement by such pricing officer or committee.

(i) The charter district must receive written confirmation from the TEA that the capacity continues to be available for the bond sale before the approval of the sale by the bond issuer or by the pricing officer or committee.

(ii) The TEA will provide this notification within one business day before the date that the bond issuer expects to complete the sale by official action of the bond issuer or of a pricing officer or committee.

(C) The TEA will process requests for final approval from charter districts that have received initial approval on a first come, first served basis. Requests for final approval must be received before the expiration of the initial approval.

(D) A charter district may provide written notification as required by this paragraph by facsimile transmission, by email, or in another manner prescribed by the commissioner.

(5) Charter district responsibilities on receipt of approval.

(A) Once a charter district is awarded initial approval for the guarantee, each issuance of the bonds must be approved by the attorney general within 180 days of the date of the letter granting the approval for the guarantee. The initial approval for the guarantee will expire at the end of the 180-day period. The commissioner may extend the 180-day period, based on extraordinary circumstances, on receiving a written request from the charter district or the attorney general before the expiration of the 180-day period.

(B) If applicable, the charter district must comply with the provisions for final approval described in paragraph (4) of this subsection to maintain approval for the guarantee.

(C) If the bonds are not approved by the attorney general within 180 days of the date of the letter granting the approval for the guarantee, the commissioner will consider the application withdrawn, and the charter district must reapply for a guarantee.

(D) A charter district may not represent bonds as guaranteed for the purpose of pricing or marketing the bonds before the date of the letter granting approval for the guarantee.

(E) The charter district must provide evidence of the final investment grade rating of the bonds to the TEA after receiving initial approval but before the distribution of the preliminary official statement for the bonds or, if the bonds are offered in a private placement, before approval of the bond sale by the governing body of the charter district.

(F) A charter district must identify by legal description any educational facility purchased or improved with bond proceeds no later than 30 days after entering into a binding commitment to expend bond proceeds for that purpose. The charter district must identify at that time whether and to what extent debt service will be paid with any source of revenue other than state funds.

(g) Allocation of specific holdings. If necessary to successfully operate the BGP, the commissioner may allocate specific holdings of the PSF to specific bond issues guaranteed under this section. This allocation will not prejudice the right of the State Board of Education (SBOE) to dispose of the holdings according to law and requirements applicable to the fund; however, the SBOE will ensure that holdings of the PSF are available for a substitute allocation sufficient to meet the purposes of the initial allocation. This allocation will not affect any rights of the bond holders under law.

(h) Defeasance. The guarantee will be completely removed when bonds guaranteed by the BGP are defeased, and such a provision must be specifically stated in the bond resolution. If bonds guaranteed by the BGP are defeased, the charter district must notify the commissioner in writing within ten calendar days of the action.

(i) Payments. For purposes of the provisions of the TEC, Chapter 45, Subchapter C, matured principal and interest payments are limited to amounts due on guaranteed bonds at scheduled maturity, at scheduled interest payment dates, and at dates when bonds are subject to mandatory redemption, including extraordinary mandatory redemption, in accordance with their terms. All such payment dates, including mandatory redemption dates, must be specified in the bond order or other document pursuant to which the bonds initially are issued. Without limiting the provisions of this subsection, payments attributable to an optional redemption or a right granted to a bondholder to demand payment on a tender of such bonds according to the terms of the bonds do not constitute matured principal and interest payments.

(j) Guarantee restrictions. The guarantee provided for eligible bonds under the provisions of the TEC, Chapter 45, Subchapter C, is restricted to matured bond principal and interest. The guarantee applies to all matured interest on eligible bonds, whether the bonds were issued with a fixed or variable interest rate and whether the interest rate changes as a result of an interest reset provision or other bond resolution provision requiring an interest rate change. The guarantee does not extend to any obligation of a charter district under any agreement with a third party relating to bonds that is defined or described in state law as a "bond enhancement agreement" or a "credit agreement," unless the right to payment of such third party is directly as a result of such third party being a bondholder.

(k) Notice of default. A charter district that has determined that it is or will be unable to pay maturing or matured principal or interest on a guaranteed bond must immediately, but not later than the fifth business day before the maturing or matured principal or interest becomes due, notify the commissioner.

(l) Charter District Bond Guarantee Reserve Fund. The Charter District Bond Guarantee Reserve Fund is a special fund in the state treasury outside the general revenue fund and is managed by the SBOE in the same manner that the PSF is managed by the SBOE.

(m) (l)] Payment from Charter District Bond Guarantee Reserve Fund and PSF.

(1) Immediately after the commissioner receives the notice described in subsection (k) of this section, the commissioner will notify the TEA division responsible for administering the PSF of the notice of default and instruct the comptroller to transfer from the Charter District Bond Guarantee Reserve Fund established under the TEC, §45.0571, to the charter district's paying agent the amount necessary to pay the maturing or matured principal or interest.

(2) If money in the reserve fund is insufficient to pay the amount due on a bond under paragraph (1) of this subsection, the commissioner will instruct the comptroller to transfer from the appropriate account in the PSF to the charter district's paying agent the amount necessary to pay the balance of the unpaid maturing or matured principal or interest.

(3) Immediately after receipt of the funds for payment of the principal or interest, the paying agent must pay the amount due and forward the canceled bond or coupon to the comptroller. The comptroller will hold the canceled bond or coupon on behalf of the fund or funds from which payment was made.

(4) To ensure that the charter district reimburses the reserve fund and the PSF, if applicable, the commissioner will withhold from state funds otherwise payable to the charter district the amount that the charter district owes in reimbursement.

(5) Funds intercepted for reimbursement under paragraph (4) of this subsection will be used to fully reimburse the PSF before any funds reimburse the reserve fund. If the funds intercepted under paragraph (4) of this subsection are insufficient to fully reimburse the PSF with interest, subsequent payments into the reserve fund will first be applied to any outstanding obligation to the PSF.

(6) Following full reimbursement to the reserve fund and the PSF, if applicable, with interest, the comptroller will further cancel the bond or coupon and forward it to the charter district for which payment was made. Interest will be charged at the rate determined under the Texas Government Code (TGC), §2251.025(b). Interest will accrue as specified in the TGC, §2251.025(a) and (c). For purposes of this section, the "date the payment becomes overdue" that is referred to in the TGC, §2251.025(a), is the date that the comptroller makes the payment to the charter district's paying agent.

(n) [(m)] Bonds not accelerated on default. If a charter district fails to pay principal or interest on a guaranteed bond when it matures, other amounts not yet mature are not accelerated and do not become due by virtue of the charter district's default.

(o) [(n)] Reimbursement of Charter District Bond Guarantee Reserve Fund or PSF. If payment from the Charter District Bond Guarantee Reserve Fund or the PSF is made on behalf of a charter district, the charter district must reimburse the amount of the payment, plus interest, in accordance with the requirements of the TEC, §45.061.

(p) [(o)] Repeated failure to pay. If a total of two or more payments are made under the BGP on the bonds of a charter district, the commissioner may take action in accordance with the provisions of the TEC, §45.062.

(q) [(p)] Report on the use of funds and confirmation of use of funds by independent auditor. A charter district that issues bonds approved for the guarantee must report to the TEA annually in a form prescribed by the commissioner on the use of the bond funds until all bond proceeds have been spent. The charter district's independent auditor must confirm in the charter district's annual financial report that bond funds have been used in accordance with the purpose specified in the application for the guarantee.

(r) [(q)] Failure to comply with statute or this section. An open-enrollment charter holder's failure to comply with the requirements of the TEC, Chapter 45, Subchapter C, or with the requirements of this section, including by making any material misrepresentations in the charter holder's application for charter district designation and the guarantee, constitutes a material violation of the open-enrollment charter holder's charter.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on December 4, 2017.

TRD-201704929

Cristina De La Fuente-Valadez

Director, Rulemaking

Texas Education Agency

Earliest possible date of adoption: January 14, 2018

For further information, please call: (512) 475-1497


CHAPTER 66. STATE ADOPTION AND DISTRIBUTION OF INSTRUCTIONAL MATERIALS

The State Board of Education (SBOE) proposes amendments to §§66.27, 66.28, 66.30, 66.41, 66.66, 66.67, 66.72, 66.75, and 66.107, concerning state adoption and distribution of instructional materials. The proposed amendments would update rules related to state review and adoption of instructional materials as well as ordering and distribution of instructional materials to align with recent legislative changes.

Senate Bill (SB) 810, 85th Texas Legislature, Regular Session, 2017, amended the Texas Education Code (TEC), §31.002, to change the term open-source instructional materials to open education resource instructional materials and update the definition for the term. SB 801, 85th Texas Legislature, Regular Session, 2017, amended the TEC, §31.023 and §31.035, to specify that instructional materials and supplemental instructional materials must be suitable for the subject and grade level and reviewed by academic experts in the subject and grade level.

The proposed amendments would also reflect changes relating to publishers, contracts, and updates to adopted instructional materials.

The SBOE approved the amendments for first reading and filing authorization at its November 10, 2017 meeting.

The proposed amendments would have no new procedural and reporting requirements. The proposed amendments would have no new locally maintained paperwork requirements.

FISCAL NOTE. Monica Martinez, associate commissioner for standards and support services, has determined that for the first five-year period the proposed amendments are in effect there will be no additional costs to state or local government as a result of enforcing or administering the proposed amendments. There is no effect on local economy for the first five years that the proposed amendments are in effect; therefore, no local employment impact statement is required under Texas Government Code, §2001.022. The proposed amendments do not impose a cost on regulated persons and, therefore, are not subject to Texas Government Code, §2001.0045.

GOVERNMENT GROWTH IMPACT. The TEA has determined that the proposed amendments do not have a government growth impact pursuant to Texas Government Code, §2001.0221.

PUBLIC BENEFIT/COST NOTE. Ms. Martinez has determined that for each year of the first five years the proposed amendments are in effect, the public benefit anticipated as a result of enforcing the amendments will be to allow the SBOE rules to reflect current statutory requirements regarding instructional materials. There is no anticipated economic cost to persons who are required to comply with the proposed amendments.

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. 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 rules@tea.texas.gov. A request for a public hearing on the proposed amendments 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.

SUBCHAPTER B. STATE ADOPTION OF INSTRUCTIONAL MATERIALS

19 TAC §§66.27, 66.28, 66.30, 66.41, 66.66, 66.67, 66.72, 66.75

STATUTORY AUTHORITY. The amendments are proposed under the Texas Education Code (TEC), §31.002, as amended by SB 810, 85th Texas Legislature, Regular Session, 2017, which defines open education resource instructional material; TEC, §31.003, which authorizes the State Board of Education (SBOE) to adopt rules for the adoption, requisition, distribution, care, use, and disposal of instructional materials; TEC, §31.023, as amended by SB 801, 85th Texas Legislature, Regular Session, 2017, which requires the SBOE to adopt a list of instructional materials that meet applicable physical specifications, contain material covering at least half of the applicable Texas Essential Knowledge and Skills (TEKS) in the student version and in the teacher version, are suitable for the subject and grade level for which the instructional material was submitted, and have been reviewed by academic experts in the subject and grade level for which the instructional material was submitted; TEC, §31.035, as amended by SB 801, 85th Texas Legislature, Regular Session, 2017, which allows the SBOE to adopt supplemental instructional materials that are not on the adopted list if the material covers one or more primary focal points or topics of a subject in the required curriculum, is not designed to serve as the only instructional material for the course, meets applicable physical specifications, is free from factual errors, is suitable for the subject and grade level for which the instructional material was submitted, and has been reviewed by academic experts in the subject and grade level for which the instructional material was submitted. The statute requires the SBOE to identify the TEKS that are covered by the supplemental instructional material and requires the material to comply with the review and adoption cycle provisions; and HB 3526, Section 5, 85th Texas Legislature, Regular Session, 2017, which changes the name of the instructional materials allotment to the technology and instructional materials allotment.

CROSS REFERENCE TO STATUTE. The amendments implement the Texas Education Code, §31.002, as amended by Senate Bill (SB) 810, 85th Texas Legislature, Regular Session, 2017; §31.003; §31.023, as amended by SB 801, 85th Texas Legislature, Regular Session, 2017; §31.035, as amended by SB 801, 85th Texas Legislature, Regular Session, 2017, and House Bill (HB) 3526, Section 5, 85th Texas Legislature, Regular Session 2017.

§66.27.Proclamation, Public Notice, and Schedule for Adopting Instructional Materials.

(a) Texas Education Code (TEC), §31.002, defines instructional materials as content that conveys the essential knowledge and skills of a subject in the public school curriculum through a medium or a combination of media for conveying information to a student. The term includes a book; supplementary materials; a combination of a book, workbook, and supplementary materials; computer software; magnetic media; DVD; CD-ROM; computer courseware; on-line services; or an electronic medium or other means of conveying information to the student or otherwise contributing to the learning process through electronic means, including open education resource [open-source ] instructional material.

(b) Upon the adoption of revised Texas essential knowledge and skills (TEKS), the State Board of Education (SBOE) shall conduct an investigation to determine the extent of the revisions and whether revisions have created a need for new instructional materials.

(c) The SBOE shall issue a proclamation calling for instructional materials according to the review and adoption cycle adopted by the SBOE if the investigation required in subsection (b) of this section results in the determination that a proclamation is necessary. The proclamation shall serve as notice to all publishers and to the public that bids to furnish new materials to the state are being invited and shall call for:

(1) new instructional materials aligned to all of the TEKS for a specific subject and grade level or course(s) and to TEC, §28.002(h), as it relates to that specific subject in understanding the importance of patriotism and functioning productively in a free enterprise society with appreciation for the basic democratic values of our state and national heritage;

(2) supplemental material aligned to new or expanded TEKS for a specific subject and grade level or course(s) and to TEC, §28.002(h), as it relates to that specific subject in understanding the importance of patriotism and functioning productively in a free enterprise society with appreciation for the basic democratic values of our state and national heritage;

(3) new information demonstrating alignment of current instructional materials to the revised TEKS for a specific subject and grade level or course(s) and to TEC, §28.002(h), as it relates to that specific subject in understanding the importance of patriotism and functioning productively in a free enterprise society with appreciation for the basic democratic values of our state and national heritage; or

(4) any combination of the calls described by paragraphs (1)-(3) of this subsection.

(d) The essential knowledge and skills adopted in this title effective in the year in which instructional materials are intended to be made available in classrooms are the SBOE's official rule governing essential knowledge and skills that shall be used to evaluate instructional materials submitted for consideration under the corresponding proclamation.

(e) The essential knowledge and skills that will be used to evaluate instructional materials submitted for consideration under a proclamation and a copy of each proclamation issued by the SBOE may be accessed from the Texas Education Agency website and are available for examination during regular office hours, 8:00 a.m. to 5:00 p.m., except holidays, Saturdays, and Sundays, at the Texas Education Agency, 1701 North Congress Avenue, Austin, Texas 78701.

(f) Proclamations calling for supplemental materials or new information only shall be issued at least 12 months before the scheduled adoption of instructional materials. Proclamations that include a call for complete new materials to cover all of the TEKS shall be issued at least 18 months before the scheduled adoption of the new instructional materials.

(g) Each proclamation shall contain the following:

(1) information about and reference to essential knowledge and skills in each subject for which bids are being invited;

(2) the requirement that a publisher of adopted instructional materials for a grade level other than prekindergarten must submit an electronic pre-adoption sample of the instructional materials as required by the TEC, §31.027(a) and (b), and may not submit a print sample copy;

(3) the requirement that electronic samples include a word search feature;

(4) the requirement that publishers file with the Texas Education Agency (TEA) print samples, electronic samples in an open file format or closed format, or galley proofs for use by state review panels;

(5) the student enrollment of the courses or grade levels called for, to the extent that it is available, for the school year prior to the year in which the proclamation is issued;

(6) specifications for providing computerized files to produce braille versions of adopted instructional materials;

(7) specifications for ensuring that electronic instructional materials are fully accessible to students with disabilities;

(8) a schedule of adoption procedures; and

(9) an option for the submission of open education resource [open-source] instructional materials that are available for use by the state without charge on the same basis as instructional materials offered for sale.

(h) The proclamation shall require the instructional materials submissions to cover:

(1) content essential knowledge and skills for the subject area and grade level or course for which the materials are intended:

(A) at least once in the student text narrative; and

(B) once in an end-of-section review exercise, an end-of-chapter activity, or a unit test; and

(2) process essential knowledge and skills:

(A) at least once in the student text narrative and once in an end-of-section review exercise, an end-of-chapter activity, or a unit test; or

(B) twice in an end-of-section review exercise, an end-of-chapter activity, or a unit test.

(i) A draft copy of the proclamation shall be provided to each member of the SBOE and posted on the TEA website, and the TEA shall solicit input regarding the draft proclamation prior to its scheduled adoption by the SBOE. Any revisions recommended as a result of input from publishers shall be presented to the SBOE along with the subsequent draft of the proclamation.

(j) If the SBOE determines that good cause as defined by the SBOE exists, the SBOE may adopt an emergency, supplementary, or revised proclamation without complying with the timelines and other requirements of this section.

(k) The SBOE may issue a proclamation for instructional materials eligible for midcycle review. The midcycle adoption process shall follow the same procedures as the regular adoption except to the extent specified in this subsection.

(1) The midcycle proclamation shall include a fee not to exceed $10,000 for each program or system of instructional materials intended for a certain subject area and grade level or course submitted for midcycle review. Publishers participating in the midcycle review process are responsible for all expenses incurred by their participation.

(2) A publisher who intends to offer instructional materials for midcycle review shall commit to provide the instructional materials to school districts in the manner specified by the publisher. The manner in which instructional materials are provided may include:

(A) providing the instructional materials to any district in a regional education service center area identified by the publisher; or

(B) providing a certain maximum number of instructional materials specified by the publisher.

(3) The publisher of instructional materials submitted for midcycle review shall enter into a contract with the SBOE for a term that ends at the same time as any contract entered into by the SBOE for instructional materials for the same subject and grade level.

(4) The publisher of instructional materials submitted for midcycle review is not required to provide samples to education service centers or school districts as specified in the TEC, §31.027.

(5) The publisher of instructional materials submitted for midcycle review shall make available one electronic examination copy of each submitted instructional materials product, including materials intended for teacher use and ancillaries, to each SBOE member upon that member's request, beginning on the date in the adoption schedule when publishers file their samples at the TEA. The state does not guarantee return of these SBOE-requested materials.

§66.28.Requirements for Publisher Participation.

(a) A publisher who intends to offer instructional materials for review shall comply with product standards and specifications.

(1) Hard copy instructional materials adopted by the State Board of Education (SBOE) shall comply with the standards in the latest edition of Manufacturing Standards and Specifications for Textbooks approved by the National Advisory Commission on Textbook Specifications, as applicable. If the commissioner of education determines that good cause exists, the commissioner may approve an exception for a specific portion or portions of this requirement.

(2) A publisher who offers electronic instructional materials must provide a report for each electronic component that verifies that the components follow Web Content Accessibility (WCAG) 2.0 AA standards and technical standards required by the Federal Rehabilitation Act, Section 508. The report must be prepared by an independent third party and be based on an audit testing the accessibility of a random sampling of pages as outlined in each proclamation. The number of pages to be audited to meet the requirements in the proclamation shall be determined by the publisher.

(3) A publisher who provides access to materials to students with disabilities through an alternate format shall include a link to that material on the entrance page of the main product.

(4) Materials delivered online shall meet minimum web-based standards.

(5) A publisher shall file a statement certifying instructional materials submitted for consideration will meet applicable product standards and specifications if adopted. Each statement must be made in a format designated by the commissioner of education, signed by a company official, and filed on or before the deadline specified in the schedule of adoption procedures in each proclamation.

(6) If, during the contract period, the commissioner of education determines that any adopted instructional materials have faulty manufacturing characteristics or are made of inferior materials, the materials shall be replaced by the publisher without cost to the state.

(7) A publisher of adopted instructional materials shall make available samples that meet the requirements of this subsection to an SBOE member upon that member's request, beginning on the date the publishers are required to submit their samples to the Texas Education Agency (TEA).

(b) A publisher who intends to offer instructional materials for adoption shall submit a statement of intent to bid on or before the date specified in the schedule of adoption procedures.

(1) The statement of intent to bid shall be submitted in a format designated by the commissioner of education.

(2) A publisher shall indicate in the statement of intent to bid the percentage of Texas essential knowledge and skills that the publisher believes are sufficiently covered in each instructional materials submission.

(3) A publisher shall specify hardware and system requirements [or special equipment] needed to review any item included in an instructional materials submission.

(4) Additions to a publisher's statement of intent to bid shall not be accepted after the deadline for filing statements of intent to bid, except as allowed in the schedule of adoption procedures included in a proclamation.

(5) A publisher who intends to offer instructional materials for midcycle review shall submit a statement of intent to bid and price information on or before the date specified in the schedule of adoption procedures under midcycle review. The statement of intent to bid must:

(A) specify the manner in which instructional materials will be provided to school districts as specified in §66.27(k)(2) of this title (relating to Proclamation, Public Notice, and Schedule for Adopting Instructional Materials); and

(B) include payment of the fee for review of instructional materials submitted for midcycle review.

(c) A publisher who intends to offer instructional materials for review shall comply with the following requirements for providing pre-adoption samples.

(1) Complete electronic samples of student and teacher components of instructional materials shall be provided to the TEA [Texas Education Agency (TEA)] and the 20 regional education service centers (ESCs) on or before the date specified in the schedule of adoption procedures in a proclamation. Samples submitted for review shall be complete versions of the final product and must include all content intended to be in the final product, not just the content identified in the correlations. Samples of electronic products must be fully functional for review purposes and meet any other specifications identified in the proclamation. The original sample submission must remain unchanged through the entire review and adoption process, though updated samples can be added to the publisher's submission. These samples are copyrighted by the publisher and are not to be downloaded for use in classrooms or for any purpose other than public review.

[(2) A publisher of instructional materials submitted for adoption shall make available samples that meet the requirements of subsection (a) of this section to an SBOE member upon that member's request, beginning on the date the publishers are required to submit their samples to the TEA.]

(2) [(3)] The TEA may request additional samples if they are needed. These samples shall be available for public review. Publishers of [Internet-based] instructional content accessed through the internet [submitted for review] shall provide appropriate information, such as locator and login information and passwords, required to ensure public access to their programs throughout the review period.

(3) [(4)] If the commissioner of education determines that good cause exists, the commissioner may extend the deadline for filing samples with ESCs. At its discretion, the SBOE may remove from consideration any materials proposed for adoption that were not properly supplied to the ESCs, the TEA, or SBOE members.

(4) [(5)] A publisher shall provide a complete description of all student and teacher components of an instructional materials submission along with the required electronic sample.

(5) [(6)] On request of a school district, a publisher shall provide an electronic sample of submitted instructional materials and may also provide print sample copies. A publisher of prekindergarten materials is not required to submit electronic samples of adopted prekindergarten instructional materials. Samples of adopted prekindergarten materials must match the format of the products to be provided to schools upon ordering.

(6) [(7)] A publisher of prekindergarten materials is not required to submit electronic samples of submitted prekindergarten instructional materials. Samples of submitted prekindergarten materials must match the format of the products to be provided to schools upon ordering.

(7) [(8)] One sample copy of each student and teacher component of an instructional materials submission shall be provided for each member of the appropriate state review panel in accordance with instructions provided by the TEA. Publishers have the option to file with the TEA print samples, electronic samples in an open file format or closed format, or galley proofs. An electronic sample of print instructional materials must be offered in a format that simulates the print or "view only" version and that does not contain links to external sources. To ensure that the evaluations of state review panel members are limited to student and teacher components submitted for adoption, publishers shall not provide ancillary materials or descriptions of ancillary materials to state review panel members.

