bill for a school vendor pay-for-results pilot

The text as introduced · 453 words

89R10309 KJE-D

By: Buckley
H.B. No. 5232

A BILL TO BE ENTITLED

AN ACT

relating to a pilot program for outcomes-based contracts at public

schools.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subchapter Z, Chapter 29, Education Code, is

amended by adding Section 29.913 to read as follows:

Sec. 29.913. OUTCOMES-BASED CONTRACTS PILOT PROGRAM. (a)

The agency shall establish a pilot program through which school

districts and open-enrollment charter schools, in contracting for a

good or service related to student outcomes, use a funding model

that ties compensation to measurable student outcomes, including

academic performance, graduation rates, and skill proficiency.

(b) The agency shall select at least five school districts

and open-enrollment charter schools to participate in the pilot

program.

(c) To be eligible to participate in the pilot program, a

school district or open-enrollment charter school must agree to

enter into a contract for a good or service related to student

outcomes that:

(1) requires the contracting entity to:

(A) meet clearly defined outcome targets related

to increased student achievement; and

(B) use best practices;

(2) includes specific, quantifiable performance

metrics used to assess the effectiveness of the good or service in

making progress toward outcome targets described by Subdivision

(1)(A);

(3) provides for a funding structure that includes

incentives for meeting or exceeding outcome targets described by

Subdivision (1)(A); and

(4) allows flexibility in the implementation of

educational strategies tailored to the unique needs of each student

served.

(d) From money appropriated or otherwise available for the

purpose, the agency shall award grants to school districts and

open-enrollment charter schools participating in the pilot

program. The amount of each grant must be correlated to the

achievement of outcome targets described by Subsection (c)(1)(A) in

each contract entered into under the pilot program.

(e) Not later than December 1, 2028, the agency shall submit

to the legislature a report on the results of the pilot program.

The report must include the agency's recommendation on whether the

pilot program should be expanded or continued on a statewide basis.

(f) The commissioner may adopt rules as necessary to

implement the pilot program.

(g) This section expires September 1, 2029.

SECTION 2. As soon as practicable but not later than six

months after the effective date of this Act, the Texas Education

Agency shall establish the pilot program required under Section

29.913, Education Code, as added by this Act.

SECTION 3. This Act takes effect immediately if it receives

a vote of two-thirds of all the members elected to each house, as

provided by Section 39, Article III, Texas Constitution. If this

Act does not receive the vote necessary for immediate effect, this

Act takes effect September 1, 2025.