TITLE 19.EDUCATION

Part 2. TEXAS EDUCATION AGENCY

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

19 TAC §33.40

The Texas Education Agency (TEA) proposes an amendment to §33.40, concerning trading and brokerage policy of the Texas Permanent School Fund (PSF). The section establishes procedures and guidelines concerning security transaction policy, directed trades, and selection of a brokerage firm.

The proposed amendment would amend language in subsection (c) to bring the brokerage selection guidelines for historically-underutilized business (HUB) certified, soft dollar, commission recapture, and electronic communications network (ECN) brokers into line with the basic business models of those types of brokerage concerns. A technical correction is also proposed to the phrase "Direct Trades" in subsection (b) for consistency with Texas Register format requirements.

Paul Ballard, acting executive administrator of the Texas Permanent School Fund, has determined that for the first five-year period the section is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the section.

Mr. Ballard and Criss Cloudt, associate commissioner for policy planning and research, have determined that for each year of the first five years the section is in effect the public benefit anticipated as a result of enforcing the section will be that the income of the PSF would flow to school districts and reduce the tax burden to the public and the State of Texas. There will not be an effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the section as proposed.

Comments on the proposal may be submitted to Criss Cloudt, Policy Planning and Research, 1701 North Congress Avenue, Austin, Texas 78701, (512) 463-9701. Comments may also be submitted electronically to rules@tmail.tea.state.tx.us or faxed to (512) 475-3499. All requests for a public hearing on the proposed section submitted under the Administrative Procedure Act must be received by the commissioner of education not more than 15 calendar days after notice of a proposed change in the section has been published in the Texas Register .

The amendment is proposed under the Texas Education Code, §7.102(c)(31), which authorizes the State Board of Education to invest the PSF within the limits of the authority granted by the Texas Constitution, Article VII, §5, and the Texas Education Code, Chapter 43.

The amendment implements the Texas Education Code, §7.102(c)(31).

§33.40. Trading and Brokerage Policy.

(a)

(No change.)

(b)

Directed trades [ Trades ]. The SBOE may adopt directed trade procedures for the PSF portfolio according to procedures developed by the SBOE Committee on School Finance/Permanent School Fund.

(c)

Guidelines for selecting a brokerage firm.

(1)

(No change.)

(2)

Guidelines for selection. The broker or dealer firm must:

(A)

have appropriate trading and [ comprehensive, proprietary, in-house research capabilities and ] market expertise;

(B)

have comprehensive, proprietary, in-house research capabilities;

(C)

[ (B) ] be in compliance with applicable federal and Texas laws related to conducting business as a broker or dealer;

(D)

[ (C) ] be a member in good standing of the major financial exchanges;

(E)

[ (D) ] have on-site, in-house trading capability and direct access to major markets;

(F)

[ (E) ] have in-house access to trading support equipment;

(G)

[ (F) ] trade for competitive rates that provide the lowest transaction cost consistent with best execution;

(H)

[ (G) ] be financially able to accommodate a capital commitment trade over an industry standard settlement period;

(I)

[ (H) ] have the ability and record to clear and settle trades without unnecessary delays or fails; and

(J)

[ (I) ] have been in business as a broker or dealer for a reasonable period of time to ensure financial and operational stability.

(3)

Exemptions. Broker or dealer firms certified as historically underutilized businesses, utilized for soft dollar or commission recapture, or operating as electronic communication networks may be exempted from the requirements specified in subsection (c)(2)(B), (D), and (H) of this section.

[ (3)

Relationship with historically underutilized business. A broker or dealer firm may have an independent contractual relationship with a historically underutilized business.]

(4)

Reporting requirements. The executive administrator of the PSF will report to the SBOE Committee on School Finance/Permanent School Fund, on an ongoing basis, a list of broker dealers with whom the PSF has conducted business during the fiscal year that have been granted exemptions under subsection (c)(2)(B), (D), and (H) of this section and will identify the specific exemptions granted.

(5)

[ (4) ] Review and evaluation. At least annually, the SBOE Committee on School Finance/Permanent School Fund shall review the brokerage firms used by PSF investment managers and all transactions for compliance with the provisions of this section.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on January 24, 2000.

