Texas 2019 - 86th Regular

Texas House Bill HB2935 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	86R7364 KJE-F
2	2	By: Hinojosa H.B. No. 2935
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the public school finance system.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	ARTICLE 1. PUBLIC SCHOOL FINANCE
10	10	SECTION 1.01. Section 41.001(3), Education Code, is amended
11	11	to read as follows:
12	12	(3) "Weighted average daily attendance" has the
13	13	meaning assigned by Section 42.0053 [42.302].
14	14	SECTION 1.02. Section 41.002(a), Education Code, is amended
15	15	to read as follows:
16	16	(a) A school district may not have a wealth per student that
17	17	exceeds the product of the guaranteed level, as defined by Section
18	18	42.107, multiplied by 10,000[:
19	19	[(1) the wealth per student that generates the amount
20	20	of maintenance and operations tax revenue per weighted student
21	21	available to a district with maintenance and operations tax revenue
22	22	per cent of tax effort equal to the maximum amount provided per cent
23	23	under Section 42.101(a) or (b), for the district's maintenance and
24	24	operations tax effort equal to or less than the rate equal to the
25	25	sum of the product of the state compression percentage, as
26	26	determined under Section 42.2516, multiplied by the maintenance and
27	27	operations tax rate adopted by the district for the 2005 tax year
28	28	and any additional tax effort included in calculating the
29	29	district's compressed tax rate under Section 42.101(a-1);
30	30	[(2) the wealth per student that generates the amount
31	31	of maintenance and operations tax revenue per weighted student
32	32	available to the Austin Independent School District, as determined
33	33	by the commissioner in cooperation with the Legislative Budget
34	34	Board, for the first six cents by which the district's maintenance
35	35	and operations tax rate exceeds the rate equal to the sum of the
36	36	product of the state compression percentage, as determined under
37	37	Section 42.2516, multiplied by the maintenance and operations tax
38	38	rate adopted by the district for the 2005 tax year and any
39	39	additional tax effort included in calculating the district's
40	40	compressed tax rate under Section 42.101(a-1), subject to Section
41	41	41.093(b-1); or
42	42	[(3) $319,500, for the district's maintenance and
43	43	operations tax effort that exceeds the amount of tax effort
44	44	described by Subdivision (2)].
45	45	SECTION 1.03. Section 41.006(a), Education Code, is amended
46	46	to read as follows:
47	47	(a) The commissioner may adopt rules necessary for the
48	48	implementation of this chapter. The rules may provide for the
49	49	commissioner to make necessary adjustments to the provisions of
50	50	Chapter 42[, including providing for the commissioner to make an
51	51	adjustment in the funding element established by Section 42.302, at
52	52	the earliest date practicable, to the amount the commissioner
53	53	believes, taking into consideration options exercised by school
54	54	districts under this chapter and estimates of student enrollments,
55	55	will match appropriation levels].
56	56	SECTION 1.04. Section 41.061, Education Code, is amended to
57	57	read as follows:
58	58	Sec. 41.061. AGREEMENT. (a) By agreement of the governing
59	59	boards of two school districts, territory may be detached from one
60	60	of the districts and annexed to the other district if, after the
61	61	action,[:
62	62	[(1)] the wealth per student of the district from
63	63	which territory is detached and the wealth per student of the
64	64	district to which territory is annexed are [is] equal to or less
65	65	than the equalized wealth level[; and
66	66	[(2) the wealth per student of the district to which
67	67	territory is annexed is not greater than the greatest level for
68	68	which funds are provided under Subchapter F, Chapter 42].
69	69	(b) The agreement is not effective unless the commissioner
70	70	certifies that, after all actions taken under this chapter, the
71	71	wealth per student of each district involved will be equal to or
72	72	less than the equalized wealth level [applicable level permitted by
73	73	Subsection (a)].
74	74	SECTION 1.05. Section 41.093(a), Education Code, is amended
75	75	to read as follows:
76	76	(a) The [Subject to Subsection (b-1), the] cost of each
77	77	credit is an amount equal to the greater of:
78	78	(1) the amount of the district's maintenance and
79	79	operations tax revenue per student in weighted average daily
80	80	attendance for the school year for which the contract is executed;
81	81	or
82	82	(2) the amount of the statewide district average of
83	83	maintenance and operations tax revenue per student in weighted
84	84	average daily attendance for the school year preceding the school
85	85	year for which the contract is executed.
86	86	SECTION 1.06. Section 41.099(a), Education Code, is amended
87	87	to read as follows:
88	88	(a) Sections [41.002(e),] 41.094, 41.097, and 41.098 apply
89	89	only to a district that:
90	90	(1) executes an agreement to purchase all attendance
91	91	credits necessary to reduce the district's wealth per student to
92	92	the equalized wealth level;
93	93	(2) executes an agreement to purchase attendance
94	94	credits and an agreement under Subchapter E to contract for the
95	95	education of nonresident students who transfer to and are educated
96	96	in the district but who are not charged tuition; or
97	97	(3) executes an agreement under Subchapter E to
98	98	contract for the education of nonresident students:
99	99	(A) to an extent that does not provide more than
100	100	10 percent of the reduction in wealth per student required for the
101	101	district to achieve a wealth per student that is equal to or less
102	102	than the equalized wealth level; and
103	103	(B) under which all revenue paid by the district
104	104	to other districts, in excess of the reduction in state aid that
105	105	results from counting the weighted average daily attendance of the
106	106	students served in the contracting district, is required to be used
107	107	for funding a consortium of at least three districts in a county
108	108	with a population of less than 40,000 that is formed to support a
109	109	technology initiative.
110	110	SECTION 1.07. Sections 41.206(a), (f), (g), and (i),
111	111	Education Code, are amended to read as follows:
112	112	(a) The commissioner shall annex property detached under
113	113	Section 41.205 to school districts eligible for annexation in
114	114	accordance with this section. A school district is eligible for
115	115	annexation of property to it under this subchapter only if, before
116	116	any detachments or annexations are made in a year, the district's
117	117	wealth per student is less than the equalized wealth level
118	118	[greatest level for which funds are provided under Subchapter F,
119	119	Chapter 42].
120	120	(f) If only one school district is eligible to annex
121	121	property detached from a school district within a priority group
122	122	established by Subsections (d) and (e), the commissioner shall
123	123	annex property to that district until it reaches a wealth per
124	124	student equal as nearly as possible to the equalized wealth level
125	125	[greatest level for which funds are provided under Subchapter F,
126	126	Chapter 42,] by annexing whole parcels or items of property. Any
127	127	remaining detached property shall be annexed to eligible school
128	128	districts in the next priority group as provided by this section.
129	129	(g) If more than one school district is eligible to annex
130	130	property detached from a school district within a priority group
131	131	established by Subsections (d) and (e), the commissioner shall
132	132	first annex property to the district within the priority group to
133	133	which could be annexed the most taxable value of property without
134	134	increasing its wealth per student above the equalized wealth level
135	135	[greatest level for which funds are provided under Subchapter F,
136	136	Chapter 42,] until that district reaches a wealth per student equal
137	137	as nearly as possible to the equalized wealth level [greatest level
138	138	for which funds are provided under Subchapter F, Chapter 42,] by
139	139	annexing whole parcels or items of property. Then any additional
140	140	detached property shall be annexed in the same manner to other
141	141	eligible school districts in the same priority group in descending
142	142	order of capacity to receive taxable value of annexed property
143	143	without increasing the district's wealth per student above the
144	144	equalized wealth level [greatest level for which funds are provided
145	145	under Subchapter F, Chapter 42]. If every school district in a
146	146	priority group reaches a wealth per student equal to the equalized
147	147	wealth level [greatest level for which funds are provided under
148	148	Subchapter F, Chapter 42,] as nearly as possible, the remaining
149	149	detached property shall be annexed to school districts in the next
150	150	priority group in the manner provided by this section.
151	151	(i) The commissioner may order the annexation of a portion
152	152	of a parcel or item of property, including a portion of property
153	153	treated as a whole parcel or item under Subsection (h), if:
154	154	(1) the annexation of the whole parcel or item would
155	155	result in the district eligible to receive it in the appropriate
156	156	priority order provided by this section having a wealth per student
157	157	greater than $10,000 more than the equalized wealth level [greatest
158	158	level for which funds are provided under Subchapter F, Chapter 42];
159	159	or
160	160	(2) the commissioner determines that annexation of
161	161	portions of the parcel or item would reduce disparities in district
162	162	wealth per student more efficiently than would be possible if the
163	163	parcel or item were annexed as a whole.
164	164	SECTION 1.08. Section 41.257, Education Code, is amended to
165	165	read as follows:
166	166	Sec. 41.257. APPLICATION OF SMALL AND SPARSE ADJUSTMENTS
167	167	AND TRANSPORTATION ALLOTMENT. The budget of the consolidated
168	168	district must apply the benefit of the adjustment or allotment to
169	169	the schools of the consolidating district to which Section 42.103,
170	170	42.105, or 42.202 [42.155] would have applied in the event that the
171	171	consolidated district still qualifies as a small or sparse
172	172	district.
173	173	SECTION 1.09. Section 42.002, Education Code, is amended to
174	174	read as follows:
175	175	Sec. 42.002. PURPOSES OF FOUNDATION SCHOOL PROGRAM. [(a)]
176	176	The purposes of the Foundation School Program set forth in this
177	177	chapter and Chapter 46 are to guarantee that each school district in
178	178	the state has:
179	179	(1) substantially equal access to substantially
180	180	equalized financing and adequate resources to provide each eligible
181	181	student an [a basic] instructional program that is rated acceptable
182	182	or higher under Section 39.054, that meets other applicable legal
183	183	standards, and that is [and facilities] suitable to the student's
184	184	educational needs; and
185	185	(2) adequate resources to provide each eligible
186	186	student with [access to a substantially equalized program of
187	187	financing in excess of basic costs for certain services, as
188	188	provided by this chapter.
189	189	[(b) The Foundation School Program consists of:
190	190	[(1) two tiers that in combination provide for:
191	191	[(A) sufficient financing for all school
192	192	districts to provide a basic program of education that is rated
193	193	acceptable or higher under Section 39.054 and meets other
194	194	applicable legal standards; and
195	195	[(B) substantially equal access to funds to
196	196	provide an enriched program; and
197	197	[(2) a] facilities suitable to the student's
198	198	educational needs [component as provided by Chapter 46].
199	199	SECTION 1.10. Section 42.005, Education Code, is amended by
200	200	adding Subsection (a-1) to read as follows:
201	201	(a-1) In determining a district's average daily attendance
202	202	for purposes other than the computation of a district's program
203	203	student count under Section 42.101, the commissioner shall include
204	204	the number of full-time equivalent students in:
205	205	(1) a special education program in an instructional
206	206	arrangement other than mainstream; or
207	207	(2) a career and technology program for which a weight
208	208	is provided under Section 42.101(c)(17).
209	209	SECTION 1.11. Subchapter A, Chapter 42, Education Code, is
210	210	amended by adding Section 42.0053 to read as follows:
211	211	Sec. 42.0053. WEIGHTED AVERAGE DAILY ATTENDANCE. (a) In
212	212	this chapter, "weighted average daily attendance" of a school
213	213	district is the greater of:
214	214	(1) the district's cost-adjusted program student count
215	215	as determined under Section 42.102; or
216	216	(2) the district's scale-adjusted program student
217	217	count as determined under Section 42.103.
218	218	(b) For a district entitled to a sparsity adjustment under
219	219	Section 42.105, that adjustment is made before making the
220	220	determinations specified in Subsection (a).
221	221	SECTION 1.12. Section 42.007(c), Education Code, is amended
222	222	to read as follows:
223	223	(c) The funding elements must include:
224	224	(1) weights designed to reflect student educational
225	225	program costs [a basic allotment for the purposes of Section 42.101
226	226	that, when combined with the guaranteed yield component provided by
227	227	Subchapter F, represents the cost per student of a regular
228	228	education program that meets all mandates of law and regulation];
229	229	(2) adjustments designed to reflect the variation in
230	230	known resource costs and costs of education beyond the control of
231	231	school districts;
232	232	(3) appropriate program cost differentials and other
233	233	funding elements [for the programs authorized under Subchapter C,
234	234	with the program funding level expressed as dollar amounts and as
235	235	weights applied to the adjusted basic allotment for the appropriate
236	236	year];
237	237	(4) the maximum guaranteed level of [qualified] state
238	238	and local funds per student for the purposes of Section 42.107
239	239	[Subchapter F];
240	240	(5) the [enrichment and facilities] tax rate under
241	241	Section 42.108 [Subchapter F];
242	242	(6) the computation of students in weighted average
243	243	daily attendance under Section 42.0053 [42.302]; and
244	244	(7) the amount to be appropriated for the school
245	245	facilities assistance program under Chapter 46.
246	246	SECTION 1.13. Subchapter A, Chapter 42, Education Code, is
247	247	amended by adding Section 42.0091 to read as follows:
248	248	Sec. 42.0091. REPORT ON STATE FUNDING LEVELS. (a) Not
249	249	later than July 1 of each year, the commissioner shall:
250	250	(1) determine whether the estimated total amount of
251	251	state funding provided to a school district or open-enrollment
252	252	charter school under the Foundation School Program and from other
253	253	state funding sources for the following school year is greater than
254	254	or less than the total amount in state funding provided for the
255	255	school year in which the determination is made; and
256	256	(2) post on the agency's Internet website a report on
257	257	the amount and percentage of the increase or decrease in the total
258	258	amount of state funding determined under Subdivision (1).
259	259	(b) The report under Subsection (a)(2) must:
260	260	(1) be disaggregated by funding source; and
261	261	(2) include a calculation of the amount and percentage
262	262	of the increase or decrease in the total amount of state funding per
263	263	student in average daily attendance and per student in weighted
264	264	average daily attendance.
