82R30876 E
By: Ogden S.B. No. 1581
(Aycock)
Substitute the following for S.B. No. 1581: No.
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to state fiscal matters, and certain administrative and
1-3 business matters, related to public and higher education.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 ARTICLE 1. ADMINISTRATIVE MATTERS CONCERNING INSTITUTIONS OF
1-6 HIGHER EDUCATION
1-7 SECTION 1.01. Section 51.003, Education Code, is amended by
1-8 amending Subsection (b) and adding Subsection (f) to read as
1-9 follows:
1-10 (b) The funds shall either be deposited in the depository
1-11 bank or banks or invested as authorized by Chapter 2256, Government
1-12 Code (Public Funds Investment Act). Funds that are to be deposited
1-13 in the depository bank or banks must be deposited within seven days
1-14 from the date of receipt by the institution [collection].
1-15 (f) Notwithstanding any other provision of this section,
1-16 the governing board of each institution may maintain unsecured
1-17 deposits in a foreign bank as necessary to support the
1-18 institution's operations in a foreign country. The foreign bank
1-19 must:
1-20 (1) be licensed and supervised by a central bank;
1-21 (2) be audited annually by an accounting firm that
1-22 follows international financial reporting standards; and
1-23 (3) maintain a capital to total assets ratio that is
1-24 not less than the greater of four percent or the minimum tier 1
2-1 capital to total assets ratio required for depository institutions
2-2 insured by the Federal Deposit Insurance Corporation.
2-3 SECTION 1.02. Subchapter A, Chapter 51, Education Code, is
2-4 amended by amending Section 51.005 and adding Sections 51.010,
2-5 51.011, and 51.012 to read as follows:
2-6 Sec. 51.005. REPORTS. Each institution of higher education
2-7 [(a) True and full accounts shall be kept by the governing board
2-8 and by the employees of the institution of all funds collected from
2-9 all sources and of all sums paid out and the persons to whom and the
2-10 purposes for which the sums are paid. The governing board] shall
2-11 prepare [annually print] a complete annual financial report as
2-12 prescribed by Section 2101.011, Government Code [of all the sums
2-13 collected, all expenditures, and all sums remaining on hand. The
2-14 report shall show the true condition of all funds as of the August
2-15 31 preceding as well as the collections and expenditures for the
2-16 preceding year.
2-17 [(b) Reports under this section must be in a form approved
2-18 jointly by the coordinating board and the comptroller. The
2-19 accounting and classification procedures of each institution must
2-20 be consistent with uniform procedures prescribed for that purpose
2-21 by the coordinating board and the comptroller. The requirements
2-22 imposed by the coordinating board and the comptroller must be
2-23 designed to reduce paperwork and duplicative reports.
2-24 [(c) The governing board shall furnish one copy of the
2-25 report each to the governor, comptroller of public accounts, state
2-26 auditor, Texas Higher Education Coordinating Board, Legislative
2-27 Budget Board, House Appropriations Committee, Senate Finance
3-1 Committee, and Legislative Reference Library. A copy of the report
3-2 shall be submitted to the comptroller by the deadline established
3-3 by the comptroller or the General Appropriations Act as necessary
3-4 to prepare an audited comprehensive financial report. The
3-5 governing board shall retain five copies of the report for
3-6 distribution to legislators or other state officials on request].
3-7 Sec. 51.010. COLLECTION OF DELINQUENT OBLIGATIONS. If
3-8 under the rules adopted by the attorney general under Chapter 2107,
3-9 Government Code, an institution of higher education is not required
3-10 to refer a delinquent obligation for collection to the attorney
3-11 general, the institution is not required to expend resources for
3-12 further collection efforts if, considering the amount, security,
3-13 likelihood of collection, expense, and available resources, the
3-14 institution determines that further collection should not be
3-15 actively pursued.
3-16 Sec. 51.011. DISPOSITION OF SMALL CREDIT BALANCES.
3-17 (a) This section applies to a credit balance of less than $25 held
3-18 by an institution of higher education that is presumed abandoned
3-19 under Chapter 72, Property Code.
3-20 (b) An institution of higher education may maintain an
3-21 unclaimed money fund and transfer to that fund a credit balance to
3-22 which this section applies. A deposit to the unclaimed money fund
3-23 does not affect the ownership of the amount deposited. The
3-24 institution shall:
3-25 (1) adopt procedures for owners to make and receive
3-26 payments of claims against the fund; and
3-27 (2) maintain a database that permits members of the
4-1 public to search for ownership of unclaimed funds.
4-2 (c) The institution shall use the fund to pay the claims of
4-3 persons establishing ownership of amounts transferred to the fund
4-4 and shall hold and account for the unclaimed money fund as
4-5 educational and general funds of the institution. If the fund
4-6 balance is insufficient to pay a valid claim, the institution shall
4-7 pay the claim from the institution's other educational and general
4-8 funds.
4-9 (d) Each fiscal year, after deducting funds sufficient to
4-10 pay anticipated expenses of and claims against the unclaimed money
4-11 fund, the institution shall use the balance of the fund as other
4-12 educational and general funds of the institution.
4-13 (e) In consultation with institutions of higher education,
4-14 the comptroller by rule may establish minimum requirements for
4-15 notice to owners of unclaimed money deposited in the unclaimed
4-16 money fund and for charges for that notice. The rules may not
4-17 provide stricter requirements than the comptroller applies for
4-18 amounts of less than $25 in the custody of the comptroller under
4-19 Chapter 74, Property Code.
4-20 (f) If an institution of higher education maintains an
4-21 unclaimed money fund under this section, Chapter 74, Property Code,
4-22 does not apply to a credit balance to which this section applies.
4-23 Sec. 51.012. PAYMENTS BY ELECTRONIC FUNDS TRANSFER OR
4-24 ELECTRONIC PAY CARD. An institution of higher education may make
4-25 any payment, including a payment of salary or wages, through
4-26 electronic funds transfer or by electronic pay card.
4-27 SECTION 1.03. Section 65.42, Education Code, is amended to
5-1 read as follows:
5-2 Sec. 65.42. DELINQUENT ACCOUNTS; VENUE. A suit by The
5-3 University of Texas System on its own behalf or on behalf of a
5-4 component institution of The University of Texas System to recover
5-5 a delinquent loan, account, or debt owed to The University of Texas
5-6 System or a component institution of The University of Texas System
5-7 must [may] be brought in Travis County.
5-8 SECTION 1.04. Section 1231.001, Government Code, is amended
5-9 by amending Subdivision (2) and adding Subdivision (3) to read as
5-10 follows:
5-11 (2) "State security" means:
5-12 (A) an obligation, including a bond, issued by:
5-13 (i) a state agency;
5-14 (ii) an entity that is expressly created by
5-15 statute and has statewide jurisdiction; or
5-16 (iii) an entity issuing the obligation on
5-17 behalf of this state or on behalf of an entity described by
5-18 Subparagraph (i) or (ii);
5-19 (B) an installment sale or lease-purchase
5-20 obligation that is issued by or on behalf of an entity described by
5-21 Paragraph (A) and that has:
5-22 (i) a stated term of more than five years;
5-23 or
5-24 (ii) an initial principal amount of more
5-25 than $250,000; or
5-26 (C) an obligation, including a bond, that is
5-27 issued under Chapter 53, Education Code, at the request of or for
6-1 the benefit of an institution of higher education [as defined by
6-2 Section 61.003, Education Code,] other than a public junior
6-3 college.
6-4 (3) "Institution of higher education" has the meaning
6-5 assigned by Section 61.003, Education Code.
6-6 SECTION 1.05. Section 1231.041, Government Code, is amended
6-7 to read as follows:
6-8 Sec. 1231.041. APPROVAL OF STATE SECURITY. (a) Except as
6-9 otherwise provided by this section, an [An] entity, including a
6-10 state agency, may not issue a state security unless:
6-11 (1) the board approves the issuance; or
6-12 (2) the security is exempted under law, including a
6-13 board rule adopted under Section 1231.022(2).
6-14 (b) A state security issued by an institution of higher
6-15 education, or issued at the request of or for the benefit of an
6-16 institution of higher education, is not subject to board approval
6-17 unless the general revenue of the state is pledged to the payment of
6-18 the security.
6-19 SECTION 1.06. Section 74.001, Property Code, is amended by
6-20 adding Subsection (c) to read as follows:
6-21 (c) This chapter does not apply to small credit balances
6-22 held by an institution of higher education in an unclaimed money
6-23 fund under Section 51.011, Education Code.
6-24 SECTION 1.07. Section 51.923, Education Code, is amended to
6-25 read as follows:
6-26 Sec. 51.923. QUALIFICATIONS OF CERTAIN BUSINESS ENTITIES TO
6-27 ENTER INTO CONTRACTS WITH AN INSTITUTION OF HIGHER EDUCATION.
7-1 (a) In this section:
7-2 (1) "Business entity" ["Corporation"] means any
7-3 entity recognized by law through which business is conducted,
7-4 including a sole proprietorship, partnership, firm, corporation,
7-5 limited liability company, holding company, joint stock company,
7-6 receivership, or trust [a corporation for profit organized under
7-7 the laws of this state or under laws other than the laws of this
7-8 state].
7-9 (2) "Governing board" has the meaning assigned by
7-10 Section 61.003 [of this code].
7-11 (3) "Institution of higher education" has the meaning
7-12 assigned by Section 61.003 [of this code].
7-13 (4) "Nonprofit corporation" means any organization
7-14 exempt from federal income tax under Section 501 of the Internal
7-15 Revenue Code of 1986 that does not distribute any part of its income
7-16 to any member, director, or officer.
7-17 (b) A nonprofit corporation is not disqualified from
7-18 entering into a contract or other transaction with an institution
7-19 of higher education even though one or more members of the governing
7-20 board of the institution of higher education also serves as a
7-21 member, [or] director, officer, or employee of the nonprofit
7-22 corporation.
7-23 (c) A business entity [corporation] is not disqualified
7-24 from entering into a contract or other transaction with an
7-25 institution of higher education even though one or more members of
7-26 the governing board of the institution of higher education have an
7-27 interest in the business entity, subject to Subsection (d) [also
8-1 serves as a stockholder or director of the corporation provided
8-2 that no member of the governing board owns or has a beneficial
8-3 interest in more than five percent of the corporation's outstanding
8-4 capital stock and further provided that the contract or transaction
8-5 is:
8-6 [(1) an affiliation, licensing, or sponsored research
8-7 agreement; or
8-8 [(2) awarded by competitive bidding or competitive
8-9 sealed proposals].
8-10 (d) An institution of higher education is not prohibited
8-11 from entering into a contract or other transaction with a business
8-12 entity in which a member of the governing board of the institution
8-13 of higher education has an interest if the interest is not a
8-14 substantial interest or, if the interest is a substantial interest,
8-15 the [described in this section if any] board member [having an
8-16 interest described in this section in the contract or transaction]
8-17 discloses that interest in a meeting held in compliance with
8-18 Chapter 551, Government Code, and refrains from voting on the
8-19 contract or transaction requiring board approval. Any such
8-20 contract or transaction requiring board approval must be approved
8-21 by an affirmative majority of the board members voting on the
8-22 contract or transaction.
8-23 (e) For purposes of this section, a member of a governing
8-24 board has a substantial interest in a business entity if:
8-25 (1) the member owns 10 percent or more of the voting
8-26 stock or shares of the business entity or owns either 10 percent or
8-27 more or $15,000 or more of the fair market value of the business
9-1 entity;
9-2 (2) funds received by the member from the business
9-3 entity exceed 10 percent of the member's gross income for the
9-4 previous year;
9-5 (3) the member is an officer of the business entity or
9-6 a member of the governing board of the business entity; or
9-7 (4) an individual related to the member in the first
9-8 degree by consanguinity or affinity, as determined under Chapter
9-9 573, Government Code, has an interest in the business entity as
9-10 described by Subdivision (1), (2), or (3).
9-11 (f) A violation of this section does not render an action of
9-12 the governing board voidable unless the contract or transaction
9-13 that was the subject of the action would not have been approved by
9-14 the governing board without the vote of the member who violated this
9-15 section.
