PART 2. TEXAS EDUCATION AGENCY
CHAPTER 33. STATEMENT OF INVESTMENT OBJECTIVES, POLICIES, AND GUIDELINES OF THE TEXAS PERMANENT SCHOOL FUND
The State Board of Education (SBOE) adopts an amendment to §33.65, concerning the guarantee program for school district bonds. The amendment is adopted with changes to the proposed text as published in the December 12, 2008, issue of the Texas Register (33 TexReg 10124). The section establishes provisions for the administration of the bond guarantee program. The adopted amendment clarifies the policies for administration of the school district bond guarantee program and the procedures a school district must follow when applying for a bond guarantee through this program.
The Texas Education Code (TEC), §7.102(c)(33), authorizes the SBOE to adopt rules for the implementation of the guarantee bond program as authorized in the TEC, Chapter 45, School District Funds, Subchapter C, Guaranteed Bonds. The TEC, §45.063, authorizes the SBOE to adopt rules necessary for the administration of the bond guarantee program. Section 33.65 is the rule the SBOE adopted to implement the program.
Section 33.65 sets out the statutory provisions for the bond guarantee program, provides definitions, and explains the requirements of and policies related to the program's application process. The rule also provides limitations on access to the guarantee program and allows for the commissioner to allocate specific holdings of the Permanent School Fund (PSF) under certain conditions. The rule explains what effect defeasement has on guaranteed bonds and sets out specific program conditions for bonds issued or guaranteed on certain specified dates. The rule also explains program payment conditions and guarantee restrictions.
The adopted amendment modifies the rule in the following ways.
In subsection (b), which defines terms used in the rule, the definition of annual debt service was clarified.
In subsection (c), on data sources, the description of how enrollment increases are determined was clarified. Also, the reasons for which the commissioner may consider adjustments to data values was expanded to include adjusting values that are not reflective of current conditions.
In subsection (d), on application processing, the day of the month on which the commissioner announces prioritization results and processes applications was changed from the tenth business day to the twentieth. The subsection was also changed to reference an initial approval process and a final approval process instead of simply "the approval process." In paragraph (3)(A), the requirements related to district accreditation and eligibility of refunding bonds for guarantee was clarified. Paragraph (3)(E) was modified at adoption to correct a cross-reference within the subsection. In paragraph (4), the description of the process that the commissioner will follow each month to estimate the available capacity of the PSF was clarified. Paragraph (5)(A) was modified to allow the commissioner to increase the amount of the PSF in reserve as necessary. Language was also added to paragraph (5)(A) at adoption to clarify the ability of the SBOE to ratify or reject a decision by the commissioner to increase the amount of capacity held in reserve. In paragraph (7), requirements and policies related to a new initial bond guarantee program approval process were added.
Subsection (e), on application for the guarantee, was modified to add requirements relating to the bond guarantee program application fee to paragraph (1) and requirements relating to a new initial approval process to paragraph (2). A new paragraph (3) was added to subsection (e), setting out the requirements of a new final approval process.
In subsection (f), the amount of debt service per student to which a district seeking bond guarantee approval is limited was raised.
Minor technical corrections and corrections in word usage were made throughout the rule.
Procedural and reporting implications include the following.
A district that received initial bond guarantee program approval will be required to provide a written notice by facsimile or email to the Texas Education Agency (TEA) two business days before issuing a preliminary official statement (POS) for the bonds that would be eligible for the guarantee or two business days before soliciting investment offers, if the bonds would be privately placed without the use of a POS.
A district that then received confirmation from the TEA that the PSF capacity continued to be available will be required to provide written notice to the TEA of the placement of an agenda item on a meeting of the school board of trustees to approve the bond sale no later than two business days before the meeting. If the bond sale were to be completed pursuant to a delegation by the board to a pricing officer or committee, notice will be required to be given no later than two business days before the execution of a bond purchase agreement by such pricing officer or committee. Any locally maintained paperwork requirements will be consistent with the reporting requirements described for the procedural and reporting implications.
The TEA determined that the amendment will have no direct adverse economic impact for small businesses and microbusinesses; therefore, no regulatory flexibility analysis, specified in Texas Government Code, §2006.002, is required.
In accordance with the Texas Education Code, §7.102(f), the SBOE approved this rule action for final adoption by a vote of more than two-thirds of its members to specify an effective date earlier than the beginning of the 2009-2010 school year in order to implement the latest policy in a timely manner. The effective date of the adopted amendments is 20 days after filing as adopted.
Following is a summary of the public comment received and corresponding SBOE response regarding the proposed amendment.