TRD-200000436

Criss Cloudt

Associate Commissioner, Policy Planning and Research

Texas Education Agency

Earliest possible date of adoption: March 5, 2000

For further information, please call: (512) 463-9701


Chapter 76. EXTRACURRICULAR ACTIVITIES

Subchapter AA. COMMISSIONER'S RULES

19 TAC §76.1001

The Texas Education Agency (TEA) proposes new §76.1001, concerning extracurricular activities. The new section establishes definitions, requirements, and procedures for participation in and practice for extracurricular activities during the school day and school week.

Texas Education Code (TEC), §7.102(c)(27), as amended by House Bill (HB) 3573, 76th Texas Legislature, 1999, transferred authority for rules on extracurricular activities from the State Board of Education to the commissioner of education. Proposed new §76.1001 fulfills by commissioner's rule limitations for participation in and practice for extracurricular activities during the school day and school week required under TEC, §33.081.

Proposed new §76.1001 reflects the change in law under TEC, §33.0811, as added by HB 3573, 76th Texas Legislature, 1999, that allows local school district board of trustees to adopt policies that establish the number of days students may miss class for extracurricular participation. The proposed new section retains the requirement for school districts to maintain a record of the absences incurred for each student. The proposed new section allows school districts the local option to schedule extracurricular activities the evening or day before a statewide administration of the Texas Assessment of Academic Skills test, but the commissioner of education encourages school districts to avoid scheduling these activities at those times to the extent possible. The proposed new section also eliminates the maximum class period requirement of 60 minutes per day for an extracurricular practice class found in board rule; however, the new rule retains the requirements of not allowing an extracurricular practice class to be longer in duration than academic classes, as well as the 300 minutes per school week maximum allowed in board rule for an extracurricular practice class. Proposed new §76.1001 retains the balance of the provisions in board rule found in §76.1.

Virgil E. Flathouse, associate commissioner for school finance and operations, has determined that for the first five-year period the section is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the new section.

Mr. Flathouse and Criss Cloudt, associate commissioner for policy planning and research, have determined that for each year of the first five years the section is in effect the public benefit anticipated as a result of enforcing the section will be continuity with previously adopted extracurricular activities and clarification of issues regarding participation in and practice for extracurricular activities, which reflect changes brought about by HB 3573, 76th Texas Legislature, 1999. There will not be an effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the proposed new section.

Comments on the proposal may be submitted to Criss Cloudt, Policy Planning and Research, 1701 North Congress Avenue, Austin, Texas 78701, (512) 463-9701. Comments may also be submitted electronically to rules@tmail.tea.state.tx.us or faxed to (512) 475-3499. All requests for a public hearing on the proposed section submitted under the Administrative Procedure Act must be received by the commissioner of education not more than 15 calendar days after notice of a proposed change in the section has been published in the Texas Register .

The new section is proposed under the Texas Education Code, §7.102(c)(27), as amended by House Bill 3573, 76th Texas Legislature, 1999, which authorizes the commissioner of education to adopt rules relating to extracurricular activities under Texas Education Code, §33.081.

The new section implements the Texas Education Code, §7.102(c)(27), as amended by House Bill 3573, 76th Texas Legislature, 1999.

§76.1001. Extracurricular Activities.

(a)

An extracurricular activity is an activity sponsored by the University Interscholastic League (UIL), the school district board of trustees, or an organization sanctioned by resolution of the board of trustees. The activity is not necessarily directly related to instruction of the essential knowledge and skills but may have an indirect relation to some areas of the curriculum. Extracurricular activities include, but are not limited to, public performances, contests, demonstrations, displays, and club activities, with the exception of public performances specified in paragraph (2) of this subsection.

(1)

In addition, an activity shall be subject to the provisions for an extracurricular activity if any one of the following criteria apply:

(A)

the activity is competitive;

(B)

the activity is held in conjunction with another activity that is considered to be extracurricular;

(C)

the activity is held off campus, except in a case in which adequate facilities do not exist on campus;

(D)

the general public is invited; or

(E)

an admission is charged.

