Texas 2017 85th 1st C.S.

Texas House Bill HB21 Enrolled / Bill

Filed 08/16/2017

                    H.B. No. 21


 AN ACT
 relating to public school finance, including funding for the
 recruitment and retention of teachers and the support of
 participants in the public school employees group insurance
 program.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 SECTION 1.  Effective September 1, 2018, Section 12.106,
 Education Code, is amended by amending Subsection (a-1) and adding
 Subsections (d), (e), (f), and (g) to read as follows:
 (a-1)  In determining funding for an open-enrollment charter
 school under Subsection (a):
 (1)  [,] adjustments under Sections 42.102, [42.103,]
 42.104, and 42.105 are based on the average adjustment for the
 state; and
 (2)  the adjustment under Section 42.103 is based on
 the average adjustment for the state that would have been provided
 under that section as it existed on January 1, 2018.
 (d)  Subject to Subsection (e), in addition to other amounts
 provided by this section, a charter holder is entitled to receive,
 for the open-enrollment charter school, funding per student in
 average daily attendance in an amount equal to the guaranteed level
 of state and local funds per student per cent of tax effort under
 Section 46.032(a) multiplied by the lesser of:
 (1)  the state average interest and sinking fund tax
 rate imposed by school districts for the current year; or
 (2)  a rate that would result in a total amount to which
 charter schools are entitled under this subsection for the current
 year equal to $60 million.
 (e)  A charter holder is entitled to receive funding under
 Subsection (d) only if the most recent overall performance rating
 assigned to the open-enrollment charter school under Subchapter C,
 Chapter 39, reflects at least acceptable performance.  This
 subsection does not apply to a charter holder that operates a school
 program located at a day treatment facility, residential treatment
 facility, psychiatric hospital, or medical hospital.
 (f)  Funds received by a charter holder under Subsection (d)
 may only be used:
 (1)  to lease an instructional facility;
 (2)  to pay property taxes imposed on an instructional
 facility;
 (3)  to pay debt service on bonds issued to finance an
 instructional facility; or
 (4)  for any other purpose related to the purchase,
 lease, sale, acquisition, or maintenance of an instructional
 facility.
 (g)  In this section, "instructional facility" has the
 meaning assigned by Section 46.001.
 SECTION 2.  Section 13.054(g), Education Code, as amended by
 Chapter 425 (S.B. 1353), Acts of the 85th Legislature, Regular
 Session, 2017, is amended to read as follows:
 (g)  In order to assist with the costs of facility
 renovation, repair, and replacement, a district to which territory
 is annexed under this section is entitled to additional state aid
 for five years, beginning with the school year in which the
 annexation occurs. The commissioner shall determine the amount of
 additional state aid provided each year by dividing the amount of
 debt service taxes received by the district during the tax year
 preceding the tax year in which the annexation occurs by the number
 of students enrolled in the district immediately preceding the date
 of annexation, and multiplying that result by the number of
 additional students enrolled in the district on September 1 after
 the date of annexation. The commissioner shall provide additional
 state aid under this subsection from funds appropriated for
 purposes of the Foundation School Program [and available for that
 purpose]. A determination by the commissioner under this
 subsection is final and may not be appealed.
 SECTION 3.  Subchapter A, Chapter 29, Education Code, is
 amended by adding Sections 29.026 and 29.027 to read as follows:
 Sec. 29.026.  GRANT PROGRAM PROVIDING SERVICES TO STUDENTS
 WITH AUTISM. (a) The commissioner shall establish a program to
 award grants to school districts and open-enrollment charter
 schools that provide innovative services to students with autism.
 (b)  A school district, including a school district acting
 through a district charter issued under Subchapter C, Chapter 12,
 and an open-enrollment charter school, including a charter school
 that primarily serves students with disabilities, as provided under
 Section 12.1014, may apply for a grant under this section.
