Texas 2017 - 85th 1st C.S.

Texas House Bill HB21 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	H.B. No. 21
	1	+	By: Huberty, et al. H.B. No. 21
	2	+	(Senate Sponsor - Taylor of Galveston)
	3	+	(In the Senate - Received from the House August 8, 2017;
	4	+	August 8, 2017, read first time and referred to Committee on
	5	+	Education; August 11, 2017, reported adversely, with favorable
	6	+	Committee Substitute by the following vote: Yeas 9, Nays 1;
	7	+	August 11, 2017, sent to printer.)
	8	+	Click here to see the committee vote
	9	+	COMMITTEE SUBSTITUTE FOR H.B. No. 21 By: Taylor of Galveston
2	10
3	11
	12	+	A BILL TO BE ENTITLED
4	13		AN ACT
5		-	relating to public school finance, including funding for the
6		-	recruitment and retention of teachers and the support of
7		-	participants in the public school employees group insurance
8		-	program.
	14	+	relating to the public school finance system.
9	15		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	16		SECTION 1. Effective September 1, 2018, Section 12.106,
11	17		Education Code, is amended by amending Subsection (a-1) and adding
12		-	Subsections (d)~~, (e), (f),~~ and (g) to read as follows:
	18	+	Subsections (d) and (e) to read as follows:
13	19		(a-1) In determining funding for an open-enrollment charter
14	20		school under Subsection (a):
15	21		(1) [,] adjustments under Sections 42.102, [42.103,]
16	22		42.104, and 42.105 are based on the average adjustment for the
17	23		state; and
18	24		(2) the adjustment under Section 42.103 is based on
19	25		the average adjustment for the state that would have been provided
20	26		under that section as it existed on January 1, 2018.
21	27		(d) Subject to Subsection (e), in addition to other amounts
22	28		provided by this section, a charter holder is entitled to receive,
23	29		for the open-enrollment charter school, funding per student in
24	30		average daily attendance in an amount equal to the guaranteed level
25	31		of state and local funds per student per cent of tax effort under
26	32		Section 46.032(a) multiplied by the lesser of:
27	33		(1) the state average interest and sinking fund tax
28	34		rate imposed by school districts for the current year; or
29	35		(2) a rate that would result in a total amount to which
30	36		charter schools are entitled under this subsection for the current
31	37		year equal to $60 million.
32	38		(e) A charter holder is entitled to receive funding under
33	39		Subsection (d) only if the most recent overall performance rating
34	40		assigned to the open-enrollment charter school under Subchapter C,
35		-	Chapter 39, reflects at least acceptable performance. This
36		-	subsection does not apply to a charter holder that operates a school
37		-	program located at a day treatment facility, residential treatment
38		-	facility, psychiatric hospital, or medical hospital.
39		-	(f) Funds received by a charter holder under Subsection (d)
40		-	may only be used:
41		-	(1) to lease an instructional facility;
42		-	(2) to pay property taxes imposed on an instructional
43		-	facility;
44		-	(3) to pay debt service on bonds issued to finance an
45		-	instructional facility; or
46		-	(4) for any other purpose related to the purchase,
47		-	lease, sale, acquisition, or maintenance of an instructional
48		-	facility.
49		-	(g) In this section, "instructional facility" has the
50		-	meaning assigned by Section 46.001.
51		-	SECTION 2. Section 13.054(g), Education Code, as amended by
52		-	Chapter 425 (S.B. 1353), Acts of the 85th Legislature, Regular
53		-	Session, 2017, is amended to read as follows:
54		-	(g) In order to assist with the costs of facility
55		-	renovation, repair, and replacement, a district to which territory
56		-	is annexed under this section is entitled to additional state aid
57		-	for five years, beginning with the school year in which the
58		-	annexation occurs. The commissioner shall determine the amount of
59		-	additional state aid provided each year by dividing the amount of
60		-	debt service taxes received by the district during the tax year
61		-	preceding the tax year in which the annexation occurs by the number
62		-	of students enrolled in the district immediately preceding the date
63		-	of annexation, and multiplying that result by the number of
64		-	additional students enrolled in the district on September 1 after
65		-	the date of annexation. The commissioner shall provide additional
66		-	state aid under this subsection from funds appropriated for
67		-	purposes of the Foundation School Program [and available for that
68		-	purpose]. A determination by the commissioner under this
69		-	subsection is final and may not be appealed.
