Texas 2009 81st Regular

Texas House Bill HB3646 Engrossed / Bill

Filed 02/01/2025

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                    By: Hochberg, Eissler, Aycock, Pitts, H.B. No. 3646
 Patrick, et al.


 A BILL TO BE ENTITLED
 AN ACT
 relating to public school finance.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 SECTION 1. Section 7.024(a), Education Code, is amended to
 read as follows:
 (a) The investment capital fund consists of money
 appropriated for purposes of [transferred to] the fund [as provided
 by Section 42.152(l)]. The agency shall administer the fund. The
 purposes of this fund are to assist eligible public schools to
 implement practices and procedures consistent with deregulation
 and school restructuring in order to improve student achievement
 and to help schools identify and train parents and community
 leaders who will hold the school and the school district
 accountable for achieving high academic standards.
 SECTION 2. Sections 7.062(a) and (c), Education Code, are
 amended to read as follows:
 (a) In this section, "wealth per student" means a school
 district's taxable value of property for the current tax year as
 determined under Subchapter M, Chapter 403, Government Code, [or,
 if applicable, Section 42.2521,] divided by the district's average
 daily attendance as determined under Section 42.005.
 (c) Except as otherwise provided by this subsection, if the
 commissioner certifies that the amount appropriated for a state
 fiscal year for purposes of Subchapters A and B, Chapter 46, exceeds
 the amount to which school districts are entitled under those
 subchapters for that year, the commissioner shall use the excess
 funds, in an amount not to exceed $20 million in any state fiscal
 year, for the purpose of making grants under this section. The use
 of excess funds under this subsection has priority over any
 provision of Chapter 42 that permits or directs the use of excess
 foundation school program funds, including Sections 42.2517,
 [42.2521,] 42.2522, and 42.2531. The commissioner is required to
 use excess funds as provided by this subsection only if the
 commissioner is not required to reduce the total amount of state
 funds allocated to school districts under Section 42.253(h).
 SECTION 3. Section 12.106, Education Code, is amended by
 amending Subsection (a) and adding Subsections (a-1) and (a-2) to
 read as follows:
 (a) A charter holder is entitled to receive for the
 open-enrollment charter school funding under Chapter 42 equal to
 the greater of:
 (1)  the amount of funding per student in weighted
 average daily attendance, excluding enrichment funding under
 Sections 42.302(a-1)(2) and (3), as they existed on January 1,
 2009, received for the school during the 2008-2009 school year and
 an additional amount of $100 for each student in weighted average
 daily attendance; or
 (2)  the amount of funding per student in weighted
 average daily attendance, excluding enrichment funding under
 Section 42.302(a), to which the charter holder would be entitled
 for the school under Chapter 42 [as] if the school were a school
 district without a tier one local share for purposes of Section
 42.253 and without any local revenue [("LR")] for purposes of
 Section 42.2516 [42.302].
 (a-1) In determining funding for an open-enrollment charter
 school under Subsection (a)(2), adjustments under Sections 42.102,
 42.103, 42.104, and 42.105 [and the district enrichment tax rate
 ("DTR") under Section 42.302] are based on the average adjustment
 [and average district enrichment tax rate] for the state.
 (a-2)  In addition to the funding provided by Subsection (a),
 a charter holder is entitled to receive for the open-enrollment
 charter school enrichment funding under Section 42.302(a) based on
 the state average tax effort.
 SECTION 4. Subchapter D, Chapter 12, Education Code, is
 amended by adding Section 12.1331 to read as follows:
 Sec. 12.1331.  WAGE INCREASE FOR CERTAIN PROFESSIONAL STAFF.
 (a) This section applies to a charter holder that on January 1,
 2009, operated an open-enrollment charter school.
 (b)  Beginning with the 2009-2010 school year, each charter
 holder shall increase the monthly salary of each classroom teacher,
 full-time speech pathologist, full-time librarian, full-time
 counselor, and full-time school nurse employed by the charter
 holder at an open-enrollment charter school by the greater of:
 (1) $80; or
 (2)  the maximum uniform amount that, when combined
 with any resulting increases in the amount of contributions made by
 the charter holder for social security coverage for the specified
 employees or by the charter holder on behalf of the specified
 employees under Section 825.405, Government Code, may be provided
 using 50 percent of any additional funding received by the charter
 holder as a result of changes made by H.B. No. 3646, Acts of the 81st
 Legislature, Regular Session, 2009, to Chapters 41 and 42 over the
 funding the charter holder would have received under Chapter 42, as
 it existed on January 1, 2009, as determined by the commissioner.
 (c)  A payment under Subsection (b) is in addition to wages
 the charter holder would otherwise pay the employee during the
 school year.
 SECTION 5. Effective September 1, 2009, Section 21.402,
 Education Code, is amended by amending Subsections (a), (d), and
 (g) and adding Subsections (c-1), (c-2), (c-3), and (c-4) to read as
 follows:
 (a) Except as provided by Subsection (d), (e), or (f), a
 school district must pay each classroom teacher, full-time
 librarian, full-time counselor certified under Subchapter B, or
 full-time school nurse not less than the minimum monthly salary,
 based on the employee's level of experience in addition to other
 factors, as determined by commissioner rule, determined by the
 following formula:
 MS = SF x FS
 where:
 "MS" is the minimum monthly salary;
 "SF" is the applicable salary factor specified by Subsection
 (c); and
 "FS" is the amount, as determined by the commissioner under
 Subsection (b), of state and local funds per weighted student,
 including funds provided under Section 42.2516 [42.2516(b)(1)(B),
 but not funds provided under Section 42.2516(b)(1)(A), (b)(1)(C),
 (b)(2), or (b)(3)], available to a district eligible to receive
 state assistance under Section 42.302 with a maintenance and
 operations tax rate per $100 of taxable value equal to the product
 of the state compression percentage, as determined under Section
 42.2516, multiplied by $1.50, except that the amount of state and
 local funds per weighted student does not include the amount
 attributable to the increase in the guaranteed level made by
 Chapter 1187, Acts of the 77th Legislature, Regular Session, 2001.
 (c-1)  Notwithstanding Subsection (a), for the 2009-2010 and
 2010-2011 school years, each school district shall increase the
 monthly salary of each classroom teacher, full-time speech
 pathologist, full-time librarian, full-time counselor certified
 under Subchapter B, and full-time school nurse by the greater of:
 (1) $80; or
 (2)  the maximum uniform amount that, when combined
 with any resulting increases in the amount of contributions made by
 the district for social security coverage for the specified
 employees or by the district on behalf of the specified employees
 under Section 825.405, Government Code, may be provided using 50
 percent of any additional funding received by the district as a
 result of changes made by H.B. No. 3646, Acts of the 81st
 Legislature, Regular Session, 2009, to Chapters 41 and 42 over the
 funding to which the district would have been entitled under
 Chapters 41 and 42, as those chapters existed on January 1, 2009, at
 the maintenance and operations tax rate equal to the rate adopted by
 the district for the 2008-2009 school year, as determined by the
 commissioner.
 (c-2)  An increase in salary under Subsection (c-1) does not
 include:
 (1)  any amount an employee would have received for the
 2009-2010 or 2010-2011 school year, as applicable, under the
 district's salary schedule for the 2008-2009 school year, if that
 schedule had been in effect for the 2009-2010 or 2010-2011 school
 year, including any local supplement and any money representing a
 career ladder supplement the employee would have received in the
 2009-2010 or 2010-2011 school year; or
 (2)  any part of the salary to which an employee is
 entitled under Subsection (a).
 (c-3)  Subsections (c-1) and (c-2) and this subsection
 expire September 1, 2011.
 (c-4)  Notwithstanding any other provision of this section,
 the salary factor for purposes of this section for an employee with
 21 or more years of experience is 1.0217.
 (d) A classroom teacher, full-time speech pathologist,
 full-time librarian, full-time counselor certified under
 Subchapter B, or full-time school nurse employed by a school
 district in the 2010-2011 [2006-2007] school year is, as long as the
 employee is employed by the same district, entitled to a salary that
 is at least equal to the salary the employee received for the
 2010-2011 [2006-2007] school year.
 (g) The commissioner may adopt rules to govern the
 application of this section, including rules that:
 (1) require the payment of a minimum salary under this
 section to a person employed in more than one capacity for which a
 minimum salary is provided and whose combined employment in those
 capacities constitutes full-time employment; and
 (2) specify the credentials a person must hold to be
 considered a speech pathologist or school nurse under this section.
 SECTION 6. Effective September 1, 2010, Section 21.402,
 Education Code, is amended by adding Subsection (c-4) to read as
 follows:
 (c-4)  Notwithstanding any other provision of this section,
 the salary factors per step for purposes of this section for an
 employee with 21 or more years of experience are as follows:
 Years Experience 21 22 and over Years Experience 21 22 and over
Years Experience 21 22 and over
 Salary Factor 1.0217 1.0344 Salary Factor 1.0217 1.0344
Salary Factor 1.0217 1.0344
 SECTION 7. Effective September 1, 2011, Section 21.402,
 Education Code, is amended by adding Subsection (c-4) to read as
 follows:
 (c-4)  Notwithstanding any other provision of this section,
 the salary factors per step for purposes of this section for an
 employee with 21 or more years of experience are as follows:
 Years Experience 21 22 23 and over Years Experience 21 22 23 and over
Years Experience 21 22 23 and over
 Salary Factor 1.0217 1.0344 1.0471 Salary Factor 1.0217 1.0344 1.0471
Salary Factor 1.0217 1.0344 1.0471
 SECTION 8. Effective September 1, 2012, Section 21.402,
 Education Code, is amended by adding Subsection (c-4) to read as
 follows:
 (c-4)  Notwithstanding any other provision of this section,
 the salary factors per step for purposes of this section for an
 employee with 21 or more years of experience are as follows:
 Years Experience 21 22 23 Years Experience 21 22 23
Years Experience 21 22 23
 Salary Factor 1.0217 1.0344 1.0471 Salary Factor 1.0217 1.0344 1.0471
Salary Factor 1.0217 1.0344 1.0471
 Years Experience 24 and over Years Experience 24 and over
Years Experience 24 and over
 Salary Factor 1.0598 Salary Factor 1.0598
Salary Factor 1.0598
 SECTION 9. Effective September 1, 2013, Section 21.402,
 Education Code, is amended by adding Subsection (c-4) to read as
 follows:
 (c-4)  Notwithstanding any other provision of this section,
 the salary factors per step for purposes of this section for an
 employee with 21 or more years of experience are as follows:
 Years Experience 21 22 23 Years Experience 21 22 23
Years Experience 21 22 23
 Salary Factor 1.0217 1.0344 1.0471 Salary Factor 1.0217 1.0344 1.0471
Salary Factor 1.0217 1.0344 1.0471
 Years Experience 24 25 and over Years Experience 24 25 and over
Years Experience 24 25 and over
 Salary Factor 1.0598 1.0725 Salary Factor 1.0598 1.0725
Salary Factor 1.0598 1.0725
 SECTION 10. Effective September 1, 2014, Section 21.402,
 Education Code, is amended by adding Subsection (c-4) to read as
 follows:
 (c-4)  Notwithstanding any other provision of this section,
 the salary factors per step for purposes of this section for an
 employee with 21 or more years of experience are as follows:
 Years Experience 21 22 23 Years Experience 21 22 23
Years Experience 21 22 23
 Salary Factor 1.0217 1.0344 1.0471 Salary Factor 1.0217 1.0344 1.0471
Salary Factor 1.0217 1.0344 1.0471
 Years Experience 24 25 26 and over Years Experience 24 25 26 and over
Years Experience 24 25 26 and over
 Salary Factor 1.0598 1.0725 1.0852 Salary Factor 1.0598 1.0725 1.0852
Salary Factor 1.0598 1.0725 1.0852
 SECTION 11. Effective September 1, 2015, Section 21.402,
 Education Code, is amended by adding Subsection (c-4) to read as
 follows:
 (c-4)  Notwithstanding any other provision of this section,
 the salary factors per step for purposes of this section for an
 employee with 21 or more years of experience are as follows:
 Years Experience 21 22 23 Years Experience 21 22 23
Years Experience 21 22 23
 Salary Factor 1.0217 1.0344 1.0471 Salary Factor 1.0217 1.0344 1.0471
Salary Factor 1.0217 1.0344 1.0471
 Years Experience 24 25 26 Years Experience 24 25 26
Years Experience 24 25 26
 Salary Factor 1.0598 1.0725 1.0852 Salary Factor 1.0598 1.0725 1.0852
Salary Factor 1.0598 1.0725 1.0852
 Years Experience 27 and over Years Experience 27 and over
Years Experience 27 and over
 Salary Factor 1.0979 Salary Factor 1.0979
Salary Factor 1.0979
 SECTION 12. Effective September 1, 2016, Section 21.402,
 Education Code, is amended by adding Subsection (c-4) to read as
 follows:
 (c-4)  Notwithstanding any other provision of this section,
 the salary factors per step for purposes of this section for an
 employee with 21 or more years of experience are as follows:
 Years Experience 21 22 23 Years Experience 21 22 23
Years Experience 21 22 23
 Salary Factor 1.0217 1.0344 1.0471 Salary Factor 1.0217 1.0344 1.0471
Salary Factor 1.0217 1.0344 1.0471
 Years Experience 24 25 26 Years Experience 24 25 26
Years Experience 24 25 26
 Salary Factor 1.0598 1.0725 1.0852 Salary Factor 1.0598 1.0725 1.0852
Salary Factor 1.0598 1.0725 1.0852
 Years Experience 27 28 and over Years Experience 27 28 and over
Years Experience 27 28 and over
 Salary Factor 1.0979 1.1106 Salary Factor 1.0979 1.1106
Salary Factor 1.0979 1.1106
 SECTION 13. Effective September 1, 2017, Section 21.402,
 Education Code, is amended by adding Subsection (c-4) to read as
 follows:
 (c-4)  Notwithstanding any other provision of this section,
 the salary factors per step for purposes of this section for an
 employee with 21 or more years of experience are as follows:
 Years Experience 21 22 23 Years Experience 21 22 23
Years Experience 21 22 23
 Salary Factor 1.0217 1.0344 1.0471 Salary Factor 1.0217 1.0344 1.0471
Salary Factor 1.0217 1.0344 1.0471
 Years Experience 24 25 26 Years Experience 24 25 26
Years Experience 24 25 26
 Salary Factor 1.0598 1.0725 1.0852 Salary Factor 1.0598 1.0725 1.0852
Salary Factor 1.0598 1.0725 1.0852
 Years Experience 27 28 29 and over Years Experience 27 28 29 and over
Years Experience 27 28 29 and over
 Salary Factor 1.0979 1.1106 1.1233 Salary Factor 1.0979 1.1106 1.1233
Salary Factor 1.0979 1.1106 1.1233
 SECTION 14. Effective September 1, 2018, Section 21.402,
 Education Code, is amended by adding Subsection (c-4) to read as
 follows:
 (c-4)  Notwithstanding any other provision of this section,
 the salary factors per step for purposes of this section for an
 employee with 21 or more years of experience are as follows:
 Years Experience 21 22 23 Years Experience 21 22 23
Years Experience 21 22 23
 Salary Factor 1.0217 1.0344 1.0471 Salary Factor 1.0217 1.0344 1.0471
Salary Factor 1.0217 1.0344 1.0471
 Years Experience 24 25 26 Years Experience 24 25 26
Years Experience 24 25 26
 Salary Factor 1.0598 1.0725 1.0852 Salary Factor 1.0598 1.0725 1.0852
Salary Factor 1.0598 1.0725 1.0852
 Years Experience 27 28 29 Years Experience 27 28 29
Years Experience 27 28 29
 Salary Factor 1.0979 1.1106 1.1233 Salary Factor 1.0979 1.1106 1.1233
Salary Factor 1.0979 1.1106 1.1233
 Years Experience 30 and over Years Experience 30 and over
Years Experience 30 and over
 Salary Factor 1.1360 Salary Factor 1.1360
Salary Factor 1.1360
 SECTION 15. Effective September 1, 2019, Section 21.402,
 Education Code, is amended by adding Subsection (c-4) to read as
 follows:
 (c-4)  Notwithstanding any other provision of this section,
 the salary factors per step for purposes of this section for an
 employee with 21 or more years of experience are as follows:
 Years Experience 21 22 23 Years Experience 21 22 23
Years Experience 21 22 23
 Salary Factor 1.0217 1.0344 1.0471 Salary Factor 1.0217 1.0344 1.0471
Salary Factor 1.0217 1.0344 1.0471
 Years Experience 24 25 26 Years Experience 24 25 26
Years Experience 24 25 26
 Salary Factor 1.0598 1.0725 1.0852 Salary Factor 1.0598 1.0725 1.0852
Salary Factor 1.0598 1.0725 1.0852
 Years Experience 27 28 29 Years Experience 27 28 29
Years Experience 27 28 29
 Salary Factor 1.0979 1.1106 1.1233 Salary Factor 1.0979 1.1106 1.1233
Salary Factor 1.0979 1.1106 1.1233
 Years Experience 30 31 and over Years Experience 30 31 and over
Years Experience 30 31 and over
 Salary Factor 1.1360 1.1487 Salary Factor 1.1360 1.1487
Salary Factor 1.1360 1.1487
 SECTION 16. Effective September 1, 2020, Section 21.402,
 Education Code, is amended by adding Subsection (c-4) to read as
 follows:
 (c-4)  Notwithstanding any other provision of this section,
 the salary factors per step for purposes of this section for an
 employee with 21 or more years of experience are as follows:
 Years Experience 21 22 23 Years Experience 21 22 23
Years Experience 21 22 23
 Salary Factor 1.0217 1.0344 1.0471 Salary Factor 1.0217 1.0344 1.0471
Salary Factor 1.0217 1.0344 1.0471
 Years Experience 24 25 26 Years Experience 24 25 26
Years Experience 24 25 26
 Salary Factor 1.0598 1.0725 1.0852 Salary Factor 1.0598 1.0725 1.0852
Salary Factor 1.0598 1.0725 1.0852
 Years Experience 27 28 29 Years Experience 27 28 29
Years Experience 27 28 29
 Salary Factor 1.0979 1.1106 1.1233 Salary Factor 1.0979 1.1106 1.1233
Salary Factor 1.0979 1.1106 1.1233
 Years Experience 30 31 32 and over Years Experience 30 31 32 and over
Years Experience 30 31 32 and over
 Salary Factor 1.1360 1.1487 1.1614 Salary Factor 1.1360 1.1487 1.1614
Salary Factor 1.1360 1.1487 1.1614
 SECTION 17. Effective September 1, 2021, Section 21.402,
 Education Code, is amended by adding Subsection (c-4) to read as