 (c)  A program is eligible for a grant under this section if:
 (1)  the program operates as an independent campus or a
 separate program from the campus in which the program is located,
 with a separate budget;
 (2)  the program incorporates:
 (A)  evidence-based and research-based design;
 (B)  the use of empirical data on student
 achievement and improvement;
 (C)  parental support and collaboration;
 (D)  the use of technology;
 (E)  meaningful inclusion; and
 (F)  the ability to replicate the program for
 students statewide;
 (3)  the program gives priority for enrollment to
 students with autism;
 (4)  the program limits enrollment and services to
 students who are:
 (A)  at least three years of age; and
 (B)  younger than nine years of age or are
 enrolled in the third grade or a lower grade level; and
 (5)  the program allows a student who turns nine years
 of age or older during a school year to remain in the program until
 the end of that school year.
 (d)  A school district or open-enrollment charter school may
 not:
 (1)  charge a fee for the program, other than those
 authorized by law for students in public schools;
 (2)  require a parent to enroll a child in the program;
 (3)  allow an admission, review, and dismissal
 committee to place a student in the program without the written
 consent of the student's parent or guardian; or
 (4)  continue the placement of a student in the program
 after the student's parent or guardian revokes consent, in writing,
 to the student's placement in the program.
 (e)  A program under this section may:
 (1)  alter the length of the school day or school year
 or the number of minutes of instruction received by students;
 (2)  coordinate services with private or
 community-based providers;
 (3)  allow the enrollment of students without
 disabilities or with other disabilities, if approved by the
 commissioner; and
 (4)  adopt staff qualifications and staff to student
 ratios that differ from the applicable requirements of this title.
 (f)  The commissioner shall adopt rules creating an
 application and selection process for grants awarded under this
 section.
 (g)  The commissioner shall create an external panel of
 stakeholders, including parents of students with disabilities, to
 provide assistance in the selection of applications for the award
 of grants under this section.
 (h)  The commissioner shall award grants to fund not more
 than 10 programs that meet the eligibility criteria under
 Subsection (c). In selecting programs, the commissioner shall
 prioritize programs that are collaborations between multiple
 school districts, multiple charter schools, or school districts and
 charter schools. The selected programs must reflect the diversity
 of this state.
 (i)  The commissioner shall select programs and award grant
 funds to those programs beginning in the 2018-2019 school year. The
 selected programs are to be funded for two years.
 (j)  A grant awarded to a school district or open-enrollment
 charter school under this section is in addition to the Foundation
 School Program funds that the district or charter school is
 otherwise entitled to receive.  A grant awarded under this section
 may not come out of Foundation School Program funds.
 (k)  The commissioner shall set aside an amount not to exceed
 $20 million from the total amount of funds appropriated for the
 2018-2019 fiscal biennium to fund grants under this section. The
 commissioner shall use $10 million for the purposes of this section
 for each school year in the state fiscal biennium. A grant
 recipient may not receive more than $1 million for the 2018-2019
 fiscal biennium. The commissioner shall reduce each district's and
 charter school's allotment proportionally to account for funds
 allocated under this section.
 (l)  The commissioner and any program selected under this
 section may accept gifts, grants, and donations from any public or
 private source, person, or group to implement and administer the
 program. The commissioner and any program selected under this
 section may not require any financial contribution from parents to
 implement and administer the program.
 (m)  The commissioner may consider a student with autism who
 is enrolled in a program funded under this section as funded in a
 mainstream placement, regardless of the amount of time the student
 receives services in a regular classroom setting.
 (n)  Not later than December 31, 2020, the commissioner shall
 publish a report on the grant program established under this
 section. The report must include:
 (1)  recommendations for statutory or funding changes
 necessary to implement successful innovations in the education of
 students with autism; and
 (2)  data on the academic and functional achievements
 of students enrolled in a program that received a grant under this
 section.
 (o)  This section expires September 1, 2021.
 Sec. 29.027.  GRANT PROGRAM PROVIDING SERVICES TO STUDENTS
 WITH DYSLEXIA. (a) The commissioner shall establish a program to
 award grants to school districts and open-enrollment charter
 schools that provide innovative services to students with dyslexia.
 (b)  A school district, including a school district acting
 through a district charter issued under Subchapter C, Chapter 12,
 and an open-enrollment charter school, including a charter school
 that primarily serves students with disabilities, as provided under
 Section 12.1014, may apply for a grant under this section.
