Texas 2017 - 85th Regular

Texas House Bill HB3737 Compare Versions

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1	1	85R10167 KJE-F
2	2	By: Hinojosa H.B. No. 3737
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the public school finance system.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	ARTICLE 1. PUBLIC SCHOOL FINANCE
10	10	SECTION 1.01. Section 41.001(3), Education Code, is amended
11	11	to read as follows:
12	12	(3) "Weighted average daily attendance" has the
13	13	meaning assigned by Section 42.0053 [42.302].
14	14	SECTION 1.02. Section 41.002(a), Education Code, is amended
15	15	to read as follows:
16	16	(a) A school district may not have a wealth per student that
17	17	exceeds the product of the guaranteed level, as defined by Section
18	18	42.107, multiplied by 10,000[:
19	19	[(1) the wealth per student that generates the amount
20	20	of maintenance and operations tax revenue per weighted student
21	21	available to a district with maintenance and operations tax revenue
22	22	per cent of tax effort equal to the maximum amount provided per cent
23	23	under Section 42.101(a) or (b), for the district's maintenance and
24	24	operations tax effort equal to or less than the rate equal to the
25	25	sum of the product of the state compression percentage, as
26	26	determined under Section 42.2516, multiplied by the maintenance and
27	27	operations tax rate adopted by the district for the 2005 tax year
28	28	and any additional tax effort included in calculating the
29	29	district's compressed tax rate under Section 42.101(a-1);
30	30	[(2) the wealth per student that generates the amount
31	31	of maintenance and operations tax revenue per weighted student
32	32	available to the Austin Independent School District, as determined
33	33	by the commissioner in cooperation with the Legislative Budget
34	34	Board, for the first six cents by which the district's maintenance
35	35	and operations tax rate exceeds the rate equal to the sum of the
36	36	product of the state compression percentage, as determined under
37	37	Section 42.2516, multiplied by the maintenance and operations tax
38	38	rate adopted by the district for the 2005 tax year and any
39	39	additional tax effort included in calculating the district's
40	40	compressed tax rate under Section 42.101(a-1), subject to Section
41	41	41.093(b-1); or
42	42	[(3) $319,500, for the district's maintenance and
43	43	operations tax effort that exceeds the amount of tax effort
44	44	described by Subdivision (2)].
45	45	SECTION 1.03. Section 41.006(a), Education Code, is amended
46	46	to read as follows:
47	47	(a) The commissioner may adopt rules necessary for the
48	48	implementation of this chapter. The rules may provide for the
49	49	commissioner to make necessary adjustments to the provisions of
50	50	Chapter 42[, including providing for the commissioner to make an
51	51	adjustment in the funding element established by Section 42.302, at
52	52	the earliest date practicable, to the amount the commissioner
53	53	believes, taking into consideration options exercised by school
54	54	districts under this chapter and estimates of student enrollments,
55	55	will match appropriation levels].
56	56	SECTION 1.04. Section 41.061, Education Code, is amended to
57	57	read as follows:
58	58	Sec. 41.061. AGREEMENT. (a) By agreement of the governing
59	59	boards of two school districts, territory may be detached from one
60	60	of the districts and annexed to the other district if, after the
61	61	action,[:
62	62	[(1)] the wealth per student of the district from
63	63	which territory is detached and the wealth per student of the
64	64	district to which territory is annexed are [is] equal to or less
65	65	than the equalized wealth level[; and
66	66	[(2) the wealth per student of the district to which
67	67	territory is annexed is not greater than the greatest level for
68	68	which funds are provided under Subchapter F, Chapter 42].
69	69	(b) The agreement is not effective unless the commissioner
70	70	certifies that, after all actions taken under this chapter, the
71	71	wealth per student of each district involved will be equal to or
72	72	less than the equalized wealth level [applicable level permitted by
73	73	Subsection (a)].
74	74	SECTION 1.05. Section 41.093(a), Education Code, is amended
75	75	to read as follows:
76	76	(a) The [Subject to Subsection (b-1), the] cost of each
77	77	credit is an amount equal to the greater of:
78	78	(1) the amount of the district's maintenance and
79	79	operations tax revenue per student in weighted average daily
80	80	attendance for the school year for which the contract is executed;
81	81	or
82	82	(2) the amount of the statewide district average of
83	83	maintenance and operations tax revenue per student in weighted
84	84	average daily attendance for the school year preceding the school
85	85	year for which the contract is executed.
86	86	SECTION 1.06. Section 41.099(a), Education Code, is amended
87	87	to read as follows:
88	88	(a) Sections [41.002(e),] 41.094, 41.097, and 41.098 apply
89	89	only to a district that:
90	90	(1) executes an agreement to purchase all attendance
91	91	credits necessary to reduce the district's wealth per student to
92	92	the equalized wealth level;
93	93	(2) executes an agreement to purchase attendance
94	94	credits and an agreement under Subchapter E to contract for the
95	95	education of nonresident students who transfer to and are educated
96	96	in the district but who are not charged tuition; or
97	97	(3) executes an agreement under Subchapter E to
98	98	contract for the education of nonresident students:
99	99	(A) to an extent that does not provide more than
100	100	10 percent of the reduction in wealth per student required for the
101	101	district to achieve a wealth per student that is equal to or less
102	102	than the equalized wealth level; and
103	103	(B) under which all revenue paid by the district
104	104	to other districts, in excess of the reduction in state aid that
105	105	results from counting the weighted average daily attendance of the
106	106	students served in the contracting district, is required to be used
107	107	for funding a consortium of at least three districts in a county
108	108	with a population of less than 40,000 that is formed to support a
109	109	technology initiative.
110	110	SECTION 1.07. Sections 41.206(a), (f), (g), and (i),
111	111	Education Code, are amended to read as follows:
112	112	(a) The commissioner shall annex property detached under
113	113	Section 41.205 to school districts eligible for annexation in
114	114	accordance with this section. A school district is eligible for
115	115	annexation of property to it under this subchapter only if, before
116	116	any detachments or annexations are made in a year, the district's
117	117	wealth per student is less than the equalized wealth level
118	118	[greatest level for which funds are provided under Subchapter F,
119	119	Chapter 42].
120	120	(f) If only one school district is eligible to annex
121	121	property detached from a school district within a priority group
122	122	established by Subsections (d) and (e), the commissioner shall
123	123	annex property to that district until it reaches a wealth per
124	124	student equal as nearly as possible to the equalized wealth level
125	125	[greatest level for which funds are provided under Subchapter F,
126	126	Chapter 42,] by annexing whole parcels or items of property. Any
127	127	remaining detached property shall be annexed to eligible school
128	128	districts in the next priority group as provided by this section.
129	129	(g) If more than one school district is eligible to annex
130	130	property detached from a school district within a priority group
131	131	established by Subsections (d) and (e), the commissioner shall
132	132	first annex property to the district within the priority group to
133	133	which could be annexed the most taxable value of property without
134	134	increasing its wealth per student above the equalized wealth level
135	135	[greatest level for which funds are provided under Subchapter F,
136	136	Chapter 42,] until that district reaches a wealth per student equal
137	137	as nearly as possible to the equalized wealth level [greatest level
138	138	for which funds are provided under Subchapter F, Chapter 42,] by
139	139	annexing whole parcels or items of property. Then any additional
140	140	detached property shall be annexed in the same manner to other
141	141	eligible school districts in the same priority group in descending
142	142	order of capacity to receive taxable value of annexed property
143	143	without increasing the district's wealth per student above the
144	144	equalized wealth level [greatest level for which funds are provided
145	145	under Subchapter F, Chapter 42]. If every school district in a
146	146	priority group reaches a wealth per student equal to the equalized
147	147	wealth level [greatest level for which funds are provided under
148	148	Subchapter F, Chapter 42,] as nearly as possible, the remaining
149	149	detached property shall be annexed to school districts in the next
150	150	priority group in the manner provided by this section.
151	151	(i) The commissioner may order the annexation of a portion
152	152	of a parcel or item of property, including a portion of property
153	153	treated as a whole parcel or item under Subsection (h), if:
154	154	(1) the annexation of the whole parcel or item would
155	155	result in the district eligible to receive it in the appropriate
156	156	priority order provided by this section having a wealth per student
157	157	greater than $10,000 more than the equalized wealth level [greatest
158	158	level for which funds are provided under Subchapter F, Chapter 42];
159	159	or
160	160	(2) the commissioner determines that annexation of
161	161	portions of the parcel or item would reduce disparities in district
162	162	wealth per student more efficiently than would be possible if the
163	163	parcel or item were annexed as a whole.
164	164	SECTION 1.08. Section 41.257, Education Code, is amended to
165	165	read as follows:
166	166	Sec. 41.257. APPLICATION OF SMALL AND SPARSE ADJUSTMENTS
167	167	AND TRANSPORTATION ALLOTMENT. The budget of the consolidated
168	168	district must apply the benefit of the adjustment or allotment to
169	169	the schools of the consolidating district to which Section 42.103,
170	170	42.105, or 42.202 [42.155] would have applied in the event that the
171	171	consolidated district still qualifies as a small or sparse
172	172	district.
173	173	SECTION 1.09. Section 42.002, Education Code, is amended to
174	174	read as follows:
175	175	Sec. 42.002. PURPOSES OF FOUNDATION SCHOOL PROGRAM. [(a)]
176	176	The purposes of the Foundation School Program set forth in this
177	177	chapter and Chapter 46 are to guarantee that each school district in
178	178	the state has:
179	179	(1) substantially equal access to substantially
180	180	equalized financing and adequate resources to provide each eligible
181	181	student an [a basic] instructional program that is rated acceptable
182	182	or higher under Section 39.054, that meets other applicable legal
183	183	standards, and that is [and facilities] suitable to the student's
184	184	educational needs; and
185	185	(2) adequate resources to provide each eligible
186	186	student with [access to a substantially equalized program of
187	187	financing in excess of basic costs for certain services, as
188	188	provided by this chapter.
189	189	[(b) The Foundation School Program consists of:
190	190	[(1) two tiers that in combination provide for:
191	191	[(A) sufficient financing for all school
192	192	districts to provide a basic program of education that is rated
193	193	acceptable or higher under Section 39.054 and meets other
194	194	applicable legal standards; and
195	195	[(B) substantially equal access to funds to
196	196	provide an enriched program; and
197	197	[(2) a] facilities suitable to the student's
198	198	educational needs [component as provided by Chapter 46].
199	199	SECTION 1.10. Section 42.005, Education Code, is amended by
200	200	adding Subsection (a-1) to read as follows:
201	201	(a-1) In determining a district's average daily attendance
202	202	for purposes other than the computation of a district's program
203	203	student count under Section 42.101, the commissioner shall include
204	204	the number of full-time equivalent students in:
205	205	(1) a special education program in an instructional
206	206	arrangement other than mainstream; or
207	207	(2) a career and technology program for which a weight
208	208	is provided under Section 42.101(c)(17).
209	209	SECTION 1.11. Subchapter A, Chapter 42, Education Code, is
210	210	amended by adding Section 42.0053 to read as follows:
211	211	Sec. 42.0053. WEIGHTED AVERAGE DAILY ATTENDANCE. (a) In
212	212	this chapter, "weighted average daily attendance" of a school
213	213	district is the greater of:
214	214	(1) the district's cost-adjusted program student count
215	215	as determined under Section 42.102; or
216	216	(2) the district's scale-adjusted program student
217	217	count as determined under Section 42.103.
218	218	(b) For a district entitled to a sparsity adjustment under
219	219	Section 42.105, that adjustment is made before making the
220	220	determinations specified in Subsection (a).
221	221	SECTION 1.12. Section 42.007(c), Education Code, is amended
222	222	to read as follows:
223	223	(c) The funding elements must include:
224	224	(1) weights designed to reflect student educational
225	225	program costs [a basic allotment for the purposes of Section 42.101
226	226	that, when combined with the guaranteed yield component provided by
227	227	Subchapter F, represents the cost per student of a regular
228	228	education program that meets all mandates of law and regulation];
229	229	(2) adjustments designed to reflect the variation in
230	230	known resource costs and costs of education beyond the control of
231	231	school districts;
232	232	(3) appropriate program cost differentials and other
233	233	funding elements [for the programs authorized under Subchapter C,
234	234	with the program funding level expressed as dollar amounts and as
235	235	weights applied to the adjusted basic allotment for the appropriate
236	236	year];
237	237	(4) the maximum guaranteed level of [qualified] state
238	238	and local funds per student for the purposes of Section 42.107
239	239	[Subchapter F];
240	240	(5) the [enrichment and facilities] tax rate under
241	241	Section 42.108 [Subchapter F];
242	242	(6) the computation of students in weighted average
243	243	daily attendance under Section 42.0053 [42.302]; and
244	244	(7) the amount to be appropriated for the school
245	245	facilities assistance program under Chapter 46.
246	246	SECTION 1.13. Subchapter A, Chapter 42, Education Code, is
247	247	amended by adding Section 42.0091 to read as follows:
248	248	Sec. 42.0091. REPORT ON STATE FUNDING LEVELS. (a) Not
249	249	later than July 1 of each year, the commissioner shall:
250	250	(1) determine whether the estimated total amount of
251	251	state funding provided to a school district or open-enrollment
252	252	charter school under the Foundation School Program and from other
253	253	state funding sources for the following school year is greater than
254	254	or less than the total amount in state funding provided for the
255	255	school year in which the determination is made; and
256	256	(2) post on the agency's Internet website a report on
257	257	the amount and percentage of the increase or decrease in the total
258	258	amount of state funding determined under Subdivision (1).