70		-	SECTION 3. Subchapter A, Chapter 29, Education Code, is
71		-	amended by adding Sections 29.026 and 29.027 to read as follows:
72		-	Sec. 29.026. GRANT PROGRAM PROVIDING SERVICES TO STUDENTS
73		-	WITH AUTISM. (a) The commissioner shall establish a program to
74		-	award grants to school districts and open-enrollment charter
75		-	schools that provide innovative services to students with autism.
76		-	(b) A school district, including a school district acting
77		-	through a district charter issued under Subchapter C, Chapter 12,
78		-	and an open-enrollment charter school, including a charter school
79		-	that primarily serves students with disabilities, as provided under
80		-	Section 12.1014, may apply for a grant under this section.
81		-	(c) A program is eligible for a grant under this section if:
82		-	(1) the program operates as an independent campus or a
83		-	separate program from the campus in which the program is located,
84		-	with a separate budget;
85		-	(2) the program incorporates:
86		-	(A) evidence-based and research-based design;
87		-	(B) the use of empirical data on student
88		-	achievement and improvement;
89		-	(C) parental support and collaboration;
90		-	(D) the use of technology;
91		-	(E) meaningful inclusion; and
92		-	(F) the ability to replicate the program for
93		-	students statewide;
94		-	(3) the program gives priority for enrollment to
95		-	students with autism;
96		-	(4) the program limits enrollment and services to
97		-	students who are:
98		-	(A) at least three years of age; and
99		-	(B) younger than nine years of age or are
100		-	enrolled in the third grade or a lower grade level; and
101		-	(5) the program allows a student who turns nine years
102		-	of age or older during a school year to remain in the program until
103		-	the end of that school year.
104		-	(d) A school district or open-enrollment charter school may
105		-	not:
106		-	(1) charge a fee for the program, other than those
107		-	authorized by law for students in public schools;
108		-	(2) require a parent to enroll a child in the program;
109		-	(3) allow an admission, review, and dismissal
110		-	committee to place a student in the program without the written
111		-	consent of the student's parent or guardian; or
112		-	(4) continue the placement of a student in the program
113		-	after the student's parent or guardian revokes consent, in writing,
114		-	to the student's placement in the program.
115		-	(e) A program under this section may:
116		-	(1) alter the length of the school day or school year
117		-	or the number of minutes of instruction received by students;
118		-	(2) coordinate services with private or
119		-	community-based providers;
120		-	(3) allow the enrollment of students without
121		-	disabilities or with other disabilities, if approved by the
122		-	commissioner; and
123		-	(4) adopt staff qualifications and staff to student
124		-	ratios that differ from the applicable requirements of this title.
125		-	(f) The commissioner shall adopt rules creating an
126		-	application and selection process for grants awarded under this
127		-	section.
128		-	(g) The commissioner shall create an external panel of
129		-	stakeholders, including parents of students with disabilities, to
130		-	provide assistance in the selection of applications for the award
131		-	of grants under this section.
132		-	(h) The commissioner shall award grants to fund not more
133		-	than 10 programs that meet the eligibility criteria under
134		-	Subsection (c). In selecting programs, the commissioner shall
135		-	prioritize programs that are collaborations between multiple
136		-	school districts, multiple charter schools, or school districts and
137		-	charter schools. The selected programs must reflect the diversity
138		-	of this state.
139		-	(i) The commissioner shall select programs and award grant
140		-	funds to those programs beginning in the 2018-2019 school year. The
141		-	selected programs are to be funded for two years.
142		-	(j) A grant awarded to a school district or open-enrollment
143		-	charter school under this section is in addition to the Foundation
144		-	School Program funds that the district or charter school is
145		-	otherwise entitled to receive. A grant awarded under this section
146		-	may not come out of Foundation School Program funds.
147		-	(k) The commissioner shall set aside an amount not to exceed
148		-	$20 million from the total amount of funds appropriated for the
149		-	2018-2019 fiscal biennium to fund grants under this section. The
150		-	commissioner shall use $10 million for the purposes of this section
151		-	for each school year in the state fiscal biennium. A grant
152		-	recipient may not receive more than $1 million for the 2018-2019
153		-	fiscal biennium. The commissioner shall reduce each district's and
154		-	charter school's allotment proportionally to account for funds
155		-	allocated under this section.
156		-	(l) The commissioner and any program selected under this
157		-	section may accept gifts, grants, and donations from any public or
158		-	private source, person, or group to implement and administer the
159		-	program. The commissioner and any program selected under this
160		-	section may not require any financial contribution from parents to
161		-	implement and administer the program.