 (c)  A program is eligible for a grant under this section if:
 (1)  the program operates as an independent campus or a
 separate program from the campus in which the program is located,
 with a separate budget;
 (2)  the program incorporates:
 (A)  evidence-based and research-based design;
 (B)  the use of empirical data on student
 achievement and improvement;
 (C)  parental support and collaboration;
 (D)  the use of technology;
 (E)  meaningful inclusion; and
 (F)  the ability to replicate the program for
 students statewide;
 (3)  the program gives priority for enrollment to
 students with dyslexia;
 (4)  the program limits enrollment and services to
 students who are:
 (A)  at least three years of age; and
 (B)  younger than nine years of age or are
 enrolled in the third grade or a lower grade level; and
 (5)  the program allows a student who turns nine years
 of age or older during a school year to remain in the program until
 the end of that school year.
 (d)  A school district or open-enrollment charter school may
 not:
 (1)  charge a fee for the program, other than those
 authorized by law for students in public schools;
 (2)  require a parent to enroll a child in the program;
 (3)  allow an admission, review, and dismissal
 committee to place a student in the program without the written
 consent of the student's parent or guardian; or
 (4)  continue the placement of a student in the program
 after the student's parent or guardian revokes consent, in writing,
 to the student's placement in the program.
 (e)  A program under this section may:
 (1)  alter the length of the school day or school year
 or the number of minutes of instruction received by students;
 (2)  coordinate services with private or
 community-based providers;
 (3)  allow the enrollment of students without
 disabilities or with other disabilities, if approved by the
 commissioner; and
 (4)  adopt staff qualifications and staff to student
 ratios that differ from the applicable requirements of this title.
 (f)  The commissioner shall adopt rules creating an
 application and selection process for grants awarded under this
 section.
 (g)  The commissioner shall create an external panel of
 stakeholders, including parents of students with disabilities, to
 provide assistance in the selection of applications for the award
 of grants under this section.
 (h)  The commissioner shall award grants to fund not more
 than 10 programs that meet the eligibility criteria under
 Subsection (c). In selecting programs, the commissioner shall
 prioritize programs that are collaborations between multiple
 school districts, multiple charter schools, or school districts and
 charter schools. The selected programs must reflect the diversity
 of this state.
 (i)  The commissioner shall select programs and award grant
 funds to those programs beginning in the 2018-2019 school year. The
 selected programs are to be funded for two years.
 (j)  A grant awarded to a school district or open-enrollment
 charter school under this section is in addition to the Foundation
 School Program funds that the district or charter school is
 otherwise entitled to receive.  A grant awarded under this section
 may not come out of Foundation School Program funds.
 (k)  The commissioner shall set aside an amount not to exceed
 $20 million from the total amount of funds appropriated for the
 2018-2019 fiscal biennium to fund grants under this section. The
 commissioner shall use $10 million for the purposes of this section
 for each school year in the state fiscal biennium. A grant
 recipient may not receive more than $1 million for the 2018-2019
 fiscal biennium. The commissioner shall reduce each district's and
 charter school's allotment proportionally to account for funds
 allocated under this section.
 (l)  The commissioner and any program selected under this
 section may accept gifts, grants, and donations from any public or
 private source, person, or group to implement and administer the
 program. The commissioner and any program selected under this
 section may not require any financial contribution from parents to
 implement and administer the program.
 (m)  The commissioner may consider a student with dyslexia
 who is enrolled in a program funded under this section as funded in
 a mainstream placement, regardless of the amount of time the
 student receives services in a regular classroom setting.
 (n)  Not later than December 31, 2020, the commissioner shall
 publish a report on the grant program established under this
 section. The report must include:
 (1)  recommendations for statutory or funding changes
 necessary to implement successful innovations in the education of
 students with dyslexia; and
 (2)  data on the academic and functional achievements
 of students enrolled in a program that received a grant under this
 section.
 (o)  This section expires September 1, 2021.
 SECTION 4.  Effective September 1, 2023, Sections 42.103(b)
 and (d), Education Code, are amended to read as follows:
 (b)  The 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:
 AA = (1 + ((1,600 - ADA) X .0004)) X ABA
 (d)  The 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
 adjusted allotment:
 (1)  the formula in Subsection (b), if [or (c) for
 which] the district is eligible for that formula; or
 (2)  AA = (1 + ((5,000 - ADA) X .000025)) X ABA.