259	259	(b) The report under Subsection (a)(2) must:
260	260	(1) be disaggregated by funding source; and
261	261	(2) include a calculation of the amount and percentage
262	262	of the increase or decrease in the total amount of state funding per
263	263	student in average daily attendance and per student in weighted
264	264	average daily attendance.
265	265	SECTION 1.14. The heading to Subchapter B, Chapter 42,
266	266	Education Code, is amended to read as follows:
267	267	SUBCHAPTER B. GUARANTEED YIELD [BASIC ENTITLEMENT]
268	268	SECTION 1.15. Section 42.101, Education Code, is amended to
269	269	read as follows:
270	270	Sec. 42.101. PROGRAM STUDENT COUNT [BASIC ALLOTMENT]. (a)
271	271	In this section:
272	272	(1) "Career and technology education program" means a
273	273	program under Subchapter F, Chapter 29.
274	274	(2) "Full-time equivalent student" means 30 hours of
275	275	contact a week between a student and program personnel.
276	276	(3) "Special education program" means a program under
277	277	Subchapter A, Chapter 29.
278	278	(b) For each school district, the number of students in each
279	279	educational program offered by the district is weighted according
280	280	to the formula:
281	281	WP = S X W
282	282	where:
283	283	"WP" is the weighted number of students in the educational
284	284	program;
285	285	"S" is the number of students in average daily attendance,
286	286	number of full-time equivalent students, or number of students
287	287	enrolled, as appropriate, in the educational program; and
288	288	"W" is the weight for the educational program, as provided by
289	289	Subsection (c).
290	290	(c) The weights are:
291	291	(1) 1.0 for a student in average daily attendance, not
292	292	including time the student spends each day in a special education
293	293	program in an instructional arrangement other than mainstream or in
294	294	a career and technology education program;
295	295	(2) 1.1 for a student in a special education program in
296	296	a mainstream instructional arrangement;
297	297	(3) 5.0 for a full-time equivalent student in a
298	298	special education program in a homebound instructional
299	299	arrangement;
300	300	(4) 3.0 for a full-time equivalent student in a
301	301	special education program in a hospital class instructional
302	302	arrangement;
303	303	(5) 5.0 for a full-time equivalent student in a
304	304	special education program in a speech therapy instructional
305	305	arrangement;
306	306	(6) 3.0 for a full-time equivalent student in a
307	307	special education program in a resource room instructional
308	308	arrangement;
309	309	(7) 3.0 for a full-time equivalent student in a
310	310	special education program in a self-contained, mild and moderate,
311	311	regular campus instructional arrangement;
312	312	(8) 3.0 for a full-time equivalent student in a
313	313	special education program in a self-contained, severe, regular
314	314	campus instructional arrangement;
315	315	(9) 2.7 for a full-time equivalent student in a
316	316	special education program in an off home campus instructional
317	317	arrangement;
318	318	(10) 1.7 for a full-time equivalent student in a
319	319	special education program in a nonpublic day school;
320	320	(11) 2.3 for a full-time equivalent student in a
321	321	special education program vocational adjustment class;
322	322	(12) 4.0 for a student in a special education program
323	323	who resides in a residential care and treatment facility, other
324	324	than a state school, whose parent or guardian does not reside in the
325	325	district and who receives educational services from a local school
326	326	district;
327	327	(13) 2.8 for a student in a special education program
328	328	who resides in a state school;
329	329	(14) 0.3 for a student at risk of dropping out of
330	330	school, as defined by Section 29.081;
331	331	(15) notwithstanding Subdivision (14), 2.41 for a
332	332	full-time equivalent student who is in a remedial and support
333	333	program under Section 29.081 because the student is pregnant;
334	334	(16) 0.2 for a student who is in a bilingual education
335	335	or special language program under Subchapter B, Chapter 29;
336	336	(17) for a full-time equivalent student in an approved
337	337	career and technology education program in grades 9 through 12 or in
338	338	a career and technology program for students with disabilities in
339	339	grades 7 through 12:
340	340	(A) 1.35; and
341	341	(B) 0.01, if the student is enrolled in:
342	342	(i) two or more advanced career and
343	343	technology education classes for a total of three or more credits;
344	344	or
345	345	(ii) an advanced course as part of a
346	346	tech-prep program under Subchapter T, Chapter 61;
347	347	(18) 0.12 or a greater weight as provided by
348	348	appropriation for a student in a program for gifted and talented
349	349	students that the district certifies to the commissioner as
350	350	complying with Subchapter D, Chapter 29;
351	351	(19) except as provided by Subsection (e), 0.1 for a
352	352	student in average daily attendance who is using a public education
353	353	grant under Subchapter G, Chapter 29, to attend school in a district
354	354	other than the district in which the student resides; and
355	355	(20) 0.05 for a student in average daily attendance in
356	356	grades 9 through 12 in the district.
357	357	(d) A district's program student count is equal to the sum
358	358	of the weighted number of students for each educational program
359	359	offered by the district.
360	360	(e) The total number of weights under Subsection (c)(19) to
361	361	which a district is entitled may not exceed the number by which the
362	362	number of students using public education grants to attend school
363	363	in the district exceeds the number of students who reside in the
364	364	district and use public education grants to attend school in
365	365	another district.
366	366	[For each student in average daily attendance, not including
367	367	the time students spend each day in special education programs in an
368	368	instructional arrangement other than mainstream or career and
369	369	technology education programs, for which an additional allotment is
370	370	made under Subchapter C, a district is entitled to an allotment
371	371	equal to the lesser of $4,765 or the amount that results from the
372	372	following formula:
373	373	[A = $4,765 X (DCR/MCR)
374	374	[where:
375	375	["A" is the allotment to which a district is entitled;
376	376	["DCR" is the district's compressed tax rate, which is the
377	377	product of the state compression percentage, as determined under
378	378	Section 42.2516, multiplied by the maintenance and operations tax
379	379	rate adopted by the district for the 2005 tax year; and
380	380	["MCR" is the state maximum compressed tax rate, which is the
381	381	product of the state compression percentage, as determined under
382	382	Section 42.2516, multiplied by $1.50.
383	383	[(a-1) Notwithstanding Subsection (a), for a school
384	384	district that adopted a maintenance and operations tax rate for the
385	385	2005 tax year below the maximum rate permitted by law for that year,
386	386	the district's compressed tax rate ("DCR") includes the portion of
387	387	the district's current maintenance and operations tax rate in
388	388	excess of the first six cents above the district's compressed tax
389	389	rate, as defined by Subsection (a), until the district's compressed
390	390	tax rate computed in accordance with this subsection is equal to the
391	391	state maximum compressed tax rate ("MCR").
392	392	[(a-2) Subsection (a-1) applies beginning with the
393	393	2017-2018 school year. For the 2015-2016 and 2016-2017 school
394	394	years, the board of trustees of a school district that adopted a
395	395	maintenance and operations tax rate for the 2005 tax year below the
396	396	maximum rate permitted by law for that year may choose to apply
397	397	Subsection (a-1) to the calculation of the district's compressed
398	398	tax rate ("DCR"). A board of trustees that chooses to apply
399	399	Subsection (a-1) must notify the commissioner of the decision in
400	400	writing not later than September 1 of the affected school
401	401	year. This subsection expires September 1, 2018.
402	402	[(b) A greater amount for any school year may be provided by
403	403	appropriation.
404	404	[(c) This subsection applies to a school district for which
405	405	the compressed tax rate ("DCR") is determined in accordance with
406	406	Subsection (a-1). Any reduction in the district's adopted
407	407	maintenance and operations tax rate is applied to the following
408	408	components of the district's tax rate in the order specified:
409	409	[(1) tax effort described by Section 42.302(a-1)(2);
410	410	[(2) tax effort described by Section 42.302(a-1)(1);
411	411	and
412	412	[(3) tax effort included in the determination of the
413	413	district's compressed tax rate ("DCR") under Subsection (a-1).]
414	414	SECTION 1.16. Sections 42.102 and 42.103, Education Code,
415	415	are amended to read as follows:
416	416	Sec. 42.102. COST OF EDUCATION ADJUSTMENT. (a) The program
417	417	student count [basic allotment] for each school district is
418	418	adjusted to reflect the geographic variation in known resource
419	419	costs and costs of education due to factors beyond the control of
420	420	the [school] district.
421	421	(b) The program student count of a school district [cost of
422	422	education adjustment] is adjusted by applying the formula:
423	423	CAP = [(PSC X .5) X (((CEI - 1) X .457668) + 1)] + (PSC X .5)
424	424	where:
425	425	"CAP" is the school district's cost-adjusted program student
426	426	count;
427	427	"PSC" is the district's program student count determined
428	428	under Section 42.101; and
429	429	"CEI" is the cost of education index calculated in accordance
430	430	with the teacher fixed effects index methodology described by the
431	431	2004 report to the legislature submitted by the joint select
432	432	committee on public school finance [adjustment adopted by the
433	433	foundation school fund budget committee and contained in Chapter
434	434	203, Title 19, Texas Administrative Code, as that chapter existed
435	435	on March 26, 1997].
436	436	Sec. 42.103. SMALL AND MID-SIZED DISTRICT ADJUSTMENT. (a)
437	437	The program student count [basic allotment] for certain small and
438	438	mid-sized school districts is adjusted in accordance with this
439	439	section. In this section:
440	440	(1) "SAP" ["AA"] is the district's scale-adjusted
441	441	program student count [adjusted allotment per student];
442	442	(2) "ADA" is the number of students in average daily
443	443	attendance for whom [which] the district is entitled to a weight [an
444	444	allotment] under Sections 42.101(c)(1) and (2) [Section 42.101];
445	445	and
446	446	(3) "CAP" ["ABA"] is the district's cost-adjusted
447	447	program student count [adjusted basic allotment] determined under
448	448	Section 42.102.
449	449	(b) The program student count [basic allotment] of a school
450	450	district that contains at least 300 square miles and has not more
451	451	than 1,600 students in average daily attendance is adjusted by
452	452	applying the formula:
453	453	SAP [AA] = (1 + ((1,600 - ADA) X .0004)) X CAP [ABA]
454	454	(c) The program student count [basic allotment] of a school
455	455	district that contains less than 300 square miles and has not more
456	456	than 1,600 students in average daily attendance is adjusted by
457	457	applying the formula:
458	458	SAP [AA] = (1 + ((1,600 - ADA) X .00025)) X CAP [ABA]
459	459	(d) The program student count [basic allotment] of a school
460	460	district that offers a kindergarten through grade 12 program and
461	461	has less than 5,000 students in average daily attendance is
462	462	adjusted by applying the formula, of the following formulas, that
463	463	results in the greatest scale-adjusted program student count
464	464	[adjusted allotment]:
465	465	(1) the formula in Subsection (b) or (c) for which the
466	466	district is eligible; or
467	467	(2) SAP [AA] = (1 + ((5,000 - ADA) X .000025)) X CAP
468	468	[ABA].
469	469	SECTION 1.17. Sections 42.105(a) and (c), Education Code,
470	470	are amended to read as follows:
471	471	(a) Notwithstanding Sections [42.101,] 42.102[,] and
472	472	42.103, the program student count of a school district that has
473	473	fewer than 130 students in average daily attendance shall be
474	474	adjusted under Sections 42.102 and 42.103 [provided an adjusted
475	475	basic allotment] on the basis of 130 students in average daily
476	476	attendance if the district [it] offers a kindergarten through grade
477	477	12 program and has preceding or current year's average daily
478	478	attendance of at least 90 students or is 30 miles or more by bus
479	479	route from the nearest high school district. The program student
480	480	count of a school [A] district offering a kindergarten through
481	481	grade 8 program whose preceding or current year's average daily
482	482	attendance was at least 50 students or which is 30 miles or more by
483	483	bus route from the nearest high school district shall be adjusted
484	484	under Sections 42.102 and 42.103 [provided an adjusted basic
485	485	allotment] on the basis of 75 students in average daily attendance.
486	486	An average daily attendance of 60 students shall be the basis of
487	487	adjusting [providing] the program student count under Sections
488	488	42.102 and 42.103 [adjusted basic allotment] if a district offers a
489	489	kindergarten through grade 6 program and has preceding or current
490	490	year's average daily attendance of at least 40 students or is 30
491	491	miles or more by bus route from the nearest high school district.
492	492	(c) Notwithstanding Subsection (a) or Sections [42.101,]
493	493	42.102[,] and 42.103, the program student count of a school
494	494	district to which this subsection applies, as provided by
495	495	Subsection (b), that has fewer than 130 students in average daily
496	496	attendance shall be adjusted under Sections 42.102 and 42.103
497	497	[provided an adjusted basic allotment] on the basis of 130 students
498	498	in average daily attendance if it offers a kindergarten through
499	499	grade four program and has preceding or current year's average
500	500	daily attendance of at least 75 students or is 30 miles or more by
501	501	bus route from the nearest high school district.
