(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.
  (1) Compensatory education allotment--Funds allocated under the Texas Education Code (TEC), §42.152.
  (2) Dropout prevention strategy plan--The document prepared for submission to the Texas Education Agency (TEA) in compliance with the TEC, §29.918, and in accordance with specifications set forth in subsection (e) of this section.
  (3) High school allotment--Funds allocated under the TEC, §42.2516(b)(3).
  (4) Plan to increase college enrollment--The document prepared in compliance with the TEC, §29.904, for submission to the TEA by a district ranked among the lowest 10% of districts, based on its college-going rate. A district's college-going rate is calculated as the percentage of its graduating class enrolled in higher education the fall after completing high school.
  (5) School district--For the purposes of this section, the definition of school district includes an open-enrollment charter school.
  (6) School improvement plan--The document prepared for submission to the TEA by a school district in compliance with the TEC, §39.1323, or by a school district with a campus rated academically unacceptable for failure to meet the required performance standards set forth in the TEC, §39.073.
(b) Identification of districts with a high dropout rate. In accordance with the TEC, §29.918(a), a school district with a high dropout rate, as defined by the commissioner of education, shall be identified and notified annually of the requirement to submit a dropout prevention strategy plan as specified by this section. The commissioner shall identify on an annual basis the school districts that are required to comply with the TEC, §29.918, and this section by grouping school districts by comparable size and then establishing a percentage of school districts with relatively high dropout rates that must submit dropout prevention strategy plans.
(c) Coordination with statutory requirement to submit a plan to increase college enrollment. If a school district is required by statute to submit both a dropout prevention strategy plan and a plan to increase college enrollment, the school district must describe in its dropout prevention strategy plan how the activities identified in both plans will be coordinated.
(d) Coordination with statutory requirement to submit a school improvement plan.
  (1) If a school district is required by statute to submit both a school improvement plan due to failure to meet the required performance standard regarding dropout rates or completion rates as well as a dropout prevention strategy plan, then the school district may request that its school improvement plan be used to satisfy the requirements of both statutes. To exercise this option, a school district superintendent must submit a request in writing to the commissioner of education for approval.
  (2) A school improvement plan used to satisfy the statutory requirements of both plans, as provided in paragraph (1) of this subsection, must clearly identify those programs and activities to be funded with compensatory education allotment and high school allotment funds.
(e) Dropout prevention strategy plan specifications.
  (1) A school district identified as having a high dropout rate under subsection (b) of this section shall submit a dropout prevention strategy plan to the commissioner describing the manner in which it intends to use its compensatory education allocation and high school allocation funds for the purpose of developing and implementing dropout prevention strategies.
  (2) A school district's dropout prevention strategy plan shall include the following components:
    (A) analysis of factors that have had an impact on the school district or campus dropout rate using evaluation and needs assessment data available to the school district;
    (B) description of programs and activities designed to reduce the school district and campus dropout rate to be funded in whole or in part with compensatory education allotment funds;
    (C) description of programs and activities identified in §61.1093 of this title (relating to Use of Funds) designed to reduce the school district and campus dropout rate to be funded in whole or in part with high school allotment funds;
    (D) quantifiable benchmarks to measure evidence of change;
    (E) resources to be used in implementing programs and activities identified in subparagraphs (B) and (C) of this paragraph;
    (F) timeline for initiation of activities identified in subparagraphs (B) and (C) of this paragraph; and
    (G) description of how activities will be coordinated with those identified in the school district's plan to increase college enrollment, if the school district is required by the TEC, §29.904, to submit such a plan.
  (3) The dropout prevention strategy plan shall include research-based programs and activities.
(f) Dropout prevention strategy plan submission. In accordance with the TEC, §29.918(a), a school district shall submit its dropout prevention strategy plan not later than December 1 of each school year preceding the school year in which the school district will receive the compensatory education allotment or high school allotment. The plan shall be submitted to the TEA in a manner determined by the commissioner.
(g) Dropout prevention strategy plan approval. In accordance with the TEC, §29.918(b), review of district dropout prevention strategy plans shall be completed by the commissioner not later than March 1 of the school year preceding the school year in which the district will receive the compensatory education allotment or high school allotment. Until a district receives commissioner approval in writing for its dropout prevention strategy plan, a district may not spend or obligate more than 25% of the district's compensatory education allotment or high school allotment funds as set forth in the TEC, §29.918(b).
(h) Sanctions. The commissioner may impose sanctions under the TEC, §39.131 or §39.1321, if the district:
  (1) fails to submit its dropout prevention strategy plan by December 1;
  (2) submits a dropout prevention strategy plan that fails to meet the plan specifications set forth in subsection (e) of this section; or
  (3) spends or obligates compensatory education allotment or high school allotment funds in excess of 25% of the allotment amount prior to receiving approval of the dropout prevention strategy plan by the commissioner.

Source Note: The provisions of this §89.1701 adopted to be effective November 29, 2007, 32 TexReg 8500