 SECTION 5.  Effective September 1, 2018, Section 42.103(c),
 Education Code, is amended to read as follows:
 (c)  The 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 following
 formulas [formula]:
 (1)  for the fiscal year beginning September 1, 2018:
 AA = (1 + ((1,600 - ADA) X .000275 [.00025])) X ABA
 ;
 (2)  for the fiscal year beginning September 1, 2019:
 AA = (1 + ((1,600 - ADA) X .00030)) X ABA
 ;
 (3)  for the fiscal year beginning September 1, 2020:
 AA = (1 + ((1,600 - ADA) X .000325)) X ABA
 ;
 (4)  for the fiscal year beginning September 1, 2021:
 AA = (1 + ((1,600 - ADA) X .00035)) X ABA
 ; and
 (5)  for the fiscal year beginning September 1, 2022:
 AA = (1 + ((1,600 - ADA) X .000375)) X ABA
 SECTION 6.  Chapter 42, Education Code, is amended by adding
 Subchapter H to read as follows:
 SUBCHAPTER H. FINANCIAL HARDSHIP TRANSITION PROGRAM
 Sec. 42.451.  FINANCIAL HARDSHIP GRANTS. (a) From amounts
 appropriated for this subchapter, the commissioner may administer a
 grant program that provides grants to school districts to defray
 financial hardships resulting from changes made to Chapter 41 and
 this chapter that apply after the 2016-2017 school year.
 (b)  The commissioner shall award grants under this
 subchapter to districts as provided by Section 42.452.
 (c)  Except as provided by Subsection (d), funding provided
 to a district under this subchapter is in addition to all other
 funding provided under Chapter 41 and this chapter.
 (d)  A district is not eligible for funding under this
 subchapter for a school year if the district receives for that
 school year an adjustment of the district's taxable value of
 property under Section 42.2521. A district may decline an
 adjustment under Section 42.2521 to maintain eligibility for
 funding under this subchapter.
 (e)  The commissioner may obtain additional information as
 needed from a district or other state or local agency to make
 determinations in awarding grants under this subchapter.
 Sec. 42.452.  AWARD OF GRANTS; AMOUNT. (a)  The
 commissioner shall award grants to school districts based on the
 following formula:
 HG = (PL-CL) X (TR) X (TAHG/TEHG)
 where:
 "HG" is the amount of a district's hardship grant;
 "PL" is the amount of funding under previous law to which a
 district would be entitled under Chapter 41 and this chapter as
 those chapters existed on January 1, 2017, determined using current
 school year data for the district;
 "CL" is the amount of current law funding under Chapter 41 and
 this chapter to which a district is entitled;
 "TR" is a district's maintenance and operations tax rate, as
 specified by the comptroller's most recent certified report;
 "TAHG" is the total funding available for grants under
 Section 42.456 for a school year; and
 "TEHG" is the sum of the combined amounts for all districts
 calculated by applying the formula (PL-CL) X (TR) for each
 district.
 (b)  A school district's hardship grant awarded under this
 subchapter for a school year may not exceed the lesser of:
 (1)  the amount equal to 10 percent of the total amount
 of funds available for grants under this subchapter for that school
 year; or
 (2)  the amount by which "PL" exceeds "CL" for that
 district for that school year.
 (c)  For purposes of calculating the formula under
 Subsection (a), the commissioner shall:
 (1)  in determining the values of "PL" and "CL" for a
 school district, exclude the amount of revenue received by the
 district as a result of Section 13.054 or an administrative rule
 related to that section;
 (2)  if the value of (PL-CL) for a school district
 results in a negative number, use zero for the value of (PL-CL);
 (3)  if a school district's maintenance and operations
 tax rate ("TR") is greater than $1, use $1 for the value of "TR";
 (4)  use a maintenance and operations tax rate ("TR")
 of $1 for each open-enrollment charter school, each special-purpose
 school district established under Subchapter H, Chapter 11, and the
 South Texas Independent School District; and
 (5)  if (TAHG/TEHG) equals a value greater than one,
 use a value of one for (TAHG/TEHG).