502	502	SECTION 1.18. Sections 42.302, 42.303, and 42.304,
503	503	Education Code, are transferred to Subchapter B, Education Code,
504	504	redesignated as Sections 42.107, 42.108, and 42.109, Education
505	505	Code, and amended to read as follows:
506	506	Sec. 42.107 [42.302]. GUARANTEED YIELD [ALLOTMENT]. (a)
507	507	Each school district is guaranteed a specified amount per weighted
508	508	student in state and local funds for each cent of tax effort [over
509	509	that required for the district's local fund assignment] up to the
510	510	maximum level specified in this subchapter. The amount of state
511	511	support, subject only to the maximum amount under Section 42.108
512	512	[42.303], is determined by the formula:
513	513	GYA = (GL X WADA X DTR X 100) - LR
514	514	where:
515	515	"GYA" is the guaranteed yield amount of state funds to be
516	516	allocated to the district;
517	517	"GL" is the dollar amount guaranteed level of state and local
518	518	funds per weighted student per cent of tax effort, which is $56 [an
519	519	amount described by Subsection (a-1)] or a greater amount for any
520	520	year provided by appropriation;
521	521	"WADA" has the meaning assigned by Section 42.0053 [is the
522	522	number of students in weighted average daily attendance, which is
523	523	calculated by dividing the sum of the school district's allotments
524	524	under Subchapters B and C, less any allotment to the district for
525	525	transportation, any allotment under Section 42.158 or 42.160, and
526	526	50 percent of the adjustment under Section 42.102, by the basic
527	527	allotment for the applicable year];
528	528	"DTR" is the district [enrichment] tax rate of the school
529	529	district, which is determined by subtracting the amount [amounts]
530	530	specified by Subsection (b) from the total amount of maintenance
531	531	and operations taxes collected by the school district for the
532	532	applicable school year and dividing the difference by the quotient
533	533	of the district's taxable value of property as determined under
534	534	Subchapter M, Chapter 403, Government Code, or, if applicable,
535	535	under Section 42.2521, divided by 100; and
536	536	"LR" is the local revenue, which is determined by multiplying
537	537	"DTR" by the quotient of the district's taxable value of property as
538	538	determined under Subchapter M, Chapter 403, Government Code, or, if
539	539	applicable, under Section 42.2521, divided by 100.
540	540	[(a-1) For purposes of Subsection (a), the dollar amount
541	541	guaranteed level of state and local funds per weighted student per
542	542	cent of tax effort ("GL") for a school district is:
543	543	[(1) the greater of the amount of district tax revenue
544	544	per weighted student per cent of tax effort that would be available
545	545	to the Austin Independent School District, as determined by the
546	546	commissioner in cooperation with the Legislative Budget Board, if
547	547	the reduction of the limitation on tax increases as provided by
548	548	Section 11.26(a-1), (a-2), or (a-3), Tax Code, did not apply, or the
549	549	amount of district tax revenue per weighted student per cent of tax
550	550	effort used for purposes of this subdivision in the preceding
551	551	school year, for the first six cents by which the district's
552	552	maintenance and operations tax rate exceeds the rate equal to the
553	553	sum of the product of the state compression percentage, as
554	554	determined under Section 42.2516, multiplied by the maintenance and
555	555	operations tax rate adopted by the district for the 2005 tax year
556	556	and any additional tax effort included in calculating the
557	557	district's compressed tax rate under Section 42.101(a-1); and
558	558	[(2) $31.95, for the district's maintenance and
559	559	operations tax effort that exceeds the amount of tax effort
560	560	described by Subdivision (1).
561	561	[(a-2) The limitation on district enrichment tax rate
562	562	("DTR") under Section 42.303 does not apply to the district's
563	563	maintenance and operations tax effort described by Subsection
564	564	(a-1)(1).]
565	565	(b) In computing the district [enrichment] tax rate of a
566	566	school district, the total amount of maintenance and operations
567	567	taxes collected by the school district does not include the amount
568	568	of[:
569	569	[(1) the district's local fund assignment under
570	570	Section 42.252; or
571	571	[(2)] taxes paid into a tax increment fund under
572	572	Chapter 311, Tax Code.
573	573	(c) For purposes of this section, school district taxes for
574	574	which credit is granted under Section 31.035, 31.036, or 31.037,
575	575	Tax Code, are considered taxes collected by the school district as
576	576	if the taxes were paid when the credit for the taxes was granted.
577	577	(d) For purposes of this section, the total amount of
578	578	maintenance and operations taxes collected for an applicable school
579	579	year by a school district with alternate tax dates, as authorized by
580	580	Section 26.135, Tax Code, is the amount of taxes collected on or
581	581	after January 1 of the year in which the school year begins and not
582	582	later than December 31 of the same year.
583	583	(e) For purposes of this section, school district taxes for
584	584	which credit is granted under former Subchapter D, Chapter 313, Tax
585	585	Code, are considered taxes collected by the school district as if
586	586	the taxes were paid when the credit for the taxes was granted.
587	587	(f) If a school district imposes a maintenance and
588	588	operations tax at a rate greater than the rate equal to the product
589	589	of the state compression percentage, as determined under Section
590	590	42.2516, multiplied by the maintenance and operations tax rate
591	591	adopted by the district for the 2005 tax year, the district is
592	592	entitled to receive a guaranteed yield [an allotment] under this
593	593	section on the basis of that greater tax effort.
594	594	Sec. 42.108 [42.303]. LIMITATION ON DISTRICT [ENRICHMENT]
595	595	TAX RATE. The district [enrichment] tax rate ("DTR") under Section
596	596	42.107 [42.302] may not exceed [the amount per $100 of valuation by
597	597	which] the maximum rate permitted under Section 45.003 [exceeds the
598	598	rate used to determine the district's local share under Section
599	599	42.252], or a greater amount for any year provided by
600	600	appropriation.
601	601	Sec. 42.109 [42.304]. COMPUTATION OF AID FOR DISTRICT ON
602	602	MILITARY RESERVATION OR AT STATE SCHOOL. State assistance under
603	603	this subchapter for a school district located on a federal military
604	604	installation or at Moody State School is computed using the average
605	605	tax rate and property value per student of school districts in the
606	606	county, as determined by the commissioner.
607	607	SECTION 1.19. Subchapter B, Chapter 42, Education Code, is
608	608	amended by adding Section 42.110 to read as follows:
609	609	Sec. 42.110. MINIMUM AND MAXIMUM GAIN. (a) Notwithstanding
610	610	any other provision of this chapter, a school district is entitled
611	611	for the 2017-2018 and 2018-2019 school years to a minimum gain
612	612	guarantee of additional state aid in an amount equal to the lesser
613	613	of:
614	614	(1) the amount by which the district's state and local
615	615	revenue received for the applicable school year under Chapter 41
616	616	and this chapter is less than the state and local revenue received
617	617	by the district under Chapter 41 and this chapter for the 2016-2017
618	618	school year; or
619	619	(2) $65 per student in weighted average daily
620	620	attendance.
621	621	(b) Notwithstanding any other provision of this chapter,
622	622	the amount of state and local revenue received by a school district
623	623	under Chapter 41 and this chapter for the 2017-2018 or 2018-2019
624	624	school year may not exceed the sum of $250 per student in weighted
625	625	average daily attendance for that school year and the amount of
626	626	state and local revenue received by the district under Chapter 41
627	627	and this chapter for the 2016-2017 school year. If a school
628	628	district's state and local revenue would exceed that amount for the
629	629	applicable school year, the amount of state funds to which the
630	630	district would otherwise be entitled under this chapter shall be
631	631	reduced proportionately to comply with the maximum amount of
632	632	funding described by this subsection.
633	633	(c) The commissioner may adopt rules as necessary to
634	634	implement this section.
635	635	(d) This section expires September 1, 2019.
636	636	SECTION 1.20. The heading to Subchapter C, Chapter 42,
637	637	Education Code, is amended to read as follows:
638	638	SUBCHAPTER C. CONDITIONS APPLICABLE TO FUNDING BASED ON WEIGHTS
639	639	[SPECIAL ALLOTMENTS]
640	640	SECTION 1.21. Sections 42.151, 42.152, 42.153, 42.154,
641	641	42.1541, and 42.156, Education Code, are amended to read as
642	642	follows:
643	643	Sec. 42.151. SPECIAL EDUCATION. (a) In this section,
644	644	"special education funds" means the portion of state and local
645	645	funds attributable to students weighted under Sections
646	646	42.101(c)(2)-(13). [For each student in average daily attendance in
647	647	a special education program under Subchapter A, Chapter 29, in a
648	648	mainstream instructional arrangement, a school district is
649	649	entitled to an annual allotment equal to the adjusted basic
650	650	allotment multiplied by 1.1. For each full-time equivalent student
651	651	in average daily attendance in a special education program under
652	652	Subchapter A, Chapter 29, in an instructional arrangement other
653	653	than a mainstream instructional arrangement, a district is entitled
654	654	to an annual allotment equal to the adjusted basic allotment
655	655	multiplied by a weight determined according to instructional
656	656	arrangement as follows:
657	657	[Homebound5.0
658	658	[Hospital class3.0
659	659	[Speech therapy5.0
660	660	[Resource room3.0
661	661	[Self-contained, mild and moderate,
662	662	regular campus3.0
663	663	[Self-contained, severe, regular campus3.0
664	664	[Off home campus2.7
665	665	[Nonpublic day school1.7
666	666	[Vocational adjustment class2.3]
667	667	(b) [A special instructional arrangement for students with
668	668	disabilities residing in care and treatment facilities, other than
669	669	state schools, whose parents or guardians do not reside in the
670	670	district providing education services shall be established under
671	671	the rules of the State Board of Education. The funding weight for
672	672	this arrangement shall be 4.0 for those students who receive their
673	673	education service on a local school district campus. A special
674	674	instructional arrangement for students with disabilities residing
675	675	in state schools shall be established under the rules of the State
676	676	Board of Education with a funding weight of 2.8.
677	677	[(c)] For funding purposes, the number of contact hours
678	678	credited per day for each special education student in the off home
679	679	campus instructional arrangement may not exceed the contact hours
680	680	credited per day for the multidistrict class instructional
681	681	arrangement in the 1992-1993 school year.
682	682	(c) [(d)] For funding purposes, the number of contact hours
683	683	credited per day for each special education student in the resource
684	684	room; self-contained, mild and moderate; and self-contained,
685	685	severe, instructional arrangements may not exceed the average of
686	686	the statewide total contact hours credited per day for those three
687	687	instructional arrangements in the 1992-1993 school year.
688	688	(d) [(e)] The State Board of Education by rule shall
689	689	prescribe the qualifications a special education [an]
690	690	instructional arrangement must meet in order to be funded as a
691	691	particular instructional arrangement under this chapter [section].
692	692	In prescribing the qualifications that a mainstream instructional
693	693	arrangement must meet, the board shall establish requirements that
694	694	students with disabilities and their teachers receive the direct,
695	695	indirect, and support services that are necessary to enrich the
696	696	regular classroom and enable student success.
697	697	(e) [(f) In this section, "full-time equivalent student"
698	698	means 30 hours of contact a week between a special education student
699	699	and special education program personnel.
700	700	[(g)] The State Board of Education shall adopt rules and
701	701	procedures governing contracts for residential placement of
702	702	special education students. The legislature shall provide by
703	703	appropriation for the state's share of the costs of those
704	704	placements.
705	705	(f) Special education funds [(h) Funds allocated under this
706	706	section], other than an indirect cost apportionment [allotment]
707	707	established under Section 42.1541 [State Board of Education rule],
708	708	must be used in the special education program under Subchapter A,
709	709	Chapter 29.
710	710	(g) [(i)] The agency shall encourage the placement of
711	711	students in special education programs, including students in
712	712	residential instructional arrangements, in the least restrictive
713	713	environment appropriate for their educational needs.
714	714	(h) [(k)] A school district that provides an extended year
715	715	program required by federal law for special education students who
716	716	may regress is entitled to receive funds in an amount equal to 75
717	717	percent, or a lesser percentage determined by the commissioner, of
718	718	the special education funds attributable to a student in the
719	719	applicable instructional arrangement [adjusted basic allotment or
720	720	adjusted allotment, as applicable,] for each full-time equivalent
721	721	student in average daily attendance[, multiplied by the amount
722	722	designated for the student's instructional arrangement under this
723	723	section,] for each day the program is provided divided by the number
724	724	of days in the minimum school year. The total amount of state
725	725	funding for extended year services under this section may not
726	726	exceed $10 million per year. A school district may use funds
727	727	received under this section only in providing an extended year
728	728	program.
729	729	[(l) From the total amount of funds appropriated for special
730	730	education under this section, the commissioner shall withhold an
731	731	amount specified in the General Appropriations Act, and distribute
732	732	that amount to school districts for programs under Section 29.014.
733	733	The program established under that section is required only in
734	734	school districts in which the program is financed by funds
735	735	distributed under this subsection and any other funds available for
736	736	the program. After deducting the amount withheld under this
737	737	subsection from the total amount appropriated for special
738	738	education, the commissioner shall reduce each district's allotment
739	739	proportionately and shall allocate funds to each district
740	740	accordingly.]
741	741	Sec. 42.152. COMPENSATORY EDUCATION PROGRAMS [ALLOTMENT].
742	742	(a) In this section, "compensatory education funds" means the
743	743	portion of state and local funds attributable to students weighted
744	744	under Sections 42.101(c)(14) and (15) [For each student who is
745	745	educationally disadvantaged or who is a student who does not have a
746	746	disability and resides in a residential placement facility in a
747	747	district in which the student's parent or legal guardian does not
748	748	reside, a district is entitled to an annual allotment equal to the
749	749	adjusted basic allotment multiplied by 0.2, and by 2.41 for each
750	750	full-time equivalent student who is in a remedial and support
751	751	program under Section 29.081 because the student is pregnant].