(8) [(9)] On or before the deadline established in the schedule of adoption procedures, publishers shall submit correlations of instructional materials submitted for review with essential knowledge and skills required by the proclamation. Correlations shall be provided for materials designed for student use and materials designed for teacher use and must identify evidence of each student expectation addressed in the ways specified in §66.27(h) of this title. Correlations shall be submitted in a format designated by the commissioner of education.

(9) [(10)] The TEA, ESCs, and participating publishing companies shall work together to ensure that hardware or special equipment necessary for review of any item included in a student and/or teacher component of an instructional materials submission is available in each ESC. Participating publishers may be required to lend such hardware or special equipment to any member of a state review panel who does not have access to the necessary hardware or special equipment.

(10) [(11)] A publisher shall provide a list of all corrections required to be made to each student and teacher component of an instructional materials submission to bring them into compliance with applicable laws, rules, or the proclamation. The list must be in a format designated by the commissioner of education and filed on or before the deadline specified in the schedule of adoption procedures. If no corrections are necessary, the publisher shall file a statement to that effect in a format designated by the commissioner of education on or before the deadline in the schedule for submitting the list of corrections. On or before the deadline for submitting lists of corrections, publishers shall submit certification that all instructional materials have been edited for accuracy, content, and compliance with requirements of the proclamation.

(11) [(12)] One complete electronic sample copy in an open file format or closed format of each student and teacher component of adopted instructional materials that incorporate all corrections required by the SBOE shall be filed with the commissioner of education on or before the date specified in the schedule of adoption procedures. The complete sample copies filed with the TEA must be representative of the final program. In addition, each publisher shall file an affidavit signed by an official of the company verifying that all corrections required by the commissioner of education and SBOE have been made.

(12) [(13)] Publishers participating in the adoption process are responsible for all expenses incurred by their participation. The state does not guarantee return of sample instructional materials.

(d) A publisher who intends to offer instructional materials for adoption shall comply with the following bid requirements.

(1) Publishers shall file official bids with the commissioner of education according to the schedule of adoption procedures and in a manner designated by the commissioner.

(2) The official bid price of an instructional materials submission may exceed the price included with the statement of intent to bid filed under subsection (b) of this section.

(3) The official bid filed by a publisher shall include separate prices for each item included in an instructional materials submission. A publisher shall guarantee that individual items included in the student and/or teacher component are available for local purchase at the individual prices listed for the entire contract period.

(4) A publisher may submit supplemental bids with new package options or lower prices for existing packages or components according to the schedule of adoption procedures included in the proclamation. Supplemental bids may not be submitted for prices higher than were provided in the initial bids.

(5) Each instructional material or ancillary material that is offered as part of a bundle must also be available for purchase individually.

(e) A publisher who intends to offer instructional materials for adoption shall comply with the following additional requirements.

(1) A publisher shall submit to the TEA a signed affidavit including the following:

(A) certification that each individual whose name is listed as an author or contributor of the instructional materials contributed to the development of the instructional materials; and

(B) a general description of each author's or contributor's involvement in the development of the instructional materials.

(2) Student materials offered for possible adoption may include consumable components in subjects and grade levels in which consumable materials are not specifically called for in the proclamation. In such cases, publishers must meet the following conditions.

(A) The per student price of the materials must include the cost of replacement copies of consumable student components for the full term of the adoption and contract, including any extensions of the contract terms, but for no more than 12 years. The offer must be set forth in the publisher's official bid.

(B) The publisher's official bid shall contain a clear explanation of the terms of the sale, including the publisher's agreement to supply consumable student materials for the duration of the contract and extensions as noted in subparagraph (A) of this paragraph.

(C) The publisher and the school district shall determine the manner in which consumable student materials are supplied beyond the initial order year.

(f) A publisher may not submit instructional materials for review that have been authored or contributed to by a current employee of the TEA.

(g) A publisher who intends to offer instructional materials for adoption shall comply with additional requirements included in a proclamation related to submission of instructional materials for adoption.

§66.30.State Review Panels: Eligibility and Appointment.

(a) The commissioner of education shall determine the number of review panels needed to review instructional materials under consideration for adoption, the number of persons to serve on each panel, and, subject to this section, the process for selecting panel members.

(b) As determined by this section, panel members shall serve with the advice and consent of the member from whose district the panel member resides.

(c) The commissioner of education shall solicit nominations for possible appointees to state review panels from the State Board of Education (SBOE), school districts, open-enrollment charter schools, and educational organizations in the state. Nominations may be accepted from any Texas resident. Nominations shall not be made by or accepted from any publishers; hardware or software providers; authors; depositories; agents for publishers, hardware or software providers, authors, or depositories; or any person who holds any official position with a publisher, hardware or software provider, author, depository, or agent.

(d) A person nominated to serve on a state review panel shall disclose in any nomination or application, in a manner designated by the commissioner of education, his or her residence and whether currently or at any time in the 36 months preceding the appointment the person:

(1) was employed by or received funds from any individual or entity affiliated with a publishing company involved in or connected to the adoption of instructional materials;

(2) owned or controlled any interest valued at more than $5,000 in a privately owned publishing company or an entity receiving funds from a publishing company involved in or connected to the adoption of instructional materials or had direct ownership of stock of a publicly traded company involved in or connected to the adoption of instructional materials; or

(3) was employed by an institution of higher education that has submitted open education resource [open-source] instructional materials or is a publisher of instructional materials.

(e) The commissioner of education shall propose appointments to state review panels that, to the extent possible, as determined by the commissioner, include the following:

(1) individuals nominated by SBOE members;

(2) individuals representing a diverse mixture of gender, race, and SBOE districts;

(3) a majority of members with content expertise and experience;

(4) academic experts in each subject area for which instructional materials are being considered, giving priority to content-relevant educators and professors; and

(5) educators, parents, business and industry representatives, and employers.

(f) For purposes of this section, an "academic expert" is a person who:

(1) is a public school teacher with at least ten years of classroom teaching experience; or

(2) has at least a master's degree in the subject area; or

(3) is a professor at an accredited four-year institution of higher education in Texas.

(g) The commissioner of education shall notify the SBOE of the proposed appointments. The commissioner shall assign each appointee to the SBOE district in which he or she resides.

(h) An SBOE member may reject the proposed appointment of a panel member representing that member's SBOE district by notifying the commissioner via electronic mail within seven days of receiving the proposed appointment list. Failure to reject a proposed appointment within seven days constitutes consent for the appointment.

(i) After close of the seven-day period under subsection (h) of this section, the commissioner may propose additional members if necessary. The commissioner shall provide to the SBOE member who represents the district of residence for each additional proposed panel member the opportunity for review of additional members in accordance with the time period and rejection rules under subsection (h) of this section. The SBOE shall be notified of finalized appointments made by the commissioner of education to state review panels. The final list of appointees, their roles, and who nominated them shall be given to each member of the SBOE no later than the first public meeting following the finalization of the panels.

(j) The commissioner of education shall inform nominees who are not appointed to a state review panel that all members of the public may review instructional materials and give input during the public comment period.

(k) The role of each appointee shall be designated by the commissioner of education and disclosed to all appointees on each panel.

(l) Members of a state review panel may be removed at the discretion of the commissioner of education at any time prior to the completion of the review.

§66.41.Adding Content During the Panel Review.

(a) A publisher may add or edit content to instructional materials during the review and adoption process only to allow the materials to:

(1) meet the Texas essential knowledge and skills (TEKS) coverage percentage the publisher had specified on the correlation document submitted for that instructional product;

(2) meet 100% of the English language proficiency standards (ELPS) designated for the subject and grade for which the instructional product is intended; and

(3) address any factual errors.

(b) To be eligible to have content added as described in subsection (a) of this section, the material must, upon its initial review, be identified as meeting:

(1) at least 75% of the TEKS coverage percentage indicated by the publisher on the correlation document [complete program description form] submitted for that material; and

(2) at least 75% of the ELPS designated for the subject and grade for which the material is intended.

(c) A publisher shall have one opportunity to provide a written request for the Texas Education Agency (TEA) to further review instructional material that, in accordance with subsection (b) of this section, is not eligible to have new content added. The request for further review must be received by TEA within the timeframe established by the TEA at the start of the review.

(d) New content may be provided as print samples, electronic samples in an open file format or closed format, or galley proofs for review by the state review panels.

(e) New content must be provided to the review panels as quickly as possible and within the timeframe established by the TEA.

(f) Electronic samples of new content approved by the review panels for the purpose of making the product eligible for adoption shall be submitted to the TEA and each education service center prior to the adoption of instructional materials. New content submitted under this subsection must be submitted by the deadline established in the schedule of adoption procedures in the proclamation.

(g) If a publisher receives a request or a "no report" from a panel, the publisher shall be given no less than 48 hours to provide content in response to the request or report.

§66.66.Consideration and Adoption of Instructional Materials by the State Board of Education.

(a) The State Board of Education (SBOE) shall either adopt or reject each submitted instructional material in accordance with the Texas Education Code (TEC), §31.024.

(b) The SBOE shall adopt instructional materials in accordance with the TEC, §31.023. Instructional materials may be adopted only if:

(1) they meet at least 50% of the Texas essential knowledge and skills (TEKS) when the SBOE calls for materials as specified in §66.27(c)(1) of this title (relating to Proclamation, Public Notice, and Schedule for Adopting Instructional Materials) or meet requirements of the proclamation when the SBOE calls for materials as specified in §66.27(c)(2) or (3) of this title for the subject and grade level or course(s) in materials designed for student use and materials designed for teacher use. In determining the percentage of the TEKS covered by instructional materials, each student expectation shall count as an independent element of the TEKS;

(2) the publisher has agreed to ensure that they meet the established physical specifications adopted by the SBOE prior to making materials available for use in districts;

(3) they are free from factual errors, including significant grammatical or punctuation errors that have been determined to impede student learning, or the publisher has agreed to correct any identified factual errors or grammatical or punctuation errors that have been determined to impede student learning, prior to making them available for use in districts and charter schools; [and]

(4) they are deemed to be suitable for the subject area and grade level;

(5) they have been reviewed by academic experts in the subject and grade level; and

(6) [(4)] they receive approval by majority vote of the SBOE.

(c) No instructional material may be adopted that contains content that clearly conflicts with the stated purpose of the TEC, §28.002(h).

(d) Instructional materials submitted for review may be rejected by majority vote of the SBOE in accordance with the TEC, §31.024.

(e) A publisher may withdraw from the adoption process at any time prior to execution of a contract with the SBOE [final adoption] for any reason by providing notification in writing to the commissioner of education. Notification of withdrawal is final and irrevocable.

(f) The commissioner may remove materials from the adopted list if the publisher fails to meet deadlines established in the schedule of adoption procedures.

§66.67.Adoption of Open Education Resource [Open-Source] Instructional Materials.

(a) "Open education resource instructional material" means teaching, learning, and research resources that reside in the public domain or have been released under an intellectual property license that allows for free use, reuse, modification, and sharing with others, including full courses, course materials, modules, textbooks, streaming videos, tests, software, and any other tools, materials, or techniques used to support access to knowledge.

[(a) "Open-Source Materials" are defined by the Texas Education Code (TEC), §31.002, as electronic instructional materials that are available for downloading from the Internet at no charge to a student and without requiring the purchase of an unlock code, membership, or other access or use charge, except for a charge to order an optional printed copy of all or part of the instructional materials. The term includes state-developed open-source instructional materials purchased under the TEC, Chapter 31, Subchapter B-1.]

(b) The State Board of Education (SBOE) shall place open education resource [open-source] instructional materials submitted for a secondary-level course on the adopted list if the instructional materials meet the criteria outlined in subsections (c) and (d) of this section.

(c) Open education resource [Open-source] instructional materials referenced in this section must be:

(1) submitted by an eligible institution, defined as a public institution of higher education that is designated as a research university or emerging research university under the Texas Higher Education Coordinating Board's accountability system, or a private university located in Texas that is a member of the Association of American Universities, or a public technical institute, as defined by the TEC, §61.003;

(2) intended for a secondary-level course; and

(3) written, compiled, or edited primarily by faculty of an eligible institution who specialize in the subject area of the instructional materials.

(d) To submit open education resource [open-source ] instructional materials, an eligible institution must:

(1) certify by the board of regents, or corresponding governing body, or president of the university, or by an individual authorized by one of these entities, that the instructional materials qualify for placement on the adopted list based on the extent to which the instructional materials cover the essential knowledge and skills identified under the TEC, §28.002;

(2) identify each contributing author;

(3) provide certification by the appropriate academic department of the submitting institution that the instructional materials are accurate; and

(4) certify that:

(A) for instructional materials for a senior-level course, a student who successfully completes a course based on the instructional materials will be prepared, without remediation, for entry into the eligible institution's freshman-level course in that subject; or

(B) for instructional materials for a junior-level and senior-level course, a student who successfully completes the junior-level course based on the instructional materials will be prepared for entry into the senior-level course.

(e) All information and certifications required by subsection (d) of this section shall be provided in a format designated by the commissioner of education.

(f) A publisher who offers open education resource [open-source] instructional materials must provide a report for each electronic component that verifies that the component substantially follows Web Content Accessibility (WCAG) 2.0 AA standards and technical standards required by the Federal Rehabilitation Act, Section 508, as applicable.

(g) Before placing open education resource [open-source] instructional materials submitted under subsection (b) of this section on the adopted list, the SBOE shall direct the Texas Education Agency (TEA) to post the materials on the TEA website for 60 days to allow for public comment and the SBOE shall hold a public hearing on the instructional materials. Public comment shall be provided to members of the SBOE and posted on the TEA website within five working days of its receipt.

(h) Not later than the 90th day after the date open education resource [open-source] instructional materials are submitted as provided by the TEC, §31.0241, the SBOE may review the instructional materials. The SBOE:

(1) may request an independent review that follows the same process used in §66.36 of this title (relating to State Review Panels: Training, Duties, and Conduct) to confirm the content meets the criteria for placement on the adopted list based on the extent to which the instructional materials cover the essential knowledge and skills. The SBOE shall notify the submitting institution of any discrepancy in alignment with essential knowledge and skills;

(2) shall post with the list adopted under the TEC, §31.023, comments made by the SBOE regarding the open education resource [open-source] instructional materials placed on the list; and

(3) shall distribute SBOE comments to school districts.

§66.72.Contracts.

(a) The state contract shall not be changed or modified without approval of the Texas Education Agency (TEA) legal counsel.

(b) Contracts shall be sent to the publishers for signature. Signed contracts returned by the publishers shall be signed by the chair of the State Board of Education (SBOE) and attested to by the commissioner of education. Properly signed and attested contracts shall be filed with the TEA.

(c) The publisher of instructional materials adopted by the SBOE shall:

(1) enter into a contract with the SBOE for a term not to exceed eight years and that ends at the same time as any contract entered into by the SBOE for other instructional materials for the same subject and grade level; and

(2) commit to provide the instructional materials in the manner specified by the publisher in the statement of intent to bid in §66.28(b) of this title (relating to Requirements for Publisher Participation).

(d) A publisher of adopted materials may add post-contractual bids to its contract in response to identified needs of districts.

(e) [(d)] The commissioner of education shall annually review contracts for instructional materials and identify those that should be renewed.

(f) [(e)] The SBOE shall renew existing contracts upon determining that the renewal would be in the best interest of the state and after considering the following factors:

(1) placement of subject areas in the review and adoption cycle;

(2) availability and projected cost of new instructional materials;

(3) willingness of publishers to renew contracts; and

(4) cost of instructional materials under a renewal contract.

(g) [(f)] Publishers awarded new contracts shall be prepared to make the adopted instructional materials available for at least one extended contract period of not more than four years at prices that are mutually agreeable to publishers and to the commissioner of education. The SBOE may consider refusing to award future contracts to a publisher who, after receiving written notice to do so, refuses to rebid instructional materials at least one time. Failure of a publisher to negotiate an acceptable price for an extended contract shall not be considered failure to rebid instructional materials.

(h) [(g)] Contracts with publishers are subject to all provisions of the Texas Education Code (TEC), Chapter 31.

(i) [(h)] The SBOE may execute a contract for the printing of open education resource [open-source ] instructional materials on the adopted list that allows a school district or an open-enrollment charter school to requisition printed copies of open education resource [open-source] instructional materials as provided by the TEC, §31.103.

§66.75.Updates to Adopted Instructional Materials.

(a) A publisher may submit a request to the commissioner of education for approval to substitute an updated edition of state-adopted instructional materials. A publisher requesting approval of a new edition shall provide the request in writing in a manner designated by the commissioner of education that includes an explanation of the reason for the update. The request must be accompanied by an electronic sample and a correlation document that meets all the requirements of the correlation document provided for the initial review. This requirement includes electronic instructional materials and Internet products for which all users receive the same updates. Proposed changes shall be posted on the Texas Education Agency (TEA) website for a minimum of seven calendar days prior to approval.

(b) Requests for approval of the updated edition shall provide that there will be no additional cost to the state.

(c) Publishers submitting requests for approval of content updates must certify in writing that the new material meets the applicable essential knowledge and skills and is free from factual errors.

(d) With prior commissioner approval, publishers [Publishers] may, at any time, make changes that do not affect the product's Texas essential knowledge and skills coverage or its coverage of Texas Education Code, §28.002(h), as it relates to that specific subject and grade level or course(s), understanding the importance of patriotism and functioning productively in a free enterprise society with appreciation for the basic democratic values of our state and national heritage. Requests for approval of updates to content that was not used in determining the product's eligibility for adoption must be submitted to the commissioner of education to confirm the changes do not affect Texas essential knowledge and skills coverage or coverage of TEC, §28.002(h). Responses from the commissioner of education to update requests shall be provided within 30 days after receipt of the request. If no action has been taken by the end of the 30 days, the request is deemed approved. This requirement includes electronic instructional materials and Internet products for which all users receive the same updates. Proposed changes shall be posted on the TEA [Texas Education Agency] website for a minimum of seven calendar days prior to approval.

(e) All requests for updates involving content used in determining the product's eligibility for adoption must be approved by the State Board of Education (SBOE) prior to their introduction into state-adopted instructional materials. Requests must be submitted in a format designated by the commissioner and must include correlations to applicable student expectations. This requirement includes electronic instructional materials and Internet products for which all users receive the same updates. Proposed changes shall be posted on the TEA website for a minimum of seven calendar days prior to approval. The SBOE may assess penalties as allowed by law against publishers who fail to obtain approval for updates to such content in state-adopted instructional materials prior to delivery of the materials to school districts.

(f) Publishers must agree to supply the previous version of state-adopted instructional materials to school districts that choose to continue using the previous version during the duration of the original contract. This subsection does not apply to online instructional materials.

(g) A publisher of instructional materials may provide alternative formats for use by school districts if:

(1) the content is identical to SBOE-approved content;

(2) the alternative formats include the identical revisions and updates as the original product; and

(3) the cost to the state and school is equal to or less than the cost of the original product.

(h) Alternative formats may be developed and introduced at a time when the subject or grade level is not scheduled in the cycle to be considered for at least two years, in conformance with the procedures for adoption of other state-adopted materials.

(i) Publishers must notify the commissioner of education in writing if they are providing SBOE-approved products in alternative formats.

(j) Publishers are responsible for informing districts of the availability of the alternative formats and for accurate fulfillment of orders for them.

(k) The commissioner of education may add alternative formats of SBOE-approved products to the list of adopted products available to school districts.

(l) Publishers of SBOE-adopted instructional materials may, at any time, without seeking approval from the SBOE or the commissioner of education, make technical enhancements or improvements that do not add or change content, provided the enhancements do not change the technical requirements for districts to continue to be able to access the materials in the same manner as originally submitted.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on December 4, 2017.

TRD-201704930

Cristina De La Fuente-Valadez

Director, Rulemaking

Texas Education Agency

Earliest possible date of adoption: January 14, 2018

For further information, please call: (512) 475-1497


SUBCHAPTER C. LOCAL OPERATIONS

19 TAC §66.107

STATUTORY AUTHORITY. The amendments are proposed under the Texas Education Code (TEC), TEC, §31.002, as amended by SB 810, 85th Texas Legislature, Regular Session, 2017, which defines open education resource instructional material; TEC, §31.003, which authorizes the State Board of Education (SBOE) to adopt rules for the adoption, requisition, distribution, care, use, and disposal of instructional materials; and HB 3526, Section 5, 85th Texas Legislature, Regular Session, 2017, which changes the name of the instructional materials allotment to the technology and instructional materials allotment.

CROSS REFERENCE TO STATUTE. The amendments implement the Texas Education Code, §31.002, as amended by Senate Bill (SB) 810, 85th Texas Legislature, Regular Session, 2017; §31.003; and House Bill (HB) 3526, Section 5, 85th Texas Legislature, Regular Session 2017.

§66.107.Local Responsibility.

(a) Each school district or open-enrollment charter school shall conduct an annual physical inventory of all currently adopted instructional materials that have been requisitioned by, and delivered to, the district. The results of the inventory shall be recorded in the district's files.

(b) All instructional materials owned by the district or charter school must be turned in to the school at the end of the school year or when a student withdraws from school.

(c) The board of trustees of a school district or governing body of a charter school may not require an employee of the district or charter school to pay for instructional materials or instructional technology that is stolen, misplaced, or not returned by a student.

(d) The board of trustees of a school district shall require the employee responsible for ordering instructional materials to complete Texas Education Agency-developed training in the use of the technology and instructional materials allotment and the use of the instructional materials ordering system known as EMAT. Training shall be completed prior to ordering instructional materials for the first time and again each time the district or charter school is notified by the Texas Education Agency that the training has been updated. The school district or charter shall maintain documentation of the completion of the required training.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on December 4, 2017.

TRD-201704932

Cristina De La Fuente-Valadez

Director, Rulemaking

Texas Education Agency

Earliest possible date of adoption: January 14, 2018

For further information, please call: (512) 475-1497


CHAPTER 74. CURRICULUM REQUIREMENTS

SUBCHAPTER B. GRADUATION REQUIREMENTS

19 TAC §§74.11 - 74.14

The State Board of Education (SBOE) proposes amendments to §§74.11-74.14, concerning graduation requirements. The proposed amendments would update the rules and align with recent legislative changes.

The 83rd Texas Legislature, Regular Session, 2013, passed House Bill (HB) 5, amending the Texas Education Code (TEC), §28.025, to transition from three high school graduation programs to one foundation high school program with endorsement options to increase flexibility for students. HB 5 gave the SBOE the authority to identify advanced courses related to the new graduation program, identify the curriculum requirements for the endorsements, and determine the requirements for performance acknowledgments related to the new graduation program.

The 85th Texas Legislature, Regular Session, 2017, passed SB 826, amending the TEC, §28.025(b-2), to eliminate course sequencing requirements in English language arts and reading and mathematics under the foundation high school program. HB 728, passed by the 85th Texas Legislature, Regular Session, 2017, added new TEC, §28.018, to require the SBOE by rule to develop and implement a program under which students may comply with the curriculum requirements for an advanced mathematics credit or an advanced science credit by successfully completing an advanced computer science course. HB 3593, passed by the 85th Texas Legislature, Regular Session, 2017, amended TEC, §28.025(b-12), to allow students to comply with the curriculum requirements for two credits in a language other than English by substituting two credits in computer programming languages, including computer coding. HB 3593 also amended TEC, §28.025(c-1)(1), to add cybersecurity and computer coding to the courses to be included in a science, technology, engineering, and mathematics (STEM) endorsement. HB 3593 also added TEC, §28.025(c-10), to require the SBOE to adopt or select five technology applications courses to be included in a cybersecurity pathway for the STEM endorsement. SB 671, passed by the 85th Texas Legislature, Regular Session, 2017, added TEC, §28.025(b-21), to require the SBOE to adopt criteria to allow a student to comply with the curriculum requirement for one credit in a language other than English by successfully completing a dual language immersion program at an elementary school.