 follows:
 (c-4)  Notwithstanding any other provision of this section,
 the salary factors per step for purposes of this section for an
 employee with 21 or more years of experience are as follows:
 Years Experience 21 22 23 Years Experience 21 22 23
Years Experience 21 22 23
 Salary Factor 1.0217 1.0344 1.0471 Salary Factor 1.0217 1.0344 1.0471
Salary Factor 1.0217 1.0344 1.0471
 Years Experience 24 25 26 Years Experience 24 25 26
Years Experience 24 25 26
 Salary Factor 1.0598 1.0725 1.0852 Salary Factor 1.0598 1.0725 1.0852
Salary Factor 1.0598 1.0725 1.0852
 Years Experience 27 28 29 Years Experience 27 28 29
Years Experience 27 28 29
 Salary Factor 1.0979 1.1106 1.1233 Salary Factor 1.0979 1.1106 1.1233
Salary Factor 1.0979 1.1106 1.1233
 Years Experience 30 31 32 Years Experience 30 31 32
Years Experience 30 31 32
 Salary Factor 1.1360 1.1487 1.1614 Salary Factor 1.1360 1.1487 1.1614
Salary Factor 1.1360 1.1487 1.1614
 Years Experience 33 and over Years Experience 33 and over
Years Experience 33 and over
 Salary Factor 1.1741 Salary Factor 1.1741
Salary Factor 1.1741
 SECTION 18. Effective September 1, 2022, Section 21.402,
 Education Code, is amended by adding Subsection (c-4) to read as
 follows:
 (c-4)  Notwithstanding any other provision of this section,
 the salary factors per step for purposes of this section for an
 employee with 21 or more years of experience are as follows:
 Years Experience 21 22 23 Years Experience 21 22 23
Years Experience 21 22 23
 Salary Factor 1.0217 1.0344 1.0471 Salary Factor 1.0217 1.0344 1.0471
Salary Factor 1.0217 1.0344 1.0471
 Years Experience 24 25 26 Years Experience 24 25 26
Years Experience 24 25 26
 Salary Factor 1.0598 1.0725 1.0852 Salary Factor 1.0598 1.0725 1.0852
Salary Factor 1.0598 1.0725 1.0852
 Years Experience 27 28 29 Years Experience 27 28 29
Years Experience 27 28 29
 Salary Factor 1.0979 1.1106 1.1233 Salary Factor 1.0979 1.1106 1.1233
Salary Factor 1.0979 1.1106 1.1233
 Years Experience 30 31 32 Years Experience 30 31 32
Years Experience 30 31 32
 Salary Factor 1.1360 1.1487 1.1614 Salary Factor 1.1360 1.1487 1.1614
Salary Factor 1.1360 1.1487 1.1614
 Years Experience 33 34 and over Years Experience 33 34 and over
Years Experience 33 34 and over
 Salary Factor 1.1741 1.1868 Salary Factor 1.1741 1.1868
Salary Factor 1.1741 1.1868
 SECTION 19. Effective September 1, 2023, Section 21.402,
 Education Code, is amended by adding Subsection (c-4) to read as
 follows:
 (c-4)  Notwithstanding any other provision of this section,
 the salary factors per step for purposes of this section for an
 employee with 21 or more years of experience are as follows:
 Years Experience 21 22 23 Years Experience 21 22 23
Years Experience 21 22 23
 Salary Factor 1.0217 1.0344 1.0471 Salary Factor 1.0217 1.0344 1.0471
Salary Factor 1.0217 1.0344 1.0471
 Years Experience 24 25 26 Years Experience 24 25 26
Years Experience 24 25 26
 Salary Factor 1.0598 1.0725 1.0852 Salary Factor 1.0598 1.0725 1.0852
Salary Factor 1.0598 1.0725 1.0852
 Years Experience 27 28 29 Years Experience 27 28 29
Years Experience 27 28 29
 Salary Factor 1.0979 1.1106 1.1233 Salary Factor 1.0979 1.1106 1.1233
Salary Factor 1.0979 1.1106 1.1233
 Years Experience 30 31 32 Years Experience 30 31 32
Years Experience 30 31 32
 Salary Factor 1.1360 1.1487 1.1614 Salary Factor 1.1360 1.1487 1.1614
Salary Factor 1.1360 1.1487 1.1614
 Years Experience 33 34 35 and over Years Experience 33 34 35 and over
Years Experience 33 34 35 and over
 Salary Factor 1.1741 1.1868 1.1995 Salary Factor 1.1741 1.1868 1.1995
Salary Factor 1.1741 1.1868 1.1995
 SECTION 20. Effective September 1, 2009, Section 21.403(a),
 Education Code, is amended to read as follows:
 (a) A teacher, librarian, counselor, or nurse shall advance
 one step on the minimum salary schedule under Section 21.402 for
 each year of experience as a teacher, librarian, counselor, or
 nurse until step 21 [20] is reached.
 SECTION 21. Effective September 1, 2010, Section 21.403(a),
 Education Code, is amended to read as follows:
 (a) A teacher, librarian, counselor, or nurse shall advance
 one step on the minimum salary schedule under Section 21.402 for
 each year of experience as a teacher, librarian, counselor, or
 nurse until step 22 [20] is reached.
 SECTION 22. Effective September 1, 2011, Section 21.403(a),
 Education Code, is amended to read as follows:
 (a) A teacher, librarian, counselor, or nurse shall advance
 one step on the minimum salary schedule under Section 21.402 for
 each year of experience as a teacher, librarian, counselor, or
 nurse until step 23 [20] is reached.
 SECTION 23. Effective September 1, 2012, Section 21.403(a),
 Education Code, is amended to read as follows:
 (a) A teacher, librarian, counselor, or nurse shall advance
 one step on the minimum salary schedule under Section 21.402 for
 each year of experience as a teacher, librarian, counselor, or
 nurse until step 24 [20] is reached.
 SECTION 24. Effective September 1, 2013, Section 21.403(a),
 Education Code, is amended to read as follows:
 (a) A teacher, librarian, counselor, or nurse shall advance
 one step on the minimum salary schedule under Section 21.402 for
 each year of experience as a teacher, librarian, counselor, or
 nurse until step 25 [20] is reached.
 SECTION 25. Effective September 1, 2014, Section 21.403(a),
 Education Code, is amended to read as follows:
 (a) A teacher, librarian, counselor, or nurse shall advance
 one step on the minimum salary schedule under Section 21.402 for
 each year of experience as a teacher, librarian, counselor, or
 nurse until step 26 [20] is reached.
 SECTION 26. Effective September 1, 2015, Section 21.403(a),
 Education Code, is amended to read as follows:
 (a) A teacher, librarian, counselor, or nurse shall advance
 one step on the minimum salary schedule under Section 21.402 for
 each year of experience as a teacher, librarian, counselor, or
 nurse until step 27 [20] is reached.
 SECTION 27. Effective September 1, 2016, Section 21.403(a),
 Education Code, is amended to read as follows:
 (a) A teacher, librarian, counselor, or nurse shall advance
 one step on the minimum salary schedule under Section 21.402 for
 each year of experience as a teacher, librarian, counselor, or
 nurse until step 28 [20] is reached.
 SECTION 28. Effective September 1, 2017, Section 21.403(a),
 Education Code, is amended to read as follows:
 (a) A teacher, librarian, counselor, or nurse shall advance
 one step on the minimum salary schedule under Section 21.402 for
 each year of experience as a teacher, librarian, counselor, or
 nurse until step 29 [20] is reached.
 SECTION 29. Effective September 1, 2018, Section 21.403(a),
 Education Code, is amended to read as follows:
 (a) A teacher, librarian, counselor, or nurse shall advance
 one step on the minimum salary schedule under Section 21.402 for
 each year of experience as a teacher, librarian, counselor, or
 nurse until step 30 [20] is reached.
 SECTION 30. Effective September 1, 2019, Section 21.403(a),
 Education Code, is amended to read as follows:
 (a) A teacher, librarian, counselor, or nurse shall advance
 one step on the minimum salary schedule under Section 21.402 for
 each year of experience as a teacher, librarian, counselor, or
 nurse until step 31 [20] is reached.
 SECTION 31. Effective September 1, 2020, Section 21.403(a),
 Education Code, is amended to read as follows:
 (a) A teacher, librarian, counselor, or nurse shall advance
 one step on the minimum salary schedule under Section 21.402 for
 each year of experience as a teacher, librarian, counselor, or
 nurse until step 32 [20] is reached.
 SECTION 32. Effective September 1, 2021, Section 21.403(a),
 Education Code, is amended to read as follows:
 (a) A teacher, librarian, counselor, or nurse shall advance
 one step on the minimum salary schedule under Section 21.402 for
 each year of experience as a teacher, librarian, counselor, or
 nurse until step 33 [20] is reached.
 SECTION 33. Effective September 1, 2022, Section 21.403(a),
 Education Code, is amended to read as follows:
 (a) A teacher, librarian, counselor, or nurse shall advance
 one step on the minimum salary schedule under Section 21.402 for
 each year of experience as a teacher, librarian, counselor, or
 nurse until step 34 [20] is reached.
 SECTION 34. Effective September 1, 2023, Section 21.403(a),
 Education Code, is amended to read as follows:
 (a) A teacher, librarian, counselor, or nurse shall advance
 one step on the minimum salary schedule under Section 21.402 for
 each year of experience as a teacher, librarian, counselor, or
 nurse until step 35 [20] is reached.
 SECTION 35. Section 21.415(a), Education Code, is amended
 to read as follows:
 (a) A school district shall provide in employment contracts
 that qualifying employees may receive an incentive payment under an
 awards program established under Subchapter [N or] O if the
 district participates in the program.
 SECTION 36. Sections 21.703(a) and (d), Education Code, are
 amended to read as follows:
 (a) Each state fiscal year, the commissioner shall deposit
 an amount determined by the General Appropriations Act [the sum of
 $1,000 multiplied by the number of classroom teachers in this
 state] to the credit of the educator excellence fund in the general
 revenue fund. Each state fiscal year, the agency shall use[:
 [(1)     not more than $100 million of the funds in the
 educator excellence fund to provide grant awards under the awards
 for student achievement program established under Subchapter N; and
 [(2) any remaining] funds in the educator excellence
 fund to provide a qualifying school district a grant in an amount
 determined by:
 (1) [(A)] dividing the amount of [remaining] money
 available for distribution in the educator excellence fund by the
 total number of students in weighted average daily attendance in
 qualifying districts for that fiscal year; and
 (2) [(B)] multiplying the amount determined under
 Subdivision (1) [Paragraph (A)] by the number of students in
 weighted average daily attendance in the district.
 (d) Notwithstanding Subsection (a) [or (b)], the agency may
 use funds in the educator excellence fund as necessary to conduct or
 contract with another entity to conduct the evaluation required
 under Section 21.706. This subsection expires June 1, 2011.
 SECTION 37. Section 21.704, Education Code, is amended by
 adding Subsection (c-1) to read as follows:
 (c-1)  A local awards plan must provide for teachers and
 principals eligible to receive awards under the plan to be notified
 of the specific criteria and any formulas on which the awards will
 be based before the beginning of the period on which the awards will
 be based.
 SECTION 38. Section 21.705, Education Code, is amended to
 read as follows:
 Sec. 21.705. AWARD PAYMENTS. A school district must use at
 least 30 [60] percent of grant funds awarded to the district under
 this subchapter to directly award classroom teachers who
 effectively improve student achievement as determined by
 meaningful, objective measures. The remaining funds must be used
 only to:
 (1) recruit and retain highly qualified teachers and
 principals for campuses serving a disproportionately high number of
 economically disadvantaged students or students of limited English
 proficiency, as defined by Section 29.052;
 (2)  recruit and retain teachers certified under
 Subchapter B in mathematics, science, special education, bilingual
 education, or English as a second language;
 (3)  provide teacher induction and mentoring support;
 or
 (4)  provide funding for previously developed
 incentive programs [provide stipends to effective mentors or
 teacher coaches;
 [(2)     provide stipends to classroom teachers who are
 certified in a subject that is designated by the commissioner as
 commonly experiencing a critical shortage of teachers;
 [(3)     provide stipends to classroom teachers who are
 certified under Subchapter B in the main subject area in which they
 teach;
 [(4)     provide stipends to classroom teachers with
 proven records of success for improving student performance who are
 assigned to campuses at which the district has experienced
 difficulty assigning or retaining teachers;
 [(5)     provide stipends to classroom teachers who hold
 postgraduate degrees;
 [(6)     provide awards to principals who effectively
 increase student performance as determined by objective measures;
 [(7)     provide awards to other campus employees who
 demonstrate excellence; or
 [(8)     implement the components of a Teacher Advancement
 Program (TAP), including:
 [(A)     an instructionally focused accountability
 system; and
 [(B)     the adjustment of teaching schedules to
 permit ongoing applied professional growth].
 SECTION 39. Section 21.706(a), Education Code, is amended
 to read as follows:
 (a) Using funds from the educator excellence fund created
 under Section 21.703, the agency shall conduct or contract with
 another entity to conduct a comprehensive evaluation of the [awards
 for student achievement program established under Subchapter N and
 the educator excellence awards] program [established under this
 subchapter]. The evaluation must include:
 (1) a descriptive analysis of the design and
 implementation of the [awards for student achievement program and
 the educator excellence awards] program at participating campuses
 or school districts, including detailed descriptions of the models
 and approaches used by the campuses or districts in distributing
 incentive awards to classroom teachers;
 (2) detailed information regarding the distribution
 of incentive awards to classroom teachers under the [awards for
 student achievement program and the educator excellence awards]
 program, including the measurements used by the campuses or
 districts in determining the amounts of incentive awards to
 distribute to classroom teachers;
 (3) a comprehensive, quantitative analysis of the
 impact of the [awards for student achievement program and the
 educator excellence awards] program at participating campuses or
 districts, including the impact of the various incentive award
 distribution models used by the campuses or districts on key
 outcomes in the program [programs]; and
 (4) a summary of the approaches used by participating
 campuses or districts in distributing grant funds that are not
 specifically designated for distribution as incentive awards for
 classroom teachers and an assessment of whether those funds are
 used effectively by the participating campuses or districts.
 SECTION 40. Section 21.707, Education Code, is amended to
 read as follows:
 Sec. 21.707. RULES. The commissioner shall adopt rules
 necessary to administer this subchapter. The rules may not
 establish additional criteria for local awards plans other than
 those established by this subchapter, except as necessary to
 provide financial accountability for the grants.
 SECTION 41. Subchapter A, Chapter 29, Education Code, is
 amended by adding Section 29.018 to read as follows:
 Sec. 29.018.  SPECIAL EDUCATION GRANT. (a) From funds
 appropriated for the purposes of this section, federal funds, or
 any other funds available, the commissioner shall make grants
 available to school districts to assist districts in covering the
 cost of educating students with disabilities.
 (b)  A school district is eligible to apply for a grant under
 this section if:
 (1)  the district does not receive sufficient funds,
 including state funds provided under Section 42.151 and federal
 funds, for a student with disabilities to pay for the special
 education services provided to the student; or
 (2)  the district does not receive sufficient funds,
 including state funds provided under Section 42.151 and federal
 funds, for all students with disabilities in the district to pay for
 the special education services provided to the students.
 (c)  A school district that applies for a grant under this
 section must provide the commissioner with a report comparing the
 state and federal funds received by the district for students with
 disabilities and the expenses incurred by the district in providing
 special education services to students with disabilities.
 (d)  Expenses that may be included by a school district in
 applying for a grant under this section include the cost of training
 personnel to provide special education services to a student with
 disabilities.
 (e)  A school district that receives a grant under this
 section must educate students with disabilities in the least
 restrictive environment that is appropriate to meet the student's
 educational needs.
 (f)  The commissioner shall adopt rules as necessary to
 administer this section.
 SECTION 42. Section 29.082, Education Code, is amended by
 adding Subsection (h) to read as follows:
 (h)  The commissioner shall give priority to applications
 for extended year programs to districts with high concentrations of
 educationally disadvantaged students.
 SECTION 43. Section 29.0822, Education Code, is amended by
 amending Subsections (a), (c), and (d) and adding Subsection (e) to
 read as follows:
 (a) Notwithstanding Section 25.081 or 25.082, a school
 district may apply to the commissioner to provide a flexible school
 day program for students [in grades nine through 12] who:
 (1) have dropped out of school or are at risk of
 dropping out of school as defined by Section 29.081; [or]
 (2) attend a campus that is implementing an innovative
 redesign of the campus or an early college high school under a plan
 approved by the commissioner; or
 (3)  as a result of attendance requirements under
 Section 25.092, will be denied credit for one or more classes in
 which the students have been enrolled.
 (c) Except in the case of a course designed for a student
 described by Subsection (a)(3), a [A] course offered in a program
 under this section must provide for at least the same number of
 instructional hours as required for a course offered in a program
 that meets the required minimum number of instructional days under
 Section 25.081 and the required length of school day under Section
 25.082.
 (d) The commissioner may adopt rules for the administration
 of this section, including rules establishing application
 requirements. The commissioner shall calculate average daily
 attendance for students served under this section. The
 commissioner shall allow accumulations of hours of instruction for
 students whose schedule would not otherwise allow full state
 funding. Funding under this subsection shall be determined based