162		-	(m) The commissioner may consider a student with autism who
163		-	is enrolled in a program funded under this section as funded in a
164		-	mainstream placement, regardless of the amount of time the student
165		-	receives services in a regular classroom setting.
166		-	(n) Not later than December 31, 2020, the commissioner shall
167		-	publish a report on the grant program established under this
168		-	section. The report must include:
169		-	(1) recommendations for statutory or funding changes
170		-	necessary to implement successful innovations in the education of
171		-	students with autism; and
172		-	(2) data on the academic and functional achievements
173		-	of students enrolled in a program that received a grant under this
174		-	section.
175		-	(o) This section expires September 1, 2021.
176		-	Sec. 29.027. GRANT PROGRAM PROVIDING SERVICES TO STUDENTS
177		-	WITH DYSLEXIA. (a) The commissioner shall establish a program to
178		-	award grants to school districts and open-enrollment charter
179		-	schools that provide innovative services to students with dyslexia.
180		-	(b) A school district, including a school district acting
181		-	through a district charter issued under Subchapter C, Chapter 12,
182		-	and an open-enrollment charter school, including a charter school
183		-	that primarily serves students with disabilities, as provided under
184		-	Section 12.1014, may apply for a grant under this section.
185		-	(c) A program is eligible for a grant under this section if:
186		-	(1) the program operates as an independent campus or a
187		-	separate program from the campus in which the program is located,
188		-	with a separate budget;
189		-	(2) the program incorporates:
190		-	(A) evidence-based and research-based design;
191		-	(B) the use of empirical data on student
192		-	achievement and improvement;
193		-	(C) parental support and collaboration;
194		-	(D) the use of technology;
195		-	(E) meaningful inclusion; and
196		-	(F) the ability to replicate the program for
197		-	students statewide;
198		-	(3) the program gives priority for enrollment to
199		-	students with dyslexia;
200		-	(4) the program limits enrollment and services to
201		-	students who are:
202		-	(A) at least three years of age; and
203		-	(B) younger than nine years of age or are
204		-	enrolled in the third grade or a lower grade level; and
205		-	(5) the program allows a student who turns nine years
206		-	of age or older during a school year to remain in the program until
207		-	the end of that school year.
208		-	(d) A school district or open-enrollment charter school may
209		-	not:
210		-	(1) charge a fee for the program, other than those
211		-	authorized by law for students in public schools;
212		-	(2) require a parent to enroll a child in the program;
213		-	(3) allow an admission, review, and dismissal
214		-	committee to place a student in the program without the written
215		-	consent of the student's parent or guardian; or
216		-	(4) continue the placement of a student in the program
217		-	after the student's parent or guardian revokes consent, in writing,
218		-	to the student's placement in the program.
219		-	(e) A program under this section may:
220		-	(1) alter the length of the school day or school year
221		-	or the number of minutes of instruction received by students;
222		-	(2) coordinate services with private or
223		-	community-based providers;
224		-	(3) allow the enrollment of students without
225		-	disabilities or with other disabilities, if approved by the
226		-	commissioner; and
227		-	(4) adopt staff qualifications and staff to student
228		-	ratios that differ from the applicable requirements of this title.
229		-	(f) The commissioner shall adopt rules creating an
230		-	application and selection process for grants awarded under this
231		-	section.
232		-	(g) The commissioner shall create an external panel of
233		-	stakeholders, including parents of students with disabilities, to
234		-	provide assistance in the selection of applications for the award
235		-	of grants under this section.
236		-	(h) The commissioner shall award grants to fund not more
237		-	than 10 programs that meet the eligibility criteria under
238		-	Subsection (c). In selecting programs, the commissioner shall
239		-	prioritize programs that are collaborations between multiple
240		-	school districts, multiple charter schools, or school districts and
241		-	charter schools. The selected programs must reflect the diversity
242		-	of this state.
243		-	(i) The commissioner shall select programs and award grant
244		-	funds to those programs beginning in the 2018-2019 school year. The
245		-	selected programs are to be funded for two years.
246		-	(j) A grant awarded to a school district or open-enrollment
247		-	charter school under this section is in addition to the Foundation
248		-	School Program funds that the district or charter school is
249		-	otherwise entitled to receive. A grant awarded under this section
250		-	may not come out of Foundation School Program funds.