(2)

A student ineligible to participate in an extracurricular activity, but who is enrolled in a state-approved course that requires demonstration of the mastery of the essential knowledge and skills in a public performance, may participate in the performance subject to the following requirements and limitations.

(A)

Only the criterion listed in paragraph (1)(D) of this subsection applies to the performance.

(B)

The requirement for student participation in public is stated in the essential knowledge and skills of the course.

(b)

The school week is defined as beginning at 12:01 a.m. on the first instructional day of the calendar week and ending at the close of instruction on the last instructional day of the calendar week, excluding holidays.

(c)

In accordance with the provisions of the Texas Education Code (TEC), §33.0811, the number of times that a school district may allow a student to miss a class for extracurricular participation during a school year shall be determined by the school district board of trustees. Each school district must maintain an accurate record of extracurricular absences for each student in the school district each school year.

(d)

Limitations on practice, rehearsal, and student participation in extracurricular activities during the school week shall be as follows.

(1)

For any given extracurricular activity, a student may not participate in more than one activity per school week, excluding holidays, except as provided in paragraph (2) of this subsection.

(2)

In addition to the limit specified in paragraph (1) of this subsection of one extracurricular activity permitted per school week, a student may also participate in a tournament or post-district contest, as well as a contest postponed by weather or public disaster that may determine advancement to a post-district level of competition.

(3)

For each extracurricular activity, a school district must limit students to a maximum of eight hours of practice and rehearsal outside the school day per school week.

(4)

The commissioner of education recommends that a school district avoids the scheduling of extracurricular activities or public performances to occur on the day immediately preceding or evening immediately preceding the day on which the administration of the Texas Assessment of Academic Skills (TAAS) test is scheduled for Grades 3-8 and 10.

(e)

Limitations on practice and rehearsal for extracurricular activities during the school day shall be as follows.

(1)

A school district must limit a student to one period of practice during the regularly scheduled school day for extracurricular activities, such as athletics, or drill team, or cheerleading.

(2)

The limit specified in paragraph (1) of this subsection of one period per school day for practice in an extracurricular activity does not prohibit a student from enrolling in any state-approved class. A student who is enrolled in a state-approved class that includes essential knowledge and skills that relate to the preparation for an extracurricular activity may practice that extracurricular activity no more than one period during the school day.

(3)

A student may not be permitted to miss a scheduled academic class to practice for an unrelated extracurricular activity.

(4)

A school district must limit extracurricular practice during the school day to ensure that class periods for extracurricular practice do not exceed the time allotted for other class periods.

(5)

A school operates on a traditional class schedule or on a non-traditional class schedule, such as an alternating, accelerated, or a modified block schedule. Regardless of the schedule type in place, a school may elect to practice extracurricular activities daily, provided the total minutes allowed for the extracurricular practice is not greater than 300 minutes during the school week.

(f)

The provisions of this section apply to any UIL activity. Any other organization requiring student participation that causes a student to miss a class may request sanction from the school district board of trustees. If the organization is sanctioned by resolution of the board of trustees, student participation in the organization's activities shall be subject to all provisions of this section and statute. Any absence incurred by a student while participating with an organization that has not received sanction from the school district board of trustees shall be subject to provisions of the TEC related to student attendance.

Filed with the Office of the Secretary of State, on January 24, 2000.

TRD-200000437

Criss Cloudt

Associate Commissioner, Policy Planning and Research

Texas Education Agency

Earliest possible date of adoption: March 5, 2000

For further information, please call: (512) 463-9701


Chapter 157. HEARINGS AND APPEALS

Subchapter C. HEARINGS HELD UNDER THE TEXAS DRIVER AND TRAFFIC SAFETY EDUCATION ACT

19 TAC §157.31

(Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the offices of the Texas Education Agency or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The Texas Education Agency (TEA) proposes the repeal of §157.31, concerning hearings held under the Texas Driver and Traffic Safety Education Act. The section establishes hearing rules for commercial driver training schools and driver training instructors regulated under the Texas Driver and Traffic Safety Education Act.