265	265	SECTION 1.14. The heading to Subchapter B, Chapter 42,
266	266	Education Code, is amended to read as follows:
267	267	SUBCHAPTER B. GUARANTEED YIELD [BASIC ENTITLEMENT]
268	268	SECTION 1.15. Section 42.101, Education Code, is amended to
269	269	read as follows:
270	270	Sec. 42.101. PROGRAM STUDENT COUNT [BASIC ALLOTMENT]. (a)
271	271	In this section:
272	272	(1) "Career and technology education class" and
273	273	"career and technology education program" include a technology
274	274	applications course on cybersecurity adopted or selected by the
275	275	State Board of Education under Section 28.025(c-10).
276	276	(2) "Full-time equivalent student" means 30 hours of
277	277	contact a week between a student and program personnel.
278	278	(3) "Special education program" means a program under
279	279	Subchapter A, Chapter 29.
280	280	(b) For each school district, the number of students in each
281	281	educational program offered by the district is weighted according
282	282	to the formula:
283	283	WP = S X W
284	284	where:
285	285	"WP" is the weighted number of students in the educational
286	286	program;
287	287	"S" is the number of students in average daily attendance,
288	288	number of full-time equivalent students, or number of students
289	289	enrolled, as appropriate, in the educational program; and
290	290	"W" is the weight for the educational program, as provided by
291	291	Subsection (c).
292	292	(c) The weights are:
293	293	(1) 1.0 for a student in average daily attendance, not
294	294	including time the student spends each day in a special education
295	295	program in an instructional arrangement other than mainstream or in
296	296	a career and technology education program;
297	297	(2) 1.1 for a student in a special education program in
298	298	a mainstream instructional arrangement;
299	299	(3) 5.0 for a full-time equivalent student in a
300	300	special education program in a homebound instructional
301	301	arrangement;
302	302	(4) 3.0 for a full-time equivalent student in a
303	303	special education program in a hospital class instructional
304	304	arrangement;
305	305	(5) 5.0 for a full-time equivalent student in a
306	306	special education program in a speech therapy instructional
307	307	arrangement;
308	308	(6) 3.0 for a full-time equivalent student in a
309	309	special education program in a resource room instructional
310	310	arrangement;
311	311	(7) 3.0 for a full-time equivalent student in a
312	312	special education program in a self-contained, mild and moderate,
313	313	regular campus instructional arrangement;
314	314	(8) 3.0 for a full-time equivalent student in a
315	315	special education program in a self-contained, severe, regular
316	316	campus instructional arrangement;
317	317	(9) 2.7 for a full-time equivalent student in a
318	318	special education program in an off home campus instructional
319	319	arrangement;
320	320	(10) 1.7 for a full-time equivalent student in a
321	321	special education program in a nonpublic day school;
322	322	(11) 2.3 for a full-time equivalent student in a
323	323	special education program vocational adjustment class;
324	324	(12) 4.0 for a student in a special education program
325	325	who resides in a residential care and treatment facility, other
326	326	than a state school, whose parent or guardian does not reside in the
327	327	district and who receives educational services from a local school
328	328	district;
329	329	(13) 2.8 for a student in a special education program
330	330	who resides in a state school;
331	331	(14) 0.3 for a student at risk of dropping out of
332	332	school, as defined by Section 29.081;
333	333	(15) notwithstanding Subdivision (14), 2.41 for a
334	334	full-time equivalent student who is in a remedial and support
335	335	program under Section 29.081 because the student is pregnant;
336	336	(16) 0.2 for a student who is in a bilingual education
337	337	or special language program under Subchapter B, Chapter 29;
338	338	(17) for a full-time equivalent student in an approved
339	339	career and technology education program in grades 9 through 12 or in
340	340	a career and technology program for students with disabilities in
341	341	grades 7 through 12:
342	342	(A) 1.35; and
343	343	(B) 0.01, if the student is enrolled in two or
344	344	more advanced career and technology education classes for a total
345	345	of three or more credits;
346	346	(18) 0.12 or a greater weight as provided by
347	347	appropriation for a student in a program for gifted and talented
348	348	students that the district certifies to the commissioner as
349	349	complying with Subchapter D, Chapter 29;
350	350	(19) except as provided by Subsection (e), 0.1 for a
351	351	student in average daily attendance who is using a public education
352	352	grant under Subchapter G, Chapter 29, to attend school in a district
353	353	other than the district in which the student resides; and
354	354	(20) 0.05 for a student in average daily attendance in
355	355	grades 9 through 12 in the district.
356	356	(d) A district's program student count is equal to the sum
357	357	of the weighted number of students for each educational program
358	358	offered by the district.
359	359	(e) The total number of weights under Subsection (c)(19) to
360	360	which a district is entitled may not exceed the number by which the
361	361	number of students using public education grants to attend school
362	362	in the district exceeds the number of students who reside in the
363	363	district and use public education grants to attend school in
364	364	another district.
365	365	[For each student in average daily attendance, not including
366	366	the time students spend each day in special education programs in an
367	367	instructional arrangement other than mainstream or career and
368	368	technology education programs, for which an additional allotment is
369	369	made under Subchapter C, a district is entitled to an allotment
370	370	equal to the lesser of $4,765 or the amount that results from the
371	371	following formula:
372	372	[A = $4,765 X (DCR/MCR)
373	373	[where:
374	374	["A" is the allotment to which a district is entitled;
375	375	["DCR" is the district's compressed tax rate, which is the
376	376	product of the state compression percentage, as determined under
377	377	Section 42.2516, multiplied by the maintenance and operations tax
378	378	rate adopted by the district for the 2005 tax year; and
379	379	["MCR" is the state maximum compressed tax rate, which is the
380	380	product of the state compression percentage, as determined under
381	381	Section 42.2516, multiplied by $1.50.
382	382	[(a-1) Notwithstanding Subsection (a), for a school
383	383	district that adopted a maintenance and operations tax rate for the
384	384	2005 tax year below the maximum rate permitted by law for that year,
385	385	the district's compressed tax rate ("DCR") includes the portion of
386	386	the district's current maintenance and operations tax rate in
387	387	excess of the first six cents above the district's compressed tax
388	388	rate, as defined by Subsection (a), until the district's compressed
389	389	tax rate computed in accordance with this subsection is equal to the
390	390	state maximum compressed tax rate ("MCR").
391	391	[(b) A greater amount for any school year may be provided by
392	392	appropriation.
393	393	[(c) This subsection applies to a school district for which
394	394	the compressed tax rate ("DCR") is determined in accordance with
395	395	Subsection (a-1). Any reduction in the district's adopted
396	396	maintenance and operations tax rate is applied to the following
397	397	components of the district's tax rate in the order specified:
398	398	[(1) tax effort described by Section 42.302(a-1)(2);
399	399	[(2) tax effort described by Section 42.302(a-1)(1);
400	400	and
401	401	[(3) tax effort included in the determination of the
402	402	district's compressed tax rate ("DCR") under Subsection (a-1).]
403	403	SECTION 1.16. Section 42.102, Education Code, is amended to
404	404	read as follows:
405	405	Sec. 42.102. COST OF EDUCATION ADJUSTMENT. (a) The program
406	406	student count [basic allotment] for each school district is
407	407	adjusted to reflect the geographic variation in known resource
408	408	costs and costs of education due to factors beyond the control of
409	409	the [school] district.
410	410	(b) The program student count of a school district [cost of
411	411	education adjustment] is adjusted by applying the formula:
412	412	CAP = [(PSC X .5) X (((CEI - 1) X .457668) + 1)] + (PSC X .5)
413	413	where:
414	414	"CAP" is the school district's cost-adjusted program student
415	415	count;
416	416	"PSC" is the district's program student count determined
417	417	under Section 42.101; and
418	418	"CEI" is the cost of education index calculated in accordance
419	419	with the teacher fixed effects index methodology described by the
420	420	2004 report to the legislature submitted by the joint select
421	421	committee on public school finance [adjustment adopted by the
422	422	foundation school fund budget committee and contained in Chapter
423	423	203, Title 19, Texas Administrative Code, as that chapter existed
424	424	on March 26, 1997].
425	425	SECTION 1.17. Section 42.103(a), Education Code, is amended
426	426	to read as follows:
427	427	(a) The program student count [basic allotment] for certain
428	428	small and mid-sized school districts is adjusted in accordance with
429	429	this section. In this section:
430	430	(1) "SAP" ["AA"] is the district's scale-adjusted
431	431	program student count [adjusted allotment per student];
432	432	(2) "ADA" is the number of students in average daily
433	433	attendance for whom [which] the district is entitled to a weight [an
434	434	allotment] under Sections 42.101(c)(1) and (2) [Section 42.101];
435	435	and
436	436	(3) "CAP" ["ABA"] is the district's cost-adjusted
437	437	program student count [adjusted basic allotment] determined under
438	438	Section 42.102.
439	439	SECTION 1.18. Sections 42.103(b), (c), and (d), Education
440	440	Code, as effective until September 1, 2023, are amended to read as
441	441	follows:
442	442	(b) The program student count [basic allotment] of a school
443	443	district that contains at least 300 square miles and has not more
444	444	than 1,600 students in average daily attendance is adjusted by
445	445	applying the formula:
446	446	SAP [AA] = (1 + ((1,600 - ADA) X .0004)) X CAP [ABA]
447	447	(c) The program student count [basic allotment] of a school
448	448	district that contains less than 300 square miles and has not more
449	449	than 1,600 students in average daily attendance is adjusted by
450	450	applying the following formulas:
451	451	(1) for the fiscal year beginning September 1, 2018:
452	452	AA = (1 + ((1,600 - ADA) X .000275)) X ABA;
453	453	(2) for the fiscal year beginning September 1, 2019:
454	454	SAP [AA] = (1 + ((1,600 - ADA) X .00030)) X CAP [ABA];
455	455	(3) for the fiscal year beginning September 1, 2020:
456	456	SAP [AA] = (1 + ((1,600 - ADA) X .000325)) X CAP [ABA];
457	457	(4) for the fiscal year beginning September 1, 2021:
458	458	SAP [AA] = (1 + ((1,600 - ADA) X .00035)) X CAP [ABA];
459	459	and
460	460	(5) for the fiscal year beginning September 1, 2022:
461	461	SAP [AA] = (1 + ((1,600 - ADA) X .000375)) X CAP [ABA]
462	462	(d) The program student count [basic allotment] of a school
463	463	district that offers a kindergarten through grade 12 program and
464	464	has less than 5,000 students in average daily attendance is
465	465	adjusted by applying the formula, of the following formulas, that
466	466	results in the greatest scale-adjusted program student count
467	467	[adjusted allotment]:
468	468	(1) the formula in Subsection (b) or (c) for which the
469	469	district is eligible; or
470	470	(2) SAP [AA] = (1 + ((5,000 - ADA) X .000025)) X CAP
471	471	[ABA].
472	472	SECTION 1.19. Sections 42.103(b) and (d), Education Code,
473	473	as effective September 1, 2023, are amended to read as follows:
474	474	(b) The program student count [basic allotment] of a school
475	475	district that has not more than 1,600 students in average daily
476	476	attendance is adjusted by applying the formula:
477	477	SAP [AA] = (1 + ((1,600 - ADA) X .0004)) X CAP [ABA]
478	478	(d) The program student count [basic allotment] of a school
479	479	district that offers a kindergarten through grade 12 program and
480	480	has less than 5,000 students in average daily attendance is
481	481	adjusted by applying the formula, of the following formulas, that
482	482	results in the greatest scale-adjusted program student count
483	483	[adjusted allotment]:
484	484	(1) the formula in Subsection (b), if the district is
485	485	eligible for that formula; or
486	486	(2) SAP [AA] = (1 + ((5,000 - ADA) X .000025)) X CAP
487	487	[ABA].
488	488	SECTION 1.20. Sections 42.105(a) and (c), Education Code,
489	489	are amended to read as follows:
490	490	(a) Notwithstanding Sections [42.101,] 42.102[,] and
491	491	42.103, the program student count of a school district that has
492	492	fewer than 130 students in average daily attendance shall be
493	493	adjusted under Sections 42.102 and 42.103 [provided an adjusted
494	494	basic allotment] on the basis of 130 students in average daily
495	495	attendance if the district [it] offers a kindergarten through grade
496	496	12 program and has preceding or current year's average daily
497	497	attendance of at least 90 students or is 30 miles or more by bus
498	498	route from the nearest high school district. The program student
499	499	count of a school [A] district offering a kindergarten through
500	500	grade 8 program whose preceding or current year's average daily
501	501	attendance was at least 50 students or which is 30 miles or more by
502	502	bus route from the nearest high school district shall be adjusted
503	503	under Sections 42.102 and 42.103 [provided an adjusted basic
504	504	allotment] on the basis of 75 students in average daily attendance.
505	505	An average daily attendance of 60 students shall be the basis of
506	506	adjusting [providing] the program student count under Sections
507	507	42.102 and 42.103 [adjusted basic allotment] if a district offers a
508	508	kindergarten through grade 6 program and has preceding or current
509	509	year's average daily attendance of at least 40 students or is 30
510	510	miles or more by bus route from the nearest high school district.
511	511	(c) Notwithstanding Subsection (a) or Sections [42.101,]
512	512	42.102[,] and 42.103, the program student count of a school
513	513	district to which this subsection applies, as provided by
514	514	Subsection (b), that has fewer than 130 students in average daily
515	515	attendance shall be adjusted under Sections 42.102 and 42.103
516	516	[provided an adjusted basic allotment] on the basis of 130 students
517	517	in average daily attendance if it offers a kindergarten through
518	518	grade four program and has preceding or current year's average
519	519	daily attendance of at least 75 students or is 30 miles or more by
520	520	bus route from the nearest high school district.