 (d)  If funds remain available under this subchapter for a
 school year after determining initial grant amounts under
 Subsection (a), as adjusted to reflect the limits imposed by
 Subsection (b), the commissioner shall reapply the formula as
 necessary to award all available funds.
 (e)  If the commissioner reapplies the formula in accordance
 with Subsection (d), a school district that was ineligible under
 Section 42.455 for a grant during the initial application of the
 formula for that school year is eligible to receive a grant as a
 result of the formula reapplication.
 Sec. 42.453.  ELIGIBILITY OF OPEN-ENROLLMENT CHARTER
 SCHOOL.  An open-enrollment charter school is eligible for a grant
 under this subchapter in the same manner as a school district.
 Sec. 42.454.  REGIONAL EDUCATION SERVICE CENTERS AND COUNTY
 DEPARTMENTS OF EDUCATION NOT ELIGIBLE. A regional education
 service center or a county department of education is not eligible
 for a grant under this subchapter.
 Sec. 42.455.  CERTAIN SCHOOL DISTRICTS NOT ELIGIBLE. Except
 as provided by Section 42.452(e), a school district is not eligible
 for a grant under this subchapter if for the 2015-2016 school year
 the district's expenditures per student in weighted average daily
 attendance, excluding bond debt service payments, capital outlays,
 and facilities acquisition and construction costs, exceeded an
 amount that is equal to 120 percent of the state average amount for
 that school year of expenditures per student in weighted average
 daily attendance, excluding bond debt service payments, capital
 outlays, and facilities acquisition and construction costs, as
 those amounts are determined by the commissioner.
 Sec. 42.456.  FUNDING LIMIT. The amount of grants awarded by
 the commissioner under this subchapter may not exceed $100 million
 for the 2017-2018 school year or $50 million for the 2018-2019
 school year.
 Sec. 42.457.  NO ADJUSTMENT BASED ON REVISED DATA. The
 commissioner may not adjust the amount of a school district's grant
 under this subchapter based on revisions to the district's data
 received after a grant has been awarded.
 Sec. 42.458.  RULES. The commissioner may adopt rules as
 necessary to administer this subchapter.
 Sec. 42.459.  DETERMINATION FINAL. A determination by the
 commissioner under this subchapter is final and may not be
 appealed.
 Sec. 42.460.  EXPIRATION. This subchapter expires September
 1, 2019.
 SECTION 7.  Chapter 42, Education Code, is amended by adding
 Subchapter L to read as follows:
 SUBCHAPTER L. TEXAS COMMISSION ON PUBLIC SCHOOL FINANCE
 Sec. 42.601.  DEFINITION. In this subchapter, "commission"
 means the Texas Commission on Public School Finance.
 Sec. 42.602.  TEXAS COMMISSION ON PUBLIC SCHOOL FINANCE.
 (a) The Texas Commission on Public School Finance is established
 to develop and make recommendations for improvements to the current
 public school finance system or for new methods of financing public
 schools.
 (b)  The commission is composed of 13 members, consisting of
 the following:
 (1)  four members appointed by the governor;
 (2)  four members appointed by the lieutenant governor;
 (3)  four members appointed by the speaker of the house
 of representatives; and
 (4)  a member of the State Board of Education, as
 designated by the chair of that board.
 (c)  The members appointed by the governor must have an
 interest in public education and include at least:
 (1)  one person who is a current or retired classroom
 teacher with at least 10 years of teaching experience;
 (2)  one person who is a member of the business
 community; and
 (3)  one person who is a member of the civic community.
 (d)  The appointments made by the lieutenant governor and the
 speaker of the house of representatives must each consist of:
 (1)  three members of the applicable legislative
 chamber; and
 (2)  an administrator in the public school system or an
 elected member of the board of trustees of a school district.
 (e)  In making appointments under Subsections (b)(1), (2),
 and (3), the governor, lieutenant governor, and speaker of the
 house of representatives shall coordinate to ensure that the
 membership of the commission reflects, to the extent possible, the
 ethnic and geographic diversity of this state.
 Sec. 42.603.  PRESIDING OFFICER. The governor shall
 designate the presiding officer of the commission.