Comment. An individual commented that the cross-reference in subsection (d)(3)(E) is incorrect since the proposal modifies the provisions referenced in paragraph (7).
Agency response. The SBOE agreed and corrected subsection (d)(3)(E) at adoption to correct the cross-reference to refer to paragraphs (7) and (9).
The amendment is adopted under the Texas Education Code, §7.102(c)(33), which authorizes the SBOE to adopt rules as necessary for the administration of the guaranteed bond program as provided under TEC, Chapter 45, Subchapter C, and §45.063, which authorizes the SBOE to adopt rules necessary for the administration of the bond guarantee program.
The amendment implements the Texas Education Code, §7.102(c)(33) and §45.063.
§33.65.Guarantee Program for School District Bonds.
(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 state information depository (SID), 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 SID as of the date of the application deadline.
(B) The annual debt service does not include the amount of debt service to be paid on the bonds for which the reservation is sought.
(C) The debt service amounts used in this calculation for variable rate bonds will be those which are published in the final official statement.
(2) Bond order--The order adopted by the governing body of a school district that authorizes the issuance of bonds.
(3) Application deadline--The last business day of the month in which an application for a guarantee is filed. Applications must be received by the Texas Education Agency division responsible for state funding by 5:00 p.m. on the last business day of the month to be considered in that month's application processing.
(4) 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. 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 maintenance of 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.
(5) Refunding issue--An issuance of bonds for the purpose of refunding bonds 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 that were authorized by a bond election under the TEC, §45.003.
(6) Combination issue--An issuance of bonds for which an application is filed for a guarantee 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.
(7) Average daily attendance (ADA)--Total refined average daily attendance as defined by §129.1025 of this title (relating to Adoption By Reference: Student Attendance Accounting Handbook).
(8) Enrollment growth--Growth in student enrollment that has occurred over the previous five years.
(c) Data sources.
(1) The following data sources will be used for purposes of prioritization:
(A) projected ADA as adopted by the legislature for appropriations purposes;
(B) final property values certified by the comptroller of public accounts 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 will be used;
(C) annual debt service, as defined in subsection (b)(1) of this section, due during the fiscal year in which the proposed debt will be issued. The amount of debt service on the proposed bond issue will not be included in the calculation of annual debt service; and
(D) enrollment increases over the previous five years, which will be determined using enrollment 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) Application processing. To facilitate prioritization of applications for the guarantee, all applications received during a calendar month will be held until the twentieth business day of the subsequent month. On the twentieth business day of each month, the commissioner of education will announce the results of the prioritization described in paragraph (5) of this subsection and process applications for initial approval of the guarantee up to the available capacity as of the application deadline, subject to the requirements of this subsection.
(1) The school district may not submit an application for a guarantee before the successful passage of an authorizing proposition.
(2) The actual guarantee of the bonds is subject to the initial approval process and the final approval process prescribed in subsection (e) of this section.
(3) Refunding issues must comply with the following requirements to retain eligibility for the guarantee for the refunding bonds.
(A) The district must have an accreditation status of Accredited as defined by §97.1055 of this title (relating to Accreditation Status). If the district has an accreditation status of 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 refunding bonds will not be eligible to retain the guarantee. Districts with an accreditation status of Not Accredited-Revoked will not be eligible to retain the guarantee on the refunding bonds.
(B) The bonds to be refunded must have been previously guaranteed by the Permanent School Fund (PSF). Only refunding issues as defined in subsection (b)(5) of this section are eligible for the guarantee.
(C) The district must demonstrate that issuing the refunding bond(s) will result in a present value savings to the district and must 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.
(D) If a district files an application for a combination issue, the application will be treated as 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 eligibility requirements described in this subsection. The district making the application must present data to the commissioner that demonstrates compliance for both the new money portion of the issue and the refunding portion of the issue.
(E) The refunding transaction must comply with the provisions of paragraphs (7) and (9) of this subsection.
(4) The commissioner will estimate the available capacity of the PSF on a monthly basis to provide initial approval to the guarantee of school district bonds. 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 (e)(3) of this section.
(5) The State Board of Education (SBOE) will establish an amount of capacity to be held in reserve of no less than 5.0% of the fund's capacity. 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, as determined by subtracting the amount to be held in reserve from the total available 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).
(A) 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.
(B) Guarantees will be awarded to applicants 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.
(6) 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.
(7) Each district that submits a valid application will be notified of the application status within ten business days of the end of the month following the application deadline. If a district is awarded initial approval for the guarantee as described in subsection (e)(2) of this section, the following must be met.
(A) The district must comply with the provisions for final approval described in subsection (e)(3) of this section to maintain approval for the guarantee.
