85R10167 KJE-F
By: Hinojosa H.B. No. 3737
A BILL TO BE ENTITLED
AN ACT
relating to the public school finance system.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. PUBLIC SCHOOL FINANCE
SECTION 1.01. Section 41.001(3), Education Code, is amended
to read as follows:
(3) "Weighted average daily attendance" has the
meaning assigned by Section 42.0053 [42.302].
SECTION 1.02. Section 41.002(a), Education Code, is amended
to read as follows:
(a) A school district may not have a wealth per student that
exceeds the product of the guaranteed level, as defined by Section
42.107, multiplied by 10,000[:
[(1) the wealth per student that generates the amount
of maintenance and operations tax revenue per weighted student
available to a district with maintenance and operations tax revenue
per cent of tax effort equal to the maximum amount provided per cent
under Section 42.101(a) or (b), for the district's maintenance and
operations tax effort equal to or less than the rate equal to the
sum of the product of the state compression percentage, as
determined under Section 42.2516, multiplied by the maintenance and
operations tax rate adopted by the district for the 2005 tax year
and any additional tax effort included in calculating the
district's compressed tax rate under Section 42.101(a-1);
[(2) the wealth per student that generates the amount
of maintenance and operations tax revenue per weighted student
available to the Austin Independent School District, as determined
by the commissioner in cooperation with the Legislative Budget
Board, for the first six cents by which the district's maintenance
and operations tax rate exceeds the rate equal to the sum of the
product of the state compression percentage, as determined under
Section 42.2516, multiplied by the maintenance and operations tax
rate adopted by the district for the 2005 tax year and any
additional tax effort included in calculating the district's
compressed tax rate under Section 42.101(a-1), subject to Section
41.093(b-1); or
[(3) $319,500, for the district's maintenance and
operations tax effort that exceeds the amount of tax effort
described by Subdivision (2)].
SECTION 1.03. Section 41.006(a), Education Code, is amended
to read as follows:
(a) The commissioner may adopt rules necessary for the
implementation of this chapter. The rules may provide for the
commissioner to make necessary adjustments to the provisions of
Chapter 42[, including providing for the commissioner to make an
adjustment in the funding element established by Section 42.302, at
the earliest date practicable, to the amount the commissioner
believes, taking into consideration options exercised by school
districts under this chapter and estimates of student enrollments,
will match appropriation levels].
SECTION 1.04. Section 41.061, Education Code, is amended to
read as follows:
Sec. 41.061. AGREEMENT. (a) By agreement of the governing
boards of two school districts, territory may be detached from one
of the districts and annexed to the other district if, after the
action,[:
[(1)] the wealth per student of the district from
which territory is detached and the wealth per student of the
district to which territory is annexed are [is] equal to or less
than the equalized wealth level[; and
[(2) the wealth per student of the district to which
territory is annexed is not greater than the greatest level for
which funds are provided under Subchapter F, Chapter 42].
(b) The agreement is not effective unless the commissioner
certifies that, after all actions taken under this chapter, the
wealth per student of each district involved will be equal to or
less than the equalized wealth level [applicable level permitted by
Subsection (a)].
SECTION 1.05. Section 41.093(a), Education Code, is amended
to read as follows:
(a) The [Subject to Subsection (b-1), the] cost of each
credit is an amount equal to the greater of:
(1) the amount of the district's maintenance and
operations tax revenue per student in weighted average daily
attendance for the school year for which the contract is executed;
or
(2) the amount of the statewide district average of
maintenance and operations tax revenue per student in weighted
average daily attendance for the school year preceding the school
year for which the contract is executed.
SECTION 1.06. Section 41.099(a), Education Code, is amended
to read as follows:
(a) Sections [41.002(e),] 41.094, 41.097, and 41.098 apply
only to a district that:
(1) executes an agreement to purchase all attendance
credits necessary to reduce the district's wealth per student to
the equalized wealth level;
(2) executes an agreement to purchase attendance
credits and an agreement under Subchapter E to contract for the
education of nonresident students who transfer to and are educated
in the district but who are not charged tuition; or
(3) executes an agreement under Subchapter E to
contract for the education of nonresident students:
(A) to an extent that does not provide more than
10 percent of the reduction in wealth per student required for the
district to achieve a wealth per student that is equal to or less
than the equalized wealth level; and
(B) under which all revenue paid by the district
to other districts, in excess of the reduction in state aid that
results from counting the weighted average daily attendance of the
students served in the contracting district, is required to be used
for funding a consortium of at least three districts in a county
with a population of less than 40,000 that is formed to support a
technology initiative.
SECTION 1.07. Sections 41.206(a), (f), (g), and (i),
Education Code, are amended to read as follows:
(a) The commissioner shall annex property detached under
Section 41.205 to school districts eligible for annexation in
accordance with this section. A school district is eligible for
annexation of property to it under this subchapter only if, before
any detachments or annexations are made in a year, the district's
wealth per student is less than the equalized wealth level
[greatest level for which funds are provided under Subchapter F,
Chapter 42].
(f) If only one school district is eligible to annex
property detached from a school district within a priority group
established by Subsections (d) and (e), the commissioner shall
annex property to that district until it reaches a wealth per
student equal as nearly as possible to the equalized wealth level
[greatest level for which funds are provided under Subchapter F,
Chapter 42,] by annexing whole parcels or items of property. Any
remaining detached property shall be annexed to eligible school
districts in the next priority group as provided by this section.
(g) If more than one school district is eligible to annex
property detached from a school district within a priority group
established by Subsections (d) and (e), the commissioner shall
first annex property to the district within the priority group to
which could be annexed the most taxable value of property without
increasing its wealth per student above the equalized wealth level
[greatest level for which funds are provided under Subchapter F,
Chapter 42,] until that district reaches a wealth per student equal
as nearly as possible to the equalized wealth level [greatest level
for which funds are provided under Subchapter F, Chapter 42,] by
annexing whole parcels or items of property. Then any additional
detached property shall be annexed in the same manner to other
eligible school districts in the same priority group in descending
order of capacity to receive taxable value of annexed property
without increasing the district's wealth per student above the
equalized wealth level [greatest level for which funds are provided
under Subchapter F, Chapter 42]. If every school district in a
priority group reaches a wealth per student equal to the equalized
wealth level [greatest level for which funds are provided under
Subchapter F, Chapter 42,] as nearly as possible, the remaining
detached property shall be annexed to school districts in the next
priority group in the manner provided by this section.
(i) The commissioner may order the annexation of a portion
of a parcel or item of property, including a portion of property
treated as a whole parcel or item under Subsection (h), if:
(1) the annexation of the whole parcel or item would
result in the district eligible to receive it in the appropriate
priority order provided by this section having a wealth per student
greater than $10,000 more than the equalized wealth level [greatest
level for which funds are provided under Subchapter F, Chapter 42];
or
(2) the commissioner determines that annexation of
portions of the parcel or item would reduce disparities in district
wealth per student more efficiently than would be possible if the
parcel or item were annexed as a whole.
SECTION 1.08. Section 41.257, Education Code, is amended to
read as follows:
Sec. 41.257. APPLICATION OF SMALL AND SPARSE ADJUSTMENTS
AND TRANSPORTATION ALLOTMENT. The budget of the consolidated
district must apply the benefit of the adjustment or allotment to
the schools of the consolidating district to which Section 42.103,
42.105, or 42.202 [42.155] would have applied in the event that the
consolidated district still qualifies as a small or sparse
district.
SECTION 1.09. Section 42.002, Education Code, is amended to
read as follows:
Sec. 42.002. PURPOSES OF FOUNDATION SCHOOL PROGRAM. [(a)]
The purposes of the Foundation School Program set forth in this
chapter and Chapter 46 are to guarantee that each school district in
the state has:
(1) substantially equal access to substantially
equalized financing and adequate resources to provide each eligible
student an [a basic] instructional program that is rated acceptable
or higher under Section 39.054, that meets other applicable legal
standards, and that is [and facilities] suitable to the student's
educational needs; and
(2) adequate resources to provide each eligible
student with [access to a substantially equalized program of
financing in excess of basic costs for certain services, as
provided by this chapter.
[(b) The Foundation School Program consists of:
[(1) two tiers that in combination provide for:
[(A) sufficient financing for all school
districts to provide a basic program of education that is rated
acceptable or higher under Section 39.054 and meets other
applicable legal standards; and
[(B) substantially equal access to funds to
provide an enriched program; and
[(2) a] facilities suitable to the student's
educational needs [component as provided by Chapter 46].
SECTION 1.10. Section 42.005, Education Code, is amended by
adding Subsection (a-1) to read as follows:
(a-1) In determining a district's average daily attendance
for purposes other than the computation of a district's program
student count under Section 42.101, the commissioner shall include
the number of full-time equivalent students in:
(1) a special education program in an instructional
arrangement other than mainstream; or
(2) a career and technology program for which a weight
is provided under Section 42.101(c)(17).
SECTION 1.11. Subchapter A, Chapter 42, Education Code, is
amended by adding Section 42.0053 to read as follows:
Sec. 42.0053. WEIGHTED AVERAGE DAILY ATTENDANCE. (a) In
this chapter, "weighted average daily attendance" of a school
district is the greater of:
(1) the district's cost-adjusted program student count
as determined under Section 42.102; or
(2) the district's scale-adjusted program student
count as determined under Section 42.103.
(b) For a district entitled to a sparsity adjustment under
Section 42.105, that adjustment is made before making the
determinations specified in Subsection (a).
SECTION 1.12. Section 42.007(c), Education Code, is amended
to read as follows:
(c) The funding elements must include:
(1) weights designed to reflect student educational
program costs [a basic allotment for the purposes of Section 42.101
that, when combined with the guaranteed yield component provided by
Subchapter F, represents the cost per student of a regular
education program that meets all mandates of law and regulation];
(2) adjustments designed to reflect the variation in
known resource costs and costs of education beyond the control of
school districts;
(3) appropriate program cost differentials and other
funding elements [for the programs authorized under Subchapter C,
with the program funding level expressed as dollar amounts and as
weights applied to the adjusted basic allotment for the appropriate
year];
(4) the maximum guaranteed level of [qualified] state
and local funds per student for the purposes of Section 42.107
[Subchapter F];
(5) the [enrichment and facilities] tax rate under
Section 42.108 [Subchapter F];
(6) the computation of students in weighted average
daily attendance under Section 42.0053 [42.302]; and
(7) the amount to be appropriated for the school
facilities assistance program under Chapter 46.