At the September 2017 meeting, the committee discussed changes to align the rules with recent legislative changes. At that time, the committee provided direction on proposed changes and requested that staff move forward with updates to the rule text reflecting the committee's direction to be presented for first reading and filing authorization. Changes to the rules would be effective beginning with the 2018 - 2019 school year.

Following is a description of some of the changes to 19 TAC Chapter 74, Subchapter B.

Section 74.11, High School Graduation Requirements, would be amended to add the requirement that each district annually report to the Texas Education Agency (TEA) the names of courses approved by the board of trustees and the institutions of higher education in which the district's students have enrolled as part of locally developed cybersecurity programs, as required by HB 3593.

Section 74.11 would also be amended to specify that a district or school must allow a student who successfully completes AP Computer Science A or IB Computer Science Higher Level to satisfy both one advanced mathematics requirement and one languages other than English requirement for graduation.

Section 74.12, Foundation High School Program, would be amended to eliminate course sequencing requirements in English language arts and reading under the foundation high school program, as required by SB 826.

Section 74.12 would also be amended to update language that references computer programming languages to include computer coding to align with HB 3593 and to add language specifying the criteria required for a student who successfully completes a dual language immersion program under TEC, §28.0051, at an elementary school to satisfy one credit of the two credits required in a language other than English, as required by SB 671. Section 74.12 would also be amended to update a course title to align with the new Texas Essential Knowledge and Skills (TEKS) for career and technical education adopted in 2015.

Section 74.13, Endorsements, would be amended to update the languages other than English courses that may satisfy requirements for an arts and humanities endorsement and to allow certain Advanced Placement and International Baccalaureate courses to satisfy requirements for four credits in English under a multidisciplinary studies endorsement.

Section 74.14, Performance Acknowledgments, would be amended to update the criteria established for outstanding performance on ACT® Aspire and SAT® examinations.

The SBOE approved the amendments for first reading and filing authorization at its November 10, 2017, meeting.

The proposed amendments would have procedural and reporting implications. TEC, §28.002(g-2), requires that TEA make available to other districts the information reported to the TEA about cybersecurity courses, programs, institutions of higher education, and internships in which students in a district or charter school have enrolled. Districts and charter schools that elect to offer cybersecurity courses under TEC, §28.002(g-2), are required to report the course(s). The proposed amendments would have no new locally maintained paperwork requirements.

FISCAL NOTE. Monica Martinez, associate commissioner for standards and support services, has determined that for the first five-year period the proposed amendments are in effect there will be no additional costs to state or local government as a result of enforcing or administering the proposed amendments. There is no effect on local economy for the first five years that the proposed amendments are in effect; therefore, no local employment impact statement is required under Texas Government Code, §2001.022. The proposed amendments do not impose a cost on regulated persons and, therefore, are not subject to Texas Government Code, §2001.0045.

GOVERNMENT GROWTH IMPACT. The TEA has determined that the proposed amendments do not have a government growth impact pursuant to Texas Government Code, §2001.0221.

PUBLIC BENEFIT/COST NOTE. Ms. Martinez has determined that for each year of the first five years the proposed amendments are in effect, the public benefit anticipated as a result of enforcing the amendments will include added flexibility in course options for students to meet high school graduation requirements. There is no anticipated economic cost to persons who are required to comply with the proposed amendments.

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. 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 rules@tea.texas.gov. A request for a public hearing on the proposed amendments 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.

STATUTORY AUTHORITY. The amendments are proposed under the Texas Education Code (TEC), §7.102(c)(4), which requires the State Board of Education (SBOE) to establish curriculum and graduation requirements; TEC, §28.002, as amended by HB 3593, 85th Texas Legislature, Regular Session, 2017, which identifies the subjects of the required curriculum and requires the SBOE by rule to identify the essential knowledge and skills of each subject in the required curriculum that all students should be able to demonstrate and that will be used in evaluating instructional materials and addressed on the state assessment instruments; TEC, §28.018, as added by HB 728, 85th Texas Legislature, Regular Session, 2017, which requires the SBOE by rule to develop and implement a program under which students may comply with the curriculum requirements for an advanced mathematics credit or an advanced science credit by successfully completing an advanced computer science course; TEC, §28.025(a), which requires the SBOE by rule to determine the curriculum requirements for the foundation high school program that are consistent with the required curriculum and to designate the specific courses in the foundation curriculum that are required under the foundation high school program; TEC, §28.025(b-1), which requires the SBOE by rule to require that the curriculum requirements for the foundation high school program include a requirement that students successfully complete four credits in English language arts, including one credit in English I, one credit in English II, one credit in English III, and one credit in an advanced English course; three credits in mathematics, including one credit in Algebra I, one credit in geometry, and one credit in any advanced mathematics course; three credits in science, including one credit in biology, one credit in any advanced science course, and one credit in integrated physics and chemistry or in an additional advanced science course; three credits in social studies, including one credit in United States history, at least one-half credit in government and at least one-half credit in economics, and one credit in world geography or world history; two credits in the same language in a language other than English; five elective credits; one credit in fine arts; and one credit in physical education; TEC, §28.025(b-2), as amended by SB 826, 85th Texas Legislature, Regular Session, 2017, which requires the SBOE, in adopting rules, to provide for a student to comply with the curriculum requirements for an advanced English course, advanced mathematics course, and an advanced science course by successfully completing a course in the appropriate content area that has been approved as an advanced course by board rule or that is offered as an advanced course for credit without board approval as provided by the TEC, §28.002(g-1). TEC, §28.025(b-2), also requires the SBOE, in adopting rules, to allow a student to comply with the curriculum requirements for the third and fourth mathematics credits or the third and fourth science credits under the TEC, §28.025(b-1)(1), by successfully completing an advanced career and technical education course designated by the SBOE as containing substantively similar and rigorous academic content; TEC, §28.025(b-3), which requires the SBOE, in adopting rules for purposes of the TEC, §28.025(b-2), to approve a variety of advanced English, mathematics, and science courses that may be taken to comply with the foundation high school program requirements, provided that each approved course prepares students to enter the workforce successfully or postsecondary education without remediation; and TEC, §28.025(c-2), which requires the SBOE, in adopting rules, to require a student in order to earn any endorsement to successfully complete four credits in mathematics, which must include Algebra I, geometry, and two advanced mathematics courses; four credits in science, which must include biology, integrated physics and chemistry or an additional advanced science course, and two advanced science courses or an advanced career and technology course; and two additional elective credits. The SBOE, in adopting rules, is also required to develop additional curriculum requirements for each endorsement with the direct participation of educators and business, labor, and industry representatives and to require each school district to report to the agency the categories of endorsements for which the district offers all courses for curriculum requirements, as determined by board rule.

CROSS REFERENCE TO STATUTE. The amendments implement the Texas Education Code, §§7.102(c)(4); 28.002, as amended by House Bill (HB) 3593, 85th Texas Legislature, Regular Session, 2017; 28.018, as added by HB 728, 85th Texas Legislature, Regular Session, 2017; and 28.025, as amended by HB 3593, Senate Bill (SB) 30, SB 463, SB 671, and SB 826, 85th Texas Legislature, Regular Session, 2017.

§74.11.High School Graduation Requirements.

(a) To receive a high school diploma, a student entering Grade 9 in the 2014-2015 school year and thereafter must complete the following:

(1) in accordance with subsection (c) of this section, requirements of the Foundation High School Program specified in §74.12 of this title (relating to Foundation High School Program);

(2) testing requirements for graduation as specified in Chapter 101 of this title (relating to Assessment); and

(3) demonstrated proficiency, as determined by the district in which the student is enrolled, in delivering clear verbal messages; choosing effective nonverbal behaviors; listening for desired results; applying valid critical-thinking and problem-solving processes; and identifying, analyzing, developing, and evaluating communication skills needed for professional and social success in interpersonal situations, group interactions, and personal and professional presentations.

(b) A school district shall clearly indicate the distinguished level of achievement under the Foundation High School Program, an endorsement, and a performance acknowledgment on the transcript or academic achievement record (AAR) of a student who satisfies the applicable requirements.

(c) A student entering Grade 9 in the 2014-2015 school year and thereafter shall enroll in the courses necessary to complete the curriculum requirements for the Foundation High School Program specified in §74.12 of this title and the curriculum requirements for at least one endorsement specified in §74.13 of this title (relating to Endorsements).

(d) A student may graduate under the Foundation High School Program without earning an endorsement if, after the student's sophomore year:

(1) the student and the student's parent or person standing in parental relation to the student are advised by a school counselor of the specific benefits of graduating from high school with one or more endorsements; and

(2) the student's parent or person standing in parental relation to the student files with a school counselor written permission, on a form adopted by the Texas Education Agency (TEA), allowing the student to graduate under the Foundation High School Program without earning an endorsement.

(e) A student may earn a distinguished level of achievement by successfully completing the curriculum requirements for the Foundation High School Program and the curriculum requirements for at least one endorsement required by the Texas Education Code (TEC), §28.025(b-15), including four credits in science and four credits in mathematics to include Algebra II.

(f) An out-of-state or out-of-country transfer student (including foreign exchange students) or a transfer student from a Texas nonpublic school is eligible to receive a Texas diploma, but must complete all requirements of this section to satisfy state graduation requirements. Any course credit required in this section that is not completed by the student before he or she enrolls in a Texas school district may be satisfied through the provisions of §74.23 of this title (relating to Correspondence Courses and Distance Learning) and §74.24 of this title (relating to Credit by Examination) or by completing the course or courses according to the provisions of §74.26 of this title (relating to Award of Credit).

(g) Elective credits may be selected from the following:

(1) high school courses not required for graduation that are listed in the following chapters of this title:

(A) Chapter 110 of this title (relating to Texas Essential Knowledge and Skills for English Language Arts and Reading);

(B) Chapter 111 of this title (relating to Texas Essential Knowledge and Skills for Mathematics);

(C) Chapter 112 of this title (relating to Texas Essential Knowledge and Skills for Science);

(D) Chapter 113 of this title (relating to Texas Essential Knowledge and Skills for Social Studies);

(E) Chapter 114 of this title (relating to Texas Essential Knowledge and Skills for Languages Other Than English);

(F) Chapter 115 of this title (relating to Texas Essential Knowledge and Skills for Health Education);

(G) Chapter 116 of this title (relating to Texas Essential Knowledge and Skills for Physical Education);

(H) Chapter 117 of this title (relating to Texas Essential Knowledge and Skills for Fine Arts);

(I) Chapter 118 of this title (relating to Texas Essential Knowledge and Skills for Economics with Emphasis on the Free Enterprise System and Its Benefits);

(J) Chapter 126 of this title (relating to Texas Essential Knowledge and Skills for Technology Applications);

(K) Chapter 127 of this title (relating to Texas Essential Knowledge and Skills for Career Development); and

(L) Chapter 130 of this title (relating to Texas Essential Knowledge and Skills for Career and Technical Education);

(2) state-approved innovative courses as specified in §74.27 of this title (relating to Innovative Courses and Programs);

(3) Junior Reserve Officer Training Corps (JROTC)--one to four credits; and

(4) Driver Education--one-half credit.

[(h) College Board Advanced Placement and International Baccalaureate courses may be substituted as appropriate for required courses. A single College Board Advanced Placement or International Baccalaureate course may not count toward more than one credit required for graduation. If a College Board Advanced Placement or International Baccalaureate course is substituted for a required course, that course may not satisfy a requirement for an advanced course, but may count toward both a required course and an endorsement. College Board Advanced Placement and International Baccalaureate courses may satisfy elective credit requirements.]

(h) [(i)] Courses offered for dual credit at or in conjunction with an institution of higher education that provide advanced academic instruction beyond, or in greater depth than, the essential knowledge and skills for the equivalent high school course required for graduation may satisfy graduation requirements, including requirements for required courses, advanced courses, and courses for elective credit as well as requirements for endorsements.

(i) [(j)] A student may not be enrolled in a course that has a required prerequisite unless:

(1) the student has successfully completed the prerequisite course(s);

(2) the student has demonstrated equivalent knowledge as determined by the school district; or

(3) the student was already enrolled in the course in an out-of-state, an out-of-country, or a Texas nonpublic school and transferred to a Texas public school prior to successfully completing the course.

(j) [(k)] A district may award credit for a course a student completed without meeting the prerequisites if the student completed the course in an out-of-state, an out-of-country, or a Texas nonpublic school where there was not a prerequisite.

(k) A district shall allow a student who successfully completes AP Computer Science A or IB Computer Science Higher Level to satisfy both one advanced mathematics requirement and one languages other than English requirement for graduation.

(l) Each school district shall annually report to the TEA the names of the locally developed courses, programs, institutions of higher education, and internships in which the district's students have enrolled as authorized by the TEC, §28.002(g-1). The TEA shall make available information provided under this subsection to other districts. If a district chooses, it may submit any locally developed course for approval under §74.27 of this title as an innovative course.

(m) Each school district shall annually report to the TEA the names of cybersecurity courses approved by the board of trustees for credit and the institutions of higher education in which the district's students have enrolled as authorized by the TEC, §28.002(g-3). The TEA shall make available information provided under this subsection to other districts. If a district chooses, it may submit any locally developed course for approval under §74.27 of this title as an innovative course.

§74.12.Foundation High School Program.

(a) Credits. A student must earn at least 22 credits to complete the Foundation High School Program.

(b) Core courses. A student must demonstrate proficiency in the following.

(1) English language arts--four credits. Two [Three] of the credits must consist of English I and[,] II[, and III]. (Students with limited English proficiency who are at the beginning or intermediate level of English language proficiency, as defined by §74.4(d) of this title (relating to English Language Proficiency Standards), may satisfy the English I and English II graduation requirements by successfully completing English I for Speakers of Other Languages and English II for Speakers of Other Languages.) A third credit must consist of English III or a comparable Advanced Placement (AP) or International Baccalaureate (IB) English language arts course that does not count toward another credit required for graduation. A fourth [After the successful completion of English I, II, and III, the additional] credit may be selected from one full credit or a combination of two half credits from two different courses, subject to prerequisite requirements, from the following courses:

(A) English IV;

(B) Independent Study in English;

(C) Literary Genres;

(D) Creative Writing;

(E) Research and Technical Writing;

(F) Humanities;

(G) Public Speaking III;

(H) Communication Applications, which must be combined with another half credit from the other courses listed in subparagraphs (A)-(G) and (I)-(S) of this paragraph;

(I) Oral Interpretation III;

(J) Debate III;

(K) Independent Study in Speech;

(L) Independent Study in Journalism;

(M) Advanced Broadcast Journalism III;

(N) Advanced Journalism: Newspaper III;

(O) Advanced Journalism: Yearbook III;

(P) a comparable [an] Advanced Placement (AP) or International Baccalaureate (IB) English language arts course that does not count toward another credit required for graduation [in accordance with §74.11(h) of this title (relating to High School Graduation Requirements)];

(Q) after the successful completion of English I, II, and III, a locally developed English language arts course or other activity, including an apprenticeship or training hours needed to obtain an industry-recognized credential or certificate that is developed pursuant to the Texas Education Code (TEC), §28.002(g-1);

(R) Business English; and

(S) a college preparatory English language arts course that is developed pursuant to the TEC, §28.014.

(2) Mathematics--three credits. Two of the credits must consist of Algebra I and Geometry.

(A) The additional credit may be selected from one full credit or a combination of two half credits from two different courses, subject to prerequisite requirements, from the following courses or a credit selected from the courses listed in subparagraph (B) of this paragraph:

(i) Mathematical Models with Applications;

(ii) Mathematical Applications in Agriculture, Food, and Natural Resources;

(iii) Digital Electronics;

(iv) Robotics Programming and Design;

(v) Financial Mathematics;

(vi) Applied Mathematics for Technical Professionals;

(vii) Accounting II;

(viii) Manufacturing Engineering Technology II; and

(ix) Robotics II.

(B) The additional credit may be selected from one full credit or a combination of two half credits from two different courses, subject to prerequisite requirements, from the following courses:

(i) Algebra II;

(ii) Precalculus;

(iii) Advanced Quantitative Reasoning;

(iv) Independent Study in Mathematics;

(v) Discrete Mathematics for Problem Solving;

(vi) Algebraic Reasoning;

(vii) Statistics;

(viii) a comparable [an] AP or IB mathematics course that does not count toward another credit required for graduation [in accordance with §74.11(h) of this title];

(ix) AP Computer Science A;

x) IB Computer Science Higher Level;

(xi) [(x)] Engineering Mathematics;

(xii) [(xi)] Statistics and Business Decision Making;

(xiii) [(xii)] Mathematics for Medical Professionals;

(xiv) [(xiii)] Discrete Mathematics for Computer Science;

(xv) [(xiv)] pursuant to the TEC, §28.025(b-5), after the successful completion of Algebra II, a mathematics course endorsed by an institution of higher education as a course for which the institution would award course credit or as a prerequisite for a course for which the institution would award course credit. The Texas Education Agency (TEA) shall maintain a current list of courses offered under this subparagraph; and

(xvi) [(xv)] after the successful completion of Algebra I and Geometry, a locally developed mathematics course or other activity, including an apprenticeship or training hours needed to obtain an industry-recognized credential or certificate that is developed pursuant to the TEC, §28.002(g-1).

(3) Science--three credits. One credit must consist of Biology or a comparable [an] AP or IB biology course [in accordance with §74.11(h) of this title].

(A) One credit must be selected from the following laboratory-based courses:

(i) Integrated Physics and Chemistry;

(ii) Chemistry;

(iii) Physics;

(iv) Principles of Technology; and

(v) a comparable [an] AP or IB chemistry or physics [science] course that does not count toward another credit required for graduation [in accordance with §74.11(h) of this title].

(B) The additional credit may be selected from one full credit or a combination of two half credits from two different courses, subject to prerequisite requirements, from the following laboratory-based courses:

(i) Chemistry;

(ii) Physics;

(iii) Aquatic Science;

(iv) Astronomy;

(v) Earth and Space Science;

(vi) Environmental Systems;

(vii) a comparable [an] AP or IB science course that does not count toward another credit required for graduation [in accordance with §74.11(h) of this title];

(viii) Advanced Animal Science;

(ix) Advanced Plant and Soil Science;

(x) Anatomy and Physiology;

(xi) Medical Microbiology;

(xii) Pathophysiology;

(xiii) Food Science;

(xiv) Forensic Science;

(xv) Biotechnology I;

(xvi) Biotechnology II;

(xvii) Principles of Technology;

(xviii) Scientific Research and Design;

(xix) Engineering Design and Problem Solving;

(xx) Engineering Science;

(xxi) pursuant to the TEC, §28.025(b-5), after the successful completion of physics, a science course endorsed by an institution of higher education as a course for which the institution would award course credit or as a prerequisite for a course for which the institution would award course credit. The TEA shall maintain a current list of courses offered under this clause; and

(xxii) a locally developed science course or other activity, including an apprenticeship or training hours needed to obtain an industry-recognized credential or certificate that is developed pursuant to the TEC, §28.002(g-1).

(C) Credit may not be earned for both physics and Principles of Technology to satisfy science credit requirements.

(4) Social studies--three credits. Two of the credits must consist of United States History Studies Since 1877 (one credit), United States Government (one-half credit), and Economics with Emphasis on the Free Enterprise System and Its Benefits (one-half credit). The additional credit may be selected from the following courses:

(A) World History Studies; and

(B) World Geography Studies; and[.]

(C) a comparable AP or IB world history or world geography course that does not count toward another credit required for graduation.

(5) Languages other than English (LOTE)--two credits.

(A) The credits may be selected from the following:

(i) any two levels in the same language, including comparable AP or IB language courses that do not count toward another credit required for graduation; or

(ii) two credits in computer programming languages, including computer coding, to be selected from Computer Science I, II, and III, AP Computer Science Principles, AP Computer Science A, IB Computer Science Standard Level, and IB Computer Science Higher Level.

(B) If a student, in completing the first credit of LOTE, demonstrates that the student is unlikely to be able to complete the second credit, the student may substitute another appropriate course as follows:

(i) Special Topics in Language and Culture;

(ii) World History Studies or World Geography Studies for a student who is not required to complete both by the local district;

(iii) another credit selected from Chapter 114 of this title (relating to Texas Essential Knowledge and Skills for Languages Other Than English); or

(iv) computer programming languages, including computer coding.

(C) The determination regarding a student's ability to complete the second credit of LOTE must be agreed to by:

(i) the teacher of the first LOTE credit course or another LOTE teacher designated by the school district, the principal or designee, and the student's parent or person standing in parental relation;

(ii) the student's admission, review, and dismissal (ARD) committee if the student receives special education services under the TEC, Chapter 29, Subchapter A; or

(iii) the committee established for the student under Section 504, Rehabilitation Act of 1973 (29 United States Code, Section 794) if the student does not receive special education services under the TEC, Chapter 29, Subchapter A, but is covered by the Rehabilitation Act of 1973.

(D) A student, who due to a disability, is unable to complete two credits in the same language in a language other than English, may substitute a combination of two credits from English language arts, mathematics, science, or social studies or two credits in career and technical education or technology applications for the LOTE credit requirements. The determination regarding a student's ability to complete the LOTE credit requirements will be made by:

(i) the student's ARD committee if the student receives special education services under the TEC, Chapter 29, Subchapter A; or

(ii) the committee established for the student under Section 504, Rehabilitation Act of 1973 (29 United States Code, Section 794) [(29 United States Code (USC), §794)] if the student does not receive special education services under the TEC, Chapter 29, Subchapter A, but is covered by the Rehabilitation Act of 1973.

(E) A student who successfully completes a dual language immersion/two-way or dual language immersion/one-way program in accordance with §89.1210(d)(3) and (4) of this title (relating to Program Content and Design), §89.1227 of this title (relating to Minimum Requirements for Dual Language Immersion Program Model), and §89.1228 of this title (relating to Dual Language Immersion Program Model Implementation) at an elementary school may satisfy one credit of the two credits required in a language other than English.

(i) To successfully complete a dual language immersion program, a student must:

(I) have participated in a dual language immersion program for at least five consecutive school years to include Grade 5;

(II) achieve high levels of academic competence as demonstrated by performance of meets or masters grade level on the State of Texas Assessments of Academic Readiness (STAAR®) in English and Spanish, if applicable, at the appropriate grade levels; and

(III) achieve proficiency in both English and a language other than English as demonstrated by scores of proficient or higher in the reading and speaking domains on language proficiency or achievement tests in both languages.

(ii) The second credit of a language other than English must be in the same language as the successfully completed dual language immersion program.

(6) Physical education--one credit.

(A) The required credit may be selected from any combination of the following one-half to one credit courses:

(i) Foundations of Personal Fitness;

(ii) Adventure/Outdoor Education;

(iii) Aerobic Activities; and

(iv) Team or Individual Sports.

(B) In accordance with local district policy, the required credit may be earned through completion of any Texas essential knowledge and skills-based course that meets the requirement in subparagraph (E) of this paragraph for 100 minutes of moderate to vigorous physical activity per five-day school week and that is not being used to satisfy another specific graduation requirement.

(C) In accordance with local district policy, credit for any of the courses listed in subparagraph (A) of this paragraph may be earned through participation in the following activities:

(i) Athletics;

(ii) Junior Reserve Officer Training Corps (JROTC); and

(iii) appropriate private or commercially sponsored physical activity programs conducted on or off campus. The district must apply to the commissioner of education for approval of such programs, which may be substituted for state graduation credit in physical education. Such approval may be granted under the following conditions.