521	521	SECTION 1.21. Sections 42.302, 42.303, and 42.304,
522	522	Education Code, are transferred to Subchapter B, Chapter 42,
523	523	Education Code, redesignated as Sections 42.107, 42.108, and
524	524	42.109, Education Code, and amended to read as follows:
525	525	Sec. 42.107 [42.302]. GUARANTEED YIELD [ALLOTMENT]. (a)
526	526	Each school district is guaranteed a specified amount per weighted
527	527	student in state and local funds for each cent of tax effort [over
528	528	that required for the district's local fund assignment] up to the
529	529	maximum level specified in this subchapter. The amount of state
530	530	support, subject only to the maximum amount under Section 42.108
531	531	[42.303], is determined by the formula:
532	532	GYA = (GL X WADA X DTR X 100) - LR
533	533	where:
534	534	"GYA" is the guaranteed yield amount of state funds to be
535	535	allocated to the district;
536	536	"GL" is the dollar amount guaranteed level of state and local
537	537	funds per weighted student per cent of tax effort, which is, subject
538	538	to the adjustment under Subsection (a-1), $56 [an amount described
539	539	by Subsection (a-1)] or a greater amount for any year provided by
540	540	appropriation;
541	541	"WADA" has the meaning assigned by Section 42.0053 [is the
542	542	number of students in weighted average daily attendance, which is
543	543	calculated by dividing the sum of the school district's allotments
544	544	under Subchapters B and C, less any allotment to the district for
545	545	transportation, any allotment under Section 42.158 or 42.160, and
546	546	50 percent of the adjustment under Section 42.102, by the basic
547	547	allotment for the applicable year];
548	548	"DTR" is the district [enrichment] tax rate of the school
549	549	district, which is determined by subtracting the amount [amounts]
550	550	specified by Subsection (b) from the total amount of maintenance
551	551	and operations taxes collected by the school district for the
552	552	applicable school year and dividing the difference by the quotient
553	553	of the district's taxable value of property as determined under
554	554	Subchapter M, Chapter 403, Government Code, or, if applicable,
555	555	under Section 42.2521, divided by 100; and
556	556	"LR" is the local revenue, which is determined by multiplying
557	557	"DTR" by the quotient of the district's taxable value of property as
558	558	determined under Subchapter M, Chapter 403, Government Code, or, if
559	559	applicable, under Section 42.2521, divided by 100.
560	560	(a-1) Beginning with the 2021-2022 school year, the
561	561	guaranteed level provided under Subsection (a) is adjusted annually
562	562	to increase the guaranteed level by the greater of:
563	563	(1) one percent of the amount of the guaranteed level
564	564	for the preceding school year; or
565	565	(2) the amount that results from applying the
566	566	inflation rate, as determined by the comptroller on the basis of
567	567	changes in the Consumer Price Index for All Urban Consumers
568	568	published by the Bureau of Labor Statistics of the United States
569	569	Department of Labor, to the guaranteed level for the preceding
570	570	school year. [For purposes of Subsection (a), the dollar amount
571	571	guaranteed level of state and local funds per weighted student per
572	572	cent of tax effort ("GL") for a school district is:
573	573	[(1) the greater of the amount of district tax revenue
574	574	per weighted student per cent of tax effort that would be available
575	575	to the Austin Independent School District, as determined by the
576	576	commissioner in cooperation with the Legislative Budget Board, if
577	577	the reduction of the limitation on tax increases as provided by
578	578	Section 11.26(a-1), (a-2), or (a-3), Tax Code, did not apply, or the
579	579	amount of district tax revenue per weighted student per cent of tax
580	580	effort used for purposes of this subdivision in the preceding
581	581	school year, for the first six cents by which the district's
582	582	maintenance and operations tax rate exceeds the rate equal to the
583	583	sum of the product of the state compression percentage, as
584	584	determined under Section 42.2516, multiplied by the maintenance and
585	585	operations tax rate adopted by the district for the 2005 tax year
586	586	and any additional tax effort included in calculating the
587	587	district's compressed tax rate under Section 42.101(a-1); and
588	588	[(2) $31.95, for the district's maintenance and
589	589	operations tax effort that exceeds the amount of tax effort
590	590	described by Subdivision (1).
591	591	[(a-2) The limitation on district enrichment tax rate
592	592	("DTR") under Section 42.303 does not apply to the district's
593	593	maintenance and operations tax effort described by Subsection
594	594	(a-1)(1).]
595	595	(b) In computing the district [enrichment] tax rate of a
596	596	school district, the total amount of maintenance and operations
597	597	taxes collected by the school district does not include the amount
598	598	of[:
599	599	[(1) the district's local fund assignment under
600	600	Section 42.252; or
601	601	[(2)] taxes paid into a tax increment fund under
602	602	Chapter 311, Tax Code.
603	603	(c) For purposes of this section, school district taxes for
604	604	which credit is granted under Section 31.035, 31.036, or 31.037,
605	605	Tax Code, are considered taxes collected by the school district as
606	606	if the taxes were paid when the credit for the taxes was granted.
607	607	(d) For purposes of this section, the total amount of
608	608	maintenance and operations taxes collected for an applicable school
609	609	year by a school district with alternate tax dates, as authorized by
610	610	Section 26.135, Tax Code, is the amount of taxes collected on or
611	611	after January 1 of the year in which the school year begins and not
612	612	later than December 31 of the same year.
613	613	(e) For purposes of this section, school district taxes for
614	614	which credit is granted under former Subchapter D, Chapter 313, Tax
615	615	Code, are considered taxes collected by the school district as if
616	616	the taxes were paid when the credit for the taxes was granted.
617	617	(f) If a school district imposes a maintenance and
618	618	operations tax at a rate greater than the rate equal to the product
619	619	of the state compression percentage, as determined under Section
620	620	42.2516, multiplied by the maintenance and operations tax rate
621	621	adopted by the district for the 2005 tax year, the district is
622	622	entitled to receive a guaranteed yield [an allotment] under this
623	623	section on the basis of that greater tax effort.
624	624	Sec. 42.108 [42.303]. LIMITATION ON DISTRICT [ENRICHMENT]
625	625	TAX RATE. The district [enrichment] tax rate ("DTR") under Section
626	626	42.107 [42.302] may not exceed [the amount per $100 of valuation by
627	627	which] the maximum rate permitted under Section 45.003 [exceeds the
628	628	rate used to determine the district's local share under Section
629	629	42.252], or a greater amount for any year provided by
630	630	appropriation.
631	631	Sec. 42.109 [42.304]. COMPUTATION OF AID FOR DISTRICT ON
632	632	MILITARY RESERVATION OR AT STATE SCHOOL. State assistance under
633	633	this subchapter for a school district located on a federal military
634	634	installation or at Moody State School is computed using the average
635	635	tax rate and property value per student of school districts in the
636	636	county, as determined by the commissioner.
637	637	SECTION 1.22. Subchapter B, Chapter 42, Education Code, is
638	638	amended by adding Section 42.110 to read as follows:
639	639	Sec. 42.110. MINIMUM AND MAXIMUM GAIN. (a) Notwithstanding
640	640	any other provision of this chapter, a school district is entitled
641	641	for the 2019-2020 and 2020-2021 school years to a minimum gain
642	642	guarantee of additional state aid in an amount equal to the lesser
643	643	of:
644	644	(1) the amount by which the district's state and local
645	645	revenue received for the applicable school year under Chapter 41
646	646	and this chapter is less than the state and local revenue received
647	647	by the district under Chapter 41 and this chapter for the 2018-2019
648	648	school year; or
649	649	(2) $65 per student in weighted average daily
650	650	attendance.
651	651	(b) Notwithstanding any other provision of this chapter,
652	652	the amount of state and local revenue received by a school district
653	653	under Chapter 41 and this chapter for the 2019-2020 or 2020-2021
654	654	school year may not exceed the sum of $250 per student in weighted
655	655	average daily attendance for that school year and the amount of
656	656	state and local revenue received by the district under Chapter 41
657	657	and this chapter for the 2018-2019 school year. If a school
658	658	district's state and local revenue would exceed that amount for the
659	659	applicable school year, the amount of state funds to which the
660	660	district would otherwise be entitled under this chapter shall be
661	661	reduced proportionately to comply with the maximum amount of
662	662	funding described by this subsection.
663	663	(c) The commissioner may adopt rules as necessary to
664	664	implement this section.
665	665	(d) This section expires September 1, 2021.
666	666	SECTION 1.23. The heading to Subchapter C, Chapter 42,
667	667	Education Code, is amended to read as follows:
668	668	SUBCHAPTER C. CONDITIONS APPLICABLE TO FUNDING BASED ON WEIGHTS
669	669	[SPECIAL ALLOTMENTS]
670	670	SECTION 1.24. Sections 42.151, 42.152, 42.153, 42.154,
671	671	42.1541, and 42.156, Education Code, are amended to read as
672	672	follows:
673	673	Sec. 42.151. SPECIAL EDUCATION PROGRAMS. (a) In this
674	674	section, "special education funds" means the portion of state and
675	675	local funds attributable to students weighted under Sections
676	676	42.101(c)(2)-(13). [For each student in average daily attendance in
677	677	a special education program under Subchapter A, Chapter 29, in a
678	678	mainstream instructional arrangement, a school district is
679	679	entitled to an annual allotment equal to the adjusted basic
680	680	allotment multiplied by 1.1. For each full-time equivalent student
681	681	in average daily attendance in a special education program under
682	682	Subchapter A, Chapter 29, in an instructional arrangement other
683	683	than a mainstream instructional arrangement, a district is entitled
684	684	to an annual allotment equal to the adjusted basic allotment
685	685	multiplied by a weight determined according to instructional
686	686	arrangement as follows:
687	687	[Homebound5.0
688	688	[Hospital class3.0
689	689	[Speech therapy5.0
690	690	[Resource room3.0
691	691	[Self-contained, mild and moderate,
692	692	regular campus3.0
693	693	[Self-contained, severe, regular campus3.0
694	694	[Off home campus2.7
695	695	[Nonpublic day school1.7
696	696	[Vocational adjustment class2.3]
697	697	(b) [A special instructional arrangement for students with
698	698	disabilities residing in care and treatment facilities, other than
699	699	state schools, whose parents or guardians do not reside in the
700	700	district providing education services shall be established under
701	701	the rules of the State Board of Education. The funding weight for
702	702	this arrangement shall be 4.0 for those students who receive their
703	703	education service on a local school district campus. A special
704	704	instructional arrangement for students with disabilities residing
705	705	in state schools shall be established under the rules of the State
706	706	Board of Education with a funding weight of 2.8.
707	707	[(c)] For funding purposes, the number of contact hours
708	708	credited per day for each special education student in the off home
709	709	campus instructional arrangement may not exceed the contact hours
710	710	credited per day for the multidistrict class instructional
711	711	arrangement in the 1992-1993 school year.
712	712	(c) [(d)] For funding purposes, the number of contact hours
713	713	credited per day for each special education student in the resource
714	714	room; self-contained, mild and moderate; and self-contained,
715	715	severe, instructional arrangements may not exceed the average of
716	716	the statewide total contact hours credited per day for those three
717	717	instructional arrangements in the 1992-1993 school year.
718	718	(d) [(e)] The State Board of Education by rule shall
719	719	prescribe the qualifications a special education [an]
720	720	instructional arrangement must meet in order to be funded as a
721	721	particular instructional arrangement under this chapter [section].
722	722	In prescribing the qualifications that a mainstream instructional
723	723	arrangement must meet, the board shall establish requirements that
724	724	students with disabilities and their teachers receive the direct,
725	725	indirect, and support services that are necessary to enrich the
726	726	regular classroom and enable student success.
727	727	(e) [(f) In this section, "full-time equivalent student"
728	728	means 30 hours of contact a week between a special education student
729	729	and special education program personnel.
730	730	[(g)] The State Board of Education shall adopt rules and
731	731	procedures governing contracts for residential placement of
732	732	special education students. The legislature shall provide by
733	733	appropriation for the state's share of the costs of those
734	734	placements.
735	735	(f) Special education funds [(h) Funds allocated under this
736	736	section], other than an indirect cost apportionment [allotment]
737	737	established under Section 42.1541 [State Board of Education rule],
738	738	must be used in the special education program under Subchapter A,
739	739	Chapter 29.
740	740	(g) [(i)] The agency shall encourage the placement of
741	741	students in special education programs, including students in
742	742	residential instructional arrangements, in the least restrictive
743	743	environment appropriate for their educational needs.
744	744	(h) [(k)] A school district that provides an extended year
745	745	program required by federal law for special education students who
746	746	may regress is entitled to receive funds in an amount equal to 75
747	747	percent, or a lesser percentage determined by the commissioner, of
748	748	the special education funds attributable to a student in the
749	749	applicable instructional arrangement [adjusted basic allotment or
750	750	adjusted allotment, as applicable,] for each full-time equivalent
751	751	student in average daily attendance[, multiplied by the amount
752	752	designated for the student's instructional arrangement under this
753	753	section,] for each day the program is provided divided by the number
754	754	of days in the minimum school year. The total amount of state
755	755	funding for extended year services under this section may not
756	756	exceed $10 million per year. A school district may use funds
757	757	received under this section only in providing an extended year
758	758	program.
759	759	[(l) From the total amount of funds appropriated for special
760	760	education under this section, the commissioner shall withhold an
761	761	amount specified in the General Appropriations Act, and distribute
762	762	that amount to school districts for programs under Section 29.014.
763	763	The program established under that section is required only in
764	764	school districts in which the program is financed by funds
765	765	distributed under this subsection and any other funds available for
766	766	the program. After deducting the amount withheld under this
767	767	subsection from the total amount appropriated for special
768	768	education, the commissioner shall reduce each district's allotment
769	769	proportionately and shall allocate funds to each district
770	770	accordingly.]
771	771	Sec. 42.152. COMPENSATORY EDUCATION PROGRAMS [ALLOTMENT].