SECTION 1.13. Subchapter A, Chapter 42, Education Code, is
amended by adding Section 42.0091 to read as follows:
Sec. 42.0091. REPORT ON STATE FUNDING LEVELS. (a) Not
later than July 1 of each year, the commissioner shall:
(1) determine whether the estimated total amount of
state funding provided to a school district or open-enrollment
charter school under the Foundation School Program and from other
state funding sources for the following school year is greater than
or less than the total amount in state funding provided for the
school year in which the determination is made; and
(2) post on the agency's Internet website a report on
the amount and percentage of the increase or decrease in the total
amount of state funding determined under Subdivision (1).
(b) The report under Subsection (a)(2) must:
(1) be disaggregated by funding source; and
(2) include a calculation of the amount and percentage
of the increase or decrease in the total amount of state funding per
student in average daily attendance and per student in weighted
average daily attendance.
SECTION 1.14. The heading to Subchapter B, Chapter 42,
Education Code, is amended to read as follows:
SUBCHAPTER B. GUARANTEED YIELD [BASIC ENTITLEMENT]
SECTION 1.15. Section 42.101, Education Code, is amended to
read as follows:
Sec. 42.101. PROGRAM STUDENT COUNT [BASIC ALLOTMENT]. (a)
In this section:
(1) "Career and technology education program" means a
program under Subchapter F, Chapter 29.
(2) "Full-time equivalent student" means 30 hours of
contact a week between a student and program personnel.
(3) "Special education program" means a program under
Subchapter A, Chapter 29.
(b) For each school district, the number of students in each
educational program offered by the district is weighted according
to the formula:
WP = S X W
where:
"WP" is the weighted number of students in the educational
program;
"S" is the number of students in average daily attendance,
number of full-time equivalent students, or number of students
enrolled, as appropriate, in the educational program; and
"W" is the weight for the educational program, as provided by
Subsection (c).
(c) The weights are:
(1) 1.0 for a student in average daily attendance, not
including time the student spends each day in a special education
program in an instructional arrangement other than mainstream or in
a career and technology education program;
(2) 1.1 for a student in a special education program in
a mainstream instructional arrangement;
(3) 5.0 for a full-time equivalent student in a
special education program in a homebound instructional
arrangement;
(4) 3.0 for a full-time equivalent student in a
special education program in a hospital class instructional
arrangement;
(5) 5.0 for a full-time equivalent student in a
special education program in a speech therapy instructional
arrangement;
(6) 3.0 for a full-time equivalent student in a
special education program in a resource room instructional
arrangement;
(7) 3.0 for a full-time equivalent student in a
special education program in a self-contained, mild and moderate,
regular campus instructional arrangement;
(8) 3.0 for a full-time equivalent student in a
special education program in a self-contained, severe, regular
campus instructional arrangement;
(9) 2.7 for a full-time equivalent student in a
special education program in an off home campus instructional
arrangement;
(10) 1.7 for a full-time equivalent student in a
special education program in a nonpublic day school;
(11) 2.3 for a full-time equivalent student in a
special education program vocational adjustment class;
(12) 4.0 for a student in a special education program
who resides in a residential care and treatment facility, other
than a state school, whose parent or guardian does not reside in the
district and who receives educational services from a local school
district;
(13) 2.8 for a student in a special education program
who resides in a state school;
(14) 0.3 for a student at risk of dropping out of
school, as defined by Section 29.081;
(15) notwithstanding Subdivision (14), 2.41 for a
full-time equivalent student who is in a remedial and support
program under Section 29.081 because the student is pregnant;
(16) 0.2 for a student who is in a bilingual education
or special language program under Subchapter B, Chapter 29;
(17) for a full-time equivalent student in an approved
career and technology education program in grades 9 through 12 or in
a career and technology program for students with disabilities in
grades 7 through 12:
(A) 1.35; and
(B) 0.01, if the student is enrolled in:
(i) two or more advanced career and
technology education classes for a total of three or more credits;
or
(ii) an advanced course as part of a
tech-prep program under Subchapter T, Chapter 61;
(18) 0.12 or a greater weight as provided by
appropriation for a student in a program for gifted and talented
students that the district certifies to the commissioner as
complying with Subchapter D, Chapter 29;
(19) except as provided by Subsection (e), 0.1 for a
student in average daily attendance who is using a public education
grant under Subchapter G, Chapter 29, to attend school in a district
other than the district in which the student resides; and
(20) 0.05 for a student in average daily attendance in
grades 9 through 12 in the district.
(d) A district's program student count is equal to the sum
of the weighted number of students for each educational program
offered by the district.
(e) The total number of weights under Subsection (c)(19) to
which a district is entitled may not exceed the number by which the
number of students using public education grants to attend school
in the district exceeds the number of students who reside in the
district and use public education grants to attend school in
another district.
[For each student in average daily attendance, not including
the time students spend each day in special education programs in an
instructional arrangement other than mainstream or career and
technology education programs, for which an additional allotment is
made under Subchapter C, a district is entitled to an allotment
equal to the lesser of $4,765 or the amount that results from the
following formula:
[A = $4,765 X (DCR/MCR)
[where:
["A" is the allotment to which a district is entitled;
["DCR" is the district's compressed tax rate, which is the
product of the state compression percentage, as determined under
Section 42.2516, multiplied by the maintenance and operations tax
rate adopted by the district for the 2005 tax year; and
["MCR" is the state maximum compressed tax rate, which is the
product of the state compression percentage, as determined under
Section 42.2516, multiplied by $1.50.
[(a-1) Notwithstanding Subsection (a), for a school
district that adopted a maintenance and operations tax rate for the
2005 tax year below the maximum rate permitted by law for that year,
the district's compressed tax rate ("DCR") includes the portion of
the district's current maintenance and operations tax rate in
excess of the first six cents above the district's compressed tax
rate, as defined by Subsection (a), until the district's compressed
tax rate computed in accordance with this subsection is equal to the
state maximum compressed tax rate ("MCR").
[(a-2) Subsection (a-1) applies beginning with the
2017-2018 school year. For the 2015-2016 and 2016-2017 school
years, the board of trustees of a school district that adopted a
maintenance and operations tax rate for the 2005 tax year below the
maximum rate permitted by law for that year may choose to apply
Subsection (a-1) to the calculation of the district's compressed
tax rate ("DCR"). A board of trustees that chooses to apply
Subsection (a-1) must notify the commissioner of the decision in
writing not later than September 1 of the affected school
year. This subsection expires September 1, 2018.
[(b) A greater amount for any school year may be provided by
appropriation.
[(c) This subsection applies to a school district for which
the compressed tax rate ("DCR") is determined in accordance with
Subsection (a-1). Any reduction in the district's adopted
maintenance and operations tax rate is applied to the following
components of the district's tax rate in the order specified:
[(1) tax effort described by Section 42.302(a-1)(2);
[(2) tax effort described by Section 42.302(a-1)(1);
and
[(3) tax effort included in the determination of the
district's compressed tax rate ("DCR") under Subsection (a-1).]
SECTION 1.16. Sections 42.102 and 42.103, Education Code,
are amended to read as follows:
Sec. 42.102. COST OF EDUCATION ADJUSTMENT. (a) The program
student count [basic allotment] for each school district is
adjusted to reflect the geographic variation in known resource
costs and costs of education due to factors beyond the control of
the [school] district.
(b) The program student count of a school district [cost of
education adjustment] is adjusted by applying the formula:
CAP = [(PSC X .5) X (((CEI - 1) X .457668) + 1)] + (PSC X .5)
where:
"CAP" is the school district's cost-adjusted program student
count;
"PSC" is the district's program student count determined
under Section 42.101; and
"CEI" is the cost of education index calculated in accordance
with the teacher fixed effects index methodology described by the
2004 report to the legislature submitted by the joint select
committee on public school finance [adjustment adopted by the
foundation school fund budget committee and contained in Chapter
203, Title 19, Texas Administrative Code, as that chapter existed
on March 26, 1997].
Sec. 42.103. SMALL AND MID-SIZED DISTRICT ADJUSTMENT. (a)
The program student count [basic allotment] for certain small and
mid-sized school districts is adjusted in accordance with this
section. In this section:
(1) "SAP" ["AA"] is the district's scale-adjusted
program student count [adjusted allotment per student];
(2) "ADA" is the number of students in average daily
attendance for whom [which] the district is entitled to a weight [an
allotment] under Sections 42.101(c)(1) and (2) [Section 42.101];
and
(3) "CAP" ["ABA"] is the district's cost-adjusted
program student count [adjusted basic allotment] determined under
Section 42.102.
(b) The program student count [basic allotment] of a school
district that contains at least 300 square miles and has not more
than 1,600 students in average daily attendance is adjusted by
applying the formula:
SAP [AA] = (1 + ((1,600 - ADA) X .0004)) X CAP [ABA]
(c) The program student count [basic allotment] of a school
district that contains less than 300 square miles and has not more
than 1,600 students in average daily attendance is adjusted by
applying the formula:
SAP [AA] = (1 + ((1,600 - ADA) X .00025)) X CAP [ABA]
(d) The program student count [basic allotment] of a school
district that offers a kindergarten through grade 12 program and
has less than 5,000 students in average daily attendance is
adjusted by applying the formula, of the following formulas, that
results in the greatest scale-adjusted program student count
[adjusted allotment]:
(1) the formula in Subsection (b) or (c) for which the
district is eligible; or
(2) SAP [AA] = (1 + ((5,000 - ADA) X .000025)) X CAP
[ABA].
SECTION 1.17. Sections 42.105(a) and (c), Education Code,
are amended to read as follows:
(a) Notwithstanding Sections [42.101,] 42.102[,] and
42.103, the program student count of a school district that has
fewer than 130 students in average daily attendance shall be
adjusted under Sections 42.102 and 42.103 [provided an adjusted
basic allotment] on the basis of 130 students in average daily
attendance if the district [it] offers a kindergarten through grade
12 program and has preceding or current year's average daily
attendance of at least 90 students or is 30 miles or more by bus
route from the nearest high school district. The program student
count of a school [A] district offering a kindergarten through
grade 8 program whose preceding or current year's average daily
attendance was at least 50 students or which is 30 miles or more by
bus route from the nearest high school district shall be adjusted
under Sections 42.102 and 42.103 [provided an adjusted basic
allotment] on the basis of 75 students in average daily attendance.
An average daily attendance of 60 students shall be the basis of
adjusting [providing] the program student count under Sections
42.102 and 42.103 [adjusted basic allotment] if a district offers a
kindergarten through grade 6 program and has preceding or current
year's average daily attendance of at least 40 students or is 30
miles or more by bus route from the nearest high school district.