(I) Olympic-level participation and/or competition includes a minimum of 15 hours per week of highly intensive, professional, supervised training. The training facility, instructors, and the activities involved in the program must be certified by the superintendent to be of exceptional quality. Students qualifying and participating at this level may be dismissed from school one hour per day. Students dismissed may not miss any class other than physical education.

(II) Private or commercially sponsored physical activities include those certified by the superintendent to be of high quality and well supervised by appropriately trained instructors. Student participation of at least five hours per week must be required. Students certified to participate at this level may not be dismissed from any part of the regular school day.

(D) In accordance with local district policy, up to one credit for any one of the courses listed in subparagraph (A) of this paragraph may be earned through participation in any of the following activities:

(i) Drill Team;

(ii) Marching Band; and

(iii) Cheerleading.

(E) All substitution activities allowed in subparagraphs (B)-(D) of this paragraph must include at least 100 minutes per five-day school week of moderate to vigorous physical activity.

(F) Credit may not be earned more than once for any course identified in subparagraph (A) of this paragraph. No more than four substitution credits may be earned through any combination of substitutions allowed in subparagraphs (B)-(D) of this paragraph.

(G) A student who is unable to participate in physical activity due to disability or illness may substitute an academic elective credit (English language arts, mathematics, science, or social studies) or a course that is offered for credit as provided by the TEC, §28.002(g-1), for the physical education credit requirement. The determination regarding a student's ability to participate in physical activity will be made by:

(i) the student's ARD committee if the student receives special education services under the TEC, Chapter 29, Subchapter A;

(ii) the committee established for the student under Section 504, Rehabilitation Act of 1973 (29 United States Code, Section 794) [(29 USC, §794)] if the student does not receive special education services under the TEC, Chapter 29, Subchapter A, but is covered by the Rehabilitation Act of 1973; or

(iii) a committee established by the school district of persons with appropriate knowledge regarding the student if each of the committees described by clauses (i) and (ii) of this subparagraph is inapplicable. This committee shall follow the same procedures required of an ARD or a Section 504 committee.

(7) Fine arts--one credit.

(A) The credit may be selected from the following courses subject to prerequisite requirements:

(i) Art, Level I, II, III, or IV;

(ii) Dance, Level I, II, III, or IV;

(iii) Music, Level I, II, III, or IV;

(iv) Music Studies;

(v) Theatre, Level I, II, III, or IV;

(vi) Musical Theatre, Level I, II, III, or IV;

(vii) Technical Theatre, Level I, II, III, or IV;

(viii) [Principles and Elements of] Floral Design;

(ix) Digital Art and Animation; and

(x) 3-D Modeling and Animation.

(B) In accordance with local district policy, credit may be earned through participation in a community-based fine arts program not provided by the school district in which the student is enrolled. The district must apply to the commissioner of education for approval of such programs, which may be substituted for state graduation credit in fine arts. Approval may be granted if the fine arts program provides instruction in the essential knowledge and skills identified for a fine arts course as defined by Chapter 117, Subchapter C, of this title (relating to High School, Adopted 2013).

(c) Elective courses--five credits. The credits must be selected from the list of courses specified in §74.11(g) or[,] (h)[, or (i)] of this title (relating to High School Graduation Requirements) or from a locally developed course or activity developed pursuant to the TEC, §28.002(g-1), for which a student may receive credit and that does not satisfy a specific course requirement.

(d) Substitutions. No substitutions are allowed in the Foundation High School Program, except as specified in this chapter.

§74.13.Endorsements.

(a) A student shall specify in writing an endorsement the student intends to earn upon entering Grade 9.

(b) A district shall permit a student to enroll in courses under more than one endorsement before the student's junior year and to choose, at any time, to earn an endorsement other than the endorsement the student previously indicated. This section does not entitle a student to remain enrolled to earn more than 26 credits.

(c) A student must earn at least 26 credits to earn an endorsement.

(d) A school district may define advanced courses and determine a coherent sequence of courses for an endorsement area, provided that prerequisites in Chapters 110-118, 126, 127, and 130 of this title are followed.

(e) To earn an endorsement a student must demonstrate proficiency in the following.

(1) The curriculum requirements for the Foundation High School Program as defined by §74.12 of this title (relating to Foundation High School Program).

(2) A fourth credit in mathematics that may be selected from one full credit or a combination of two half credits from two different courses, subject to prerequisite requirements, from the following courses:

(A) Algebra II;

(B) Precalculus;

(C) Advanced Quantitative Reasoning;

(D) Independent Study in Mathematics;

(E) Discrete Mathematics for Problem Solving;

(F) Algebraic Reasoning;

(G) Statistics;

(H) a comparable [an] Advanced Placement (AP) or International Baccalaureate (IB) mathematics course that does not count toward another credit required for graduation [in accordance with §74.11(h) of this title (relating to High School Graduation Requirements)];

(I) AP Computer Science A;

(J) IB Computer Science Higher Level;

(K) [(J)] Engineering Mathematics;

(L) [(K)] Statistics and Business Decision Making;

(M) [(L)] Mathematics for Medical Professionals;

(N) [(M)] Discrete Mathematics for Computer Science;

(O) [(N)] pursuant to the Texas Education Code (TEC), §28.025(b-5), after the successful completion of Algebra II, a mathematics course endorsed by an institution of higher education as a course for which the institution would award course credit or as a prerequisite for a course for which the institution would award course credit. The Texas Education Agency (TEA) shall maintain a current list of courses offered under this subparagraph; and

(P) [(O)] after the successful completion of Algebra I and Geometry, a locally developed mathematics course or other activity, including an apprenticeship or training hours needed to obtain an industry-recognized credential or certificate that is developed pursuant to the TEC, §28.002(g-1).

(3) A student may complete a course listed in paragraph (2) of this subsection before or after completing a course listed in §74.12(b)(2)(A) of this title.

(4) The fourth mathematics credit may be a college preparatory mathematics course that is developed and offered pursuant to the TEC, §28.014.

(5) An additional credit in science that may be selected from one full credit or a combination of two half credits from two different courses, subject to prerequisite requirements, from the following courses:

(A) Chemistry;

(B) Physics;

(C) Aquatic Science;

(D) Astronomy;

(E) Earth and Space Science;

(F) Environmental Systems;

(G) a comparable [an] AP or IB science course that does not count toward another credit required for graduation [in accordance with §74.11(h) of this title];

(H) Advanced Animal Science;

(I) Advanced Plant and Soil Science;

(J) Anatomy and Physiology;

(K) Medical Microbiology;

(L) Pathophysiology;

(M) Food Science;

(N) Forensic Science;

(O) Biotechnology I;

(P) Biotechnology II;

(Q) Principles of Technology;

(R) Scientific Research and Design;

(S) Engineering Design and Problem Solving;

(T) Engineering Science;

(U) pursuant to the TEC, §28.025(b-5), after the successful completion of physics, a science course endorsed by an institution of higher education as a course for which the institution would award course credit or as a prerequisite for a course for which the institution would award course credit. The TEA shall maintain a current list of courses offered under this subparagraph;

(V) a locally developed science course or other activity, including an apprenticeship or training hours needed to obtain an industry-recognized credential or certificate that is developed pursuant to the TEC, §28.002(g-1);

(W) pursuant to the TEC, §28.025(c-3), a student pursuing an arts and humanities endorsement who has the written permission of the student's parent or a person standing in parental relation to the student may substitute a course that is not being used to satisfy another specific graduation requirement selected from:

(i) Chapter 110 of this title (relating to Texas Essential Knowledge and Skills for English Language Arts and Reading);

(ii) Chapter 113 of this title (relating to Texas Essential Knowledge and Skills for Social Studies) or Chapter 118 of this title (relating to Texas Essential Knowledge and Skills for Economics with Emphasis on the Free Enterprise System and Its Benefits);

(iii) Chapter 114 of this title (relating to Texas Essential Knowledge and Skills for Languages Other Than English); or

(iv) Chapter 117 of this title (relating to Texas Essential Knowledge and Skills for Fine Arts); and

(X) credit may not be earned for both physics and Principles of Technology to satisfy science credit requirements.

(6) Two additional elective credits that may be selected from the list of courses specified in §74.11(g) or[, ] (h)[, or (i)] of this title (relating to High School Graduation Requirements).

(f) A student may earn any of the following endorsements.

(1) Science, technology, engineering, and mathematics (STEM). A student may earn a STEM endorsement by completing the requirements specified in subsection (e) of this section, including Algebra II, chemistry, and physics or Principles of Technology and:

(A) a coherent sequence of courses for four or more credits in career and technical education (CTE) that consists of at least two courses in the same career cluster and at least one advanced CTE course. The courses may be selected from Chapter 130 of this title (relating to Texas Essential Knowledge and Skills for Career and Technical Education), Chapter 127 of this title (relating to Texas Essential Knowledge and Skills for Career Development), or CTE innovative courses approved by the commissioner of education. The final course in the sequence must be selected from Chapter 130, Subchapter O, of this title (relating to Science, Technology, Engineering, and Mathematics) or Career Preparation I or II and Problems and Solutions in Chapter 127, Subchapter B, of this title (relating to High School), if the course addresses a STEM-related field; or

(B) a coherent sequence of four credits in computer science selected from the following:

(i) Fundamentals of Computer Science; or

(ii) Computer Science I; or

(iii) Computer Science II; or

(iv) Computer Science III; or

(v) Digital Forensics; or

(vi) Discrete Mathematics for Computer Science; or

(vii) Game Programming and Design; or

(viii) Mobile Application Development; or

(ix) Robotics Programming and Design; or

(x) Independent Studies in Technology Applications; or

(xi) AP Computer Science A; or

(xii) AP Computer Science Principles; or

(xiii) IB Computer Science, Standard Level; or

(xiv) IB Computer Science, Higher Level; or

(C) three credits in mathematics by successfully completing Algebra II and two additional mathematics courses for which Algebra II is a prerequisite by selecting courses from subsection (e)(2) of this section; or

(D) four credits in science by successfully completing chemistry, physics, and two additional science courses by selecting courses from subsection (e)(5) of this section; or

(E) in addition to Algebra II, chemistry, and physics, a coherent sequence of three additional credits from no more than two of the categories or disciplines represented by subparagraphs (A), (B), (C), and (D) of this paragraph.

(2) Business and industry. A student may earn a business and industry endorsement by completing the requirements specified in subsection (e) of this section and:

(A) a coherent sequence of courses for four or more credits in CTE that consists of at least two courses in the same career cluster and at least one advanced CTE course. The courses may be selected from Chapter 130 of this title, Chapter 127 of this title, or CTE innovative courses approved by the commissioner. The final course in the sequence must be selected from one of the following:

(i) Chapter 130, Subchapter A, of this title (relating to Agriculture, Food, and Natural Resources); or

(ii) Chapter 130, Subchapter B, of this title (relating to Architecture and Construction); or

(iii) Chapter 130, Subchapter C, of this title (relating to Arts, Audio/Video Technology, and Communications); or

(iv) Chapter 130, Subchapter D, of this title (relating to Business Management and Administration); or

(v) Chapter 130, Subchapter F, of this title (relating to Finance); or

(vi) Chapter 130, Subchapter I, of this title (relating to Hospitality and Tourism); or

(vii) Chapter 130, Subchapter K, of this title (relating to Information Technology); or

(viii) Chapter 130, Subchapter M, of this title (relating to Manufacturing); or

(ix) Chapter 130, Subchapter N, of this title (relating to Marketing); or

(x) Chapter 130, Subchapter P, of this title (relating to Transportation, Distribution, and Logistics); or

(xi) Career Preparation I or II and Problems and Solutions in Chapter 127, Subchapter B, of this title if the course addresses a career from a field listed in clauses (i)-(x) of this subparagraph; or

(B) four English credits by selecting courses from Chapter 110 of this title to include three levels in one of the following areas:

(i) public speaking; or

(ii) debate; or

(iii) advanced broadcast journalism; or

(iv) advanced journalism: newspaper; or

(v) advanced journalism: yearbook; or

(vi) advanced journalism: literary magazine; or

(C) four technology applications credits by selecting from the following:

(i) Digital Design and Media Production; or

(ii) Digital Art and Animation; or

(iii) 3-D Modeling and Animation; or

(iv) Digital Communications in the 21st Century; or

(v) Digital Video and Audio Design; or

(vi) Web Communications; or

(vii) Web Design; or

(viii) Web Game Development; or

(ix) Independent Study in Evolving/Emerging Technologies; or

(D) a coherent sequence of four credits from subparagraph (A), (B), or (C) of this paragraph.

(3) Public services. A student may earn a public services endorsement by completing the requirements specified in subsection (e) of this section and:

(A) a coherent sequence of courses for four or more credits in CTE that consists of at least two courses in the same career cluster and at least one advanced CTE course. The courses may be selected from Chapter 130 of this title, Chapter 127 of this title, or CTE innovative courses approved by the commissioner. The final course in the sequence must be selected from one of the following:

(i) Chapter 130, Subchapter E, of this title (relating to Education and Training); or

(ii) Chapter 130, Subchapter G, of this title (relating to Government and Public Administration); or

(iii) Chapter 130, Subchapter H, of this title (relating to Health Science); or

(iv) Chapter 130, Subchapter J, of this title (relating to Human Services); or

(v) Chapter 130, Subchapter L, of this title (relating to Law, Public Safety, Corrections, and Security); or

(vi) Career Preparation I or II and Problems and Solutions in Chapter 127, Subchapter B, of this title if the course addresses a field from a cluster listed in clauses (i)-(v) of this subparagraph; or

(B) four courses in Junior Reserve Officer Training Corps (JROTC).

(4) Arts and humanities. A student may earn an arts and humanities endorsement by completing the requirements specified in subsection (e) of this section and:

(A) five social studies credits by selecting courses from Chapter 113 of this title or Chapter 118 of this title (relating to Texas Essential Knowledge and Skills for Economics with Emphasis on the Free Enterprise System and Its Benefits); or

(B) four levels of the same language in a language other than English by selecting courses in accordance with Chapter 114 of this title, which may include Advanced Language for Career Applications; or

(C) two levels of the same language in a language other than English and two levels of a different language in a language other than English by selecting courses in accordance with Chapter 114 of this title; or

(D) four levels of American sign language by selecting courses in accordance with Chapter 114 of this title; or

(E) a coherent sequence of four credits by selecting courses from one or two categories or disciplines in fine arts from Chapter 117 of this title or innovative courses approved by the commissioner; or

(F) four English credits by selecting from the following:

(i) English IV; or

(ii) Independent Study in English; or

(iii) Literary Genres; or

(iv) Creative Writing; or

(v) Research and Technical Writing; or

(vi) Humanities; or

(vii) Communication Applications; or

(viii) AP English Literature and Composition; or

(ix) AP English Language and Composition; or

(x) IB Language Studies A: Language and Literature Standard Level; or

(xi) IB Language Studies A: Language and Literature Higher Level; or

(xii) IB Language Studies A: Literature Standard Level; or

(xiii) IB Language Studies A: Literature Higher Level; or

(xiv) IB Literature and Performance Standard Level.

[(x) IB Language Studies A1 Higher Level.]

(5) Multidisciplinary studies. A student may earn a multidisciplinary studies endorsement by completing the requirements specified in subsection (e) of this section and:

(A) four advanced courses that prepare a student to enter the workforce successfully or postsecondary education without remediation from within one endorsement area or among endorsement areas that are not in a coherent sequence; or

(B) four credits in each of the four foundation subject areas to include [English IV and] chemistry and/or physics and English IV or a comparable AP or IB English course; or

(C) four credits in Advanced Placement, International Baccalaureate, or dual credit selected from English, mathematics, science, social studies, economics, languages other than English, or fine arts.

(g) A course completed as part of the set of four courses needed to satisfy an endorsement requirement may also satisfy a requirement under §74.12(b) and (c) of this title and subsection (e)(2), (4), (5), and (6) of this section, including an elective requirement. The same course may count as part of the set of four courses for more than one endorsement.

§74.14.Performance Acknowledgments.

(a) A student may earn a performance acknowledgment on the student's transcript for outstanding performance in a dual credit course by successfully completing:

(1) at least 12 hours of college academic courses, including those taken for dual credit as part of the Texas core curriculum, and advanced technical credit courses, including locally articulated courses, with a grade of the equivalent of 3.0 or higher on a scale of 4.0; or

(2) an associate degree while in high school.

(b) A student may earn a performance acknowledgment on the student's transcript for outstanding performance in bilingualism and biliteracy as follows.

(1) A student may earn a performance acknowledgment by demonstrating proficiency in accordance with local school district grading policy in two or more languages by:

(A) completing all English language arts requirements and maintaining a minimum grade point average (GPA) of the equivalent of 80 on a scale of 100; and

(B) satisfying one of the following:

(i) completion of a minimum of three credits in the same language in a language other than English with a minimum GPA of the equivalent of 80 on a scale of 100; or

(ii) demonstrated proficiency in the Texas Essential Knowledge and Skills for Level IV or higher in a language other than English with a minimum GPA of the equivalent of 80 on a scale of 100; or

(iii) completion of at least three credits in foundation subject area courses in a language other than English with a minimum GPA of 80 on a scale of 100; or

(iv) demonstrated proficiency in one or more languages other than English through one of the following methods:

(I) a score of 3 or higher on a College Board Advanced Placement examination for a language other than English; or

(II) a score of 4 or higher on an International Baccalaureate examination for a higher-level languages other than English course; or

(III) performance on a national assessment of language proficiency in a language other than English of at least Intermediate High or its equivalent.

(2) In addition to meeting the requirements of paragraph (1) of this subsection, to earn a performance acknowledgment in bilingualism and biliteracy, an English language learner must also have:

(A) participated in and met the exit criteria for a bilingual or English as a second language (ESL) program; and

(B) scored at the Advanced High level on the Texas English Language Proficiency Assessment System (TELPAS).

(c) A student may earn a performance acknowledgment on the student's transcript for outstanding performance on a College Board Advanced Placement test or International Baccalaureate examination by earning:

(1) a score of 3 or above on a College Board Advanced Placement examination; or

(2) a score of 4 or above on an International Baccalaureate examination.

(d) A student may earn a performance acknowledgment on the student's transcript for outstanding performance on an established, valid, reliable, and nationally norm-referenced preliminary college preparation assessment instrument used to measure a student's progress toward readiness for college and the workplace or on an established valid, reliable, and nationally norm-referenced assessment instrument used by colleges and universities as part of their undergraduate admissions process by:

(1) earning a score on the Preliminary SAT/National Merit Scholarship Qualifying Test (PSAT/NMSQT®) that qualifies the student for recognition as a commended scholar or higher by the College Board and National Merit Scholarship Corporation, as part of the National Hispanic Recognition Program (NHRP) of the College Board or as part of the National Achievement Scholarship Program of the National Merit Scholarship Corporation;

(2) achieving the ACT® [college] readiness benchmark score on at least three [two] of the five [four] subject tests on the ACT AspireTM examination;

(3) earning a composite score [scores] of at least 1310 on [410 on the evidence-based reading section and 520 on the mathematics section of] the SAT®; or

(4) earning a composite score on the ACT® examination of 28 (excluding the writing subscore).

(e) A student may earn a performance acknowledgment on the student's transcript for earning a state-recognized or nationally or internationally recognized business or industry certification or license as follows.

(1) A student may earn a performance acknowledgment with:

(A) performance on an examination or series of examinations sufficient to obtain a nationally or internationally recognized business or industry certification; or

(B) performance on an examination sufficient to obtain a government-required credential to practice a profession.

(2) Nationally or internationally recognized business or industry certification shall be defined as an industry-validated credential that complies with knowledge and skills standards promulgated by a nationally or internationally recognized business, industry, professional, or government entity representing a particular profession or occupation that is issued by or endorsed by:

(A) a national or international business, industry, or professional organization;

(B) a state agency or other government entity; or

(C) a state-based industry association.

(3) Certifications or licensures for performance acknowledgements shall:

(A) be age appropriate for high school students;

(B) represent a student's substantial course of study and/or end-of-program knowledge and skills;

(C) include an industry-recognized examination or series of examinations, an industry-validated skill test, or demonstrated proficiency through documented, supervised field experience; and

(D) represent substantial knowledge and multiple skills needed for successful entry into a high-skill occupation.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on December 4, 2017.

TRD-201704933

Cristina De La Fuente-Valadez

Director, Rulemaking

Texas Education Agency

Earliest possible date of adoption: January 14, 2018

For further information, please call: (512) 475-1497


CHAPTER 109. BUDGETING, ACCOUNTING, AND AUDITING

SUBCHAPTER D. UNIFORM BANK BID OR REQUEST FOR PROPOSAL AND DEPOSITORY CONTRACT

19 TAC §109.52

The State Board of Education (SBOE) proposes amendment to §109.52, concerning the uniform depository bank contract and surety bond forms. The proposed amendment would update the depository contract adopted in rule to reflect changes made by Senate Bill (SB) 754, 85th Texas Legislature, Regular Session, 2017.

Section 109.52 establishes the requirement that each school district select at least one bank as a depository and enter into a depository contract with the bank, providing the completed contract to the Texas Education Agency (TEA). Section 109.52 also establishes the requirement that a district provide a completed surety bond form to the TEA if the depository bank uses a surety bond to secure district deposits. The section includes the depository contract form and surety bond form with the content prescribed by the SBOE.

SB 754, 85th Texas Legislature, Regular Session, 2017, amended the Texas Education Code (TEC), §45.205(b), to allow the school district depository contract to be extended a total of three two-year terms. In addition, the bill allows the depository contract to be modified for each two-year extension if both the school district and the district's depository bank mutually agree to the terms.

The proposed amendment to §109.52 would implement SB 754 by modifying Figure: 19 TAC §109.52(b) to allow a school district depository contract to be extended to the number of two-year terms allowed by the TEC, §45.205(b).

The SBOE approved the amendment for first reading and filing authorization at its November 10, 2017 meeting.

Section 109.52 requires school districts to submit to the TEA an executed depository contract. The proposed amendment would require school districts to submit to the TEA an extension form every two years (for a maximum of three extensions) communicating that they are still under the same depository contract. The proposed amendment would have no new locally maintained paperwork requirements.

FISCAL NOTE. Leo Lopez, associate commissioner for school finance/ chief school finance officer, has determined that for the first five-year period the proposed amendment is in effect there will be no additional costs to state or local government as a result of enforcing or administering the proposed 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 and, therefore, are not subject to Texas Government Code, §2001.0045.

GOVERNMENT GROWTH IMPACT. In accordance with Texas Government Code, §2001.0221, TEA staff has determined that the proposed amendment would expand an existing regulation. The proposed regulation would add an additional two-year extension period for school districts to extend their current depository contracts. It also provides additional flexibility during the extension periods to allow for modification of the contract.

PUBLIC BENEFIT/COST NOTE. Mr. Lopez 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 amendment will be an updated contract for use with a depository bank and additional flexibility in extension years. 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. 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 rules@tea.texas.gov. A request for a public hearing on the proposed amendment 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.

STATUTORY AUTHORITY. The amendment is proposed under the Texas Education Code (TEC), §7.102(c)(34), which requires the State Board of Education (SBOE) to prescribe uniform bid blanks for school districts to use in selecting a depository bank as required by the TEC, §45.206; TEC, §45.205(b), as amended by SB 754, 85th Texas Legislature, Regular Session, 2017, which provides the term for a contract between a school district and the district's depository bank; TEC, §45.206, which requires a school district to acquire a bank to be its depository by utilizing either a bid or proposal using the forms prescribed by the SBOE; and TEC, §45.208, which requires that a school district use the depository contract prescribed by the SBOE; and that the depository bank secure the highest daily amount of cash in the bank using a bond or other surety agreements; and that the contract, bid or proposal, and bond be filed with the agency.