9-16 SECTION 1.08. Section 51.9335, Education Code, is amended
9-17 by amending Subsections (d) and (f) and adding Subsections (g) and
9-18 (h) to read as follows:
9-19 (d) Subtitle D, Title 10, Government Code, and Subchapter B,
9-20 Chapter 2254, Government Code, do not apply to the acquisition of
9-21 goods and services under this section, except that an institution
9-22 of higher education must comply with any provision of those laws, or
9-23 a rule adopted under a provision of those laws, [To the extent of
9-24 any conflict, this section prevails over any other law, including
9-25 Chapters 2155, 2156, 2157, 2158, 2167, and 2170, Government Code,
9-26 except a law or rule] relating to contracting with historically
9-27 underutilized businesses or relating to the procurement of goods
10-1 and services from persons with disabilities. An institution of
10-2 higher education may, but is not required to, acquire goods or
10-3 services as provided by Subtitle D, Title 10 [Chapters 2155, 2156,
10-4 2157, 2158, 2167, and 2170], Government Code.
10-5 (f) This section does not apply to professional services as
10-6 defined by Section 2254.002, Government Code. Professional
10-7 services shall be procured in accordance with Subchapter A, Chapter
10-8 2254, Government Code.
10-9 (g) An institution of higher education may adopt rules and
10-10 procedures for the acquisition of goods or services.
10-11 (h) In any contract for the acquisition of goods and
10-12 services to which an institution of higher education is a party, a
10-13 provision required by applicable law to be included in the contract
10-14 is considered to be a part of the executed contract without regard
10-15 to:
10-16 (1) whether the provision appears on the face of the
10-17 contract; or
10-18 (2) whether the contract includes any provision to the
10-19 contrary.
10-20 SECTION 1.09. Subchapter Z, Chapter 51, Education Code, is
10-21 amended by adding Sections 51.9336 and 51.9337 to read as follows:
10-22 Sec. 51.9336. ELECTRONIC AND DIGITAL SIGNATURES. (a) An
10-23 institution of higher education or university system, as those
10-24 terms are defined by Section 61.003, shall determine whether, and
10-25 the extent to which, the institution or system will send and accept
10-26 electronic or digital signatures to and from other persons and
10-27 otherwise create, generate, communicate, store, process, use, and
11-1 rely on electronic or digital signatures. The institution or
11-2 system may adopt rules and procedures governing the use of
11-3 electronic or digital signatures.
11-4 (b) To the extent of any conflict, this section prevails
11-5 over Chapter 322, Business & Commerce Code, and rules and
11-6 guidelines adopted under that chapter.
11-7 Sec. 51.9337. INTERAGENCY CONTRACTS FOR INFORMATION
11-8 RESOURCE TECHNOLOGIES. (a) In this section, "institution of
11-9 higher education" and "university system" have the meanings
11-10 assigned by Section 61.003.
11-11 (b) Section 2054.119, Government Code, does not apply to an
11-12 interagency contract for information resources technologies
11-13 between two or more institutions of higher education or between an
11-14 institution of higher education or university system and one or
11-15 more state agencies, institutions of higher education, or
11-16 university systems.
11-17 SECTION 1.10. Section 51.966, Education Code, is amended by
11-18 amending Subsection (c) and adding Subsection (d) to read as
11-19 follows:
11-20 (c) Section 612.002(b), Government Code, does not apply to
11-21 an institution of higher education or university system purchasing
11-22 insurance under this section.
11-23 (d) In [As used in] this section, "governing board," [and]
11-24 "institution of higher education," and "university system" have the
11-25 meanings assigned by Section 61.003.
11-26 SECTION 1.11. Subchapter C, Chapter 791, Government Code,
11-27 is amended by adding Section 791.035 to read as follows:
12-1 Sec. 791.035. CONTRACTS WITH INSTITUTIONS OF HIGHER
12-2 EDUCATION OR UNIVERSITY SYSTEMS. (a) A local government and an
12-3 institution of higher education or university system may contract
12-4 with one another to perform any governmental functions and
12-5 services. If the terms of the contract provide for payment based on
12-6 cost recovery, any law otherwise requiring competitive procurement
12-7 does not apply to the functions and services covered by the
12-8 contract.
12-9 (b) In this section, "institution of higher education" and
12-10 "university system" have the meanings assigned by Section 61.003,
12-11 Education Code.
12-12 SECTION 1.12. Section 2054.008, Government Code, is amended
12-13 by adding Subsection (c) to read as follows:
12-14 (c) A university system or institution of higher education
12-15 must provide written notice to the Legislative Budget Board under
12-16 Subsection (b) only if the cost of the major information system
12-17 exceeds $1 million. In this subsection, "university system" has
12-18 the meaning assigned by Section 61.003, Education Code.
12-19 SECTION 1.13. Subsection (n), Section 2155.078, Government
12-20 Code, is amended to read as follows:
12-21 (n) This section does not apply to an institution [a medical
12-22 and dental unit] to which Section 51.9335, Education Code, applies
12-23 or to an institution to which Section 73.115, Education Code,
12-24 applies.
12-25 SECTION 1.14. Subchapter Z, Chapter 51, Education Code, is
12-26 amended by adding Section 51.9611 to read as follows:
12-27 Sec. 51.9611. PAYROLL DEDUCTIONS FOR EMPLOYEES OF
13-1 UNIVERSITY SYSTEM OR INSTITUTION OF HIGHER EDUCATION. (a) In this
13-2 section, "institution of higher education" and "university system"
13-3 have the meanings assigned by Section 61.003.
13-4 (b) The governing board of a university system, or of an
13-5 institution of higher education that is not a component institution
13-6 of a university system, may authorize employees of the system or
13-7 institution, as applicable, to elect a payroll deduction for any
13-8 purpose that the governing board determines serves a public purpose
13-9 and benefits employees. The board may adopt policies and
13-10 procedures governing payroll deductions under this section. A
13-11 payroll deduction under this section is in addition to payroll
13-12 deductions authorized by other law.
13-13 (c) A payroll deduction under this section must be at the
13-14 written request of the employee, and the request must state the
13-15 amount to be deducted and the entity to which the deducted amount is
13-16 to be transferred. A payroll deduction is in effect until revoked
13-17 in writing by the employee, but the policies and procedures of the
13-18 system or institution, as applicable, may provide for enrollment
13-19 periods.
13-20 (d) A university system or institution of higher education
13-21 may collect an administrative fee to cover the costs of making a
13-22 deduction.
13-23 SECTION 1.15. Subsection (a), Section 1601.004, Insurance
13-24 Code, is amended to read as follows:
13-25 (a) In this chapter, "dependent," with respect to an
13-26 individual eligible to participate in the uniform program under
13-27 Section 1601.101 or 1601.102, means the individual's:
14-1 (1) spouse;
14-2 (2) unmarried child younger than 25 years of age; and
14-3 (3) child of any age who the system determines lives
14-4 with or has the child's care provided by the individual on a regular
14-5 basis if the child is mentally retarded or physically incapacitated
14-6 to the extent that the child is dependent on the individual for care
14-7 or support, as determined by the system, and:
14-8 (A) if the child is at least 25 years of age, the
14-9 child's coverage under this chapter has not lapsed, and the child
14-10 was enrolled as a participant in the health benefits coverage under
14-11 the uniform program on the date of the child's 25th birthday; or
14-12 (B) if the child is a child of an individual
14-13 eligible to participate as an employee under Section 1601.101, at
14-14 the time of the individual's initial enrollment in health benefits
14-15 coverage under the uniform program the child is at least 25 years of
14-16 age and is enrolled in comparable coverage, as determined by the
14-17 system, under the individual's previous health benefits coverage.
14-18 SECTION 1.16. Subchapter C, Chapter 1601, Insurance Code,
14-19 is amended by adding Section 1601.111 to read as follows:
14-20 Sec. 1601.111. PROGRAMS PROMOTING DISEASE PREVENTION,
14-21 WELLNESS, AND HEALTH. A system may establish premium discounts,
14-22 surcharges, rebates, or a revision in otherwise applicable
14-23 copayments, coinsurance, or deductibles, or any combination of
14-24 those incentives, for an individual who participates in
14-25 system-approved programs promoting disease prevention, wellness,
14-26 and health.
14-27 SECTION 1.17. Subsection (d), Section 1601.201, Insurance
15-1 Code, is amended to read as follows:
15-2 (d) Subsection (c) does not prohibit a system from
15-3 contributing, from money not appropriated from the general revenue
15-4 fund, amounts in excess of the amount specified by that subsection
15-5 for:
15-6 (1) an individual employed by the system in a position
15-7 that as a condition of employment requires the individual to be
15-8 enrolled as a student in the system in graduate level courses; or
15-9 (2) an individual who is a tenured faculty member with
15-10 whom the system has entered into a phased retirement agreement
15-11 under which the individual will work less than 40 hours a week for a
15-12 specified period of time at the end of which the individual will
15-13 retire.
15-14 SECTION 1.18. Subchapter C, Chapter 61, Education Code, is
15-15 amended by adding Section 61.0573 to read as follows:
15-16 Sec. 61.0573. PROJECTS EXEMPT FROM BOARD APPROVAL. (a) In
15-17 this section, "project" means the acquisition of improved or
15-18 unimproved real property or the construction, repair, or
15-19 rehabilitation of a building or other facility.
15-20 (b) Board approval of a project at an institution of higher
15-21 education is not required under Section 61.0572 or 61.058 if the
15-22 institution notifies the board of the project and certifies to the
15-23 board that:
15-24 (1) the institution meets the current published board
15-25 standards applicable to the institution for space need, usage
15-26 efficiency, deferred maintenance, and critical deferred
15-27 maintenance or the board has approved the institution's plan to
16-1 correct any deficiencies in the institution's compliance with those
16-2 applicable standards;
16-3 (2) the project meets current published board
16-4 standards applicable to the project for cost, efficiency, and space
16-5 use;
16-6 (3) the project is identified on the institution's
16-7 campus master plan, as submitted to the board; and
16-8 (4) the institution has no deficiencies according to
16-9 the board's most recent facilities audit or the board has approved
16-10 the institution's plan to correct any such deficiencies.
16-11 (c) The board's staff shall promptly review a certification
16-12 submitted under Subsection (b) and notify the institution whether
16-13 the certification is sufficient and whether the information
16-14 certified is consistent with the records of the board. If the staff
16-15 review determines that the certification is sufficient and that the
16-16 information certified is consistent with the records of the board,
16-17 the project is considered approved by the board.
16-18 (d) This section does not apply to a project that is a new
16-19 branch campus or a new higher education center.
16-20 SECTION 1.19. Subsection (c), Section 2166.302, Government
16-21 Code, is amended to read as follows:
16-22 (c) Subsection (a) does not apply to a project constructed
16-23 by and for the Texas Department of Transportation or an institution
16-24 of higher education or university system. In this subsection,
16-25 "institution of higher education" and "university system" have the
16-26 meanings assigned by Section 61.003, Education Code.
16-27 SECTION 1.20. Subsection (c-1), Section 2166.403,
17-1 Government Code, is amended to read as follows:
17-2 (c-1) For a project constructed by and for a state
17-3 institution of higher education, the [governing body of the]
17-4 institution shall, during the planning phase of the proposed
17-5 construction for the project, verify [in an open meeting] the
17-6 economic feasibility of incorporating into the building's design
17-7 and proposed energy system alternative energy devices for space
17-8 heating and cooling functions, water heating functions, electrical
17-9 load functions, and interior lighting functions. The [governing
17-10 body of the] institution shall determine the economic feasibility
17-11 of each function listed in this subsection by comparing the
17-12 estimated cost of providing energy for the function, based on the
17-13 use of conventional design practices and energy systems, with the
17-14 estimated cost of providing energy for the function, based on the
17-15 use of alternative energy devices, during the economic life of the
17-16 building.
17-17 SECTION 1.21. Subsection (b), Section 2167.001, Government
17-18 Code, is amended to read as follows:
17-19 (b) This chapter does not apply to:
17-20 (1) radio antenna space;
17-21 (2) residential space for a Texas Department of Mental
17-22 Health and Mental Retardation program;
17-23 (3) residential space for a Texas Youth Commission
17-24 program;
17-25 (4) space to be used for less than one month for
17-26 meetings, conferences, conventions, seminars, displays,
17-27 examinations, auctions, or similar purposes;
18-1 (5) district office space for members of the
18-2 legislature;
18-3 (6) space used by the Texas Workforce Commission;
18-4 (7) residential property acquired by the Texas
18-5 Department of Housing and Community Affairs or the Texas State
18-6 Affordable Housing Corporation that is offered for sale or rental
18-7 to individuals and families of low or very low income or families of
18-8 moderate income;
18-9 (8) except as provided by Section 2167.007, [classroom
18-10 and instructional] space for a university system or [an]
18-11 institution of higher education; or
18-12 (9) space leased by the Texas Veterans Commission to
18-13 administer the veterans employment services program.