Senate Bill 777, 76th Texas Legislature, 1999, amended the Texas Driver and Traffic Safety Education Act and transferred all rulemaking authority for the regulation of driver training programs from the State Board of Education to the commissioner of education. This proposed repeal is necessary since identical provisions have been adopted under the commissioner of education's rulemaking authority and are found in 19 TAC §176.1301, which became effective December 26, 1999.

David Anderson, chief counsel, has determined that for the first five-year period the repeal is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the repeal.

Mr. Anderson and Criss Cloudt, associate commissioner for policy planning and research, have determined that for each year of the first five years the repeal is in effect the public benefit anticipated as a result of enforcing the repeal will be to ensure that hearing rules under the Texas Driver and Traffic Safety Education Act are designated appropriately to the commissioner of education in accordance with statute. There will not be an effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the repeal.

Comments on the proposal may be submitted to Criss Cloudt, Policy Planning and Research, 1701 North Congress Avenue, Austin, Texas 78701, (512) 463-9701. Comments may also be submitted electronically to rules@tmail.tea.state.tx.us or faxed to (512) 475-3499. All requests for a public hearing on the proposed section submitted under the Administrative Procedure Act must be received by the commissioner of education not more than 15 calendar days after notice of a proposed change in the section has been published in the Texas Register .

The repeal is proposed under Texas Civil Statutes, Article 4413(29c), §6, as amended by Senate Bill 777, 76th Texas Legislature, 1999, which authorizes the commissioner of education to adopt rules necessary to implement the Texas Driver and Traffic Safety Education Act.

The repeal implements Texas Civil Statutes, Article 4413(29c), §6, as amended by Senate Bill 777, 76th Texas Legislature, 1999.

§157.31. Rules of Procedure.

Filed with the Office of the Secretary of State, on January 24, 2000.

TRD-200000438

Criss Cloudt

Associate Commissioner, Policy Planning and Research

Texas Education Agency

Earliest possible date of adoption: March 5, 2000

For further information, please call: (512) 463-9701


Chapter 176. DRIVER TRAINING SCHOOLS

The Texas Education Agency (TEA) proposes the repeal of §§176.1 - 176.21 and 176.101 - 176.122, concerning driver training schools. The sections establish minimum standards of operation for driver training schools and for driving safety schools and course providers, including definitions, requirements, and procedures related to: school and instructor licensure; exempt schools; school personnel; courses of instruction; school facilities and equipment; student complaints; records; and application fees and other charges.

Senate Bill 777, 76th Texas Legislature, 1999, amended the Texas Driver and Traffic Safety Education Act and transferred all rulemaking authority for the regulation of driver training programs from the State Board of Education to the commissioner of education. This proposed repeal of rules governing driver training schools is necessary since rules for driver training schools have been adopted under the commissioner of education's rulemaking authority and are found in 19 TAC Chapter 176, Subchapter AA and Subchapter BB, which became effective December 26, 1999.

Robert Muller, associate commissioner for continuing education and school improvement, has determined that for the first five-year period the repeals are in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the repeals.

Mr. Muller and Criss Cloudt, associate commissioner for policy planning and research, have determined that for each year of the first five years the repeals are in effect the public benefit anticipated as a result of enforcing the repeals will be to ensure that rules governing driver training schools are designated appropriately to the commissioner of education in accordance with statute. There will not be an effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the repeals.

Comments on the proposal may be submitted to Criss Cloudt, Policy Planning and Research, 1701 North Congress Avenue, Austin, Texas 78701, (512) 463-9701. Comments may also be submitted electronically to rules@tmail.tea.state.tx.us or faxed to (512) 475-3499. All requests for a public hearing on the proposed sections submitted under the Administrative Procedure Act must be received by the commissioner of education not more than 15 calendar days after notice of a proposed change in the sections has been published in the Texas Register .

Subchapter A. MINIMUM STANDARDS FOR OPERATION OF TEXAS DRIVER EDUCATION SCHOOLS

19 TAC §§176.1 - 176.21

(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Texas Education Agency or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The repeals are proposed under Texas Civil Statutes, Article 4413(29c), §6, as amended by Senate Bill 777, 76th Texas Legislature, 1999, which authorizes the commissioner of education to adopt rules necessary to implement the Texas Driver and Traffic Safety Education Act.