(c) Notwithstanding Subsection (a) or Sections [42.101,]
42.102[,] and 42.103, the program student count of a school
district to which this subsection applies, as provided by
Subsection (b), that has fewer than 130 students in average daily
attendance shall be adjusted under Sections 42.102 and 42.103
[provided an adjusted basic allotment] on the basis of 130 students
in average daily attendance if it offers a kindergarten through
grade four program and has preceding or current year's average
daily attendance of at least 75 students or is 30 miles or more by
bus route from the nearest high school district.
SECTION 1.18. Sections 42.302, 42.303, and 42.304,
Education Code, are transferred to Subchapter B, Education Code,
redesignated as Sections 42.107, 42.108, and 42.109, Education
Code, and amended to read as follows:
Sec. 42.107 [42.302]. GUARANTEED YIELD [ALLOTMENT]. (a)
Each school district is guaranteed a specified amount per weighted
student in state and local funds for each cent of tax effort [over
that required for the district's local fund assignment] up to the
maximum level specified in this subchapter. The amount of state
support, subject only to the maximum amount under Section 42.108
[42.303], is determined by the formula:
GYA = (GL X WADA X DTR X 100) - LR
where:
"GYA" is the guaranteed yield amount of state funds to be
allocated to the district;
"GL" is the dollar amount guaranteed level of state and local
funds per weighted student per cent of tax effort, which is $56 [an
amount described by Subsection (a-1)] or a greater amount for any
year provided by appropriation;
"WADA" has the meaning assigned by Section 42.0053 [is the
number of students in weighted average daily attendance, which is
calculated by dividing the sum of the school district's allotments
under Subchapters B and C, less any allotment to the district for
transportation, any allotment under Section 42.158 or 42.160, and
50 percent of the adjustment under Section 42.102, by the basic
allotment for the applicable year];
"DTR" is the district [enrichment] tax rate of the school
district, which is determined by subtracting the amount [amounts]
specified by Subsection (b) from the total amount of maintenance
and operations taxes collected by the school district for the
applicable school year and dividing the difference by the quotient
of the district's taxable value of property as determined under
Subchapter M, Chapter 403, Government Code, or, if applicable,
under Section 42.2521, divided by 100; and
"LR" is the local revenue, which is determined by multiplying
"DTR" by the quotient of the district's taxable value of property as
determined under Subchapter M, Chapter 403, Government Code, or, if
applicable, under Section 42.2521, divided by 100.
[(a-1) For purposes of Subsection (a), the dollar amount
guaranteed level of state and local funds per weighted student per
cent of tax effort ("GL") for a school district is:
[(1) the greater of the amount of district tax revenue
per weighted student per cent of tax effort that would be available
to the Austin Independent School District, as determined by the
commissioner in cooperation with the Legislative Budget Board, if
the reduction of the limitation on tax increases as provided by
Section 11.26(a-1), (a-2), or (a-3), Tax Code, did not apply, or the
amount of district tax revenue per weighted student per cent of tax
effort used for purposes of this subdivision in the preceding
school year, for the first six cents by which the district's
maintenance and operations tax rate exceeds the rate equal to the
sum of the product of the state compression percentage, as
determined under Section 42.2516, multiplied by the maintenance and
operations tax rate adopted by the district for the 2005 tax year
and any additional tax effort included in calculating the
district's compressed tax rate under Section 42.101(a-1); and
[(2) $31.95, for the district's maintenance and
operations tax effort that exceeds the amount of tax effort
described by Subdivision (1).
[(a-2) The limitation on district enrichment tax rate
("DTR") under Section 42.303 does not apply to the district's
maintenance and operations tax effort described by Subsection
(a-1)(1).]
(b) In computing the district [enrichment] tax rate of a
school district, the total amount of maintenance and operations
taxes collected by the school district does not include the amount
of[:
[(1) the district's local fund assignment under
Section 42.252; or
[(2)] taxes paid into a tax increment fund under
Chapter 311, Tax Code.
(c) For purposes of this section, school district taxes for
which credit is granted under Section 31.035, 31.036, or 31.037,
Tax Code, are considered taxes collected by the school district as
if the taxes were paid when the credit for the taxes was granted.
(d) For purposes of this section, the total amount of
maintenance and operations taxes collected for an applicable school
year by a school district with alternate tax dates, as authorized by
Section 26.135, Tax Code, is the amount of taxes collected on or
after January 1 of the year in which the school year begins and not
later than December 31 of the same year.
(e) For purposes of this section, school district taxes for
which credit is granted under former Subchapter D, Chapter 313, Tax
Code, are considered taxes collected by the school district as if
the taxes were paid when the credit for the taxes was granted.
(f) If a school district imposes a maintenance and
operations tax at a rate greater than the rate equal to the product
of the state compression percentage, as determined under Section
42.2516, multiplied by the maintenance and operations tax rate
adopted by the district for the 2005 tax year, the district is
entitled to receive a guaranteed yield [an allotment] under this
section on the basis of that greater tax effort.
Sec. 42.108 [42.303]. LIMITATION ON DISTRICT [ENRICHMENT]
TAX RATE. The district [enrichment] tax rate ("DTR") under Section
42.107 [42.302] may not exceed [the amount per $100 of valuation by
which] the maximum rate permitted under Section 45.003 [exceeds the
rate used to determine the district's local share under Section
42.252], or a greater amount for any year provided by
appropriation.
Sec. 42.109 [42.304]. COMPUTATION OF AID FOR DISTRICT ON
MILITARY RESERVATION OR AT STATE SCHOOL. State assistance under
this subchapter for a school district located on a federal military
installation or at Moody State School is computed using the average
tax rate and property value per student of school districts in the
county, as determined by the commissioner.
SECTION 1.19. Subchapter B, Chapter 42, Education Code, is
amended by adding Section 42.110 to read as follows:
Sec. 42.110. MINIMUM AND MAXIMUM GAIN. (a) Notwithstanding
any other provision of this chapter, a school district is entitled
for the 2017-2018 and 2018-2019 school years to a minimum gain
guarantee of additional state aid in an amount equal to the lesser
of:
(1) the amount by which the district's state and local
revenue received for the applicable school year under Chapter 41
and this chapter is less than the state and local revenue received
by the district under Chapter 41 and this chapter for the 2016-2017
school year; or
(2) $65 per student in weighted average daily
attendance.
(b) Notwithstanding any other provision of this chapter,
the amount of state and local revenue received by a school district
under Chapter 41 and this chapter for the 2017-2018 or 2018-2019
school year may not exceed the sum of $250 per student in weighted
average daily attendance for that school year and the amount of
state and local revenue received by the district under Chapter 41
and this chapter for the 2016-2017 school year. If a school
district's state and local revenue would exceed that amount for the
applicable school year, the amount of state funds to which the
district would otherwise be entitled under this chapter shall be
reduced proportionately to comply with the maximum amount of
funding described by this subsection.
(c) The commissioner may adopt rules as necessary to
implement this section.
(d) This section expires September 1, 2019.
SECTION 1.20. The heading to Subchapter C, Chapter 42,
Education Code, is amended to read as follows:
SUBCHAPTER C. CONDITIONS APPLICABLE TO FUNDING BASED ON WEIGHTS
[SPECIAL ALLOTMENTS]
SECTION 1.21. Sections 42.151, 42.152, 42.153, 42.154,
42.1541, and 42.156, Education Code, are amended to read as
follows:
Sec. 42.151. SPECIAL EDUCATION. (a) In this section,
"special education funds" means the portion of state and local
funds attributable to students weighted under Sections
42.101(c)(2)-(13). [For each student in average daily attendance in
a special education program under Subchapter A, Chapter 29, in a
mainstream instructional arrangement, a school district is
entitled to an annual allotment equal to the adjusted basic
allotment multiplied by 1.1. For each full-time equivalent student
in average daily attendance in a special education program under
Subchapter A, Chapter 29, in an instructional arrangement other
than a mainstream instructional arrangement, a district is entitled
to an annual allotment equal to the adjusted basic allotment
multiplied by a weight determined according to instructional
arrangement as follows:
[Homebound5.0
[Hospital class3.0
[Speech therapy5.0
[Resource room3.0
[Self-contained, mild and moderate,
regular campus3.0
[Self-contained, severe, regular campus3.0
[Off home campus2.7
[Nonpublic day school1.7
[Vocational adjustment class2.3]
(b) [A special instructional arrangement for students with
disabilities residing in care and treatment facilities, other than
state schools, whose parents or guardians do not reside in the
district providing education services shall be established under
the rules of the State Board of Education. The funding weight for
this arrangement shall be 4.0 for those students who receive their
education service on a local school district campus. A special
instructional arrangement for students with disabilities residing
in state schools shall be established under the rules of the State
Board of Education with a funding weight of 2.8.
[(c)] For funding purposes, the number of contact hours
credited per day for each special education student in the off home
campus instructional arrangement may not exceed the contact hours
credited per day for the multidistrict class instructional
arrangement in the 1992-1993 school year.
(c) [(d)] For funding purposes, the number of contact hours
credited per day for each special education student in the resource
room; self-contained, mild and moderate; and self-contained,
severe, instructional arrangements may not exceed the average of
the statewide total contact hours credited per day for those three
instructional arrangements in the 1992-1993 school year.
(d) [(e)] The State Board of Education by rule shall
prescribe the qualifications a special education [an]
instructional arrangement must meet in order to be funded as a
particular instructional arrangement under this chapter [section].
In prescribing the qualifications that a mainstream instructional
arrangement must meet, the board shall establish requirements that
students with disabilities and their teachers receive the direct,
indirect, and support services that are necessary to enrich the
regular classroom and enable student success.
(e) [(f) In this section, "full-time equivalent student"
means 30 hours of contact a week between a special education student
and special education program personnel.
[(g)] The State Board of Education shall adopt rules and
procedures governing contracts for residential placement of
special education students. The legislature shall provide by
appropriation for the state's share of the costs of those
placements.
(f) Special education funds [(h) Funds allocated under this
section], other than an indirect cost apportionment [allotment]
established under Section 42.1541 [State Board of Education rule],
must be used in the special education program under Subchapter A,
Chapter 29.
(g) [(i)] The agency shall encourage the placement of
students in special education programs, including students in
residential instructional arrangements, in the least restrictive
environment appropriate for their educational needs.