18-14 SECTION 1.22. Section 33.06, Tax Code, is amended by adding
18-15 Subsection (g) to read as follows:
18-16 (g) If the ownership interest of an individual entitled to a
18-17 deferral under this section is a life estate, a lien for the
18-18 deferred tax attaches to the estate of the life tenant, and not to
18-19 the remainder interest, if the owner of the remainder is an
18-20 institution of higher education that has not consented to the
18-21 deferral. In this subsection, "institution of higher education"
18-22 has the meaning assigned by Section 61.003, Education Code. This
18-23 subsection does not apply to a deferral for which the individual
18-24 entitled to the deferral filed the affidavit required by Subsection
18-25 (b) before September 1, 2011.
18-26 SECTION 1.23. Section 552.123, Government Code, is amended
18-27 to read as follows:
19-1 Sec. 552.123. EXCEPTION: NAME OF APPLICANT FOR CHIEF
19-2 EXECUTIVE OFFICER OF INSTITUTION OF HIGHER EDUCATION. The name of
19-3 an applicant for the position of chief executive officer of an
19-4 institution of higher education, and other information that would
19-5 tend to identify the applicant, is excepted from the requirements
19-6 of Section 552.021, except that the governing body of the
19-7 institution must give public notice of the name or names of the
19-8 finalists being considered for the position at least 21 days before
19-9 the date of the meeting at which final action or vote is to be taken
19-10 on the employment of the person.
19-11 SECTION 1.24. Subsection (b), Section 95.006, Health and
19-12 Safety Code, is amended to read as follows:
19-13 (b) The advisory committee is composed of:
19-14 (1) the following representatives appointed by the
19-15 executive director of the office:
19-16 (A) one representative of the office;
19-17 (B) one representative of the Texas Education
19-18 Agency;
19-19 (C) one representative of the Texas Pediatric
19-20 Society;
19-21 (D) one representative of the American Diabetes
19-22 Association;
19-23 (E) [one representative who is a member of the
19-24 board of regents of The University of Texas--Pan American;
19-25 [(F)] one school nurse representative from an
19-26 urban school located within the boundaries of a regional education
19-27 service center;
20-1 (F) [(G)] one parent or guardian of a child who
20-2 resides within the boundaries of a regional education service
20-3 center; and
20-4 (G) [(H)] one person with knowledge and
20-5 experience in health care in school settings; and
20-6 (2) the following representatives appointed by the
20-7 chairman of the council:
20-8 (A) one representative of the council;
20-9 (B) one representative of the Texas Medical
20-10 Association;
20-11 (C) one school district administrator
20-12 representative from a school district located within the boundaries
20-13 of a regional education service center;
20-14 (D) one school principal representative from a
20-15 school district located within the boundaries of a regional
20-16 education service center; and
20-17 (E) one school nurse representative from a rural
20-18 school located within the boundaries of a regional education
20-19 service center.
20-20 SECTION 1.25. Subsections (a) and (c), Section 2.03,
20-21 Chapter 670, Acts of the 72nd Legislature, Regular Session, 1991
20-22 (Article 4477-7j, Vernon's Texas Civil Statutes), are amended to
20-23 read as follows:
20-24 (a) On or after the effective date of this Act, the
20-25 Commissioners Court of Gaines County shall appoint three persons,
20-26 the governing body of the city of Seminole shall appoint two
20-27 persons, and the governing body of the city of Seagraves shall
21-1 appoint two persons to serve as initial directors of the district.
21-2 The four persons appointed by the governing bodies of the cities of
21-3 Seminole and Seagraves shall represent the municipalities within
21-4 the county, and the three persons appointed by the Commissioners
21-5 Court of Gaines County shall represent the unincorporated areas of
21-6 the county. [In addition, the board of regents of The University of
21-7 Texas System shall appoint one person to serve as an ex-officio,
21-8 nonvoting director of the district.]
21-9 (c) The Commissioners Court of Gaines County and the
21-10 governing bodies of the cities of Seminole and Seagraves shall each
21-11 appoint one initial director to serve a term expiring on May 1 of
21-12 the first year after the year in which the original appointment is
21-13 made. In addition, the Commissioners Court of Gaines County shall
21-14 appoint two initial directors and the governing bodies of the
21-15 cities of Seminole and Seagraves shall each appoint one initial
21-16 director to serve terms expiring on May 1 of the second year after
21-17 the year in which the original appointment is made. [The initial
21-18 ex-officio member serves a term expiring on May 1 of the second year
21-19 after the year in which the original appointment is made.]
21-20 Successor directors serve two-year terms.
21-21 SECTION 1.26. Subsection (a), Section 3.01, Chapter 670,
21-22 Acts of the 72nd Legislature, Regular Session, 1991 (Article
21-23 4477-7j, Vernon's Texas Civil Statutes), is amended to read as
21-24 follows:
21-25 (a) The district is governed by a board of directors
21-26 composed of seven voting members [and one ex-officio nonvoting
21-27 member] who are appointed as provided by this Act. However, the
22-1 district shall change to a system of electing the voting directors
22-2 if:
22-3 (1) the Commissioners Court of Gaines County and the
22-4 governing bodies of the cities of Seminole and Seagraves each pass a
22-5 resolution calling for the election of the directors; or
22-6 (2) the board receives a petition signed by at least
22-7 150 registered voters of Gaines County calling for the election of
22-8 the directors.
22-9 SECTION 1.27. Subsection (d), Section 51.403, Education
22-10 Code, is amended to read as follows:
22-11 (d) For purposes of this subsection, "small classes" [Each
22-12 institution shall file with its governing board and the
22-13 coordinating board a small class report, excluding individual
22-14 instruction courses, indicating department, course number, title
22-15 of course, and the name of the instructor. "Small classes," for the
22-16 purpose of this report,] are undergraduate-level courses with less
22-17 than 10 registrations, and graduate-level courses with less than 5
22-18 registrations. No small classes shall be offered in any
22-19 institution except as authorized by the appropriate governing
22-20 board, within the guidelines established by the Coordinating Board.
22-21 SECTION 1.28. Subchapter H, Chapter 51, Education Code, is
22-22 amended by adding Section 51.406 to read as follows:
22-23 Sec. 51.406. EXPIRATION OF CERTAIN REPORTING REQUIREMENTS
22-24 APPLICABLE TO INSTITUTIONS OF HIGHER EDUCATION AND UNIVERSITY
22-25 SYSTEMS. (a) In this section, "university system" has the meaning
22-26 assigned by Section 61.003.
22-27 (b) To the extent that any of the following laws require
23-1 reporting by a university system or an institution of higher
23-2 education, a university system or institution of higher education
23-3 is not required to make the report on or after September 1, 2013,
23-4 unless legislation enacted by the 83rd Legislature that becomes law
23-5 expressly requires the institution or system to make the report:
23-6 (1) Section 7.109;
23-7 (2) Section 33.083;
23-8 (3) Section 51.0051;
23-9 (4) Section 59.07;
23-10 (5) Section 130.086;
23-11 (6) Section 325.007, Government Code;
23-12 (7) Section 669.003, Government Code;
23-13 (8) Section 2005.007, Government Code;
23-14 (9) Section 2052.103, Government Code;
23-15 (10) Section 2054.097, Government Code;
23-16 (11) Section 2101.011, Government Code;
23-17 (12) Section 2102.009, Government Code;
23-18 (13) Chapter 2114, Government Code; and
23-19 (14) Section 2205.041, Government Code.
23-20 (c) A rule or policy of a state agency, including the Texas
23-21 Higher Education Coordinating Board, in effect on June 1, 2011,
23-22 that requires reporting by a university system or an institution of
23-23 higher education has no effect on or after September 1, 2013, unless
23-24 the rule or policy is affirmatively and formally readopted before
23-25 that date by formal administrative rule published in the Texas
23-26 Register and adopted in compliance with Chapter 2001, Government
23-27 Code. This subsection does not apply to:
24-1 (1) a rule or policy for which the authorizing statute
24-2 is listed in Subsection (b);
24-3 (2) a rule or policy for which the authorizing statute
24-4 is repealed on or before September 1, 2013, by legislation enacted
24-5 by the legislature that becomes law; or
24-6 (3) a report required under any of the following laws:
24-7 (A) Section 51.005;
24-8 (B) Section 51.3062;
24-9 (C) Section 51.402;
24-10 (D) Section 56.039;
24-11 (E) Section 61.051(k);
24-12 (F) Section 61.059; or
24-13 (G) Section 62.095(b).
24-14 SECTION 1.29. Section 51.914, Education Code, is amended to
24-15 read as follows:
24-16 Sec. 51.914. PROTECTION OF CERTAIN INFORMATION. (a) In
24-17 order to protect the actual or potential value, the following
24-18 information is [shall be] confidential and is [shall] not [be]
24-19 subject to disclosure under Chapter 552, Government Code, or
24-20 otherwise:
24-21 (1) all information relating to a product, device, or
24-22 process, the application or use of such a product, device, or
24-23 process, and all technological and scientific information
24-24 (including computer programs) developed in whole or in part at a
24-25 state institution of higher education, regardless of whether
24-26 patentable or capable of being registered under copyright or
24-27 trademark laws, that have a potential for being sold, traded, or
25-1 licensed for a fee;
25-2 (2) any information relating to a product, device, or
25-3 process, the application or use of such product, device, or
25-4 process, and any technological and scientific information
25-5 (including computer programs) that is the proprietary information
25-6 of a person, partnership, corporation, or federal agency that has
25-7 been disclosed to an institution of higher education solely for the
25-8 purposes of a written research contract or grant that contains a
25-9 provision prohibiting the institution of higher education from
25-10 disclosing such proprietary information to third persons or
25-11 parties; or
25-12 (3) the plans, specifications, blueprints, and
25-13 designs, including related proprietary information, of a
25-14 scientific research and development facility that is jointly
25-15 financed by the federal government and a local government or state
25-16 agency, including an institution of higher education, if the
25-17 facility is designed and built for the purposes of promoting
25-18 scientific research and development and increasing the economic
25-19 development and diversification of this state.
25-20 (b) Information maintained by or for an institution of
25-21 higher education that would reveal the institution's plans or
25-22 negotiations for commercialization or research, or that consists of
25-23 unpublished research results or data, is not subject to Chapter
25-24 552, Government Code, unless the information has been published, is
25-25 patented, or is otherwise subject to an executed license, sponsored
25-26 research agreement, or research contract or grant. In this
25-27 subsection, "institution of higher education" has the meaning
26-1 assigned by Section 61.003.
26-2 SECTION 1.30. Subsection (h), Section 61.051, Education
26-3 Code, is amended to read as follows:
26-4 (h) The board shall make continuing studies of the needs of
26-5 the state for research and designate the institutions of higher
26-6 education to perform research as needed. The board shall also
26-7 maintain an inventory of all institutional and programmatic
26-8 research activities being conducted by the various institutions,
26-9 whether state-financed or not. Once a year, on dates prescribed by
26-10 the board, each institution of higher education shall report to the
26-11 board all research conducted at that institution during the last
26-12 preceding year. The submission by an institution of the
26-13 institution's response to the National Science Foundation's annual
26-14 Higher Education Research and Development Survey satisfies the
26-15 requirements of this section. All reports required by this
26-16 subsection shall be made subject to the limitations imposed by
26-17 security regulations governing defense contracts for research.
26-18 SECTION 1.31. Section 61.0582, Education Code, is amended
26-19 by adding Subsection (f) to read as follows:
26-20 (f) This section does not apply to a university system that
26-21 maintains an ongoing system-wide capital improvement program
26-22 approved by the system's board of regents.
26-23 SECTION 1.32. Section 130.152, Education Code, is amended
26-24 to read as follows:
26-25 Sec. 130.152. CRITERIA FOR PROGRAMS FOR THE DISADVANTAGED.