772	772	(a) In this section, "compensatory education funds" means the
773	773	portion of state and local funds attributable to students weighted
774	774	under Sections 42.101(c)(14) and (15) [For each student who is
775	775	educationally disadvantaged or who is a student who does not have a
776	776	disability and resides in a residential placement facility in a
777	777	district in which the student's parent or legal guardian does not
778	778	reside, a district is entitled to an annual allotment equal to the
779	779	adjusted basic allotment multiplied by 0.2, and by 2.41 for each
780	780	full-time equivalent student who is in a remedial and support
781	781	program under Section 29.081 because the student is pregnant].
782	782	(b) Compensatory education funds must [For purposes of this
783	783	section, the number of educationally disadvantaged students is
784	784	determined:
785	785	[(1) by averaging the best six months' numbers of
786	786	students eligible for enrollment in the national school lunch
787	787	program of free or reduced-price lunches for the preceding school
788	788	year; or
789	789	[(2) in the manner provided by commissioner rule.
790	790	[(b-1) A student receiving a full-time virtual education
791	791	through the state virtual school network may be included in
792	792	determining the number of educationally disadvantaged students
793	793	under Subsection (b) if the school district submits to the
794	794	commissioner a plan detailing the enhanced services that will be
795	795	provided to the student and the commissioner approves the plan.
796	796	[(c) Funds allocated under this section shall] be used to
797	797	fund supplemental programs and services designed to eliminate any
798	798	disparity in performance on assessment instruments administered
799	799	under Subchapter B, Chapter 39, or disparity in the rates of high
800	800	school completion between students at risk of dropping out of
801	801	school, as defined by Section 29.081, and all other students.
802	802	Specifically, the funds, other than an indirect cost apportionment
803	803	[allotment] established under Section 42.1541 [State Board of
804	804	Education rule], which may not exceed 45 percent, may be used to
805	805	meet the costs of providing a compensatory, intensive, or
806	806	accelerated instruction program under Section 29.081 or a
807	807	disciplinary alternative education program established under
808	808	Section 37.008[,] or to pay the costs associated with placing
809	809	students in a juvenile justice alternative education program
810	810	established under Section 37.011[, or to support a program eligible
811	811	under Title I of the Elementary and Secondary Education Act of 1965,
812	812	as provided by Pub. L. No. 103-382 and its subsequent amendments,
813	813	and by federal regulations implementing that Act, at a campus at
814	814	which at least 40 percent of the students are educationally
815	815	disadvantaged]. In meeting the costs of providing a compensatory,
816	816	intensive, or accelerated instruction program under Section
817	817	29.081, a district's compensatory education funds must [allotment
818	818	shall] be used for costs supplementary to the regular education
819	819	program, such as costs for program and student evaluation,
820	820	instructional materials and equipment and other supplies required
821	821	for quality instruction, supplemental staff expenses, salary for
822	822	teachers of at-risk students, smaller class size, and
823	823	individualized instruction. A home-rule school district or an
824	824	open-enrollment charter school must use compensatory education
825	825	funds [allocated under Subsection (a)] for a purpose authorized in
826	826	this subsection but is not otherwise subject to Subchapter C,
827	827	Chapter 29. For purposes of this subsection, a program
828	828	specifically designed to serve students at risk of dropping out of
829	829	school, as defined by Section 29.081, is considered to be a program
830	830	supplemental to the regular education program, and a district may
831	831	use its compensatory education funds [allotment] for such a
832	832	program.
833	833	(c) [(c-1)] Notwithstanding Subsection (b) [(c)],
834	834	compensatory education funds [allocated under this section] may be
835	835	used to fund in proportion to the percentage of students served by
836	836	the program that meet the criteria in Section 29.081(d) or (g):
837	837	(1) an accelerated reading instruction program under
838	838	Section 28.006(g); or
839	839	(2) a program for treatment of students who have
840	840	dyslexia or a related disorder as required by Section 38.003.
841	841	(d) [(c-2)] Notwithstanding Subsection (b) [(c)],
842	842	compensatory education funds [allocated under this section] may be
843	843	used to fund a school district's mentoring services program under
844	844	Section 29.089.
845	845	(e) [(d)] The agency shall evaluate the effectiveness of
846	846	accelerated instruction and support programs provided under
847	847	Section 29.081 for students at risk of dropping out of school.
848	848	(f) [(q)] The State Board of Education, with the assistance
849	849	of the comptroller, shall develop and implement by rule reporting
850	850	and auditing systems for district and campus expenditures of
851	851	compensatory education funds to ensure that those [compensatory
852	852	education] funds, other than the indirect cost apportionment
853	853	[allotment], are spent only to supplement the regular education
854	854	program as required by Subsection (b) [(c)]. The reporting
855	855	requirements shall be managed electronically to minimize local
856	856	administrative costs. A school district shall submit the report
857	857	required by this subsection not later than the 150th day after the
858	858	last day permissible for resubmission of information required under
859	859	Section 42.006.
860	860	(g) [(q-1)] The commissioner shall develop a system to
861	861	identify school districts that are at high risk of having used
862	862	compensatory education funds other than in compliance with
863	863	Subsection (b) [(c)] or of having inadequately reported
864	864	compensatory education expenditures. If a review of the report
865	865	submitted under Subsection (f) [(q)], using the risk-based system,
866	866	indicates that a district is not at high risk of having misused
867	867	compensatory education funds or of having inadequately reported
868	868	compensatory education expenditures, the district may not be
869	869	required to perform a local audit of compensatory education
870	870	expenditures and is not subject to on-site monitoring under this
871	871	section.
872	872	(h) [(q-2)] If a review of the report submitted under
873	873	Subsection (f) [(q)], using the risk-based system, indicates that a
874	874	school district is at high risk of having misused compensatory
875	875	education funds, the commissioner shall notify the district of that
876	876	determination. The district must respond to the commissioner not
877	877	later than the 30th day after the date the commissioner notifies the
878	878	district of the commissioner's determination. If the district's
879	879	response does not change the commissioner's determination that the
880	880	district is at high risk of having misused compensatory education
881	881	funds or if the district does not respond in a timely manner, the
882	882	commissioner shall:
883	883	(1) require the district to conduct a local audit of
884	884	compensatory education expenditures for the current or preceding
885	885	school year;
886	886	(2) order agency staff to conduct on-site monitoring
887	887	of the district's compensatory education expenditures; or
888	888	(3) both require a local audit and order on-site
889	889	monitoring.
890	890	(i) [(q-3)] If a review of the report submitted under
891	891	Subsection (f) [(q)], using the risk-based system, indicates that a
892	892	school district is at high risk of having inadequately reported
893	893	compensatory education expenditures, the commissioner may require
894	894	agency staff to assist the district in following the proper
895	895	reporting methods or amending a district or campus improvement plan
896	896	under Subchapter F, Chapter 11. If the district does not take
897	897	appropriate corrective action before the 45th day after the date
898	898	the agency staff notifies the district of the action the district is
899	899	expected to take, the commissioner may:
900	900	(1) require the district to conduct a local audit of
901	901	the district's compensatory education expenditures; or
902	902	(2) order agency staff to conduct on-site monitoring
903	903	of the district's compensatory education expenditures.
904	904	(j) [(q-4)] The commissioner, in the year following a local
905	905	audit of compensatory education expenditures, shall withhold from a
906	906	school district's foundation school fund payment an amount equal to
907	907	the amount of compensatory education funds the agency determines
908	908	were not used in compliance with Subsection (b) [(c)]. The
909	909	commissioner shall release to a district funds withheld under this
910	910	subsection when the district provides to the commissioner a
911	911	detailed plan to spend those funds in compliance with Subsection
912	912	(b) [(c)].
913	913	(k) [(r)] The commissioner shall grant a one-year exemption
914	914	from the requirements of Subsections (f), (g), (h), (i), and (j)
915	915	[(q)-(q-4)] to a school district in which the group of students who
916	916	have failed to perform satisfactorily in the preceding school year
917	917	on an assessment instrument required under Section 39.023(a), (c),
918	918	or (l) subsequently performs on those assessment instruments at a
919	919	level that meets or exceeds a level prescribed by commissioner
920	920	rule. Each year the commissioner, based on the most recent
921	921	information available, shall determine if a school district is
922	922	entitled to an exemption for the following school year and notify
923	923	the district of that determination.
924	924	Sec. 42.153. BILINGUAL EDUCATION PROGRAMS [ALLOTMENT]. (a)
925	925	In this section, "bilingual education funds" means the portion of
926	926	state and local funds attributable to students weighted under
927	927	Section 42.101(c)(16) [For each student in average daily attendance
928	928	in a bilingual education or special language program under
929	929	Subchapter B, Chapter 29, a district is entitled to an annual
930	930	allotment equal to the adjusted basic allotment multiplied by 0.1].
931	931	(b) Bilingual education funds [Funds allocated under this
932	932	section], other than an indirect cost apportionment [allotment]
933	933	established under Section 42.1541 [State Board of Education rule],
934	934	must be used in providing bilingual education or special language
935	935	programs under Subchapter B, Chapter 29, and must be accounted for
936	936	under existing agency reporting and auditing procedures.
937	937	(c) A school district's bilingual education funds [or
938	938	special language allocation] may be used only for program and
939	939	student evaluation, instructional materials and equipment, staff
940	940	development, supplemental staff expenses, salary supplements for
941	941	teachers, and other supplies required for quality instruction and
942	942	smaller class size.
943	943	Sec. 42.154. CAREER AND TECHNOLOGY EDUCATION PROGRAMS
944	944	[ALLOTMENT]. (a) [For each full-time equivalent student in
945	945	average daily attendance in an approved career and technology
946	946	education program in grades nine through 12 or in career and
947	947	technology education programs for students with disabilities in
948	948	grades seven through 12, a district is entitled to:
949	949	[(1) an annual allotment equal to the adjusted basic
950	950	allotment multiplied by a weight of 1.35; and
951	951	[(2) $50, if the student is enrolled in two or more
952	952	advanced career and technology education classes for a total of
953	953	three or more credits.
954	954	[(b)] In this section, [:
955	955	[(1) "Career and technology education class" and]
956	956	"career and technology education program" has the meaning assigned
957	957	by Section 42.101(a) [include a technology applications course on
958	958	cybersecurity adopted or selected by the State Board of Education
959	959	under Section 28.025(c-10)].
960	960	[(2) "Full-time equivalent student" means 30 hours of
961	961	contact a week between a student and career and technology
962	962	education program personnel.]
963	963	(b) The portion of state and local funds attributable to
964	964	students weighted [(c) Funds allocated] under Section
965	965	42.101(c)(17) [this section], other than an indirect cost
966	966	apportionment [allotment] established under Section 42.1541 [State
967	967	Board of Education rule], must be used in providing career and
968	968	technology education programs in grades 9 [nine] through 12 or
969	969	career and technology education programs for students with
970	970	disabilities in grades 7 [seven] through 12 under Sections 29.182,
971	971	29.183, and 29.184.
972	972	(c) [(d)] The commissioner shall conduct a cost-benefit
973	973	comparison between career and technology education programs and
974	974	mathematics and science programs.
975	975	[(e) Out of the total statewide allotment for career and
976	976	technology education under this section, the commissioner shall set
977	977	aside an amount specified in the General Appropriations Act, which
978	978	may not exceed an amount equal to one percent of the total amount
979	979	appropriated, to support regional career and technology education
980	980	planning. After deducting the amount set aside under this
981	981	subsection from the total amount appropriated for career and
982	982	technology education under this section, the commissioner shall
983	983	reduce each district's tier one allotments in the same manner
984	984	described for a reduction in allotments under Section 42.253.]
985	985	Sec. 42.1541. INDIRECT COSTS [COST ALLOTMENTS]. (a) The
986	986	State Board of Education shall by rule establish [increase] the
987	987	indirect cost apportionments described by [allotments established
988	988	under] Sections 42.151(f) [42.151(h)], 42.152(b) [42.152(c)],
989	989	42.153(b), and 42.154(b) at an amount and proportion not less than
990	990	the amount and proportion resulting from the indirect cost
991	991	allotment [42.154(a-1) and (c) and] in effect for the 2018-2019
992	992	[2010-2011] school year [in proportion to the average percentage
993	993	reduction in total state and local maintenance and operations
994	994	revenue provided under this chapter for the 2011-2012 school year
995	995	as a result of S.B. Nos. 1 and 2, Acts of the 82nd Legislature, 1st
996	996	Called Session, 2011].
997	997	(b) To the extent necessary to permit the board to comply
998	998	with this section, the limitation on the percentage of the indirect
999	999	cost apportionment [allotment] prescribed by Section 42.152(b)
1000	1000	[42.152(c)] does not apply.
1001	1001	(c) The board shall take the action required by Subsection
1002	1002	(a) not later than the date that permits the [increased] indirect
1003	1003	cost apportionments [allotments] to apply beginning with the
1004	1004	2019-2020 [2011-2012] school year.
1005	1005	Sec. 42.156. GIFTED AND TALENTED STUDENT PROGRAMS
1006	1006	[ALLOTMENT]. (a) The portion of state and local funds attributable
1007	1007	to students weighted [For each identified student a school
1008	1008	district serves in a program for gifted and talented students that
1009	1009	the district certifies to the commissioner as complying with
1010	1010	Subchapter D, Chapter 29, a district is entitled to an annual
1011	1011	allotment equal to the district's adjusted basic allotment as
1012	1012	determined under Section 42.102 or Section 42.103, as applicable,
1013	1013	multiplied by .12 for each school year or a greater amount provided
1014	1014	by appropriation.