752	752	(b) Compensatory education funds must [For purposes of this
753	753	section, the number of educationally disadvantaged students is
754	754	determined:
755	755	[(1) by averaging the best six months' numbers of
756	756	students eligible for enrollment in the national school lunch
757	757	program of free or reduced-price lunches for the preceding school
758	758	year; or
759	759	[(2) in the manner provided by commissioner rule.
760	760	[(b-1) A student receiving a full-time virtual education
761	761	through the state virtual school network may be included in
762	762	determining the number of educationally disadvantaged students
763	763	under Subsection (b) if the school district submits to the
764	764	commissioner a plan detailing the enhanced services that will be
765	765	provided to the student and the commissioner approves the plan.
766	766	[(c) Funds allocated under this section shall] be used to
767	767	fund supplemental programs and services designed to eliminate any
768	768	disparity in performance on assessment instruments administered
769	769	under Subchapter B, Chapter 39, or disparity in the rates of high
770	770	school completion between students at risk of dropping out of
771	771	school, as defined by Section 29.081, and all other students.
772	772	Specifically, the funds, other than an indirect cost apportionment
773	773	[allotment] established under Section 42.1541 [State Board of
774	774	Education rule], which may not exceed 45 percent, may be used to
775	775	meet the costs of providing a compensatory, intensive, or
776	776	accelerated instruction program under Section 29.081 or a
777	777	disciplinary alternative education program established under
778	778	Section 37.008[,] or to pay the costs associated with placing
779	779	students in a juvenile justice alternative education program
780	780	established under Section 37.011[, or to support a program eligible
781	781	under Title I of the Elementary and Secondary Education Act of 1965,
782	782	as provided by Pub. L. No. 103-382 and its subsequent amendments,
783	783	and by federal regulations implementing that Act, at a campus at
784	784	which at least 40 percent of the students are educationally
785	785	disadvantaged]. In meeting the costs of providing a compensatory,
786	786	intensive, or accelerated instruction program under Section
787	787	29.081, a district's compensatory education funds must [allotment
788	788	shall] be used for costs supplementary to the regular education
789	789	program, such as costs for program and student evaluation,
790	790	instructional materials and equipment and other supplies required
791	791	for quality instruction, supplemental staff expenses, salary for
792	792	teachers of at-risk students, smaller class size, and
793	793	individualized instruction. A home-rule school district or an
794	794	open-enrollment charter school must use compensatory education
795	795	funds [allocated under Subsection (a)] for a purpose authorized in
796	796	this subsection but is not otherwise subject to Subchapter C,
797	797	Chapter 29. For purposes of this subsection, a program
798	798	specifically designed to serve students at risk of dropping out of
799	799	school, as defined by Section 29.081, is considered to be a program
800	800	supplemental to the regular education program, and a district may
801	801	use its compensatory education funds [allotment] for such a
802	802	program.
803	803	(c) [(c-1)] Notwithstanding Subsection (b) [(c)],
804	804	compensatory education funds [allocated under this section] may be
805	805	used to fund in proportion to the percentage of students served by
806	806	the program that meet the criteria in Section 29.081(d) or (g):
807	807	(1) an accelerated reading instruction program under
808	808	Section 28.006(g); or
809	809	(2) a program for treatment of students who have
810	810	dyslexia or a related disorder as required by Section 38.003.
811	811	(d) [(c-2)] Notwithstanding Subsection (b) [(c)],
812	812	compensatory education funds [allocated under this section] may be
813	813	used to fund a school district's mentoring services program under
814	814	Section 29.089.
815	815	(e) [(d)] The agency shall evaluate the effectiveness of
816	816	accelerated instruction and support programs provided under
817	817	Section 29.081 for students at risk of dropping out of school.
818	818	(f) [(q)] The State Board of Education, with the assistance
819	819	of the comptroller, shall develop and implement by rule reporting
820	820	and auditing systems for district and campus expenditures of
821	821	compensatory education funds to ensure that those [compensatory
822	822	education] funds, other than the indirect cost apportionment
823	823	[allotment], are spent only to supplement the regular education
824	824	program as required by Subsection (b) [(c)]. The reporting
825	825	requirements shall be managed electronically to minimize local
826	826	administrative costs. A school district shall submit the report
827	827	required by this subsection not later than the 150th day after the
828	828	last day permissible for resubmission of information required under
829	829	Section 42.006.
830	830	(g) [(q-1)] The commissioner shall develop a system to
831	831	identify school districts that are at high risk of having used
832	832	compensatory education funds other than in compliance with
833	833	Subsection (b) [(c)] or of having inadequately reported
834	834	compensatory education expenditures. If a review of the report
835	835	submitted under Subsection (f) [(q)], using the risk-based system,
836	836	indicates that a district is not at high risk of having misused
837	837	compensatory education funds or of having inadequately reported
838	838	compensatory education expenditures, the district may not be
839	839	required to perform a local audit of compensatory education
840	840	expenditures and is not subject to on-site monitoring under this
841	841	section.
842	842	(h) [(q-2)] If a review of the report submitted under
843	843	Subsection (f) [(q)], using the risk-based system, indicates that a
844	844	school district is at high risk of having misused compensatory
845	845	education funds, the commissioner shall notify the district of that
846	846	determination. The district must respond to the commissioner not
847	847	later than the 30th day after the date the commissioner notifies the
848	848	district of the commissioner's determination. If the district's
849	849	response does not change the commissioner's determination that the
850	850	district is at high risk of having misused compensatory education
851	851	funds or if the district does not respond in a timely manner, the
852	852	commissioner shall:
853	853	(1) require the district to conduct a local audit of
854	854	compensatory education expenditures for the current or preceding
855	855	school year;
856	856	(2) order agency staff to conduct on-site monitoring
857	857	of the district's compensatory education expenditures; or
858	858	(3) both require a local audit and order on-site
859	859	monitoring.
860	860	(i) [(q-3)] If a review of the report submitted under
861	861	Subsection (f) [(q)], using the risk-based system, indicates that a
862	862	school district is at high risk of having inadequately reported
863	863	compensatory education expenditures, the commissioner may require
864	864	agency staff to assist the district in following the proper
865	865	reporting methods or amending a district or campus improvement plan
866	866	under Subchapter F, Chapter 11. If the district does not take
867	867	appropriate corrective action before the 45th day after the date
868	868	the agency staff notifies the district of the action the district is
869	869	expected to take, the commissioner may:
870	870	(1) require the district to conduct a local audit of
871	871	the district's compensatory education expenditures; or
872	872	(2) order agency staff to conduct on-site monitoring
873	873	of the district's compensatory education expenditures.
874	874	(j) [(q-4)] The commissioner, in the year following a local
875	875	audit of compensatory education expenditures, shall withhold from a
876	876	school district's foundation school fund payment an amount equal to
877	877	the amount of compensatory education funds the agency determines
878	878	were not used in compliance with Subsection (b) [(c)]. The
879	879	commissioner shall release to a district funds withheld under this
880	880	subsection when the district provides to the commissioner a
881	881	detailed plan to spend those funds in compliance with Subsection
882	882	(b) [(c)].
883	883	(k) [(r)] The commissioner shall grant a one-year exemption
884	884	from the requirements of Subsections (f)-(j) [(q)-(q-4)] to a
885	885	school district in which the group of students who have failed to
886	886	perform satisfactorily in the preceding school year on an
887	887	assessment instrument required under Section 39.023(a), (c), or (l)
888	888	subsequently performs on those assessment instruments at a level
889	889	that meets or exceeds a level prescribed by commissioner rule. Each
890	890	year the commissioner, based on the most recent information
891	891	available, shall determine if a school district is entitled to an
892	892	exemption for the following school year and notify the district of
893	893	that determination.
894	894	Sec. 42.153. BILINGUAL EDUCATION PROGRAMS [ALLOTMENT]. (a)
895	895	In this section, "bilingual education funds" means the portion of
896	896	state and local funds attributable to students weighted under
897	897	Section 42.101(c)(16) [For each student in average daily attendance
898	898	in a bilingual education or special language program under
899	899	Subchapter B, Chapter 29, a district is entitled to an annual
900	900	allotment equal to the adjusted basic allotment multiplied by 0.1].
901	901	(b) Bilingual education funds [Funds allocated under this
902	902	section], other than an indirect cost apportionment [allotment]
903	903	established under Section 42.1541 [State Board of Education rule],
904	904	must be used in providing bilingual education or special language
905	905	programs under Subchapter B, Chapter 29, and must be accounted for
906	906	under existing agency reporting and auditing procedures.
907	907	(c) A school district's bilingual education funds [or
908	908	special language allocation] may be used only for program and
909	909	student evaluation, instructional materials and equipment, staff
910	910	development, supplemental staff expenses, salary supplements for
911	911	teachers, and other supplies required for quality instruction and
912	912	smaller class size.
913	913	Sec. 42.154. CAREER AND TECHNOLOGY EDUCATION PROGRAMS
914	914	[ALLOTMENT]. (a) The portion of state and local funds attributable
915	915	to students weighted [For each full-time equivalent student in
916	916	average daily attendance in an approved career and technology
917	917	education program in grades nine through 12 or in career and
918	918	technology education programs for students with disabilities in
919	919	grades seven through 12, a district is entitled to:
920	920	[(1) an annual allotment equal to the adjusted basic
921	921	allotment multiplied by a weight of 1.35; and
922	922	[(2) $50, if the student is enrolled in:
923	923	[(A) two or more advanced career and technology
924	924	education classes for a total of three or more credits; or
925	925	[(B) an advanced course as part of a tech-prep
926	926	program under Subchapter T, Chapter 61.
927	927	[(b) In this section, "full-time equivalent student" means
928	928	30 hours of contact a week between a student and career and
929	929	technology education program personnel.
930	930	[(c) Funds allocated] under Section 42.101(c)(17) [this
931	931	section], other than an indirect cost apportionment [allotment]
932	932	established under Section 42.1541 [State Board of Education rule],
933	933	must be used in providing career and technology education programs
934	934	in grades 9 [nine] through 12 or career and technology education
935	935	programs for students with disabilities in grades 7 [seven] through
936	936	12 under Sections 29.182, 29.183, and 29.184.
937	937	(b) [(d)] The commissioner shall conduct a cost-benefit
938	938	comparison between career and technology education programs and
939	939	mathematics and science programs.
940	940	[(e) Out of the total statewide allotment for career and
941	941	technology education under this section, the commissioner shall set
942	942	aside an amount specified in the General Appropriations Act, which
943	943	may not exceed an amount equal to one percent of the total amount
944	944	appropriated, to support regional career and technology education
945	945	planning. After deducting the amount set aside under this
946	946	subsection from the total amount appropriated for career and
947	947	technology education under this section, the commissioner shall
948	948	reduce each district's tier one allotments in the same manner
949	949	described for a reduction in allotments under Section 42.253.]
950	950	Sec. 42.1541. INDIRECT COSTS [COST ALLOTMENTS]. (a) The
951	951	State Board of Education shall by rule establish [increase] the
952	952	indirect cost apportionments described by [allotments established
953	953	under] Sections 42.151(f) [42.151(h)], 42.152(b) [42.152(c)],
954	954	42.153(b), and 42.154(a) at an amount and proportion not less than
955	955	the amount and proportion resulting from the indirect cost
956	956	allotment [42.154(a-1) and (c) and] in effect for the 2016-2017
957	957	[2010-2011] school year [in proportion to the average percentage
958	958	reduction in total state and local maintenance and operations
959	959	revenue provided under this chapter for the 2011-2012 school year
960	960	as a result of S.B. Nos. 1 and 2, Acts of the 82nd Legislature, 1st
961	961	Called Session, 2011].
962	962	(b) To the extent necessary to permit the board to comply
963	963	with this section, the limitation on the percentage of the indirect
964	964	cost apportionment [allotment] prescribed by Section 42.152(b)
965	965	[42.152(c)] does not apply.
966	966	(c) The board shall take the action required by Subsection
967	967	(a) not later than the date that permits the [increased] indirect
968	968	cost apportionments [allotments] to apply beginning with the
969	969	2017-2018 [2011-2012] school year.
970	970	Sec. 42.156. GIFTED AND TALENTED STUDENT PROGRAMS
971	971	[ALLOTMENT]. (a) The portion of state and local funds attributable
972	972	to students weighted [For each identified student a school
973	973	district serves in a program for gifted and talented students that
974	974	the district certifies to the commissioner as complying with
975	975	Subchapter D, Chapter 29, a district is entitled to an annual
976	976	allotment equal to the district's adjusted basic allotment as
977	977	determined under Section 42.102 or Section 42.103, as applicable,
978	978	multiplied by .12 for each school year or a greater amount provided
979	979	by appropriation.
980	980	[(b) Funds allocated] under Section 42.101(c)(18) [this
981	981	section], other than the amount that represents the program's share
982	982	of general administrative costs, must be used in providing programs
983	983	for gifted and talented students under Subchapter D, Chapter 29,
984	984	including programs sanctioned by International Baccalaureate and
985	985	Advanced Placement, or in developing programs for gifted and
986	986	talented students. Each school district must account for the
987	987	expenditure of state funds as provided by rule of the State Board of
988	988	Education. If by the end of the 12th month after receiving the
989	989	funds [an allotment] for developing a program a district has failed
990	990	to implement a program, the district must refund the amount of the
991	991	funds [allotment] to the agency within 30 days.