26-26 A junior college may develop programs to serve persons from
26-27 backgrounds of economic or educational deprivation by submission of
27-1 a plan based on the following criteria to the Texas Higher Education
27-2 Coordinating Board[, Texas College and University System]:
27-3 (1) an instructional program that accommodates the
27-4 different learning rates of students and compensates for prior
27-5 economic and educational deprivation;
27-6 (2) an unrestricted admissions policy allowing the
27-7 enrollment of any person 18 years of age or older with a high school
27-8 diploma or its equivalent who can reasonably be expected to benefit
27-9 from instruction;
27-10 (3) the assurance that all students, regardless of
27-11 their differing programs of study, will be considered, known, and
27-12 recognized as full members of the student body, provided that the
27-13 administrative officers of a junior college may deny admission to a
27-14 prospective student or attendance of an enrolled student if, in
27-15 their judgment, the person [he] would not be competent to benefit
27-16 from a program of the college, or would by the person's [his]
27-17 presence or conduct create a disruptive atmosphere within the
27-18 college not consistent with the statutory purposes of the college;
27-19 (4) [the submission of a plan for a financial aid
27-20 program which removes to the maximum extent possible the financial
27-21 barriers to the educational aspirations of the citizens of this
27-22 state;
27-23 [(5) an annual evaluation report based on scientific
27-24 methods and utilizing control groups wherever possible to be
27-25 submitted to the coordinating board at the end of each school year,
27-26 covering each remedial-compensatory course or program offered at
27-27 the college;
28-1 [(6)] any other criteria consistent with the
28-2 provisions of this subchapter specified by the coordinating board;
28-3 and
28-4 (5) [(7)] a junior college must obtain approval of the
28-5 coordinating board [Coordinating Board, Texas College and
28-6 University System,] before offering any courses under the
28-7 provisions of this Act.
28-8 SECTION 1.33. Section 401.042, Government Code, is amended
28-9 by adding Subsection (c) to read as follows:
28-10 (c) In consultation with public institutions of higher
28-11 education, the offices of the governor and the Legislative Budget
28-12 Board shall review the forms for higher education legislative
28-13 appropriations requests to identify opportunities to improve
28-14 efficiency, provide better transparency of funding sources,
28-15 eliminate unnecessary or duplicative requirements, and otherwise
28-16 reduce the cost or difficulty of providing information related to
28-17 appropriations requests.
28-18 SECTION 1.34. Subchapter L, Chapter 403, Government Code,
28-19 is amended by adding Section 403.2715 to read as follows:
28-20 Sec. 403.2715. UNIVERSITY SYSTEMS AND INSTITUTIONS OF
28-21 HIGHER EDUCATION. (a) In this section, "institution of higher
28-22 education" and "university system" have the meanings assigned by
28-23 Section 61.003, Education Code.
28-24 (b) Except as provided by this section, this subchapter does
28-25 not apply to a university system or institution of higher
28-26 education.
28-27 (c) A university system or institution of higher education
29-1 shall account for all personal property as defined by the
29-2 comptroller under Section 403.272. At all times, the property
29-3 records of a university system or institution of higher education
29-4 must accurately reflect the personal property possessed by the
29-5 system or institution.
29-6 (d) The chief executive officer of each university system or
29-7 institution of higher education shall designate one or more
29-8 property managers. The property manager shall maintain the records
29-9 required and be the custodian of all personal property possessed by
29-10 the system or institution.
29-11 (e) Sections 402.273(h), 403.275, and 403.278 apply to a
29-12 university system or institution of higher education.
29-13 SECTION 1.35. Subsection (d), Section 2101.0115,
29-14 Government Code, is amended by adding Subdivision (4) to read as
29-15 follows:
29-16 (4) "Institution of higher education" and "university
29-17 system" have the meanings assigned by Section 61.003, Education
29-18 Code.
29-19 SECTION 1.36. Section 2101.0115, Government Code, is
29-20 amended by adding Subsection (e) to read as follows:
29-21 (e) This section does not apply to an institution of higher
29-22 education or university system.
29-23 SECTION 1.37. Subsection (c), Section 2254.028, Government
29-24 Code, is amended to read as follows:
29-25 (c) Subsection (a) [(a)(3)] does not apply to a major
29-26 consulting services contract to be entered into by an institution
29-27 of higher education other than a public junior college if the
30-1 institution includes in the invitation published under Section
30-2 2254.029 a finding by the chief executive officer of the
30-3 institution that the consulting services are necessary and an
30-4 explanation of that finding.
30-5 SECTION 1.38. Section 2254.0301, Government Code, is
30-6 amended to read as follows:
30-7 Sec. 2254.0301. CONTRACT NOTIFICATION. (a) A state agency
30-8 shall provide written notice to the Legislative Budget Board of a
30-9 contract for consulting services if the amount of the contract,
30-10 including an amendment, modification, renewal, or extension of the
30-11 contract, exceeds $14,000. The notice must be on a form prescribed
30-12 by the Legislative Budget Board and filed not later than the 10th
30-13 day after the date the entity enters into the contract.
30-14 (b) This section does not apply to a university system or
30-15 institution of higher education. In this subsection, "institution
30-16 of higher education" and "university system" have the meanings
30-17 assigned by Section 61.003, Education Code.
30-18 SECTION 1.39. Subsection (f), Section 388.005, Health and
30-19 Safety Code, is amended to read as follows:
30-20 (f) This section does not apply to a state agency or an
30-21 institution of higher education that the State Energy Conservation
30-22 Office determines [that], before September 1, 2007, adopted a plan
30-23 for conserving energy under which the agency or institution
30-24 established a percentage goal for reducing the consumption of
30-25 electricity. The exemption provided by this section applies only
30-26 while the agency or institution has an energy conservation plan in
30-27 effect and only if the agency or institution submits reports on the
31-1 conservation plan each year [calendar quarter] to the governor, the
31-2 Legislative Budget Board, and the State Energy Conservation Office.
31-3 SECTION 1.40. Section 412.053, Labor Code, is amended by
31-4 adding Subsection (c) to read as follows:
31-5 (c) This section does not apply to an institution of higher
31-6 education or university system. In this subsection, "institution
31-7 of higher education" and "university system" have the meanings
31-8 assigned by Section 61.003, Education Code.
31-9 SECTION 1.41. Subsection (d), Section 31.153, Natural
31-10 Resources Code, is amended to read as follows:
31-11 (d) Each state agency, other than an institution of higher
31-12 education, annually at the time set by the division, shall furnish
31-13 the Texas Historical Commission with a photograph and information
31-14 that specifies and identifies the age of each building:
31-15 (1) that was acquired by the agency after the date of
31-16 the preceding annual submission and that is at least 45 years old on
31-17 the date of the current submission; or
31-18 (2) that is possessed by the agency and has become 45
31-19 years old since the date the information was previously submitted.
31-20 SECTION 1.42. (a) The following laws are repealed
31-21 effective September 1, 2011:
31-22 (1) Section 51.216, Education Code;
31-23 (2) Subsections (b) and (c), Section 51.403, Education
31-24 Code;
31-25 (3) Section 51.4033, Education Code;
31-26 (4) Section 61.0815, Education Code;
31-27 (5) Section 61.086, Education Code;
32-1 (6) Subsection (c), Section 61.087, Education Code;
32-2 (7) Section 62.098, Education Code;
32-3 (8) Section 1434.054, Government Code;
32-4 (9) Section 2107.005, Government Code;
32-5 (10) Subsection (c), Section 412.042, Labor Code; and
32-6 (11) Subsection (c), Section 3.01, Chapter 670, Acts
32-7 of the 72nd Legislature, Regular Session, 1991 (Article 4477-7j,
32-8 Vernon's Texas Civil Statutes).
32-9 (b) The following provisions of the Education Code are
32-10 repealed effective September 1, 2013:
32-11 (1) Section 51.859;
32-12 (2) Subsection (e), Section 51.917;
32-13 (3) Subsection (d), Section 51.968;
32-14 (4) Subsection (h), Section 54.203;
32-15 (5) Subsection (c), Section 56.034;
32-16 (6) Subsection (j), Section 56.079;
32-17 (7) Subsection (c), Section 61.066;
32-18 (8) Subsection (d), Section 63.003;
32-19 (9) Section 63.004;
32-20 (10) Section 63.103;
32-21 (11) Subsection (m), Section 86.52;
32-22 (12) Section 88.210;
32-23 (13) Section 106.54;
32-24 (14) Section 142.005;
32-25 (15) Section 143.006;
32-26 (16) Section 147.005;
32-27 (17) Section 148.005; and
33-1 (18) Section 153.008.
33-2 SECTION 1.43. (a) This section governs a conflict between
33-3 this article and any other Act of the 82nd Legislature, Regular
33-4 Session, 2011, without regard to the relative dates of enactment.
33-5 (b) If this article and any other Act repeal the same
33-6 statute, the earlier effective date of repeal controls.
33-7 (c) If this article amends a statute that any other Act
33-8 repeals, the repeal controls.
33-9 SECTION 1.44. Section 51.011, Education Code, as added by
33-10 this article, applies to credit balances held by a public
33-11 institution of higher education on or after the effective date of
33-12 this article.
33-13 SECTION 1.45. This article takes effect immediately if this
33-14 Act receives a vote of two-thirds of all the members elected to each
33-15 house, as provided by Section 39, Article III, Texas Constitution.
33-16 If this Act does not receive the vote necessary for immediate
33-17 effect, this article takes effect September 1, 2011.
33-18 ARTICLE 2. FISCAL MATTERS CONCERNING ADVANCED PLACEMENT
33-19 SECTION 2.01. Subsection (h), Section 28.053, Education
33-20 Code, is amended to read as follows:
33-21 (h) The commissioner may enter into agreements with the
33-22 college board and the International Baccalaureate Organization to
33-23 pay for all examinations taken by eligible public school students.
33-24 An eligible student is a student [one] who:
33-25 (1) takes a college advanced placement or
33-26 international baccalaureate course at a public school or who is
33-27 recommended by the student's principal or teacher to take the test;
34-1 and
34-2 (2) demonstrates financial need as determined in
34-3 accordance with guidelines adopted by the board that are consistent
34-4 with the definition of financial need adopted by the college board
34-5 or the International Baccalaureate Organization.
34-6 ARTICLE 3. FISCAL MATTERS CONCERNING EARLY HIGH SCHOOL GRADUATION
34-7 SECTION 3.01. Subchapter K, Chapter 56, Education Code, is
34-8 amended by adding Section 56.2012 to read as follows:
34-9 Sec. 56.2012. EXPIRATION OF SUBCHAPTER; ELIGIBILITY
34-10 CLOSED. (a) This subchapter expires September 1, 2017.
34-11 (b) Notwithstanding Section 56.203, a person may not
34-12 receive an award under this subchapter if the person graduates from
34-13 high school on or after September 1, 2011.
34-14 SECTION 3.02. Subsection (b), Section 54.213, Education
34-15 Code, is amended to read as follows:
34-16 (b) [Savings to the foundation school fund that occur as a
34-17 result of the Early High School Graduation Scholarship program
34-18 created in Subchapter K, Chapter 56, and that are not required for
34-19 the funding of state credits for tuition and mandatory fees under
34-20 Section 56.204 or school district credits under Section 56.2075
34-21 shall be used first to provide tuition exemptions under Section
34-22 54.212. Any of those savings remaining after providing tuition
34-23 exemptions under Section 54.212 shall be used to provide tuition
34-24 exemptions under Section 54.214.] The Texas Education Agency shall
34-25 [also] accept and make available to provide tuition exemptions
34-26 under Section 54.214 gifts, grants, and donations made to the
34-27 agency for that purpose. The commissioner of education shall
35-1 transfer those funds to the Texas Higher Education Coordinating
35-2 Board to distribute to institutions of higher education that
35-3 provide exemptions under that section [Payment of funds under this
35-4 subsection shall be made in the manner provided by Section 56.207
35-5 for state credits under Subchapter K, Chapter 56].
35-6 SECTION 3.03. Section 56.210, Education Code, is repealed.