The repeals implement Texas Civil Statutes, Article 4413(29c), §6, as amended by Senate Bill 777, 76th Texas Legislature, 1999.

§176.1. General Requirements and Purpose of Standards.

§176.2. Definitions.

§176.3. Exemptions.

§176.4. School Licensure.

§176.5. Applications from Small Businesses.

§176.6. Driver Education School Responsibility for Employees.

§176.7. School Directors and Administrative Staff Members.

§176.8. Driver Education Instructor License.

§176.9. Courses of Instruction.

§176.10. Contracts - Students.

§176.11. Progress.

§176.12. Attendance.

§176.13. Makeup and Alternative Scheduling.

§176.14. Conduct Policy.

§176.15. Cancellation and Refund Policy.

§176.16. Facilities and Equipment.

§176.17. Motor Vehicles.

§176.18. Student Complaints.

§176.19. Records.

§176.20. Names and Advertising.

§176.21. Application Fees and Other Charges.

Filed with the Office of the Secretary of State, on January 24, 2000.

TRD-200000439

Criss Cloudt

Associate Commissioner, Policy Planning and Research

Texas Education Agency

Earliest possible date of adoption: March 5, 2000

For further information, please call: (512) 463-9701


Subchapter B. MINIMUM STANDARDS FOR OPERATION OF TEXAS DRIVING SAFETY SCHOOLS AND COURSE PROVIDERS

19 TAC §§176.101 - 176.122

(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Texas Education Agency or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The repeals are proposed under Texas Civil Statutes, Article 4413(29c), §6, as amended by Senate Bill 777, 76th Texas Legislature, 1999, which authorizes the commissioner of education to adopt rules necessary to implement the Texas Driver and Traffic Safety Education Act.

The repeals implement Texas Civil Statutes, Article 4413(29c), §6, as amended by Senate Bill 777, 76th Texas Legislature, 1999.

§176.101. General Information.

§176.102. Definitions.

§176.103. Exemptions.

§176.104. Driving Safety School Licensure.

§176.105. Course Provider Licensure.

§176.106. Applications from Small Businesses.

§176.107. Driving Safety School and Course Provider Responsibilities.

§176.108. Administrative Staff Members.

§176.109. Driving Safety Instructor License.

§176.110. Courses of Instruction.

§176.111. Contracts - Students.

§176.112. Progress.

§176.113. Attendance.

§176.114. Makeup and Alternative Scheduling.

§176.115. Conduct Policy.

§176.116. Cancellation and Refund Policy.

§176.117. Facilities and Equipment.

§176.118. Motor Vehicles.

§176.119. Student Complaints.

§176.120. Records.

§176.121. Names and Advertising.

§176.122. Application Fees and Other Charges.

Filed with the Office of the Secretary of State, on January 24, 2000.

TRD-200000440

Criss Cloudt

Associate Commissioner, Policy Planning and Research

Texas Education Agency

Earliest possible date of adoption: March 5, 2000

For further information, please call: (512) 463-9701


Part 7. STATE BOARD FOR EDUCATOR CERTIFICATION

Chapter 227. PROVISIONS FOR EDUCATOR PREPARATION STUDENTS [ ADMISSION TO AN EDUCATOR PREPARATION PROGRAM ] TEACH FOR TEXAS PILOT PROGRAM

19 TAC §§227.30, 227.32, 227.34, 227.36, 227.38, 227.40, 227.42, 227.44, 227.46, 227.48, 227.50, 227.52, 227.54, 227.56, 227.58

The State Board for Educator Certification proposes new §§227.30, 227.32, 227.34, 227.36, 227.38, 227.40, 227.42, 227.44, 227.46, 227.48, 227.50, 227.52, 227.54, 227.56 and 227.58, concerning the Teach for Texas Pilot Program.

The new rules are being made to implement the Teach for Texas Pilot Program. The pilot program was passed in House Bill 713 (HB) by the 76th session of the Texas Legislature, 1999. The new rules will be used by the executive director of the State Board for Educator Certification and funding officers at educator preparation programs and regional education service centers to award financial incentives to postbaccalaureate teacher candidates and to enforce obligations of participants in the pilot program.