992	992	(b) [(c)] Not more than five percent of a school district's
993	993	students in average daily attendance are eligible for funding under
994	994	this chapter for attendance in a gifted and talented student
995	995	program [section].
996	996	(c) [(d) If the amount of state funds for which school
997	997	districts are eligible under this section exceeds the amount of
998	998	state funds appropriated in any year for the programs, the
999	999	commissioner shall reduce each district's tier one allotments in
1000	1000	the same manner described for a reduction in allotments under
1001	1001	Section 42.253.
1002	1002	[(e)] If the total amount of funds attributable to students
1003	1003	weighted under Section 42.101(c)(18) [allotted under this section]
1004	1004	before a date set by rule of the State Board of Education is less
1005	1005	than the total amount appropriated for a school year, the
1006	1006	commissioner shall transfer the remainder to any program for which
1007	1007	compensatory education funds, as defined by [an allotment under]
1008	1008	Section 42.152, may be used.
1009	1009	[(f) After each district has received allotted funds for
1010	1010	this program, the State Board of Education may use up to $500,000 of
1011	1011	the funds allocated under this section for programs such as
1012	1012	MATHCOUNTS, Future Problem Solving, Odyssey of the Mind, and
1013	1013	Academic Decathlon, as long as these funds are used to train
1014	1014	personnel and provide program services. To be eligible for funding
1015	1015	under this subsection, a program must be determined by the State
1016	1016	Board of Education to provide services that are effective and
1017	1017	consistent with the state plan for gifted and talented education.]
1018	1018	SECTION 1.22. Section 42.160, Education Code, is amended to
1019	1019	read as follows:
1020	1020	Sec. 42.160. HIGH SCHOOL PROGRAMS [ALLOTMENT]. (a) In this
1021	1021	section, "high school funds" means the portion of state and local
1022	1022	funds attributable to students weighted under Section
1023	1023	42.101(c)(20) [A school district is entitled to an annual allotment
1024	1024	of $275 for each student in average daily attendance in grades 9
1025	1025	through 12 in the district].
1026	1026	(b) [A school district that is required to take action under
1027	1027	Chapter 41 to reduce its wealth per student to the equalized wealth
1028	1028	level is entitled to a credit, in the amount of the allotments to
1029	1029	which the district is entitled under this section, against the
1030	1030	total amount required under Section 41.093 for the district to
1031	1031	purchase attendance credits. A school district that is otherwise
1032	1032	ineligible for state aid under this chapter is entitled to receive
1033	1033	allotments under this section.
1034	1034	[(c)] An open-enrollment charter school is entitled to high
1035	1035	school funds [an allotment under this section] in the same manner as
1036	1036	a school district.
1037	1037	(c) [(d)] The commissioner shall adopt rules to administer
1038	1038	this section, including rules related to the permissible use of
1039	1039	high school funds by [allocated under this section to] an
1040	1040	open-enrollment charter school.
1041	1041	SECTION 1.23. Chapter 42, Education Code, is amended by
1042	1042	adding Subchapter D and a subchapter heading to read as follows:
1043	1043	SUBCHAPTER D. EXPENSE ALLOTMENTS AND ADDITIONAL STATE AID
1044	1044	SECTION 1.24. Sections 42.158, 42.155, and 42.106,
1045	1045	Education Code, are transferred to Subchapter D, Chapter 42,
1046	1046	Education Code, as added by this Act, redesignated as Sections
1047	1047	42.201, 42.202, and 42.203, Education Code, and amended to read as
1048	1048	follows:
1049	1049	Sec. 42.201 [42.158]. NEW INSTRUCTIONAL FACILITY
1050	1050	ALLOTMENT. (a) In this section, "instructional facility" has the
1051	1051	meaning assigned by Section 46.001.
1052	1052	(b) A school district is entitled to an additional allotment
1053	1053	as provided by this section for operational expenses associated
1054	1054	with opening a new instructional facility.
1055	1055	(c) [(b)] For the first school year in which students attend
1056	1056	a new instructional facility, a school district is entitled to an
1057	1057	allotment of $250 for each student in average daily attendance at
1058	1058	the facility. For the second school year in which students attend
1059	1059	that instructional facility, a school district is entitled to an
1060	1060	allotment of $250 for each additional student in average daily
1061	1061	attendance at the facility.
1062	1062	(d) [(c)] For purposes of this section, the number of
1063	1063	additional students in average daily attendance at a facility is
1064	1064	the difference between the number of students in average daily
1065	1065	attendance in the current year at that facility and the number of
1066	1066	students in average daily attendance at that facility in the
1067	1067	preceding year.
1068	1068	(e) [(d)] Subject to Subsection (f) [(d-1)], the amount
1069	1069	appropriated for allotments under this section may not exceed $25
1070	1070	million in a school year. If the total amount of allotments to
1071	1071	which districts are entitled under this section for a school year
1072	1072	exceeds the amount appropriated under this subsection, the
1073	1073	commissioner shall reduce each district's allotment under this
1074	1074	section in the manner provided by Section 42.253(h).
1075	1075	(f) [(d-1)] In addition to the appropriation amount
1076	1076	described by Subsection (e) [(d)], the amount of $1 million may be
1077	1077	appropriated each school year to supplement the allotment to which
1078	1078	a school district is entitled under this section that may be
1079	1079	provided using the appropriation amount described by Subsection (e)
1080	1080	[(d)]. The commissioner shall first apply the funds appropriated
1081	1081	under this subsection to prevent any reduction under Subsection (e)
1082	1082	[(d)] in the allotment for attendance at an eligible high school
1083	1083	instructional facility, subject to the maximum amount of $250 for
1084	1084	each student in average daily attendance. Any funds remaining
1085	1085	after preventing all reductions in amounts due for high school
1086	1086	instructional facilities may be applied proportionally to all other
1087	1087	eligible instructional facilities, subject to the maximum amount of
1088	1088	$250 for each student in average daily attendance.
1089	1089	(g) [(e)] A school district that is required to take action
1090	1090	under Chapter 41 to reduce its wealth per student to the equalized
1091	1091	wealth level is entitled to a credit, in the amount of the
1092	1092	allotments to which the district is entitled under this section,
1093	1093	against the total amount required under Section 41.093 for the
1094	1094	district to purchase attendance credits. A school district that is
1095	1095	otherwise ineligible for state aid under this chapter is entitled
1096	1096	to receive allotments under this section.
1097	1097	(h) [(f)] The commissioner may adopt rules necessary to
1098	1098	implement this section.
1099	1099	[(g) In this section, "instructional facility" has the
1100	1100	meaning assigned by Section 46.001.]
1101	1101	Sec. 42.202 [42.155]. TRANSPORTATION ALLOTMENT. (a) Each
1102	1102	school district or county operating a transportation system is
1103	1103	entitled to allotments for transportation costs as provided by this
1104	1104	section.
1105	1105	(b) In [As used in] this section:
1106	1106	(1) "Regular eligible student" means a student who
1107	1107	resides two or more miles from the student's campus of regular
1108	1108	attendance, measured along the shortest route that may be traveled
1109	1109	on public roads, and who is not classified as a student eligible for
1110	1110	special education services.
1111	1111	(2) "Eligible special education student" means a
1112	1112	student who is eligible for special education services under
1113	1113	Section 29.003 and who would be unable to attend classes without
1114	1114	special transportation services.
1115	1115	(3) "Linear density" means the average number of
1116	1116	regular eligible students transported daily, divided by the
1117	1117	approved daily route miles traveled by the respective
1118	1118	transportation system.
1119	1119	(c) Each school district or county operating a regular
1120	1120	transportation system is entitled to an allotment based on the
1121	1121	daily cost per regular eligible student of operating and
1122	1122	maintaining the regular transportation system and the linear
1123	1123	density of that system. In determining the cost, the commissioner
1124	1124	shall give consideration to factors affecting the actual cost of
1125	1125	providing these transportation services in each district or county.
1126	1126	The average actual cost is to be computed by the commissioner and
1127	1127	included for consideration by the legislature in the General
1128	1128	Appropriations Act. The allotment per mile of approved route may
1129	1129	not exceed the amount set by appropriation.
1130	1130	(d) A school district or county may apply for and on
1131	1131	approval of the commissioner receive an additional amount of up to
1132	1132	10 percent of its regular transportation allotment to be used for
1133	1133	the transportation of children living within two miles of the
1134	1134	school they attend who would be subject to hazardous traffic
1135	1135	conditions if they walked to school. Each board of trustees shall
1136	1136	provide to the commissioner the definition of hazardous conditions
1137	1137	applicable to that district and shall identify the specific
1138	1138	hazardous areas for which the allocation is requested. A hazardous
1139	1139	condition exists where no walkway is provided and children must
1140	1140	walk along or cross a freeway or expressway, an underpass, an
1141	1141	overpass or a bridge, an uncontrolled major traffic artery, an
1142	1142	industrial or commercial area, or another comparable condition.
1143	1143	(e) The commissioner may grant an amount set by
1144	1144	appropriation for private or commercial transportation for
1145	1145	eligible students from isolated areas. The need for this type of
1146	1146	transportation grant shall be determined on an individual basis and
1147	1147	the amount granted shall not exceed the actual cost. The grants may
1148	1148	be made only in extreme hardship cases. A grant may not be made if
1149	1149	the students live within two miles of an approved school bus route.
1150	1150	(f) The cost of transporting career and technology
1151	1151	education students from one campus to another inside a school
1152	1152	district or from a sending district to another secondary public
1153	1153	school for a career and technology program or an area career and
1154	1154	technology school or to an approved post-secondary institution
1155	1155	under a contract for instruction approved by the agency shall be
1156	1156	reimbursed based on the number of actual miles traveled times the
1157	1157	district's official extracurricular travel per mile rate as set by
1158	1158	the board of trustees and approved by the agency.
1159	1159	(g) A school district or county that provides special
1160	1160	transportation services for eligible special education students is
1161	1161	entitled to a state allocation paid on a previous year's
1162	1162	cost-per-mile basis. The maximum rate per mile allowable shall be
1163	1163	set by appropriation based on data gathered from the first year of
1164	1164	each preceding biennium. Districts may use a portion of their
1165	1165	support allocation to pay transportation costs, if necessary. The
1166	1166	commissioner may grant an amount set by appropriation for private
1167	1167	transportation to reimburse parents or their agents for
1168	1168	transporting eligible special education students. The mileage
1169	1169	allowed shall be computed along the shortest public road from the
1170	1170	student's home to school and back, morning and afternoon. The need
1171	1171	for this type transportation shall be determined on an individual
1172	1172	basis and shall be approved only in extreme hardship cases.
1173	1173	(h) Funds allotted under this section must be used in
1174	1174	providing transportation services.
1175	1175	(i) In the case of a school district belonging to a county
1176	1176	transportation system, the district's transportation allotment for
1177	1177	purposes of determining a district's Foundation School Program
1178	1178	[foundation school program] allocations is determined on the basis
1179	1179	of the number of approved daily route miles in the district
1180	1180	multiplied by the allotment per mile to which the county
1181	1181	transportation system is entitled.
1182	1182	(j) The Texas School for the Deaf is entitled to an
1183	1183	allotment under this section. The commissioner shall determine the
1184	1184	appropriate allotment.
1185	1185	(k) Notwithstanding any other provision of this section,
1186	1186	the commissioner may not reduce the allotment to which a school
1187	1187	district or county is entitled under this section because the
1188	1188	district or county provides transportation for an eligible student
1189	1189	to and from a child-care facility, as defined by Section 42.002,
1190	1190	Human Resources Code, or a grandparent's residence instead of the
1191	1191	student's residence, as authorized by Section 34.007, if the
1192	1192	transportation is provided within the approved routes of the
1193	1193	district or county for the school the student attends.
1194	1194	(l) A school district may, with the funds allotted under
1195	1195	this section, provide a bus pass or card for another transportation
1196	1196	system to each student who is eligible to use the regular
1197	1197	transportation system of the district but for whom the regular
1198	1198	transportation system of the district is not a feasible method of
1199	1199	providing transportation. The commissioner by rule shall provide
1200	1200	procedures for a school district to provide bus passes or cards to
1201	1201	students under this subsection.
1202	1202	Sec. 42.203 [42.106]. TUITION ALLOTMENT FOR DISTRICTS NOT
1203	1203	OFFERING ALL GRADE LEVELS. A school district that contracts for
1204	1204	students residing in the district to be educated in another
1205	1205	district under Section 25.039(a) is entitled to receive an
1206	1206	allotment equal to the total amount of tuition required to be paid
1207	1207	by the district under Section 25.039, not to exceed the amount
1208	1208	specified by commissioner rule under Section 25.039(b).
1209	1209	SECTION 1.25. Subchapter D, Chapter 42, Education Code, as
1210	1210	added by this Act, is amended by adding Sections 42.204 and 42.205
1211	1211	to read as follows:
1212	1212	Sec. 42.204. ALLOTMENT FOR DISTRICTS THAT PROVIDE EDUCATION
1213	1213	SOLELY TO STUDENTS CONFINED TO OR EDUCATED IN HOSPITALS. (a) A
1214	1214	school district that offers a program under Section 29.014 is
1215	1215	entitled to an allotment in an amount specified in the General
1216	1216	Appropriations Act, adjusted by:
1217	1217	(1) the cost of education adjustment under Section
1218	1218	42.102 for the school district in which the district is
1219	1219	geographically located; and
1220	1220	(2) the weight for a homebound student under Section
1221	1221	42.101(c)(3).