 Sec. 42.604.  COMPENSATION AND REIMBURSEMENT. A member of
 the commission is not entitled to compensation for service on the
 commission but is entitled to reimbursement for actual and
 necessary expenses incurred in performing commission duties.
 Sec. 42.605.  ADMINISTRATIVE SUPPORT AND FUNDING.
 (a)  Staff members of the agency shall provide administrative
 support for the commission.
 (b)  Funding for the administrative and operational expenses
 of the commission shall be provided by appropriation to the agency
 for that purpose.
 Sec. 42.606.  RECOMMENDATIONS. (a) The commission shall
 develop recommendations under this subchapter to address issues
 related to the public school finance system, including:
 (1)  the purpose of the public school finance system
 and the relationship between state and local funding in that
 system;
 (2)  the appropriate levels of local maintenance and
 operations and interest and sinking fund tax effort necessary to
 implement a public school finance system that complies with the
 requirements under the Texas Constitution; and
 (3)  policy changes to the public school finance system
 necessary to adjust for student demographics and the geographic
 diversity in the state.
 (b)  The commission may establish one or more working groups
 composed of not more than five members of the commission to study,
 discuss, and address specific policy issues and recommendations to
 refer to the commission for consideration.
 Sec. 42.607.  REPORT. Not later than December 31, 2018, the
 commission shall prepare and deliver a report to the governor and
 the legislature that recommends statutory changes to improve the
 public school finance system, including any adjustments to funding
 to account for student demographics.
 Sec. 42.608.  PUBLIC MEETINGS AND PUBLIC INFORMATION.
 (a)  The commission may hold public meetings as needed to fulfill
 its duties under this subchapter.
 (b)  The commission is subject to Chapters 551 and 552,
 Government Code.
 Sec. 42.609.  COMMISSION ABOLISHED; EXPIRATION OF
 SUBCHAPTER. (a) The commission is abolished January 8, 2019.
 (b)  This subchapter expires January 8, 2019.
 SECTION 8.  Effective September 1, 2018, Section 46.032(a),
 Education Code, is amended to read as follows:
 (a)  Each school district is guaranteed a specified amount
 per student in state and local funds for each cent of tax effort to
 pay the principal of and interest on eligible bonds. The amount of
 state support, subject only to the maximum amount under Section
 46.034, is determined by the formula:
 EDA = (EDGL X ADA X EDTR X 100) - (EDTR X (DPV/100))
 where:
 "EDA" is the amount of state funds to be allocated to the
 district for assistance with existing debt;
 "EDGL" is the dollar amount guaranteed level of state and
 local funds per student per cent of tax effort, which is the lesser
 of:
 (1)  $40 [$35] or a greater amount for any year provided
 by appropriation; or
 (2)  the amount that would result in a total additional
 amount of state funds under this subchapter for the current year
 equal to $60 million in excess of the state funds to which school
 districts would have been entitled under this section if the
 guaranteed level amount were $35;
 "ADA" is the number of students in average daily attendance,
 as determined under Section 42.005, in the district;
 "EDTR" is the existing debt tax rate of the district, which is
 determined by dividing the amount budgeted by the district for
 payment of eligible bonds by the quotient of the district's taxable
 value of property as determined under Subchapter M, Chapter 403,
 Government Code, or, if applicable, under Section 42.2521, divided
 by 100; and
 "DPV" is the district's taxable value of property as
 determined under Subchapter M, Chapter 403, Government Code, or, if
 applicable, under Section 42.2521.
 SECTION 9.  (a) The amount of $311,000,000 of the
 unencumbered appropriations from the general revenue fund for the
 state fiscal biennium ending August 31, 2019, made by S.B. 1, Acts
 of the 85th Legislature, Regular Session, 2017 (the General
 Appropriations Act), to the Health and Human Services Commission is
 transferred to the Texas Education Agency to be used by the agency
 during that state fiscal biennium as follows:
 (1)  $150,000,000 is allocated to fund financial
 hardship grants under Subchapter H, Chapter 42, Education Code, as
 added by this Act;
 (2)  $60,000,000 is allocated to fund payments to
 open-enrollment charter schools under Section 12.106(d), Education
 Code, as added by this Act;
 (3)  $60,000,000 is allocated for the existing debt
 allotment under Section 46.032, Education Code, as amended by this
 Act; and
 (4)  $41,000,000 is allocated for the small-sized
 district adjustment under Section 42.103, Education Code, as
 amended by this Act.