(B) The bonds must be approved by the Office of the Attorney General within 120 days of the date of the letter granting the approval of the guarantee. The initial approval for the guarantee will expire at the end of the 120-day period. The commissioner may extend the 120-day period, based on extraordinary circumstances, upon receiving a written request from the district prior to the expiration of the 120-day period.
(8) If a district does not receive a guarantee or for any reason does not receive approval of the bonds from the Office of the Attorney General within the specified time period, the district may reapply in a subsequent month. Applications that were denied a guarantee will not be retained for consideration in subsequent months.
(9) If the bonds are not approved by the Office of the Attorney General within 120 days of the date of the letter granting the approval of the guarantee, the commissioner will consider the application withdrawn and the district must reapply for a guarantee.
(10) Districts may not represent the bonds as guaranteed for the purposes of pricing or marketing the bonds prior to the date of the letter granting approval of the guarantee.
(e) Application for the guarantee.
(1) Application process. Districts must apply to the commissioner of education for the guarantee of eligible bonds. The district must submit, in a form specified by the commissioner, 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 application must be accompanied by a fee to be set by the commissioner and approved by the SBOE.
(A) The fee is due at the time the application for the guarantee is submitted. An application will not be processed until the fee has been received in accordance with the process prescribed by the commissioner for remitting the fee on the application form.
(B) The fee will not be refunded to a district that:
(i) is not approved for the guarantee; or
(ii) does not sell its bonds before the expiration of its approval for the guarantee.
(C) The fee may be transferred to a subsequent application for the guarantee by the district if the district withdraws its application and submits the subsequent application before the expiration of its initial approval for the guarantee.
(2) Initial approval. 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:
(A) the purpose of the bond issue;
(B) the district's accreditation status as defined by §97.1055 of this title 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;
(C) the district's compliance with statutes and rules of the Texas Education Agency (TEA); and
(D) 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.
(3) Final approval. 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 working 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 agenda item on a meeting of the school board of trustees to approve the bond sale 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 electronic mail in a manner prescribed by the commissioner.
(f) Limitations on access to the guarantee.
(1) The following limitations apply to bonds for which the election authorizing the issuance of bonds was called after July 15, 2004.
(2) The commissioner will limit approval of the guarantee to a district with less than $1,650 of annual debt service per student in ADA at the time of the application for a guarantee. The limitation will not apply to school districts that have enrollment that is at least 25% higher than the enrollment reported five years earlier, 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.
(3) The eligibility of bonds to receive the guarantee is limited to those new money, refunding, and combination issues as defined in subsection (b)(4) - (6) of this section.
(g) Allocation of specific holdings. If necessary to successfully operate the guarantee program, 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.
(h) Defeasement. The guarantee will be completely removed when bonds guaranteed by this program are defeased, and such a provision must be specifically stated in the bond resolution. If bonds guaranteed by this program are defeased, the district must notify the commissioner in writing within ten calendar days of the action.
(i) 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.
(j) Bonds guaranteed before December 31, 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.
(k) 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.
(l) 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 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 upon a tender of such bonds in accordance with the terms of the bonds do not constitute matured principal and interest payments.
(m) Guarantee restrictions. The guarantee provided for eligible bonds in accordance with the provisions of the TEC, Chapter 45, Subchapter C, is restricted to matured bond principal and interest. 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.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on February 2, 2009.
TRD-200900382
Cristina De La Fuente-Valadez
Director, Policy Coordination
Texas Education Agency
Effective date: February 22, 2009
Proposal publication date: December 12, 2008
For further information, please call: (512) 475-1497
SUBCHAPTER B. DEVELOPMENT AND ADMINISTRATION OF TESTS
The State Board of Education (SBOE) adopts an amendment to §101.23, concerning performance standards. The amendment is adopted without changes to the proposed text as published in the December 12, 2008, issue of the Texas Register (33 TexReg 10128) and will not be republished. The section sets the standard of satisfactory performance on the Texas Assessment of Knowledge and Skills (TAKS). The adopted amendment sets new performance standards as appropriate for the reading and mathematics assessments in Grades 3-8 based on the implementation of a vertical scale.
Senate Bill (SB) 1031, 80th Texas Legislature, 2007, requires the implementation of a vertical scale to compare the performance of individual students from one grade level to the next beginning with the 2008-2009 school year in the following grades and subjects: TAKS English Grades 3-8 reading; TAKS English Grades 3-8 mathematics; TAKS Spanish Grades 3-6 reading; and TAKS Spanish Grades 3-6 mathematics.