1222	1222	(b) A program established under Section 29.014 is required
1223	1223	only in a school district in which the program is financed by an
1224	1224	allotment under this section or by any other funds available for the
1225	1225	program.
1226	1226	Sec. 42.205. ALLOTMENT FOR CERTAIN GIFTED AND TALENTED
1227	1227	EDUCATION PROGRAMS. (a) A school district that offers MATHCOUNTS,
1228	1228	Future Problem Solving, Odyssey of the Mind, Academic Decathlon, or
1229	1229	a similar program for gifted and talented students may receive
1230	1230	additional funding in an amount determined by the commissioner.
1231	1231	The commissioner may not provide more than $500,000 each year in
1232	1232	total funding under this section.
1233	1233	(b) To be eligible for funding under this section, a program
1234	1234	must be determined by the State Board of Education to provide
1235	1235	services that are effective and consistent with the state plan for
1236	1236	gifted and talented education.
1237	1237	(c) Funds allotted under this section may be used only to
1238	1238	train personnel or provide program services.
1239	1239	SECTION 1.26. Sections 42.2513, 42.2514, and 42.2515,
1240	1240	Education Code, are transferred to Subchapter D, Chapter 42,
1241	1241	Education Code, as added by this Act, and redesignated as Sections
1242	1242	42.206, 42.207, and 42.208, Education Code, to read as follows:
1243	1243	Sec. 42.206 [42.2513]. ADDITIONAL STATE AID FOR STAFF
1244	1244	SALARY INCREASES. (a) A school district, including a school
1245	1245	district that is otherwise ineligible for state aid under this
1246	1246	chapter, is entitled to state aid in an amount equal to the sum of:
1247	1247	(1) the product of $500 multiplied by the number of
1248	1248	full-time district employees, other than administrators or
1249	1249	employees subject to the minimum salary schedule under Section
1250	1250	21.402; and
1251	1251	(2) the product of $250 multiplied by the number of
1252	1252	part-time district employees, other than administrators.
1253	1253	(b) A determination by the commissioner under this section
1254	1254	is final and may not be appealed.
1255	1255	(c) The commissioner may adopt rules to implement this
1256	1256	section.
1257	1257	Sec. 42.207 [42.2514]. ADDITIONAL STATE AID FOR TAX
1258	1258	INCREMENT FINANCING PAYMENTS. For each school year, a school
1259	1259	district, including a school district that is otherwise ineligible
1260	1260	for state aid under this chapter, is entitled to state aid in an
1261	1261	amount equal to the amount the district is required to pay into the
1262	1262	tax increment fund for a reinvestment zone under Section
1263	1263	311.013(n), Tax Code.
1264	1264	Sec. 42.208 [42.2515]. ADDITIONAL STATE AID FOR AD VALOREM
1265	1265	TAX CREDITS UNDER TEXAS ECONOMIC DEVELOPMENT ACT. (a) For each
1266	1266	school year, a school district, including a school district that is
1267	1267	otherwise ineligible for state aid under this chapter, is entitled
1268	1268	to state aid in an amount equal to the amount of all tax credits
1269	1269	credited against ad valorem taxes of the district in that year under
1270	1270	former Subchapter D, Chapter 313, Tax Code.
1271	1271	(b) The commissioner may adopt rules to implement and
1272	1272	administer this section.
1273	1273	SECTION 1.27. Section 42.251, Education Code, is amended to
1274	1274	read as follows:
1275	1275	Sec. 42.251. FINANCING; GENERAL RULE. (a) The sum of [the
1276	1276	basic allotment under Subchapter B and the special allotments under
1277	1277	Subchapter C, computed in accordance with this chapter, constitute
1278	1278	the tier one allotments. The sum of the tier one allotments and]
1279	1279	the guaranteed yield [allotments] under Section 42.107 and the
1280	1280	expense allotments and additional state aid under Subchapter D [F],
1281	1281	computed in accordance with this chapter, constitutes [constitute]
1282	1282	the total cost of the Foundation School Program.
1283	1283	(b) The program shall be financed by:
1284	1284	(1) ad valorem tax revenue generated by an equalized
1285	1285	[uniform] school district effort;
1286	1286	(2) [ad valorem tax revenue generated by local school
1287	1287	district effort in excess of the equalized uniform school district
1288	1288	effort;
1289	1289	[(3)] state available school funds distributed in
1290	1290	accordance with law; and
1291	1291	(3) [(4)] state funds appropriated for the purposes of
1292	1292	public school education and allocated to each district in an amount
1293	1293	sufficient to finance the cost of each district's Foundation School
1294	1294	Program not covered by other funds specified in this subsection.
1295	1295	SECTION 1.28. Section 42.2516, Education Code, as effective
1296	1296	September 1, 2017, is amended by adding Subsection (a-1) to read as
1297	1297	follows:
1298	1298	(a-1) For purposes of this title, the state maximum
1299	1299	compressed tax rate is the product of the state compression
1300	1300	percentage multiplied by $1.50.
1301	1301	SECTION 1.29. The heading to Section 42.252, Education
1302	1302	Code, is amended to read as follows:
1303	1303	Sec. 42.252. LOCAL PROPERTY VALUES [SHARE OF PROGRAM COST
1304	1304	(TIER ONE)].
1305	1305	SECTION 1.30. Section 42.252(b), Education Code, is amended
1306	1306	to read as follows:
1307	1307	(b) The commissioner shall adjust the values reported in the
1308	1308	official report of the comptroller as required by Section 5.09(a),
1309	1309	Tax Code, to reflect reductions in taxable value of property
1310	1310	resulting from natural or economic disaster after January 1 in the
1311	1311	year in which the valuations are determined. The decision of the
1312	1312	commissioner is final. An adjustment does not affect the local
1313	1313	revenue level [fund assignment] of any other school district.
1314	1314	SECTION 1.31. Section 42.2528(b), Education Code, is
1315	1315	amended to read as follows:
1316	1316	(b) In awarding grants under this section, the commissioner
1317	1317	shall give highest priority to school districts with maintenance
1318	1318	and operations tax rates at the greatest rates permitted by law.
1319	1319	The commissioner shall also give priority to:
1320	1320	(1) districts with maintenance and operations tax
1321	1321	rates at least equal to the state maximum compressed tax rate, as
1322	1322	defined by Section 42.2516 [42.101(a)], and lowest amounts of
1323	1323	maintenance and operations tax revenue per weighted student; and
1324	1324	(2) districts with debt service tax rates near or
1325	1325	equal to the greatest rates permitted by law.
1326	1326	SECTION 1.32. Sections 42.253(a) and (c), Education Code,
1327	1327	are amended to read as follows:
1328	1328	(a) For each school year the commissioner shall determine:
1329	1329	(1) the amount of money to which a school district is
1330	1330	entitled under Subchapters B and D [C];
1331	1331	(2) [the amount of money to which a school district is
1332	1332	entitled under Subchapter F;
1333	1333	[(3)] the amount of money allocated to the district
1334	1334	from the available school fund; and
1335	1335	(3) [(4)] the amount of each district's [tier one]
1336	1336	local revenue level [share] under Section 42.107 [42.252; and
1337	1337	[(5) the amount of each district's tier two local share
1338	1338	under Section 42.302].
1339	1339	(c) Each school district is entitled to an amount equal to
1340	1340	the difference for that district between the amount provided by
1341	1341	Subsection [the sum of Subsections] (a)(1) [and (a)(2)] and the sum
1342	1342	of Subsections (a)(2) and (a)(3)[, (a)(4), and (a)(5)].
1343	1343	SECTION 1.33. Section 42.257(b), Education Code, is amended
1344	1344	to read as follows:
1345	1345	(b) If the school district would have received a greater
1346	1346	amount from the foundation school fund for the applicable school
1347	1347	year using the adjusted value, the commissioner shall add the
1348	1348	difference to subsequent distributions to the district from the
1349	1349	foundation school fund. An adjustment does not affect the local
1350	1350	revenue level [fund assignment] of any other district.
1351	1351	ARTICLE 2. CONFORMING AMENDMENTS
1352	1352	SECTION 2.01. Section 7.062(c), Education Code, is amended
1353	1353	to read as follows:
1354	1354	(c) Except as otherwise provided by this subsection, if the
1355	1355	commissioner certifies that the amount appropriated for a state
1356	1356	fiscal year for purposes of Subchapters A and B, Chapter 46, exceeds
1357	1357	the amount to which school districts are entitled under those
1358	1358	subchapters for that year, the commissioner shall use the excess
1359	1359	funds, in an amount not to exceed $20 million in any state fiscal
1360	1360	year, for the purpose of making grants under this section. The use
1361	1361	of excess funds under this subsection has priority over any
1362	1362	provision of Chapter 42 that permits or directs the use of excess
1363	1363	Foundation School Program [foundation school program] funds,
1364	1364	including Sections [42.2517,] 42.2521, 42.2522, and 42.2531. The
1365	1365	commissioner is required to use excess funds as provided by this
1366	1366	subsection only if the commissioner is not required to reduce the
1367	1367	total amount of state funds allocated to school districts under
1368	1368	Section 42.253(h).
1369	1369	SECTION 2.02. Section 8.051(d), Education Code, is amended
1370	1370	to read as follows:
1371	1371	(d) Each regional education service center shall maintain
1372	1372	core services for purchase by school districts and campuses. The
1373	1373	core services are:
1374	1374	(1) training and assistance in:
1375	1375	(A) teaching each subject area assessed under
1376	1376	Section 39.023; and
1377	1377	(B) providing instruction in personal financial
1378	1378	literacy as required under Section 28.0021;
1379	1379	(2) training and assistance in providing each program
1380	1380	described by Sections 42.101(c)(1)-(18) [that qualifies for a
1381	1381	funding allotment under Section 42.151, 42.152, 42.153, or 42.156];
1382	1382	(3) assistance specifically designed for a school
1383	1383	district or campus assigned an unacceptable performance rating
1384	1384	under Section 39.054;
1385	1385	(4) training and assistance to teachers,
1386	1386	administrators, members of district boards of trustees, and members
1387	1387	of site-based decision-making committees;
1388	1388	(5) assistance specifically designed for a school
1389	1389	district that is considered out of compliance with state or federal
1390	1390	special education requirements, based on the agency's most recent
1391	1391	compliance review of the district's special education programs; and
1392	1392	(6) assistance in complying with state laws and rules.
1393	1393	SECTION 2.03. Section 11.158(a), Education Code, is amended
1394	1394	to read as follows:
1395	1395	(a) The board of trustees of an independent school district
1396	1396	may require payment of:
1397	1397	(1) a fee for materials used in any program in which
1398	1398	the resultant product in excess of minimum requirements becomes, at
1399	1399	the student's option, the personal property of the student, if the
1400	1400	fee does not exceed the cost of materials;
1401	1401	(2) membership dues in student organizations or clubs
1402	1402	and admission fees or charges for attending extracurricular
1403	1403	activities, if membership or attendance is voluntary;
1404	1404	(3) a security deposit for the return of materials,
1405	1405	supplies, or equipment;
1406	1406	(4) a fee for personal physical education and athletic
1407	1407	equipment and apparel, although any student may provide the
1408	1408	student's own equipment or apparel if it meets reasonable
1409	1409	requirements and standards relating to health and safety
1410	1410	established by the board;
1411	1411	(5) a fee for items of personal use or products that a
1412	1412	student may purchase at the student's option, such as student
1413	1413	publications, class rings, annuals, and graduation announcements;
1414	1414	(6) a fee specifically permitted by any other statute;
1415	1415	(7) a fee for an authorized voluntary student health
1416	1416	and accident benefit plan;
1417	1417	(8) a reasonable fee, not to exceed the actual annual
1418	1418	maintenance cost, for the use of musical instruments and uniforms
1419	1419	owned or rented by the district;
1420	1420	(9) a fee for items of personal apparel that become the
1421	1421	property of the student and that are used in extracurricular
1422	1422	activities;
1423	1423	(10) a parking fee or a fee for an identification card;
1424	1424	(11) a fee for a driver training course, not to exceed
1425	1425	the actual district cost per student in the program for the current
1426	1426	school year;
1427	1427	(12) a fee for a course offered for credit that
1428	1428	requires the use of facilities not available on the school premises
1429	1429	or the employment of an educator who is not part of the school's
1430	1430	regular staff, if participation in the course is at the student's
1431	1431	option;
1432	1432	(13) a fee for a course offered during summer school,
1433	1433	except that the board may charge a fee for a course required for
1434	1434	graduation only if the course is also offered without a fee during
1435	1435	the regular school year;
1436	1436	(14) a reasonable fee for transportation of a student
1437	1437	who lives within two miles of the school the student attends to and
1438	1438	from that school, except that the board may not charge a fee for
1439	1439	transportation for which the [school] district receives funds under
1440	1440	Section 42.202(d) [42.155(d)];
1441	1441	(15) a reasonable fee, not to exceed $50, for costs
1442	1442	associated with an educational program offered outside of regular
1443	1443	school hours through which a student who was absent from class
1444	1444	receives instruction voluntarily for the purpose of making up the
1445	1445	missed instruction and meeting the level of attendance required
1446	1446	under Section 25.092; or
1447	1447	(16) if the district does not receive any funds under
1448	1448	Section 42.202 [42.155] and does not participate in a county
1449	1449	transportation system for which an allotment is provided under
1450	1450	Section 42.202(i) [42.155(i)], a reasonable fee for the
1451	1451	transportation of a student to and from the school the student
1452	1452	attends.