 on the number of instructional days in the school district calendar
 and a seven-hour school day, but attendance may be cumulated over a
 school year, including any summer or vacation session. The
 attendance of students who accumulate less than the number of
 attendance hours required under this subsection shall be
 proportionately reduced for funding purposes. The commissioner
 may:
 (1) set maximum funding amounts for an individual
 course under this section; and
 (2)  limit funding for the attendance of a student
 described by Subsection (a)(3) in a course under this section to
 funding only for the attendance necessary for the student to earn
 class credit that, as a result of attendance requirements under
 Section 25.092, the student would not otherwise be able to receive
 without retaking the class.
 (e)  A student described by Subsection (a)(3) may enroll in a
 course in a program under this section offered during the school
 year or during the period in which school is recessed for the summer
 to enable the student to earn class credit that, as a result of
 attendance requirements under Section 25.092, the student would not
 otherwise be able to receive without retaking the class.
 SECTION 44. Section 29.085, Education Code, is amended by
 adding Subsection (e) to read as follows:
 (e)  From funds appropriated for the purpose, the
 commissioner shall distribute funds for programs under this
 section. In distributing those funds, the commissioner shall give
 preference to school districts that received funds for a program
 under this section for the preceding school year and then to the
 districts that have the highest concentration of students who are
 pregnant or who are parents. To receive funds for a program under
 this section, a school district must apply to the commissioner. A
 program established under this section is required only in school
 districts in which the program is financed by funds distributed
 under this subsection and any other funds available for the
 program.
 SECTION 45. Section 29.097(g), Education Code, is amended
 to read as follows:
 (g) For purposes of Subsection (f)(2), a school district is
 encouraged to use funds allocated under Section 42.160
 [42.2516(b)(3)].
 SECTION 46. Section 29.098(h), Education Code, is amended
 to read as follows:
 (h) For purposes of Subsection (g)(2), a school district is
 encouraged to use funds allocated under Section 42.160
 [42.2516(b)(3)].
 SECTION 47. Section 29.918(a), Education Code, is amended
 to read as follows:
 (a) Notwithstanding Section [39.114 or] 42.152 or 42.160, a
 school district or open-enrollment charter school with a high
 dropout rate, as determined by the commissioner, must submit a plan
 to the commissioner describing the manner in which the district or
 charter school intends to use the compensatory education allotment
 under Section 42.152 and the high school allotment under Section
 42.160 [42.2516(b)(3)] for developing and implementing
 research-based strategies for dropout prevention. The district or
 charter school shall submit the plan not later than December 1 of
 each school year preceding the school year in which the district or
 charter school will receive the compensatory education allotment or
 high school allotment to which the plan applies.
 SECTION 48. Section 29.919(e), Education Code, is amended
 to read as follows:
 (e) As a condition of receiving a state grant, a campus must
 contribute additional funding for activities provided at the campus
 through the program, in an amount equal to at least $100 each school
 year for each student in an eligible grade level served through the
 program. The additional funding required by this subsection may
 consist of local funds, private funds, or state funds other than
 grant funds provided under this section. For program activities
 provided at the high school level, the high school allotment
 provided under Section 42.160 [42.2516(b)(3)] may be used to meet
 the additional funding requirement prescribed by this subsection.
 SECTION 49. Section 33.002(a), Education Code, is amended
 to read as follows:
 (a) From funds appropriated for the purpose or other funds
 that may be used for the purpose, the commissioner shall distribute
 funds for programs under this subchapter. In distributing those
 funds, the commissioner shall give preference to a school district
 that received funds under this subsection for the preceding school
 year and then to the districts that have the highest concentration
 of students at risk of dropping out of school, as described by
 Section 29.081.  To receive funds for the program, a school district
 must apply to the commissioner. For each school year that a school
 district receives funds under this subsection, the district shall
 allocate an amount of local funds for school guidance and
 counseling programs that is equal to or greater than the amount of
 local funds that the school district allocated for that purpose
 during the preceding school year. This section applies only to a
 school district that receives funds as provided by this subsection
 [Section 42.152(i)].
 SECTION 50. Sections 39.024(c) and (d), Education Code, are
 amended to read as follows:
 (c) Using funds appropriated for purposes of this
 subsection, the [The] agency shall develop study guides for the
 assessment instruments administered under Sections 39.023(a) and
 (c). To assist parents in providing assistance during the period
 that school is recessed for summer, each school district shall
 distribute the study guides to parents of students who do not
 perform satisfactorily on one or more parts of an assessment
 instrument administered under this subchapter.
 (d) Using funds appropriated for purposes of this
 subsection, the [The] agency shall develop and make available
 teacher training materials and other teacher training resources to
 assist teachers in enabling students of limited English proficiency
 to meet state performance expectations. The teacher training
 resources shall be designed to support intensive, individualized,
 and accelerated instructional programs developed by school
 districts for students of limited English proficiency.
 SECTION 51. Section 39.031, Education Code, is amended to
 read as follows:
 Sec. 39.031. COST. [(a)] The cost of preparing,
 administering, or grading the assessment instruments and [shall be
 paid from the funds allotted under Section 42.152, and each
 district shall bear the cost in the same manner described for a
 reduction in allotments under Section 42.253. If a district does
 not receive an allotment under Section 42.152, the commissioner
 shall subtract the cost from the district's other foundation school
 fund allotments.
 [(b) The cost of] releasing the question and answer keys
 under Section 39.023(e) shall be paid from amounts appropriated to
 the agency.
 SECTION 52. The heading to Section 39.114, Education Code,
 is amended to read as follows:
 Sec. 39.114. USE OF HIGH SCHOOL ALLOTMENT.
 SECTION 53. Sections 39.114(a) and (b), Education Code, are
 amended to read as follows:
 (a) Except as provided by Subsection (b), a school district
 or campus must use funds allocated under Section 42.160
 [42.2516(b)(3)] to:
 (1) implement or administer a college readiness
 program that provides academic support and instruction to prepare
 underachieving students for entrance into an institution of higher
 education;
 (2) implement or administer a program that encourages
 students to pursue advanced academic opportunities, including
 early college high school programs and dual credit, advanced
 placement, and international baccalaureate courses;
 (3) implement or administer a program that provides
 opportunities for students to take academically rigorous course
 work, including four years of mathematics and four years of science
 at the high school level;
 (4) implement or administer a program, including
 online course support and professional development, that aligns the
 curriculum for grades six through 12 with postsecondary curriculum
 and expectations; or
 (5) implement or administer other high school
 completion and success initiatives in grades six through 12
 approved by the commissioner.
 (b) A school district may use funds allocated under Section
 42.160 [42.2516(b)(3)] on any instructional program in grades six
 through 12 other than an athletic program if:
 (1) the district is recognized as exceptional by the
 commissioner under the academic accountability indicator adopted
 under Section 39.051(b)(13); and
 (2) the district's completion rates for grades nine
 through 12 meet or exceed completion rate standards required by the
 commissioner to achieve a rating of exemplary under Section 39.072.
 SECTION 54. Section 41.001, Education Code, is amended to
 read as follows:
 Sec. 41.001. DEFINITIONS. In this chapter:
 (1) "Effective tax rate" has the meaning assigned by
 Section 42.010.
 (2) "Equalized wealth level" means the wealth per
 student provided by Section 41.002.
 (3) [(2)] "Wealth per student" means the taxable value
 of property, as determined under Subchapter M, Chapter 403,
 Government Code, divided by the number of students in weighted
 average daily attendance.
 (4) [(3)] "Weighted average daily attendance" has the
 meaning assigned by Section 42.302.
 SECTION 55. Subchapter A, Chapter 41, Education Code, is
 amended by adding Sections 41.0011 and 41.0012 to read as follows:
 Sec. 41.0011.  REFERENCES TO TAXABLE VALUE OF DISTRICT
 PROPERTY. A reference in this chapter to the taxable value of
 property in a district, as determined under Subchapter M, Chapter
 403, Government Code, refers to the value for the current year
 unless otherwise specified.
 Sec. 41.0012.  MODIFICATION FOR DISTRICTS WITH SPECIAL LAW
 TAXING AUTHORITY. (a) This section applies only to a school
 district that imposed a maintenance and operations tax for the 2005
 tax year at a rate greater than $1.50 per $100 of taxable value, as
 permitted by special law.
 (b)  For any district to which this section applies, the
 commissioner shall implement any provision of this chapter that
 refers to a maintenance and operations tax rate equal to the lesser
 of $1 or a district's effective rate less six cents, or that makes a
 substantially similar reference, as if the provision referred to a
 rate equal to the lesser of:
 (1)  the rate equal to the product of the state
 compression percentage multiplied by the maintenance and
 operations tax rate adopted by the district for the 2005 tax year;
 or
 (2)  a district's effective maintenance and operations
 tax rate less six cents.
 SECTION 56. Section 41.002(a), Education Code, is amended
 to read as follows:
 (a) A school district may not have a wealth per student that
 exceeds:
 (1) the wealth per student that generates the amount
 of maintenance and operations tax revenue per weighted student
 available to a district described by Section 42.101(b) [at the 88th
 percentile in wealth per student], for the district's maintenance
 and operations tax effort equal to or less than an effective tax
 rate of the lesser of $1.00 or the rate that is six cents less than
 the district's effective maintenance and operations tax rate [the
 rate equal to the product of the state compression percentage, as
 determined under Section 42.2516, multiplied by the maintenance and
 operations tax rate adopted by the district for the 2005 tax year];
 or
 (2) the wealth per student that generates the amount
 of maintenance and operations tax revenue per weighted student per
 cent of tax effort available to a district under Section 42.302 for
 each cent of a district's tax rate other than the last six cents of
 that rate [the Austin Independent School District, as determined by
 the commissioner in cooperation with the Legislative Budget Board],
 for [the first six cents by which] the district's maintenance and
 operations tax effort that [rate] exceeds the tax effort described
 by Subdivision (1) [rate equal to the product of the state
 compression percentage, as determined under Section 42.2516,
 multiplied by the maintenance and operations tax rate adopted by
 the district for the 2005 tax year, subject to Section 41.093(b-1);
 or
 [(3)     $319,500, for the district's maintenance and
 operations tax effort that exceeds the first six cents by which the
 district's maintenance and operations tax effort exceeds the rate
 equal to the product of the state compression percentage, as
 determined under Section 42.2516, multiplied by the maintenance and
 operations tax rate adopted by the district for the 2005 tax year].
 SECTION 57. Section 41.002(e), Education Code, is amended
 to read as follows:
 (e) Notwithstanding Subsection (a), [and except as provided
 by Subsection (g),] in accordance with a determination of the
 commissioner, the wealth per student that a school district may
 have after exercising an option under Section 41.003(2) or (3) may
 not be less than the amount needed to maintain state and local
 revenue in an amount equal to state and local revenue per weighted
 student for maintenance and operation of the district for the
 1992-1993 school year less the district's current year distribution
 per weighted student from the available school fund, other than
 amounts distributed under Chapter 31, if the district imposes an
 effective tax rate for maintenance and operation of the district
 equal to the greater of the district's current tax rate or $1.50 on
 the $100 valuation of taxable property.
 SECTION 58. Subchapter A, Chapter 41, Education Code, is
 amended by adding Section 41.0032 to read as follows:
 Sec. 41.0032.  TOLLING OF ACTION TO ACHIEVE EQUALIZED WEALTH
 LEVEL. (a) Notwithstanding any other provision of this chapter, if
 a school district would otherwise be required by this chapter to
 take action to achieve the equalized wealth level for the first time
 for the 2009-2010 or a later school year, the district is not
 required to take that action until the following school year.
 (b)  For purposes of this section, a district is not required
 to take action to achieve the equalized wealth level until the cost
 to the district to purchase attendance credits under Subchapter D
 exceeds the amount to which the district is entitled under Section
 42.2516.
 (c)  The commissioner may adopt rules implementing this
 section as necessary to provide for a district described by this
 section a one-year tolling of the deadlines specified in this
 chapter.
 SECTION 59. Section 41.093(b-1), Education Code, is amended
 to read as follows:
 (b-1) If the guaranteed level of state and local funds per
 weighted student per cent of tax effort under Section 42.302(g)
 [42.302(a-1)(2)] for which state funds are appropriated for a
 school year is an amount at least equal to the amount of revenue per
 weighted student per cent of tax effort available to the Austin
 Independent School District, as determined by the commissioner in
 cooperation with the Legislative Budget Board, the commissioner, in
 computing the amounts described by Subsections (a)(1) and (2) and
 determining the cost of an attendance credit, shall exclude
 maintenance and operations tax revenue resulting from the last
 [first] six cents of [by which] a district's effective maintenance
 and operations tax rate, provided that the district adopts a
 maintenance and operations tax rate for that school year at a rate
 at least equal to the greater of the rate adopted by the district
 for the 2008-2009 school year or the rate equal to the product of
 the state compression percentage multiplied by the maintenance and
 operations tax rate adopted by the district for the 2005 tax year.
 If the district adopts a maintenance and operations tax at a rate
 lower than the greater of those rates, the commissioner shall
 exclude maintenance and operations tax revenue resulting from the
 first six cents by which the district's effective maintenance and
 operations tax rate exceeds the rate equal to the product of the
 state compression percentage[, as determined under Section
 42.2516,] multiplied by the maintenance and operations tax rate
 adopted by the district for the 2005 tax year.
 SECTION 60. Section 41.121, Education Code, is amended to
 read as follows:
 Sec. 41.121. AGREEMENT. The board of trustees of a district
 with a wealth per student that exceeds the equalized wealth level
 may execute an agreement to educate the students of another
 district in a number that, when the weighted average daily
 attendance of the students served is added to the weighted average
 daily attendance of the contracting district, is sufficient, in
 combination with any other actions taken under this chapter, to
 reduce the district's wealth per student to a level that is equal to
 or less than the equalized wealth level. The agreement is not
 effective unless the commissioner certifies that the transfer of
 weighted average daily attendance will not result in any of the
 contracting districts' wealth per student being greater than the
 equalized wealth level and that the agreement requires an
 expenditure per student in weighted average daily attendance that
 is at least equal to the amount per student in weighted average
 daily attendance required under Section 41.093[, unless it is
 determined by the commissioner that a quality educational program
 can be delivered at a lesser amount. The commissioner may approve a
 special financial arrangement between districts if that
 arrangement serves the best educational interests of the state].
 SECTION 61. Subchapter A, Chapter 42, Education Code, is
 amended by adding Sections 42.009, 42.010, and 42.011 to read as
 follows:
 Sec. 42.009.  REFERENCES TO TAXABLE VALUE OF DISTRICT
 PROPERTY. A reference in this chapter to the taxable value of
 property in a district, as determined under Subchapter M, Chapter
 403, Government Code, refers to the value for the current year.
 Sec. 42.010.  EFFECTIVE TAX RATE. For purposes of this
 chapter, a school district's effective tax rate means the rate
 determined by dividing the total amount of taxes collected by the
 district for the applicable school year less any amounts paid into a
 tax increment fund under Chapter 311, Tax Code, by the quotient of
 the district's taxable value of property, as determined under
 Subchapter M, Chapter 403, Government Code, divided by 100.
 Sec. 42.011.  MODIFICATION FOR DISTRICTS WITH SPECIAL LAW
 TAXING AUTHORITY. (a) This section applies only to a school
 district that imposed a maintenance and operations tax for the 2005