1015	1015	[(b) Funds allocated] under Section 42.101(c)(18) [this
1016	1016	section], other than the amount that represents the program's share
1017	1017	of general administrative costs, must be used in providing programs
1018	1018	for gifted and talented students under Subchapter D, Chapter 29,
1019	1019	including programs sanctioned by International Baccalaureate and
1020	1020	Advanced Placement, or in developing programs for gifted and
1021	1021	talented students. Each school district must account for the
1022	1022	expenditure of state funds as provided by rule of the State Board of
1023	1023	Education. If by the end of the 12th month after receiving the
1024	1024	funds [an allotment] for developing a program a district has failed
1025	1025	to implement a program, the district must refund the amount of the
1026	1026	funds [allotment] to the agency within 30 days.
1027	1027	(b) [(c)] Not more than five percent of a school district's
1028	1028	students in average daily attendance are eligible for funding under
1029	1029	this chapter for attendance in a gifted and talented student
1030	1030	program [section].
1031	1031	(c) [(d) If the amount of state funds for which school
1032	1032	districts are eligible under this section exceeds the amount of
1033	1033	state funds appropriated in any year for the programs, the
1034	1034	commissioner shall reduce each district's tier one allotments in
1035	1035	the same manner described for a reduction in allotments under
1036	1036	Section 42.253.
1037	1037	[(e)] If the total amount of funds attributable to students
1038	1038	weighted under Section 42.101(c)(18) [allotted under this section]
1039	1039	before a date set by rule of the State Board of Education is less
1040	1040	than the total amount appropriated for a school year, the
1041	1041	commissioner shall transfer the remainder to any program for which
1042	1042	compensatory education funds, as defined by [an allotment under]
1043	1043	Section 42.152, may be used.
1044	1044	[(f) After each district has received allotted funds for
1045	1045	this program, the State Board of Education may use up to $500,000 of
1046	1046	the funds allocated under this section for programs such as
1047	1047	MATHCOUNTS, Future Problem Solving, Odyssey of the Mind, and
1048	1048	Academic Decathlon, as long as these funds are used to train
1049	1049	personnel and provide program services. To be eligible for funding
1050	1050	under this subsection, a program must be determined by the State
1051	1051	Board of Education to provide services that are effective and
1052	1052	consistent with the state plan for gifted and talented education.]
1053	1053	SECTION 1.25. Section 42.160, Education Code, is amended to
1054	1054	read as follows:
1055	1055	Sec. 42.160. HIGH SCHOOL PROGRAMS [ALLOTMENT]. (a) In this
1056	1056	section, "high school funds" means the portion of state and local
1057	1057	funds attributable to students weighted under Section
1058	1058	42.101(c)(20) [A school district is entitled to an annual allotment
1059	1059	of $275 for each student in average daily attendance in grades 9
1060	1060	through 12 in the district].
1061	1061	(b) [A school district that is required to take action under
1062	1062	Chapter 41 to reduce its wealth per student to the equalized wealth
1063	1063	level is entitled to a credit, in the amount of the allotments to
1064	1064	which the district is entitled under this section, against the
1065	1065	total amount required under Section 41.093 for the district to
1066	1066	purchase attendance credits. A school district that is otherwise
1067	1067	ineligible for state aid under this chapter is entitled to receive
1068	1068	allotments under this section.
1069	1069	[(c)] An open-enrollment charter school is entitled to high
1070	1070	school funds [an allotment under this section] in the same manner as
1071	1071	a school district.
1072	1072	(c) [(d)] The commissioner shall adopt rules to administer
1073	1073	this section, including rules related to the permissible use of
1074	1074	high school funds by [allocated under this section to] an
1075	1075	open-enrollment charter school.
1076	1076	SECTION 1.26. Chapter 42, Education Code, is amended by
1077	1077	adding Subchapter D and a subchapter heading to read as follows:
1078	1078	SUBCHAPTER D. EXPENSE ALLOTMENTS AND ADDITIONAL STATE AID
1079	1079	SECTION 1.27. Sections 42.158, 42.155, and 42.106,
1080	1080	Education Code, are transferred to Subchapter D, Chapter 42,
1081	1081	Education Code, as added by this Act, redesignated as Sections
1082	1082	42.201, 42.202, and 42.203, Education Code, and amended to read as
1083	1083	follows:
1084	1084	Sec. 42.201 [42.158]. NEW INSTRUCTIONAL FACILITY
1085	1085	ALLOTMENT. (a) In this section:
1086	1086	(1) "Instructional facility" has the meaning assigned
1087	1087	by Section 46.001.
1088	1088	(2) "New instructional facility" includes:
1089	1089	(A) a newly constructed instructional facility;
1090	1090	(B) a repurposed instructional facility; and
1091	1091	(C) a leased facility operating for the first
1092	1092	time as an instructional facility with a minimum lease term of not
1093	1093	less than 10 years.
1094	1094	(b) A school district is entitled to an additional allotment
1095	1095	as provided by this section for operational expenses associated
1096	1096	with opening a new instructional facility.
1097	1097	(c) [(a-1)] A school district entitled to an allotment
1098	1098	under this section may use funds from the district's allotment to
1099	1099	renovate an existing instructional facility to serve as a dedicated
1100	1100	cybersecurity computer laboratory.
1101	1101	(d) [(b)] For the first school year in which students attend
1102	1102	a new instructional facility, a school district is entitled to an
1103	1103	allotment of $1,000 for each student in average daily attendance at
1104	1104	the facility. For the second school year in which students attend
1105	1105	that instructional facility, a school district is entitled to an
1106	1106	allotment of $1,000 for each additional student in average daily
1107	1107	attendance at the facility.
1108	1108	(e) [(c)] For purposes of this section, the number of
1109	1109	additional students in average daily attendance at a facility is
1110	1110	the difference between the number of students in average daily
1111	1111	attendance in the current year at that facility and the number of
1112	1112	students in average daily attendance at that facility in the
1113	1113	preceding year.
1114	1114	(f) [(d)] Subject to Subsection (g) [(d-1)], the amount
1115	1115	appropriated for allotments under this section may not exceed $25
1116	1116	million in a school year. If the total amount of allotments to
1117	1117	which districts are entitled under this section for a school year
1118	1118	exceeds the amount appropriated under this subsection, the
1119	1119	commissioner shall reduce each district's allotment under this
1120	1120	section in the manner provided by Section 42.253(h).
1121	1121	(g) [(d-1)] In addition to the appropriation amount
1122	1122	described by Subsection (f) [(d)], the amount of $1 million may be
1123	1123	appropriated each school year to supplement the allotment to which
1124	1124	a school district is entitled under this section that may be
1125	1125	provided using the appropriation amount described by Subsection (f)
1126	1126	[(d)]. The commissioner shall first apply the funds appropriated
1127	1127	under this subsection to prevent any reduction under Subsection (f)
1128	1128	[(d)] in the allotment for attendance at an eligible high school
1129	1129	instructional facility, subject to the maximum amount of $1,000 for
1130	1130	each student in average daily attendance. Any funds remaining after
1131	1131	preventing all reductions in amounts due for high school
1132	1132	instructional facilities may be applied proportionally to all other
1133	1133	eligible instructional facilities, subject to the maximum amount of
1134	1134	$1,000 for each student in average daily attendance.
1135	1135	(h) [(e)] A school district that is required to take action
1136	1136	under Chapter 41 to reduce its wealth per student to the equalized
1137	1137	wealth level is entitled to a credit, in the amount of the
1138	1138	allotments to which the district is entitled under this section,
1139	1139	against the total amount required under Section 41.093 for the
1140	1140	district to purchase attendance credits. A school district that is
1141	1141	otherwise ineligible for state aid under this chapter is entitled
1142	1142	to receive allotments under this section.
1143	1143	(i) [(f)] The commissioner may adopt rules necessary to
1144	1144	implement this section.
1145	1145	[(g) In this section:
1146	1146	[(1) "Instructional facility" has the meaning assigned
1147	1147	by Section 46.001.
1148	1148	[(2) "New instructional facility" includes:
1149	1149	[(A) a newly constructed instructional facility;
1150	1150	[(B) a repurposed instructional facility; and
1151	1151	[(C) a leased facility operating for the first
1152	1152	time as an instructional facility with a minimum lease term of not
1153	1153	less than 10 years.]
1154	1154	Sec. 42.202 [42.155]. TRANSPORTATION ALLOTMENT. (a) Each
1155	1155	school district or county operating a transportation system is
1156	1156	entitled to allotments for transportation costs as provided by this
1157	1157	section.
1158	1158	(b) In [As used in] this section:
1159	1159	(1) "Regular eligible student" means a student who
1160	1160	resides two or more miles from the student's campus of regular
1161	1161	attendance, measured along the shortest route that may be traveled
1162	1162	on public roads, and who is not classified as a student eligible for
1163	1163	special education services.
1164	1164	(2) "Eligible special education student" means a
1165	1165	student who is eligible for special education services under
1166	1166	Section 29.003 and who would be unable to attend classes without
1167	1167	special transportation services.
1168	1168	(3) "Linear density" means the average number of
1169	1169	regular eligible students transported daily, divided by the
1170	1170	approved daily route miles traveled by the respective
1171	1171	transportation system.
1172	1172	(c) Each school district or county operating a regular
1173	1173	transportation system is entitled to an allotment based on the
1174	1174	daily cost per regular eligible student of operating and
1175	1175	maintaining the regular transportation system and the linear
1176	1176	density of that system. In determining the cost, the commissioner
1177	1177	shall give consideration to factors affecting the actual cost of
1178	1178	providing these transportation services in each district or county.
1179	1179	The average actual cost is to be computed by the commissioner and
1180	1180	included for consideration by the legislature in the General
1181	1181	Appropriations Act. The allotment per mile of approved route may
1182	1182	not exceed the amount set by appropriation.
1183	1183	(d) A school district or county may apply for and on
1184	1184	approval of the commissioner receive an additional amount of up to
1185	1185	10 percent of its regular transportation allotment to be used for
1186	1186	the transportation of children living within two miles of the
1187	1187	school they attend who would be subject to hazardous traffic
1188	1188	conditions or a high risk of violence if they walked to school.
1189	1189	(d-1) For purposes of Subsection (d), each board of trustees
1190	1190	shall provide to the commissioner an explanation of the hazardous
1191	1191	traffic conditions or areas presenting a high risk of violence
1192	1192	applicable to that school district and shall identify the specific
1193	1193	hazardous or high-risk areas for which the allocation is requested.
1194	1194	A hazardous traffic condition exists where no walkway is provided
1195	1195	and children must walk along or cross a freeway or expressway, an
1196	1196	underpass, an overpass or a bridge, an uncontrolled major traffic
1197	1197	artery, an industrial or commercial area, or another comparable
1198	1198	condition. An area presents a high risk of violence if law
1199	1199	enforcement records indicate a high incidence of violent crimes in
1200	1200	the area. Each board of trustees requesting funds for an area
1201	1201	presenting a high risk of violence must, in addition to the
1202	1202	explanation required by this subsection, provide the commissioner
1203	1203	with consolidated law enforcement records that document violent
1204	1204	crimes identified by reporting agencies within the relevant
1205	1205	jurisdiction.
1206	1206	(d-2) A school district or county may use all or part of any
1207	1207	funds received under Subsection (d) to support community walking
1208	1208	transportation programs, including walking school bus programs,
1209	1209	provided that the district or county requires each supported
1210	1210	program to submit a financial report to the district or county each
1211	1211	semester that covers services provided by the program for the
1212	1212	benefit of the district or county. The commissioner shall adopt
1213	1213	rules governing the transportation allotment as necessary to permit
1214	1214	a district or county to receive funds under Subsection (d) that may
1215	1215	be used to support innovative school safety projects, including
1216	1216	community walking transportation programs as provided by this
1217	1217	subsection and any other appropriate safety project, including
1218	1218	rules defining an approved walking route mile that may be used as
1219	1219	necessary in implementing this subsection.
1220	1220	(e) The commissioner may grant an amount set by
1221	1221	appropriation for private or commercial transportation for
1222	1222	eligible students from isolated areas. The need for this type of
1223	1223	transportation grant shall be determined on an individual basis and
1224	1224	the amount granted shall not exceed the actual cost. The grants may
1225	1225	be made only in extreme hardship cases. A grant may not be made if
1226	1226	the students live within two miles of an approved school bus route.
1227	1227	(f) The cost of transporting career and technology
1228	1228	education students from one campus to another inside a school
1229	1229	district or from a sending district to another secondary public
1230	1230	school for a career and technology program or an area career and
1231	1231	technology school or to an approved post-secondary institution
1232	1232	under a contract for instruction approved by the agency shall be
1233	1233	reimbursed based on the number of actual miles traveled times the
1234	1234	district's official extracurricular travel per mile rate as set by
1235	1235	the board of trustees and approved by the agency.
1236	1236	(g) A school district or county that provides special
1237	1237	transportation services for eligible special education students is
1238	1238	entitled to a state allocation paid on a previous year's
1239	1239	cost-per-mile basis. The maximum rate per mile allowable shall be
1240	1240	set by appropriation based on data gathered from the first year of
1241	1241	each preceding biennium. Districts may use a portion of their
1242	1242	support allocation to pay transportation costs, if necessary. The
1243	1243	commissioner may grant an amount set by appropriation for private
1244	1244	transportation to reimburse parents or their agents for
1245	1245	transporting eligible special education students. The mileage
1246	1246	allowed shall be computed along the shortest public road from the
1247	1247	student's home to school and back, morning and afternoon. The need
1248	1248	for this type transportation shall be determined on an individual
1249	1249	basis and shall be approved only in extreme hardship cases.
1250	1250	(h) Funds allotted under this section must be used in
1251	1251	providing transportation services.
1252	1252	(i) In the case of a school district belonging to a county
1253	1253	transportation system, the district's transportation allotment for
1254	1254	purposes of determining a district's Foundation School Program
1255	1255	[foundation school program] allocations is determined on the basis
1256	1256	of the number of approved daily route miles in the district
1257	1257	multiplied by the allotment per mile to which the county
1258	1258	transportation system is entitled.