251		-	(k) The commissioner shall set aside an amount not to exceed
252		-	$20 million from the total amount of funds appropriated for the
253		-	2018-2019 fiscal biennium to fund grants under this section. The
254		-	commissioner shall use $10 million for the purposes of this section
255		-	for each school year in the state fiscal biennium. A grant
256		-	recipient may not receive more than $1 million for the 2018-2019
257		-	fiscal biennium. The commissioner shall reduce each district's and
258		-	charter school's allotment proportionally to account for funds
259		-	allocated under this section.
260		-	(l) The commissioner and any program selected under this
261		-	section may accept gifts, grants, and donations from any public or
262		-	private source, person, or group to implement and administer the
263		-	program. The commissioner and any program selected under this
264		-	section may not require any financial contribution from parents to
265		-	implement and administer the program.
266		-	(m) The commissioner may consider a student with dyslexia
267		-	who is enrolled in a program funded under this section as funded in
268		-	a mainstream placement, regardless of the amount of time the
269		-	student receives services in a regular classroom setting.
270		-	(n) Not later than December 31, 2020, the commissioner shall
271		-	publish a report on the grant program established under this
272		-	section. The report must include:
273		-	(1) recommendations for statutory or funding changes
274		-	necessary to implement successful innovations in the education of
275		-	students with dyslexia; and
276		-	(2) data on the academic and functional achievements
277		-	of students enrolled in a program that received a grant under this
278		-	section.
279		-	(o) This section expires September 1, 2021.
280		-	SECTION 4. Effective September 1, 2023, Sections 42.103(b)
	41	+	Chapter 39, reflects at least acceptable performance.
	42	+	SECTION 2. Effective September 1, 2023, Sections 42.103(b)
281	43		and (d), Education Code, are amended to read as follows:
282	44		(b) The basic allotment of a school district that [contains
283	45		at least 300 square miles and] has not more than 1,600 students in
284	46		average daily attendance is adjusted by applying the formula:
285	47		AA = (1 + ((1,600 - ADA) X .0004)) X ABA
286	48		(d) The basic allotment of a school district that offers a
287	49		kindergarten through grade 12 program and has less than 5,000
288	50		students in average daily attendance is adjusted by applying the
289	51		formula, of the following formulas, that results in the greatest
290	52		adjusted allotment:
291	53		(1) the formula in Subsection (b), if [or (c) for
292	54		which] the district is eligible for that formula; or
293	55		(2) AA = (1 + ((5,000 - ADA) X .000025)) X ABA.
294		-	SECTION 5. Effective September 1, 2018, Section 42.103(c),
	56	+	SECTION 3. Effective September 1, 2018, Section 42.103(c),
295	57		Education Code, is amended to read as follows:
296	58		(c) The basic allotment of a school district that contains
297	59		less than 300 square miles and has not more than 1,600 students in
298	60		average daily attendance is adjusted by applying the following
299	61		formulas [formula]:
300	62		(1) for the fiscal year beginning September 1, 2018:
301	63		AA = (1 + ((1,600 - ADA) X .000275 [.00025])) X ABA
302	64		;
303	65		(2) for the fiscal year beginning September 1, 2019:
304	66		AA = (1 + ((1,600 - ADA) X .00030)) X ABA
305	67		;
306	68		(3) for the fiscal year beginning September 1, 2020:
307	69		AA = (1 + ((1,600 - ADA) X .000325)) X ABA
308	70		;
309	71		(4) for the fiscal year beginning September 1, 2021:
310	72		AA = (1 + ((1,600 - ADA) X .00035)) X ABA
311	73		; and
312	74		(5) for the fiscal year beginning September 1, 2022:
313	75		AA = (1 + ((1,600 - ADA) X .000375)) X ABA
314		-	SECTION 6. Chapter 42, Education Code, is amended by adding
	76	+	SECTION 4. Chapter 42, Education Code, is amended by adding
315	77		Subchapter H to read as follows:
316	78		SUBCHAPTER H. FINANCIAL HARDSHIP TRANSITION PROGRAM
317	79		Sec. 42.451. FINANCIAL HARDSHIP GRANTS. (a) From amounts
318	80		appropriated for this subchapter, the commissioner may administer a
319	81		grant program that provides grants to school districts to defray
320	82		financial hardships resulting from changes made to Chapter 41 and
321	83		this chapter that apply after the 2016-2017 school year.
322	84		(b) The commissioner shall award grants under this
323	85		subchapter to districts as provided by Section 42.452.