Barry Alaimo, Staff Services Officer, has determined that for the first five-year period the rules are in effect the fiscal implications as a result of enforcing or administering the rules cannot be determined now because the pilot program is currently unfunded.

Ron Kettler, Director of Educator Preparation and Certification, has determined that for the first five years the rules are in effect the public will benefit from the pilot program because it will provide financial incentives to persons holding a baccalaureate degree who agree to become certified teachers and teach in Texas public schools for at least three years. The public will also benefit from having participants receive special incentives to become certified teachers and agree to teach subjects that have a critical shortage of teachers or agree to teach in underserved communities. There will be no effect on state and local government or small businesses. There are no anticipated economic costs to persons who are required to comply with the rules as proposed.

Comments on the new rules may be submitted to Ron Kettler, Director of Educator Preparation and Certification, State Board for Educator Certification, 1001 Trinity Street, Austin, Texas 78701-2603.

The new rules are proposed under Texas Education Code, §§21.502 - 21.503, which authorize the State Board for Educator Certification to adopt rules concerning the Teach for Texas Pilot Program.

No other statutes, articles or codes are affected by the proposed new rules.

§227.30. Purposes.

The purposes of the Teach for Texas Pilot Program are to:

(1)

attract to the teaching profession persons who have expressed interest in teaching and to support the preparation and certification of those persons as teachers;

(2)

recognize the importance of the certification process governed by the State Board for Educator Certification under Subchapter B, which requires verification of competence in subject area and professional knowledge and skills;

(3)

encourage the creation and expansion of educator preparation programs that recognize the knowledge and skills gained through previous educational and work-related experiences and that are delivered in a manner that recognizes individual circumstances, including the need to remain employed full-time while enrolled in the Teach for Texas Pilot Program; and

(4)

provide stipends to postbaccalaureate teacher certification candidates to aid those persons in becoming certified as teachers.

§227.32. Definitions.

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:

(1)

Average cost - For purposes of determining the amount of a financial incentive under the pilot program only, the average cost, as determined by the executive director, of attending an authorized educator preparation program for one year.

(2)

Authorized entity, center, or educator preparation program - A regional education service center or educator preparation program approved by the executive director to help administer the pilot program. An educator preparation program whose students are eligible to participate in the pilot program.

(3)

Basic financial incentive - a financial incentive for participants seeking a standard teaching certificate under Chapter 21, Subchapter B, of the Education Code.

(4)

Board - The State Board for Educator Certification.

(5)

Certification preparation period - The period between the initial date of receipt of a financial incentive through the pilot program and the participant's obtaining standard teaching certification under Chapter 21, Subchapter B, of the Education Code.

(6)

Eligibility period - A 12 month period beginning on the date of a participant's acceptance of a financial incentive through the pilot program and during which the participant is eligible to receive the financial incentive.

(7)

Executive director - The chief executive officer of the board.

(8)

Financial incentive - A stipend or other form of monetary aid awarded to a participant in the pilot program. A basic or special financial incentive.

(9)

Funding officer - The individual at an entity approved under this subchapter who is designated by the chief executive officer of the entity to represent the Teach for Texas Pilot Program described in this subchapter.

(10)

Good cause - See §227.40 of this subchapter (relating to Hardship and Other Good Cause).

(11)

Hardship - See §227.40 of this subchapter (relating to Hardship and Other Good Cause).

(12)

Participant - An individual who has accepted a financial incentive under the pilot program.

(13)

Pilot program - The Teach for Texas Pilot Program described in this subchapter.

(14)

Special financial incentive - A financial incentive awarded to a participant who was previously awarded a basic financial incentive, who has obtained standard teacher certification under Chapter 21, Subchapter B, of the Education Code, and who agrees to teach in an underserved area.

(15)

Underserved area - A critical shortage of teachers in a subject area as defined by the Commissioner of Education or in a school district or on a campus as defined by the executive director.

§227.34. Available Funds.