CROSS REFERENCE TO STATUTE. The amendment implements the Texas Education Code (TEC), §§7.102(c)(34); 45.205(b), as amended by SB 754, 85th Texas Legislature, Regular Session, 2017; 45.206; and 45.208.

§109.52.Uniform Depository Bank Contract and Surety Bond Forms.

(a) Each school district must use the uniform depository contract form as provided in subsection (b) of this section. The district must complete the form and file it electronically with the Texas Education Agency (TEA) as specified in the Texas Education Code (TEC), §45.208, and in accordance with filing instructions provided on the TEA website.

(b) This subsection provides the uniform depository contract form, entitled "Depository Contract for Funds of Independent School Districts under the Texas Education Code, Chapter 45, Subchapter G, School District Depositories."

Figure: 19 TAC §109.52(b) (.pdf)

[Figure: 19 TAC §109.52(b)]

(c) If a district's depository elects a surety bond to secure the district's deposit amounts less any applicable Federal Deposit Insurance Corporation insurance, the depository must complete the surety bond form provided in subsection (d) of this section, attach it to the contract, and file it with the district. The district must file a copy of the contract and the surety bond form with the TEA as specified in the TEC, §45.208, and in accordance with filing instructions provided on the TEA website.

(d) This subsection provides the uniform surety bond form, entitled "Texas School Depository Surety Bond Form."

Figure: 19 TAC §109.52(d) (No change.)

(e) If the TEA receives a contract form and determines that it is incomplete, the TEA will notify the district.

(f) A district that has no current depository contract in force and filed with the TEA will receive its warrants from the TEA by US mail.

(g) For depository contract filing requirements for charter schools, refer to §100.1043 of this title (relating to Status and Use of State Funds; Depository Contract).

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on December 4, 2017.

TRD-201704935

Cristina De La Fuente-Valadez

Director, Rulemaking

Texas Education Agency

Earliest possible date of adoption: January 14, 2018

For further information, please call: (512) 475-1497


CHAPTER 110. TEXAS ESSENTIAL KNOWLEDGE AND SKILLS FOR ENGLISH LANGUAGE ARTS AND READING

SUBCHAPTER D. OTHER HIGH SCHOOL ENGLISH LANGUAGE ARTS AND READING COURSES

19 TAC §§110.86, 110.87, 110.89 - 110.93

The State Board of Education (SBOE) proposes amendments to §110.86 and §110.87 and new §§110.89-110.93, concerning International Baccalaureate (IB) courses for English language arts and reading. The proposed amendments and new sections would align the rules with current course offerings by the IB organization.

For students to earn state credit toward specific graduation requirements, a course must be approved by the SBOE and included in SBOE rule. At the September 2017 SBOE meeting, the committee discussed IB courses that are not currently included in SBOE rule and considerations regarding the appropriate amount of state credit that should be awarded for IB courses. At that time, the board requested that agency staff prepare rule text to address these issues and requested that staff balance the chapters that would be updated over two different meetings. At its November 2017 meeting, the SBOE considered for first reading and filing authorization proposed amendments to align the Texas Essential Knowledge and Skills for English language arts and reading, mathematics, science, and languages other than English with current IB course offerings.

The SBOE approved revisions to 19 TAC Chapters 110, 111, 112, and 114 for first reading and filing authorization at its November 10, 2017 meeting.

The proposed revisions would have no procedural and reporting requirements. The proposed revisions would have no locally maintained paperwork requirements.

FISCAL NOTE. Monica Martinez, associate commissioner for standards and support services, has determined that for the first five-year period the proposed amendments and new sections are in effect there will be no additional costs to state or local government as a result of enforcing or administering the proposed amendments and new sections. There is no effect on local economy for the first five years that the proposed amendments and new sections are in effect; therefore, no local employment impact statement is required under Texas Government Code, §2001.022. The proposed amendments and new sections do not impose a cost on regulated persons and, therefore, are not subject to Texas Government Code, §2001.0045.

GOVERNMENT GROWTH IMPACT. The TEA has determined that the proposed amendments and new sections do not have a government growth impact pursuant to Texas Government Code, §2001.0221.

PUBLIC BENEFIT/COST NOTE. Ms. Martinez has determined that for each year of the first five years the proposed amendments and new sections are in effect, the public benefit anticipated as a result of enforcing the amendments and new sections will include the availability of additional IB courses to allow students more flexibility in meeting state requirements for graduation. There is no anticipated economic cost to persons who are required to comply with the proposed amendments and new sections.

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. 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 rules@tea.texas.gov. A request for a public hearing on the proposed amendments and new sections 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.

STATUTORY AUTHORITY. The amendments and new sections are proposed under the Texas Education Code (TEC), §7.102(c)(4), which requires the State Board of Education (SBOE) to establish curriculum and graduation requirements; TEC, §28.002, which identifies the subjects of the required curriculum and requires the SBOE by rule to identify the essential knowledge and skills of each subject in the required curriculum that all students should be able to demonstrate and that will be used in evaluating instructional materials and addressed on the state assessment instruments; and TEC, §28.025, as amended by HB 3593 and SB 826, 85th Texas Legislature, Regular Session, 2017, which requires the SBOE by rule to determine the curriculum requirements for the foundation high school graduation program that are consistent with the required curriculum under the TEC, §28.002.

CROSS REFERENCE TO STATUTE. The amendments and new sections implement the Texas Education Code, §§7.102(c)(4); 28.002; and 28.025, as amended by House Bill (HB) 3593 and Senate Bill (SB) 826, 85th Texas Legislature, Regular Session, 2017.

§110.86.International Baccalaureate (IB) Language Studies A: Language and Literature [A1] Standard Level ([One-Half to] One Credit).

(a) General requirements. Students shall [can] be awarded [one-half to] one credit for successful completion of this course [International Baccalaureate (IB) Language Studies A1 Standard Level. To offer this course, the district must meet all requirements of the International Baccalaureate Organization, including teacher training/certification and IB assessment]. Recommended prerequisite [prerequisites]: English II. This course is recommended for students in Grade 11 or 12.

(b) Content requirements. Content requirements for IB Language Studies A: Language and Literature [A1] Standard Level are prescribed by the International Baccalaureate Organization and in §110.33 of this title (relating to English Language Arts and Reading, English III (One Credit), Beginning with School Year 2009-2010) and §110.34 of this title (relating to English Language Arts and Reading, English IV (One Credit), Beginning with School Year 2009-2010). Subject [Curriculum] guides may be obtained from International Baccalaureate of North America.

§110.87.International Baccalaureate (IB) Language Studies A: Language and Literature [A1] Higher Level (Two Credits [One-Half to One Credit]).

(a) General requirements. Students shall [can] be awarded two credits [one-half to one credit] for successful completion of this course [International Baccalaureate (IB) Language Studies A1 Higher Level. To offer this course, the district must meet all requirements of the International Baccalaureate Organization, including teacher training/certification and IB assessment]. Recommended prerequisite: English II [prerequisites: Language Studies A1 Standard Level]. This course is recommended for students in Grade 11 or 12.

(b) Content requirements. Content requirements for IB Language Studies A: Language and Literature [A1] Higher Level are prescribed by the International Baccalaureate Organization and in §110.33 of this title (relating to English Language Arts and Reading, English III (One Credit), Beginning with School Year 2009-2010) and §110.34 of this title (relating to English Language Arts and Reading, English IV (One Credit), Beginning with School Year 2009-2010). Subject [Curriculum] guides may be obtained from International Baccalaureate of North America.

§110.89.International Baccalaureate (IB) Language Studies A: Literature Standard Level (One Credit).

(a) General requirements. Students shall be awarded one credit for successful completion this course. Recommended prerequisite: English II. This course is recommended for students in Grade 11 or 12.

(b) Content requirements. Content requirements for IB Language Studies A: Literature Standard Level are prescribed by the International Baccalaureate Organization and in §110.33 of this title (relating to English Language Arts and Reading, English III (One Credit), Beginning with School Year 2009-2010) and §110.34 of this title (relating to English Language Arts and Reading, English IV (One Credit), Beginning with School Year 2009-2010). Subject guides may be obtained from International Baccalaureate of North America.

§110.90.International Baccalaureate (IB) Language Studies A: Literature Higher Level (Two Credits).

(a) General requirements. Students shall be awarded two credits for successful completion of this course. Recommended prerequisite: English II. This course is recommended for students in Grade 11 or 12.

(b) Content requirements. Content requirements for IB Language Studies A: Literature Higher Level are prescribed by the International Baccalaureate Organization and in §110.33 of this title (relating to English Language Arts and Reading, English III (One Credit), Beginning with School Year 2009-2010) and §110.34 of this title (relating to English Language Arts and Reading, English IV (One Credit), Beginning with School Year 2009-2010). Subject guides may be obtained from International Baccalaureate of North America.

§110.91.International Baccalaureate (IB) Literature and Performance Standard Level (Two Credits).

(a) General requirements. Students shall be awarded two credits for successful completion of this course. Recommended prerequisite: English II. This course is recommended for students in Grade 11 or 12.

(b) Content requirements. Content requirements for IB Literature and Performance Standard Level are prescribed by the International Baccalaureate Organization and in §110.33 of this title (relating to English Language Arts and Reading, English III (One Credit), Beginning with School Year 2009-2010) and §110.34 of this title (relating to English Language Arts and Reading, English IV (One Credit), Beginning with School Year 2009-2010). Subject guides may be obtained from International Baccalaureate of North America.

§110.92.International Baccalaureate (IB) Philosophy Standard Level (One Credit).

(a) General requirements. Students shall be awarded one credit for successful completion of this course. Recommended prerequisite: English II. This course is recommended for students in Grade 11 or 12.

(b) Content requirements. Content requirements for IB Philosophy Standard Level are prescribed by the International Baccalaureate Organization. Subject guides may be obtained from International Baccalaureate of North America.

§110.93.International Baccalaureate (IB) Philosophy Higher Level (Two Credits).

(a) General requirements. Students shall be awarded two credits for successful completion of this course. Recommended prerequisite: English II. This course is recommended for students in Grade 11 or 12.

(b) Content requirements. Content requirements for IB Philosophy Higher Level are prescribed by the International Baccalaureate Organization. Subject guides may be obtained from International Baccalaureate of North America.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on December 4, 2017.

TRD-201704943

Cristina De La Fuente-Valadez

Director, Rulemaking

Texas Education Agency

Earliest possible date of adoption: January 14, 2018

For further information, please call: (512) 475-1497


CHAPTER 111. TEXAS ESSENTIAL KNOWLEDGE AND SKILLS FOR MATHEMATICS

SUBCHAPTER D. OTHER HIGH SCHOOL MATHEMATICS COURSES

19 TAC §§111.56 - 111.59

The State Board of Education (SBOE) proposes amendments to §§111.56-111.59, concerning International Baccalaureate (IB) courses for mathematics. The proposed amendments would align the rules with current course offerings by the IB organization.

For students to earn state credit toward specific graduation requirements, a course must be approved by the SBOE and included in SBOE rule. At the September 2017 SBOE meeting, the committee discussed IB courses that are not currently included in SBOE rule and considerations regarding the appropriate amount of state credit that should be awarded for IB courses. At that time, the board requested that agency staff prepare rule text to address these issues and requested that staff balance the chapters that would be updated over two different meetings. At its November 2017 meeting, the SBOE considered for first reading and filing authorization proposed amendments to align the Texas Essential Knowledge and Skills for English language arts and reading, mathematics, science, and languages other than English with current IB course offerings.

The SBOE approved revisions for 19 TAC Chapters 110, 111, 112, and 114 for first reading and filing authorization at its November 10, 2017 meeting.

The proposed revisions would have no procedural and reporting requirements. The proposed revisions would have no locally maintained paperwork requirements.

FISCAL NOTE. Monica Martinez, associate commissioner for standards and support services, has determined that for the first five-year period the proposed amendments are in effect there will be no additional costs to state or local government as a result of enforcing or administering the proposed amendments. There is no effect on local economy for the first five years that the proposed amendments are in effect; therefore, no local employment impact statement is required under Texas Government Code, §2001.022. The proposed amendments do not impose a cost on regulated persons and, therefore, are not subject to Texas Government Code, §2001.0045.

GOVERNMENT GROWTH IMPACT. The TEA has determined that the proposed amendments do not have a government growth impact pursuant to Texas Government Code, §2001.0221.

PUBLIC BENEFIT/COST NOTE. Ms. Martinez has determined that for each year of the first five years the proposed amendments are in effect, the public benefit anticipated as a result of enforcing the amendments will include the availability of additional IB courses to allow students more flexibility in meeting state requirements for graduation. There is no anticipated economic cost to persons who are required to comply with the proposed amendments.

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. 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 rules@tea.texas.gov. A request for a public hearing on the proposed amendments 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.

STATUTORY AUTHORITY. The amendments are proposed under the Texas Education Code (TEC), §7.102(c)(4), which requires the State Board of Education (SBOE) to establish curriculum and graduation requirements; TEC, §28.002, which identifies the subjects of the required curriculum and requires the SBOE by rule to identify the essential knowledge and skills of each subject in the required curriculum that all students should be able to demonstrate and that will be used in evaluating instructional materials and addressed on the state assessment instruments; and TEC, §28.025, as amended by HB 3593 and SB 826, 85th Texas Legislature, Regular Session, 2017, which requires the SBOE by rule to determine the curriculum requirements for the foundation high school graduation program that are consistent with the required curriculum under the TEC, §28.002.

CROSS REFERENCE TO STATUTE. The amendments implement the Texas Education Code, §§7.102(c)(4); 28.002; and 28.025, as amended by House Bill (HB) 3593 and Senate Bill (SB) 826, 85th Texas Legislature, Regular Session, 2017.

§111.56.International Baccalaureate (IB) [IB] Mathematical Studies Standard Level (Two Credits [One-Half to One Credit]).

(a) General requirements. Students shall [can] be awarded two credits [one-half to one credit] for successful completion of this course [IB Mathematical Studies Standard Level. To offer this course, the district must meet all requirements of the International Baccalaureate Organization, including teacher training/certification and IB assessment]. Recommended prerequisites: Algebra II, Geometry. This course is recommended for students in Grade 11 or 12.

(b) Content requirements. Content requirements for IB Mathematical Studies Standard Level are prescribed by the International Baccalaureate Organization. Subject [Curriculum] guides may be obtained from International Baccalaureate of North America.

§111.57.International Baccalaureate (IB) [IB] Mathematics Standard Level (Two Credits [One-Half to One Credit]).

(a) General requirements. Students shall [can] be awarded two credits [one-half to one credit] for successful completion of this course [IB Mathematics Standard Level. To offer this course, the district must meet all requirements of the International Baccalaureate Organization, including teacher training/certification and IB assessment]. Recommended prerequisites: Algebra II, Geometry. This course is recommended for students in Grade 11 or 12.

(b) Content requirements. Content requirements for IB Mathematics Standard Level are prescribed by the International Baccalaureate Organization. Subject [Curriculum] guides may be obtained from International Baccalaureate of North America.

§111.58.International Baccalaureate (IB) [IB] Mathematics Higher Level (Two Credits [One-Half to One Credit]).

(a) General requirements. Students shall [can] be awarded two credits [one-half to one credit] for successful completion of this course [IB Mathematics Higher Level. To offer this course, the district must meet all requirements of the International Baccalaureate Organization, including teacher training/certification and IB assessment]. Recommended prerequisites: Algebra II, Geometry [prerequisite: IB Mathematical Studies Standard Level or IB Mathematics Standard Level]. This course is recommended for students in Grade 11 or 12.

(b) Content requirements. Content requirements for IB Mathematics Higher Level are prescribed by the International Baccalaureate Organization. Subject [Curriculum] guides may be obtained from International Baccalaureate of North America.

§111.59.International Baccalaureate (IB) [IB] Further Mathematics Higher Level (Two Credits [One-Half to One Credit]).

(a) General requirements. Students shall [can] be awarded two credits [one-half to one credit] for successful completion of this course [IB Further Mathematics Higher Level. To offer this course, the district must meet all requirements of the International Baccalaureate Organization, including teacher training/certification and IB assessment]. Recommended prerequisites: Algebra II, Geometry [prerequisite: IB Mathematics Higher Level]. This course is recommended for students in Grade 11 or 12.

(b) Content requirements. Content requirements for IB Further Mathematics Higher Level are prescribed by the International Baccalaureate Organization. Subject [Curriculum] guides may be obtained from International Baccalaureate of North America.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on December 4, 2017.

TRD-201704944

Cristina De La Fuente-Valadez

Director, Rulemaking

Texas Education Agency

Earliest possible date of adoption: January 14, 2018

For further information, please call: (512) 475-1497


CHAPTER 112. TEXAS ESSENTIAL KNOWLEDGE AND SKILLS FOR SCIENCE

SUBCHAPTER D. OTHER SCIENCE COURSES

19 TAC §§112.70, 112.73 - 112.80

The State Board of Education (SBOE) proposes amendments to §§112.70 and 112.73-112.78 and new §112.79 and §112.80, concerning International Baccalaureate (IB) courses for science. The proposed amendments and new sections would align the rules with current course offerings by the IB organization.

For students to earn state credit toward specific graduation requirements, a course must be approved by the SBOE and included in SBOE rule. At the September 2017 SBOE meeting, the committee discussed IB courses that are not currently included in SBOE rule and considerations regarding the appropriate amount of state credit that should be awarded for IB courses. At that time, the board requested that agency staff prepare rule text to address these issues and requested that staff balance the chapters that would be updated over two different meetings. At its November 2017 meeting, the SBOE considered for first reading and filing authorization proposed amendments to align the Texas Essential Knowledge and Skills for English language arts and reading, mathematics, science, and languages other than English with current IB course offerings.

The SBOE approved revisions for 19 TAC Chapters 110, 111, 112, and 114 for first reading and filing authorization at its November 10, 2017, meeting.

The proposed revisions would have no procedural and reporting requirements. The proposed revisions would have no locally maintained paperwork requirements.

FISCAL NOTE. Monica Martinez, associate commissioner for standards and support services, has determined that for the first five-year period the proposed amendments and new sections are in effect there will be no additional costs to state or local government as a result of enforcing or administering the proposed amendments and new sections. There is no effect on local economy for the first five years that the proposed amendments and new sections are in effect; therefore, no local employment impact statement is required under Texas Government Code, §2001.022. The proposed amendments and new sections do not impose a cost on regulated persons and, therefore, are not subject to Texas Government Code, §2001.0045.

GOVERNMENT GROWTH IMPACT. The TEA has determined that the proposed amendments and new sections do not have a government growth impact pursuant to Texas Government Code, §2001.0221.

PUBLIC BENEFIT/COST NOTE. Ms. Martinez has determined that for each year of the first five years the proposed amendments and new sections are in effect, the public benefit anticipated as a result of enforcing the amendments and new sections will include the availability of additional IB courses to allow students more flexibility in meeting state requirements for graduation. There is no anticipated economic cost to persons who are required to comply with the proposed amendments and new sections.

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. 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 rules@tea.texas.gov. A request for a public hearing on the proposed amendments and new sections 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.

STATUTORY AUTHORITY. The amendments and new sections are proposed under the Texas Education Code (TEC), §7.102(c)(4), which requires the State Board of Education (SBOE) to establish curriculum and graduation requirements; TEC, §28.002, which identifies the subjects of the required curriculum and requires the SBOE by rule to identify the essential knowledge and skills of each subject in the required curriculum that all students should be able to demonstrate and that will be used in evaluating instructional materials and addressed on the state assessment instruments; and TEC, §28.025, as amended by HB 3593 and SB 826, 85th Texas Legislature, Regular Session, 2017, which requires the SBOE by rule to determine the curriculum requirements for the foundation high school graduation program that are consistent with the required curriculum under the TEC, §28.002.

CROSS REFERENCE TO STATUTE. The amendments and new sections implement the Texas Education Code, §7.102(c)(4); 28.002; and 28.025, as amended by House Bill (HB) 3593 and Senate Bill (SB) 826, 85th Texas Legislature, Regular Session, 2017.

§112.70.International Baccalaureate (IB) Environmental Systems and Societies Standard Level [(IB)] (One Credit).

(a) General Requirements. Students shall [can] be awarded one credit for successful completion of this course. Recommended prerequisite: one credit [year] of high school science. This course is recommended for students in Grade 11 or 12.

(b) Content Requirements. Content requirements for International Baccalaureate (IB) Environmental Systems and Societies Standard Level are prescribed by the International Baccalaureate Organization. Subject guides may be obtained from International Baccalaureate of North America.

§112.73.International Baccalaureate (IB) Biology Standard Level (One Credit).

(a) General requirements. Students shall [can] be awarded one credit for successful completion of this course. Recommended prerequisites: two credits [years] of high school laboratory science. This course is recommended for students in Grade 11 or 12.

(b) Content requirements. Content requirements for International Baccalaureate (IB) Biology Standard Level are prescribed by the International Baccalaureate Organization. Subject guides may be obtained from International Baccalaureate of North America. §112.74. International Baccalaureate (IB) Biology Higher Level (Two Credits [One Credit]).

(a) General requirements. Students shall [can] be awarded two credits [one credit] for successful completion of this course. Recommended prerequisites: two credits [years] of high school laboratory science. This course is recommended for students in Grade 11 or 12.

(b) Content requirements. Content requirements for International Baccalaureate (IB) Biology Higher Level are prescribed by the International Baccalaureate Organization. Subject guides may be obtained from International Baccalaureate of North America.

§112.75.International Baccalaureate (IB) Chemistry Standard Level (One Credit).

(a) General requirements. Students shall [can] be awarded one credit for successful completion of this course. Recommended prerequisites: two credits [years] of high school laboratory science. This course is recommended for students in Grade 11 or 12.

(b) Content requirements. Content requirements for International Baccalaureate (IB) Chemistry Standard Level are prescribed by the International Baccalaureate Organization. Subject guides may be obtained from International Baccalaureate of North America.

§112.76.International Baccalaureate (IB) Chemistry Higher Level (Two Credits [One Credit]).

(a) General requirements. Students shall [can] be awarded two credits [one credit] for successful completion of this course. Recommended prerequisites: two credits [years] of high school laboratory science. This course is recommended for students in Grade 11 or 12.

(b) Content requirements. Content requirements for International Baccalaureate (IB) Chemistry Higher Level are prescribed by the International Baccalaureate Organization. Subject guides may be obtained from International Baccalaureate of North America.

§112.77.International Baccalaureate (IB) Physics Standard Level (One Credit).

(a) General requirements. Students shall [can] be awarded one credit for successful completion of this course. Recommended prerequisites: two credits [years] of high school laboratory science. This course is recommended for students in Grade 11 or 12.

(b) Content requirements. Content requirements for International Baccalaureate (IB) Physics Standard Level are prescribed by the International Baccalaureate Organization. Subject guides may be obtained from International Baccalaureate of North America.

§112.78.International Baccalaureate (IB) Physics Higher Level (Two Credits [One Credit]).

(a) General requirements. Students shall [can] be awarded two credits [one credit] for successful completion of this course. Recommended prerequisites: two credits [years] of high school laboratory science. This course is recommended for students in Grade 11 or 12.

(b) Content requirements. Content requirements for International Baccalaureate (IB) Physics Higher Level are prescribed by the International Baccalaureate Organization. Subject guides may be obtained from International Baccalaureate of North America.

§112.79.International Baccalaureate (IB) Sports, Exercise, and Health Science Standard Level (One Credit).

(a) General requirements. Students shall be awarded one credit for successful completion of this course. Recommended prerequisites: two credits of high school laboratory science. This course is recommended for students in Grade 11 or 12.

(b) Content requirements. Content requirements for International Baccalaureate (IB) Sports, Exercise, and Health Science Standard Level are prescribed by the International Baccalaureate Organization. Subject guides may be obtained from International Baccalaureate of North America.