324	86		(c) Except as provided by Subsection (d), funding provided
325	87		to a district under this subchapter is in addition to all other
326	88		funding provided under Chapter 41 and this chapter.
327	89		(d) A district is not eligible for funding under this
328	90		subchapter for a school year if the district receives for that
329	91		school year an adjustment of the district's taxable value of
330	92		property under Section 42.2521. A district may decline an
331	93		adjustment under Section 42.2521 to maintain eligibility for
332	94		funding under this subchapter.
333	95		(e) The commissioner may obtain additional information as
334	96		needed from a district or other state or local agency to make
335	97		determinations in awarding grants under this subchapter.
336	98		Sec. 42.452. AWARD OF GRANTS; AMOUNT. (a) The
337	99		commissioner shall award grants to school districts based on the
338	100		following formula:
339	101		HG = (PL-CL) X (TR) X (TAHG/TEHG)
340	102		where:
341	103		"HG" is the amount of a district's hardship grant;
342	104		"PL" is the amount of funding under previous law to which a
343	105		district would be entitled under Chapter 41 and this chapter as
344	106		those chapters existed on January 1, 2017, determined using current
345	107		school year data for the district;
346	108		"CL" is the amount of current law funding under Chapter 41 and
347	109		this chapter to which a district is entitled;
348	110		"TR" is a district's maintenance and operations tax rate, as
349	111		specified by the comptroller's most recent certified report;
350	112		"TAHG" is the total funding available for grants under
351	113		Section 42.456 for a school year; and
352	114		"TEHG" is the sum of the combined amounts for all districts
353	115		calculated by applying the formula (PL-CL) X (TR) for each
354	116		district.
355	117		(b) A school district's hardship grant awarded under this
356	118		subchapter for a school year may not exceed the lesser of:
357	119		(1) the amount equal to 10 percent of the total amount
358	120		of funds available for grants under this subchapter for that school
359	121		year; or
360	122		(2) the amount by which "PL" exceeds "CL" for that
361	123		district for that school year.
362	124		(c) For purposes of calculating the formula under
363	125		Subsection (a), the commissioner shall:
364	126		(1) in determining the values of "PL" and "CL" for a
365	127		school district, exclude the amount of revenue received by the
366	128		district as a result of Section 13.054 or an administrative rule
367	129		related to that section;
368	130		(2) if the value of (PL-CL) for a school district
369	131		results in a negative number, use zero for the value of (PL-CL);
370	132		(3) if a school district's maintenance and operations
371	133		tax rate ("TR") is greater than $1, use $1 for the value of "TR";
372	134		(4) use a maintenance and operations tax rate ("TR")
373	135		of $1 for each open-enrollment charter school, each special-purpose
374	136		school district established under Subchapter H, Chapter 11, and the
375	137		South Texas Independent School District; and
376	138		(5) if (TAHG/TEHG) equals a value greater than one,
377	139		use a value of one for (TAHG/TEHG).
378	140		(d) If funds remain available under this subchapter for a
379	141		school year after determining initial grant amounts under
380	142		Subsection (a), as adjusted to reflect the limits imposed by
381	143		Subsection (b), the commissioner shall reapply the formula as
382	144		necessary to award all available funds.
383	145		(e) If the commissioner reapplies the formula in accordance
384	146		with Subsection (d), a school district that was ineligible under
385	147		Section 42.455 for a grant during the initial application of the
386	148		formula for that school year is eligible to receive a grant as a
387	149		result of the formula reapplication.
388	150		Sec. 42.453. ELIGIBILITY OF OPEN-ENROLLMENT CHARTER
389	151		SCHOOL. An open-enrollment charter school is eligible for a grant
390	152		under this subchapter in the same manner as a school district.
391	153		Sec. 42.454. REGIONAL EDUCATION SERVICE CENTERS AND COUNTY
392	154		DEPARTMENTS OF EDUCATION NOT ELIGIBLE. A regional education
393	155		service center or a county department of education is not eligible
394	156		for a grant under this subchapter.
395	157		Sec. 42.455. CERTAIN SCHOOL DISTRICTS NOT ELIGIBLE. Except
396	158		as provided by Section 42.452(e), a school district is not eligible
397	159		for a grant under this subchapter if for the 2015-2016 school year
398	160		the district's expenditures per student in weighted average daily
399	161		attendance, excluding bond debt service payments, capital outlays,
400	162		and facilities acquisition and construction costs, exceeded an
401	163		amount that is equal to 120 percent of the state average amount for
402	164		that school year of expenditures per student in weighted average
403	165		daily attendance, excluding bond debt service payments, capital
404	166		outlays, and facilities acquisition and construction costs, as
405	167		those amounts are determined by the commissioner.