(h) [(k)] A school district that provides an extended year
program required by federal law for special education students who
may regress is entitled to receive funds in an amount equal to 75
percent, or a lesser percentage determined by the commissioner, of
the special education funds attributable to a student in the
applicable instructional arrangement [adjusted basic allotment or
adjusted allotment, as applicable,] for each full-time equivalent
student in average daily attendance[, multiplied by the amount
designated for the student's instructional arrangement under this
section,] for each day the program is provided divided by the number
of days in the minimum school year. The total amount of state
funding for extended year services under this section may not
exceed $10 million per year. A school district may use funds
received under this section only in providing an extended year
program.
[(l) From the total amount of funds appropriated for special
education under this section, the commissioner shall withhold an
amount specified in the General Appropriations Act, and distribute
that amount to school districts for programs under Section 29.014.
The program established under that section is required only in
school districts in which the program is financed by funds
distributed under this subsection and any other funds available for
the program. After deducting the amount withheld under this
subsection from the total amount appropriated for special
education, the commissioner shall reduce each district's allotment
proportionately and shall allocate funds to each district
accordingly.]
Sec. 42.152. COMPENSATORY EDUCATION PROGRAMS [ALLOTMENT].
(a) In this section, "compensatory education funds" means the
portion of state and local funds attributable to students weighted
under Sections 42.101(c)(14) and (15) [For each student who is
educationally disadvantaged or who is a student who does not have a
disability and resides in a residential placement facility in a
district in which the student's parent or legal guardian does not
reside, a district is entitled to an annual allotment equal to the
adjusted basic allotment multiplied by 0.2, and by 2.41 for each
full-time equivalent student who is in a remedial and support
program under Section 29.081 because the student is pregnant].
(b) Compensatory education funds must [For purposes of this
section, the number of educationally disadvantaged students is
determined:
[(1) by averaging the best six months' numbers of
students eligible for enrollment in the national school lunch
program of free or reduced-price lunches for the preceding school
year; or
[(2) in the manner provided by commissioner rule.
[(b-1) A student receiving a full-time virtual education
through the state virtual school network may be included in
determining the number of educationally disadvantaged students
under Subsection (b) if the school district submits to the
commissioner a plan detailing the enhanced services that will be
provided to the student and the commissioner approves the plan.
[(c) Funds allocated under this section shall] be used to
fund supplemental programs and services designed to eliminate any
disparity in performance on assessment instruments administered
under Subchapter B, Chapter 39, or disparity in the rates of high
school completion between students at risk of dropping out of
school, as defined by Section 29.081, and all other students.
Specifically, the funds, other than an indirect cost apportionment
[allotment] established under Section 42.1541 [State Board of
Education rule], which may not exceed 45 percent, may be used to
meet the costs of providing a compensatory, intensive, or
accelerated instruction program under Section 29.081 or a
disciplinary alternative education program established under
Section 37.008[,] or to pay the costs associated with placing
students in a juvenile justice alternative education program
established under Section 37.011[, or to support a program eligible
under Title I of the Elementary and Secondary Education Act of 1965,
as provided by Pub. L. No. 103-382 and its subsequent amendments,
and by federal regulations implementing that Act, at a campus at
which at least 40 percent of the students are educationally
disadvantaged]. In meeting the costs of providing a compensatory,
intensive, or accelerated instruction program under Section
29.081, a district's compensatory education funds must [allotment
shall] be used for costs supplementary to the regular education
program, such as costs for program and student evaluation,
instructional materials and equipment and other supplies required
for quality instruction, supplemental staff expenses, salary for
teachers of at-risk students, smaller class size, and
individualized instruction. A home-rule school district or an
open-enrollment charter school must use compensatory education
funds [allocated under Subsection (a)] for a purpose authorized in
this subsection but is not otherwise subject to Subchapter C,
Chapter 29. For purposes of this subsection, a program
specifically designed to serve students at risk of dropping out of
school, as defined by Section 29.081, is considered to be a program
supplemental to the regular education program, and a district may
use its compensatory education funds [allotment] for such a
program.
(c) [(c-1)] Notwithstanding Subsection (b) [(c)],
compensatory education funds [allocated under this section] may be
used to fund in proportion to the percentage of students served by
the program that meet the criteria in Section 29.081(d) or (g):
(1) an accelerated reading instruction program under
Section 28.006(g); or
(2) a program for treatment of students who have
dyslexia or a related disorder as required by Section 38.003.
(d) [(c-2)] Notwithstanding Subsection (b) [(c)],
compensatory education funds [allocated under this section] may be
used to fund a school district's mentoring services program under
Section 29.089.
(e) [(d)] The agency shall evaluate the effectiveness of
accelerated instruction and support programs provided under
Section 29.081 for students at risk of dropping out of school.
(f) [(q)] The State Board of Education, with the assistance
of the comptroller, shall develop and implement by rule reporting
and auditing systems for district and campus expenditures of
compensatory education funds to ensure that those [compensatory
education] funds, other than the indirect cost apportionment
[allotment], are spent only to supplement the regular education
program as required by Subsection (b) [(c)]. The reporting
requirements shall be managed electronically to minimize local
administrative costs. A school district shall submit the report
required by this subsection not later than the 150th day after the
last day permissible for resubmission of information required under
Section 42.006.
(g) [(q-1)] The commissioner shall develop a system to
identify school districts that are at high risk of having used
compensatory education funds other than in compliance with
Subsection (b) [(c)] or of having inadequately reported
compensatory education expenditures. If a review of the report
submitted under Subsection (f) [(q)], using the risk-based system,
indicates that a district is not at high risk of having misused
compensatory education funds or of having inadequately reported
compensatory education expenditures, the district may not be
required to perform a local audit of compensatory education
expenditures and is not subject to on-site monitoring under this
section.
(h) [(q-2)] If a review of the report submitted under
Subsection (f) [(q)], using the risk-based system, indicates that a
school district is at high risk of having misused compensatory
education funds, the commissioner shall notify the district of that
determination. The district must respond to the commissioner not
later than the 30th day after the date the commissioner notifies the
district of the commissioner's determination. If the district's
response does not change the commissioner's determination that the
district is at high risk of having misused compensatory education
funds or if the district does not respond in a timely manner, the
commissioner shall:
(1) require the district to conduct a local audit of
compensatory education expenditures for the current or preceding
school year;
(2) order agency staff to conduct on-site monitoring
of the district's compensatory education expenditures; or
(3) both require a local audit and order on-site
monitoring.
(i) [(q-3)] If a review of the report submitted under
Subsection (f) [(q)], using the risk-based system, indicates that a
school district is at high risk of having inadequately reported
compensatory education expenditures, the commissioner may require
agency staff to assist the district in following the proper
reporting methods or amending a district or campus improvement plan
under Subchapter F, Chapter 11. If the district does not take
appropriate corrective action before the 45th day after the date
the agency staff notifies the district of the action the district is
expected to take, the commissioner may:
(1) require the district to conduct a local audit of
the district's compensatory education expenditures; or
(2) order agency staff to conduct on-site monitoring
of the district's compensatory education expenditures.
(j) [(q-4)] The commissioner, in the year following a local
audit of compensatory education expenditures, shall withhold from a
school district's foundation school fund payment an amount equal to
the amount of compensatory education funds the agency determines
were not used in compliance with Subsection (b) [(c)]. The
commissioner shall release to a district funds withheld under this
subsection when the district provides to the commissioner a
detailed plan to spend those funds in compliance with Subsection
(b) [(c)].
(k) [(r)] The commissioner shall grant a one-year exemption
from the requirements of Subsections (f)-(j) [(q)-(q-4)] to a
school district in which the group of students who have failed to
perform satisfactorily in the preceding school year on an
assessment instrument required under Section 39.023(a), (c), or (l)
subsequently performs on those assessment instruments at a level
that meets or exceeds a level prescribed by commissioner rule. Each
year the commissioner, based on the most recent information
available, shall determine if a school district is entitled to an
exemption for the following school year and notify the district of
that determination.
Sec. 42.153. BILINGUAL EDUCATION PROGRAMS [ALLOTMENT]. (a)
In this section, "bilingual education funds" means the portion of
state and local funds attributable to students weighted under
Section 42.101(c)(16) [For each student in average daily attendance
in a bilingual education or special language program under
Subchapter B, Chapter 29, a district is entitled to an annual
allotment equal to the adjusted basic allotment multiplied by 0.1].
(b) Bilingual education funds [Funds allocated under this
section], other than an indirect cost apportionment [allotment]
established under Section 42.1541 [State Board of Education rule],
must be used in providing bilingual education or special language
programs under Subchapter B, Chapter 29, and must be accounted for
under existing agency reporting and auditing procedures.
(c) A school district's bilingual education funds [or
special language allocation] may be used only for program and
student evaluation, instructional materials and equipment, staff
development, supplemental staff expenses, salary supplements for
teachers, and other supplies required for quality instruction and
smaller class size.
Sec. 42.154. CAREER AND TECHNOLOGY EDUCATION PROGRAMS
[ALLOTMENT]. (a) The portion of state and local funds attributable
to students weighted [For each full-time equivalent student in
average daily attendance in an approved career and technology
education program in grades nine through 12 or in career and
technology education programs for students with disabilities in
grades seven through 12, a district is entitled to:
[(1) an annual allotment equal to the adjusted basic
allotment multiplied by a weight of 1.35; and
[(2) $50, if the student is enrolled in:
[(A) two or more advanced career and technology
education classes for a total of three or more credits; or
[(B) an advanced course as part of a tech-prep
program under Subchapter T, Chapter 61.
[(b) In this section, "full-time equivalent student" means
30 hours of contact a week between a student and career and
technology education program personnel.
[(c) Funds allocated] under Section 42.101(c)(17) [this
section], other than an indirect cost apportionment [allotment]
established under Section 42.1541 [State Board of Education rule],
must be used in providing career and technology education programs
in grades 9 [nine] through 12 or career and technology education
programs for students with disabilities in grades 7 [seven] through
12 under Sections 29.182, 29.183, and 29.184.
(b) [(d)] The commissioner shall conduct a cost-benefit
comparison between career and technology education programs and
mathematics and science programs.
[(e) Out of the total statewide allotment for career and
technology education under this section, the commissioner shall set
aside an amount specified in the General Appropriations Act, which
may not exceed an amount equal to one percent of the total amount
appropriated, to support regional career and technology education
planning. After deducting the amount set aside under this
subsection from the total amount appropriated for career and
technology education under this section, the commissioner shall
reduce each district's tier one allotments in the same manner
described for a reduction in allotments under Section 42.253.]