§112.80.International Baccalaureate (IB) Sports, Exercise, and Health Science Higher Level (One Credit).

(a) General requirements. Students shall be awarded one credit for successful completion of this course. Recommended prerequisites: two credits of high school laboratory science. This course is recommended for students in Grade 11 or 12.

(b) Content requirements. Content requirements for International Baccalaureate (IB) Sports, Exercise, and Health Science Higher Level are prescribed by the International Baccalaureate Organization. Subject guides may be obtained from International Baccalaureate of North America.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on December 4, 2017.

TRD-201704945

Cristina De La Fuente-Valadez

Director, Rulemaking

Texas Education Agency

Earliest possible date of adoption: January 14, 2018

For further information, please call: (512) 475-1497


CHAPTER 114. TEXAS ESSENTIAL KNOWLEDGE AND SKILLS FOR LANGUAGES OTHER THAN ENGLISH

SUBCHAPTER D. OTHER LANGUAGES OTHER THAN ENGLISH COURSES

19 TAC §§114.70 - 114.74

The State Board of Education (SBOE) proposes amendments to §§114.70-114.73 and new §114.74, concerning International Baccalaureate (IB) courses for languages other than English. The proposed amendments and new section would align the rules with current course offerings by the IB organization.

For students to earn state credit toward specific graduation requirements, a course must be approved by the SBOE and included in SBOE rule. At the September 2017 SBOE meeting, the committee discussed IB courses that are not currently included in SBOE rule and considerations regarding the appropriate amount of state credit that should be awarded for IB courses. At that time, the board requested that agency staff prepare rule text to address these issues and requested that staff balance the chapters that would be updated over two different meetings. At its November 2017 meeting, the SBOE considered for first reading and filing authorization proposed amendments to align the Texas Essential Knowledge and Skills for English language arts and reading, mathematics, science, and languages other than English with current IB course offerings.

The SBOE approved revisions for 19 TAC Chapters 110, 111, 112, and 114 for first reading and filing authorization at its November 10, 2017 meeting.

The proposed revisions would have no procedural and reporting requirements. The proposed revisions would have no locally maintained paperwork requirements.

FISCAL NOTE. Monica Martinez, associate commissioner for standards and support services, has determined that for the first five-year period the proposed amendments and new section are in effect there will be no additional costs to state or local government as a result of enforcing or administering the proposed amendments and new section. There is no effect on local economy for the first five years that the proposed amendments and new section are in effect; therefore, no local employment impact statement is required under Texas Government Code, §2001.022. The proposed amendments and new section do not impose a cost on regulated persons and, therefore, are not subject to Texas Government Code, §2001.0045.

GOVERNMENT GROWTH IMPACT. The TEA has determined that the proposed amendments and new section do not have a government growth impact pursuant to Texas Government Code, §2001.0221.

PUBLIC BENEFIT/COST NOTE. Ms. Martinez has determined that for each year of the first five years the proposed amendments and new section are in effect, the public benefit anticipated as a result of enforcing the amendments and new section will include the availability of additional IB courses to allow students more flexibility in meeting state requirements for graduation. There is no anticipated economic cost to persons who are required to comply with the proposed amendments and new section.

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. 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 rules@tea.texas.gov. A request for a public hearing on the proposed amendments and new section 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.

STATUTORY AUTHORITY. The amendments and new section are proposed under the Texas Education Code (TEC), §7.102(c)(4), which requires the State Board of Education (SBOE) to establish curriculum and graduation requirements; TEC, §28.002, which identifies the subjects of the required curriculum and requires the SBOE by rule to identify the essential knowledge and skills of each subject in the required curriculum that all students should be able to demonstrate and that will be used in evaluating instructional materials and addressed on the state assessment instruments; and TEC, §28.025, as amended by HB 3593 and SB 826, 85th Texas Legislature, Regular Session, 2017, which requires the SBOE by rule to determine the curriculum requirements for the foundation high school graduation program that are consistent with the required curriculum under the TEC, §28.002.

CROSS REFERENCE TO STATUTE. The amendments and new section implement the Texas Education Code, §§7.102(c)(4); 28.002; and 28.025, as amended by House Bill (HB) 3593 and Senate Bill (SB) 826, 85th Texas Legislature, Regular Session, 2017.

§114.70.International Baccalaureate (IB) Language B, Modern Languages[,] Standard Level (Two Credits [One Credit]).

(a) General requirements. Students shall be awarded two credits [one credit] for successful completion of this course. This course may be used to satisfy a credit requirement for Languages Other Than English, Level IV or higher. Prerequisite: [The prerequisite for this course is] Languages Other Than English, Level III, Intermediate Low to Intermediate Mid Proficiency or IB Language Ab Initio in the corresponding language or demonstrated equivalent proficiency. Students may take this course with a different target language for a maximum of three credits.

(b) Content requirements. Content requirements for approved IB language courses are prescribed by the International Baccalaureate Organization. Subject [Curriculum] guides may be obtained from International Baccalaureate of North America.

§114.71.International Baccalaureate (IB) Language B, Modern Languages[,] Higher Level (Two Credits [One Credit]).

(a) General requirements. Students shall be awarded two credits [one credit] for successful completion of this course. This course may be used to satisfy a credit requirement for Languages Other Than English, Level IV [V] or higher. Prerequisite: Languages Other Than English, Level III, Intermediate Low to Intermediate Mid Proficiency or IB Language Ab Initio in the corresponding language or demonstrated equivalent proficiency. [The prerequisite for this course is IB Language B, Standard Level, in the corresponding language.] Students may take this course with a different target language for a maximum of three credits.

(b) Content requirements. Content requirements for approved IB language courses are prescribed by the International Baccalaureate Organization. Subject [Curriculum] guides may be obtained from International Baccalaureate of North America.

§114.72.International Baccalaureate (IB) Classical Languages[,] Standard Level (Two Credits [One Credit]).

(a) General requirements. Students shall be awarded two credits [one credit] for successful completion of this course. This course may be used to satisfy a credit requirement for Languages Other Than English, Level IV or higher. Prerequisite: [The prerequisite for this course is] Languages Other Than English, Classical Languages, Level III, Novice Mid to Advanced Low Proficiency in the corresponding language or demonstrated equivalent proficiency. Students may take this course with a different target language for a maximum of three credits.

(b) Content requirements. Content requirements for approved IB language courses are prescribed by the International Baccalaureate Organization. Subject [Curriculum] guides may be obtained from International Baccalaureate of North America.

§114.73.International Baccalaureate (IB) Classical Languages[,] Higher Level (Two Credits [One Credit]).

(a) General requirements. Students shall be awarded two credits [one credit] for successful completion of this course. This course may be used to satisfy a credit requirement for Languages Other Than English, Level IV [V] or higher. Prerequisite: Languages Other Than English, Classical Languages, Level III, Novice Mid to Advanced Low Proficiency in the corresponding language or demonstrated equivalent proficiency. [The prerequisite for this course is IB Language B, Standard Level, in the corresponding language.] Students may take this course with a different target language for a maximum of three credits.

(b) Content requirements. Content requirements for approved IB language courses are prescribed by the International Baccalaureate Organization. Subject [Curriculum] guides may be obtained from International Baccalaureate of North America.

§114.74.International Baccalaureate (IB) Language Ab Initio Standard Level (Two Credits).

(a) General requirements. Students shall be awarded two credits for successful completion of this course. This course may be used to satisfy a credit requirement for Languages Other Than English, Level I or higher. Students may take this course with a different target language for a maximum of three credits.

(b) Content requirements. Content requirements for approved IB language courses are prescribed by the International Baccalaureate Organization. Subject guides may be obtained from International Baccalaureate of North America.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on December 4, 2017.

TRD-201704946

Cristina De La Fuente-Valadez

Director, Rulemaking

Texas Education Agency

Earliest possible date of adoption: January 14, 2018

For further information, please call: (512) 475-1497


CHAPTER 129. STUDENT ATTENDANCE

SUBCHAPTER B. STUDENT ATTENDANCE ACCOUNTING

19 TAC §129.21

The State Board of Education (SBOE) proposes amendment to §129.21, concerning student attendance accounting. The proposed amendment would update the rule to reflect changes made by Senate Bill (SB) 1152, 85th Texas Legislature, Regular Session, 2017.

Section 129.21 provides the student attendance accounting requirements school districts must follow and describes the manner in which student attendance is earned. The rule also provides a list of conditions under which a student who is not actually on campus at the time attendance is taken may be considered in attendance for Foundation School Program funding purposes.

SB 1152, 85th Texas Legislature, Regular Session, 2017, amended the Texas Education Code (TEC), §25.087, to allow a student who is pursuing enlistment in the military or the Texas National Guard to be counted as present for funding purposes for up to four days as long as the district verifies the student's activities related to the pursuit of the enlistment.

The proposed amendment to §129.21 would implement SB 1152 by updating subsection (j)(3) to add the TEC, §25.087(b-5), to the list of conditions for which an absent student may be counted present for funding purposes.

The SBOE approved the amendment for first reading and filing authorization at its November 10, 2017 meeting.

The TEC, §25.087, as amended by SB 1152, 85th Texas Legislature, Regular Session, 2017, requires a school district to adopt procedures to verify a student's activities related to pursuing enlistment in the military or the Texas National Guard. No data collection would result from the proposed amendment. Any locally maintained paperwork requirements resulting from the proposed amendment would correspond with and support the stated procedural and reporting implications.

FISCAL NOTE. Leo Lopez, associate commissioner for school finance/ chief school finance officer, has determined that for the first five-year period the proposed amendment is in effect there will be no additional costs to state or local government as a result of enforcing or administering the proposed 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 and, therefore, are not subject to Texas Government Code, §2001.0045.

GOVERNMENT GROWTH IMPACT. The TEA has determined that the proposed amendment does not have a government growth impact pursuant to Texas Government Code, §2001.0221.

PUBLIC BENEFIT/COST NOTE. Mr. Lopez 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 amendment will be alignment of the rule with statute and allowing students to be counted present for state funding purposes if they are absent to pursue enlistment in the military or the Texas National Guard. 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. 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 rules@tea.texas.gov. A request for a public hearing on the proposed amendment 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.

STATUTORY AUTHORITY. The amendment is proposed under the Texas Education Code (TEC), §12.106, which provides for charter schools to receive funding under certain conditions through the TEC, Chapter 42; TEC, §25.087, as amended by SB 1152, 85th Texas Legislature, Regular Session, 2017, which lists the excused absences under which a student shall be counted as if the student attended school for purposes of calculating the average daily attendance of students in the school district; and TEC, §42.004, which requires the commissioner, in accordance with rules adopted by the State Board of Education, to take such action and require such reports as are necessary to implement and administer the Foundation School Program under the TEC, Chapter 42.

CROSS REFERENCE TO STATUTE. The amendment implements the Texas Education Code (TEC), §§12.106; 25.087, as amended by SB 1152, 85th Texas Legislature, Regular Session, 2017; and 42.004.

§129.21.Requirements for Student Attendance Accounting for State Funding Purposes.

(a) All public schools in Texas must maintain records to reflect the average daily attendance (ADA) for the allocation of Foundation School Program (FSP) funds and other funds allocated by the Texas Education Agency (TEA). Superintendents, principals, and teachers are responsible to their school boards and to the state to maintain accurate, current attendance records.

(b) The commissioner of education is responsible for providing guidelines and procedures for attendance accounting in accordance with state law.

(c) The commissioner must provide for special circumstances regarding attendance accounting in accordance with the provisions of law.

(d) The superintendent of schools is responsible for the safekeeping of all attendance records and reports. The superintendent of schools may determine whether the properly certified attendance records or reports for the school year are to be stored in the central office, on the respective school campuses of the district, or at another secure location. Regardless of where such records are stored, they must be readily available for audit by the TEA division responsible for performing school financial audits.

(e) Districts must maintain records and make reports concerning student attendance and participation in special programs as required by the commissioner.

(f) If a school district chooses to use a locally developed record or automated system, the record or automated system must contain the minimum information required by the commissioner.

(g) A student must be enrolled for at least two hours of instruction to be considered in membership for one half day, and for at least four hours of instruction to be considered in membership for one full day.

(h) Attendance for all grades must be determined by the absences recorded in the second or fifth instructional hour of the day, unless the local school board adopts a district policy, or delegates to the superintendent the authority to establish procedures, for recording absences in an alternative hour, or unless the students for which attendance is being taken are enrolled in and participating in an alternative attendance accounting program approved by the commissioner.

(1) Students enrolled on a half-day basis may earn only one half day of attendance each school day. Attendance is determined for these pupils by recording absences in a period during the half day that they are scheduled to be present. Students enrolled on a full-day basis may earn one full day of attendance each school day.

(2) Students who are enrolled in and participating in an alternative attendance accounting program approved by the commissioner will earn attendance according to the statutory and rule provisions applicable to that program.

(3) The established period in which absences are recorded may not be changed during the school year.

(4) Students absent at the time the attendance roll is taken, during the daily period selected, are counted absent for the entire day, unless the students are enrolled in and participating in an alternative attendance accounting program approved by the commissioner. Students present at the time the attendance roll is taken, during the daily period selected, are counted present for the entire day, unless the students are enrolled in and participating in an alternative attendance accounting program approved by the commissioner.

(i) A student who is not actually in school at the time attendance is taken must not be counted in attendance for FSP funding purposes, unless the student is participating in an activity that meets the conditions set out in subsection (j) of this section, or unless the student is enrolled in and participating in an alternative attendance accounting program approved by the commissioner.

(j) A student not actually on campus at the time attendance is taken may be considered in attendance for FSP funding purposes under the following conditions.

(1) The student is participating in an activity that is approved by the local board of school trustees and is under the direction of a member of the professional or paraprofessional staff of the school district, or an adjunct staff member who:

(A) has a minimum of a bachelor's degree; and

(B) is eligible for participation in the Teacher Retirement System of Texas.

(2) The student is participating in a mentorship approved by district personnel to serve as one or more of the advanced measures needed to complete the Distinguished Achievement Program outlined in Chapter 74 of this title (relating to Curriculum Requirements).

(3) The student is absent for one of the purposes specified in the Texas Education Code (TEC), §25.087(b), (b-1), (b-2), (b-4), (b-5), or (c). Excused days for travel under the TEC, §25.087(b)(1), are limited to not more than one day for travel to and one day for travel from the applicable site. A temporary absence excused under the TEC, §25.087(b)(2), must be supported by a document such as a note from the health care professional.

(k) A student not actually on campus at the time attendance is taken also may be considered in attendance for FSP funding purposes under other conditions described in the handbook adopted under §129.1025 of this title (relating to Adoption by Reference: Student Attendance Accounting Handbook) related to off-campus instruction.

(l) Before a district or charter school may count a student in attendance under this section or in attendance when the student was allowed to leave campus during any part of the school day, the local school board or governing body must adopt a policy, or delegate to the superintendent the authority to establish procedures, addressing parental consent for a student to leave campus, and the district or charter school must distribute the policy or procedures to staff and to all parents of students in the district or charter school.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on December 4, 2017.

TRD-201704937

Cristina De La Fuente-Valadez

Director, Rulemaking

Texas Education Agency

Earliest possible date of adoption: January 14, 2018

For further information, please call: (512) 475-1497


CHAPTER 130. TEXAS ESSENTIAL KNOWLEDGE AND SKILLS FOR CAREER AND TECHNICAL EDUCATION

The State Board of Education (SBOE) proposes amendments to §§130.64, 130.69, 130.226, 130.230-130.234, 130.283, 130.284, 130.363-130.365, 130.404, 130.415, and 130.417 and new §130.286 and §130.287, concerning Texas Essential Knowledge and Skills (TEKS) for career and technical education (CTE). The proposed amendments and new sections would update rules in 19 TAC Chapter 130, Subchapter B, Architecture and Construction; Subchapter H, Health Science; Subchapter J, Human Services; Subchapter M, Manufacturing; and Subchapter O, Science, Technology, Engineering, and Mathematics, including correcting inconsistencies that have been identified in certain courses and adding new lab courses for Cosmetology.

In 2015, the SBOE adopted new CTE TEKS, which were implemented beginning with the 2017-2018 school year. Since the time of adoption, inconsistencies in the TEKS have been identified. Inconsistencies include prerequisite requirements, amount of credit, and duplicate or unclear student expectations. Additionally, in November 2016 the SBOE requested that staff prepare proposed TEKS for two laboratory courses in Cosmetology that could be available to districts to award a total of three credits each in Cosmetology I and II.

The SBOE approved the amendments and new sections for first reading and filing authorization at its November 10, 2017 meeting.

The proposed amendments and new sections would have no new procedural and reporting requirements. The proposed amendments and new sections would have no new locally maintained paperwork requirements.

FISCAL NOTE. Monica Martinez, associate commissioner for standards and support services, has determined that for the first five-year period the proposed amendments and new sections are in effect there will be no additional costs to state or local government as a result of enforcing or administering the proposed amendments and new sections. There is no effect on local economy for the first five years that the proposed amendments and new sections are in effect; therefore, no local employment impact statement is required under Texas Government Code, §2001.022. The proposed amendments and new sections do not impose a cost on regulated persons and, therefore, are not subject to Texas Government Code, §2001.0045.

GOVERNMENT GROWTH IMPACT. The TEA has determined that the proposed amendments and new sections do not have a government growth impact pursuant to Texas Government Code, §2001.0221.

PUBLIC BENEFIT/COST NOTE. Ms. Martinez has determined that for each year of the first five years the proposed amendments and new sections are in effect, the public benefit anticipated as a result of enforcing the amendments will include added flexibility in Cosmetology course options for students and districts and in prerequisites for certain CTE courses. There is no anticipated economic cost to persons who are required to comply with the proposed amendments and new sections.

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. 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 rules@tea.texas.gov. A request for a public hearing on the proposed amendments and new sections 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.

SUBCHAPTER B. ARCHITECTURE AND CONSTRUCTION

19 TAC §130.64, §130.69

STATUTORY AUTHORITY. The amendments are proposed under the Texas Education Code (TEC), §7.102(c)(4), which requires the State Board of Education (SBOE) to establish curriculum and graduation requirements; TEC, §28.002, which identifies the subjects of the required curriculum and requires the SBOE by rule to identify the essential knowledge and skills of each subject in the required curriculum that all students should be able to demonstrate and that will be used in evaluating instructional materials and addressed on the state assessment instruments; and TEC, §28.025, as amended by House Bill 3593 and Senate Bill 826, 85th Texas Legislature, Regular Session, 2017, which requires the SBOE by rule to determine the curriculum requirements for the foundation high school graduation program that are consistent with the required curriculum under the TEC, §28.002.

CROSS REFERENCE TO STATUTE. The amendments implement the Texas Education Code, §§7.102; 28.002; and 28.025, as amended by House Bill 3593 and Senate Bill 826, 85th Texas Legislature, Regular Session, 2017.

§130.64.Practicum in Construction Technology (Two Credits), Adopted 2015.

(a) General requirements. This course is recommended for students in Grade 12. Prerequisite: Construction Technology II, Building Maintenance Technology II; Electrical Technology II; Heating, Ventilation, and Air Conditioning (HVAC) and Refrigeration Technology II; Plumbing Technology I; or Mill and Cabinetmaking Technology. Students shall be awarded two credits for successful completion of this course. A student may repeat this course once for credit provided that the student is experiencing different aspects of the industry and demonstrating proficiency in additional and more advanced knowledge and skills.

(b) Introduction.

(1) - (2) (No change.)

(3) In Practicum in Construction Technology, students will be challenged with the application of [gained] knowledge and skills gained in previous construction-related coursework [from Construction Technology I and II]. In many cases students will be allowed to work at a job (paid or unpaid) outside of school or be involved in local projects the school has approved for this class.

(4) - (5) (No change.)

(c) (No change.)

§130.69.Extended Practicum in Construction Technology (One Credit), Adopted 2015.

(a) General requirements. This course is recommended for students in Grade 12. The practicum course is a paid or unpaid capstone experience for students participating in a coherent sequence of career and technical education courses in the Architecture and Construction Career Cluster. Prerequisite: Construction Technology II, Building Maintenance Technology II; Electrical Technology II; Heating, Ventilation, and Air Conditioning (HVAC) and Refrigeration Technology II; Plumbing Technology I; or Mill and Cabinetmaking Technology . Corequisite: Practicum in Construction Technology. This course must be taken concurrently with Practicum in Construction Technology and may not be taken as a stand-alone course. Students shall be awarded one credit for successful completion of this course. A student may repeat this course once for credit provided that the student is experiencing different aspects of the industry and demonstrating proficiency in additional and more advanced knowledge and skills.

(b) Introduction.

(1) - (2) (No change.)

(3) In Extended Practicum in Construction Technology, students will be challenged with the application of [gained] knowledge and skills gained in previous construction-related coursework [from Construction Technology I and II]. In many cases students will be allowed to work at a job (paid or unpaid) outside of school or be involved in local projects the school has approved for this class.

(4) - (5) (No change.)

(c) (No change.)

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on December 4, 2017.

TRD-201704938

Cristina De La Fuente-Valadez

Director, Rulemaking

Texas Education Agency

Earliest possible date of adoption: January 14, 2018

For further information, please call: (512) 475-1497


SUBCHAPTER H. HEALTH SCIENCE

19 TAC §§130.226, 130.230 - 130.234

STATUTORY AUTHORITY. The amendments are proposed under the Texas Education Code (TEC), §7.102(c)(4), which requires the State Board of Education (SBOE) to establish curriculum and graduation requirements; TEC, §28.002, which identifies the subjects of the required curriculum and requires the SBOE by rule to identify the essential knowledge and skills of each subject in the required curriculum that all students should be able to demonstrate and that will be used in evaluating instructional materials and addressed on the state assessment instruments; and TEC, §28.025, as amended by House Bill 3593 and Senate Bill 826, 85th Texas Legislature, Regular Session, 2017, which requires the SBOE by rule to determine the curriculum requirements for the foundation high school graduation program that are consistent with the required curriculum under the TEC, §28.002.

CROSS REFERENCE TO STATUTE. The amendments implement the Texas Education Code, §§7.102; 28.002; and 28.025, as amended by House Bill 3593 and Senate Bill 826, 85th Texas Legislature, Regular Session, 2017.

§130.226.World Health Research (One Credit), Adopted 2015.

(a) General requirements. This course is recommended for students in Grades 11 and 12. Prerequisites: Biology and Chemistry. Recommended prerequisite: a course in the Health Science Career Cluster. Students shall be awarded one credit for successful completion of this course.

(b) (No change.)

(c) Knowledge and skills.

(1) - (7) (No change.)

(8) The student applies research principles to create a project that addresses a major health problem. The student is expected to:

(A) facilitate [construct charts and graphs in facilitating] data analysis and communicate [in communicating] experimental results clearly and effectively using technology by constructing charts and graphs; and

(B) present the project to classmates, health professionals, parents, or instructors.

§130.230.Pharmacology (One Credit), Adopted 2015.

(a) General requirements. This course is recommended for students in Grades 11 and 12. Prerequisites: Biology and Chemistry. Recommended prerequisite: a course from the Health Science Career Cluster. Students shall be awarded one credit for successful completion of this course.

(b) (No change.)

(c) Knowledge and skills.

(1) (No change.)

(2) The student explores the field of pharmacology and foundation of pharmacology [identifies individuals associated with manufacturing, dispensing, and administrating pharmaceuticals as a valued member of a health care team]. The student is expected to:

(A) define pharmacology and its major subdivisions, including pharmacodynamics, pharmacokinetics, and pharmacotherapeutics;

(B) explain the difference between therapeutic effects, side effects, and toxic effects;

(C) identify a drug receptor in the human body;

(D) trace the interaction and antagonist receptors [receptor];

(E) explain the relationship among [between ] drug dosage, drug response, and time;

(F) explain drug safety and therapeutic index;

(G) describe three names by which drugs are known; and

(H) list two common drug reference books.