35-7 ARTICLE 4. FISCAL MATTERS CONCERNING TUITION EXEMPTIONS
35-8 SECTION 4.01. Subsection (c), Section 54.214, Education
35-9 Code, is amended to read as follows:
35-10 (c) To be eligible for an exemption under this section, a
35-11 person must:
35-12 (1) be a resident of this state;
35-13 (2) be a school employee serving in any capacity;
35-14 (3) for the initial term or semester for which the
35-15 person receives an exemption under this section, have worked as an
35-16 educational aide for at least one school year during the five years
35-17 preceding that term or semester;
35-18 (4) establish financial need as determined by
35-19 coordinating board rule;
35-20 (5) be enrolled at the institution of higher education
35-21 granting the exemption in courses required for teacher
35-22 certification in one or more subject areas determined by the Texas
35-23 Education Agency to be experiencing a critical shortage of teachers
35-24 at the public schools in this state [at the institution of higher
35-25 education granting the exemption];
35-26 (6) maintain an acceptable grade point average as
35-27 determined by coordinating board rule; and
36-1 (7) comply with any other requirements adopted by the
36-2 coordinating board under this section.
36-3 SECTION 4.02. The change in law made by this article applies
36-4 beginning with tuition and fees charged for the 2011 fall semester.
36-5 Tuition and fees charged for a term or semester before the 2011 fall
36-6 semester are covered by the law in effect during the term or
36-7 semester for which the tuition and fees are charged, and the former
36-8 law is continued in effect for that purpose.
36-9 ARTICLE 5. FISCAL MATTERS CONCERNING CERTAIN DISTRIBUTIONS TO
36-10 INSTITUTIONS OF HIGHER EDUCATION
36-11 SECTION 5.01. Subchapter A, Chapter 63, Education Code, is
36-12 amended by adding Section 63.0035 to read as follows:
36-13 Sec. 63.0035. PARTIAL LIQUIDATION OF INSTITUTION'S SHARE;
36-14 DISTRIBUTION OF FUND AFTER LIQUIDATION. (a) Subject to
36-15 appropriation of the appropriate amounts, the board of regents of
36-16 The University of Texas System shall transfer to each institution
36-17 that is entitled in a state fiscal year to receive a distribution
36-18 from the permanent fund established under this subchapter a
36-19 one-time liquidation distribution for the state fiscal year ending
36-20 August 31, 2012, and, for that fiscal year and each subsequent
36-21 fiscal year, a reduced annual distribution as provided by this
36-22 section.
36-23 (b) The board of regents of The University of Texas System,
36-24 not later than November 1, 2011, shall:
36-25 (1) calculate the amount of each liquidation
36-26 distribution in accordance with this section; and
36-27 (2) provide to all institutions entitled to receive a
37-1 distribution from the permanent fund established under this
37-2 subchapter written notice specifying:
37-3 (A) the amount of the liquidation distribution to
37-4 be made to each institution in the state fiscal year ending August
37-5 31, 2012; and
37-6 (B) the amounts of the other distributions to be
37-7 made in that fiscal year to each institution under this section from
37-8 the per capita account and the formula account described by
37-9 Subsection (c).
37-10 (c) As soon as practicable after the beginning of the state
37-11 fiscal year ending August 31, 2012, the permanent fund shall be
37-12 segregated into two accounts, the per capita account and the
37-13 formula account. Notwithstanding any other law, distributions in
37-14 that fiscal year and in subsequent fiscal years shall be made in
37-15 accordance with this section and not in accordance with Section
37-16 63.003(a). The amount segregated into the per capita account is
37-17 equal to 70 percent of the total value of the fund at the end of the
37-18 preceding state fiscal year. The formula account is composed of the
37-19 remaining 30 percent of that total value at the end of that
37-20 preceding fiscal year.
37-21 (d) A liquidation distribution is an amount equal to
37-22 one-third of the institution's fractional share of the value of the
37-23 per capita account. An institution's fractional share of the per
37-24 capita account is determined by multiplying the amount segregated
37-25 into the per capita account by a fraction, the numerator of which is
37-26 one and the denominator of which is the number of institutions that
37-27 are entitled to receive a distribution from the permanent fund
38-1 established under this subchapter.
38-2 (e) In the state fiscal year ending August 31, 2012, and in
38-3 each subsequent fiscal year, the annual amount appropriated for
38-4 distribution from the investment of the per capita account shall be
38-5 distributed in equal shares to each institution.
38-6 (e-1) Subsection (e) does not apply to the amounts
38-7 distributed as liquidation distributions in the state fiscal year
38-8 ending August 31, 2012.
38-9 (f) In each state fiscal year in which distributions are
38-10 made from the per capita account under Subsection (e), the amount
38-11 appropriated for distribution from the investment of the formula
38-12 account shall be distributed in equal portions with respect to each
38-13 of the following categories, with each institution receiving a
38-14 share in each category proportionate to the amount that the
38-15 institution spent in that category in the preceding state fiscal
38-16 biennium as determined by the institution's annual financial
38-17 report, compared to the total spending of all institutions listed
38-18 in Section 63.002(c) in that category in the preceding biennium:
38-19 (1) instructional expenditures;
38-20 (2) research expenditures; and
38-21 (3) unsponsored charity care.
38-22 (g) Except as otherwise provided by this section:
38-23 (1) Section 63.003(b) applies to amounts appropriated
38-24 for distribution under Subsections (e) and (f) of this section; and
38-25 (2) Sections 63.003(c) and (d) apply to amounts
38-26 appropriated for distribution under Subsection (f) of this section.
38-27 (h) The comptroller in consultation with the board of
39-1 regents of The University of Texas System shall establish
39-2 procedures to implement this section. A liquidation distribution
39-3 shall be made in accordance with those procedures and in
39-4 consultation with the institutions receiving the liquidation
39-5 distribution.
39-6 (i) Any direct costs associated with liquidation
39-7 distributions, including discounts on investment dispositions and
39-8 related expenses realized by the permanent fund, shall be deducted
39-9 in equal portions from the amounts of the liquidation
39-10 distributions. The procedures established under Subsection (h)
39-11 must provide for the minimization of any costs associated with
39-12 making the liquidation distributions considering the liquidity of
39-13 the investment assets of the fund.
39-14 (j) Notwithstanding other provisions of this subchapter,
39-15 the amount distributed to an institution under this section as a
39-16 liquidation distribution is under the exclusive control of the
39-17 governing board of the institution and may be used by the
39-18 institution in any manner for any lawful purpose. The comptroller
39-19 shall establish procedures to ensure that a liquidation
39-20 distribution to Baylor College of Medicine is used for public
39-21 purposes consistent with a contract in effect under Section 61.092.
39-22 SECTION 5.02. Subsection (d), Section 63.003, Education
39-23 Code, is amended to read as follows:
39-24 (d) For the purposes of this section or Section 63.0035,
39-25 Baylor College of Medicine may receive funds [under Subsection
39-26 (a)(2)] only if the institution provides the comptroller with an
39-27 independently audited schedule of information that substantially
40-1 complies with the reporting requirements issued by the comptroller
40-2 for other eligible institutions [under Subsection (a)(2)].
40-3 Information under this subsection must be supplied not later than
40-4 the time other eligible institutions are required to submit similar
40-5 information.
40-6 ARTICLE 6. FISCAL MATTERS CONCERNING DUAL HIGH SCHOOL AND JUNIOR
40-7 COLLEGE CREDIT
40-8 SECTION 6.01. Subsection (c), Section 130.008, Education
40-9 Code, is amended to read as follows:
40-10 (c) The contact hours attributable to the enrollment of a
40-11 high school student in a course offered for joint high school and
40-12 junior college credit under this section, excluding a course for
40-13 which the student attending high school may receive course credit
40-14 toward the physical education curriculum requirement under Section
40-15 28.002(a)(2)(C), shall be included in the contact hours used to
40-16 determine the junior college's proportionate share of the state
40-17 money appropriated and distributed to public junior colleges under
40-18 Sections 130.003 and 130.0031, even if the junior college waives
40-19 all or part of the tuition or fees for the student under Subsection
40-20 (b).
40-21 SECTION 6.02. This article applies beginning with funding
40-22 for the 2011 fall semester.
40-23 ARTICLE 7. FISCAL MATTERS CONCERNING THE STATE COMPRESSION
40-24 PERCENTAGE
40-25 SECTION 7.01. Section 42.2516, Education Code, is amended
40-26 by adding Subsection (b-2) to read as follows:
40-27 (b-2) If a school district adopts a maintenance and
41-1 operations tax rate that is below the rate equal to the product of
41-2 the state compression percentage multiplied by the maintenance and
41-3 operations tax rate adopted by the district for the 2005 tax year,
41-4 the commissioner shall reduce the district's entitlement under this
41-5 section in proportion to the amount by which the adopted rate is
41-6 less than the rate equal to the product of the state compression
41-7 percentage multiplied by the rate adopted by the district for the
41-8 2005 tax year. The reduction required by this subsection applies
41-9 beginning with the maintenance and operations tax rate adopted for
41-10 the 2009 tax year.
41-11 ARTICLE 8. FISCAL MATTERS RELATING TO PUBLIC SCHOOL
41-12 FINANCE AND PREKINDERGARTEN PROGRAMS
41-13 SECTION 8.01. Effective September 1, 2011, Section 12.106,
41-14 Education Code, is amended by amending Subsection (a) and adding
41-15 Subsection (a-3) to read as follows:
41-16 (a) A charter holder is entitled to receive for the
41-17 open-enrollment charter school funding under Chapter 42 equal to
41-18 the greater of:
41-19 (1) the percentage specified by Section 42.2516(i)
41-20 multiplied by the amount of funding per student in weighted average
41-21 daily attendance, excluding enrichment funding under Sections
41-22 42.302(a-1)(2) and (3), as they existed on January 1, 2009, that
41-23 would have been received for the school during the 2009-2010 school
41-24 year under Chapter 42 as it existed on January 1, 2009, and an
41-25 additional amount of the percentage specified by Section 42.2516(i)
41-26 multiplied by $120 for each student in weighted average daily
41-27 attendance; or
42-1 (2) the amount of funding per student in weighted
42-2 average daily attendance, excluding enrichment funding under
42-3 Section 42.302(a), to which the charter holder would be entitled
42-4 for the school under Chapter 42 if the school were a school district
42-5 without a tier one local share for purposes of Section 42.253 and
42-6 without any local revenue for purposes of Section 42.2516.
42-7 (a-3) In determining funding for an open-enrollment charter
42-8 school under Subsection (a), the commissioner shall apply the
42-9 regular program adjustment factor provided under Section 42.101 to
42-10 calculate the regular program allotment to which a charter school
42-11 is entitled.
42-12 SECTION 8.02. Effective September 1, 2016, Subsection (a),
42-13 Section 12.106, Education Code, is amended to read as follows:
42-14 (a) A charter holder is entitled to receive for the
42-15 open-enrollment charter school funding under Chapter 42 equal to
42-16 [the greater of:
42-17 [(1) the amount of funding per student in weighted
42-18 average daily attendance, excluding enrichment funding under
42-19 Sections 42.302(a-1)(2) and (3), as they existed on January 1,
42-20 2009, that would have been received for the school during the
42-21 2009-2010 school year under Chapter 42 as it existed on January 1,
42-22 2009, and an additional amount of $120 for each student in weighted
42-23 average daily attendance; or
42-24 [(2)] the amount of funding per student in weighted
42-25 average daily attendance, excluding enrichment funding under
42-26 Section 42.302(a), to which the charter holder would be entitled
42-27 for the school under Chapter 42 if the school were a school district
43-1 without a tier one local share for purposes of Section 42.253 [and
43-2 without any local revenue for purposes of Section 42.2516].