Sec. 42.1541. INDIRECT COSTS [COST ALLOTMENTS]. (a) The
State Board of Education shall by rule establish [increase] the
indirect cost apportionments described by [allotments established
under] Sections 42.151(f) [42.151(h)], 42.152(b) [42.152(c)],
42.153(b), and 42.154(a) at an amount and proportion not less than
the amount and proportion resulting from the indirect cost
allotment [42.154(a-1) and (c) and] in effect for the 2016-2017
[2010-2011] school year [in proportion to the average percentage
reduction in total state and local maintenance and operations
revenue provided under this chapter for the 2011-2012 school year
as a result of S.B. Nos. 1 and 2, Acts of the 82nd Legislature, 1st
Called Session, 2011].
(b) To the extent necessary to permit the board to comply
with this section, the limitation on the percentage of the indirect
cost apportionment [allotment] prescribed by Section 42.152(b)
[42.152(c)] does not apply.
(c) The board shall take the action required by Subsection
(a) not later than the date that permits the [increased] indirect
cost apportionments [allotments] to apply beginning with the
2017-2018 [2011-2012] school year.
Sec. 42.156. GIFTED AND TALENTED STUDENT PROGRAMS
[ALLOTMENT]. (a) The portion of state and local funds attributable
to students weighted [For each identified student a school
district serves in a program for gifted and talented students that
the district certifies to the commissioner as complying with
Subchapter D, Chapter 29, a district is entitled to an annual
allotment equal to the district's adjusted basic allotment as
determined under Section 42.102 or Section 42.103, as applicable,
multiplied by .12 for each school year or a greater amount provided
by appropriation.
[(b) Funds allocated] under Section 42.101(c)(18) [this
section], other than the amount that represents the program's share
of general administrative costs, must be used in providing programs
for gifted and talented students under Subchapter D, Chapter 29,
including programs sanctioned by International Baccalaureate and
Advanced Placement, or in developing programs for gifted and
talented students. Each school district must account for the
expenditure of state funds as provided by rule of the State Board of
Education. If by the end of the 12th month after receiving the
funds [an allotment] for developing a program a district has failed
to implement a program, the district must refund the amount of the
funds [allotment] to the agency within 30 days.
(b) [(c)] Not more than five percent of a school district's
students in average daily attendance are eligible for funding under
this chapter for attendance in a gifted and talented student
program [section].
(c) [(d) If the amount of state funds for which school
districts are eligible under this section exceeds the amount of
state funds appropriated in any year for the programs, the
commissioner shall reduce each district's tier one allotments in
the same manner described for a reduction in allotments under
Section 42.253.
[(e)] If the total amount of funds attributable to students
weighted under Section 42.101(c)(18) [allotted under this section]
before a date set by rule of the State Board of Education is less
than the total amount appropriated for a school year, the
commissioner shall transfer the remainder to any program for which
compensatory education funds, as defined by [an allotment under]
Section 42.152, may be used.
[(f) After each district has received allotted funds for
this program, the State Board of Education may use up to $500,000 of
the funds allocated under this section for programs such as
MATHCOUNTS, Future Problem Solving, Odyssey of the Mind, and
Academic Decathlon, as long as these funds are used to train
personnel and provide program services. To be eligible for funding
under this subsection, a program must be determined by the State
Board of Education to provide services that are effective and
consistent with the state plan for gifted and talented education.]
SECTION 1.22. Section 42.160, Education Code, is amended to
read as follows:
Sec. 42.160. HIGH SCHOOL PROGRAMS [ALLOTMENT]. (a) In this
section, "high school funds" means the portion of state and local
funds attributable to students weighted under Section
42.101(c)(20) [A school district is entitled to an annual allotment
of $275 for each student in average daily attendance in grades 9
through 12 in the district].
(b) [A school district that is required to take action under
Chapter 41 to reduce its wealth per student to the equalized wealth
level is entitled to a credit, in the amount of the allotments to
which the district is entitled under this section, against the
total amount required under Section 41.093 for the district to
purchase attendance credits. A school district that is otherwise
ineligible for state aid under this chapter is entitled to receive
allotments under this section.
[(c)] An open-enrollment charter school is entitled to high
school funds [an allotment under this section] in the same manner as
a school district.
(c) [(d)] The commissioner shall adopt rules to administer
this section, including rules related to the permissible use of
high school funds by [allocated under this section to] an
open-enrollment charter school.
SECTION 1.23. Chapter 42, Education Code, is amended by
adding Subchapter D and a subchapter heading to read as follows:
SUBCHAPTER D. EXPENSE ALLOTMENTS AND ADDITIONAL STATE AID
SECTION 1.24. Sections 42.158, 42.155, and 42.106,
Education Code, are transferred to Subchapter D, Chapter 42,
Education Code, as added by this Act, redesignated as Sections
42.201, 42.202, and 42.203, Education Code, and amended to read as
follows:
Sec. 42.201 [42.158]. NEW INSTRUCTIONAL FACILITY
ALLOTMENT. (a) In this section, "instructional facility" has the
meaning assigned by Section 46.001.
(b) A school district is entitled to an additional allotment
as provided by this section for operational expenses associated
with opening a new instructional facility.
(c) [(b)] For the first school year in which students attend
a new instructional facility, a school district is entitled to an
allotment of $250 for each student in average daily attendance at
the facility. For the second school year in which students attend
that instructional facility, a school district is entitled to an
allotment of $250 for each additional student in average daily
attendance at the facility.
(d) [(c)] For purposes of this section, the number of
additional students in average daily attendance at a facility is
the difference between the number of students in average daily
attendance in the current year at that facility and the number of
students in average daily attendance at that facility in the
preceding year.
(e) [(d)] Subject to Subsection (f) [(d-1)], the amount
appropriated for allotments under this section may not exceed $25
million in a school year. If the total amount of allotments to
which districts are entitled under this section for a school year
exceeds the amount appropriated under this subsection, the
commissioner shall reduce each district's allotment under this
section in the manner provided by Section 42.253(h).
(f) [(d-1)] In addition to the appropriation amount
described by Subsection (e) [(d)], the amount of $1 million may be
appropriated each school year to supplement the allotment to which
a school district is entitled under this section that may be
provided using the appropriation amount described by Subsection (e)
[(d)]. The commissioner shall first apply the funds appropriated
under this subsection to prevent any reduction under Subsection (e)
[(d)] in the allotment for attendance at an eligible high school
instructional facility, subject to the maximum amount of $250 for
each student in average daily attendance. Any funds remaining
after preventing all reductions in amounts due for high school
instructional facilities may be applied proportionally to all other
eligible instructional facilities, subject to the maximum amount of
$250 for each student in average daily attendance.
(g) [(e)] A school district that is required to take action
under Chapter 41 to reduce its wealth per student to the equalized
wealth level is entitled to a credit, in the amount of the
allotments to which the district is entitled under this section,
against the total amount required under Section 41.093 for the
district to purchase attendance credits. A school district that is
otherwise ineligible for state aid under this chapter is entitled
to receive allotments under this section.
(h) [(f)] The commissioner may adopt rules necessary to
implement this section.
[(g) In this section, "instructional facility" has the
meaning assigned by Section 46.001.]
Sec. 42.202 [42.155]. TRANSPORTATION ALLOTMENT. (a) Each
school district or county operating a transportation system is
entitled to allotments for transportation costs as provided by this
section.
(b) In [As used in] this section:
(1) "Regular eligible student" means a student who
resides two or more miles from the student's campus of regular
attendance, measured along the shortest route that may be traveled
on public roads, and who is not classified as a student eligible for
special education services.
(2) "Eligible special education student" means a
student who is eligible for special education services under
Section 29.003 and who would be unable to attend classes without
special transportation services.
(3) "Linear density" means the average number of
regular eligible students transported daily, divided by the
approved daily route miles traveled by the respective
transportation system.
(c) Each school district or county operating a regular
transportation system is entitled to an allotment based on the
daily cost per regular eligible student of operating and
maintaining the regular transportation system and the linear
density of that system. In determining the cost, the commissioner
shall give consideration to factors affecting the actual cost of
providing these transportation services in each district or county.
The average actual cost is to be computed by the commissioner and
included for consideration by the legislature in the General
Appropriations Act. The allotment per mile of approved route may
not exceed the amount set by appropriation.
(d) A school district or county may apply for and on
approval of the commissioner receive an additional amount of up to
10 percent of its regular transportation allotment to be used for
the transportation of children living within two miles of the
school they attend who would be subject to hazardous traffic
conditions if they walked to school. Each board of trustees shall
provide to the commissioner the definition of hazardous conditions
applicable to that district and shall identify the specific
hazardous areas for which the allocation is requested. A hazardous
condition exists where no walkway is provided and children must
walk along or cross a freeway or expressway, an underpass, an
overpass or a bridge, an uncontrolled major traffic artery, an
industrial or commercial area, or another comparable condition.
(e) The commissioner may grant an amount set by
appropriation for private or commercial transportation for
eligible students from isolated areas. The need for this type of
transportation grant shall be determined on an individual basis and
the amount granted shall not exceed the actual cost. The grants may
be made only in extreme hardship cases. A grant may not be made if
the students live within two miles of an approved school bus route.
(f) The cost of transporting career and technology
education students from one campus to another inside a school
district or from a sending district to another secondary public
school for a career and technology program or an area career and
technology school or to an approved post-secondary institution
under a contract for instruction approved by the agency shall be
reimbursed based on the number of actual miles traveled times the
district's official extracurricular travel per mile rate as set by
the board of trustees and approved by the agency.
(g) A school district or county that provides special
transportation services for eligible special education students is
entitled to a state allocation paid on a previous year's
cost-per-mile basis. The maximum rate per mile allowable shall be
set by appropriation based on data gathered from the first year of
each preceding biennium. Districts may use a portion of their
support allocation to pay transportation costs, if necessary. The
commissioner may grant an amount set by appropriation for private
transportation to reimburse parents or their agents for
transporting eligible special education students. The mileage
allowed shall be computed along the shortest public road from the
student's home to school and back, morning and afternoon. The need
for this type transportation shall be determined on an individual
basis and shall be approved only in extreme hardship cases.
(h) Funds allotted under this section must be used in
providing transportation services.
(i) In the case of a school district belonging to a county
transportation system, the district's transportation allotment for
purposes of determining a district's Foundation School Program
[foundation school program] allocations is determined on the basis
of the number of approved daily route miles in the district
multiplied by the allotment per mile to which the county
transportation system is entitled.
(j) The Texas School for the Deaf is entitled to an
allotment under this section. The commissioner shall determine the
appropriate allotment.