1259	1259	(j) The Texas School for the Deaf is entitled to an
1260	1260	allotment under this section. The commissioner shall determine the
1261	1261	appropriate allotment.
1262	1262	(k) Notwithstanding any other provision of this section,
1263	1263	the commissioner may not reduce the allotment to which a school
1264	1264	district or county is entitled under this section because the
1265	1265	district or county provides transportation for an eligible student
1266	1266	to and from a child-care facility, as defined by Section 42.002,
1267	1267	Human Resources Code, or a grandparent's residence instead of the
1268	1268	student's residence, as authorized by Section 34.007, if the
1269	1269	transportation is provided within the approved routes of the
1270	1270	district or county for the school the student attends.
1271	1271	(l) A school district may, with the funds allotted under
1272	1272	this section, provide a bus pass or card for another transportation
1273	1273	system to each student who is eligible to use the regular
1274	1274	transportation system of the district but for whom the regular
1275	1275	transportation system of the district is not a feasible method of
1276	1276	providing transportation. The commissioner by rule shall provide
1277	1277	procedures for a school district to provide bus passes or cards to
1278	1278	students under this subsection.
1279	1279	Sec. 42.203 [42.106]. TUITION ALLOTMENT FOR DISTRICTS NOT
1280	1280	OFFERING ALL GRADE LEVELS. A school district that contracts for
1281	1281	students residing in the district to be educated in another
1282	1282	district under Section 25.039(a) is entitled to receive an
1283	1283	allotment equal to the total amount of tuition required to be paid
1284	1284	by the district under Section 25.039, not to exceed the amount
1285	1285	specified by commissioner rule under Section 25.039(b).
1286	1286	SECTION 1.28. Subchapter D, Chapter 42, Education Code, as
1287	1287	added by this Act, is amended by adding Sections 42.204 and 42.205
1288	1288	to read as follows:
1289	1289	Sec. 42.204. ALLOTMENT FOR DISTRICTS THAT PROVIDE EDUCATION
1290	1290	SOLELY TO STUDENTS CONFINED TO OR EDUCATED IN HOSPITALS. (a) A
1291	1291	school district that offers a program under Section 29.014 is
1292	1292	entitled to an allotment in an amount specified in the General
1293	1293	Appropriations Act, adjusted by:
1294	1294	(1) the cost of education adjustment under Section
1295	1295	42.102 for the school district in which the district is
1296	1296	geographically located; and
1297	1297	(2) the weight for a homebound student under Section
1298	1298	42.101(c)(3).
1299	1299	(b) A program established under Section 29.014 is required
1300	1300	only in a school district in which the program is financed by an
1301	1301	allotment under this section or by any other funds available for the
1302	1302	program.
1303	1303	Sec. 42.205. ALLOTMENT FOR CERTAIN GIFTED AND TALENTED
1304	1304	EDUCATION PROGRAMS. (a) A school district that offers MATHCOUNTS,
1305	1305	Future Problem Solving, Odyssey of the Mind, Academic Decathlon, or
1306	1306	a similar program for gifted and talented students may receive
1307	1307	additional funding in an amount determined by the commissioner.
1308	1308	The commissioner may not provide more than $500,000 each year in
1309	1309	total funding under this section.
1310	1310	(b) To be eligible for funding under this section, a program
1311	1311	must be determined by the State Board of Education to provide
1312	1312	services that are effective and consistent with the state plan for
1313	1313	gifted and talented education.
1314	1314	(c) Funds allotted under this section may be used only to
1315	1315	train personnel or provide program services.
1316	1316	SECTION 1.29. Sections 42.2513, 42.2514, and 42.2515,
1317	1317	Education Code, are transferred to Subchapter D, Chapter 42,
1318	1318	Education Code, as added by this Act, and redesignated as Sections
1319	1319	42.206, 42.207, and 42.208, Education Code, to read as follows:
1320	1320	Sec. 42.206 [42.2513]. ADDITIONAL STATE AID FOR STAFF
1321	1321	SALARY INCREASES. (a) A school district, including a school
1322	1322	district that is otherwise ineligible for state aid under this
1323	1323	chapter, is entitled to state aid in an amount equal to the sum of:
1324	1324	(1) the product of $500 multiplied by the number of
1325	1325	full-time district employees, other than administrators or
1326	1326	employees subject to the minimum salary schedule under Section
1327	1327	21.402; and
1328	1328	(2) the product of $250 multiplied by the number of
1329	1329	part-time district employees, other than administrators.
1330	1330	(b) A determination by the commissioner under this section
1331	1331	is final and may not be appealed.
1332	1332	(c) The commissioner may adopt rules to implement this
1333	1333	section.
1334	1334	Sec. 42.207 [42.2514]. ADDITIONAL STATE AID FOR TAX
1335	1335	INCREMENT FINANCING PAYMENTS. For each school year, a school
1336	1336	district, including a school district that is otherwise ineligible
1337	1337	for state aid under this chapter, is entitled to state aid in an
1338	1338	amount equal to the amount the district is required to pay into the
1339	1339	tax increment fund for a reinvestment zone under Section
1340	1340	311.013(n), Tax Code.
1341	1341	Sec. 42.208 [42.2515]. ADDITIONAL STATE AID FOR AD VALOREM
1342	1342	TAX CREDITS UNDER TEXAS ECONOMIC DEVELOPMENT ACT. (a) For each
1343	1343	school year, a school district, including a school district that is
1344	1344	otherwise ineligible for state aid under this chapter, is entitled
1345	1345	to state aid in an amount equal to the amount of all tax credits
1346	1346	credited against ad valorem taxes of the district in that year under
1347	1347	former Subchapter D, Chapter 313, Tax Code.
1348	1348	(b) The commissioner may adopt rules to implement and
1349	1349	administer this section.
1350	1350	SECTION 1.30. Section 42.251, Education Code, is amended to
1351	1351	read as follows:
1352	1352	Sec. 42.251. FINANCING; GENERAL RULE. (a) The sum of [the
1353	1353	basic allotment under Subchapter B and the special allotments under
1354	1354	Subchapter C, computed in accordance with this chapter, constitute
1355	1355	the tier one allotments. The sum of the tier one allotments and]
1356	1356	the guaranteed yield [allotments] under Section 42.107 and the
1357	1357	expense allotments and additional state aid under Subchapter D [F],
1358	1358	computed in accordance with this chapter, constitutes [constitute]
1359	1359	the total cost of the Foundation School Program.
1360	1360	(b) The program shall be financed by:
1361	1361	(1) ad valorem tax revenue generated by an equalized
1362	1362	[uniform] school district effort;
1363	1363	(2) [ad valorem tax revenue generated by local school
1364	1364	district effort in excess of the equalized uniform school district
1365	1365	effort;
1366	1366	[(3)] state available school funds distributed in
1367	1367	accordance with law; and
1368	1368	(3) [(4)] state funds appropriated for the purposes of
1369	1369	public school education and allocated to each district in an amount
1370	1370	sufficient to finance the cost of each district's Foundation School
1371	1371	Program not covered by other funds specified in this subsection.
1372	1372	SECTION 1.31. Section 42.2516, Education Code, is amended
1373	1373	by adding Subsection (a-1) to read as follows:
1374	1374	(a-1) For purposes of this title, the state maximum
1375	1375	compressed tax rate is the product of the state compression
1376	1376	percentage multiplied by $1.50.
1377	1377	SECTION 1.32. The heading to Section 42.252, Education
1378	1378	Code, is amended to read as follows:
1379	1379	Sec. 42.252. LOCAL PROPERTY VALUES [SHARE OF PROGRAM COST
1380	1380	(TIER ONE)].
1381	1381	SECTION 1.33. Section 42.252(b), Education Code, is amended
1382	1382	to read as follows:
1383	1383	(b) The commissioner shall adjust the values reported in the
1384	1384	official report of the comptroller as required by Section 5.09(a),
1385	1385	Tax Code, to reflect reductions in taxable value of property
1386	1386	resulting from natural or economic disaster after January 1 in the
1387	1387	year in which the valuations are determined. The decision of the
1388	1388	commissioner is final. An adjustment does not affect the local
1389	1389	revenue level [fund assignment] of any other school district.
1390	1390	SECTION 1.34. Section 42.2528(b), Education Code, is
1391	1391	amended to read as follows:
1392	1392	(b) In awarding grants under this section, the commissioner
1393	1393	shall give highest priority to school districts with maintenance
1394	1394	and operations tax rates at the greatest rates permitted by law.
1395	1395	The commissioner shall also give priority to:
1396	1396	(1) districts with maintenance and operations tax
1397	1397	rates at least equal to the state maximum compressed tax rate, as
1398	1398	defined by Section 42.2516 [42.101(a)], and lowest amounts of
1399	1399	maintenance and operations tax revenue per weighted student; and
1400	1400	(2) districts with debt service tax rates near or
1401	1401	equal to the greatest rates permitted by law.
1402	1402	SECTION 1.35. Sections 42.253(a) and (c), Education Code,
1403	1403	are amended to read as follows:
1404	1404	(a) For each school year the commissioner shall determine:
1405	1405	(1) the amount of money to which a school district is
1406	1406	entitled under Subchapters B and D [C];
1407	1407	(2) [the amount of money to which a school district is
1408	1408	entitled under Subchapter F;
1409	1409	[(3)] the amount of money allocated to the district
1410	1410	from the available school fund; and
1411	1411	(3) [(4)] the amount of each district's [tier one]
1412	1412	local revenue level [share] under Section 42.107 [42.252; and
1413	1413	[(5) the amount of each district's tier two local share
1414	1414	under Section 42.302].
1415	1415	(c) Each school district is entitled to an amount equal to
1416	1416	the difference for that district between the amount provided by
1417	1417	Subsection [the sum of Subsections] (a)(1) [and (a)(2)] and the sum
1418	1418	of Subsections (a)(2) and (a)(3)[, (a)(4), and (a)(5)].
1419	1419	SECTION 1.36. Section 42.257(b), Education Code, is amended
1420	1420	to read as follows:
1421	1421	(b) If the school district would have received a greater
1422	1422	amount from the foundation school fund for the applicable school
1423	1423	year using the adjusted value, the commissioner shall add the
1424	1424	difference to subsequent distributions to the district from the
1425	1425	foundation school fund. An adjustment does not affect the local
1426	1426	revenue level [fund assignment] of any other district.
1427	1427	ARTICLE 2. CONFORMING AMENDMENTS
1428	1428	SECTION 2.01. Section 7.062(c), Education Code, is amended
1429	1429	to read as follows:
1430	1430	(c) Except as otherwise provided by this subsection, if the
1431	1431	commissioner certifies that the amount appropriated for a state
1432	1432	fiscal year for purposes of Subchapters A and B, Chapter 46, exceeds
1433	1433	the amount to which school districts are entitled under those
1434	1434	subchapters for that year, the commissioner shall use the excess
1435	1435	funds, in an amount not to exceed $20 million in any state fiscal
1436	1436	year, for the purpose of making grants under this section. The use
1437	1437	of excess funds under this subsection has priority over any
1438	1438	provision of Chapter 42 that permits or directs the use of excess
1439	1439	Foundation School Program [foundation school program] funds,
1440	1440	including Sections [42.2517,] 42.2521, 42.2522, and 42.2531. The
1441	1441	commissioner is required to use excess funds as provided by this
1442	1442	subsection only if the commissioner is not required to reduce the
1443	1443	total amount of state funds allocated to school districts under
1444	1444	Section 42.253(h).
1445	1445	SECTION 2.02. Section 8.051(d), Education Code, is amended
1446	1446	to read as follows:
1447	1447	(d) Each regional education service center shall maintain
1448	1448	core services for purchase by school districts and campuses. The
1449	1449	core services are:
1450	1450	(1) training and assistance in:
1451	1451	(A) teaching each subject area assessed under
1452	1452	Section 39.023; and
1453	1453	(B) providing instruction in personal financial
1454	1454	literacy as required under Section 28.0021;
1455	1455	(2) training and assistance in providing each program
1456	1456	described by Sections 42.101(c)(1)-(18) [that qualifies for a
1457	1457	funding allotment under Section 42.151, 42.152, 42.153, or 42.156];
1458	1458	(3) assistance specifically designed for a school
1459	1459	district or campus assigned an unacceptable performance rating
1460	1460	under Section 39.054;
1461	1461	(4) training and assistance to teachers,
1462	1462	administrators, members of district boards of trustees, and members
1463	1463	of site-based decision-making committees;
1464	1464	(5) assistance specifically designed for a school
1465	1465	district that is considered out of compliance with state or federal
1466	1466	special education requirements, based on the agency's most recent
1467	1467	compliance review of the district's special education programs; and
1468	1468	(6) assistance in complying with state laws and rules.