(a)

Acceptance of applicants shall depend on the availability of appropriated and other funds designated to support the pilot program. Selection of applicants to participate in the pilot program shall be based upon criteria approved by the executive director in order to use limited funds effectively.

(b)

In any fiscal year in which the executive director determines that available funds are inadequate to meaningfully award financial incentives, the executive director may encumber funds budgeted for the pilot program and carry them over to the next fiscal year.

(c)

In any fiscal year in which the executive director determines that available funds exceed the maximum total amount of financial incentives accepted by eligible applicants, the executive director may encumber such excess funds budgeted for the pilot program and carry them over to the next fiscal year.

§227.36. Authorized Entity and Funding Officer.

(a)

Eligible entities. Eligible entities include Texas educator preparation programs approved by the board and accredited by the executive director under this title and regional education service centers as defined in Chapter 8 of the Education Code.

(b)

Maintaining accreditation status. If the entity is an educator preparation program placed under review by the executive director, applicants for program funding shall provide evidence of knowledge of the entity's accreditation status to the executive director as a condition to receiving the award.

(c)

Each authorized entity shall designate a funding officer to help administer the pilot program.

(d)

Financial incentives under this subchapter are available only through entities authorized by the executive director to help administer the pilot program.

(e)

All entities approved to administer the pilot program must meet reporting requirements under this subchapter in a timely fashion.

§227.38. Eligible Participants; Preferences.

(a)

To be eligible for a basic financial incentive under this subchapter a participant must

(1)

have a baccalaureate degree from an accredited four-year institution of higher education;

(2)

be recommended by the funding officer at an authorized entity, as defined in this subchapter;

(3)

be admitted to an authorized educator preparation program, as defined in this subchapter; and

(4)

sign a written contract agreeing to teach full-time for three years at the preschool, primary, middle, or secondary level in a public school in Texas, as provided by this subchapter.

(b)

In awarding financial incentives through the pilot program, preference will be given to participants who agree to teach full-time for not less than three years in a Texas public school under one or both of the following conditions:

(1)

teaching in a subject or field certified by the commissioner of education as experiencing a critical shortage of teachers; or

(2)

teaching in a school district or on a campus certified by the executive director as experiencing a critical shortage of teachers.

§227.40. Hardship and Other Good Cause.

The executive director may extend eligibility or obligation periods by this subchapter Hardship and other good cause shall be determined by the executive director based upon documented circumstances. Such circumstances include, but are not limited to, the following:

(1)

a severe illness or other debilitating condition that may affect the participant's ability to satisfy the obligation; or

(2)

responsibility of the participant for the care of a temporarily disabled dependent that may affect the participant's ability to satisfy the obligation.

§227.42. Amount of Basic Financial Incentive.

(a)

The maximum amount of a basic financial incentive shall equal the average annual cost of required tuition, books, and fees at an authorized educator preparation program. The executive director shall determine both the maximum amount of a basic financial incentive and the average annual cost of attending an authorized educator preparation program.

(b)

The combination of the basic financial incentive and any other student financial aid may not exceed the average annual cost of attending an authorized educator preparation program, as determined by the executive director under this section.

§227.44. Participant Obligations for Basic Financial Incentive.

(a)

To avoid repayment of a basic financial incentive as a loan from the State of Texas, the participant must:

(1)

complete all requirements to obtain standard teacher certification under Chapter 21, Subchapter B, of the Education Code not later than 24 months after accepting the financial incentive; and

(2)

teach full-time for three years in a Texas public school in the subject or field for which standard teacher certification was obtained.

(b)

A participant has four years in which to complete the three - year service obligation required by this section. Because of hardship or for other good cause, the executive director may extend the four-year service obligation period for up to 12 months to allow the participant to complete the teaching obligation.

(c)

The service obligation period begins on the first day the participant begins qualified employment.

(d)

During the service obligation period, the participant shall provide the appropriate funding officer with regular, periodic reports of his or her status.

§227.46. Special Financial Incentives for Teaching in Underserved Areas.