43-3 SECTION 8.03. Effective September 1, 2011, Section 21.402,
43-4 Education Code, is amended by amending Subsections (a), (b), (c),
43-5 and (c-1) and adding Subsection (i) to read as follows:
43-6 (a) Except as provided by Subsection (d)[, (e),] or (f), a
43-7 school district must pay each classroom teacher, full-time
43-8 librarian, full-time counselor certified under Subchapter B, or
43-9 full-time school nurse not less than the minimum monthly salary,
43-10 based on the employee's level of experience in addition to other
43-11 factors, as determined by commissioner rule, determined by the
43-12 following formula:
43-13 MS = SF x FS
43-14 where:
43-15 "MS" is the minimum monthly salary;
43-16 "SF" is the applicable salary factor specified by Subsection
43-17 (c); and
43-18 "FS" is the amount, as determined by the commissioner under
43-19 Subsection (b), of the basic allotment as provided by Section
43-20 42.101 (a) or (b) for a school district with a maintenance and
43-21 operations tax rate at least equal to the state maximum compressed
43-22 tax rate, as defined by Section 42.101 (a) [state and local funds
43-23 per weighted student, including funds provided under Section
43-24 42.2516, available to a district eligible to receive state
43-25 assistance under Section 42.302 with a maintenance and operations
43-26 tax rate per $100 of taxable value equal to the product of the state
43-27 compression percentage, as determined under Section 42.2516,
44-1 multiplied by $1.50, except that the amount of state and local funds
44-2 per weighted student does not include the amount attributable to
44-3 the increase in the guaranteed level made by Chapter 1187, Acts of
44-4 the 77th Legislature, Regular Session, 2001].
44-5 (b) Not later than June 1 of each year, the commissioner
44-6 shall determine the basic allotment and resulting monthly salaries
44-7 to be paid by school districts as provided by Subsection (a) [amount
44-8 of state and local funds per weighted student available, for
44-9 purposes of Subsection (a), to a district described by that
44-10 subsection for the following school year].
44-11 (c) The salary factors per step are as follows:
44-12
44-13 0 1 2 3 4 0 1 2 3 4
0 1 2 3 4
44-14
44-15 .5464 [.6226] .5582 [.6360] .5698 [.6492] .5816 [.6627] .6064 [.6909] .5464 [.6226] .5582 [.6360] .5698 [.6492] .5816 [.6627] .6064 [.6909]
.5464 [.6226] .5582 [.6360] .5698 [.6492] .5816 [.6627] .6064 [.6909]
44-16
44-17 5 6 7 8 9 5 6 7 8 9
5 6 7 8 9
44-18
44-19 .6312 [.7192] .6560 [.7474] .6790 [.7737] .7008 [.7985] .7214 [.8220] .6312 [.7192] .6560 [.7474] .6790 [.7737] .7008 [.7985] .7214 [.8220]
.6312 [.7192] .6560 [.7474] .6790 [.7737] .7008 [.7985] .7214 [.8220]
44-20
44-21 10 11 12 13 14 10 11 12 13 14
10 11 12 13 14
44-22
44-23 .7408 [.8441] .7592 [.8650] .7768 [.8851] .7930 [.9035] .8086 [.9213] .7408 [.8441] .7592 [.8650] .7768 [.8851] .7930 [.9035] .8086 [.9213]
.7408 [.8441] .7592 [.8650] .7768 [.8851] .7930 [.9035] .8086 [.9213]
44-24
44-25 15 16 17 18 19 15 16 17 18 19
15 16 17 18 19
44-26
44-27 .8232 [.9380] .8372 [.9539] .8502 [.9687] .8626 [.9828] .8744 [.9963] .8232 [.9380] .8372 [.9539] .8502 [.9687] .8626 [.9828] .8744 [.9963]
.8232 [.9380] .8372 [.9539] .8502 [.9687] .8626 [.9828] .8744 [.9963]
44-28
44-29
44-30
44-31 .8854 [1.009] .8854 [1.009]
.8854 [1.009]
44-32 (c-1) Notwithstanding Subsections [Subsection] (a) and
44-33 (b)[, for the 2009-2010 and 2010-2011 school years], each school
44-34 district shall pay a monthly salary to [increase the monthly salary
44-35 of] each classroom teacher, full-time speech pathologist,
44-36 full-time librarian, full-time counselor certified under
44-37 Subchapter B, and full-time school nurse that is at least equal to
45-1 the following monthly salary or the monthly salary determined by
45-2 the commissioner under Subsections (a) and (b), whichever is [by
45-3 the] greater [of]:
45-4 Years of Monthly Years of Monthly
Years of Monthly
45-5 Experience Salary Experience Salary
Experience Salary
45-6 0 2,732 0 2,732
0 2,732
45-7 1 2,791 1 2,791
1 2,791
45-8 2 2,849 2 2,849
2 2,849
45-9 3 2,908 3 2,908
3 2,908
45-10 4 3,032 4 3,032
4 3,032
45-11 5 3,156 5 3,156
5 3,156
45-12 6 3,280 6 3,280
6 3,280
45-13 7 3,395 7 3,395
7 3,395
45-14 8 3,504 8 3,504
8 3,504
45-15 9 3,607 9 3,607
9 3,607
45-16 10 3,704 10 3,704
10 3,704
45-17 11 3,796 11 3,796
11 3,796
45-18 12 3,884 12 3,884
12 3,884
45-19 13 3,965 13 3,965
13 3,965
45-20 14 4,043 14 4,043
14 4,043
45-21 15 4,116 15 4,116
15 4,116
45-22 16 4,186 16 4,186
16 4,186
45-23 17 4,251 17 4,251
17 4,251
45-24 18 4,313 18 4,313
18 4,313
45-25 19 4,372 19 4,372
19 4,372
45-26 20 & Over 4,427 20 & Over 4,427
20 & Over 4,427
45-27 [(1) $80; or
46-1 [(2) the maximum uniform amount that, when combined with any
46-2 resulting increases in the amount of contributions made by the
46-3 district for social security coverage for the specified employees
46-4 or by the district on behalf of the specified employees under
46-5 Section 825.405, Government Code, may be provided using an amount
46-6 equal to the product of $60 multiplied by the number of students in
46-7 weighted average daily attendance in the school during the
46-8 2009-2010 school year.]
46-9 (i) Not later than January 1, 2013, the commissioner shall
46-10 submit to the governor, the lieutenant governor, the speaker of the
46-11 house of representatives, and the presiding officer of each
46-12 legislative standing committee with primary jurisdiction over
46-13 primary and secondary education a written report that evaluates and
46-14 provides recommendations regarding the salary schedule. This
46-15 subsection expires September 1, 2013.
46-16 SECTION 8.031. Effective September 1, 2016, Section 21.402,
46-17 Education Code, is amended by amending Subsection (a) and adding
46-18 Subsection (e-1) to read as follows:
46-19 (a) Except as provided by Subsection (d), (e-1) [(e)], or
46-20 (f), a school district must pay each classroom teacher, full-time
46-21 librarian, full-time counselor certified under Subchapter B, or
46-22 full-time school nurse not less than the minimum monthly salary,
46-23 based on the employee's level of experience in addition to other
46-24 factors, as determined by commissioner rule, determined by the
46-25 following formula:
46-26 MS = SF x FS
46-27 where:
47-1 "MS" is the minimum monthly salary;
47-2 "SF" is the applicable salary factor specified by Subsection
47-3 (c); and
47-4 "FS" is the amount, as determined by the commissioner under
47-5 Subsection (b), of the basic allotment as provided by Section
47-6 42.101(a) or (b) for a school district with a maintenance and
47-7 operation tax rate at least equal to the state maximum compressed
47-8 tax rate, as defined by Section 42.101(a) [state and local funds per
47-9 weighted student, including funds provided under Section 42.2516,
47-10 available to a district eligible to receive state assistance under
47-11 Section 42.302 with a maintenance and operations tax rate per $100
47-12 of taxable value equal to the product of the state compression
47-13 percentage, as determined under Section 42.2516, multiplied by
47-14 $1.50, except that the amount of state and local funds per weighted
47-15 student does not include the amount attributable to the increase in
47-16 the guaranteed level made by Chapter 1187, Acts of the 77th
47-17 Legislature, Regular Session 2001].
47-18 (e-1) If the minimum monthly salary determined under
47-19 Subsection (a) for a particular level of experience is less than the
47-20 minimum monthly salary for that level of experience in the
47-21 preceding year, the minimum monthly salary is the minimum monthly
47-22 salary for the preceding year.
47-23 SECTION 8.04. Section 29.1532, Education Code, is amended
47-24 by amending Subsection (a) and adding Subsections (d) and (e) to
47-25 read as follows:
47-26 (a) A school district's prekindergarten program shall be
47-27 designed to develop skills necessary for success in the regular
48-1 public school curriculum, including language, mathematics, [and]
48-2 social, and school readiness skills that are aligned with the Texas
48-3 Prekindergarten Guidelines approved by the commissioner.
48-4 (d) A school district's prekindergarten program must
48-5 demonstrate effectiveness in preparing children for kindergarten
48-6 according to a school readiness certification system established by
48-7 the commissioner. The commissioner may waive participation in the
48-8 certification system for a school district whose prekindergarten
48-9 program otherwise demonstrates effectiveness in preparing students
48-10 for kindergarten.
48-11 (e) The commissioner may adopt rules as necessary to
48-12 implement this section.
48-13 SECTION 8.05. Section 29.154, Education Code, is amended to
48-14 read as follows:
48-15 Sec. 29.154. EVALUATION OF PREKINDERGARTEN PROGRAMS.
48-16 (a) The commissioner [of education, in consultation with the
48-17 commissioner of human services,] shall:
48-18 (1) monitor and evaluate prekindergarten programs as
48-19 to their developmental appropriateness and the development of
48-20 school readiness, as aligned with the Texas Prekindergarten
48-21 Guidelines approved by the commissioner and a school readiness
48-22 certification system established by the commissioner;
48-23 (2) [. The commissioners shall also] evaluate the
48-24 potential for coordination on a statewide basis of prekindergarten
48-25 programs with government-funded early childhood care and education
48-26 programs such as child care administered under Chapter 44, Human
48-27 Resources Code, and federal Head Start programs; and
49-1 (3) [. That evaluation shall use recommendations
49-2 contained in the report to the 71st Legislature required by Chapter
49-3 717, Acts of the 70th Legislature, Regular Session, 1987. For the
49-4 purpose of providing cost-effective care for children during the
49-5 full workday with developmentally appropriate curriculum, the
49-6 commissioners shall investigate the use of existing child-care
49-7 program sites as prekindergarten sites. Following the evaluation
49-8 required by this section, the commissioners,] in cooperation with
49-9 school districts and other program administrators, [shall]
49-10 integrate programs, staff, and program sites for prekindergarten,
49-11 child-care, and federal Head Start programs to the greatest extent
49-12 possible.
49-13 (b) The commissioner or an entity acting under a contract
49-14 with the commissioner shall provide technical assistance to
49-15 implement proven school readiness components to a school district
49-16 operating a prekindergarten program under this subchapter that is
49-17 not certified by the commissioner following two consecutive review
49-18 cycles. The commissioner is not required to provide assistance to a
49-19 school district under this subsection if funding is not available.
49-20 (c) The commissioner may adopt rules as necessary to
49-21 implement this section.
49-22 SECTION 8.06. Subsection (a), Section 41.002, Education
49-23 Code, is amended to read as follows:
49-24 (a) A school district may not have a wealth per student that
49-25 exceeds:
49-26 (1) the wealth per student that generates the amount
49-27 of maintenance and operations tax revenue per weighted student
50-1 available to a district with maintenance and operations tax revenue
50-2 per cent of tax effort equal to the maximum amount provided per cent
50-3 under Section 42.101(a) [42.101], for the district's maintenance
50-4 and operations tax effort equal to or less than the rate equal to
50-5 the product of the state compression percentage, as determined
50-6 under Section 42.2516, multiplied by the maintenance and operations
50-7 tax rate adopted by the district for the 2005 tax year;
50-8 (2) the wealth per student that generates the amount
50-9 of maintenance and operations tax revenue per weighted student
50-10 available to the Austin Independent School District, as determined
50-11 by the commissioner in cooperation with the Legislative Budget
50-12 Board, for the first six cents by which the district's maintenance
50-13 and operations tax rate exceeds the rate equal to the product of the
50-14 state compression percentage, as determined under Section 42.2516,
50-15 multiplied by the maintenance and operations tax rate adopted by
50-16 the district for the 2005 tax year, subject to Section 41.093(b-1);
50-17 or
50-18 (3) $319,500, for the district's maintenance and
50-19 operations tax effort that exceeds the first six cents by which the
50-20 district's maintenance and operations tax effort exceeds the rate
50-21 equal to the product of the state compression percentage, as
50-22 determined under Section 42.2516, multiplied by the maintenance and
50-23 operations tax rate adopted by the district for the 2005 tax year.