 tax year at a rate greater than $1.50 per $100 of taxable value, as
 permitted by special law.
 (b)  For any district to which this section applies, the
 commissioner shall implement any provision of this chapter that
 refers to a maintenance and operations tax rate equal to the lesser
 of $1 or a district's effective rate less six cents, or that makes a
 substantially similar reference, as if the provision referred to a
 rate equal to the lesser of:
 (1)  the rate equal to the product of the state
 compression percentage multiplied by the maintenance and
 operations tax rate adopted by the district for the 2005 tax year;
 or
 (2)  a district's effective maintenance and operations
 tax rate less six cents.
 SECTION 62. Section 42.101, Education Code, is amended to
 read as follows:
 Sec. 42.101. BASIC ALLOTMENT. (a) For each student in
 average daily attendance, not including the time students spend
 each day in special education programs in an instructional
 arrangement other than mainstream or career and technology
 education programs, for which an additional allotment is made under
 Subchapter C, a district is entitled to an allotment in an amount
 equal to the product of the amount per student per cent of tax
 effort available to a district described by Subsection (b) [at the
 percentile in wealth per student specified by Section
 42.302(a-1)(1)], multiplied by the lesser of:
 (1)  the number of cents that is six cents less than the
 number of cents in the district's effective maintenance and
 operations tax rate; or
 (2) 100 [86. A greater amount for any school year may
 be provided by appropriation].
 (b)  For purposes of Subsection (a), the commissioner shall
 determine the amount per cent of tax effort available to a district
 with a taxable value of property equal to the product of the
 statewide average taxable value of property per weighted student
 multiplied by 0.0001723, or a higher value as specified in the
 General Appropriations Act.
 SECTION 63. Section 42.106, Education Code, is amended to
 read as follows:
 Sec. 42.106. TUITION ALLOTMENT [ADJUSTED PROPERTY VALUE]
 FOR DISTRICTS NOT OFFERING ALL GRADE LEVELS. A [For purposes of
 this chapter, the taxable value of property of a] school district
 that contracts for students residing in the district to be educated
 in another district under Section 25.039(a) is entitled to receive
 an allotment equal to [adjusted by applying the formula:
 [ADPV = DPV - (TN/.015)
 [where:
 ["ADPV" is the district's adjusted taxable value of property;
 ["DPV" is the taxable value of property in the district for
 the preceding tax year determined under Subchapter M, Chapter 403,
 Government Code; and
 ["TN" is] the total amount of tuition required to be paid by
 the district under Section 25.039 [for the school year for which the
 adjustment is made], not to exceed the amount specified by
 commissioner rule under Section 25.039(b).
 SECTION 64. Section 42.152(c), Education Code, is amended
 to read as follows:
 (c) Funds allocated under this section shall be used to fund
 supplemental programs and services designed to eliminate any
 disparity in performance on assessment instruments administered
 under Subchapter B, Chapter 39, or disparity in the rates of high
 school completion between students at risk of dropping out of
 school, as defined by Section 29.081, and all other students.
 Specifically, the funds, other than an indirect cost allotment
 established under State Board of Education rule, which may not
 exceed 45 [15] percent, may be used to meet the costs of providing a
 compensatory, intensive, or accelerated instruction program under
 Section 29.081 or an alternative education program established
 under Section 37.008 or to support a program eligible under Title I
 of the Elementary and Secondary Education Act of 1965, as provided
 by Pub. L. No. 103-382 and its subsequent amendments, and by federal
 regulations implementing that Act, at a campus at which at least 40
 percent of the students are educationally disadvantaged. In
 meeting the costs of providing a compensatory, intensive, or
 accelerated instruction program under Section 29.081, a district's
 compensatory education allotment shall be used for costs
 supplementary to the regular education program, such as costs for
 program and student evaluation, instructional materials and
 equipment and other supplies required for quality instruction,
 supplemental staff expenses, salary for teachers of at-risk
 students, smaller class size, and individualized instruction. A
 home-rule school district or an open-enrollment charter school must
 use funds allocated under Subsection (a) for a purpose authorized
 in this subsection but is not otherwise subject to Subchapter C,
 Chapter 29. Notwithstanding any other provisions of this section:
 (1) to ensure that a sufficient amount of the funds
 allotted under this section are available to supplement
 instructional programs and services, no more than 18 percent of the
 funds allotted under this section may be used to fund disciplinary
 alternative education programs established under Section 37.008;
 (2) the commissioner may waive the limitations of
 Subdivision (1) upon an annual petition, by a district's board and a
 district's site-based decision making committee, presenting the
 reason for the need to spend supplemental compensatory education
 funds on disciplinary alternative education programs under Section
 37.008, provided that:
 (A) the district in its petition reports the
 number of students in each grade level, by demographic subgroup,
 not making satisfactory progress under the state's assessment
 system; and
 (B) the commissioner makes the waiver request
 information available annually to the public on the agency's
 website; and
 (3) for purposes of this subsection, a program
 specifically designed to serve students at risk of dropping out of
 school, as defined by Section 29.081, is considered to be a program
 supplemental to the regular education program, and a district may
 use its compensatory education allotment for such a program.
 SECTION 65. Subchapter C, Chapter 42, Education Code, is
 amended by adding Section 42.1541 to read as follows:
 Sec. 42.1541.  INDIRECT COST ALLOTMENTS. (a) The State
 Board of Education shall by rule increase the indirect cost
 allotments established under Sections 42.151(h), 42.152(c),
 42.153(b), and 42.154(a-1) and (c) and in effect for the 2008-2009
 school year as necessary to reflect the increased percentage of
 total maintenance and operations funding represented by the basic
 allotment under Section 42.101 as a result of amendment of that
 section by H.B. No. 3646, Acts of the 81st Legislature, Regular
 Session, 2009.
 (b)  The board shall take the action required by Subsection
 (a) not later than the date that permits the increased indirect cost
 allotments to apply beginning with the 2009-2010 school year.
 (c) This section expires September 1, 2010.
 SECTION 66. Section 42.152, Education Code, is amended by
 adding Subsections (s), (s-1), (s-2), (s-3), (s-4), and (s-5) to
 read as follows:
 (s)  In addition to the allotment provided under Subsection
 (a), a school district is entitled to an annual allotment equal to
 $650:
 (1)  for each student in average daily attendance who
 has a parent or guardian who is serving on active duty in a combat
 zone as a member of the armed forces of the United States; and
 (2) for each student in average daily attendance who:
 (A)  has a parent or guardian serving on active
 duty as a member of the armed forces of the United States; and
 (B)  has transferred to a campus in the district
 during the school year as a result of a change in residence because
 of an action taken under the Defense Base Closure and Realignment
 Act of 1990 (10 U.S.C. Section 2687).
 (s-1)  Notwithstanding any other provision of this section,
 a school district may use funds allotted to the district under
 Subsection (s) only to provide supplemental programs and services
 described by Subsection (c) or Subsection (f) for students
 described by Subsection (s) who are enrolled in the district.
 (s-2)  The amount appropriated for allotments under
 Subsection (s) may not exceed $9.9 million in a school year. If the
 total amount of allotments to which districts are entitled under
 Subsection (s) for a school year exceeds the amount appropriated
 for allotments under that subsection, the commissioner shall reduce
 each district's allotment under that subsection proportionately.
 (s-3)  Notwithstanding any other provision of this chapter,
 payments for allotments under Subsection (s) are made as
 adjustments under Section 42.253(i). If the commissioner
 determines that the amount appropriated for purposes of the
 Foundation School Program exceeds the amount to which school
 districts are entitled under this chapter, the commissioner shall
 fund the adjustment for the allotments under Subsection (s) from
 the excess funds.
 (s-4)  If the commissioner determines that the amount by
 which the funds appropriated for purposes of the Foundation School
 Program exceeds the amount to which school districts are entitled
 under this chapter is not sufficient to provide for the allotments
 under Subsection (s) as limited by Subsection (s-1), the
 commissioner shall reduce the number by which the statewide average
 taxable value of property per weighted student is multiplied for
 purposes of Section 42.101(b) by the amount necessary to provide
 the remaining funds. The commissioner shall include amount of the
 reduction in the adjustments under Section 42.253(i) in the next
 school year.
 (s-5)  Subsections (s), (s-1), (s-2), (s-3), (s-4), and this
 subsection expire September 1, 2013.
 SECTION 67. Subchapter C, Chapter 42, Education Code, is
 amended by adding Section 42.160 to read as follows:
 Sec. 42.160.  HIGH SCHOOL ALLOTMENT.  (a)  A school district
 is entitled to an annual allotment in an amount determined by the
 commissioner under Subsection (a-1) for each student in weighted
 average daily attendance in grades 9 through 12 in the district.
 For purposes of this subsection, the number of students in weighted
 average daily attendance is calculated by multiplying the number of
 students in average daily attendance in grades 9 through 12 in the
 district by the ratio for the district of the number of students in
 weighted average daily attendance to the number of students in
 average daily attendance.
 (a-1)  The commissioner shall determine the amount of the
 allotment provided under Subsection (a) so that the total state
 cost of funding the allotment equals the total state cost of funding
 the allotment that would have resulted if the allotment were
 provided in the amount of $275 for each student in average daily
 attendance in grades 9 through 12 in the district.
 (b)  A school district that is required to take action under
 Chapter 41 to reduce its wealth per student to the equalized wealth
 level is entitled to a credit, in the amount of the allotment to
 which the district is entitled under this section, against the
 total amount required under Section 41.093 for the district to
 purchase attendance credits. A school district that is otherwise
 ineligible for state aid under this chapter is entitled to receive
 allotments under this section.
 SECTION 68. Subchapter E, Chapter 42, Education Code, is
 amended by adding Section 42.25151 to read as follows:
 Sec. 42.25151.  ADJUSTMENT FOR SUPPLEMENTAL PAYMENTS
 ASSOCIATED WITH AGREEMENTS UNDER TEXAS ECONOMIC DEVELOPMENT ACT.
 (a) In this section, "supplemental payment" means a payment or
 other benefit, other than a revenue protection payment authorized
 by Section 313.027(f)(1), Tax Code, provided in connection with an
 agreement between a property owner and a school district under
 Chapter 313, Tax Code, by or on behalf of the property owner to:
 (1) the district; or
 (2)  a foundation or other entity created to benefit
 the district or the district's students.
 (b)  Notwithstanding Section 42.2516, the commissioner shall
 for any school year, subject to Subsection (b-1):
 (1)  reduce the amounts due to a school district under
 this chapter by an amount equal to the value of any supplemental
 payment received during that school year by the district or a
 foundation or other entity created to benefit the district or the
 district's students; or
 (2)  increase the amounts necessary for a school
 district to comply with the requirements of Chapter 41 by an amount
 equal to the value of any supplemental payments received during
 that school year by the district or a foundation or other entity
 created to benefit the district or the district's students.
 (b-1)  Each school year, a school district is entitled to
 retain a total benefit from supplemental payments not to exceed the
 amounts authorized in Sections 313.027(i) and (j), Tax Code.
 (c) A school district shall:
 (1)  report each supplemental payment through the
 Public Education Information Management System (PEIMS); and
 (2)  clearly identify each supplemental payment in the
 district's adopted budget and in the annual report required by
 Section 44.007.
 (d)  The commissioner, in consultation with the comptroller,
 as appropriate, may adopt rules necessary to implement this
 section.
 (e)  This section does not apply to supplemental payments
 made in connection with an agreement entered into before September
 1, 2009.
 SECTION 69. Section 42.2516, Education Code, is amended by
 amending Subsections (a), (a-1), (b), (b-1), (b-2), (c), (e), (f),
 (f-1), and (g) and adding Subsections (a-2), (b-3), (b-4), (e-1),
 (h-1), and (m) to read as follows:
 (a) In this section, "state compression percentage" means
 the percentage, as determined by the commissioner in consultation
 with the Legislative Budget Board, of a school district's adopted
 maintenance and operations tax rate for the 2005 tax year that
 serves as the basis for state funding for tax rate reduction under
 this section. The commissioner, in consultation with the
 Legislative Budget Board, shall determine the state compression
 percentage for each school year based on the percentage by which a
 district is able to reduce the district's maintenance and
 operations tax rate for that year, as compared to the district's
 adopted maintenance and operations tax rate for the 2005 tax year,
 as a result of state funds appropriated for distribution under this
 section for that year from the property tax relief fund established
 under Section 403.109, Government Code, or from another funding
 source available for school district property tax relief.
 (a-1) For the state fiscal year ending August 31, 2009, the
 state compression percentage is 66.67 percent. For each subsequent
 state fiscal year, the state compression percentage is the lesser
 of:
 (1)  the percentage determined in accordance with
 Subsection (a); or
 (2)  the state compression percentage for the preceding
 state fiscal year.
 (a-2)  Not later than March 1 of each year, the commissioner
 shall:
 (1)  inform school districts of the state compression
 percentage for the following school year; and
 (2)  post the state compression percentage for the
 following school year on the agency's website. [Subsection (a)
 applies beginning with the state fiscal year ending August 31,
 2009.    For the state fiscal year ending August 31, 2007, the state
 compression percentage is 88.67 percent.    For the state fiscal year
 ending August 31, 2008, the state compression percentage is 66.67
 percent.    This subsection expires September 1, 2009.]
 (b) Subject to Subsections (b-1), (b-2), (b-3), (b-4),
 (f-1), (g), and (h-1) [(h)] but notwithstanding any other provision
 of this title, a school district is entitled to state revenue
 necessary to provide the district with [the sum of]:
 (1) the amount of state revenue necessary to maintain
 state and local revenue per student in weighted average daily
 attendance in the amount at least equal to [the greater of:
 [(A)] the amount of state and local revenue per
 student in weighted average daily attendance for the maintenance
 and operations of the district available to the district for the
 2008-2009 [2005-2006] school year for the district's maintenance
 and operations tax rate equal to the product of the state
 compression percentage multiplied by the maintenance and
 operations tax rate adopted by the district for the 2005 tax year;
 and
 (2)  an amount equal to the difference, if any, between
 the amount of maintenance and operations revenue the district is
 required to pay into the tax increment fund for a reinvestment zone
 under Section 311.013(n),  Tax Code, meeting the criteria under
 Section 403.302(d)(4), Government Code, in the current tax year and
 the amount of maintenance and operations revenue collected by the
 district in the reinvestment zone at the district's compressed tax
 rate[;
 [(B)     the amount of state and local revenue per
 student in weighted average daily attendance for the maintenance
 and operations of the district to which the district would have been
 entitled for the 2006-2007 school year under this chapter, as it
 existed on January 1, 2006, or, if the district would have been
 subject to Chapter 41, as that chapter existed on January 1, 2006,
 the amount to which the district would have been entitled under that
 chapter, based on the funding elements in effect for the 2005-2006
 school year, if the district imposed a maintenance and operations
 tax at the rate adopted by the district for the 2005 tax year; or
 [(C)     the amount of state and local revenue per
 student in weighted average daily attendance for the maintenance
 and operations of the district to which the district would have been
 entitled for the 2006-2007 school year under this chapter, as it
 existed on January 1, 2006, or, if the district would have been
 subject to Chapter 41, as that chapter existed on January 1, 2006,
 the amount to which the district would have been entitled under that
 chapter, based on the funding elements in effect for the 2005-2006
 school year, if the district imposed a maintenance and operations
 tax at the rate equal to the rate described by Section 26.08(i) or
 (k)(1), Tax Code, as applicable, for the 2006 tax year;
 [(2)     an amount equal to the product of $2,500
 multiplied by the number of classroom teachers, full-time
 librarians, full-time counselors certified under Subchapter B,
 Chapter 21, and full-time school nurses employed by the district