1469	1469	SECTION 2.03. Section 11.158(a), Education Code, is amended
1470	1470	to read as follows:
1471	1471	(a) The board of trustees of an independent school district
1472	1472	may require payment of:
1473	1473	(1) a fee for materials used in any program in which
1474	1474	the resultant product in excess of minimum requirements becomes, at
1475	1475	the student's option, the personal property of the student, if the
1476	1476	fee does not exceed the cost of materials;
1477	1477	(2) membership dues in student organizations or clubs
1478	1478	and admission fees or charges for attending extracurricular
1479	1479	activities, if membership or attendance is voluntary;
1480	1480	(3) a security deposit for the return of materials,
1481	1481	supplies, or equipment;
1482	1482	(4) a fee for personal physical education and athletic
1483	1483	equipment and apparel, although any student may provide the
1484	1484	student's own equipment or apparel if it meets reasonable
1485	1485	requirements and standards relating to health and safety
1486	1486	established by the board;
1487	1487	(5) a fee for items of personal use or products that a
1488	1488	student may purchase at the student's option, such as student
1489	1489	publications, class rings, annuals, and graduation announcements;
1490	1490	(6) a fee specifically permitted by any other statute;
1491	1491	(7) a fee for an authorized voluntary student health
1492	1492	and accident benefit plan;
1493	1493	(8) a reasonable fee, not to exceed the actual annual
1494	1494	maintenance cost, for the use of musical instruments and uniforms
1495	1495	owned or rented by the district;
1496	1496	(9) a fee for items of personal apparel that become the
1497	1497	property of the student and that are used in extracurricular
1498	1498	activities;
1499	1499	(10) a parking fee or a fee for an identification card;
1500	1500	(11) a fee for a driver training course, not to exceed
1501	1501	the actual district cost per student in the program for the current
1502	1502	school year;
1503	1503	(12) a fee for a course offered for credit that
1504	1504	requires the use of facilities not available on the school premises
1505	1505	or the employment of an educator who is not part of the school's
1506	1506	regular staff, if participation in the course is at the student's
1507	1507	option;
1508	1508	(13) a fee for a course offered during summer school,
1509	1509	except that the board may charge a fee for a course required for
1510	1510	graduation only if the course is also offered without a fee during
1511	1511	the regular school year;
1512	1512	(14) a reasonable fee for transportation of a student
1513	1513	who lives within two miles of the school the student attends to and
1514	1514	from that school, except that the board may not charge a fee for
1515	1515	transportation for which the [school] district receives funds under
1516	1516	Section 42.202(d) [42.155(d)];
1517	1517	(15) a reasonable fee, not to exceed $50, for costs
1518	1518	associated with an educational program offered outside of regular
1519	1519	school hours through which a student who was absent from class
1520	1520	receives instruction voluntarily for the purpose of making up the
1521	1521	missed instruction and meeting the level of attendance required
1522	1522	under Section 25.092; or
1523	1523	(16) if the district does not receive any funds under
1524	1524	Section 42.202 [42.155] and does not participate in a county
1525	1525	transportation system for which an allotment is provided under
1526	1526	Section 42.202(i) [42.155(i)], a reasonable fee for the
1527	1527	transportation of a student to and from the school the student
1528	1528	attends.
1529	1529	SECTION 2.04. Sections 12.106(a) and (a-1), Education Code,
1530	1530	are amended to read as follows:
1531	1531	(a) A charter holder is entitled to receive for the
1532	1532	open-enrollment charter school funding under Chapter 42 equal to
1533	1533	the amount of funding per student in weighted average daily
1534	1534	attendance[, excluding enrichment funding under Section
1535	1535	42.302(a),] to which the charter holder would be entitled for the
1536	1536	school under Chapter 42 if the school were a school district without
1537	1537	a [tier one] local revenue level [share] for purposes of Section
1538	1538	42.253.
1539	1539	(a-1) In determining funding for an open-enrollment charter
1540	1540	school under Subsection (a):
1541	1541	(1) adjustments under Sections 42.102[, 42.104,] and
1542	1542	42.105 are based on the average adjustment for the state; and
1543	1543	(2) the adjustment under Section 42.103 is based on
1544	1544	the average adjustment for the state that would have been provided
1545	1545	under that section as it existed on January 1, 2018.
1546	1546	SECTION 2.05. Section 13.054(f), Education Code, is amended
1547	1547	to read as follows:
1548	1548	(f) For five years beginning with the school year in which
1549	1549	the annexation occurs, a school district shall receive additional
1550	1550	funding under this subsection or Subsection (h). The amount of
1551	1551	funding shall be determined by multiplying the [lesser of the]
1552	1552	enlarged district's local revenue level [fund assignment computed
1553	1553	under Section 42.252 or the enlarged district's total cost of tier
1554	1554	one] by a fraction, the numerator of which is the number of students
1555	1555	residing in the territory annexed to the receiving district
1556	1556	preceding the date of the annexation and the denominator of which is
1557	1557	the number of students residing in the district as enlarged on the
1558	1558	date of the annexation.
1559	1559	SECTION 2.06. Sections 21.402(a) and (b), Education Code,
1560	1560	are amended to read as follows:
1561	1561	(a) Except as provided by Subsection (e-1) or (f), a school
1562	1562	district must pay each classroom teacher, full-time librarian,
1563	1563	full-time school counselor certified under Subchapter B, or
1564	1564	full-time school nurse not less than the minimum monthly salary,
1565	1565	based on the employee's level of experience in addition to other
1566	1566	factors, as determined by commissioner rule, determined by the
1567	1567	following formula:
1568	1568	MS = SF x (GL x FS)
1569	1569	where:
1570	1570	"MS" is the minimum monthly salary;
1571	1571	"SF" is the applicable salary factor specified by Subsection
1572	1572	(c);
1573	1573	"GL" is the guaranteed level, as defined by Section 42.107;
1574	1574	and
1575	1575	"FS" is the percentage [amount], as determined by the
1576	1576	commissioner under Subsection (b), of the guaranteed level that in
1577	1577	the 2019-2020 school year produces for each level of experience an
1578	1578	amount equal to the minimum monthly salary required for that level
1579	1579	of experience for the 2018-2019 school year [basic allotment as
1580	1580	provided by Section 42.101(a) or (b) for a school district with a
1581	1581	maintenance and operations tax rate at least equal to the state
1582	1582	maximum compressed tax rate, as defined by Section 42.101(a)].
1583	1583	(b) Not later than June 1 of each year, the commissioner
1584	1584	shall determine the [basic allotment and resulting] monthly
1585	1585	salaries to be paid by school districts as provided by Subsection
1586	1586	(a).
1587	1587	SECTION 2.07. Section 28.0211(m-1), Education Code, is
1588	1588	amended to read as follows:
1589	1589	(m-1) For purposes of certification under Subsection (m),
1590	1590	the commissioner may not consider Foundation School Program funds
1591	1591	except for compensatory education funds [under Section 42.152].
1592	1592	This section may be implemented only if the commissioner certifies
1593	1593	that sufficient funds have been appropriated during a school year
1594	1594	for administering the accelerated instruction programs specified
1595	1595	under this section and Section 28.0217, including teacher training
1596	1596	for that purpose.
1597	1597	SECTION 2.08. Section 29.002, Education Code, is amended to
1598	1598	read as follows:
1599	1599	Sec. 29.002. DEFINITION. In this subchapter, "special
1600	1600	services" means:
1601	1601	(1) special education instruction, which may be
1602	1602	provided by professional and supported by paraprofessional
1603	1603	personnel in the regular classroom or in an instructional
1604	1604	arrangement described by Sections 42.101(c)(2)-(13) [Section
1605	1605	42.151]; and
1606	1606	(2) related services, which are developmental,
1607	1607	corrective, supportive, or evaluative services, not instructional
1608	1608	in nature, that may be required for the student to benefit from
1609	1609	special education instruction and for implementation of a student's
1610	1610	individualized education program.
1611	1611	SECTION 2.09. Section 29.008(b), Education Code, is amended
1612	1612	to read as follows:
1613	1613	(b) Except as provided by Subsection (c), costs of an
1614	1614	approved contract for residential placement may be paid from a
1615	1615	combination of federal, state, and local funds, as directed by the
1616	1616	commissioner. [The local share of the total contract cost for each
1617	1617	student is that portion of the local tax effort that exceeds the
1618	1618	district's local fund assignment under Section 42.252, divided by
1619	1619	the average daily attendance in the district. If the contract
1620	1620	involves a private facility, the state share of the total contract
1621	1621	cost is that amount remaining after subtracting the local share. If
1622	1622	the contract involves a public facility, the state share is that
1623	1623	amount remaining after subtracting the local share from the portion
1624	1624	of the contract that involves the costs of instructional and
1625	1625	related services. For purposes of this subsection, "local tax
1626	1626	effort" means the total amount of money generated by taxes imposed
1627	1627	for debt service and maintenance and operation less any amounts
1628	1628	paid into a tax increment fund under Chapter 311, Tax Code.]
1629	1629	SECTION 2.10. Section 29.018(b), Education Code, is amended
1630	1630	to read as follows:
1631	1631	(b) A school district is eligible to apply for a grant under
1632	1632	this section if:
1633	1633	(1) the district does not receive sufficient funds,
1634	1634	including the state's share of special education [state] funds, as
1635	1635	defined by [provided under] Section 42.151, and federal funds, for
1636	1636	a student with disabilities to pay for the special education
1637	1637	services provided to the student; or
1638	1638	(2) the district does not receive sufficient funds,
1639	1639	including the state's share of special education [state] funds, as
1640	1640	defined by [provided under] Section 42.151, and federal funds, for
1641	1641	all students with disabilities in the district to pay for the
1642	1642	special education services provided to the students.
1643	1643	SECTION 2.11. Section 29.022(u)(3), Education Code, is
1644	1644	amended to read as follows:
1645	1645	(3) "Self-contained classroom" does not include a
1646	1646	classroom that is a resource room instructional arrangement under
1647	1647	Section 42.101(c)(6) [42.151].
1648	1648	SECTION 2.12. Section 29.081(b-2), Education Code, is
1649	1649	amended to read as follows:
1650	1650	(b-2) In this subsection, "compensatory education funds"
1651	1651	has the meaning assigned by Section 42.152. A district that is
1652	1652	required to provide accelerated instruction under Subsection (b-1)
1653	1653	shall separately budget sufficient funds, including compensatory
1654	1654	education funds [under Section 42.152], for that purpose. A
1655	1655	district may not budget compensatory education funds [received
1656	1656	under Section 42.152] for any other purpose until the district
1657	1657	adopts a budget to support additional accelerated instruction under
1658	1658	Subsection (b-1).
1659	1659	SECTION 2.13. Section 29.082(a), Education Code, is amended
1660	1660	to read as follows:
1661	1661	(a) A school district may set aside an amount from the
1662	1662	district's compensatory education funds, as defined by [allotment
1663	1663	under] Section 42.152, or may apply to the agency for funding of an
1664	1664	extended year program for a period not to exceed 30 instructional
1665	1665	days for students in:
1666	1666	(1) kindergarten through grade 11 who are identified
1667	1667	as likely not to be promoted to the next grade level for the
1668	1668	succeeding school year; or
1669	1669	(2) grade 12 who are identified as likely not to
1670	1670	graduate from high school before the beginning of the succeeding
1671	1671	school year.
1672	1672	SECTION 2.14. Section 29.089(b), Education Code, is amended
1673	1673	to read as follows:
1674	1674	(b) The commissioner, in consultation with the governor,
1675	1675	lieutenant governor, and speaker of the house of representatives,
1676	1676	by rule shall determine accountability standards under this section
1677	1677	for a school district providing a mentoring services program using
1678	1678	compensatory education funds, as defined by [allocated under]
1679	1679	Section 42.152.
1680	1680	SECTION 2.15. Section 29.097(g), Education Code, is amended
1681	1681	to read as follows:
1682	1682	(g) For purposes of Subsection (f)(2), a school district is
1683	1683	encouraged to use high school funds, as defined by [allocated
1684	1684	under] Section 42.160.
1685	1685	SECTION 2.16. Section 29.098(e), Education Code, is amended
1686	1686	to read as follows:
1687	1687	(e) For purposes of Subsection (d)(2), a school district is
1688	1688	encouraged to use high school funds, as defined by [allocated
1689	1689	under] Section 42.160.
1690	1690	SECTION 2.17. Section 29.203(b), Education Code, is amended
1691	1691	to read as follows:
1692	1692	(b) A school district is entitled to funding attributable to
1693	1693	students weighted under Section 42.101(c)(19) [the allotment
1694	1694	provided by Section 42.157] for each eligible student using a
1695	1695	public education grant. If the district has a wealth per student
1696	1696	greater than the guaranteed wealth level but less than the
1697	1697	equalized wealth level, a school district is entitled under rules
1698	1698	adopted by the commissioner to additional state aid in an amount
1699	1699	equal to the difference between the cost to the district of
1700	1700	providing services to a student using a public education grant and
1701	1701	the sum of the state's share of funds [state aid received because of
1702	1702	the allotment under Section 42.157] and money from the available
1703	1703	school fund attributable to the student.
1704	1704	SECTION 2.18. Section 29.203(g)(2), Education Code, is
1705	1705	amended to read as follows:
1706	1706	(2) "Guaranteed wealth level" means a wealth per
1707	1707	student equal to the dollar amount guaranteed level of state and
1708	1708	local funds per weighted student per cent of tax effort, as provided
1709	1709	by Section 42.107 [42.302], multiplied by 10,000.
1710	1710	SECTION 2.19. Sections 29.918(a) and (b), Education Code,
1711	1711	are amended to read as follows:
1712	1712	(a) Notwithstanding Section 39.234 or 42.152, a school
1713	1713	district or open-enrollment charter school with a high dropout
1714	1714	rate, as determined by the commissioner, must submit a plan to the
1715	1715	commissioner describing the manner in which the district or charter
1716	1716	school intends to use [the] compensatory education funds, as
1717	1717	defined by [allotment under] Section 42.152, and high school funds,
1718	1718	as defined by [the high school allotment under] Section 42.160, for
1719	1719	developing and implementing research-based strategies for dropout
1720	1720	prevention. The district or charter school shall submit the plan
1721	1721	not later than December 1 of each school year preceding the school
1722	1722	year in which the district or charter school will receive the
1723	1723	compensatory education funds [allotment] or high school funds
1724	1724	[allotment] to which the plan applies.
1725	1725	(b) A school district or open-enrollment charter school to
1726	1726	which this section applies may not spend or obligate more than 25
1727	1727	percent of the district's or charter school's compensatory
1728	1728	education funds [allotment] or high school funds [allotment] unless
1729	1729	the commissioner approves the plan submitted under Subsection (a).