406	168		Sec. 42.456. FUNDING LIMIT. The amount of grants awarded by
407	169		the commissioner under this subchapter may not exceed $100 million
408	170		for the 2017-2018 school year or $50 million for the 2018-2019
409	171		school year.
410	172		Sec. 42.457. NO ADJUSTMENT BASED ON REVISED DATA. The
411	173		commissioner may not adjust the amount of a school district's grant
412	174		under this subchapter based on revisions to the district's data
413	175		received after a grant has been awarded.
414	176		Sec. 42.458. RULES. The commissioner may adopt rules as
415	177		necessary to administer this subchapter.
416	178		Sec. 42.459. DETERMINATION FINAL. A determination by the
417	179		commissioner under this subchapter is final and may not be
418	180		appealed.
419	181		Sec. 42.460. EXPIRATION. This subchapter expires September
420	182		1, 2019.
421		-	SECTION 7. Chapter 42, Education Code, is amended by adding
422		-	Subchapter L to read as follows:
423		-	SUBCHAPTER L. TEXAS COMMISSION ON PUBLIC SCHOOL FINANCE
424		-	Sec. 42.601. DEFINITION. In this subchapter, "commission"
425		-	means the Texas Commission on Public School Finance.
426		-	Sec. 42.602. TEXAS COMMISSION ON PUBLIC SCHOOL FINANCE.
427		-	(a) The Texas Commission on Public School Finance is established
428		-	to develop and make recommendations for improvements to the current
429		-	public school finance system or for new methods of financing public
430		-	schools.
431		-	(b) The commission is composed of 13 members, consisting of
432		-	the following:
433		-	(1) four members appointed by the governor;
434		-	(2) four members appointed by the lieutenant governor;
435		-	(3) four members appointed by the speaker of the house
436		-	of representatives; and
437		-	(4) a member of the State Board of Education, as
438		-	designated by the chair of that board.
439		-	(c) The members appointed by the governor must have an
440		-	interest in public education and include at least:
441		-	(1) one person who is a current or retired classroom
442		-	teacher with at least 10 years of teaching experience;
443		-	(2) one person who is a member of the business
444		-	community; and
445		-	(3) one person who is a member of the civic community.
446		-	(d) The appointments made by the lieutenant governor and the
447		-	speaker of the house of representatives must each consist of:
448		-	(1) three members of the applicable legislative
449		-	chamber; and
450		-	(2) an administrator in the public school system or an
451		-	elected member of the board of trustees of a school district.
452		-	(e) In making appointments under Subsections (b)(1), (2),
453		-	and (3), the governor, lieutenant governor, and speaker of the
454		-	house of representatives shall coordinate to ensure that the
455		-	membership of the commission reflects, to the extent possible, the
456		-	ethnic and geographic diversity of this state.
457		-	Sec. 42.603. PRESIDING OFFICER. The governor shall
458		-	designate the presiding officer of the commission.
459		-	Sec. 42.604. COMPENSATION AND REIMBURSEMENT. A member of
460		-	the commission is not entitled to compensation for service on the
461		-	commission but is entitled to reimbursement for actual and
462		-	necessary expenses incurred in performing commission duties.
463		-	Sec. 42.605. ADMINISTRATIVE SUPPORT AND FUNDING.
464		-	(a) Staff members of the agency shall provide administrative
465		-	support for the commission.
466		-	(b) Funding for the administrative and operational expenses
467		-	of the commission shall be provided by appropriation to the agency
468		-	for that purpose.
469		-	Sec. 42.606. RECOMMENDATIONS. (a) The commission shall
470		-	develop recommendations under this subchapter to address issues
471		-	related to the public school finance system, including:
472		-	(1) the purpose of the public school finance system
473		-	and the relationship between state and local funding in that
474		-	system;
475		-	(2) the appropriate levels of local maintenance and
476		-	operations and interest and sinking fund tax effort necessary to
477		-	implement a public school finance system that complies with the
478		-	requirements under the Texas Constitution; and
479		-	(3) policy changes to the public school finance system
480		-	necessary to adjust for student demographics and the geographic
481		-	diversity in the state.