 and entitled to a minimum salary under Section 21.402; and
 [(3)     an amount equal to the product of $275 multiplied
 by the number of students in average daily attendance in grades nine
 through 12 in the district].
 (b-1) The amount determined for a school district under
 Subsection (b) is increased or reduced as follows:
 (1) if for any school year the district is entitled to
 a greater allotment under Section 42.158 than the allotment to
 which the district was entitled under that section for the
 2008-2009 school year [on which the district's entitlement under
 Subsection (b) is based], the district's entitlement under
 Subsection (b) is increased by an amount equal to the difference
 between the amount to which the district is entitled under Section
 42.158 for that school year and the amount to which the district was
 entitled under that section for the 2008-2009 school year[:
 [(A)     the 2005-2006 school year, if the amount
 determined for the district under Subsection (b) is determined
 under Subsection (b)(1)(A); or
 [(B)     the 2006-2007 school year, if the amount
 determined for the district under Subsection (b) is determined
 under Subsection (b)(1)(B) or (C)]; and
 (2) if for any school year the district is not entitled
 to an allotment under Section 42.158 or is entitled to a lesser
 allotment under that section than the allotment to which the
 district was entitled under that section for the 2008-2009 school
 year [on which the district's entitlement under Subsection (b) is
 based], the district's entitlement under Subsection (b) is reduced
 by an amount equal to the difference between the amount to which the
 district was entitled under Section 42.158 for the 2008-2009
 [2005-2006 or 2006-2007] school year[, as appropriate based on
 whether the district's entitlement under Subsection (b) is
 determined under Subsection (b)(1)(A), (B), or (C),] and the amount
 to which the district is entitled under Section 42.158 for the
 current school year.
 (b-2) The amount determined for a school district under
 Subsection (b) is increased or reduced as follows:
 (1) if for any school year the district is entitled to
 a greater allotment under Section 42.155 or greater additional
 state aid under Section 42.2515 than the allotment or additional
 state aid to which the district was entitled under Section 42.155 or
 42.2515, as applicable, for the 2008-2009 school year [on which the
 district's entitlement under Subsection (b) is based], the
 district's entitlement under Subsection (b) is increased by an
 amount equal to the difference between the amount to which the
 district is entitled under Section 42.155 or 42.2515, as
 applicable, for that school year and the amount to which the
 district was entitled under the applicable section[, as applicable]
 for the 2008-2009 school year[:
 [(A)     the 2005-2006 school year, if the amount
 determined for the district under Subsection (b) is determined
 under Subsection (b)(1)(A); or
 [(B)     the 2006-2007 school year, if the amount
 determined for the district under Subsection (b) is determined
 under Subsection (b)(1)(B) or (C)]; and
 (2) if for any school year the district is not entitled
 to an allotment under Section 42.155 or additional state aid under
 Section 42.2515 or is entitled to a lesser allotment or less
 additional state aid under the applicable section than the
 allotment or additional state aid to which the district was
 entitled under the applicable section for the 2008-2009 school year
 [on which the district's entitlement under Subsection (b) is
 based], the district's entitlement under Subsection (b) is reduced
 by an amount equal to the difference between the amount to which the
 district was entitled under Section 42.155 or 42.2515, as
 applicable, for the 2008-2009 [2005-2006 or 2006-2007] school
 year[, as appropriate based on whether the district's entitlement
 under Subsection (b) is determined under Subsection (b)(1)(A), (B),
 or (C),] and the amount to which the district is entitled under the
 applicable section for the current school year.
 (b-3)  The amount determined for a school district under
 Subsection (b) is increased or reduced to reflect changes in the
 amount of funds to which the district is entitled under Section
 42.160, in comparison to the amount of funds to which the district
 was entitled during the 2008-2009 school year under the high school
 allotment provided by Subsection (b)(3), as it existed on January
 1, 2009.
 (b-4)  The amount determined under Subsection (b) for a
 school district that paid tuition under Section 25.039 during the
 2008-2009 school year in accordance with a contract authorized by
 that section is reduced by the amount of tuition paid during that
 school year.
 (c) In determining the amount to which a district is
 entitled under Subsection (b) [(b)(1)], the commissioner shall
 include:
 (1) any amounts received by the district during the
 2008-2009 school year under [described by] Rider 86 [69], page
 III-23 [III-19], Chapter 1428 (H.B. 1) [1369], Acts of the 80th
 [79th] Legislature, Regular Session, 2007 [2005] (the General
 Appropriations Act);
 (2) [for a school district that received additional
 revenue for the 2005-2006 school year as a result of an agreement
 under Subchapter E, Chapter 41:
 [(A)     if the amount of state revenue to which the
 district is entitled under Subsection (b) is computed based on the
 amount described by Subsection (b)(1)(A), the amount of that
 additional revenue retained by the district for the 2005-2006
 school year, which is the amount by which the total maintenance and
 operations revenue available to the district for that school year
 exceeded the total maintenance and operations revenue that would
 have been available to the district for that school year if the
 district had not entered into the agreement, less any amount the
 district paid to another entity under the agreement; or
 [(B)     if the amount of state revenue to which the
 district is entitled under Subsection (b) is computed based on the
 amount described by Subsection (b)(1)(B) or (C), the amount of the
 additional revenue that would have been retained by the district
 for the 2006-2007 school year if the district had entered into the
 agreement on the same terms as under the agreement for the 2005-2006
 school year, which is the amount by which the total maintenance and
 operations revenue that would have been available to the district
 for the 2006-2007 school year if the district had entered into the
 agreement exceeds the total maintenance and operations revenue that
 would have been available to the district for that school year if
 the district had not entered into the agreement and had imposed a
 maintenance and operations tax at the rate of $1.50 on the $100
 valuation of taxable property, less any amount the district would
 have paid to another entity under the agreement;
 [(3)] any amount necessary to reflect an adjustment
 made by the commissioner under Section 42.005;
 (3) [(4)     any amount necessary to reflect an adjustment
 made by the commissioner under Section 42.2521; and
 [(5)] any amount necessary to reflect an adjustment
 made by the commissioner under Section 42.2531;
 (4) any amount necessary to maintain:
 (A)  the professional staff salary allotment
 provided by Subsection (b)(2) and the high school allotment
 provided by Subsection (b)(3), as those subsections existed on
 January 1, 2009;
 (B)  the staff salary allotment provided by
 Section 42.2513, as that section existed on January 1, 2009;
 (C)  funding provided by Section 42.2514, as that
 section existed on January 1, 2009, for school district employees
 who participate in a group health coverage plan provided by or
 through the district;
 (D)  the $110 per weighted student allocation
 authorized in Rider 82, page III-23, Chapter 1330 (H.B. 1), Acts of
 the 78th Legislature, Regular Session, 2003 (the General
 Appropriations Act); and
 (E)  any other amounts to which the district was
 entitled under this subchapter, as it existed on January 1, 2009;
 and
 (5)  any amount to which the district is entitled under
 Section 42.106.
 (e) The amount of revenue to which a school district is
 entitled because of the technology allotment under Section 32.005
 is not included in making a determination under Subsection (b)
 [(b)(1)].
 (e-1)  The amount of revenue to which a school district is
 entitled under Section 42.2518 is in addition to the amount of
 revenue to which the district is entitled under Subsection (b).
 (f) For purposes of determining the amount of revenue to
 which a school district is entitled under this section, the
 commissioner shall use the average tax collection rate for the
 district for the 2006, 2007, and 2008 [2003, 2004, and 2005] tax
 years.
 (f-1) The commissioner shall, in accordance with rules
 adopted by the commissioner, adjust the amount of a school
 district's local revenue derived from maintenance and operations
 tax collections, as calculated for purposes of determining the
 amount of state revenue to which the district is entitled under this
 section, if the district, for the 2010 [2007] tax year or a
 subsequent tax year:
 (1) adopts an exemption under Section 11.13(n), Tax
 Code, that was not in effect for the 2009 [2005 or 2006] tax year, or
 eliminates an exemption under Section 11.13(n), Tax Code, that was
 in effect for the 2009 [2005 or 2006] tax year;
 (2) adopts an exemption under Section 11.13(n), Tax
 Code, at a greater or lesser percentage than the percentage in
 effect for the district for the 2009 [2005 or 2006] tax year;
 (3) grants an exemption under an agreement authorized
 by Chapter 312, Tax Code, that was not in effect for the 2009 [2005
 or 2006] tax year, or ceases to grant an exemption authorized by
 that chapter that was in effect for the 2009 [2005 or 2006] tax
 year; or
 (4) agrees to deposit taxes into a tax increment fund
 created under Chapter 311, Tax Code, under a reinvestment zone
 financing plan that was not in effect for the 2009 [2005 or 2006]
 tax year, or ceases depositing taxes into a tax increment fund
 created under that chapter under a reinvestment zone financing plan
 that was in effect for the 2009 [2005 or 2006] tax year.
 (g) If a school district adopts a maintenance and operations
 tax rate that is below the rate equal to the sum of six cents and the
 product of the state compression percentage multiplied by the
 maintenance and operations tax rate adopted by the district for the
 2005 tax year, the commissioner shall reduce the district's
 entitlement under this section in proportion to the amount by which
 the rate equal to the adopted rate less six cents is less than the
 rate equal to the product of the state compression percentage
 multiplied by the rate adopted by the district for the 2005 tax
 year.
 (h-1)  Notwithstanding any other provision of this title, a
 school district is entitled to receive a minimum increase as
 determined under this subsection for each student in weighted
 average daily attendance as a result of changes made by H.B. No.
 3646, Acts of the 81st Legislature, Regular Session, 2009, to
 Chapter 41 and this chapter over the amount to which the district
 would have been entitled under those chapters, as they existed on
 January 1, 2009, at the maintenance and operations tax rate equal to
 the rate adopted by the district for the 2008-2009 school year, as
 determined by the commissioner. The commissioner shall determine
 the amount of the minimum increase under this subsection by
 multiplying the number of students in weighted average daily
 attendance in the state by $100, subtracting the amount necessary
 to provide the additional state aid under Section 42.2518 to which
 school districts are entitled, and dividing the remainder by the
 number of students in weighted average daily attendance in the
 state.  As necessary to provide that minimum increase, the
 commissioner shall adjust the amount of state aid provided to a
 school district under this chapter or adjust the number of
 attendance credits that a school district is required to purchase
 under Section 41.093.
 (m)  For purposes of Subsections (b) and (h-1), the number of
 students in weighted average daily attendance in a school district
 is computed by dividing the sum of the school district's allotments
 under Subchapters B and C, less any allotment to the district for
 transportation, any allotment under Section 42.158 or 42.160, and
 50 percent of the adjustment under Section 42.102, by the basic
 allotment for the applicable year.
 SECTION 70. Subchapter E, Chapter 42, Education Code, is
 amended by adding Section 42.2518 to read as follows:
 Sec. 42.2518.  ADDITIONAL STATE AID FOR EXTENSION OF
 PROFESSIONAL STAFF SALARY SCHEDULE.  (a) A school district,
 including a school district that is otherwise ineligible for state
 aid under this chapter, is entitled to state aid in an amount, as
 determined by the commissioner, necessary to compensate the school
 district for additional salary costs the district incurs because of
 the increased number of years covered by the minimum salary
 schedule for certain professional staff made by H.B. No. 3646, Acts
 of the 81st Legislature, Regular Session, 2009.
 (b)  A district may use state aid received under this section
 only to pay salary costs incurred because of the increased number of
 years covered by the minimum salary schedule.
 (c)  A determination by the commissioner under this section
 is final and may not be appealed.
 (d)  The commissioner may adopt rules to implement this
 section.
 SECTION 71. Section 42.252(a), Education Code, is amended
 to read as follows:
 (a) Subject to Section 42.302(g), each [Each] school
 district's share of the Foundation School Program is determined by
 the following formula:
 LFA = TR X DPV
 where:
 "LFA" is the school district's local share;
 "TR" is a tax rate which for each hundred dollars of valuation
 is an effective tax rate equal to the lesser of:
 (1) $1; or
 (2)  the rate that is six cents less than the district's
 effective maintenance and operations tax rate [$0.86]; and
 "DPV" is the taxable value of property in the school district
 for the [preceding] tax year determined under Subchapter M, Chapter
 403, Government Code.
 SECTION 72. Section 42.2522(c), Education Code, is amended
 to read as follows:
 (c) In the first year of a state fiscal biennium, before
 providing funding as provided by Subsection (a)(2), the
 commissioner shall ensure that sufficient appropriated funds for
 purposes of the Foundation School Program are available for the
 second year of the biennium[, including funds to be used for
 purposes of Section 42.2521].
 SECTION 73. Section 42.253, Education Code, is amended by
 adding Subsection (c-1) to read as follows:
 (c-1)  The amounts to be paid under Section 42.2516(b)(4)
 shall be paid at the same time as other state revenue is paid to the
 district.  Payments shall be based on amounts paid under Section
 42.2516(b)(4) for the preceding year.  Any deficiency shall be paid
 to the district at the same time the final amount to be paid to the
 district is determined, and any overpayment shall be deducted from
 the payments the district would otherwise receive in the following
 year.
 SECTION 74. Section 42.260(a), Education Code, is amended
 to read as follows:
 (a) In this section, "participating charter school" means
 an open-enrollment charter school that participates in the uniform
 group coverage program established under Chapter 1579, Insurance
 Code [has the meaning assigned by Section 42.2514].
 SECTION 75. Section 42.261(a), Education Code, is amended
 to read as follows:
 (a) Funds appropriated by the legislature for a tax year for
 the purpose of reducing a school district's maintenance and
 operations tax rate and providing state aid under Section 42.2516:
 (1) are not excess funds for purposes of Section
 42.2517;
 (2) are not available for purposes of Section [42.2521
 or] 42.2522;
 (3) may not be used for purposes of Chapter 46; and
 (4) may not be provided by the commissioner to a school
 district for a purpose other than reduction of the district's
 maintenance and operations tax rate.
 SECTION 76. Section 42.302, Education Code, is amended by
 amending Subsections (a), (a-2), and (b) and adding Subsections (g)
 and (g-1) to read as follows:
 (a) Each school district is guaranteed a specified amount
 per weighted student in state and local funds for each cent of tax
 effort over that required for the district's local fund assignment,
 subject to Subsection (g), up to the maximum level specified in this
 subchapter. The amount of state support, subject only to the
 maximum amount under Section 42.303, is determined by the formula:
 GYA = (GL X WADA X DTR X 100) - LR
 where:
 "GYA" is the guaranteed yield amount of state funds to be
 allocated to the district;
 "GL" is the dollar amount guaranteed level of state and local
 funds per weighted student per cent of tax effort, which is $31.95
 or an amount described by Subsection (g) or (g-1), as applicable,
 [(a-1)] or a greater amount for any year provided by appropriation;
 "WADA" is the number of students in weighted average daily
 attendance, which is calculated by dividing the sum of the school
 district's allotments under Subchapters B and C, less any allotment
 to the district for transportation and[,] any allotment under
 Section 42.158 or 42.160, [and 50 percent of the adjustment under
 Section 42.102,] by the basic allotment for the applicable year;
 "DTR" is the district enrichment tax rate of the school
 district, which is determined by subtracting the amounts specified
 by Subsection (b) from the total amount of maintenance and
 operations taxes collected by the school district for the
 applicable school year and dividing the difference by the quotient
 of the district's taxable value of property as determined under
 Subchapter M, Chapter 403, Government Code, [or, if applicable,
 under Section 42.2521,] divided by 100; and
 "LR" is the local revenue, which is determined by multiplying
 "DTR" by the quotient of the district's taxable value of property as
 determined under Subchapter M, Chapter 403, Government Code, [or,
 if applicable, under Section 42.2521,] divided by 100.
 (a-2) The limitation on district enrichment tax rate
 ("DTR") under Section 42.303 does not apply to the last six cents of
 the district's effective maintenance and operations tax effort
 [described by Subsection (a-1)(2)].
 (b) In computing the district enrichment tax rate of a