50-24 SECTION 8.07. Section 42.003, Education Code, is amended by
50-25 amending Subsection (b) and adding Subsection (b-1) to read as
50-26 follows:
50-27 (b) A student to whom Subsection (a) does not apply is
51-1 entitled to the benefits of the Foundation School Program if the
51-2 student is enrolled in a prekindergarten class under Section 29.153
51-3 that participates in a school readiness certification system
51-4 established by the commissioner or that has received a waiver from
51-5 participation under Section 29.1532(d).
51-6 (b-1) For the 2012-2013 school year, the commissioner may
51-7 withhold from a school district an amount of the funds appropriated
51-8 to the district for allotments for prekindergarten students
51-9 enrolled in a classroom that participates in a school readiness
51-10 certification system established by the commissioner to pay the
51-11 costs of the district's participation in the school readiness
51-12 certification system. The commissioner may also withhold an amount
51-13 of revenue to which a school district is otherwise entitled under
51-14 Section 42.2516 to ensure that each school district in this state
51-15 pays a comparable amount of the costs of participation in the
51-16 system. This subsection expires September 1, 2013.
51-17 SECTION 8.08. The heading to Section 42.101, Education
51-18 Code, is amended to read as follows:
51-19 Sec. 42.101. BASIC AND REGULAR PROGRAM ALLOTMENTS
51-20 [ALLOTMENT].
51-21 SECTION 8.09. Effective September 1, 2011, Section 42.101,
51-22 Education Code, is amended by amending Subsections (a) and (b) and
51-23 adding Subsections (c) and (c-1) to read as follows:
51-24 (a) The basic [For each student in average daily attendance,
51-25 not including the time students spend each day in special education
51-26 programs in an instructional arrangement other than mainstream or
51-27 career and technology education programs, for which an additional
52-1 allotment is made under Subchapter C, a district is entitled to an]
52-2 allotment is an amount equal to the lesser of $4,765 or the amount
52-3 that results from the following formula:
52-4 A = $4,765 X (DCR/MCR)
52-5 where:
52-6 "A" is the resulting amount for [allotment to which] a
52-7 district [is entitled];
52-8 "DCR" is the district's compressed tax rate, which is the
52-9 product of the state compression percentage, as determined under
52-10 Section 42.2516, multiplied by the maintenance and operations tax
52-11 rate adopted by the district for the 2005 tax year; and
52-12 "MCR" is the state maximum compressed tax rate, which is the
52-13 product of the state compression percentage, as determined under
52-14 Section 42.2516, multiplied by $1.50.
52-15 (b) A greater amount for any school year for the basic
52-16 allotment under Subsection (a) may be provided by appropriation.
52-17 (c) A school district is entitled to a regular program
52-18 allotment equal to the amount that results from the following
52-19 formula:
52-20 RPA = ADA X AA X RPAF
52-21 where:
52-22 "RPA" is the regular program allotment to which the district
52-23 is entitled;
52-24 "ADA" is the number of students in average daily attendance
52-25 in a district, not including the time students spend each day in
52-26 special education programs in an instructional arrangement other
52-27 than mainstream or career and technology education programs, for
53-1 which an additional allotment is made under Subchapter C;
53-2 "AA" is the district's adjusted basic allotment, as
53-3 determined under Section 42.102 and, if applicable, as further
53-4 adjusted under Section 42.103; and
53-5 "RPAF" is the regular program adjustment factor, which is
53-6 1.00 or a different amount established by appropriation.
53-7 (c-1) Notwithstanding Subsection (c), the regular program
53-8 adjustment factor ("RPAF") is 0.98 for the 2011-2012 and 2012-2013
53-9 school years. This subsection expires September 1, 2013.
53-10 SECTION 8.10. Effective September 1, 2015, Subsection (a),
53-11 Section 42.101, Education Code, is amended to read as follows:
53-12 (a) The basic [For each student in average daily attendance,
53-13 not including the time students spend each day in special education
53-14 programs in an instructional arrangement other than mainstream or
53-15 career and technology education programs, for which an additional
53-16 allotment is made under Subchapter C, a district is entitled to an]
53-17 allotment is an amount equal to the lesser of $4,900 [$4,765] or the
53-18 amount that results from the following formula:
53-19 A = $4,900 [$4,765] X (DCR/MCR)
53-20 where:
53-21 "A" is the resulting amount for [allotment to which] a
53-22 district [is entitled];
53-23 "DCR" is the district's compressed tax rate, which is the
53-24 product of the state compression percentage, as determined under
53-25 Section 42.2516, multiplied by the maintenance and operations tax
53-26 rate adopted by the district for the 2005 tax year; and
53-27 "MCR" is the state maximum compressed tax rate, which is the
54-1 product of the state compression percentage, as determined under
54-2 Section 42.2516, multiplied by $1.50.
54-3 SECTION 8.11. Effective September 1, 2016, Subsection (a),
54-4 Section 42.101, Education Code, is amended to read as follows:
54-5 (a) The basic [For each student in average daily attendance,
54-6 not including the time students spend each day in special education
54-7 programs in an instructional arrangement other than mainstream or
54-8 career and technology education programs, for which an additional
54-9 allotment is made under Subchapter C, a district is entitled to an]
54-10 allotment is an amount equal to the lesser of $5,000 [$4,765] or the
54-11 amount that results from the following formula:
54-12 A = $5,000 [$4,765] X (DCR/MCR)
54-13 where:
54-14 "A" is the resulting amount for [allotment to which] a
54-15 district [is entitled];
54-16 "DCR" is the district's compressed tax rate, which is the
54-17 product of the state compression percentage, as determined under
54-18 Section 42.2516, multiplied by the maintenance and operations tax
54-19 rate adopted by the district for the 2005 tax year; and
54-20 "MCR" is the state maximum compressed tax rate, which is the
54-21 product of the state compression percentage, as determined under
54-22 Section 42.2516, multiplied by $1.50.
54-23 SECTION 8.12. Section 42.105, Education Code, is amended to
54-24 read as follows:
54-25 Sec. 42.105. SPARSITY ADJUSTMENT. Notwithstanding
54-26 Sections 42.101, 42.102, and 42.103, a school district that has
54-27 fewer than 130 students in average daily attendance shall be
55-1 provided a regular program [an adjusted basic] allotment on the
55-2 basis of 130 students in average daily attendance if it offers a
55-3 kindergarten through grade 12 program and has preceding or current
55-4 year's average daily attendance of at least 90 students or is 30
55-5 miles or more by bus route from the nearest high school district. A
55-6 district offering a kindergarten through grade 8 program whose
55-7 preceding or current year's average daily attendance was at least
55-8 50 students or which is 30 miles or more by bus route from the
55-9 nearest high school district shall be provided a regular program
55-10 [an adjusted basic] allotment on the basis of 75 students in average
55-11 daily attendance. An average daily attendance of 60 students shall
55-12 be the basis of providing the regular program [adjusted basic]
55-13 allotment if a district offers a kindergarten through grade 6
55-14 program and has preceding or current year's average daily
55-15 attendance of at least 40 students or is 30 miles or more by bus
55-16 route from the nearest high school district.
55-17 SECTION 8.13. Subsection (a), Section 42.251, Education
55-18 Code, is amended to read as follows:
55-19 (a) The sum of the regular program [basic] allotment under
55-20 Subchapter B and the special allotments under Subchapter C,
55-21 computed in accordance with this chapter, constitute the tier one
55-22 allotments. The sum of the tier one allotments and the guaranteed
55-23 yield allotments under Subchapter F, computed in accordance with
55-24 this chapter, constitute the total cost of the Foundation School
55-25 Program.
55-26 SECTION 8.14. Subchapter E, Chapter 42, Education Code, is
55-27 amended by adding Section 42.2514 to read as follows:
56-1 Sec. 42.2514. ADDITIONAL STATE AID FOR TAX INCREMENT
56-2 FINANCING PAYMENTS. For each school year, a school district,
56-3 including a school district that is otherwise ineligible for state
56-4 aid under this chapter, is entitled to state aid in an amount equal
56-5 to the amount the district is required to pay into the tax increment
56-6 fund for a reinvestment zone under Section 311.013(n), Tax Code.
56-7 SECTION 8.15. Effective September 1, 2011, Section 42.2516,
56-8 Education Code, is amended by amending Subsections (b), (d), and
56-9 (f-2) and adding Subsection (i) to read as follows:
56-10 (b) Notwithstanding any other provision of this title, a
56-11 school district that imposes a maintenance and operations tax at a
56-12 rate at least equal to the product of the state compression
56-13 percentage multiplied by the maintenance and operations tax rate
56-14 adopted by the district for the 2005 tax year is entitled to at
56-15 least the amount of state revenue necessary to provide the district
56-16 with the sum of:
56-17 (1) the percentage specified by Subsection (i) of the
56-18 amount, as calculated under Subsection (e), [the amount] of state
56-19 and local revenue per student in weighted average daily attendance
56-20 for maintenance and operations that the district would have
56-21 received during the 2009-2010 school year under Chapter 41 and this
56-22 chapter, as those chapters existed on January 1, 2009, at a
56-23 maintenance and operations tax rate equal to the product of the
56-24 state compression percentage for that year multiplied by the
56-25 maintenance and operations tax rate adopted by the district for the
56-26 2005 tax year;
56-27 (2) the percentage specified by Subsection (i) of an
57-1 amount equal to the product of $120 multiplied by the number of
57-2 students in weighted average daily attendance in the district; and
57-3 (3) [an amount equal to the amount the district is
57-4 required to pay into the tax increment fund for a reinvestment zone
57-5 under Section 311.013(n), Tax Code, in the current tax year; and
57-6 [(4)] any amount to which the district is entitled
57-7 under Section 42.106.
57-8 (d) In determining the amount to which a district is
57-9 entitled under Subsection (b)(1), the commissioner shall:
57-10 (1) include the percentage specified by Subsection (i)
57-11 of any amounts received by the district during the 2008-2009 school
57-12 year under Rider 86, page III-23, Chapter 1428 (H.B. 1), Acts of the
57-13 80th Legislature, Regular Session, 2007 (the General
57-14 Appropriations Act); and
57-15 (2) for a school district that paid tuition under
57-16 Section 25.039 during the 2008-2009 school year, reduce the amount
57-17 to which the district is entitled by the amount of tuition paid
57-18 during that school year.
57-19 (f-2) The rules adopted by the commissioner under
57-20 Subsection (f-1) must:
57-21 (1) require the commissioner to determine, as if this
57-22 section did not exist, the effect under Chapter 41 and this chapter
57-23 of a school district's action described by Subsection (f-1)(1),
57-24 (2), (3), or (4) on the total state revenue to which the district
57-25 would be entitled or the cost to the district of purchasing
57-26 sufficient attendance credits to reduce the district's wealth per
57-27 student to the equalized wealth level; and
58-1 (2) require an increase or reduction in the amount of
58-2 state revenue to which a school district is entitled under
58-3 Subsection (b)(1) [(b)] that is substantially equivalent to any
58-4 change in total state revenue or the cost of purchasing attendance
58-5 credits that would apply to the district if this section did not
58-6 exist.
58-7 (i) The percentage to be applied for purposes of Subsections
58-8 (b)(1) and (2) and Subsection (d)(1) is 93.50 percent for the
58-9 2011-2012 school year and 92.35 percent for each subsequent school
58-10 year. A different percentage for any school year may be established
58-11 by appropriation.
58-12 SECTION 8.16. Effective September 1, 2016, the heading to
58-13 Section 42.2516, Education Code, is amended to read as follows:
58-14 Sec. 42.2516. STATE COMPRESSION PERCENTAGE [ADDITIONAL
58-15 STATE AID FOR TAX REDUCTION].
58-16 SECTION 8.17. Effective September 1, 2016, Subsection (a),
58-17 Section 42.2516, Education Code, is amended to read as follows:
58-18 (a) In this title [section], "state compression percentage"
58-19 means the percentage[, as determined by the commissioner,] of a
58-20 school district's adopted maintenance and operations tax rate for
58-21 the 2005 tax year that serves as the basis for state funding [for
58-22 tax rate reduction under this section]. If the state compression
58-23 percentage is not established by appropriation for a school year,
58-24 the [The] commissioner shall determine the state compression
58-25 percentage for each school year based on the percentage by which a
58-26 district is able to reduce the district's maintenance and
58-27 operations tax rate for that year, as compared to the district's
59-1 adopted maintenance and operations tax rate for the 2005 tax year,
59-2 as a result of state funds appropriated for [distribution under
59-3 this section for] that year from the property tax relief fund
59-4 established under Section 403.109, Government Code, or from another
59-5 funding source available for school district property tax relief.