(3) The student identifies individuals and careers associated with manufacturing, dispensing, and administering [administrating ] pharmaceuticals [as a valued member of a health care team]. The student is expected to:

(A) identify career pathways related to pharmacology;

(B) define the role of the pharmacy team;

(C) research and describe emerging pharmacy career opportunities;

(D) analyze the impact of pharmaceuticals on the costs of health care; and

(E) evaluate the impact of pharmaceuticals on the costs of society.

(4) The student explains the ethical and legal responsibilities of pharmacists and pharmacy technicians. The student is expected to:

(A) describe the legal terms and consequences associated with prescription errors;

[(B) analyze the six routes of medication administration;]

(B) [(C)] differentiate between negligence, product liability, contributory negligence, and regulatory law;

(C) [(D)] evaluate the effect of medication errors related to the pharmacy and the industry;

(D) [(E)] discuss the elements of a lawsuit; and

(E) [(F)] define professional liability.

(5) - (9) (No change.)

§130.231.Health Science Theory (One Credit), Adopted 2015.

(a) General requirements. This course is recommended for students in Grades 10-12. Prerequisite: [Prerequisites: Principles of Health Science and] Biology. Recommended corequisite: Health Science Clinical. Students shall be awarded one credit for successful completion of this course.

(b) - (c) (No change.)

§130.232.Health Science Clinical (One Credit), Adopted 2015.

(a) General requirements. This course is recommended for students in Grades 10-12. Prerequisite [Prerequisites ]: Biology [and Principles of Health Science]. Corequisite: Health Science Theory. This course must be taken concurrently with Health Science Theory and may not be taken as a stand-alone course. Districts are encouraged to offer this course in a consecutive block with Health Science Theory to allow students sufficient time to master the content of both courses. Students shall be awarded one credit for successful completion of this course.

(b) - (c) (No change.)

§130.233.Practicum in Health Science (Two Credits), Adopted 2015.

(a) General requirements. This course is recommended for students in Grades 11 and 12. Prerequisites: [Principles of Health Science,] Health Science Theory [,] and Biology. Students shall be awarded two credits for successful completion of this course. A student may repeat this course once for credit provided that the student is experiencing different aspects of the industry and demonstrating proficiency in additional and more advanced knowledge and skills.

(b) - (c) (No change.)

§130.234.Extended Practicum in Health Science (One Credit), Adopted 2015.

(a) General requirements. This course is recommended for students in Grades 11 and 12. The practicum course is a paid or unpaid capstone experience for students participating in a coherent sequence of career and technical education courses in the Health Science Career Cluster. Prerequisites: [Principles of Health Science,] Health Science Theory [,] and Biology. Corequisite: Practicum in Health Science. This course must be taken concurrently with Practicum in Health Science and may not be taken as a stand-alone course. Students shall be awarded one credit for successful completion of this course. A student may repeat this course once for credit provided that the student is experiencing different aspects of the industry and demonstrating proficiency in additional and more advanced knowledge and skills.

(b) - (c) (No change.)

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on December 4, 2017.

TRD-201704939

Cristina De La Fuente-Valadez

Director, Rulemaking

Texas Education Agency

Earliest possible date of adoption: January 14, 2018

For further information, please call: (512) 475-1497


SUBCHAPTER J. HUMAN SERVICES

19 TAC §§130.283, 130.284, 130.286, 130.287

STATUTORY AUTHORITY. The amendments and new sections are proposed under the Texas Education Code (TEC), §7.102(c)(4), which requires the State Board of Education (SBOE) to establish curriculum and graduation requirements; TEC, §28.002, which identifies the subjects of the required curriculum and requires the SBOE by rule to identify the essential knowledge and skills of each subject in the required curriculum that all students should be able to demonstrate and that will be used in evaluating instructional materials and addressed on the state assessment instruments; and TEC, §28.025, as amended by House Bill 3593 and Senate Bill 826, 85th Texas Legislature, Regular Session, 2017, which requires the SBOE by rule to determine the curriculum requirements for the foundation high school graduation program that are consistent with the required curriculum under the TEC, §28.002.

CROSS REFERENCE TO STATUTE. The amendments and new sections implement the Texas Education Code, §§7.102; 28.002; and 28.025, as amended by House Bill 3593 and Senate Bill 826, 85th Texas Legislature, Regular Session, 2017.

§130.283.Cosmetology I (Two Credits), Adopted 2015.

(a) General requirements. This course is recommended for students in Grades 10 and 11. Recommended prerequisite: Introduction to Cosmetology. Recommended corequisite: Cosmetology I Lab. Students shall be awarded two credits for successful completion of this course.

(b) - (c) (No change.)

§130.284.Cosmetology II (Two Credits), Adopted 2015.

(a) General requirements. This course is recommended for students in Grades 11 and 12. Prerequisite: Cosmetology I. Recommended corequisite: Cosmetology II Lab. Students shall be awarded two credits for successful completion of this course.

(b) - (c) (No change.)

§130.286.Cosmetology I Lab (One Credit), Adopted 2018.

(a) General requirements. This course is recommended for students in Grades 10 and 11. Recommended prerequisite: Introduction to Cosmetology. This course must be taken concurrently with Cosmetology I and may not be taken as a stand-alone course. Districts are encouraged to offer this lab in a consecutive block with Cosmetology I to allow students sufficient time to master the content of both courses. Students shall be awarded one credit for successful completion of this course.

(b) Introduction.

(1) Career and technical education instruction provides content aligned with challenging academic standards and relevant technical knowledge and skills for students to further their education and succeed in current or emerging professions.

(2) The Human Services Career Cluster focuses on preparing individuals for employment in career pathways that relate to families and human needs such as early childhood development and services, counseling and mental health services, family and community services, personal care services, and consumer services.

(3) Cosmetology I Lab provides instruction and content directly aligned to the licensure requirements as established by the Texas Department of Licensing and Regulation (TDLR).

(4) Careers in cosmetology include all aspects of sterilization and sanitation procedures and personal care services, including hair care, nail care, and skin care. Students will be expected to develop an understanding of the technical knowledge and skills needed for success in the personal care services industry.

(5) Students are encouraged to participate in extended learning experiences such as career and technical student organizations and other leadership or extracurricular organizations.

(6) Statements that contain the word "including" reference content that must be mastered, while those containing the phrase "such as" are intended as possible illustrative examples.

(c) Knowledge and skills.

(1) The student demonstrates professional standards/employability skills as required by business and industry. The student is expected to:

(A) demonstrate professionalism in selecting appropriate attire for the profession and work site;

(B) demonstrate effective oral and written communication with diverse individuals, including coworkers, management, and clients;

(C) demonstrate personal ownership over the quality of individual performance;

(D) explore employment opportunities, including entrepreneurship; and

(E) create appropriate document information for employment such as a resume.

(2) The student demonstrates knowledge of rules and regulations related to sanitation, disinfection, and health and safety as established by TDLR. The student is expected to:

(A) apply knowledge of health and safety policies and procedures in a work setting in compliance with TDLR requirements;

(B) demonstrate cleaning and disinfecting of the work environment, including implements and equipment;

(C) demonstrate techniques to avoid risks and potentially hazardous situations in compliance with TDLR requirements; and

(D) demonstrate industry best practices when disposing of hazardous materials in compliance with TDLR requirements.

(3) The student demonstrates knowledge of appropriate use of tools, equipment, technologies, and materials used in cosmetology. The student is expected to:

(A) demonstrate safe and effective use of tools to enhance client services;

(B) practice and promote professional efficiency by using ergonomically designed equipment; and

(C) critique, select, and operate effective technology resources in a professional salon as available.

(4) The student applies the practical management skills in simulated and actual work situations. The student is expected to:

(A) apply client consultation skills to guide individuals in recognizing concerns and making future appointments;

(B) select and implement a client management system appropriate for a professional work situation; and

(C) document client satisfaction, procedures, and products to facilitate ease of consultation in future appointments.

(5) The student demonstrates proficiency in executing basic cosmetology services as required for the state practical examination. The student is expected to:

(A) demonstrate proficiency of basic haircuts such as zero degree, forty-five degree, ninety degree, and one hundred eighty degree;

(B) demonstrate basic manicure skills and techniques;

(C) demonstrate basic facial service skills and techniques;

(D) demonstrate basic chemical service applications;

(E) demonstrate basic shampooing techniques;

(F) demonstrate basic permanent waving techniques;

(G) demonstrate basic curling techniques;

(H) demonstrate basic blow drying techniques; and

(I) demonstrate basic thermal styling techniques.

§130.287.Cosmetology II Lab (One Credit), Adopted 2018.

(a) General requirements. This course is recommended for students in Grades 11 and12. Prerequisite: Cosmetology I. This course must be taken concurrently with Cosmetology II and may not be taken as a stand-alone course. Districts are encouraged to offer this lab in a consecutive block with Cosmetology II to allow students sufficient time to master the content of both courses. Students shall be awarded one credit for successful completion of this course.

(b) Introduction.

(1) Career and technical education instruction provides content aligned with challenging academic standards and relevant technical knowledge and skills for students to further their education and succeed in current or emerging professions.

(2) The Human Services Career Cluster focuses on preparing individuals for employment in career pathways that relate to families and human needs such as early childhood development and services, counseling and mental health services, family and community services, personal care services, and consumer services.

(3) Cosmetology II Lab provides instruction and content directly aligned to the licensure requirements as established by the Texas Department of Licensing and Regulation (TDLR).

(4) Students are encouraged to participate in extended learning experiences such as career and technical student organizations and other leadership or extracurricular organizations.

(5) Statements that contain the word "including" reference content that must be mastered, while those containing the phrase "such as" are intended as possible illustrative examples.

(c) Knowledge and skills.

(1) The student demonstrates professional standards/employability skills as required by business and industry. The student is expected to:

(A) demonstrate professionalism in selecting appropriate attire for the profession and work site;

(B) demonstrate professionalism by practicing the use of effective oral and written communication with diverse individuals, including coworkers, management, and clients;

(C) demonstrate personal ownership over the quality of individual performance;

(D) explore employment opportunities, including entrepreneurship; and

(E) collect and compile mastery-level work samples and evaluations to be included in an employment portfolio as appropriate.

(2) The student demonstrates knowledge of rules and regulations related to sanitation, disinfection, and health and safety as established by TDLR. The student is expected to:

(A) apply knowledge of health and safety policies and procedures in a work setting in compliance with TDLR requirements;

(B) demonstrate cleaning and disinfecting of the work environment, including implements and equipment;

(C) demonstrate techniques to avoid risks and potentially hazardous situations in compliance with TDLR requirements; and

(D) demonstrate industry best practices when disposing hazardous materials in compliance with TDLR requirements.

(3) The students demonstrates mastery in the use of tools, equipment, technologies, and materials used in cosmetology. The student is expected to:

(A) apply with increased fluency proficient, safe, and effective use of tools in a simulated or actual work setting to enhance client services;

(B) demonstrate with increased fluency professional efficiency by using ergonomically designed equipment; and

(C) demonstrate with increased fluency effective integration of technology sources in a professional salon as available.

(4) The student executes proficient managerial and practical skills in diverse work and professional situations with minimal direction. The student is expected to:

(A) resolve client concerns with little to no guidance by using appropriate consultation skills;

(B) practice consultation skills to guide individuals in selecting future appointments and services;

(C) assess and document client satisfaction in a simulated and actual work situation;

(D) assess and document client products to inform future client consultations; and

(E) operate a client management system in diverse work and professional situations.

(5) The student performs cosmetology services with increased fluency as required for the state practical examination in a simulated and/or work setting with minimal guidance. The student is expected to:

(A) demonstrate mastery-level haircut skills and techniques;

(B) demonstrate mastery-level manicure skills and techniques;

(C) demonstrate mastery-level facial skills and techniques;

(D) demonstrate mastery-level knowledge of chemical applications;

(E) demonstrate mastery-level shampooing techniques;

(F) demonstrate mastery-level permanent waving techniques;

(G) perform curling services while demonstrating mastery-level curling techniques;

(H) perform blow drying services while demonstrating mastery-level blow drying techniques; and

(I) perform thermal styling services while demonstrating mastery-level thermal styling techniques.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on December 4, 2017.

TRD-201704940

Cristina De La Fuente-Valadez

Director, Rulemaking

Texas Education Agency

Earliest possible date of adoption: January 14, 2018

For further information, please call: (512) 475-1497


SUBCHAPTER M. MANUFACTURING

19 TAC §§130.363 - 130.365

STATUTORY AUTHORITY. The amendments are proposed under the Texas Education Code (TEC), §7.102(c)(4), which requires the State Board of Education (SBOE) to establish curriculum and graduation requirements; TEC, §28.002, which identifies the subjects of the required curriculum and requires the SBOE by rule to identify the essential knowledge and skills of each subject in the required curriculum that all students should be able to demonstrate and that will be used in evaluating instructional materials and addressed on the state assessment instruments; and TEC, §28.025, as amended by House Bill 3593 and Senate Bill 826, 85th Texas Legislature, Regular Session, 2017, which requires the SBOE by rule to determine the curriculum requirements for the foundation high school graduation program that are consistent with the required curriculum under the TEC, §28.002.

CROSS REFERENCE TO STATUTE. The amendments implement the Texas Education Code, §§7.102; 28.002; and 28.025, as amended by House Bill 3593 and Senate Bill 826, 85th Texas Legislature, Regular Session, 2017.

§130.363.Welding I (Two Credits), Adopted 2015.

(a) General requirements. This course is recommended for students in Grades 10-12. Recommended prerequisites: Algebra I, Principles of Manufacturing, Introduction to Precision Metal Manufacturing, or Introduction to Welding. Students shall be awarded two credits for successful completion of this course.

(b) Introduction.

(1) Career and technical education instruction provides content aligned with challenging academic standards and relevant technical knowledge and skills for students to further their education and succeed in current or emerging professions.

(2) The Manufacturing Career Cluster focuses on planning, managing, and performing the processing of materials into intermediate or final products and related professional and technical support activities such as production planning and control, maintenance, and manufacturing/process engineering.

(3) Welding I provides the knowledge, skills, and technologies required for employment in metal technology systems. Students will develop knowledge and skills related to this system and apply them to personal career development. This course supports integration of academic and technical knowledge and skills. Students will reinforce, apply, and transfer knowledge and skills to a variety of settings and problems. Knowledge about career opportunities, requirements, and expectations and the development of workplace skills prepare students for future success.

(4) Students are encouraged to participate in extended learning experiences such as career and technical student organizations and other leadership or extracurricular organizations.

(5) Statements that contain the word "including" reference content that must be mastered, while those containing the phrase "such as" are intended as possible illustrative examples.

(c) Knowledge and skills.

(1) The student demonstrates professional standards/employability skills as required by business and industry. The student is expected to:

(A) express ideas to others in a clear, concise, and effective manner through written and verbal communication;

(B) convey written information that is easily understandable to others;

(C) demonstrate acceptable work ethics in reporting for duty and performing assigned tasks as directed;

(D) conduct oneself in a manner acceptable for the profession and work site such as suitable dress and polite speech;

(E) choose the ethical course of action and comply with all applicable rules, laws, and regulations;

(F) review the fine, detailed aspects of both quantitative and qualitative work process and end products;

(G) evaluate systems and operations; identify causes, problems, patterns, or issues; and explore workable solutions or remedies to improve situations;

(H) follow written and oral instructions and adhere to established business practices, policies, and procedures, including health and safety rules; and

(I) prioritize tasks, follow schedules, and work on goal-relevant activities in a way that uses time wisely in an effective, efficient manner.

(2) The student explores the employability characteristics of a successful worker in the global economy. The student is expected to:

(A) explore academic knowledge and skills required for postsecondary education;

(B) identify employers' expectations to foster positive customer satisfaction;

(C) demonstrate the professional standards required in the workplace such as interviewing skills, flexibility, willingness to learn new skills and acquire knowledge, self-discipline, self-worth, positive attitude, and integrity in a work situation;

(D) evaluate personal career goals;

(E) communicate effectively with others in the workplace to clarify objectives; and

(F) demonstrate skills related to health and safety in the workplace as specified by appropriate governmental regulations.

(3) The student applies academic skills to the requirements of welding. The student is expected to:

(A) demonstrate effective communication skills with individuals from varied cultures such as fellow workers, management, and customers;

(B) demonstrate mathematical skills to estimate costs;

(C) demonstrate technical writing skills related to work orders;

(D) apply accurate readings of measuring devices;

(E) use appropriate tools to make accurate measurements;

(F) compute measurements such as area, surface area, volume, and perimeter;

(G) solve problems using whole numbers, fractions, mixed numbers, and decimals;

(H) use various methods, including a calculator, to perform computations;

(I) perform conversions between fractions and decimals;

(J) perform conversions between standards units and metric units;

(K) calculate and apply the functions of angles such as using the Pythagorean Theorem; and

(L) diagram the parts of a circle.

(4) The student evaluates the function and application of the tools, equipment, technologies, and materials used in welding. The student is expected to:

(A) operate welding equipment according to safety standards;

(B) identify and properly dispose of environmentally hazardous materials used in welding;

(C) explain the importance of recycling materials used in welding;

(D) choose appropriate personal protective equipment; and

(E) evaluate skills related to health and safety in the workplace as specified by appropriate governmental regulations.

(5) The student understands welding joint design, symbols, and welds. The student is expected to:

(A) demonstrate knowledge of engineering drawings, charts, and diagrams;

(B) interpret orthographic and isometric views of three-dimensional figures;

(C) interpret engineering, drawings, charts, and diagrams;

(D) analyze components of the welding symbol;

(E) identify types of welding joints;

(F) identify positions of welding; and

(G) identify types of welds such as fillet, groove, spot, plug, and flanged.

(6) The student analyzes the concepts and intricacies of inspections and related codes. The student is expected to:

(A) explain weld inspection processes; and

(B) interpret welding codes.

(7) The student analyzes oxy-fuel cutting processes on carbon steels. The student is expected to:

(A) practice safe operating practices;

(B) perform safe handling of compressed gases;

(C) identify components of oxy-fuel gas cutting system;

(D) demonstrate proper set-up procedures for oxy-fuel cutting process;

(E) identify factors affecting oxy-fuel cutting of base metals;

(F) demonstrate proper cutting techniques such as piercing, straight line, and bevel;

(G) identify acceptable cuts; and

(H) evaluate alternative fuel gasses such as propane, propylene, and Chemtane 2®.

(8) The student analyzes plasma arc cutting on metals. The student is expected to:

(A) use safe operating practices;

(B) demonstrate knowledge of the theories of plasma arc cutting;

(C) apply safe handling of compressed air supply;

(D) identify components of plasma arc cutting;

(E) demonstrate correct set-up procedure for plasma arc cutting;

(F) define cutting terms; and

(G) perform straight line, piercing, bevels, and shape cuts.

(9) The student analyzes shielded metal arc welding principles and practices on metals. The student is expected to:

(A) use safe operating practices;

(B) analyze welding current relationships such as alternating current and direct current, heat transfer, and polarity;

(C) apply shielded metal arc welding principles;

(D) demonstrate proper set-up procedure for shielded metal arc welding;

(E) explain the American Welding Society (AWS) identification system for shielded metal arc welding electrodes;

(F) determine appropriate electrodes for base metal in shielded metal arc welding; and

(G) perform multi-pass groove welds in all positions according to industry-accepted welding standards [to the AWS Schools Excelling through National Skills Education standards].

(10) The student analyzes gas metal arc welding principles and practices. The student is expected to:

(A) use safe operating practices;

(B) explain the effects that weld angle, work angle, and electrode extension have on welds;

(C) apply gas metal arc welding principles;

(D) demonstrate proper set-up procedure for gas metal arc welding;

(E) explain the AWS identification system for gas metal arc welding filler metal;

(F) determine appropriate filler metal for base metal in gas metal arc welding; and

(G) perform fillet and groove welds in all positions.

(11) The student analyzes flux cored arc welding principles and practices on metals. The student is expected to:

(A) use safe operating practices;

(B) explain the effects that weld angle, work angle, and electrode extension have on welds;

(C) apply flux cored arc welding principles;

(D) demonstrate proper set-up procedure for flux cored arc welding;

(E) explain the AWS identification system for flux cored arc welding electrodes;

(F) determine appropriate filler metal for base metal in flux cored arc welding; and

(G) perform fillet and groove welds in all positions.

(12) The student analyzes gas tungsten arc welding on metals. The student is expected to:

(A) use safe operating practices;

(B) analyze electrical welding current relationships such as alternating current and direct current, heat transfer, and polarity;

(C) identify the common types of tungsten and filler metals according to the AWS identification system;

(D) demonstrate proper set-up procedure for gas tungsten arc welding;

(E) perform fillet and groove welds in all positions; and

(F) perform welds on metals such as carbon steel, stainless steel, and aluminum.

§130.364.Welding II (Two Credits), Adopted 2015.

(a) General requirements. This course is recommended for students in Grades 11 and 12. Prerequisite: Welding I. Recommended prerequisites: Algebra I or Geometry. Recommended corequisite: Welding II Lab. Students shall be awarded two credits for successful completion of this course.

(b) Introduction.

(1) Career and technical education instruction provides content aligned with challenging academic standards and relevant technical knowledge and skills for students to further their education and succeed in current or emerging professions.

(2) The Manufacturing Career Cluster focuses on planning, managing, and performing the processing of materials into intermediate or final products and related professional and technical support activities such as production planning and control, maintenance, and manufacturing/process engineering.

(3) Welding II builds on the knowledge and skills developed in Welding I. Students will develop advanced welding concepts and skills as related to personal and career development. Students will integrate academic and technical knowledge and skills. Students will have opportunities to reinforce, apply, and transfer knowledge and skills to a variety of settings and problems.

(4) Students are encouraged to participate in extended learning experiences such as career and technical student organizations and other leadership or extracurricular organizations.

(5) Statements that contain the word "including" reference content that must be mastered, while those containing the phrase "such as" are intended as possible illustrative examples.

(c) Knowledge and skills.

(1) The student demonstrates professional standards/employability skills as required by business and industry. The student is expected to:

(A) express ideas to others in a clear, concise, and effective manner through written and verbal communication;

(B) convey written information that is easily understandable to others;

(C) demonstrate acceptable work ethics in reporting for duty and performing assigned tasks as directed;

(D) conduct oneself in a manner acceptable for the profession and work site such as suitable dress and polite speech;

(E) choose the ethical course of action and comply with all applicable rules, laws, and regulations;

(F) review the fine, detailed aspects of both quantitative and qualitative work process and end products;

(G) evaluate systems and operations; identify causes, problems, patterns, or issues; and explore workable solutions or remedies to improve situations;

(H) follow written and oral instructions and adhere to established business practices, policies, and procedures, including health and safety rules;

(I) prioritize tasks, follow schedules, and work toward goal-relevant activities in an effective, efficient manner;

(J) analyze how teams function; and

(K) evaluate employers' work expectations to measure project success.

(2) The student explores the employability characteristics of a successful worker in the global economy. The student is expected to:

(A) determine academic knowledge and skills required for postsecondary education;

(B) identify employers' expectations to foster positive customer satisfaction;

(C) demonstrate the professional standards required in the workplace such as interviewing skills, flexibility, willingness to learn new skills and acquire knowledge, self-discipline, self-worth, positive attitude, and integrity in a work situation;

(D) evaluate progress toward personal career goals;

(E) communicate effectively with others in the workplace to clarify objectives; and

(F) apply knowledge and skills related to health and safety in the workplace as specified by appropriate governmental regulations.