 school district, the total amount of maintenance and operations
 taxes collected by the school district does not include the amount
 of:
 (1) the district's local fund assignment under Section
 42.252; [or]
 (2) taxes paid into a tax increment fund under Chapter
 311, Tax Code; or
 (3)  revenue resulting from the last six cents of the
 district's effective maintenance and operations tax rate.
 (g)  This subsection applies to the last six cents of a
 district's effective tax rate for maintenance and operations,
 regardless of whether any of those cents would otherwise be
 considered as part of the district's local share under Section
 42.252, provided that the district adopts a maintenance and
 operations tax rate at a rate at least equal to the greater of the
 rate adopted by the district for the 2008-2009 school year or the
 rate equal to the product of the state compression percentage
 multiplied by the maintenance and operations tax rate adopted by
 the district for the 2005 tax year. For each cent of tax effort to
 which this subsection applies, a district is entitled to a
 guaranteed level of state and local funds per weighted student
 equal to the greater of the amount of district tax revenue per
 weighted student per cent of tax effort available to the Austin
 Independent School District, as determined by the commissioner in
 cooperation with the Legislative Budget Board, or the amount of
 district tax revenue per weighted student per cent of tax effort
 used for purposes of this subsection in the preceding school year.
 If a district adopts a maintenance and operations tax rate at a rate
 lower than the greater of the rates described above, the district
 is entitled to the guaranteed level described by this subsection
 for the first six cents by which the district's effective
 maintenance and operations tax rate exceeds the rate equal to the
 product of the state compression percentage multiplied by the
 maintenance and operations tax rate adopted by the district for the
 2005 tax year.
 (g-1)  Subsection (g) applies beginning with the 2010-2011
 school year. For the 2009-2010 school year, a school district is
 entitled for each cent of tax effort described by Subsection (g) to
 a guaranteed level of state and local funds per weighted student
 equal to the amount of district tax revenue per weighted student per
 cent of tax effort available to the Austin Independent School
 District, as determined by the commissioner in cooperation with the
 Legislative Budget Board. This subsection expires September 1,
 2010.
 SECTION 77. Section 42.303, Education Code, is amended to
 read as follows:
 Sec. 42.303. LIMITATION ON ENRICHMENT TAX RATE. The
 district enrichment tax rate ("DTR") under Section 42.302 may not
 exceed $0.17 [the amount] per $100 of valuation [by which the
 maximum rate permitted under Section 45.003 exceeds the rate of
 $0.86, or a greater amount for any year provided by appropriation].
 SECTION 78. Section 44.004, Education Code, is amended by
 amending Subsection (h) and adding Subsection (j) to read as
 follows:
 (h) Notwithstanding any other provision of this section, a
 school district with a fiscal year beginning July 1 may use the
 certified estimate of the taxable value of district property
 required by Section 26.01(e) [26.01(d)], Tax Code, in preparing the
 notice required by this section if the district does not receive on
 or before June 7 the certified appraisal roll for the district
 required by Section 26.01(a), Tax Code.
 (j)  Notwithstanding Subsections (g), (h), and (i), a school
 district may adopt a budget after the district adopts a tax rate for
 the tax year in which the fiscal year covered by the budget begins
 if the district elects to adopt a tax rate before receiving the
 certified appraisal roll for the district as provided by Section
 26.05(g). If a school district elects to adopt a tax rate before
 adopting a budget, the district must publish notice and hold a
 meeting for the purpose of discussing the proposed tax rate as
 provided by this section. Following adoption of the tax rate, the
 district must publish notice and hold another public meeting before
 the district may adopt a budget. The comptroller shall prescribe
 the language and format to be used in the notices. The school
 district may use the certified estimate of taxable value in
 preparing a notice under this subsection.
 SECTION 79. Section 45.001(a), Education Code, is amended
 to read as follows:
 (a) The governing board of an independent school district,
 including the city council or commission that has jurisdiction over
 a municipally controlled independent school district, the
 governing board of a rural high school district, and the
 commissioners court of a county, on behalf of each common school
 district under its jurisdiction, may:
 (1) issue bonds for:
 (A) the construction, acquisition, and equipment
 of school buildings in the district;
 (B) the acquisition of property or the
 refinancing of property financed under a contract entered under
 Subchapter A, Chapter 271, Local Government Code, regardless of
 whether payment obligations under the contract are due in the
 current year or a future year;
 (C) the purchase of the necessary sites for
 school buildings; and
 (D) the purchase of new school buses; and
 (2) may levy, pledge, assess, and collect annual ad
 valorem taxes sufficient to pay the principal of and interest on the
 bonds as or before the principal and interest become due, subject to
 Section 45.003.
 SECTION 80. Section 46.003(a), Education Code, is amended
 to read as follows:
 (a) For each year, except as provided by Sections 46.005 and
 46.006, a school district is guaranteed a specified amount per
 student in state and local funds for each cent of tax effort, up to
 the maximum rate under Subsection (b), to pay the principal of and
 interest on eligible bonds issued to construct, acquire, renovate,
 or improve an instructional facility. The amount of state support
 is determined by the formula:
 FYA = (FYL X ADA X BTR X 100) - (BTR X (DPV/100))
 where:
 "FYA" is the guaranteed facilities yield amount of state
 funds allocated to the district for the year;
 "FYL" is the dollar amount guaranteed level of state and
 local funds per student per cent of tax effort, which is $35 or a
 greater amount for any year provided by appropriation;
 "ADA" is the greater of the number of students in average
 daily attendance, as determined under Section 42.005, in the
 district or 400;
 "BTR" is the district's bond tax rate for the current year,
 which is determined by dividing the amount budgeted by the district
 for payment of eligible bonds by the quotient of the district's
 taxable value of property for the current tax year as determined
 under Subchapter M, Chapter 403, Government Code, [or, if
 applicable, Section 42.2521,] divided by 100; and
 "DPV" is the district's taxable value of property for the
 current tax year as determined under Subchapter M, Chapter 403,
 Government Code[, or, if applicable, Section 42.2521].
 SECTION 81. Section 46.006(g), Education Code, is amended
 to read as follows:
 (g) In this section, "wealth per student" means a school
 district's taxable value of property for the current tax year as
 determined under Subchapter M, Chapter 403, Government Code, [or,
 if applicable, Section 42.2521,] divided by the district's average
 daily attendance as determined under Section 42.005.
 SECTION 82. Section 46.032(a), Education Code, is amended
 to read as follows:
 (a) Each school district is guaranteed a specified amount
 per student in state and local funds for each cent of tax effort to
 pay the principal of and interest on eligible bonds. The amount of
 state support, subject only to the maximum amount under Section
 46.034, is determined by the formula:
 EDA = (EDGL X ADA X EDTR X 100) - (EDTR X (DPV/100))
 where:
 "EDA" is the amount of state funds to be allocated to the
 district for assistance with existing debt;
 "EDGL" is the dollar amount guaranteed level of state and
 local funds per student per cent of tax effort, which is $35 or a
 greater amount for any year provided by appropriation;
 "ADA" is the number of students in average daily attendance,
 as determined under Section 42.005, in the district;
 "EDTR" is the existing debt tax rate of the district, which is
 determined by dividing the amount budgeted by the district for
 payment of eligible bonds by the quotient of the district's taxable
 value of property for the current tax year as determined under
 Subchapter M, Chapter 403, Government Code, [or, if applicable,
 under Section 42.2521,] divided by 100; and
 "DPV" is the district's taxable value of property for the
 current tax year as determined under Subchapter M, Chapter 403,
 Government Code[, or, if applicable, under Section 42.2521].
 SECTION 83. Section 46.033, Education Code, is amended to
 read as follows:
 Sec. 46.033. ELIGIBLE BONDS. Bonds, including bonds
 issued under Section 45.006, are eligible to be paid with state and
 local funds under this subchapter if:
 (1) the district made payments on the bonds during the
 final [2006-2007] school year of the preceding state fiscal
 biennium or taxes levied to pay the principal of and interest on the
 bonds were included in the district's audited debt service
 collections for that school year; and
 (2) the district does not receive state assistance
 under Subchapter A for payment of the principal and interest on the
 bonds.
 SECTION 84. Section 46.034(c), Education Code, is amended
 to read as follows:
 (c) If the amount required to pay the principal of and
 interest on eligible bonds in a school year is less than the amount
 of payments made by the district on the bonds during the final
 [2006-2007] school year of the preceding state fiscal biennium or
 the district's audited debt service collections for that school
 year, the district may not receive aid in excess of the amount that,
 when added to the district's local revenue for the school year,
 equals the amount required to pay the principal of and interest on
 the bonds.
 SECTION 85. Section 3.005, Election Code, is amended by
 amending Subsection (a) and adding Subsection (d) to read as
 follows:
 (a) Except as provided by Subsections [Subsection] (c) and
 (d), an election ordered by an authority of a political subdivision
 shall be ordered not later than the 62nd day before election day.
 (d)  An election under Section 26.08, Tax Code, to ratify a
 tax rate adopted by the governing body of a school district under
 Section 26.05(g) of that code shall be ordered not later than the
 30th day before election day.
 SECTION 86. Section 4.008, Election Code, is amended to
 read as follows:
 Sec. 4.008. NOTICE TO COUNTY CLERK. (a)  Except as provided
 by Subsection (b), the [The] governing body of a political
 subdivision, other than a county, that orders an election shall
 deliver notice of the election to the county clerk of each county in
 which the political subdivision is located not later than the 60th
 day before election day.
 (b)  The governing body of a school district that orders an
 election under Section 26.08, Tax Code, to ratify an ad valorem tax
 rate adopted by the governing body under Section 26.05(g) of that
 code shall deliver notice of the election to the county clerk of
 each county in which the school district is located not later than
 the 30th day before election day.
 SECTION 87. Sections 403.302(d), (g), (i), and (j),
 Government Code, are amended to read as follows:
 (d) For the purposes of this section, "taxable value" means
 the market value of all taxable property less:
 (1) the total dollar amount of any residence homestead
 exemptions lawfully granted under Section 11.13(b) or (c), Tax
 Code, in the year that is the subject of the study for each school
 district;
 (2) one-half of the total dollar amount of any
 residence homestead exemptions granted under Section 11.13(n), Tax
 Code, in the year that is the subject of the study for each school
 district;
 (3) the total dollar amount of any exemptions granted
 before May 31, 1993, within a reinvestment zone under agreements
 authorized by Chapter 312, Tax Code;
 (4) subject to Subsection (e), the total dollar amount
 of any captured appraised value of property that:
 (A) is within a reinvestment zone created on or
 before May 31, 1999, or is proposed to be included within the
 boundaries of a reinvestment zone as the boundaries of the zone and
 the proposed portion of tax increment paid into the tax increment
 fund by a school district are described in a written notification
 provided by the municipality or the board of directors of the zone
 to the governing bodies of the other taxing units in the manner
 provided by Section 311.003(e), Tax Code, before May 31, 1999, and
 within the boundaries of the zone as those boundaries existed on
 September 1, 1999, including subsequent improvements to the
 property regardless of when made;
 (B) generates taxes paid into a tax increment
 fund created under Chapter 311, Tax Code, under a reinvestment zone
 financing plan approved under Section 311.011(d), Tax Code, on or
 before September 1, 1999; and
 (C) is eligible for tax increment financing under
 Chapter 311, Tax Code;
 (5) [for a school district for which a deduction from
 taxable value is made under Subdivision (4), an amount equal to the
 taxable value required to generate revenue when taxed at the school
 district's current tax rate in an amount that, when added to the
 taxes of the district paid into a tax increment fund as described by
 Subdivision (4)(B), is equal to the total amount of taxes the
 district would have paid into the tax increment fund if the district
 levied taxes at the rate the district levied in 2005;
 [(6)] the total dollar amount of any captured
 appraised value of property that:
 (A) is within a reinvestment zone:
 (i) created on or before December 31, 2008,
 by a municipality with a population of less than 18,000; and
 (ii) the project plan for which includes
 the alteration, remodeling, repair, or reconstruction of a
 structure that is included on the National Register of Historic
 Places and requires that a portion of the tax increment of the zone
 be used for the improvement or construction of related facilities
 or for affordable housing;
 (B) generates school district taxes that are paid
 into a tax increment fund created under Chapter 311, Tax Code; and
 (C) is eligible for tax increment financing under
 Chapter 311, Tax Code;
 (6) [(7)] the total dollar amount of any exemptions
 granted under Section 11.251 or 11.253, Tax Code;
 (7) [(8)] the difference between the comptroller's
 estimate of the market value and the productivity value of land that
 qualifies for appraisal on the basis of its productive capacity,
 except that the productivity value estimated by the comptroller may
 not exceed the fair market value of the land;
 (8) [(9)] the portion of the appraised value of
 residence homesteads of individuals who receive a tax limitation
 under Section 11.26, Tax Code, on which school district taxes are
 not imposed in the year that is the subject of the study, calculated
 as if the residence homesteads were appraised at the full value
 required by law;
 (9) [(10)] a portion of the market value of property
 not otherwise fully taxable by the district at market value because
 of:
 (A) action required by statute or the
 constitution of this state that, if the tax rate adopted by the
 district is applied to it, produces an amount equal to the
 difference between the tax that the district would have imposed on
 the property if the property were fully taxable at market value and
 the tax that the district is actually authorized to impose on the
 property, if this subsection does not otherwise require that
 portion to be deducted; or
 (B) action taken by the district under Subchapter
 B or C, Chapter 313, Tax Code;
 (10) [(11)] the market value of all tangible personal
 property, other than manufactured homes, owned by a family or
 individual and not held or used for the production of income;
 (11) [(12)] the appraised value of property the
 collection of delinquent taxes on which is deferred under Section
 33.06, Tax Code;
 (12) [(13)] the portion of the appraised value of
 property the collection of delinquent taxes on which is deferred
 under Section 33.065, Tax Code; and
 (13) [(14)] the amount by which the market value of a
 residence homestead to which Section 23.23, Tax Code, applies
 exceeds the appraised value of that property as calculated under
 that section.
 (g) The comptroller shall provide to the commissioner of
 education [publish] preliminary taxable value estimates
 [findings], listing values by district, before July 1 of the year of
 the study, and shall certify preliminary findings, listing values
 by district, by February 1 of the year following the year of the
 study. Preliminary findings shall be delivered to each school
 district and shall be certified to the commissioner of education. A
 preliminary taxable value estimate provided under this subsection
 may not be appealed, but may be revised by the comptroller at any
 time before preliminary findings are certified.
 (i) If the comptroller determines in the annual study that
 the market value of property in a school district as determined by
 the appraisal district that appraises property for the school
 district, less the total of the amounts and values listed in
 Subsection (d) as determined by that appraisal district, is valid,
 the comptroller, in determining the taxable value of property in
 the school district under Subsection (d), shall for purposes of
 Subsection (d)(13) [(d)(14)] subtract from the market value as
 determined by the appraisal district of residence homesteads to
 which Section 23.23, Tax Code, applies the amount by which that
 amount exceeds the appraised value of those properties as
 calculated by the appraisal district under Section 23.23, Tax
 Code. If the comptroller determines in the annual study that the
 market value of property in a school district as determined by the
 appraisal district that appraises property for the school district,
 less the total of the amounts and values listed in Subsection (d) as
 determined by that appraisal district, is not valid, the
 comptroller, in determining the taxable value of property in the
 school district under Subsection (d), shall for purposes of
 Subsection (d)(13) [(d)(14)] subtract from the market value as
 estimated by the comptroller of residence homesteads to which