482		-	(b) The commission may establish one or more working groups
483		-	composed of not more than five members of the commission to study,
484		-	discuss, and address specific policy issues and recommendations to
485		-	refer to the commission for consideration.
486		-	Sec. 42.607. REPORT. Not later than December 31, 2018, the
487		-	commission shall prepare and deliver a report to the governor and
488		-	the legislature that recommends statutory changes to improve the
489		-	public school finance system, including any adjustments to funding
490		-	to account for student demographics.
491		-	Sec. 42.608. PUBLIC MEETINGS AND PUBLIC INFORMATION.
492		-	(a) The commission may hold public meetings as needed to fulfill
493		-	its duties under this subchapter.
494		-	(b) The commission is subject to Chapters 551 and 552,
495		-	Government Code.
496		-	Sec. 42.609. COMMISSION ABOLISHED; EXPIRATION OF
497		-	SUBCHAPTER. (a) The commission is abolished January 8, 2019.
498		-	(b) This subchapter expires January 8, 2019.
499		-	SECTION 8. Effective September 1, 2018, Section 46.032(a),
	183	+	SECTION 5. Effective September 1, 2018, Section 46.032(a),
500	184		Education Code, is amended to read as follows:
501	185		(a) Each school district is guaranteed a specified amount
502	186		per student in state and local funds for each cent of tax effort to
503	187		pay the principal of and interest on eligible bonds. The amount of
504	188		state support, subject only to the maximum amount under Section
505	189		46.034, is determined by the formula:
506	190		EDA = (EDGL X ADA X EDTR X 100) - (EDTR X (DPV/100))
507	191		where:
508	192		"EDA" is the amount of state funds to be allocated to the
509	193		district for assistance with existing debt;
510	194		"EDGL" is the dollar amount guaranteed level of state and
511	195		local funds per student per cent of tax effort, which is the lesser
512	196		of:
513	197		(1) $40 [$35] or a greater amount for any year provided
514	198		by appropriation; or
515	199		(2) the amount that would result in a total additional
516	200		amount of state funds under this subchapter for the current year
517	201		equal to $60 million in excess of the state funds to which school
518	202		districts would have been entitled under this section if the
519	203		guaranteed level amount were $35;
520	204		"ADA" is the number of students in average daily attendance,
521	205		as determined under Section 42.005, in the district;
522	206		"EDTR" is the existing debt tax rate of the district, which is
523	207		determined by dividing the amount budgeted by the district for
524	208		payment of eligible bonds by the quotient of the district's taxable
525	209		value of property as determined under Subchapter M, Chapter 403,
526	210		Government Code, or, if applicable, under Section 42.2521, divided
527	211		by 100; and
528	212		"DPV" is the district's taxable value of property as
529	213		determined under Subchapter M, Chapter 403, Government Code, or, if
530	214		applicable, under Section 42.2521.
531		-	SECTION 9. (a) The amount of $311,000,000 of the
	215	+	SECTION 6. (a) The amount of $311,000,000 of the
532	216		unencumbered appropriations from the general revenue fund for the
533	217		state fiscal biennium ending August 31, 2019, made by S.B. 1, Acts
534	218		of the 85th Legislature, Regular Session, 2017 (the General
535	219		Appropriations Act), to the Health and Human Services Commission is
536	220		transferred to the Texas Education Agency to be used by the agency
537	221		during that state fiscal biennium as follows:
538	222		(1) $150,000,000 is allocated to fund financial
539	223		hardship grants under Subchapter H, Chapter 42, Education Code, as
540	224		added by this Act;
541	225		(2) $60,000,000 is allocated to fund payments to
542	226		open-enrollment charter schools under Section 12.106(d), Education
543	227		Code, as added by this Act;
544	228		(3) $60,000,000 is allocated for the existing debt
545	229		allotment under Section 46.032, Education Code, as amended by this
546	230		Act; and
547	231		(4) $41,000,000 is allocated for the small-sized
548	232		district adjustment under Section 42.103, Education Code, as
549	233		amended by this Act.
550	234		(b) The Health and Human Services Commission shall identify
551	235		the strategies and objectives out of which the transfer under
552		-	Subsection (a) of this section is to be made. If the commission
553		-	makes the amount of appropriations transferred under Subsection (a)
554		-	of this section available by delaying until the state fiscal
555		-	biennium beginning September 1, 2019, the monthly capitation
556		-	payments otherwise due in August 2019 to managed care organizations
557		-	that contract with the commission to provide health care services
558		-	to Medicaid recipients, the commission shall make the delayed
559		-	payments as soon as possible out of available money appropriated to
560		-	the commission for that state fiscal biennium.
