HB 5232

relating to a pilot program for outcomes-based contracts at public
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
(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
(1)  requires the contracting entity to:
(A)  meet clearly defined outcome targets related
to increased student achievement; and
(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
(3)  provides for a funding structure that includes
incentives for meeting or exceeding outcome targets described by
(4)  allows flexibility in the implementation of
educational strategies tailored to the unique needs of each student
(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
(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.