This change to the Texas assessment program requires a performance standards review to determine whether observed differences in performance across grades are appropriate or whether the standards should be adjusted. In the review process, panelists examined the cut scores implemented under the initial standard-setting process in light of updated impact data and other information relevant to the changes in the assessment program. Following their review, the review committees recommended whether a change to the cut scores associated with the performance standards was needed. The TAKS standards included in rule as figures result from a standards review process conducted from July through October 2008.
When the TAKS program was first developed, the Texas Education Agency (TEA) convened a national Technical Advisory Committee (TAC) to advise the SBOE on standard-setting activities. This committee was composed of prominent educational testing experts with experience in standard setting in other major testing programs across the country. The current TAC met in July 2008 to review the standards for the TAKS reading and mathematics assessments in Grades 3-8 and to provide guidance on the proposed standards review process.
In October 2008, TEA conducted four standards review meetings for the English TAKS assessments and two standards review meetings for the Spanish TAKS assessments. The panelists who participated in these review meetings were selected based on recommendations from school districts, stakeholder groups, business leaders, and members of the SBOE.
The 2008 standards review built on the item-mapping method used for the initial TAKS standard setting in 2002. The general process followed by the review panelists is summarized below.
Overview of the standards review process. Meeting facilitators discussed the purpose of setting standards and why this specific review was required for the development of a vertical scale.
Review of current TAKS performance standards on the vertical scale. Panelists examined charts showing the performance standards at each grade level relative to each other on the common vertical scale. Based on this information, panelists discussed differences in performance standards across grades.
Taking the assessment. In a step repeated separately for each grade, the panelists took the TAKS assessments to experience the tests in the same way that students would. After completing each test, panelists scored their responses and discussed the test in terms of content, difficulty, the construct being measured, and the testing experience itself.
Review of 2003 through 2008 impact data. In a step repeated separately for each grade, the panelists studied information about the percent of students (overall and by individual student) classified into each performance level at the panel-recommended standards across the first six TAKS administrations, paying attention to changes in student performance over time.
Round 1. In a step repeated separately for each grade--based on the review and discussion performed above and taking into consideration information about the standard error of measurement--panelists made recommendations about changes to the cut scores on each assessment using the 2008 performance standards as a baseline.
Round 2. In a step repeated separately for each grade, the panelists reviewed their recommendations from Round 1. As part of this process, they received impact data using the revised performance standards as well as feedback on how each panelist's recommendations compared to his or her peers. Following a discussion, each panelist made recommendations in the same manner as in Round 1.
Smoothing. For the English panels only, a "smoothing committee" composed of select panelists evaluated whether the recommended changes to the performance standards were reasonable given the standards set in the other elementary or middle school grade cluster for the same subject area. Based on their evaluation, this committee recommended adjustments to certain results in certain grades.
The panel recommended changing the TAKS standards in the following grades and subjects: Met the Standard--Reading (English), Grades 6 and 8; Met the Standard--Reading (Spanish), Grade 6; Met the Standard--Mathematics (Spanish), Grades 3, 4 and 6; Commended Performance --Reading (English), Grades 6 and 8; Commended Performance --Reading (Spanish), Grade 6; Commended Performance --Mathematics (English), Grades 5, 6 and 8; and Commended Performance --Mathematics (Spanish), Grades 4 and 6.
The adopted amendment to 19 TAC §101.23 consolidates the information formerly contained in subsection (b) into an expanded subsection (a). Subsection (a) also includes a new figure (Figure: 19 TAC §101.23(a)) identifying the performance standards established by the SBOE for all the TAKS assessments other than the TAKS reading and mathematics assessments in Grades 3-8. The amended subsection (b) contains a new figure (Figure: 19 TAC §101.23(b)) identifying only the performance standards for the TAKS reading and mathematics assessments in Grades 3-8. Subsection (c) was deleted because it referred to the State Developed Alternative Assessment (SDAA II), which is no longer administered.
The effective date for the adopted rule action is September 1, 2009, which makes the revised standards binding in the 2009-2010 school year. Nevertheless, TEA will report scores based on the vertical scale for the assessments administered in spring 2009 as information only for parents and educators. In order to proceed with this plan, during its January 2009 meeting, the SBOE approved for second reading and final adoption the performance standards prior to the reporting of assessment results in March 2009.
The transition to a vertical scale in the spring of 2009 will impact all student assessment TAKS reporting for Grades 3-8. Beginning in the 2009-2010 school year, TAKS scores for Grades 3-8 reading and mathematics will no longer be reported on the current horizontal scale, which was implemented in 2002-2003.
The TEA determined that the amendment will have no direct adverse economic impact for small businesses and microbusinesses; therefore, no regulatory flexibility analysis, specified in Texas Government Code, §2006.002, is required.