1453	1453	SECTION 2.04. Section 12.106(a), Education Code, as
1454	1454	effective September 1, 2017, is amended to read as follows:
1455	1455	(a) A charter holder is entitled to receive for the
1456	1456	open-enrollment charter school funding under Chapter 42 equal to
1457	1457	the amount of funding per student in weighted average daily
1458	1458	attendance[, excluding enrichment funding under Section
1459	1459	42.302(a),] to which the charter holder would be entitled for the
1460	1460	school under Chapter 42 if the school were a school district without
1461	1461	a [tier one] local revenue level [share] for purposes of Section
1462	1462	42.253.
1463	1463	SECTION 2.05. Section 12.106(a-1), Education Code, is
1464	1464	amended to read as follows:
1465	1465	(a-1) In determining funding for an open-enrollment charter
1466	1466	school under Subsection (a), adjustments under Sections 42.102,
1467	1467	42.103, [42.104,] and 42.105 are based on the average adjustment
1468	1468	for the state.
1469	1469	SECTION 2.06. Section 13.054(f), Education Code, is amended
1470	1470	to read as follows:
1471	1471	(f) For five years beginning with the school year in which
1472	1472	the annexation occurs, the commissioner shall annually adjust the
1473	1473	local revenue level [fund assignment] of a district to which
1474	1474	territory is annexed under this section by multiplying the enlarged
1475	1475	district's local revenue level [fund assignment computed under
1476	1476	Section 42.252] by a fraction, the numerator of which is the number
1477	1477	of students residing in the district preceding the date of the
1478	1478	annexation and the denominator of which is the number of students
1479	1479	residing in the district as enlarged on the date of the annexation.
1480	1480	SECTION 2.07. Section 21.402(a), Education Code, as
1481	1481	effective September 1, 2017, is amended to read as follows:
1482	1482	(a) Except as provided by Subsection (e-1) or (f), a school
1483	1483	district must pay each classroom teacher, full-time librarian,
1484	1484	full-time school counselor certified under Subchapter B, or
1485	1485	full-time school nurse not less than the minimum monthly salary,
1486	1486	based on the employee's level of experience in addition to other
1487	1487	factors, as determined by commissioner rule, determined by the
1488	1488	following formula:
1489	1489	MS = SF x (GL x FS)
1490	1490	where:
1491	1491	"MS" is the minimum monthly salary;
1492	1492	"SF" is the applicable salary factor specified by Subsection
1493	1493	(c);
1494	1494	"GL" is the guaranteed level, as defined by Section 42.107;
1495	1495	and
1496	1496	"FS" is the percentage [amount], as determined by the
1497	1497	commissioner under Subsection (b), of the guaranteed level that in
1498	1498	the 2017-2018 school year produces for each level of experience an
1499	1499	amount equal to the minimum monthly salary required for that level
1500	1500	of experience for the 2016-2017 school year [basic allotment as
1501	1501	provided by Section 42.101(a) or (b) for a school district with a
1502	1502	maintenance and operations tax rate at least equal to the state
1503	1503	maximum compressed tax rate, as defined by Section 42.101(a)].
1504	1504	SECTION 2.08. Section 21.402(b), Education Code, is amended
1505	1505	to read as follows:
1506	1506	(b) Not later than June 1 of each year, the commissioner
1507	1507	shall determine the [basic allotment and resulting] monthly
1508	1508	salaries to be paid by school districts as provided by Subsection
1509	1509	(a).
1510	1510	SECTION 2.09. Section 28.0211(m-1), Education Code, is
1511	1511	amended to read as follows:
1512	1512	(m-1) For purposes of certification under Subsection (m),
1513	1513	the commissioner may not consider Foundation School Program funds
1514	1514	except for compensatory education funds [under Section 42.152].
1515	1515	This section may be implemented only if the commissioner certifies
1516	1516	that sufficient funds have been appropriated during a school year
1517	1517	for administering the accelerated instruction programs specified
1518	1518	under this section and Section 28.0217, including teacher training
1519	1519	for that purpose.
1520	1520	SECTION 2.10. Section 29.002, Education Code, is amended to
1521	1521	read as follows:
1522	1522	Sec. 29.002. DEFINITION. In this subchapter, "special
1523	1523	services" means:
1524	1524	(1) special education instruction, which may be
1525	1525	provided by professional and supported by paraprofessional
1526	1526	personnel in the regular classroom or in an instructional
1527	1527	arrangement described by Sections 42.101(c)(2)-(13) [Section
1528	1528	42.151]; and
1529	1529	(2) related services, which are developmental,
1530	1530	corrective, supportive, or evaluative services, not instructional
1531	1531	in nature, that may be required for the student to benefit from
1532	1532	special education instruction and for implementation of a student's
1533	1533	individualized education program.
1534	1534	SECTION 2.11. Section 29.008(b), Education Code, is amended
1535	1535	to read as follows:
1536	1536	(b) Except as provided by Subsection (c), costs of an
1537	1537	approved contract for residential placement may be paid from a
1538	1538	combination of federal, state, and local funds, as directed by the
1539	1539	commissioner. [The local share of the total contract cost for each
1540	1540	student is that portion of the local tax effort that exceeds the
1541	1541	district's local fund assignment under Section 42.252, divided by
1542	1542	the average daily attendance in the district. If the contract
1543	1543	involves a private facility, the state share of the total contract
1544	1544	cost is that amount remaining after subtracting the local share. If
1545	1545	the contract involves a public facility, the state share is that
1546	1546	amount remaining after subtracting the local share from the portion
1547	1547	of the contract that involves the costs of instructional and
1548	1548	related services. For purposes of this subsection, "local tax
1549	1549	effort" means the total amount of money generated by taxes imposed
1550	1550	for debt service and maintenance and operation less any amounts
1551	1551	paid into a tax increment fund under Chapter 311, Tax Code.]
1552	1552	SECTION 2.12. Section 29.018(b), Education Code, is amended
1553	1553	to read as follows:
1554	1554	(b) A school district is eligible to apply for a grant under
1555	1555	this section if:
1556	1556	(1) the district does not receive sufficient funds,
1557	1557	including the state's share of special education [state] funds, as
1558	1558	defined by [provided under] Section 42.151, and federal funds, for
1559	1559	a student with disabilities to pay for the special education
1560	1560	services provided to the student; or
1561	1561	(2) the district does not receive sufficient funds,
1562	1562	including the state's share of special education [state] funds, as
1563	1563	defined by [provided under] Section 42.151, and federal funds, for
1564	1564	all students with disabilities in the district to pay for the
1565	1565	special education services provided to the students.
1566	1566	SECTION 2.13. Section 29.081(b-2), Education Code, is
1567	1567	amended to read as follows:
1568	1568	(b-2) In this subsection, "compensatory education funds"
1569	1569	has the meaning assigned by Section 42.152. A district that is
1570	1570	required to provide accelerated instruction under Subsection (b-1)
1571	1571	shall separately budget sufficient funds, including compensatory
1572	1572	education funds [under Section 42.152], for that purpose. A
1573	1573	district may not budget compensatory education funds [received
1574	1574	under Section 42.152] for any other purpose until the district
1575	1575	adopts a budget to support additional accelerated instruction under
1576	1576	Subsection (b-1).
1577	1577	SECTION 2.14. Section 29.082(a), Education Code, is amended
1578	1578	to read as follows:
1579	1579	(a) A school district may set aside an amount from the
1580	1580	district's compensatory education funds, as defined by [allotment
1581	1581	under] Section 42.152, or may apply to the agency for funding of an
1582	1582	extended year program for a period not to exceed 30 instructional
1583	1583	days for students in:
1584	1584	(1) kindergarten through grade 11 who are identified
1585	1585	as likely not to be promoted to the next grade level for the
1586	1586	succeeding school year; or
1587	1587	(2) grade 12 who are identified as likely not to
1588	1588	graduate from high school before the beginning of the succeeding
1589	1589	school year.
1590	1590	SECTION 2.15. Section 29.089(b), Education Code, is amended
1591	1591	to read as follows:
1592	1592	(b) The commissioner, in consultation with the governor,
1593	1593	lieutenant governor, and speaker of the house of representatives,
1594	1594	by rule shall determine accountability standards under this section
1595	1595	for a school district providing a mentoring services program using
1596	1596	compensatory education funds, as defined by [allocated under]
1597	1597	Section 42.152.
1598	1598	SECTION 2.16. Section 29.097(g), Education Code, is amended
1599	1599	to read as follows:
1600	1600	(g) For purposes of Subsection (f)(2), a school district is
1601	1601	encouraged to use high school funds, as defined by [allocated
1602	1602	under] Section 42.160.
1603	1603	SECTION 2.17. Section 29.098(e), Education Code, is amended
1604	1604	to read as follows:
1605	1605	(e) For purposes of Subsection (d)(2), a school district is
1606	1606	encouraged to use high school funds, as defined by [allocated
1607	1607	under] Section 42.160.
1608	1608	SECTION 2.18. Section 29.203(b), Education Code, is amended
1609	1609	to read as follows:
1610	1610	(b) A school district is entitled to funding attributable to
1611	1611	students weighted under Section 42.101(c)(19) [the allotment
1612	1612	provided by Section 42.157] for each eligible student using a
1613	1613	public education grant. If the district has a wealth per student
1614	1614	greater than the guaranteed wealth level but less than the
1615	1615	equalized wealth level, a school district is entitled under rules
1616	1616	adopted by the commissioner to additional state aid in an amount
1617	1617	equal to the difference between the cost to the district of
1618	1618	providing services to a student using a public education grant and
1619	1619	the sum of the state's share of funds [state aid received because of
1620	1620	the allotment under Section 42.157] and money from the available
1621	1621	school fund attributable to the student.
1622	1622	SECTION 2.19. Section 29.203(g)(2), Education Code, is
1623	1623	amended to read as follows:
1624	1624	(2) "Guaranteed wealth level" means a wealth per
1625	1625	student equal to the dollar amount guaranteed level of state and
1626	1626	local funds per weighted student per cent of tax effort, as provided
1627	1627	by Section 42.107 [42.302], multiplied by 10,000.
1628	1628	SECTION 2.20. Sections 29.918(a) and (b), Education Code,
1629	1629	are amended to read as follows:
1630	1630	(a) Notwithstanding Section 39.234 or 42.152, a school
1631	1631	district or open-enrollment charter school with a high dropout
1632	1632	rate, as determined by the commissioner, must submit a plan to the
1633	1633	commissioner describing the manner in which the district or charter
1634	1634	school intends to use [the] compensatory education funds, as
1635	1635	defined by [allotment under] Section 42.152, and high school funds,
1636	1636	as defined by [the high school allotment under] Section 42.160, for
1637	1637	developing and implementing research-based strategies for dropout
1638	1638	prevention. The district or charter school shall submit the plan
1639	1639	not later than December 1 of each school year preceding the school
1640	1640	year in which the district or charter school will receive the
1641	1641	compensatory education funds [allotment] or high school funds
1642	1642	[allotment] to which the plan applies.
1643	1643	(b) A school district or open-enrollment charter school to
1644	1644	which this section applies may not spend or obligate more than 25
1645	1645	percent of the district's or charter school's compensatory
1646	1646	education funds [allotment] or high school funds [allotment] unless
1647	1647	the commissioner approves the plan submitted under Subsection (a).
1648	1648	The commissioner shall complete an initial review of the district's
1649	1649	or charter school's plan not later than March 1 of the school year
1650	1650	preceding the school year in which the district or charter school
1651	1651	will receive the compensatory education funds [allotment] or high
1652	1652	school funds [allotment] to which the plan applies.
1653	1653	SECTION 2.21. Section 34.002(c), Education Code, is amended
1654	1654	to read as follows:
1655	1655	(c) A school district that fails or refuses to meet the
1656	1656	safety standards for school buses established under this section is
1657	1657	ineligible to share in the transportation allotment under Section
1658	1658	42.202 [42.155] until the first anniversary of the date the
1659	1659	district begins complying with the safety standards.
1660	1660	SECTION 2.22. Section 39.117(f), Education Code, is amended
1661	1661	to read as follows:
1662	1662	(f) In this subsection, "compensatory education funds" has
1663	1663	the meaning assigned by Section 42.152. In addition to any other
1664	1664	available funds, a school district may use compensatory education
1665	1665	funds [provided to the district under Section 42.152] to pay the
1666	1666	costs of the program. Instructional services may be provided to
1667	1667	students identified under Subsection (d)(1) who are under 26 years
1668	1668	of age using compensatory education funds [provided under Section
1669	1669	42.152] or other Foundation School Program funds, notwithstanding
1670	1670	Section 42.003.
1671	1671	SECTION 2.23. The heading to Section 39.234, Education
1672	1672	Code, is amended to read as follows:
1673	1673	Sec. 39.234. USE OF HIGH SCHOOL FUNDS [ALLOTMENT].