 Section 23.23, Tax Code, applies the amount by which that amount
 exceeds the appraised value of those properties as calculated by
 the appraisal district under Section 23.23, Tax Code.
 (j) For purposes of Chapter 42 [Section 42.2511], Education
 Code, the comptroller shall certify to the commissioner of
 education:
 (1) a final value for each school district computed on
 a residence homestead exemption under Section 1-b(c), Article VIII,
 Texas Constitution, of $5,000;
 (2) a final value for each school district computed
 on:
 (A) a residence homestead exemption under
 Section 1-b(c), Article VIII, Texas Constitution, of $15,000; and
 (B) the effect of the additional limitation on
 tax increases under Section 1-b(d), Article VIII, Texas
 Constitution, as proposed by H.J.R. No. 4, 75th Legislature,
 Regular Session, 1997; and
 (3) a final value for each school district computed on
 the effect of the reduction of the limitation on tax increases to
 reflect any reduction in the school district tax rate as provided by
 Section 11.26(a-1), (a-2), or (a-3), Tax Code, as applicable.
 SECTION 88. Section 822.201(b), Government Code, is amended
 to read as follows:
 (b) "Salary and wages" as used in Subsection (a) means:
 (1) normal periodic payments of money for service the
 right to which accrues on a regular basis in proportion to the
 service performed;
 (2) amounts by which the member's salary is reduced
 under a salary reduction agreement authorized by Chapter 610;
 (3) amounts that would otherwise qualify as salary and
 wages under Subdivision (1) but are not received directly by the
 member pursuant to a good faith, voluntary written salary reduction
 agreement in order to finance payments to a deferred compensation
 or tax sheltered annuity program specifically authorized by state
 law or to finance benefit options under a cafeteria plan qualifying
 under Section 125 of the Internal Revenue Code of 1986, if:
 (A) the program or benefit options are made
 available to all employees of the employer; and
 (B) the benefit options in the cafeteria plan are
 limited to one or more options that provide deferred compensation,
 group health and disability insurance, group term life insurance,
 dependent care assistance programs, or group legal services plans;
 (4) performance pay awarded to an employee by a school
 district as part of a total compensation plan approved by the board
 of trustees of the district and meeting the requirements of
 Subsection (e);
 (5) the benefit replacement pay a person earns under
 Subchapter H, Chapter 659, except as provided by Subsection (c);
 (6) stipends paid to teachers in accordance with
 Section 21.410, 21.411, 21.412, or 21.413, Education Code;
 (7) amounts by which the member's salary is reduced or
 that are deducted from the member's salary as authorized by
 Subchapter J, Chapter 659;
 (8) a merit salary increase made under Section 51.962,
 Education Code;
 (9) amounts received under the relevant parts of the
 [awards for student achievement program under Subchapter N, Chapter
 21, Education Code, the] educator excellence awards program under
 Subchapter O, Chapter 21, Education Code, or a mentoring program
 under Section 21.458, Education Code, that authorize [authorized]
 compensation for service; and
 (10) salary amounts designated as health care
 supplementation by an employee under Subchapter D, Chapter 22,
 Education Code.
 SECTION 89. Sections 825.405(a) and (b), Government Code,
 are amended to read as follows:
 (a) For members entitled to the minimum salary for certain
 school personnel under Section 21.402, Education Code, and for
 members who would have been entitled to the minimum salary for
 certain school personnel under former Section 16.056, Education
 Code, as that section existed on January 1, 1995, the employing
 district shall pay the state's contribution on the portion of the
 member's salary that exceeds the statutory minimum salary [or
 former statutory minimum, as applicable].
 (b) For purposes of this section:
 (1) [,] the statutory minimum salaryfor certain
 school personnel under Section 21.402, Education Code, is the
 salary provided by that section [Section 21.402 or the former
 Sections 16.056 and 16.058, Education Code,] multiplied by the cost
 of education adjustment applicable under Section 42.102, Education
 Code, to the district in which the member is employed; and
 (2)  the statutory minimum salary for members who would
 have been entitled to the minimum salary for certain school
 personnel under former Section 16.056, Education Code, as that
 section existed on January 1, 1995, is a minimum salary computed in
 the same manner as the minimum salary for certain school personnel
 under Section 21.402, Education Code, multiplied by the cost of
 education adjustment applicable under Section 42.102, Education
 Code, to the district in which the member is employed.
 SECTION 90. Section 1579.251(a), Insurance Code, is amended
 to read as follows:
 (a) The state shall assist employees of participating
 school districts and charter schools in the purchase of group
 health coverage under this chapter by providing for each covered
 employee the amount of $900 each state fiscal year or a greater
 amount as provided by the General Appropriations Act. The state
 contribution shall be distributed through the school finance
 formulas under Chapters 41 and 42, Education Code, and used by
 school districts and charter schools as provided by Section
 [Sections 42.2514 and] 42.260, Education Code.
 SECTION 91. Section 1581.053(b), Insurance Code, is amended
 to read as follows:
 (b) Notwithstanding Subsection (a), amounts a district or
 school is required to use to pay contributions under a group health
 coverage plan for district or school employees under Section
 [42.2514 or] 42.260, Education Code, other than amounts described
 by Section 42.260(c)(2)(B), are not used in computing whether the
 district or school complies with Section 1581.052.
 SECTION 92. Section 26.01(e), Tax Code, is amended to read
 as follows:
 (e) Not later than June 7, the chief appraiser shall prepare
 and certify to the comptroller an estimate of the taxable value of
 property in each school district participating in the appraisal
 district and the total market value of that property. Except as
 provided by Subsection (f), not later than April 30 [by June 7], the
 chief appraiser shall also prepare and certify to the assessor for
 each county, municipality, and school district participating in the
 appraisal district an estimate of the taxable value of property in
 that taxing unit. The chief appraiser shall assist each county,
 municipality, and school district in determining values of property
 in that taxing unit for the taxing unit's budgetary purposes.
 SECTION 93. Section 26.05, Tax Code, is amended by adding
 Subsection (g) to read as follows:
 (g)  Notwithstanding Subsection (a), the governing body of a
 school district that elects to adopt a tax rate before the adoption
 of a budget for the fiscal year that begins in the current tax year
 may adopt a tax rate for the current tax year before receipt of the
 certified appraisal roll for the school district if the chief
 appraiser of the appraisal district in which the school district
 participates has certified to the assessor for the school district
 an estimate of the taxable value of property in the school district
 as provided by Section 26.01(e). If a school district adopts a tax
 rate under this subsection, the effective tax rate and the rollback
 tax rate of the district shall be calculated based on the certified
 estimate of taxable value.
 SECTION 94. Section 26.08, Tax Code, is amended by adding
 Subsection (p) to read as follows:
 (p)  Notwithstanding Subsections (n) and (o), a school
 district is not required to obtain the approval at an election under
 this section of the district's adopted tax rate if the rate does not
 exceed the sum of:
 (1)  the maintenance and operations tax rate of the
 district for the most recent tax year of the period that consists of
 the 2007 and 2008 tax years in which the district's tax rate was
 approved at an election under this section; and
 (2) the district's current debt rate.
 SECTION 95. Section 26.08, Tax Code, is amended by adding
 Subsection (q) to read as follows:
 (q)  Notwithstanding Subsections (i), (n), and (o), if for
 the preceding tax year the district adopted a maintenance and
 operations tax rate that was less than the district's effective
 maintenance and operations tax rate for that preceding tax year,
 the rollback tax rate of the district for the current tax year is
 calculated as if the district adopted a maintenance and operations
 tax rate for the preceding tax year that was equal to the district's
 effective maintenance and operations tax rate for that preceding
 tax year.
 SECTION 96. Chapter 26, Tax Code, is amended by adding
 Section 26.083 to read as follows:
 Sec. 26.083.  TEMPORARY AUTHORIZATION TO ADOPT SCHOOL
 DISTRICT TAX RATE THAT EXCEEDS DISTRICT'S ROLLBACK TAX RATE. (a)
 The governing body of a school district in the manner provided by
 law for official action by the governing body may call an election
 to authorize the district to adopt a maintenance and operations tax
 rate not to exceed a specified rate for a specified period.
 (b)  An election under this section must be held on a uniform
 election date. If the governing body of the school district has not
 adopted a tax rate for the current tax year before the date the
 election is held, the election applies to the district's tax rate
 for the current tax year and the following four tax years. If the
 governing body of the school district adopted a tax rate for the
 current tax year before the date the election is held, the election
 applies to the district's tax rate for the following five tax years.
 (c)  The ballot for the election shall be prepared to permit
 voting for or against the proposition: "Authorizing the (name of
 school district) to adopt a tax rate for maintenance and operations
 purposes for (the current tax year and the following four tax years
 or the following five tax years, as applicable) at a rate not to
 exceed $___ per $100 valuation." The ballot proposition must
 include the proposed limit on the school district's maintenance and
 operations tax rate.
 (d)  If a majority of the votes cast in the election favor the
 proposition, the school district, for the current tax year and the
 following four tax years or for the following five tax years, as
 applicable, may adopt a tax rate that does not exceed the sum of the
 rate stated in the ballot proposition and the district's current
 debt rate for the applicable year without being required to hold an
 election under Section 26.08 to ratify the adopted tax rate,
 regardless of whether the adopted tax rate exceeds the district's
 rollback tax rate for that tax year.
 (e)  If the proposition is not approved as provided by
 Subsection (d), Section 26.08 applies to the school district's tax
 rate for the applicable tax years.
 SECTION 97. Section 31.06(a), Tax Code, is amended to read
 as follows:
 (a) Except as provided by Section 31.061, taxes are payable
 only as provided by this section. A [in currency of the United
 States. However, a] collector shall [may] accept United States
 currency or a check or money order in payment of taxes[,] and shall
 [may] accept payment by credit card or electronic funds transfer.
 [A collector and a person may enter into an agreement under which
 the person pays taxes by electronic funds transfer. The agreement
 must:
 [(1) be in writing;
 [(2) be signed by the collector and the person; and
 [(3)     specify the means or format of payment by
 electronic funds transfer.]
 SECTION 98. Section 313.027, Tax Code, is amended by adding
 Subsections (i) and (j) to read as follows:
 (i)  A person and the school district may not enter into an
 agreement under which the person agrees to provide supplemental
 payments to a school district in an amount that exceeds an amount
 equal to $100 per student per year in average daily attendance, as
 defined by Section 42.005, Education Code, or for a period that
 exceeds the period described by Section 313.021(4) or 313.104(2)(B)
 of this code.  This limit does not apply to an amount described by
 Subsection (f)(1) of this section.
 (j)  A local school district is entitled to enter into
 multiple contracts with applicants and is entitled to receive the
 amount per student in average daily attendance as specified in
 Subsection (i) above.
 SECTION 99. (a) The following provisions of the Education
 Code are repealed:
 (1) Subchapter N, Chapter 21;
 (2) Section 21.704(b);
 (3) Section 39.024(e);
 (4) Sections 41.002(b) and (g);
 (5) Section 41.098;
 (6) Section 42.103(e);
 (7) Sections 42.152(e), (f), (g), (h), (i), (j), (k),
 (l), (m), (n), (o), (p), and (u);
 (8) Sections 42.2511, 42.2512, 42.2513, and 42.2514;
 (9) Section 42.2516(h);
 (10) Section 42.2521; and
 (11) Section 42.302(a-1).
 (b) Sections 825.405(h) and (i), Government Code, are
 repealed.
 (c) Subchapter C, Chapter 1581, Insurance Code, is
 repealed.
 (d) Section 2, Chapter 1191 (H.B. 828), Acts of the 80th
 Legislature, Regular Session, 2007, which amended Subsection
 (a-1), Section 42.302, Education Code, is repealed.
 (e) Section 40, Chapter 1504 (H.B. 6), Acts of the 77th
 Legislature, Regular Session, 2001, is repealed.
 SECTION 100. (a) Notwithstanding any other provision of
 this Act, Sections 12.1331 and 21.402(c-1), Education Code, as
 added by this Act, are expressly contingent on a determination by
 the commissioner of education that payment of wage and salary
 increases and associated benefits required by those sections are
 allowable uses of federal funds received by school districts and
 open-enrollment charter schools under the American Recovery and
 Reinvestment Act of 2009 (Pub. L. No. 111-5) and appropriated as
 part of the Foundation School Program. The commissioner may not
 make a determination under this subsection until the state's
 application to spend funds under the American Recovery and
 Reinvestment Act of 2009 has been approved by the United States
 government. The commissioner shall promptly notify school
 districts and open-enrollment charter schools of that
 determination. A determination by the commissioner under this
 subsection is final and may not be appealed.
 (b) A school district or open-enrollment charter school may
 enter into an employment contract or agreement that is contingent
 on a determination of the commissioner of education under
 Subsection (a) of this section.
 (c) The commissioner of education by rule may determine the
 applicable minimum salary schedule for use by school districts
 during the 2010-2011 state fiscal biennium following a
 determination under Subsection (a) of this section. If the
 commissioner determines that federal funds received by school
 districts and open-enrollment charter schools under the American
 Recovery and Reinvestment Act of 2009 may not be used for purposes
 of Sections 12.1331 and 21.402(c-1), Education Code, as added by
 this Act, those amendments have no effect in determining the salary
 required to be paid to an employee of a school district or
 open-enrollment charter school.
 SECTION 101. Section 21.402(c-4), Education Code, as added
 by this Act, does not affect a contract between a school district
 and a person entitled to a minimum salary under Section 21.402,
 Education Code, if the contract:
 (1) was entered into before the effective date of the
 change in law made by this Act; and
 (2) provides for a salary greater than the minimum
 salary to which the person would be entitled under Section
 21.402(c-4), Education Code, as added by this Act.
 SECTION 102. The provisions of Section 42.2516(b)(2),
 Education Code, as amended by this Act, shall be effective for the
 fiscal year that begins September 1, 2006, and any amounts due a
 district shall be paid to the district in the fiscal year that
 begins September 1, 2009, at the time other payments are made to the
 district.
 SECTION 103. Section 44.004, Education Code, Sections 3.005
 and 4.008, Election Code, and Sections 26.01 and 26.05, Tax Code, as
 amended by this Act, apply only to ad valorem taxes imposed for a
 tax year beginning on or after the effective date of this Act.
 SECTION 104. Section 26.083, Tax Code, as added by this Act,
 applies only to the ad valorem tax rate of a school district for a
 tax year beginning on or after the effective date of this Act.
 SECTION 105. (a) Section 26.08(p), Tax Code, as added by
 this Act, applies to the ad valorem tax rate of a school district
 beginning with the 2009 tax year, except as provided by Subsection
 (b) of this section.
 (b) If the governing body of a school district adopted an ad
 valorem tax rate for the school district for the 2009 tax year
 before the effective date of this Act, Section 26.08(p), Tax Code,
 as added by this Act, applies to the ad valorem tax rate of that
 school district beginning with the 2010 tax year, and the law in
 effect when the tax rate was adopted applies to the 2009 tax year
 with respect to that school district.
 SECTION 106. The commissioner of education shall ensure
 that each school district receives, within the amount to which the
 district is entitled under Section 42.2516, Education Code, the
 total amount to which the district is entitled as a result of the
 adjustment provided under Section 42.103(d), Education Code.
 SECTION 107. (a) The change in law made by Section
 26.08(q), Tax Code, as added by this Act, applies to the ad valorem
 tax rate of a school district beginning with the 2009 tax year,
 except as provided by Subsection (b) of this section.
 (b) If the governing body of a school district adopted an ad
 valorem tax rate for the school district for the 2009 tax year
 before the effective date of this Act, the change in law made by
 Section 26.08(q), Tax Code, as added by this Act, applies to the ad
 valorem tax rate of that school district beginning with the 2010 tax
 year, and the law in effect when the tax rate was adopted applies to
 the 2009 tax year with respect to that school district.
 SECTION 108. To the extent of any conflict, this Act
 prevails over another Act of the 81st Legislature, Regular Session,
 2009, relating to nonsubstantive additions to and corrections in
 enacted codes.
 SECTION 109. Except as otherwise provided by this Act, this
 Act takes effect September 1, 2009.