(k) Notwithstanding any other provision of this section,
the commissioner may not reduce the allotment to which a school
district or county is entitled under this section because the
district or county provides transportation for an eligible student
to and from a child-care facility, as defined by Section 42.002,
Human Resources Code, or a grandparent's residence instead of the
student's residence, as authorized by Section 34.007, if the
transportation is provided within the approved routes of the
district or county for the school the student attends.
(l) A school district may, with the funds allotted under
this section, provide a bus pass or card for another transportation
system to each student who is eligible to use the regular
transportation system of the district but for whom the regular
transportation system of the district is not a feasible method of
providing transportation. The commissioner by rule shall provide
procedures for a school district to provide bus passes or cards to
students under this subsection.
Sec. 42.203 [42.106]. TUITION ALLOTMENT FOR DISTRICTS NOT
OFFERING ALL GRADE LEVELS. A school district that contracts for
students residing in the district to be educated in another
district under Section 25.039(a) is entitled to receive an
allotment equal to the total amount of tuition required to be paid
by the district under Section 25.039, not to exceed the amount
specified by commissioner rule under Section 25.039(b).
SECTION 1.25. Subchapter D, Chapter 42, Education Code, as
added by this Act, is amended by adding Sections 42.204 and 42.205
to read as follows:
Sec. 42.204. ALLOTMENT FOR DISTRICTS THAT PROVIDE EDUCATION
SOLELY TO STUDENTS CONFINED TO OR EDUCATED IN HOSPITALS. (a) A
school district that offers a program under Section 29.014 is
entitled to an allotment in an amount specified in the General
Appropriations Act, adjusted by:
(1) the cost of education adjustment under Section
42.102 for the school district in which the district is
geographically located; and
(2) the weight for a homebound student under Section
42.101(c)(3).
(b) A program established under Section 29.014 is required
only in a school district in which the program is financed by an
allotment under this section or by any other funds available for the
program.
Sec. 42.205. ALLOTMENT FOR CERTAIN GIFTED AND TALENTED
EDUCATION PROGRAMS. (a) A school district that offers MATHCOUNTS,
Future Problem Solving, Odyssey of the Mind, Academic Decathlon, or
a similar program for gifted and talented students may receive
additional funding in an amount determined by the commissioner.
The commissioner may not provide more than $500,000 each year in
total funding under this section.
(b) To be eligible for funding under this section, a program
must be determined by the State Board of Education to provide
services that are effective and consistent with the state plan for
gifted and talented education.
(c) Funds allotted under this section may be used only to
train personnel or provide program services.
SECTION 1.26. Sections 42.2513, 42.2514, and 42.2515,
Education Code, are transferred to Subchapter D, Chapter 42,
Education Code, as added by this Act, and redesignated as Sections
42.206, 42.207, and 42.208, Education Code, to read as follows:
Sec. 42.206 [42.2513]. ADDITIONAL STATE AID FOR STAFF
SALARY INCREASES. (a) A school district, including a school
district that is otherwise ineligible for state aid under this
chapter, is entitled to state aid in an amount equal to the sum of:
(1) the product of $500 multiplied by the number of
full-time district employees, other than administrators or
employees subject to the minimum salary schedule under Section
21.402; and
(2) the product of $250 multiplied by the number of
part-time district employees, other than administrators.
(b) A determination by the commissioner under this section
is final and may not be appealed.
(c) The commissioner may adopt rules to implement this
section.
Sec. 42.207 [42.2514]. ADDITIONAL STATE AID FOR TAX
INCREMENT FINANCING PAYMENTS. For each school year, a school
district, including a school district that is otherwise ineligible
for state aid under this chapter, is entitled to state aid in an
amount equal to the amount the district is required to pay into the
tax increment fund for a reinvestment zone under Section
311.013(n), Tax Code.
Sec. 42.208 [42.2515]. ADDITIONAL STATE AID FOR AD VALOREM
TAX CREDITS UNDER TEXAS ECONOMIC DEVELOPMENT ACT. (a) For each
school year, a school district, including a school district that is
otherwise ineligible for state aid under this chapter, is entitled
to state aid in an amount equal to the amount of all tax credits
credited against ad valorem taxes of the district in that year under
former Subchapter D, Chapter 313, Tax Code.
(b) The commissioner may adopt rules to implement and
administer this section.
SECTION 1.27. Section 42.251, Education Code, is amended to
read as follows:
Sec. 42.251. FINANCING; GENERAL RULE. (a) The sum of [the
basic allotment under Subchapter B and the special allotments under
Subchapter C, computed in accordance with this chapter, constitute
the tier one allotments. The sum of the tier one allotments and]
the guaranteed yield [allotments] under Section 42.107 and the
expense allotments and additional state aid under Subchapter D [F],
computed in accordance with this chapter, constitutes [constitute]
the total cost of the Foundation School Program.
(b) The program shall be financed by:
(1) ad valorem tax revenue generated by an equalized
[uniform] school district effort;
(2) [ad valorem tax revenue generated by local school
district effort in excess of the equalized uniform school district
effort;
[(3)] state available school funds distributed in
accordance with law; and
(3) [(4)] state funds appropriated for the purposes of
public school education and allocated to each district in an amount
sufficient to finance the cost of each district's Foundation School
Program not covered by other funds specified in this subsection.
SECTION 1.28. Section 42.2516, Education Code, as effective
September 1, 2017, is amended by adding Subsection (a-1) to read as
follows:
(a-1) For purposes of this title, the state maximum
compressed tax rate is the product of the state compression
percentage multiplied by $1.50.
SECTION 1.29. The heading to Section 42.252, Education
Code, is amended to read as follows:
Sec. 42.252. LOCAL PROPERTY VALUES [SHARE OF PROGRAM COST
(TIER ONE)].
SECTION 1.30. Section 42.252(b), Education Code, is amended
to read as follows:
(b) The commissioner shall adjust the values reported in the
official report of the comptroller as required by Section 5.09(a),
Tax Code, to reflect reductions in taxable value of property
resulting from natural or economic disaster after January 1 in the
year in which the valuations are determined. The decision of the
commissioner is final. An adjustment does not affect the local
revenue level [fund assignment] of any other school district.
SECTION 1.31. Section 42.2528(b), Education Code, is
amended to read as follows:
(b) In awarding grants under this section, the commissioner
shall give highest priority to school districts with maintenance
and operations tax rates at the greatest rates permitted by law.
The commissioner shall also give priority to:
(1) districts with maintenance and operations tax
rates at least equal to the state maximum compressed tax rate, as
defined by Section 42.2516 [42.101(a)], and lowest amounts of
maintenance and operations tax revenue per weighted student; and
(2) districts with debt service tax rates near or
equal to the greatest rates permitted by law.
SECTION 1.32. Sections 42.253(a) and (c), Education Code,
are amended to read as follows:
(a) For each school year the commissioner shall determine:
(1) the amount of money to which a school district is
entitled under Subchapters B and D [C];
(2) [the amount of money to which a school district is
entitled under Subchapter F;
[(3)] the amount of money allocated to the district
from the available school fund; and
(3) [(4)] the amount of each district's [tier one]
local revenue level [share] under Section 42.107 [42.252; and
[(5) the amount of each district's tier two local share
under Section 42.302].
(c) Each school district is entitled to an amount equal to
the difference for that district between the amount provided by
Subsection [the sum of Subsections] (a)(1) [and (a)(2)] and the sum
of Subsections (a)(2) and (a)(3)[, (a)(4), and (a)(5)].
SECTION 1.33. Section 42.257(b), Education Code, is amended
to read as follows:
(b) If the school district would have received a greater
amount from the foundation school fund for the applicable school
year using the adjusted value, the commissioner shall add the
difference to subsequent distributions to the district from the
foundation school fund. An adjustment does not affect the local
revenue level [fund assignment] of any other district.
ARTICLE 2. CONFORMING AMENDMENTS
SECTION 2.01. Section 7.062(c), Education Code, is amended
to read as follows:
(c) Except as otherwise provided by this subsection, if the
commissioner certifies that the amount appropriated for a state
fiscal year for purposes of Subchapters A and B, Chapter 46, exceeds
the amount to which school districts are entitled under those
subchapters for that year, the commissioner shall use the excess
funds, in an amount not to exceed $20 million in any state fiscal
year, for the purpose of making grants under this section. The use
of excess funds under this subsection has priority over any
provision of Chapter 42 that permits or directs the use of excess
Foundation School Program [foundation school program] funds,
including Sections [42.2517,] 42.2521, 42.2522, and 42.2531. The
commissioner is required to use excess funds as provided by this
subsection only if the commissioner is not required to reduce the
total amount of state funds allocated to school districts under
Section 42.253(h).
SECTION 2.02. Section 8.051(d), Education Code, is amended
to read as follows:
(d) Each regional education service center shall maintain
core services for purchase by school districts and campuses. The
core services are:
(1) training and assistance in:
(A) teaching each subject area assessed under
Section 39.023; and
(B) providing instruction in personal financial
literacy as required under Section 28.0021;
(2) training and assistance in providing each program
described by Sections 42.101(c)(1)-(18) [that qualifies for a
funding allotment under Section 42.151, 42.152, 42.153, or 42.156];
(3) assistance specifically designed for a school
district or campus assigned an unacceptable performance rating
under Section 39.054;
(4) training and assistance to teachers,
administrators, members of district boards of trustees, and members
of site-based decision-making committees;
(5) assistance specifically designed for a school
district that is considered out of compliance with state or federal
special education requirements, based on the agency's most recent
compliance review of the district's special education programs; and
(6) assistance in complying with state laws and rules.