No comments were received regarding the proposed amendment.
The amendment is adopted under the Texas Education Code, §39.024, which authorizes the SBOE to determine the level of performance considered to be satisfactory on the assessment instruments. The TEC, §39.036, requires the TEA to develop and implement the vertical scale in the administration of certain assessment instruments.
The amendment implements the Texas Education Code, §39.024 and §39.036.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on February 2, 2009.
TRD-200900383
Cristina De La Fuente-Valadez
Director, Policy Coordination
Texas Education Agency
Effective date: September 1, 2009
Proposal publication date: December 12, 2008
For further information, please call: (512) 475-1497
The State Board of Education (SBOE) adopts amendments to §§111.23, 111.24, 111.33, 111.34, and 111.36, concerning the Texas essential knowledge and skills (TEKS) for mathematics. The amendments are adopted without changes to the proposed text as published in the December 12, 2008, issue of the Texas Register (33 TexReg 10130) and will not be republished. The sections establish the TEKS for mathematics courses in middle school and high school. The adopted amendments incorporate approved college readiness standards into the mathematics TEKS.
House Bill 1, passed by the 79th Texas Legislature, Third Called Session, 2006, requires the development of college readiness standards and the incorporation of approved college readiness standards and expectations into the essential knowledge and skills. College readiness standards in English language arts, mathematics, science, and social studies were adopted by the Texas Higher Education Coordinating Board on January 24, 2008. During the May 2008 meeting, the SBOE directed Texas Education Agency (TEA) staff to convene a committee to make recommendations for incorporating approved college readiness standards into the mathematics TEKS. The committee met on August 28-29, 2008, to work on recommendations for amendments to the TEKS for middle school and high school mathematics. Committee recommendations were presented during the discussion at the special September 29, 2008, SBOE meeting, and no further changes were recommended subsequent to that meeting. The SBOE approved the amendments for final adoption in January 2009.
The TEA determined that the amendments will have no direct adverse economic impact for small businesses or microbusinesses; therefore, no regulatory flexibility analysis, specified in Texas Government Code, §2006.002, is required.
In accordance with the Texas Education Code, §7.102(f), the SBOE approved this rule action for final adoption by a vote of more than two-thirds of its members to specify an effective date earlier than the beginning of the 2009-2010 school year. The earlier effective date will allow districts to begin preparing for implementation in the 2009-2010 school year and will provide for appropriate alignment with the new end-of-course exam development schedule. The effective date of the adopted amendments is 20 days after filing as adopted.
No comments were received regarding the proposed amendments.
SUBCHAPTER B. MIDDLE SCHOOL
The amendments are adopted under the Texas Education Code, §7.102(c)(4), which authorizes the SBOE to establish curriculum and graduation requirements; §28.002, which authorizes the SBOE to by rule identify the essential knowledge and skills of each subject of the required curriculum that all students should be able to demonstrate and that will be used in evaluating textbooks and addressed on the assessment instruments; and §28.008, which authorizes the SBOE to incorporate college readiness standards and expectations approved by the commissioner of education and the Texas Higher Education Coordinating Board into the essential knowledge and skills identified by the board under §28.002(c).
The amendments implement the Texas Education Code, §§7.102(c)(4), 28.002, and 28.008.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on February 2, 2009.
TRD-200900384
Cristina De La Fuente-Valadez
Director, Policy Coordination
Texas Education Agency
Effective date: February 22, 2009
Proposal publication date: December 12, 2008
For further information, please call: (512) 475-1497
19 TAC §§111.33, 111.34, 111.36
The amendments are adopted under the Texas Education Code, §7.102(c)(4), which authorizes the SBOE to establish curriculum and graduation requirements; §28.002, which authorizes the SBOE to by rule identify the essential knowledge and skills of each subject of the required curriculum that all students should be able to demonstrate and that will be used in evaluating textbooks and addressed on the assessment instruments; §28.008, which authorizes the SBOE to incorporate college readiness standards and expectations approved by the commissioner of education and the Texas Higher Education Coordinating Board into the essential knowledge and skills identified by the board under §28.002(c); and §28.025, which authorizes the SBOE to by rule determine curriculum requirements for the minimum, recommended, and advanced high school programs that are consistent with the required curriculum under §28.002.
The amendments implement the Texas Education Code, §§7.102(c)(4), 28.002, 28.008, and 28.025.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on February 2, 2009.
TRD-200900385
Cristina De La Fuente-Valadez
Director, Policy Coordination
Texas Education Agency
Effective date: February 22, 2009
Proposal publication date: December 12, 2008
For further information, please call: (512) 475-1497