(3) The student applies academic skills to the requirements of welding. The student is expected to:

(A) demonstrate mathematical skills to estimate costs;

(B) explain the impact of accurate readings of measuring devices on cost estimates;

(C) justify the selection of a tool to make accurate measurements;

(D) compute measurements such as area, surface area, volume, and perimeter;

(E) solve problems using whole numbers, fractions, mixed numbers, and decimals;

(F) apply right triangle relationships using the Pythagorean Theorem; and

(G) select a mathematical formula for estimation.

(4) The student knows the functions and applications of the tools, equipment, technologies, and materials used in welding. The student is expected to:

(A) use welding equipment according to safety standards;

(B) dispose of environmentally hazardous materials used in welding;

(C) explain the importance of recycling materials used in welding;

(D) evaluate the performance impact of emerging technologies in welding;

(E) use appropriate personal protective equipment to follow safety measures; and

(F) investigate the use of automated welding machines such as numerical control, computer numerical control, and robotics-controlled welding machines.

(5) The student illustrates welding joint design, symbols, and welds. The student is expected to:

(A) use knowledge of engineering drawings to complete an advanced project; and

(B) evaluate projects using engineering drawing specifications.

(6) The student applies the concepts and skills of welding to perform tasks. The student is expected to:

(A) work independently in fabricating welded projects;

(B) work collaboratively with other students to complete a real-world application item; and

(C) troubleshoot equipment.

(7) The student analyzes the concepts and intricacies of inspections related to welding codes. The student is expected to:

(A) inspect the welding projects of team members;

(B) select codes for weld inspections; and

(C) critique and evaluate the weldments of team members.

(8) The student performs advanced cutting processes on carbon steels. The student is expected to:

(A) observe safe operating practices;

(B) apply safe handling of compressed gases; and

(C) perform cutting processes according to accepted welding standards.

(9) The student performs shielded metal arc welding on metals. The student is expected to:

(A) employ safe operating practices; and

(B) demonstrate skills required to make welds in all positions according to industry-accepted welding standards [the American Welding Society (AWS) Schools Excelling through National Skills Education (SENSE) welding standards].

(10) The student performs flux cored metal arc welding. The student is expected to:

(A) use safe operating practices;

(B) perform fillet and groove welds; and

(C) perform welds in all appropriate positions according to industry-accepted welding standards [the AWS SENSE welding standards].

(11) The student performs gas tungsten arc welding on metals. The student is expected to:

(A) employ safe operating practices;

(B) perform fillet and groove welds in all positions; and

(C) perform welds on metals such as carbon steel, stainless steel, pipe, and aluminum according to industry-accepted welding standards [to the AWS SENSE welding standards].

§130.365.Welding II Lab (One Credit), Adopted 2015.

(a) General requirements. This lab course is recommended for students in Grades 11 and 12. Prerequisite: Welding I. Corequisite: Welding II. This course must be taken concurrently with Welding II and may not be taken as a stand-alone course. Districts are encouraged to offer this course in a consecutive block with Welding II to allow students sufficient time to master the content of both courses. Students shall be awarded one credit for successful completion of this course.

(b) Introduction.

(1) Career and technical education instruction provides content aligned with challenging academic standards and relevant technical knowledge and skills for students to further their education and succeed in current or emerging professions.

(2) The Manufacturing Career Cluster focuses on planning, managing, and performing the processing of materials into intermediate or final products and related professional and technical support activities such as production planning and control, maintenance, and manufacturing/process engineering.

(3) Welding II Lab provides an introduction to welding technology with an emphasis on basic welding laboratory principles and operating procedures. Topics include: industrial safety and health practices, hand tool and power machine use, measurement, laboratory operating procedures, welding power sources, welding career potentials, and introduction to welding codes and standards. This course provides knowledge, skills, and technologies required for employment in welding industries. Students will develop knowledge and skills related to this system and apply them to personal career development. This course supports integration of academic and technical knowledge and skills. Students will reinforce, apply, and transfer knowledge and skills to a variety of settings and problems. Knowledge about career opportunities, requirements, and expectations and the development of workplace skills prepare students for future success.

(4) Students are encouraged to participate in extended learning experiences such as career and technical student organizations and other leadership or extracurricular organizations.

(5) Statements that contain the word "including" reference content that must be mastered, while those containing the phrase "such as" are intended as possible illustrative examples.

(c) Knowledge and skills.

(1) The student demonstrates professional standards/employability skills as required by business and industry. The student is expected to:

(A) express ideas to others in a clear, concise, and effective manner through written and verbal communication;

(B) convey written information that is easily understandable to others;

(C) demonstrate acceptable work ethics in reporting for duty and performing assigned tasks as directed;

(D) conduct oneself in a manner acceptable for the profession and work site such as suitable dress and polite speech;

(E) choose the ethical course of action and comply with all applicable rules, laws, and regulations;

(F) review the fine, detailed aspects of both quantitative and qualitative work process and end products;

(G) evaluate systems and operations; identify causes, problems, patterns, or issues; and explore workable solutions or remedies to improve situations;

(H) follow written and oral instructions and adhere to established business practices, policies, and procedures, including health and safety rules; and

(I) prioritize tasks, follow schedules, and work toward goal-relevant activities in an effective, efficient manner.

(2) The student demonstrates the functions and applications of the tools, equipment, technologies, and metals used in code welding. The student is expected to:

(A) use welding equipment according to safety standards;

(B) identify and properly dispose of environmentally hazardous materials used in welding;

(C) explain the importance of recycling materials used in welding; and

(D) use appropriate personal protective equipment.

(3) The student applies the concepts and skills of welding of actual work situations. The student is expected to:

(A) work independently to fabricate welded projects with minimal assistance;

(B) work collaboratively with other students to complete relevant projects; and

(C) troubleshoot equipment.

(4) The student analyzes the concepts and intricacies of inspections and related codes. The student is expected to:

(A) explain weld inspection processes; and

(B) produce acceptable weldments to standards related to industry codes such as the American Welding Society (AWS), American National Standards Institute, and Canadian Welding Bureau.

(5) The student performs oxy-fuel cutting processes. The student is expected to:

(A) use safe operating practices;

(B) perform safe handling of compressed gases;

(C) assemble components involved in setting up for oxy-fuel gas cutting processes;

(D) demonstrate proper set-up for cutting techniques such as piercing, straight line, and bevel; and

(E) evaluate acceptable and unacceptable cuts.

(6) The student performs plasma arc cutting on metals. The student is expected to:

(A) use safe operating practices;

(B) explain the difference between safe and unsafe storage and handling of compressed gas supply;

(C) employ proper set-up procedures for plasma arc cutting; and

(D) demonstrate proper cutting techniques, including straight line, piercing, and bevels.

(7) The student performs shielded metal arc welding principles and practices on metals. The student is expected to:

(A) use safe operating practices;

(B) demonstrate shielded metal arc welding principles;

(C) demonstrate proper set-up procedures for shielded metal arc welding;

(D) select appropriate electrodes for base metal in shielded metal arc welding;

(E) perform welds such as fillet and groove according to industry-accepted welding standards [the AWS Schools Excelling through National Skills Education (SENSE) welding standards];

(F) perform multiple pass welds;

(G) prepare joints for welding; and

(H) explain heating processes such as pre-heating and post-heating.

(8) The student demonstrates proper set-up procedure for gas metal arc welding. The student is expected to:

(A) use safe operating practices;

(B) demonstrate gas metal arc welding principles;

(C) demonstrate proper set-up for gas metal arc welding;

(D) select appropriate filler metals for base metal in gas metal arc welding; and

(E) perform fillet and groove welds in all positions according to industry-accepted welding standards [the AWS SENSE welding standards].

(9) The student performs flux cored arc welding principles and practices on metals. The student is expected to:

(A) use safe operating practices;

(B) employ and appraise flux cored arc welding principles;

(C) demonstrate proper set-up procedures for flux cored arc welding;

(D) appraise appropriate filler metal for base metal in flux cored arc welding;

(E) perform fillet and groove welds; and

(F) perform welds in all appropriate positions according to industry-accepted welding standards [the AWS SENSE welding standards].

(10) The student performs gas tungsten arc welding principles and practices on metals. The student is expected to:

(A) use safe operating practices;

(B) demonstrate gas tungsten arc welding principles;

(C) demonstrate proper set-up for gas tungsten arc welding;

(D) select appropriate use of filler metals for base metal in gas tungsten arc welding; and

(E) perform welds in all appropriate positions according to industry-accepted welding standards [the AWS SENSE welding standards].

(11) The student performs weldment fabrications. The student is expected to:

(A) identify layout tools;

(B) perform a part layout on plate according to a blueprint;

(C) perform a layout of a pipe fitting according to a blueprint; and

(D) perform an assembly according to a blueprint.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on December 4, 2017.

TRD-201704941

Cristina De La Fuente-Valadez

Director, Rulemaking

Texas Education Agency

Earliest possible date of adoption: January 14, 2018

For further information, please call: (512) 475-1497


SUBCHAPTER O. SCIENCE, TECHNOLOGY, ENGINEERING, AND MATHEMATICS

19 TAC §§130.404, 130.415, 130.417

STATUTORY AUTHORITY. The amendments are proposed under the Texas Education Code (TEC), §7.102(c)(4), which requires the State Board of Education (SBOE) to establish curriculum and graduation requirements; TEC, §28.002, which identifies the subjects of the required curriculum and requires the SBOE by rule to identify the essential knowledge and skills of each subject in the required curriculum that all students should be able to demonstrate and that will be used in evaluating instructional materials and addressed on the state assessment instruments; and TEC, §28.025, as amended by House Bill 3593 and Senate Bill 826, 85th Texas Legislature, Regular Session, 2017, which requires the SBOE by rule to determine the curriculum requirements for the foundation high school graduation program that are consistent with the required curriculum under the TEC, §28.002.

CROSS REFERENCE TO STATUTE. The amendments implement the Texas Education Code, §§7.102; 28.002; and 28.025, as amended by House Bill 3593 and Senate Bill 826, 85th Texas Legislature, Regular Session, 2017.

§130.404.Principles of Technology (One Credit), Adopted 2015.

(a) General requirements. This course is recommended for students in Grades 10-12. Prerequisites: one credit of high school science and Algebra I. Students must meet the 40% laboratory and fieldwork requirement. This course satisfies a high school science graduation requirement. Students shall be awarded one credit for successful completion of this course.

(b) Introduction.

(1) Career and technical education instruction provides content aligned with challenging academic standards and relevant technical knowledge and skills for students to further their education and succeed in current or emerging professions.

(2) The Science, Technology, Engineering, and Mathematics (STEM) Career Cluster focuses on planning, managing, and providing scientific research and professional and technical services, including laboratory and testing services, and research and development services.

(3) In Principles of Technology, students will conduct laboratory and field investigations, use scientific practices [methods] during investigations, and make informed decisions using critical thinking and scientific problem solving. Various systems will be described in terms of space, time, energy, and matter. Students will study a variety of topics that include laws of motion, conservation of energy, momentum, electricity, magnetism, thermodynamics, and characteristics and behavior of waves. Students will apply physics concepts and perform laboratory experimentations for at least 40% of instructional time using safe practices.

(4) Science, as defined by the National Academy of Sciences, is the "use of evidence to construct testable explanations and predictions of natural phenomena, as well as the knowledge generated through this process." This vast body of changing and increasing knowledge is described by physical, mathematical, and conceptual models. Students should know that some questions are outside the realm of science because they deal with phenomena that are not currently scientifically testable by empirical science.

(5) Scientific inquiry is the planned and deliberate investigation of the natural world. Scientific methods of investigation are experimental, descriptive, or comparative. The method chosen should be appropriate to the question being asked.

(6) Scientific decision making is a way of answering questions about the natural world. Students should be able to distinguish between scientific decision-making methods (scientific methods) and ethical and social decisions that involve science (the application of scientific information).

(7) A system is a collection of cycles, structures, and processes that interact. All systems have basic properties that can be described in terms of space, time, energy, and matter. Change and constancy occur in systems as patterns and can be observed, measured, and modeled. These patterns help to make predictions that can be scientifically tested. Students should analyze a system in terms of its components and how these components relate to each other, to the whole, and to the external environment.

(8) Students are encouraged to participate in extended learning experiences such as career and technical student organizations and other leadership or extracurricular organizations.

(9) Statements that contain the word "including" reference content that must be mastered, while those containing the phrase "such as" are intended as possible illustrative examples.

(c) Knowledge and skills.

(1) The student demonstrates professional standards/employability skills as required by business and industry. The student is expected to:

(A) demonstrate knowledge of how to dress appropriately, speak politely, and conduct oneself in a manner appropriate for the profession;

(B) show the ability to cooperate, contribute, and collaborate as a member of a group in an effort to achieve a positive collective outcome;

(C) present written and oral communication in a clear, concise, and effective manner;

(D) demonstrate time-management skills in prioritizing tasks, following schedules, and performing goal-relevant activities in a way that produces efficient results; and

(E) demonstrate punctuality, dependability, reliability, and responsibility in performing assigned tasks as directed.

(2) The student, for at least 40% of instructional time, conducts laboratory and field investigations using safe, environmentally appropriate, and ethical practices. The student is expected to:

(A) demonstrate safe practices during laboratory and field investigations; and

(B) demonstrate an understanding of the use and conservation of resources and the proper disposal or recycling of materials.

(3) The student uses scientific methods and equipment during laboratory and field investigations. The student is expected to:

(A) know the definition of science and understand that it has limitations, as specified in subsection (b)(4) of this section;

(B) know that hypotheses are tentative and testable statements that must be capable of being supported or not supported by observational evidence. Hypotheses of durable explanatory power, which have been tested over a wide variety of conditions, are incorporated into theories;

(C) know that scientific theories are based on natural and physical phenomena and are capable of being tested by multiple independent researchers. Unlike hypotheses, scientific theories are well-established and highly-reliable explanations, but may be subject to change as new areas of science and new technologies are developed;

(D) distinguish between scientific hypotheses and scientific theories;

(E) design and implement investigative procedures, including making observations, asking well-defined questions, formulating testable hypotheses, identifying variables, selecting appropriate equipment and technology, and evaluating numerical answers for reasonableness;

(F) collect and organize qualitative and quantitative data and make measurements with accuracy and precision using tools such as multimeters (current, voltage, resistance), [triple beam] balances, batteries, [clamps,] dynamics demonstration equipment, collision apparatus, [data acquisition probes, discharge tubes with power supply (H, He, Ne, Ar), hand-held visual spectroscopes, hot plates, slotted and hooked] lab masses, [bar] magnets, [horseshoe magnets,] plane mirrors, convex lenses, [pendulum support, power supply, ring clamps, ring stands,] stopwatches, trajectory apparatus, [tuning forks, carbon paper,] graph paper, magnetic compasses, [polarized film, prisms,] protractors, [resistors, friction blocks, mini lamps (bulbs) and sockets, electrostatics kits, 90-degree rod clamps,] metric rulers, spring scales, [knife blade switches, Celsius] thermometers, and [meter sticks, scientific calculators, graphing technology, computers, cathode ray tubes with horseshoe magnets, ballistic carts or equivalent, resonance tubes, spools of nylon thread or string, containers of iron filings, rolls of white craft paper, copper wire, Periodic Table, electromagnetic spectrum charts,] slinky springs[, wave motion ropes, and laser pointers];

(G) use a wide variety of additional course equipment as appropriate such as ripple tank with wave generator, wave motion rope, tuning forks, hand-held visual spectroscopes, discharge tubes with power supply (H, He, Ne, Ar), electromagnetic spectrum charts, laser pointers, micrometer, caliper, [radiation monitor,] computer, data acquisition probes, scientific calculators, graphing technology, electrostatic kits, [ballistic pendulum,] electroscope, inclined plane, optics bench, optics kit, polarized film, prisms, pulley with table clamp, motion detectors, photogates, friction blocks, ballistic carts or equivalent, resonance tube, [ring stand screen, four-inch ring,] stroboscope, resistors, copper wire, switches, iron filings, and/or other equipment and materials that will produce the same results [graduated cylinders, and ticker timer];

(H) make measurements and record data with accuracy and precision using scientific notation and International System (SI) units;

[(I) identify and quantify causes and effects of uncertainties in measured data;]

(I) [(J)] organize, evaluate, and make inferences from data, including the use of tables, charts, and graphs;

(J) [(K)] communicate valid conclusions supported by the data through various methods such as lab reports, labeled drawings, graphic organizers, journals, summaries, oral reports, and technology-based reports; and

(K) [(L)] express [and manipulate ] relationships among physical variables quantitatively, including the use of graphs, charts, and equations.

(4) The student uses critical thinking, scientific reasoning, and problem solving to make informed decisions within and outside the classroom. The student is expected to:

(A) [in all fields of science,] analyze, evaluate, and critique scientific explanations by using empirical evidence, logical reasoning, and experimental and observational testing, [including examining all sides of scientific evidence of those scientific explanations,] so as to encourage critical thinking by the student;

(B) communicate and apply scientific information extracted from various sources such as current events, news reports, published journal articles, and marketing materials;

[(C) draw inferences based on data related to promotional materials for products and services;]

(C) [(D)] explain the impacts of the scientific contributions of a variety of historical and contemporary scientists on scientific thought and society;

(D) [(E)] research and describe the connections between physics and future careers; and

(E) [(F)] express, manipulate, and interpret relationships symbolically to make predictions and solve problems mathematically[, including problems requiring proportional reasoning and graphical vector addition].

(5) The student uses the scientific process to investigate physical concepts. The student is expected to:

(A) demonstrate an understanding that scientific hypotheses are tentative and testable statements that must be capable of being supported by observational evidence;

(B) demonstrate an understanding that scientific theories are based on physical phenomena and are capable of being tested by multiple independent researchers;

(C) design and implement investigative procedures;

(D) demonstrate the appropriate use and care of laboratory equipment;

(E) demonstrate accurate measurement techniques using precision instruments;

(F) record data using scientific notation and International System (SI) of units;

(G) identify and quantify causes and effects of uncertainties in measured data;

(H) organize and evaluate data, including the use of tables, charts, and graphs;

(I) communicate conclusions supported through various methods such as laboratory reports, labeled drawings, graphic organizers, journals, summaries, oral reports, or technology-based reports; and

(J) record, express, and manipulate data using graphs, charts, and equations.

(6) The student demonstrates appropriate safety techniques in the field and laboratory environments. The student is expected to:

(A) master relevant safety procedures;

(B) comply with safety guidelines as described in various manuals, instructions, and regulations;

(C) identify and classify hazardous materials and wastes; and

(D) make prudent choices in the conservation and use of resources and the appropriate disposal of hazardous materials and wastes.

(7) The student describes and applies the laws governing motion in a variety of situations. The student is expected to:

(A) generate and interpret relevant equations using graphs and charts for one- and two-dimensional motion, including:

(i) using and describing one-dimensional equations and graphical vector addition for displacement, distance, speed, velocity, average velocity, frames of reference, acceleration, and average acceleration;

(ii) using and describing two-dimensional equations for projectile and circular motion; and

(iii) using and describing vector forces and resolution; and

(B) describe and calculate the effects of forces on objects, including law of inertia and impulse and conservation of momentum, using methods, including free-body force diagrams.[;]

[(C) develop and interpret free-body force diagrams; and]

[(D) identify and describe motion relative to different frames of reference.]

(8) The student describes the nature of forces in the physical world. The student is expected to:

(A) [research and] describe the [historical development of the] concepts of gravitational, electromagnetic, weak nuclear, and strong nuclear forces;

(B) describe and calculate the magnitude of gravitational forces between two objects;

(C) describe and calculate the magnitude of electric [electrical] forces;

(D) describe the nature and identify everyday examples of magnetic forces and fields;

(E) describe the nature and identify everyday examples of electromagnetic forces and fields;

(F) characterize materials as conductors or insulators based on their electric [electrical] properties; and

(G) design and construct both series and parallel circuits and calculate current, potential difference, resistance, and power of various circuits.[;]

[(H) investigate and describe the relationship between electric and magnetic fields in applications such as generators, motors, and transformers; and]

[(I) describe technological applications of the strong and weak nuclear forces in nature.]

(9) The student describes and applies the laws of the conservation of energy and momentum. The student is expected to:

(A) describe the transformational process between work, potential energy, and kinetic energy (work-energy theorem);

(B) use examples to analyze and calculate the relationships among work, kinetic energy, and potential energy;

(C) describe and calculate the mechanical energy of, the power generated within, the impulse applied to, and the momentum of a physical system; and

(D) describe and apply the laws of conservation of energy and conservation of momentum.

(10) The student analyzes the concept of thermal energy. The student is expected to[:]

[(A) describe how the macroscopic properties of a thermodynamic system such as temperature, specific heat, and pressure are related to the molecular level of matter, including kinetic or potential energy of atoms;]

[(B) contrast and give examples of different processes of thermal energy transfer, including conduction, convection, and radiation; and]

[(C)] [analyze and] explain technological examples such as solar and wind energy that illustrate the four laws of thermodynamics and the processes of thermal energy transfer[, including the law of conservation of energy and the law of entropy].

(11) The student analyzes the properties of wave motion and optics. The student is expected to:

(A) examine and describe oscillatory motion and wave propagation in various types of media;

(B) investigate and analyze characteristics of waves, including period, velocity, frequency, amplitude, and wavelength;

(C) investigate and calculate the relationship between wave speed, frequency, and wavelength;

(D) compare and contrast the characteristics and behaviors of transverse waves, including electromagnetic waves and the electromagnetic spectrum, and longitudinal waves, including sound waves;

(E) investigate behaviors of waves, including reflection, refraction, diffraction, interference, resonance, polarization, and the Doppler effect; and

(F) describe and predict image formation as a consequence of reflection from a plane mirror and refraction through a thin convex lens.[; and]

[(G) describe the role of wave characteristics and behaviors in medical and industrial technology applications.]

(12) The student analyzes the concepts of atomic, nuclear, and quantum phenomena. The student is expected to:

(A) describe the photoelectric effect and the dual nature of light;

(B) compare and explain emission spectra produced by various atoms;

(C) calculate and describe the applications [significance] of mass-energy equivalence [and apply it in explanations of phenomena such as nuclear stability, fission, and fusion];

(D) describe the process of radioactive decay given an isotope and half-life;

(E) describe the role of mass-energy equivalence for areas such as nuclear stability, fission, and fusion; and

(F) explore technology applications of atomic, nuclear, and quantum phenomena using the standard model such as nuclear stability, fission, and fusion, nanotechnology, radiation therapy, diagnostic imaging, semiconductors, superconductors, solar cells, and nuclear power.

§130.415.Biotechnology I (One Credit), Adopted 2015.

(a) General requirements. This course is recommended for students in Grades 11 and 12. Prerequisite: Biology [and Chemistry]. Recommended prerequisites [prerequisite ]: Principles of Biosciences and Chemistry. Students must meet the 40% laboratory and fieldwork requirement. This course satisfies a high school science graduation requirement. Students shall be awarded one credit for successful completion of this course.

(b) - (c) (No change.)

§130.417.Scientific Research and Design (One Credit), Adopted 2015.

(a) General requirements. This course is recommended for students in Grades 11 and 12. Prerequisite: Biology, Chemistry, Integrated Physics and Chemistry (IPC), or Physics. Students must meet the 40% laboratory and fieldwork requirement. This course satisfies a high school science graduation requirement. Students shall be awarded one credit for successful completion of this course. Students may take this course with different course content for a maximum of three credits.

(b) - (c) (No change.)

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on December 4, 2017.

TRD-201704942

Cristina De La Fuente-Valadez

Director, Rulemaking

Texas Education Agency

Earliest possible date of adoption: January 14, 2018

For further information, please call: (512) 475-1497