 (b)  The Health and Human Services Commission shall identify
 the strategies and objectives out of which the transfer under
 Subsection (a) of this section is to be made.  If the commission
 makes the amount of appropriations transferred under Subsection (a)
 of this section available by delaying until the state fiscal
 biennium beginning September 1, 2019, the monthly capitation
 payments otherwise due in August 2019 to managed care organizations
 that contract with the commission to provide health care services
 to Medicaid recipients, the commission shall make the delayed
 payments as soon as possible out of available money appropriated to
 the commission for that state fiscal biennium.
 (c)  Notwithstanding the sum-certain appropriations
 specified in Rider 3, Chapter 605 (S.B. 1), Acts of the 85th
 Legislature, Regular Session, 2017 (the General Appropriations
 Act), to the bill pattern of the appropriations to the Texas
 Education Agency, the Legislative Budget Board shall determine the
 sum-certain appropriation to the Foundation School Program for each
 year of the state fiscal biennium beginning September 1, 2017,
 based on the amount specified in that rider, the other provisions of
 the General Appropriations Act, and other law, including the
 provisions of this Act.
 SECTION 10.  (a) The amount of $212,000,000 of the
 unencumbered appropriations from the general revenue fund for the
 state fiscal biennium ending August 31, 2019, made by S.B. 1, Acts
 of the 85th Legislature, Regular Session, 2017 (the General
 Appropriations Act), to the Health and Human Services Commission is
 transferred to the Teacher Retirement System of Texas and may be
 used by the retirement system during that state fiscal biennium to
 increase school districts' recruitment and retention of school
 teachers and provide support to participants in the Texas Public
 School Employees Group Insurance Program authorized by Chapter
 1575, Insurance Code. The Health and Human Services Commission
 shall identify the strategies and objectives out of which the
 transfer is to be made.
 (b)  The Teacher Retirement System of Texas may use the money
 transferred under Subsection (a) of this section to:
 (1)  decrease the premiums and deductibles that would
 otherwise be paid during the 2018 and 2019 plan years by
 participants in the Texas Public School Employees Group Insurance
 Program authorized by Chapter 1575, Insurance Code; and
 (2)  reduce costs for an enrolled adult child with a
 mental disability or a physical incapacity during the 2018 and 2019
 plan years.
 (c)  The Teacher Retirement System of Texas shall determine
 the most efficient allocation of the money transferred under
 Subsection (a) of this section to achieve the maximum benefit for
 participants in the program.
 SECTION 11.
 Section 5, Chapter 425 (S.B. 1353), Acts of the
 85th Legislature, Regular Session, 2017, is repealed.
 SECTION 12.  Effective September 1, 2023, Section 42.103(c),
 Education Code, is repealed.
 SECTION 13.  Not later than the 30th day after the effective
 date of the section of this Act adding Subchapter L, Chapter 42,
 Education Code, the appropriate persons shall make the appointments
 and designations required by Section 42.602, Education Code, as
 added by this Act.
 SECTION 14.  Except as otherwise provided by this Act:
 (1)  this Act takes effect September 1, 2017, if this
 Act receives a vote of two-thirds of all the members elected to each
 house, as provided by Section 39, Article III, Texas Constitution;
 and
 (2)  if this Act does not receive the vote necessary for
 effect on that date, this Act takes effect on the 91st day after the
 last day of the legislative session.
 ______________________________ ______________________________
 President of the Senate Speaker of the House
 I certify that H.B. No. 21 was passed by the House on August
 7, 2017, by the following vote:  Yeas 130, Nays 13, 1 present, not
 voting; and that the House concurred in Senate amendments to H.B.
 No. 21 on August 15, 2017, by the following vote:  Yeas 94, Nays 46,
 1 present, not voting.
 ______________________________
 Chief Clerk of the House
 I certify that H.B. No. 21 was passed by the Senate, with
 amendments, on August 15, 2017, by the following vote:  Yeas 25,
 Nays 6.
 ______________________________
 Secretary of the Senate
 APPROVED: __________________
 Date
 __________________
 Governor