SECTION 2.03. Section 11.158(a), Education Code, is amended
to read as follows:
(a) The board of trustees of an independent school district
may require payment of:
(1) a fee for materials used in any program in which
the resultant product in excess of minimum requirements becomes, at
the student's option, the personal property of the student, if the
fee does not exceed the cost of materials;
(2) membership dues in student organizations or clubs
and admission fees or charges for attending extracurricular
activities, if membership or attendance is voluntary;
(3) a security deposit for the return of materials,
supplies, or equipment;
(4) a fee for personal physical education and athletic
equipment and apparel, although any student may provide the
student's own equipment or apparel if it meets reasonable
requirements and standards relating to health and safety
established by the board;
(5) a fee for items of personal use or products that a
student may purchase at the student's option, such as student
publications, class rings, annuals, and graduation announcements;
(6) a fee specifically permitted by any other statute;
(7) a fee for an authorized voluntary student health
and accident benefit plan;
(8) a reasonable fee, not to exceed the actual annual
maintenance cost, for the use of musical instruments and uniforms
owned or rented by the district;
(9) a fee for items of personal apparel that become the
property of the student and that are used in extracurricular
activities;
(10) a parking fee or a fee for an identification card;
(11) a fee for a driver training course, not to exceed
the actual district cost per student in the program for the current
school year;
(12) a fee for a course offered for credit that
requires the use of facilities not available on the school premises
or the employment of an educator who is not part of the school's
regular staff, if participation in the course is at the student's
option;
(13) a fee for a course offered during summer school,
except that the board may charge a fee for a course required for
graduation only if the course is also offered without a fee during
the regular school year;
(14) a reasonable fee for transportation of a student
who lives within two miles of the school the student attends to and
from that school, except that the board may not charge a fee for
transportation for which the [school] district receives funds under
Section 42.202(d) [42.155(d)];
(15) a reasonable fee, not to exceed $50, for costs
associated with an educational program offered outside of regular
school hours through which a student who was absent from class
receives instruction voluntarily for the purpose of making up the
missed instruction and meeting the level of attendance required
under Section 25.092; or
(16) if the district does not receive any funds under
Section 42.202 [42.155] and does not participate in a county
transportation system for which an allotment is provided under
Section 42.202(i) [42.155(i)], a reasonable fee for the
transportation of a student to and from the school the student
attends.
SECTION 2.04. Section 12.106(a), Education Code, as
effective September 1, 2017, is amended to read as follows:
(a) A charter holder is entitled to receive for the
open-enrollment charter school funding under Chapter 42 equal to
the amount of funding per student in weighted average daily
attendance[, excluding enrichment funding under Section
42.302(a),] to which the charter holder would be entitled for the
school under Chapter 42 if the school were a school district without
a [tier one] local revenue level [share] for purposes of Section
42.253.
SECTION 2.05. Section 12.106(a-1), Education Code, is
amended to read as follows:
(a-1) In determining funding for an open-enrollment charter
school under Subsection (a), adjustments under Sections 42.102,
42.103, [42.104,] and 42.105 are based on the average adjustment
for the state.
SECTION 2.06. Section 13.054(f), Education Code, is amended
to read as follows:
(f) For five years beginning with the school year in which
the annexation occurs, the commissioner shall annually adjust the
local revenue level [fund assignment] of a district to which
territory is annexed under this section by multiplying the enlarged
district's local revenue level [fund assignment computed under
Section 42.252] by a fraction, the numerator of which is the number
of students residing in the district preceding the date of the
annexation and the denominator of which is the number of students
residing in the district as enlarged on the date of the annexation.
SECTION 2.07. Section 21.402(a), Education Code, as
effective September 1, 2017, is amended to read as follows:
(a) Except as provided by Subsection (e-1) or (f), a school
district must pay each classroom teacher, full-time librarian,
full-time school counselor certified under Subchapter B, or
full-time school nurse not less than the minimum monthly salary,
based on the employee's level of experience in addition to other
factors, as determined by commissioner rule, determined by the
following formula:
MS = SF x (GL x FS)
where:
"MS" is the minimum monthly salary;
"SF" is the applicable salary factor specified by Subsection
(c);
"GL" is the guaranteed level, as defined by Section 42.107;
and
"FS" is the percentage [amount], as determined by the
commissioner under Subsection (b), of the guaranteed level that in
the 2017-2018 school year produces for each level of experience an
amount equal to the minimum monthly salary required for that level
of experience for the 2016-2017 school year [basic allotment as
provided by Section 42.101(a) or (b) for a school district with a
maintenance and operations tax rate at least equal to the state
maximum compressed tax rate, as defined by Section 42.101(a)].
SECTION 2.08. Section 21.402(b), Education Code, is amended
to read as follows:
(b) Not later than June 1 of each year, the commissioner
shall determine the [basic allotment and resulting] monthly
salaries to be paid by school districts as provided by Subsection
(a).
SECTION 2.09. Section 28.0211(m-1), Education Code, is
amended to read as follows:
(m-1) For purposes of certification under Subsection (m),
the commissioner may not consider Foundation School Program funds
except for compensatory education funds [under Section 42.152].
This section may be implemented only if the commissioner certifies
that sufficient funds have been appropriated during a school year
for administering the accelerated instruction programs specified
under this section and Section 28.0217, including teacher training
for that purpose.
SECTION 2.10. Section 29.002, Education Code, is amended to
read as follows:
Sec. 29.002. DEFINITION. In this subchapter, "special
services" means:
(1) special education instruction, which may be
provided by professional and supported by paraprofessional
personnel in the regular classroom or in an instructional
arrangement described by Sections 42.101(c)(2)-(13) [Section
42.151]; and
(2) related services, which are developmental,
corrective, supportive, or evaluative services, not instructional
in nature, that may be required for the student to benefit from
special education instruction and for implementation of a student's
individualized education program.
SECTION 2.11. Section 29.008(b), Education Code, is amended
to read as follows:
(b) Except as provided by Subsection (c), costs of an
approved contract for residential placement may be paid from a
combination of federal, state, and local funds, as directed by the
commissioner. [The local share of the total contract cost for each
student is that portion of the local tax effort that exceeds the
district's local fund assignment under Section 42.252, divided by
the average daily attendance in the district. If the contract
involves a private facility, the state share of the total contract
cost is that amount remaining after subtracting the local share. If
the contract involves a public facility, the state share is that
amount remaining after subtracting the local share from the portion
of the contract that involves the costs of instructional and
related services. For purposes of this subsection, "local tax
effort" means the total amount of money generated by taxes imposed
for debt service and maintenance and operation less any amounts
paid into a tax increment fund under Chapter 311, Tax Code.]
SECTION 2.12. Section 29.018(b), Education Code, is amended
to read as follows:
(b) A school district is eligible to apply for a grant under
this section if:
(1) the district does not receive sufficient funds,
including the state's share of special education [state] funds, as
defined by [provided under] Section 42.151, and federal funds, for
a student with disabilities to pay for the special education
services provided to the student; or
(2) the district does not receive sufficient funds,
including the state's share of special education [state] funds, as
defined by [provided under] Section 42.151, and federal funds, for
all students with disabilities in the district to pay for the
special education services provided to the students.
SECTION 2.13. Section 29.081(b-2), Education Code, is
amended to read as follows:
(b-2) In this subsection, "compensatory education funds"
has the meaning assigned by Section 42.152. A district that is
required to provide accelerated instruction under Subsection (b-1)
shall separately budget sufficient funds, including compensatory
education funds [under Section 42.152], for that purpose. A
district may not budget compensatory education funds [received
under Section 42.152] for any other purpose until the district
adopts a budget to support additional accelerated instruction under
Subsection (b-1).
SECTION 2.14. Section 29.082(a), Education Code, is amended
to read as follows:
(a) A school district may set aside an amount from the
district's compensatory education funds, as defined by [allotment
under] Section 42.152, or may apply to the agency for funding of an
extended year program for a period not to exceed 30 instructional
days for students in:
(1) kindergarten through grade 11 who are identified
as likely not to be promoted to the next grade level for the
succeeding school year; or
(2) grade 12 who are identified as likely not to
graduate from high school before the beginning of the succeeding
school year.
SECTION 2.15. Section 29.089(b), Education Code, is amended
to read as follows:
(b) The commissioner, in consultation with the governor,
lieutenant governor, and speaker of the house of representatives,
by rule shall determine accountability standards under this section
for a school district providing a mentoring services program using
compensatory education funds, as defined by [allocated under]
Section 42.152.
SECTION 2.16. Section 29.097(g), Education Code, is amended
to read as follows:
(g) For purposes of Subsection (f)(2), a school district is
encouraged to use high school funds, as defined by [allocated
under] Section 42.160.
SECTION 2.17. Section 29.098(e), Education Code, is amended
to read as follows:
(e) For purposes of Subsection (d)(2), a school district is
encouraged to use high school funds, as defined by [allocated
under] Section 42.160.
SECTION 2.18. Section 29.203(b), Education Code, is amended
to read as follows:
(b) A school district is entitled to funding attributable to
students weighted under Section 42.101(c)(19) [the allotment
provided by Section 42.157] for each eligible student using a
public education grant. If the district has a wealth per student
greater than the guaranteed wealth level but less than the
equalized wealth level, a school district is entitled under rules
adopted by the commissioner to additional state aid in an amount
equal to the difference between the cost to the district of
providing services to a student using a public education grant and
the sum of the state's share of funds [state aid received because of
the allotment under Section 42.157] and money from the available
school fund attributable to the student.
SECTION 2.19. Section 29.203(g)(2), Education Code, is
amended to read as follows:
(2) "Guaranteed wealth level" means a wealth per
student equal to the dollar amount guaranteed level of state and
local funds per weighted student per cent of tax effort, as provided
by Section 42.107 [42.302], multiplied by 10,000.
SECTION 2.20. Sections 29.918(a) and (b), Education Code,
are amended to read as follows:
(a) Notwithstanding Section 39.234 or 42.152, a school
district or open-enrollment charter school with a high dropout
rate, as determined by the commissioner, must submit a plan to the
commissioner describing the manner in which the district or charter
school intends to use [the] compensatory education funds, as
defined by [allotment under] Section 42.152, and high school funds,
as defined by [the high school allotment under] Section 42.160, for
developing and implementing research-based strategies for dropout
prevention. The district or charter school shall submit the plan
not later than December 1 of each school year preceding the school
year in which the district or charter school will receive the
compensatory education funds [allotment] or high school funds
[allotment] to which the plan applies.
(b) A school district or open-enrollment charter school to
which this section applies may not spend or obligate more than 25
percent of the district's or charter school's compensatory
education funds [allotment] or high school funds [allotment] unless
the commissioner approves the plan submitted under Subsection (a).
The commissioner shall complete an initial review of the district's
or charter school's plan not later than March 1 of the school year
preceding the school year in which the district or charter school
will receive the compensatory education funds [allotment] or high
school funds [allotment] to which the plan applies.
SECTION 2.21. Section 34.002(c), Education Code, is amended
to read as follows:
(c) A school district that fails or refuses to meet the
safety standards for school buses established under this section is
ineligible to share in the transportation allotment under Section
42.202 [42.155] until the first anniversary of the date the
district begins complying with the safety standards.