(a)

The executive director may award a special financial incentive to a participant who was awarded a basic financial incentive under this subchapter, has obtained standard teacher certification under Chapter 21, Subchapter B, of the Education Code, and who agrees to teach full-time for three years in a Texas public school under one or both of the following conditions:

(1)

teaching in a subject or field having a critical shortage of teachers as determined by the Commissioner of Education; or

(2)

teaching in a school district or on a campus experiencing a critical shortage of teachers as determined by the executive director.

(b)

A special financial incentive may be awarded in an amount to be determined by the executive director based on available funds but shall be no more than 50% of the basic financial incentive initially awarded to the participant.

(c)

In a form to be determined by the executive director, a participant accepting a special financial incentive under this section shall provide to the executive director proof of having obtained an assignment satisfying the conditions of subsection (a) of this section.

(d)

To avoid repayment of a special financial incentive, the participant must satisfactorily complete the service obligation agreed to under subsection (a) of this section and must meet any other applicable requirements of this subchapter.

§227.48. Conversion of Financial Incentive Award to Loan.

(a)

The pilot program financial incentive becomes a loan and shall be reported to credit reporting agencies when the participant fails to satisfy any or all of conditions or requirements prescribed under this subchapter, including the following:

(1)

make satisfactory progress in the educator preparation program;

(2)

be certified as a teacher within 24 months after the financial incentive is awarded;

(3)

complete the three-year teaching obligation within four years of beginning the service obligation period; or

(4)

provide a regular, periodic report of employment status and location to the executive director within a reasonable period of time as determined by the executive director.

(b)

Participants must sign a contract with the board as provided by this subchapter and sign a promissory note acknowledging the conditional nature of the financial incentive and promising to repay the outstanding principal, interest, and reasonable collection costs.

§227.50. Loan Interest.

(a)

The interest rate charged on a financial incentive awarded through the pilot program shall be determined by the executive director and shall be a fixed, simple interest rate.

(b)

Interest begins to accrue upon the date the financial incentive becomes a loan.

§227.52. Repayment of Loans.

(a)

A financial incentive shall be repaid in installments over a period of not more than five years from the date the incentive becomes a loan.

(b)

A participant shall begin making payments within 60 days of the date on which the financial incentive becomes a loan.

(c)

The repayment amount shall be based upon the proportion of the remaining unfulfilled service obligation.

(d)

The minimum annual repayment amount is 20% of the amount determined under subsection (c) of this section.

§227.54. Enforcement of Collection.

(a)

Each participant who accepts a financial incentive and the State Board for Educator Certification must execute a contract between them under which the participant is obligated to teach in a public school in this state for a stated period after certification. The executive director may sign such a contract on behalf of the board.

(b)

When a participant in the pilot program shall have failed to make six monthly payments in accordance with the promissory note(s), then the full amount of remaining principal, interest, and/or late charges shall immediately become due and payable. The participant's name and last known address and other information as requested by the executive director shall be reported to the attorney general or any county or district attorney acting for him or her in the county of the participant's residence or in Travis County, unless the attorney general shall find reasonable justification for delaying suit and shall advise the executive director in writing.

(c)

Upon notification by the executive director of default on the loan, the authorized entity shall cause the records, including transcripts of the recipient, to become unavailable to him or her or any other person outside the entity until the executive director has notified the entity that the default has been corrected.

(d)

In all cases of default, the participant shall be responsible for the payment of principal and all accrued charges, including interest, late charges, any collections costs incurred, court costs, and attorney fees.

§227.56. Provisions for Disability and Death.

The board may cancel a recipient's repayment or service obligation if it determines:

(1)

on the basis of a sworn affidavit of a qualified physician, that the participant is unable to teach on a full-time basis because the participant is permanently, totally disabled; or

(2)

on the basis of a death certificate, that the participant has died. In the case of death, the board may pursue collection from the participant's estate if the debt has been reduced to judgment before the death of the participant.

§227.58. Dissemination of Information.

The executive director is responsible for publishing and disseminating general information and program rules for the pilot program to eligible authorized entities, appropriate associations, and other interested entities.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on January 21, 2000.

TRD-200000428

Dan Junell

General Counsel

State Board for Educator Certification

Earliest possible date of adoption: March 5, 2000

For further information, please call: (512) 469-3011