	236	+	Subsection (a) of this section is to be made.
561	237		(c) Notwithstanding the sum-certain appropriations
562	238		specified in Rider 3, Chapter 605 (S.B. 1), Acts of the 85th
563	239		Legislature, Regular Session, 2017 (the General Appropriations
564	240		Act), to the bill pattern of the appropriations to the Texas
565	241		Education Agency, the Legislative Budget Board shall determine the
566	242		sum-certain appropriation to the Foundation School Program for each
567	243		year of the state fiscal biennium beginning September 1, 2017,
568	244		based on the amount specified in that rider, the other provisions of
569	245		the General Appropriations Act, and other law, including the
570	246		provisions of this Act.
571		-	SECTION 10. (a) The amount of $212,000,000 of the
572		-	unencumbered appropriations from the general revenue fund for the
573		-	state fiscal biennium ending August 31, 2019, made by S.B. 1, Acts
574		-	of the 85th Legislature, Regular Session, 2017 (the General
575		-	Appropriations Act), to the Health and Human Services Commission is
576		-	transferred to the Teacher Retirement System of Texas and may be
577		-	used by the retirement system during that state fiscal biennium to
578		-	increase school districts' recruitment and retention of school
579		-	teachers and provide support to participants in the Texas Public
580		-	School Employees Group Insurance Program authorized by Chapter
581		-	1575, Insurance Code. The Health and Human Services Commission
582		-	shall identify the strategies and objectives out of which the
583		-	transfer is to be made.
584		-	(b) The Teacher Retirement System of Texas may use the money
585		-	transferred under Subsection (a) of this section to:
586		-	(1) decrease the premiums and deductibles that would
587		-	otherwise be paid during the 2018 and 2019 plan years by
588		-	participants in the Texas Public School Employees Group Insurance
589		-	Program authorized by Chapter 1575, Insurance Code; and
590		-	(2) reduce costs for an enrolled adult child with a
591		-	mental disability or a physical incapacity during the 2018 and 2019
592		-	plan years.
593		-	(c) The Teacher Retirement System of Texas shall determine
594		-	the most efficient allocation of the money transferred under
595		-	Subsection (a) of this section to achieve the maximum benefit for
596		-	participants in the program.
597		-	SECTION 11.
598		-	Section 5, Chapter 425 (S.B. 1353), Acts of the
599		-	85th Legislature, Regular Session, 2017, is repealed.
600		-	SECTION 12. Effective September 1, 2023, Section 42.103(c),
	247	+	SECTION 7. Effective September 1, 2023, Section 42.103(c),
601	248		Education Code, is repealed.
602		-	SECTION 13. Not later than the 30th day after the effective
603		-	date of the section of this Act adding Subchapter L, Chapter 42,
604		-	Education Code, the appropriate persons shall make the appointments
605		-	and designations required by Section 42.602, Education Code, as
606		-	added by this Act.
607		-	SECTION 14. Except as otherwise provided by this Act:
	249	+	SECTION 8. Except as otherwise provided by this Act:
608	250		(1) this Act takes effect September 1, 2017, if this
609	251		Act receives a vote of two-thirds of all the members elected to each
610	252		house, as provided by Section 39, Article III, Texas Constitution;
611	253		and
612	254		(2) if this Act does not receive the vote necessary for
613	255		effect on that date, this Act takes effect on the 91st day after the
614	256		last day of the legislative session.
615		-	______________________________ ______________________________
616		-	President of the Senate Speaker of the House
617		-	I certify that H.B. No. 21 was passed by the House on August
618		-	7, 2017, by the following vote: Yeas 130, Nays 13, 1 present, not
619		-	voting; and that the House concurred in Senate amendments to H.B.
620		-	No. 21 on August 15, 2017, by the following vote: Yeas 94, Nays 46,
621		-	1 present, not voting.
622		-	______________________________
623		-	Chief Clerk of the House
624		-	I certify that H.B. No. 21 was passed by the Senate, with
625		-	amendments, on August 15, 2017, by the following vote: Yeas 25,
626		-	Nays 6.
627		-	______________________________
628		-	Secretary of the Senate
629		-	APPROVED: __________________
630		-	Date
631		-	__________________
632		-	Governor
	257	+	* * * * *