Years Experience 21 22 and over

Salary Factor 1.0217 1.0344

Years Experience 21 22 23 and over

Salary Factor 1.0217 1.0344 1.0471

Years Experience 21 22 23

Salary Factor 1.0217 1.0344 1.0471

Years Experience 24 and over

Salary Factor 1.0598

Years Experience 21 22 23

Salary Factor 1.0217 1.0344 1.0471

Years Experience 24 25 and over

Salary Factor 1.0598 1.0725

Years Experience 21 22 23

Salary Factor 1.0217 1.0344 1.0471

Years Experience 24 25 26 and over

Salary Factor 1.0598 1.0725 1.0852

Years Experience 21 22 23

Salary Factor 1.0217 1.0344 1.0471

Years Experience 24 25 26

Salary Factor 1.0598 1.0725 1.0852

Years Experience 27 and over

Salary Factor 1.0979

Years Experience 21 22 23

Salary Factor 1.0217 1.0344 1.0471

Years Experience 24 25 26

Salary Factor 1.0598 1.0725 1.0852

Years Experience 27 28 and over

Salary Factor 1.0979 1.1106

Years Experience 21 22 23

Salary Factor 1.0217 1.0344 1.0471

Years Experience 24 25 26

Salary Factor 1.0598 1.0725 1.0852

Years Experience 27 28 29 and over

Salary Factor 1.0979 1.1106 1.1233

Years Experience 21 22 23

Salary Factor 1.0217 1.0344 1.0471

Years Experience 24 25 26

Salary Factor 1.0598 1.0725 1.0852

Years Experience 27 28 29

Salary Factor 1.0979 1.1106 1.1233

Years Experience 30 and over

Salary Factor 1.1360

Years Experience 21 22 23

Salary Factor 1.0217 1.0344 1.0471

Years Experience 24 25 26

Salary Factor 1.0598 1.0725 1.0852

Years Experience 27 28 29

Salary Factor 1.0979 1.1106 1.1233

Years Experience 30 31 and over

Salary Factor 1.1360 1.1487

Years Experience 21 22 23

Salary Factor 1.0217 1.0344 1.0471

Years Experience 24 25 26

Salary Factor 1.0598 1.0725 1.0852

Years Experience 27 28 29

Salary Factor 1.0979 1.1106 1.1233

Years Experience 30 31 32 and over

Salary Factor 1.1360 1.1487 1.1614

Years Experience 21 22 23

Salary Factor 1.0217 1.0344 1.0471

Years Experience 24 25 26

Salary Factor 1.0598 1.0725 1.0852

Years Experience 27 28 29

Salary Factor 1.0979 1.1106 1.1233

Years Experience 30 31 32

Salary Factor 1.1360 1.1487 1.1614

Years Experience 33 and over

Salary Factor 1.1741

Years Experience 21 22 23

Salary Factor 1.0217 1.0344 1.0471

Years Experience 24 25 26

Salary Factor 1.0598 1.0725 1.0852

Years Experience 27 28 29

Salary Factor 1.0979 1.1106 1.1233

Years Experience 30 31 32

Salary Factor 1.1360 1.1487 1.1614

Years Experience 33 34 and over

Salary Factor 1.1741 1.1868

Years Experience 21 22 23

Salary Factor 1.0217 1.0344 1.0471

Years Experience 24 25 26

Salary Factor 1.0598 1.0725 1.0852

Years Experience 27 28 29

Salary Factor 1.0979 1.1106 1.1233

Years Experience 30 31 32

Salary Factor 1.1360 1.1487 1.1614

Years Experience 33 34 35 and over

Salary Factor 1.1741 1.1868 1.1995