1730	1730	The commissioner shall complete an initial review of the district's
1731	1731	or charter school's plan not later than March 1 of the school year
1732	1732	preceding the school year in which the district or charter school
1733	1733	will receive the compensatory education funds [allotment] or high
1734	1734	school funds [allotment] to which the plan applies.
1735	1735	SECTION 2.20. Section 34.002(c), Education Code, is amended
1736	1736	to read as follows:
1737	1737	(c) A school district that fails or refuses to meet the
1738	1738	safety standards for school buses established under this section is
1739	1739	ineligible to share in the transportation allotment under Section
1740	1740	42.202 [42.155] until the first anniversary of the date the
1741	1741	district begins complying with the safety standards.
1742	1742	SECTION 2.21. The heading to Section 39.234, Education
1743	1743	Code, is amended to read as follows:
1744	1744	Sec. 39.234. USE OF HIGH SCHOOL FUNDS [ALLOTMENT].
1745	1745	SECTION 2.22. Section 39.234, Education Code, is amended by
1746	1746	amending Subsections (a) and (b) and adding Subsection (c) to read
1747	1747	as follows:
1748	1748	(a) In this section, "high school funds" has the meaning
1749	1749	assigned by Section 42.160.
1750	1750	(b) Except as provided by Subsection (c) [(b)], a school
1751	1751	district or campus must use high school funds [allocated under
1752	1752	Section 42.160] to:
1753	1753	(1) implement or administer a college readiness
1754	1754	program that provides academic support and instruction to prepare
1755	1755	underachieving students for entrance into an institution of higher
1756	1756	education;
1757	1757	(2) implement or administer a program that encourages
1758	1758	students to pursue advanced academic opportunities, including
1759	1759	early college high school programs and dual credit, advanced
1760	1760	placement, and international baccalaureate courses;
1761	1761	(3) implement or administer a program that provides
1762	1762	opportunities for students to take academically rigorous course
1763	1763	work, including four years of mathematics and four years of science
1764	1764	at the high school level;
1765	1765	(4) implement or administer a program, including
1766	1766	online course support and professional development, that aligns the
1767	1767	curriculum for grades 6 [six] through 12 with postsecondary
1768	1768	curriculum and expectations; or
1769	1769	(5) implement or administer other high school
1770	1770	completion and success initiatives in grades 6 [six] through 12
1771	1771	approved by the commissioner.
1772	1772	(c) [(b)] A school district may use high school funds
1773	1773	[allocated under Section 42.160] on any instructional program in
1774	1774	grades 6 [six] through 12 other than an athletic program if:
1775	1775	(1) the district's measure of progress toward college
1776	1776	readiness is determined exceptional by a standard set by the
1777	1777	commissioner; and
1778	1778	(2) the district's completion rates for grades 9
1779	1779	[nine] through 12 exceed completion rate standards required by the
1780	1780	commissioner to achieve a status of accredited under Section
1781	1781	39.051.
1782	1782	SECTION 2.23. Section 46.013, Education Code, is amended to
1783	1783	read as follows:
1784	1784	Sec. 46.013. MULTIPLE ALLOTMENTS PROHIBITED. A school
1785	1785	district is not entitled to state assistance under this subchapter
1786	1786	based on taxes with respect to which the district receives state
1787	1787	assistance under [Subchapter F,] Chapter 42.
1788	1788	SECTION 2.24. Section 46.037, Education Code, is amended to
1789	1789	read as follows:
1790	1790	Sec. 46.037. MULTIPLE ALLOTMENTS PROHIBITED. A school
1791	1791	district is not entitled to state assistance under this subchapter
1792	1792	based on taxes with respect to which the district receives state
1793	1793	assistance under [Subchapter F,] Chapter 42.
1794	1794	SECTION 2.25. Section 79.10(f), Education Code, is amended
1795	1795	to read as follows:
1796	1796	(f) For each student enrolled in the academy, the academy is
1797	1797	entitled to funding [allotments] from the foundation school fund
1798	1798	under Chapter 42 as if the academy were a school district without a
1799	1799	[tier one] local revenue level [share] for purposes of Section
1800	1800	42.253. If in any academic year the amount of the allotments under
1801	1801	this subsection exceeds the amount of state funds paid to the
1802	1802	academy in the first fiscal year of the academy's operation, the
1803	1803	commissioner of education shall set aside from the total amount of
1804	1804	funds to which school districts are entitled under Section
1805	1805	42.253(c) an amount equal to the excess amount and shall distribute
1806	1806	that amount to the academy. After deducting the amount set aside and
1807	1807	paid to the academy by the commissioner of education under this
1808	1808	subsection, the commissioner of education shall reduce the amount
1809	1809	to which each district is entitled under Section 42.253(c) in the
1810	1810	manner described by Section 42.253(h). A determination of the
1811	1811	commissioner of education under this subsection is final and may
1812	1812	not be appealed.
1813	1813	SECTION 2.26. Section 87.208, Education Code, is amended to
1814	1814	read as follows:
1815	1815	Sec. 87.208. SEABORNE CONSERVATION CORPS. If the board of
1816	1816	regents of The Texas A&M University System administers a program
1817	1817	that is substantially similar to the Seaborne Conservation Corps as
1818	1818	it was administered by the board during the 1998-1999 school year,
1819	1819	the program is entitled, for each student enrolled, to allotments
1820	1820	from the Foundation School Program under Chapter 42 as if the
1821	1821	program were a school district, except that the program has a local
1822	1822	revenue level for purposes of Section 42.253 [share applied] that
1823	1823	is equivalent to the local revenue level [fund assignment] of the
1824	1824	school district in which the principal facilities of the program
1825	1825	are located.
1826	1826	SECTION 2.27. Section 87.505(g), Education Code, is amended
1827	1827	to read as follows:
1828	1828	(g) For each student enrolled in the academy, the academy is
1829	1829	entitled to funding [allotments] from the foundation school fund
1830	1830	under Chapter 42 as if the academy were a school district without a
1831	1831	[tier one] local revenue level [share] for purposes of Section
1832	1832	42.253. If in any academic year the amount of the allotments under
1833	1833	this subsection exceeds the amount of state funds paid to the
1834	1834	academy in the first fiscal year of the academy's operation, the
1835	1835	commissioner of education shall set aside from the total amount of
1836	1836	funds to which school districts are entitled under Section
1837	1837	42.253(c) an amount equal to the excess amount and shall distribute
1838	1838	that amount to the academy. After deducting the amount set aside and
1839	1839	paid to the academy by the commissioner of education under this
1840	1840	subsection, the commissioner of education shall reduce the amount
1841	1841	to which each district is entitled under Section 42.253(c) in the
1842	1842	manner described by Section 42.253(h). A determination of the
1843	1843	commissioner of education under this subsection is final and may
1844	1844	not be appealed.
1845	1845	SECTION 2.28. Section 96.707(k), Education Code, is amended
1846	1846	to read as follows:
1847	1847	(k) For each student enrolled in the academy, the academy is
1848	1848	entitled to funding [allotments] from the Foundation School Program
1849	1849	under Chapter 42 as if the academy were a school district without a
1850	1850	[tier one] local revenue level [share] for purposes of Section
1851	1851	42.253.
1852	1852	SECTION 2.29. Section 105.301(e), Education Code, is
1853	1853	amended to read as follows:
1854	1854	(e) The academy is not subject to the provisions of this
1855	1855	code, or to the rules of the Texas Education Agency, regulating
1856	1856	public schools, except that:
1857	1857	(1) professional employees of the academy are entitled
1858	1858	to the limited liability of an employee under Section 22.0511,
1859	1859	22.0512, or 22.052;
1860	1860	(2) a student's attendance at the academy satisfies
1861	1861	compulsory school attendance requirements; and
1862	1862	(3) for each student enrolled, the academy is entitled
1863	1863	to funding [allotments] from the Foundation School Program
1864	1864	[foundation school program] under Chapter 42 as if the academy were
1865	1865	a school district without a [tier one] local revenue level [share]
1866	1866	for purposes of Section 42.253.
1867	1867	SECTION 2.30. Section 317.005(f), Government Code, is
1868	1868	amended to read as follows:
1869	1869	(f) The governor or board may adopt an order under this
1870	1870	section withholding or transferring any portion of the total amount
1871	1871	appropriated to finance the Foundation School Program [foundation
1872	1872	school program] for a fiscal year. The governor or board may not
1873	1873	adopt such an order if it would result in an allocation of money
1874	1874	between particular programs or statutory allotments under the
1875	1875	Foundation School Program [foundation school program] contrary to
1876	1876	the statutory proration formula provided by Section 42.253(h),
1877	1877	Education Code. The governor or board may transfer an amount to the
1878	1878	total amount appropriated to finance the Foundation School Program
1879	1879	[foundation school program] for a fiscal year and may increase the
1880	1880	guaranteed level, as defined by Section 42.107 [basic allotment].
1881	1881	The governor or board may adjust allocations of amounts between
1882	1882	particular programs or statutory allotments under the Foundation
1883	1883	School Program [foundation school program] only for the purpose of
1884	1884	conforming the allocations to actual pupil enrollments or
1885	1885	attendance.
1886	1886	SECTION 2.31. Section 322.008(b), Government Code, is
1887	1887	amended to read as follows:
1888	1888	(b) The general appropriations bill may include for
1889	1889	purposes of information the funding elements computed by the
1890	1890	Legislative Budget Board under Section 42.007, Education Code,
1891	1891	excluding the values for each school district calculated under
1892	1892	Section 42.007(c)(2), Education Code. [If the funding elements are
1893	1893	included, the funding elements under Section 42.007(c)(3),
1894	1894	Education Code, shall be reported in dollar amounts per pupil.]
1895	1895	SECTION 2.32. Section 437.117(a), Government Code, is
1896	1896	amended to read as follows:
1897	1897	(a) For each student enrolled in the Texas ChalleNGe
1898	1898	Academy, the department is entitled to funding [allotments] from
1899	1899	the Foundation School Program under Chapter 42, Education Code, as
1900	1900	if the academy were a school district without a [tier one] local
1901	1901	revenue level [share] for purposes of Section 42.253, Education
1902	1902	Code.
1903	1903	SECTION 2.33. Section 2175.304(c), Government Code, is
1904	1904	amended to read as follows:
1905	1905	(c) The procedures established under Subsection (b) must
1906	1906	give preference to transferring the property directly to a public
1907	1907	school or school district or to an assistance organization
1908	1908	designated by the school district before disposing of the property
1909	1909	in another manner. If more than one public school or school
1910	1910	district or assistance organization seeks to acquire the same
1911	1911	property on substantially the same terms, the system, institution,
1912	1912	or agency shall give preference to a public school that is
1913	1913	considered low-performing by the commissioner of education or to a
1914	1914	school district that has a taxable wealth per student that does not
1915	1915	exceed the wealth per student permitted under Chapter 41 [entitles
1916	1916	the district to an allotment of state funds under Subchapter F,
1917	1917	Chapter 42], Education Code, or to the assistance organization
1918	1918	designated by such a school district.
1919	1919	SECTION 2.34. Section 1579.251(a), Insurance Code, is
1920	1920	amended to read as follows:
1921	1921	(a) The state shall assist employees of participating
1922	1922	school districts and charter schools in the purchase of group
1923	1923	health coverage under this chapter by providing for each covered
1924	1924	employee the amount of $900 each state fiscal year or a greater
1925	1925	amount as provided by the General Appropriations Act. The state
1926	1926	contribution shall be distributed through the school finance
1927	1927	formulas under Chapters 41 and 42, Education Code, and used by
1928	1928	school districts and charter schools only to pay contributions
1929	1929	under a group health coverage plan for district or school employees
1930	1930	[as provided by Section 42.260, Education Code].
1931	1931	SECTION 2.35. Section 311.013(n), Tax Code, is amended to
1932	1932	read as follows:
1933	1933	(n) This subsection applies only to a school district whose
1934	1934	taxable value computed under Section 403.302(d), Government Code,
1935	1935	is reduced in accordance with Subdivision (4) of that subsection.
1936	1936	In addition to the amount otherwise required to be paid into the tax
1937	1937	increment fund, the district shall pay into the fund an amount equal
1938	1938	to the amount by which the amount of taxes the district would have
1939	1939	been required to pay into the fund in the current year if the
1940	1940	district levied taxes at the rate the district levied in 2005
1941	1941	exceeds the amount the district is otherwise required to pay into
1942	1942	the fund in the year of the reduction. This additional amount may
1943	1943	not exceed the amount the [school] district receives in state aid
1944	1944	for the current tax year under Section 42.207 [42.2514], Education
1945	1945	Code. The [school] district shall pay the additional amount after
1946	1946	the district receives the state aid to which the district is
1947	1947	entitled for the current tax year under Section 42.207 [42.2514],
1948	1948	Education Code.
1949	1949	ARTICLE 3. REPEALERS
1950	1950	SECTION 3.01. The following provisions of the Education
1951	1951	Code are repealed:
1952	1952	(1) Section 12.106(a-2);
1953	1953	(2) Section 29.014(d);
1954	1954	(3) Section 29.203(c);
1955	1955	(4) Sections 41.002(e), (f), and (g);
1956	1956	(5) Section 41.093(b-1);
1957	1957	(6) Section 41.159(b);
1958	1958	(7) Section 42.104;
1959	1959	(8) Section 42.157;
1960	1960	(9) Section 42.2517;
1961	1961	(10) Section 42.2518;
1962	1962	(11) Sections 42.252(a), (a-1), and (d);
1963	1963	(12) Section 42.260;
1964	1964	(13) Section 42.262;
1965	1965	(14) Subchapter F, Chapter 42; and
1966	1966	(15) Section 42.4101.
1967	1967	SECTION 3.02. Section 1581.053(b), Insurance Code, is
1968	1968	repealed.
1969	1969	ARTICLE 4. EFFECTIVE DATE
1970	1970	SECTION 4.01. This Act takes effect September 1, 2019.