59-6 SECTION 8.18. Effective September 1, 2011, Subsection (a),
59-7 Section 42.25161, Education Code, is amended to read as follows:
59-8 (a) The commissioner shall provide South Texas Independent
59-9 School District with the amount of state aid necessary to ensure
59-10 that the district receives an amount of state and local revenue per
59-11 student in weighted average daily attendance that is at least the
59-12 percentage specified by Section 42.2516(i) of $120 greater than the
59-13 amount the district would have received per student in weighted
59-14 average daily attendance during the 2009-2010 school year under
59-15 this chapter, as it existed on January 1, 2009, at a maintenance and
59-16 operations tax rate equal to the product of the state compression
59-17 percentage multiplied by the maintenance and operations tax rate
59-18 adopted by the district for the 2005 tax year, provided that the
59-19 district imposes a maintenance and operations tax at that rate.
59-20 SECTION 8.19. Subchapter E, Chapter 42, Education Code, is
59-21 amended by adding Section 42.2525 to read as follows:
59-22 Sec. 42.2525. ADJUSTMENTS FOR CERTAIN DEPARTMENT OF DEFENSE
59-23 DISTRICTS. The commissioner is granted the authority to ensure
59-24 that Department of Defense school districts do not receive more
59-25 than an eight percent reduction should the federal government
59-26 reduce appropriations.
59-27 SECTION 8.20. Effective September 1, 2011, Subsection (h),
60-1 Section 42.253, Education Code, is amended to read as follows:
60-2 (h) If the amount appropriated for the Foundation School
60-3 Program for the second year of a state fiscal biennium is less than
60-4 the amount to which school districts are entitled for that year, the
60-5 commissioner shall certify the amount of the difference to the
60-6 Legislative Budget Board not later than January 1 of the second year
60-7 of the state fiscal biennium. The Legislative Budget Board shall
60-8 propose to the legislature that the certified amount be transferred
60-9 to the foundation school fund from the economic stabilization fund
60-10 and appropriated for the purpose of increases in allocations under
60-11 this subsection. If the legislature fails during the regular
60-12 session to enact the proposed transfer and appropriation and there
60-13 are not funds available under Subsection (j), the commissioner
60-14 shall adjust [reduce] the total amounts due to each school district
60-15 under this chapter and the total amounts necessary for each school
60-16 district to comply with the requirements of Chapter 41 [amount of
60-17 state funds allocated to each district] by an amount determined by
60-18 applying to each district, including a district receiving funds
60-19 under Section 42.2516, the same percentage adjustment so that the
60-20 total amount of the adjustment to all districts [a method under
60-21 which the application of the same number of cents of increase in tax
60-22 rate in all districts applied to the taxable value of property of
60-23 each district, as determined under Subchapter M, Chapter 403,
60-24 Government Code,] results in an amount [a total levy] equal to the
60-25 total adjustment necessary [reduction]. The following fiscal year:
60-26 (1) [,] a district's entitlement under this section is
60-27 increased by an amount equal to the adjustment [reduction] made
61-1 under this subsection; and
61-2 (2) the amount necessary for a district to comply with
61-3 the requirements of Chapter 41 is reduced by an amount equal to the
61-4 adjustment made under this subsection.
61-5 SECTION 8.21. Effective September 1, 2016, Subsection (h),
61-6 Section 42.253, Education Code, is amended to read as follows:
61-7 (h) If the amount appropriated for the Foundation School
61-8 Program for the second year of a state fiscal biennium is less than
61-9 the amount to which school districts are entitled for that year, the
61-10 commissioner shall certify the amount of the difference to the
61-11 Legislative Budget Board not later than January 1 of the second year
61-12 of the state fiscal biennium. The Legislative Budget Board shall
61-13 propose to the legislature that the certified amount be transferred
61-14 to the foundation school fund from the economic stabilization fund
61-15 and appropriated for the purpose of increases in allocations under
61-16 this subsection. If the legislature fails during the regular
61-17 session to enact the proposed transfer and appropriation and there
61-18 are not funds available under Subsection (j), the commissioner
61-19 shall adjust [reduce] the total amounts due to each school district
61-20 under this chapter and the total amounts necessary for each school
61-21 district to comply with the requirements of Chapter 41 [amount of
61-22 state funds allocated to each district] by an amount determined by
61-23 applying to each district the same percentage adjustment so that
61-24 the total amount of the adjustment to all districts [a method under
61-25 which the application of the same number of cents of increase in tax
61-26 rate in all districts applied to the taxable value of property of
61-27 each district, as determined under Subchapter M, Chapter 403,
62-1 Government Code,] results in an amount [a total levy] equal to the
62-2 total adjustment necessary [reduction]. The following fiscal year:
62-3 (1) [,] a district's entitlement under this section is
62-4 increased by an amount equal to the adjustment [reduction] made
62-5 under this subsection; and
62-6 (2) the amount necessary for a district to comply with
62-7 the requirements of Chapter 41 is reduced by an amount equal to the
62-8 adjustment made under this subsection.
62-9 SECTION 8.22. Subsection (b), Section 42.260, Education
62-10 Code, is amended to read as follows:
62-11 (b) For each year, the commissioner shall certify to each
62-12 school district or participating charter school the amount of[:
62-13 [(1)] additional funds to which the district or school
62-14 is entitled due to the increase made by H.B. No. 3343, Acts of the
62-15 77th Legislature, Regular Session, 2001, to:
62-16 (1) [(A)] the equalized wealth level under Section
62-17 41.002; or
62-18 (2) [(B)] the guaranteed level of state and local
62-19 funds per weighted student per cent of tax effort under Section
62-20 42.302[; or
62-21 [(2) additional state aid to which the district or
62-22 school is entitled under Section 42.2513].
62-23 SECTION 8.23. Section 44.004, Education Code, is amended by
62-24 adding Subsection (g-1) to read as follows:
62-25 (g-1) If the rate calculated under Subsection
62-26 (c)(5)(A)(ii)(b) decreases after the publication of the notice
62-27 required by this section, the president is not required to publish
63-1 another notice or call another meeting to discuss and adopt the
63-2 budget and the proposed lower tax rate.
63-3 SECTION 8.24. Subsection (a), Section 26.05, Tax Code, is
63-4 amended to read as follows:
63-5 (a) The governing body of each taxing unit, before the later
63-6 of September 30 or the 60th day after the date the certified
63-7 appraisal roll is received by the taxing unit, shall adopt a tax
63-8 rate for the current tax year and shall notify the assessor for the
63-9 unit of the rate adopted. The tax rate consists of two components,
63-10 each of which must be approved separately. The components are:
63-11 (1) for a taxing unit other than a school district, the
63-12 rate that, if applied to the total taxable value, will impose the
63-13 total amount published under Section 26.04(e)(3)(C), less any
63-14 amount of additional sales and use tax revenue that will be used to
63-15 pay debt service, or, for a school district, the rate calculated
63-16 [published] under Section 44.004(c)(5)(A)(ii)(b), Education Code;
63-17 and
63-18 (2) the rate that, if applied to the total taxable
63-19 value, will impose the amount of taxes needed to fund maintenance
63-20 and operation expenditures of the unit for the next year.
63-21 SECTION 8.25. Effective September 1, 2016, Subsection (i),
63-22 Section 26.08, Tax Code, is amended to read as follows:
63-23 (i) For purposes of this section, the effective maintenance
63-24 and operations tax rate of a school district is the tax rate that,
63-25 applied to the current total value for the district, would impose
63-26 taxes in an amount that, when added to state funds that would be
63-27 distributed to the district under Chapter 42, Education Code, for
64-1 the school year beginning in the current tax year using that tax
64-2 rate, [including state funds that will be distributed to the
64-3 district in that school year under Section 42.2516, Education
64-4 Code,] would provide the same amount of state funds distributed
64-5 under Chapter 42, Education Code, [including state funds
64-6 distributed under Section 42.2516, Education Code,] and
64-7 maintenance and operations taxes of the district per student in
64-8 weighted average daily attendance for that school year that would
64-9 have been available to the district in the preceding year if the
64-10 funding elements for Chapters 41 and 42, Education Code, for the
64-11 current year had been in effect for the preceding year.
64-12 SECTION 8.26. Subsection (n), Section 311.013, Tax Code, is
64-13 amended to read as follows:
64-14 (n) This subsection applies only to a school district whose
64-15 taxable value computed under Section 403.302(d), Government Code,
64-16 is reduced in accordance with Subdivision (4) of that
64-17 subsection. In addition to the amount otherwise required to be
64-18 paid into the tax increment fund, the district shall pay into the
64-19 fund an amount equal to the amount by which the amount of taxes the
64-20 district would have been required to pay into the fund in the
64-21 current year if the district levied taxes at the rate the district
64-22 levied in 2005 exceeds the amount the district is otherwise
64-23 required to pay into the fund in the year of the reduction. This
64-24 additional amount may not exceed the amount the school district
64-25 receives in state aid for the current tax year under Section
64-26 42.2514, Education Code. The school district shall pay the
64-27 additional amount after the district receives the state aid to
65-1 which the district is entitled for the current tax year under
65-2 Section 42.2514, Education Code.
65-3 SECTION 8.27. Effective September 1, 2011, the following
65-4 provisions of the Education Code are repealed:
65-5 (1) Subsections (c-2), (c-3), and (e), Section 21.402;
65-6 (2) Section 42.008; and
65-7 (3) Subsections (a-1) and (a-2), Section 42.101.
65-8 SECTION 8.28. (a) Effective September 1, 2016, the
65-9 following provisions of the Education Code are repealed:
65-10 (1) Section 41.0041;
65-11 (2) Subsections (b), (b-1), (b-2), (c), (d), (e), (f),
65-12 (f-1), (f-2), (f-3), and (i), Section 42.2516;
65-13 (3) Section 42.25161;
65-14 (4) Subsection (c), Section 42.2523;
65-15 (5) Subsection (g), Section 42.2524;
65-16 (6) Subsection (c-1), Section 42.253; and
65-17 (7) Section 42.261.
65-18 (b) Effective September 1, 2016, Subsections (i-1) and (j),
65-19 Section 26.08, Tax Code, are repealed.
65-20 SECTION 8.29. It is the intent of the legislature, between
65-21 fiscal year 2014 and fiscal year 2017, to continue to reduce the
65-22 amount of Additional State Aid For Tax Reduction (ASATR) to which a
65-23 school district is entitled under Section 42.2516, Education Code,
65-24 and to increase the basic allotment to which a school district is
65-25 entitled under Section 42.101, Education Code.
65-26 SECTION 8.30. Except as otherwise provided by this Act, the
65-27 changes in law made by this Act to Chapter 42, Education Code, apply
66-1 beginning with the 2011-2012 school year.
66-2 SECTION 8.31. The change in law made by Subsection (g-1),
66-3 Section 44.004, Education Code, as added by this Act, applies
66-4 beginning with adoption of a tax rate for the 2011 tax year.
66-5 ARTICLE 9. EFFECTIVE DATE
66-6 SECTION 9.01. Except as otherwise provided by this Act,
66-7 this Act takes effect September 1, 2011.
0 1 2 3 4
.5464 [.6226] .5582 [.6360] .5698 [.6492] .5816 [.6627] .6064 [.6909]
5 6 7 8 9
.6312 [.7192] .6560 [.7474] .6790 [.7737] .7008 [.7985] .7214 [.8220]
10 11 12 13 14
.7408 [.8441] .7592 [.8650] .7768 [.8851] .7930 [.9035] .8086 [.9213]
15 16 17 18 19
.8232 [.9380] .8372 [.9539] .8502 [.9687] .8626 [.9828] .8744 [.9963]
.8854 [1.009]
Years of Monthly
Experience Salary
0 2,732
1 2,791
2 2,849
3 2,908
4 3,032
5 3,156
6 3,280
7 3,395
8 3,504
9 3,607
10 3,704
11 3,796
12 3,884
13 3,965
14 4,043
15 4,116
16 4,186
17 4,251
18 4,313
19 4,372
20 & Over 4,427