1674	1674	SECTION 2.24. Section 39.234, Education Code, is amended by
1675	1675	amending Subsections (a) and (b) and adding Subsection (c) to read
1676	1676	as follows:
1677	1677	(a) In this section, "high school funds" has the meaning
1678	1678	assigned by Section 42.160.
1679	1679	(b) Except as provided by Subsection (c) [(b)], a school
1680	1680	district or campus must use high school funds [allocated under
1681	1681	Section 42.160] to:
1682	1682	(1) implement or administer a college readiness
1683	1683	program that provides academic support and instruction to prepare
1684	1684	underachieving students for entrance into an institution of higher
1685	1685	education;
1686	1686	(2) implement or administer a program that encourages
1687	1687	students to pursue advanced academic opportunities, including
1688	1688	early college high school programs and dual credit, advanced
1689	1689	placement, and international baccalaureate courses;
1690	1690	(3) implement or administer a program that provides
1691	1691	opportunities for students to take academically rigorous course
1692	1692	work, including four years of mathematics and four years of science
1693	1693	at the high school level;
1694	1694	(4) implement or administer a program, including
1695	1695	online course support and professional development, that aligns the
1696	1696	curriculum for grades 6 [six] through 12 with postsecondary
1697	1697	curriculum and expectations; or
1698	1698	(5) implement or administer other high school
1699	1699	completion and success initiatives in grades 6 [six] through 12
1700	1700	approved by the commissioner.
1701	1701	(c) [(b)] A school district may use high school funds
1702	1702	[allocated under Section 42.160] on any instructional program in
1703	1703	grades 6 [six] through 12 other than an athletic program if:
1704	1704	(1) the district's measure of progress toward college
1705	1705	readiness is determined exceptional by a standard set by the
1706	1706	commissioner; and
1707	1707	(2) the district's completion rates for grades 9
1708	1708	[nine] through 12 exceed completion rate standards required by the
1709	1709	commissioner to achieve a status of accredited under Section
1710	1710	39.051.
1711	1711	SECTION 2.25. Section 46.013, Education Code, is amended to
1712	1712	read as follows:
1713	1713	Sec. 46.013. MULTIPLE ALLOTMENTS PROHIBITED. A school
1714	1714	district is not entitled to state assistance under this subchapter
1715	1715	based on taxes with respect to which the district receives state
1716	1716	assistance under [Subchapter F,] Chapter 42.
1717	1717	SECTION 2.26. Section 46.037, Education Code, is amended to
1718	1718	read as follows:
1719	1719	Sec. 46.037. MULTIPLE ALLOTMENTS PROHIBITED. A school
1720	1720	district is not entitled to state assistance under this subchapter
1721	1721	based on taxes with respect to which the district receives state
1722	1722	assistance under [Subchapter F,] Chapter 42.
1723	1723	SECTION 2.27. Section 78.10(g), Education Code, is amended
1724	1724	to read as follows:
1725	1725	(g) For each student enrolled in the academy, the academy is
1726	1726	entitled to funding [allotments] from the foundation school fund
1727	1727	under Chapter 42 as if the academy were a school district without a
1728	1728	[tier one] local revenue level [share] for purposes of Section
1729	1729	42.253. If in any academic year the amount of the allotments under
1730	1730	this subsection exceeds the amount of state funds paid to the
1731	1731	academy in the first fiscal year of the academy's operation, the
1732	1732	commissioner of education shall set aside from the total amount of
1733	1733	funds to which school districts are entitled under Section
1734	1734	42.253(c) an amount equal to the excess amount and shall distribute
1735	1735	that amount to the academy. After deducting the amount set aside and
1736	1736	paid to the academy by the commissioner of education under this
1737	1737	subsection, the commissioner of education shall reduce the amount
1738	1738	to which each district is entitled under Section 42.253(c) in the
1739	1739	manner described by Section 42.253(h). A determination of the
1740	1740	commissioner of education under this subsection is final and may
1741	1741	not be appealed.
1742	1742	SECTION 2.28. Section 79.10(f), Education Code, is amended
1743	1743	to read as follows:
1744	1744	(f) For each student enrolled in the academy, the academy is
1745	1745	entitled to funding [allotments] from the foundation school fund
1746	1746	under Chapter 42 as if the academy were a school district without a
1747	1747	[tier one] local revenue level [share] for purposes of Section
1748	1748	42.253. If in any academic year the amount of the allotments under
1749	1749	this subsection exceeds the amount of state funds paid to the
1750	1750	academy in the first fiscal year of the academy's operation, the
1751	1751	commissioner of education shall set aside from the total amount of
1752	1752	funds to which school districts are entitled under Section
1753	1753	42.253(c) an amount equal to the excess amount and shall distribute
1754	1754	that amount to the academy. After deducting the amount set aside and
1755	1755	paid to the academy by the commissioner of education under this
1756	1756	subsection, the commissioner of education shall reduce the amount
1757	1757	to which each district is entitled under Section 42.253(c) in the
1758	1758	manner described by Section 42.253(h). A determination of the
1759	1759	commissioner of education under this subsection is final and may
1760	1760	not be appealed.
1761	1761	SECTION 2.29. Section 87.505(g), Education Code, is amended
1762	1762	to read as follows:
1763	1763	(g) For each student enrolled in the academy, the academy is
1764	1764	entitled to funding [allotments] from the foundation school fund
1765	1765	under Chapter 42 as if the academy were a school district without a
1766	1766	[tier one] local revenue level [share] for purposes of Section
1767	1767	42.253. If in any academic year the amount of the allotments under
1768	1768	this subsection exceeds the amount of state funds paid to the
1769	1769	academy in the first fiscal year of the academy's operation, the
1770	1770	commissioner of education shall set aside from the total amount of
1771	1771	funds to which school districts are entitled under Section
1772	1772	42.253(c) an amount equal to the excess amount and shall distribute
1773	1773	that amount to the academy. After deducting the amount set aside and
1774	1774	paid to the academy by the commissioner of education under this
1775	1775	subsection, the commissioner of education shall reduce the amount
1776	1776	to which each district is entitled under Section 42.253(c) in the
1777	1777	manner described by Section 42.253(h). A determination of the
1778	1778	commissioner of education under this subsection is final and may
1779	1779	not be appealed.
1780	1780	SECTION 2.30. Section 96.707(k), Education Code, is amended
1781	1781	to read as follows:
1782	1782	(k) For each student enrolled in the academy, the academy is
1783	1783	entitled to funding [allotments] from the Foundation School Program
1784	1784	under Chapter 42 as if the academy were a school district without a
1785	1785	[tier one] local revenue level [share] for purposes of Section
1786	1786	42.253.
1787	1787	SECTION 2.31. Section 105.301(e), Education Code, is
1788	1788	amended to read as follows:
1789	1789	(e) The academy is not subject to the provisions of this
1790	1790	code, or to the rules of the Texas Education Agency, regulating
1791	1791	public schools, except that:
1792	1792	(1) professional employees of the academy are entitled
1793	1793	to the limited liability of an employee under Section 22.0511,
1794	1794	22.0512, or 22.052;
1795	1795	(2) a student's attendance at the academy satisfies
1796	1796	compulsory school attendance requirements; and
1797	1797	(3) for each student enrolled, the academy is entitled
1798	1798	to funding [allotments] from the Foundation School Program
1799	1799	[foundation school program] under Chapter 42 as if the academy were
1800	1800	a school district without a [tier one] local revenue level [share]
1801	1801	for purposes of Section 42.253.
1802	1802	SECTION 2.32. Section 317.005(f), Government Code, is
1803	1803	amended to read as follows:
1804	1804	(f) The governor or board may adopt an order under this
1805	1805	section withholding or transferring any portion of the total amount
1806	1806	appropriated to finance the Foundation School Program [foundation
1807	1807	school program] for a fiscal year. The governor or board may not
1808	1808	adopt such an order if it would result in an allocation of money
1809	1809	between particular programs or statutory allotments under the
1810	1810	Foundation School Program [foundation school program] contrary to
1811	1811	the statutory proration formula provided by Section 42.253(h),
1812	1812	Education Code. The governor or board may transfer an amount to the
1813	1813	total amount appropriated to finance the Foundation School Program
1814	1814	[foundation school program] for a fiscal year and may increase the
1815	1815	guaranteed level, as defined by Section 42.107 [basic allotment].
1816	1816	The governor or board may adjust allocations of amounts between
1817	1817	particular programs or statutory allotments under the Foundation
1818	1818	School Program [foundation school program] only for the purpose of
1819	1819	conforming the allocations to actual pupil enrollments or
1820	1820	attendance.
1821	1821	SECTION 2.33. Section 322.008(b), Government Code, is
1822	1822	amended to read as follows:
1823	1823	(b) The general appropriations bill may include for
1824	1824	purposes of information the funding elements computed by the
1825	1825	Legislative Budget Board under Section 42.007, Education Code,
1826	1826	excluding the values for each school district calculated under
1827	1827	Section 42.007(c)(2), Education Code. [If the funding elements are
1828	1828	included, the funding elements under Section 42.007(c)(3),
1829	1829	Education Code, shall be reported in dollar amounts per pupil.]
1830	1830	SECTION 2.34. Section 437.117(a), Government Code, is
1831	1831	amended to read as follows:
1832	1832	(a) For each student enrolled in the Texas ChalleNGe
1833	1833	Academy, the department is entitled to funding [allotments] from
1834	1834	the Foundation School Program under Chapter 42, Education Code, as
1835	1835	if the academy were a school district without a [tier one] local
1836	1836	revenue level [share] for purposes of Section 42.253, Education
1837	1837	Code.
1838	1838	SECTION 2.35. Section 2175.304(c), Government Code, is
1839	1839	amended to read as follows:
1840	1840	(c) The procedures established under Subsection (b) must
1841	1841	give preference to transferring the property directly to a public
1842	1842	school or school district or to an assistance organization
1843	1843	designated by the school district before disposing of the property
1844	1844	in another manner. If more than one public school or school
1845	1845	district or assistance organization seeks to acquire the same
1846	1846	property on substantially the same terms, the system, institution,
1847	1847	or agency shall give preference to a public school that is
1848	1848	considered low-performing by the commissioner of education or to a
1849	1849	school district that has a taxable wealth per student that does not
1850	1850	exceed the wealth per student permitted under Chapter 41 [entitles
1851	1851	the district to an allotment of state funds under Subchapter F,
1852	1852	Chapter 42], Education Code, or to the assistance organization
1853	1853	designated by such a school district.
1854	1854	SECTION 2.36. Section 1579.251(a), Insurance Code, is
1855	1855	amended to read as follows:
1856	1856	(a) The state shall assist employees of participating
1857	1857	school districts and charter schools in the purchase of group
1858	1858	health coverage under this chapter by providing for each covered
1859	1859	employee the amount of $900 each state fiscal year or a greater
1860	1860	amount as provided by the General Appropriations Act. The state
1861	1861	contribution shall be distributed through the school finance
1862	1862	formulas under Chapters 41 and 42, Education Code, and used by
1863	1863	school districts and charter schools only to pay contributions
1864	1864	under a group health coverage plan for district or school employees
1865	1865	[as provided by Section 42.260, Education Code].
1866	1866	SECTION 2.37. Section 311.013(n), Tax Code, is amended to
1867	1867	read as follows:
1868	1868	(n) This subsection applies only to a school district whose
1869	1869	taxable value computed under Section 403.302(d), Government Code,
1870	1870	is reduced in accordance with Subdivision (4) of that subsection.
1871	1871	In addition to the amount otherwise required to be paid into the tax
1872	1872	increment fund, the district shall pay into the fund an amount equal
1873	1873	to the amount by which the amount of taxes the district would have
1874	1874	been required to pay into the fund in the current year if the
1875	1875	district levied taxes at the rate the district levied in 2005
1876	1876	exceeds the amount the district is otherwise required to pay into
1877	1877	the fund in the year of the reduction. This additional amount may
1878	1878	not exceed the amount the [school] district receives in state aid
1879	1879	for the current tax year under Section 42.207 [42.2514], Education
1880	1880	Code. The [school] district shall pay the additional amount after
1881	1881	the district receives the state aid to which the district is
1882	1882	entitled for the current tax year under Section 42.207 [42.2514],
1883	1883	Education Code.
1884	1884	ARTICLE 3. REPEALERS
1885	1885	SECTION 3.01. The following provisions of the Education
1886	1886	Code are repealed:
1887	1887	(1) Section 12.106(a-2);
1888	1888	(2) Section 29.014(d);
1889	1889	(3) Section 29.203(c);
1890	1890	(4) Sections 41.002(e), (f), and (g);
1891	1891	(5) Section 41.093(b-1);
1892	1892	(6) Section 41.159(b);
1893	1893	(7) Section 42.104;
1894	1894	(8) Section 42.157;
1895	1895	(9) Section 42.2517;
1896	1896	(10) Section 42.2518;
1897	1897	(11) Sections 42.252(a), (a-1), and (d);
1898	1898	(12) Section 42.260;
1899	1899	(13) Section 42.262;
1900	1900	(14) Subchapter F, Chapter 42; and
1901	1901	(15) Section 42.4101.
1902	1902	SECTION 3.02. Section 1581.053(b), Insurance Code, is
1903	1903	repealed.
1904	1904	ARTICLE 4. EFFECTIVE DATE
1905	1905	SECTION 4.01. This Act takes effect September 1, 2017.