SECTION 2.22. Section 39.117(f), Education Code, is amended
to read as follows:
(f) In this subsection, "compensatory education funds" has
the meaning assigned by Section 42.152. In addition to any other
available funds, a school district may use compensatory education
funds [provided to the district under Section 42.152] to pay the
costs of the program. Instructional services may be provided to
students identified under Subsection (d)(1) who are under 26 years
of age using compensatory education funds [provided under Section
42.152] or other Foundation School Program funds, notwithstanding
Section 42.003.
SECTION 2.23. The heading to Section 39.234, Education
Code, is amended to read as follows:
Sec. 39.234. USE OF HIGH SCHOOL FUNDS [ALLOTMENT].
SECTION 2.24. Section 39.234, Education Code, is amended by
amending Subsections (a) and (b) and adding Subsection (c) to read
as follows:
(a) In this section, "high school funds" has the meaning
assigned by Section 42.160.
(b) Except as provided by Subsection (c) [(b)], a school
district or campus must use high school funds [allocated under
Section 42.160] to:
(1) implement or administer a college readiness
program that provides academic support and instruction to prepare
underachieving students for entrance into an institution of higher
education;
(2) implement or administer a program that encourages
students to pursue advanced academic opportunities, including
early college high school programs and dual credit, advanced
placement, and international baccalaureate courses;
(3) implement or administer a program that provides
opportunities for students to take academically rigorous course
work, including four years of mathematics and four years of science
at the high school level;
(4) implement or administer a program, including
online course support and professional development, that aligns the
curriculum for grades 6 [six] through 12 with postsecondary
curriculum and expectations; or
(5) implement or administer other high school
completion and success initiatives in grades 6 [six] through 12
approved by the commissioner.
(c) [(b)] A school district may use high school funds
[allocated under Section 42.160] on any instructional program in
grades 6 [six] through 12 other than an athletic program if:
(1) the district's measure of progress toward college
readiness is determined exceptional by a standard set by the
commissioner; and
(2) the district's completion rates for grades 9
[nine] through 12 exceed completion rate standards required by the
commissioner to achieve a status of accredited under Section
39.051.
SECTION 2.25. Section 46.013, Education Code, is amended to
read as follows:
Sec. 46.013. MULTIPLE ALLOTMENTS PROHIBITED. A school
district is not entitled to state assistance under this subchapter
based on taxes with respect to which the district receives state
assistance under [Subchapter F,] Chapter 42.
SECTION 2.26. Section 46.037, Education Code, is amended to
read as follows:
Sec. 46.037. MULTIPLE ALLOTMENTS PROHIBITED. A school
district is not entitled to state assistance under this subchapter
based on taxes with respect to which the district receives state
assistance under [Subchapter F,] Chapter 42.
SECTION 2.27. Section 78.10(g), Education Code, is amended
to read as follows:
(g) For each student enrolled in the academy, the academy is
entitled to funding [allotments] from the foundation school fund
under Chapter 42 as if the academy were a school district without a
[tier one] local revenue level [share] for purposes of Section
42.253. If in any academic year the amount of the allotments under
this subsection exceeds the amount of state funds paid to the
academy in the first fiscal year of the academy's operation, the
commissioner of education shall set aside from the total amount of
funds to which school districts are entitled under Section
42.253(c) an amount equal to the excess amount and shall distribute
that amount to the academy. After deducting the amount set aside and
paid to the academy by the commissioner of education under this
subsection, the commissioner of education shall reduce the amount
to which each district is entitled under Section 42.253(c) in the
manner described by Section 42.253(h). A determination of the
commissioner of education under this subsection is final and may
not be appealed.
SECTION 2.28. Section 79.10(f), Education Code, is amended
to read as follows:
(f) For each student enrolled in the academy, the academy is
entitled to funding [allotments] from the foundation school fund
under Chapter 42 as if the academy were a school district without a
[tier one] local revenue level [share] for purposes of Section
42.253. If in any academic year the amount of the allotments under
this subsection exceeds the amount of state funds paid to the
academy in the first fiscal year of the academy's operation, the
commissioner of education shall set aside from the total amount of
funds to which school districts are entitled under Section
42.253(c) an amount equal to the excess amount and shall distribute
that amount to the academy. After deducting the amount set aside and
paid to the academy by the commissioner of education under this
subsection, the commissioner of education shall reduce the amount
to which each district is entitled under Section 42.253(c) in the
manner described by Section 42.253(h). A determination of the
commissioner of education under this subsection is final and may
not be appealed.
SECTION 2.29. Section 87.505(g), Education Code, is amended
to read as follows:
(g) For each student enrolled in the academy, the academy is
entitled to funding [allotments] from the foundation school fund
under Chapter 42 as if the academy were a school district without a
[tier one] local revenue level [share] for purposes of Section
42.253. If in any academic year the amount of the allotments under
this subsection exceeds the amount of state funds paid to the
academy in the first fiscal year of the academy's operation, the
commissioner of education shall set aside from the total amount of
funds to which school districts are entitled under Section
42.253(c) an amount equal to the excess amount and shall distribute
that amount to the academy. After deducting the amount set aside and
paid to the academy by the commissioner of education under this
subsection, the commissioner of education shall reduce the amount
to which each district is entitled under Section 42.253(c) in the
manner described by Section 42.253(h). A determination of the
commissioner of education under this subsection is final and may
not be appealed.
SECTION 2.30. Section 96.707(k), Education Code, is amended
to read as follows:
(k) For each student enrolled in the academy, the academy is
entitled to funding [allotments] from the Foundation School Program
under Chapter 42 as if the academy were a school district without a
[tier one] local revenue level [share] for purposes of Section
42.253.
SECTION 2.31. Section 105.301(e), Education Code, is
amended to read as follows:
(e) The academy is not subject to the provisions of this
code, or to the rules of the Texas Education Agency, regulating
public schools, except that:
(1) professional employees of the academy are entitled
to the limited liability of an employee under Section 22.0511,
22.0512, or 22.052;
(2) a student's attendance at the academy satisfies
compulsory school attendance requirements; and
(3) for each student enrolled, the academy is entitled
to funding [allotments] from the Foundation School Program
[foundation school program] under Chapter 42 as if the academy were
a school district without a [tier one] local revenue level [share]
for purposes of Section 42.253.
SECTION 2.32. Section 317.005(f), Government Code, is
amended to read as follows:
(f) The governor or board may adopt an order under this
section withholding or transferring any portion of the total amount
appropriated to finance the Foundation School Program [foundation
school program] for a fiscal year. The governor or board may not
adopt such an order if it would result in an allocation of money
between particular programs or statutory allotments under the
Foundation School Program [foundation school program] contrary to
the statutory proration formula provided by Section 42.253(h),
Education Code. The governor or board may transfer an amount to the
total amount appropriated to finance the Foundation School Program
[foundation school program] for a fiscal year and may increase the
guaranteed level, as defined by Section 42.107 [basic allotment].
The governor or board may adjust allocations of amounts between
particular programs or statutory allotments under the Foundation
School Program [foundation school program] only for the purpose of
conforming the allocations to actual pupil enrollments or
attendance.
SECTION 2.33. Section 322.008(b), Government Code, is
amended to read as follows:
(b) The general appropriations bill may include for
purposes of information the funding elements computed by the
Legislative Budget Board under Section 42.007, Education Code,
excluding the values for each school district calculated under
Section 42.007(c)(2), Education Code. [If the funding elements are
included, the funding elements under Section 42.007(c)(3),
Education Code, shall be reported in dollar amounts per pupil.]
SECTION 2.34. Section 437.117(a), Government Code, is
amended to read as follows:
(a) For each student enrolled in the Texas ChalleNGe
Academy, the department is entitled to funding [allotments] from
the Foundation School Program under Chapter 42, Education Code, as
if the academy were a school district without a [tier one] local
revenue level [share] for purposes of Section 42.253, Education
Code.
SECTION 2.35. Section 2175.304(c), Government Code, is
amended to read as follows:
(c) The procedures established under Subsection (b) must
give preference to transferring the property directly to a public
school or school district or to an assistance organization
designated by the school district before disposing of the property
in another manner. If more than one public school or school
district or assistance organization seeks to acquire the same
property on substantially the same terms, the system, institution,
or agency shall give preference to a public school that is
considered low-performing by the commissioner of education or to a
school district that has a taxable wealth per student that does not
exceed the wealth per student permitted under Chapter 41 [entitles
the district to an allotment of state funds under Subchapter F,
Chapter 42], Education Code, or to the assistance organization
designated by such a school district.
SECTION 2.36. Section 1579.251(a), Insurance Code, is
amended to read as follows:
(a) The state shall assist employees of participating
school districts and charter schools in the purchase of group
health coverage under this chapter by providing for each covered
employee the amount of $900 each state fiscal year or a greater
amount as provided by the General Appropriations Act. The state
contribution shall be distributed through the school finance
formulas under Chapters 41 and 42, Education Code, and used by
school districts and charter schools only to pay contributions
under a group health coverage plan for district or school employees
[as provided by Section 42.260, Education Code].
SECTION 2.37. Section 311.013(n), Tax Code, is amended to
read as follows:
(n) This subsection applies only to a school district whose
taxable value computed under Section 403.302(d), Government Code,
is reduced in accordance with Subdivision (4) of that subsection.
In addition to the amount otherwise required to be paid into the tax
increment fund, the district shall pay into the fund an amount equal
to the amount by which the amount of taxes the district would have
been required to pay into the fund in the current year if the
district levied taxes at the rate the district levied in 2005
exceeds the amount the district is otherwise required to pay into
the fund in the year of the reduction. This additional amount may
not exceed the amount the [school] district receives in state aid
for the current tax year under Section 42.207 [42.2514], Education
Code. The [school] district shall pay the additional amount after
the district receives the state aid to which the district is
entitled for the current tax year under Section 42.207 [42.2514],
Education Code.
ARTICLE 3. REPEALERS
SECTION 3.01. The following provisions of the Education
Code are repealed:
(1) Section 12.106(a-2);
(2) Section 29.014(d);
(3) Section 29.203(c);
(4) Sections 41.002(e), (f), and (g);
(5) Section 41.093(b-1);
(6) Section 41.159(b);
(7) Section 42.104;
(8) Section 42.157;
(9) Section 42.2517;
(10) Section 42.2518;
(11) Sections 42.252(a), (a-1), and (d);
(12) Section 42.260;
(13) Section 42.262;
(14) Subchapter F, Chapter 42; and
(15) Section 42.4101.
SECTION 3.02. Section 1581.053(b), Insurance Code, is
repealed.
ARTICLE 4. EFFECTIVE DATE
SECTION 4.01. This Act takes effect September 1, 2017.